SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2012

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 8—SEGMENT INFORMATION

        The overall concept that IAC employs in determining its operating segments is to present the financial information in a manner consistent with how the chief operating decision maker and executive management view the businesses, how the businesses are organized as to segment management, and the focus of the businesses with regards to the types of services or products offered or the target market. Operating segments are combined for reporting purposes if they meet certain aggregation criteria, which principally relate to the similarity of their economic characteristics or, in the case of Other, do not meet the quantitative thresholds that require separate presentation. See Note 12 for information on segment changes made in 2012.

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
	(In thousands)
Revenue:
Search & Applications	$	348,762		$	238,328		$	691,960		$	472,179
Match		178,418			116,429			352,693			228,026
Local		84,505			80,410			161,624			151,341
Media		38,368			19,511			54,279			33,119
Other		30,629			30,894			60,835			61,419
Inter-segment elimination		(70	)		(168	)		(179	)		(467	)
Total	$	680,612		$	485,404		$	1,321,212		$	945,617

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
	(In thousands)
Operating Income (Loss):
Search & Applications	$	74,067		$	50,651		$	147,557		$	99,272
Match		57,099			40,999			87,005			64,428
Local		11,670			9,326			15,459			15,160
Media		(7,305	)		(3,390	)		(13,974	)		(7,708	)
Other		(2,182	)		(1,278	)		(3,896	)		(2,243	)
Corporate		(35,873	)		(38,077	)		(71,910	)		(73,342	)
Total	$	97,476		$	58,231		$	160,241		$	95,567

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
	(In thousands)
Operating Income Before Amortization:
Search & Applications	$	74,079		$	50,562		$	147,579		$	99,462
Match		62,645			42,335			99,973			67,323
Local		11,832			9,768			15,782			16,069
Media		(6,789	)		(3,302	)		(13,190	)		(7,650	)
Other		(1,755	)		(975	)		(3,153	)		(1,631	)
Corporate		(16,290	)		(14,950	)		(31,997	)		(30,181	)
Total	$	123,722		$	83,438		$	214,994		$	143,392

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
	(In thousands)
Depreciation:
Search & Applications	$	3,385	$	5,399	$	6,676	$	11,565
Match		3,742		2,278		7,279		4,578
Local		2,475		2,392		5,276		4,587
Media		295		88		474		393
Other		257		220		501		414
Corporate		2,071		2,073		4,134		4,352
Total	$	12,225	$	12,450	$	24,340	$	25,889

        Revenue by geography is based on where the customer is located. Geographic information about revenue and long-lived assets is presented below:

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
	(In thousands)
Revenue:
United States	$	472,553	$	384,835	$	918,213	$	757,497
All other countries		208,059		100,569		402,999		188,120
Total	$	680,612	$	485,404	$	1,321,212	$	945,617

	June 30, 2012		December 31, 2011
	(In thousands)
Long-lived assets (excluding goodwill and intangible assets):
United States	$	241,747	$	246,550
All other countries		14,179		13,038
Total	$	255,926	$	259,588

        The Company's primary metric is Operating Income Before Amortization, which is defined as operating income excluding, if applicable: (1) non-cash compensation expense, (2) amortization and impairment of intangibles, (3) goodwill impairment, and (4) one-time items. The Company believes this measure is useful to investors because it represents the operating results from IAC's segments, taking into account depreciation, which it believes is an ongoing cost of doing business, but excluding the effects of any other non-cash expenses. Operating Income Before Amortization has certain limitations in that it does not take into account the impact to IAC's statement of operations of certain expenses, including non-cash compensation and acquisition related accounting. IAC endeavors to compensate for the limitations of the non-U.S. GAAP measure presented by providing the comparable U.S. GAAP measure with equal or greater prominence, financial statements prepared in accordance with U.S. GAAP, and descriptions of the reconciling items, including quantifying such items, to derive the non-U.S. GAAP measure.

        The following tables reconcile Operating Income Before Amortization to operating income (loss) for the Company's reportable segments:

	Three Months Ended June 30, 2012
	Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Operating Income (Loss)
	(In thousands)
Search & Applications	$	74,079		$	(9	)	$	(3	)	$	74,067
Match		62,645			(556	)		(4,990	)		57,099
Local		11,832			—			(162	)		11,670
Media		(6,789	)		(236	)		(280	)		(7,305	)
Other		(1,755	)		(57	)		(370	)		(2,182	)
Corporate		(16,290	)		(19,583	)		—			(35,873	)
Total	$	123,722		$	(20,441	)	$	(5,805	)	$	97,476

	Three Months Ended June 30, 2011
	Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Operating Income (Loss)
	(In thousands)
Search & Applications	$	50,562		$	291		$	(202	)	$	50,651
Match		42,335			—			(1,336	)		40,999
Local		9,768			—			(442	)		9,326
Media		(3,302	)		(88	)		—			(3,390	)
Other		(975	)		(83	)		(220	)		(1,278	)
Corporate		(14,950	)		(23,127	)		—			(38,077	)
Total	$	83,438		$	(23,007	)	$	(2,200	)	$	58,231

	Six Months Ended June 30, 2012
	Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Operating Income (Loss)
	(In thousands)
Search & Applications	$	147,579		$	(17	)	$	(5	)	$	147,557
Match		99,973			(1,463	)		(11,505	)		87,005
Local		15,782			—			(323	)		15,459
Media		(13,190	)		(504	)		(280	)		(13,974	)
Other		(3,153	)		(10	)		(733	)		(3,896	)
Corporate		(31,997	)		(39,913	)		—			(71,910	)
Total	$	214,994		$	(41,907	)	$	(12,846	)	$	160,241

	Six Months Ended June 30, 2011
	Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Operating Income (Loss)
	(In thousands)
Search & Applications	$	99,462		$	214		$	(404	)	$	99,272
Match		67,323			—			(2,895	)		64,428
Local		16,069			—			(909	)		15,160
Media		(7,650	)		(55	)		(3	)		(7,708	)
Other		(1,631	)		(166	)		(446	)		(2,243	)
Corporate		(30,181	)		(43,161	)		—			(73,342	)
Total	$	143,392		$	(43,168	)	$	(4,657	)	$	95,567