SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2011

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 15—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 presentation as separate operating segments.

	Years Ended December 31,
	2011			2010			2009
	(In thousands)
Revenue:
Search & Applications	$	1,040,507		$	805,284		$	649,642
Match		518,027			400,723			342,598
Local		303,418			263,749			230,426
Media		70,164			49,692			14,833
Other		128,065			118,749			110,765
Inter-segment elimination		(737	)		(1,382	)		(1,569	)
Total	$	2,059,444		$	1,636,815		$	1,346,695

	Years Ended December 31,
	2011			2010			2009
	(In thousands)
Operating Income (Loss):
Search & Applications	$	204,006		$	128,356		$	(967,657	)
Match		137,555			115,367			84,655
Local		25,533			8,405			3,974
Media		(16,275	)		(23,385	)		(16,061	)
Other		(3,896	)		(31,600	)		(9,165	)
Corporate		(149,161	)		(147,348	)		(133,733	)
Total	$	197,762		$	49,795		$	(1,037,987	)

	Years Ended December 31,
	2011			2010			2009
	(In thousands)
Operating Income Before Amortization(a):
Search & Applications	$	204,980		$	140,792		$	103,856
Match		156,274			122,057			94,124
Local		28,284			10,671			12,357
Media		(15,845	)		(21,849	)		(15,518	)
Other		(2,499	)		2,091			(7,493	)
Corporate		(62,787	)		(64,183	)		(65,465	)
Total	$	308,407		$	189,579		$	121,861

	December 31,
	2011		2010
	(In thousands)
Segment Assets(b):
Search & Applications	$	246,459	$	260,288
Match		190,338		196,177
Local		46,581		42,473
Media		25,429		23,252
Other		15,910		13,191
Corporate		1,148,517		1,559,161
Total	$	1,673,234	$	2,094,542

	Years Ended December 31,
	2011		2010		2009
	(In thousands)
Depreciation:
Search & Applications	$	25,484	$	35,754	$	31,395
Match		10,780		11,042		9,821
Local		10,388		7,785		6,259
Media		703		245		169
Other		851		828		2,575
Corporate		8,513		8,243		11,172
Total	$	56,719	$	63,897	$	61,391

	Years Ended December 31,
	2011		2010		2009
	(In thousands)
Capital expenditures:
Search & Applications	$	8,698	$	17,169	$	16,913
Match		17,447		10,087		7,814
Local		9,299		10,513		7,482
Media		905		474		273
Other		970		951		1,221
Corporate		2,635		635		235
Total	$	39,954	$	39,829	$	33,938

(a)

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 of non-cash marketing, (3) amortization and impairment of intangibles, (4) goodwill impairment and (5) 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, non-cash marketing, 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.

(b)

Consistent with the Company's primary metric (described in (a) above), the Company excludes, if applicable, goodwill and intangible assets from the measure of segment assets presented above.

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

	Years Ended December 31,
	2011		2010		2009
	(In thousands)
Revenue
United States	$	1,583,322	$	1,359,655	$	1,138,820
All other countries		476,122		277,160		207,875
Total	$	2,059,444	$	1,636,815	$	1,346,695

	December 31,
	2011		2010
	(In thousands)
Long-lived assets (excluding goodwill and intangible assets)
United States	$	246,550	$	267,060
All other countries		13,038		868
Total	$	259,588	$	267,928

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

	Year Ended December 31, 2011
	Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Operating Income (Loss)
	(In thousands)
Search & Applications	$	204,980		$	202		$	(1,176	)	$	204,006
Match		156,274			(1,642	)		(17,077	)		137,555
Local		28,284			—			(2,751	)		25,533
Media		(15,845	)		(427	)		(3	)		(16,275	)
Other		(2,499	)		(347	)		(1,050	)		(3,896	)
Corporate		(62,787	)		(86,374	)		—			(149,161	)
Total	$	308,407		$	(88,588	)	$	(22,057	)	$	197,762

	Year Ended December 31, 2010
	Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Goodwill Impairment			Operating Income (Loss)
	(In thousands)
Search & Applications	$	140,792		$	(630	)	$	(11,806	)	$	—		$	128,356
Match		122,057			153			(6,843	)		—			115,367
Local		10,671			—			(2,266	)		—			8,405
Media		(21,849	)		(458	)		(1,078	)		—			(23,385	)
Other		2,091			(180	)		(5,479	)		(28,032	)		(31,600	)
Corporate		(64,183	)		(83,165	)		—			—			(147,348	)
Total	$	189,579		$	(84,280	)	$	(27,472	)	$	(28,032	)	$	49,795

	Year Ended December 31, 2009
	Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Amortization of Non-Cash Marketing			Goodwill Impairment			Operating (Loss) Income
	(In thousands)
Search & Applications	$	103,856		$	(663	)	$	(147,488	)	$	(6,494	)	$	(916,868	)	$	(967,657	)
Match		94,124			(154	)		(4,940	)		(4,375	)		—			84,655
Local		12,357			(150	)		(3,234	)		(4,999	)		—			3,974
Media		(15,518	)		(226	)		(317	)		—			—			(16,061	)
Other		(7,493	)		(620	)		(1,052	)		—			—			(9,165	)
Corporate		(65,465	)		(68,268	)		—			—			—			(133,733	)
Total	$	121,861		$	(70,081	)	$	(157,031	)	$	(15,868	)	$	(916,868	)	$	(1,037,987	)

        The following tables reconcile segment assets to total assets:

	December 31, 2011
	Segment Assets		Goodwill		Indefinite-Lived Intangible Assets		Definite-Lived Intangible Assets		Total Assets
	(In thousands)
Search & Applications	$	246,459	$	526,444	$	163,604	$	6	$	936,513
Match		190,338		667,073		156,699		21,501		1,035,611
Local		46,581		127,698		18,205		1,293		193,777
Media		25,429		15,590		1,800		—		42,819
Other		15,910		21,719		11,180		3,819		52,628
Corporate(c)		1,148,517		—		—		—		1,148,517
Total	$	1,673,234	$	1,358,524	$	351,488	$	26,619	$	3,409,865

	December 31, 2010
	Segment Assets		Goodwill		Indefinite-Lived Intangible Assets		Definite-Lived Intangible Assets		Total Assets
	(In thousands)
Search & Applications	$	260,288	$	526,681	$	163,604	$	1,181	$	951,754
Match(d)		196,177		297,974		42,118		979		537,248
Local		42,473		127,367		17,719		4,005		191,564
Media		23,252		15,759		2,400		20		41,431
Other		13,191		21,712		11,180		1,838		47,921
Corporate(c)		1,559,161		—		—		—		1,559,161
Total	$	2,094,542	$	989,493	$	237,021	$	8,023	$	3,329,079

(c)

Corporate assets consist primarily of cash and cash equivalents, marketable securities and IAC's headquarters building.

(d)

Included in the segment assets of Match at December 31, 2010 is its investment in Meetic, which was accounted for as an equity method investment. During the third quarter of 2011, Match obtained a controlling financial interest in Meetic. Accordingly, this purchase was accounted for under the acquisition method of accounting.