LendingTree (TREE) 10-Q 26 Oct 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 19, 2015
Entity Information:
Entity Registrant Name	LendingTree, Inc.
Entity Central Index Key	1,434,621
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		11,540,240
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue	$ 69,804	$ 41,306	$ 175,875	$ 123,486
Costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	2,436	2,110	6,402	5,670
Selling and marketing expense	48,901	27,168	118,615	83,581
General and administrative expense	7,069	6,590	21,336	18,201
Product development	2,675	1,658	7,238	5,416
Depreciation	764	840	2,135	2,541
Amortization of intangibles	25	41	124	96
Restructuring and severance	28	7	422	232
Litigation settlements and contingencies	133	2,338	(663)	10,430
Total costs and expenses	62,031	40,752	155,609	126,167
Operating income (loss)	7,773	554	20,266	(2,681)
Other income (expense):
Interest expense	(1)	(1)	(63)	(1)
Income (loss) before income taxes	7,772	553	20,203	(2,682)
Income tax (expense) benefit	(389)	2	(968)	86
Net income (loss) from continuing operations	7,383	555	19,235	(2,596)
Loss from discontinued operations, net of tax	(1,295)	(174)	(3,238)	(3,679)
Net income (loss) and comprehensive income (loss)	$ 6,088	$ 381	$ 15,997	$ (6,275)
Weighted average shares outstanding:
Basic	11,445	11,182	11,378	11,180
Diluted	12,489	11,836	12,379	11,180
Income (loss) per share from continuing operations:
Basic (in dollars per share)	$ 0.65	$ 0.05	$ 1.69	$ (0.23)
Diluted (in dollars per share)	0.59	0.05	1.55	(0.23)
Loss per share from discontinued operations:
Basic (in dollars per share)	(0.11)	(0.02)	(0.28)	(0.33)
Diluted (in dollars per share)	(0.10)	(0.01)	(0.26)	(0.33)
Income (loss) per share attributable to common shareholders:
Basic (in dollars per share)	0.53	0.03	1.41	(0.56)
Diluted (in dollars per share)	$ 0.49	$ 0.03	$ 1.29	$ (0.56)

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
ASSETS:
Cash and cash equivalents	$ 106,251	$ 86,212
Restricted cash and cash equivalents	18,621	18,716
Accounts receivable (net of allowance of $501 and $349, respectively)	25,181	13,611
Prepaid and other current assets	1,708	931
Current assets of discontinued operations	289	189
Total current assets	152,050	119,659
Property and equipment (net of accumulated depreciation of $15,173 and $14,810, respectively)	7,959	5,257
Goodwill	3,632	3,632
Intangible assets, net	11,017	11,141
Other non-current assets	126	102
Non-current assets of discontinued operations	0	100
Total assets	174,784	139,891
LIABILITIES:
Accounts payable, trade	6,245	1,060
Accrued expenses and other current liabilities	36,174	25,521
Current liabilities of discontinued operations	14,529	12,055
Total current liabilities	56,948	38,636
Other non-current liabilities	273	0
Deferred income taxes	4,738	4,738
Non-current liabilities of discontinued operations	31	151
Total liabilities	$ 61,990	$ 43,525
Commitments and contingencies
SHAREHOLDERS' EQUITY:
Preferred stock $.01 par value; 5,000,000 shares authorized; none issued or outstanding	$ 0	$ 0
Common stock $.01 par value; 50,000,000 shares authorized; 13,013,767 and 12,854,517 shares issued, respectively, and 11,540,240 and 11,386,240 shares outstanding, respectively	130	129
Additional paid-in capital	910,399	909,751
Accumulated deficit	(782,174)	(798,171)
Treasury stock 1,473,527 and 1,468,277 shares, respectively	(15,561)	(15,343)
Total shareholders' equity	112,794	96,366
Total liabilities and shareholders' equity	$ 174,784	$ 139,891

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Accounts receivable, allowance (in dollars)	$ 501	$ 349
Accumulated depreciation of property and equipment	$ 15,173	$ 14,810
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized shares	5,000,000	5,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	50,000,000	50,000,000
Common stock, issued shares	13,013,767	12,854,517
Common stock, outstanding shares	11,540,240	11,386,240
Treasury stock, shares	1,473,527	1,468,277

CONSOLIDATED STATEMENT OF SHARE

CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Treasury Stock	Comprehensive Income (Loss)
Balance at Dec. 31, 2014	$ 96,366	$ 129	$ 909,751	$ (798,171)	$ (15,343)
Balance (in shares) at Dec. 31, 2014		12,855,000			1,468,000
Increase (Decrease) in Stockholders' Equity
Net income (loss) and comprehensive income (loss)	15,997			15,997		$ 15,997
Non-cash compensation	$ 6,371		6,371
Purchase of treasury stock (in shares)	5,250				5,000
Purchase of treasury stock	$ (218)				$ (218)
Dividends	(11)		(11)
Issuance of common stock for stock options, restricted stock awards and restricted stock units, net of withholding taxes	(6,196)	$ 1	(6,197)
Issuance of common stock for stock options, restricted stock awards and restricted stock units, net of withholding taxes (in shares)		159,000
Tax benefit from stock-based award activity	485		485
Balance at Sep. 30, 2015	$ 112,794	$ 130	$ 910,399	$ (782,174)	$ (15,561)
Balance (in shares) at Sep. 30, 2015		13,014,000			1,473,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities attributable to continuing operations:
Net income (loss) and comprehensive income (loss)	$ 15,997	$ (6,275)
Less: Loss from discontinued operations, net of tax	3,238	3,679
Net income (loss) from continuing operations	19,235	(2,596)
Adjustments to reconcile income (loss) from continuing operations to net cash provided by operating activities attributable to continuing operations:
Loss on disposal of fixed assets	102	237
Amortization of intangibles	124	96
Depreciation	2,135	2,541
Non-cash compensation expense	6,371	4,859
Deferred income taxes	0	(3)
Excess tax benefit from stock-based award activity	(485)
Bad debt expense	236	130
Changes in current assets and liabilities:
Accounts receivable	(11,805)	(1,356)
Prepaid and other current assets	(756)	(505)
Accounts payable, accrued expenses and other current liabilities	15,272	(2,846)
Income taxes payable	460	576
Other, net	207	(161)
Net cash provided by operating activities attributable to continuing operations	31,096	972
Cash flows from investing activities attributable to continuing operations:
Capital expenditures	(4,265)	(2,997)
Acquisition of a business	(37)	(540)
Decrease in restricted cash	95	4,143
Net cash (used in) provided by investing activities attributable to continuing operations	(4,207)	606
Cash flows from financing activities attributable to continuing operations:
Payments related to net-share settlement of stock-based compensation, net of proceeds from exercise of stock options	(6,127)	(3,616)
Excess tax benefit from stock-based award activity	485
Purchase of treasury stock	(218)	(2,547)
Dividends	(105)	(196)
Net cash used in financing activities attributable to continuing operations	(5,965)	(6,359)
Total cash provided by (used in) continuing operations	20,924	(4,781)
Net cash used in operating activities attributable to discontinued operations	(885)	(3,255)
Total cash used in discontinued operations	(885)	(3,255)
Net increase (decrease) in cash and cash equivalents	20,039	(8,036)
Cash and cash equivalents at beginning of period	86,212	91,667
Cash and cash equivalents at end of period	$ 106,251	$ 83,631

ORGANIZATION (Note)

ORGANIZATION (Note)	9 Months Ended
	Sep. 30, 2015
ORGANIZATION
ORGANIZATION	ORGANIZATION Company Overview LendingTree, Inc. ("LendingTree" or the "Company"), formerly known as Tree.com, Inc., is the parent of LendingTree, LLC and several companies owned by LendingTree, LLC. LendingTree operates what it believes to be the leading online loan marketplace for consumers seeking a broad array of loan types and other credit-based offerings. The Company offers consumers tools and resources, including free credit scores, that help them to comparison-shop for mortgage loans, home equity loans and lines of credit, reverse mortgages, personal loans, auto loans, student loans, credit cards, small business loans and other related offerings. The Company seeks to primarily match in-market consumers with multiple lenders on its marketplace who can provide them with competing quotes for the loans or credit-based offerings they are seeking. The Company also serves as a valued partner to lenders seeking an efficient, scalable and flexible source of customer acquisition with directly measurable benefits, by matching the consumer inquiries it generates with these lenders. The consolidated financial statements include the accounts of LendingTree and all its wholly-owned entities. Intercompany transactions and accounts have been eliminated. Discontinued Operations The LendingTree Loans business is presented as discontinued operations in the accompanying consolidated balance sheets, consolidated statements of operations and comprehensive income and consolidated cash flows for all periods presented. The notes accompanying these consolidated financial statements reflect the Company's continuing operations and, unless otherwise noted, exclude information related to the discontinued operations. See Note 13 — Discontinued Operations for additional information. Basis of Presentation The accompanying unaudited interim consolidated financial statements as of September 30, 2015 and for the three and nine months ended September 30, 2015 and 2014 , respectively, have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). In the opinion of management, the unaudited interim consolidated financial statements have been prepared on the same basis as the audited financial statements, and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the Company's financial position for the periods presented. The results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015 , or any other period. The accompanying consolidated balance sheet as of December 31, 2014 was derived from audited financial statements included in the Company's annual report on Form 10-K for the year ended December 31, 2014 (the "2014 Annual Report"). The accompanying consolidated financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. Accordingly, they should be read in conjunction with the audited financial statements and notes thereto included in the 2014 Annual Report.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES (Note)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	SIGNIFICANT ACCOUNTING POLICIES Accounting Estimates Management is required to make certain estimates and assumptions during the preparation of the consolidated financial statements in accordance with GAAP. These estimates and assumptions impact the reported amount of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. They also impact the reported amount of net earnings during any period. Actual results could differ from those estimates. Significant estimates underlying the accompanying consolidated financial statements, including discontinued operations, include: loan loss obligations; the recoverability of long-lived assets, goodwill and intangible assets; the determination of income taxes payable and deferred income taxes, including related valuation allowances; contingent consideration related to business combinations; litigation accruals; various other allowances, reserves and accruals; and assumptions related to the determination of stock-based compensation. Certain Risks and Concentrations LendingTree's business is subject to certain risks and concentrations including dependence on third-party technology providers, exposure to risks associated with online commerce security and credit card fraud. Financial instruments, which potentially subject the Company to concentration of credit risk at September 30, 2015 , consist primarily of cash and cash equivalents and accounts receivable, as disclosed in the consolidated balance sheet. Cash and cash equivalents are in excess of Federal Deposit Insurance Corporation insurance limits, but are maintained with quality financial institutions of high credit. The Company generally requires certain marketplace lenders to maintain security deposits with the Company, which in the event of non-payment, would be applied against any accounts receivable outstanding. Due to the nature of the mortgage lending industry, interest rate increases may negatively impact future revenue from the Company's lender marketplace. Lenders participating on the Company's marketplace can offer their products directly to consumers through brokers, mass marketing campaigns or through other traditional methods of credit distribution. These lenders can also offer their products online, either directly to prospective borrowers, through one or more online competitors, or both. If a significant number of potential consumers are able to obtain loans from participating lenders without utilizing the Company's services, the Company's ability to generate revenue may be limited. Because the Company does not have exclusive relationships with the lenders whose loan offerings are offered on its online marketplace, consumers may obtain offers and loans from these lenders without using its service. The Company maintains operations solely in the United States. Litigation Settlements and Contingencies Litigation settlements and contingencies consists of expenses related to actual or anticipated litigation settlements, in addition to legal fees incurred in connection with various patent litigation claims the Company pursues against others. Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-05 related to cloud computing arrangements. This ASU sets forth guidance on accounting for fees paid in a cloud computing arrangement and specifically outlines how to determine whether a cloud computing arrangement contains a software license or is solely a service contract. This ASU will be effective for annual and interim reporting periods beginning after December 15, 2015 and permits early adoption. The Company early adopted this ASU and it did not have a significant impact on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09 related to revenue recognition. This ASU was initiated as a joint project between the FASB and the International Accounting Standards Board ("IASB") to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and international financial reporting standards ("IFRS"). This guidance will supersede the existing revenue recognition requirements in Accounting Standards Codification ("ASC") Topic 605, Revenue Recognition and was set to be effective for annual reporting periods beginning after December 15, 2016. However, in July 2015, the FASB deferred the effective date by one year, such that the standard will be effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted as of the original effective date of December 15, 2016. The ASU can be applied (i) retrospectively to each prior period presented or (ii) retrospectively with the cumulative effect of initially adopting the ASU recognized at the date of initial application. The Company is evaluating the impact this ASU will have on its consolidated financial statements and whether to adopt early.

RESTRICTED CASH (Note)

RESTRICTED CASH (Note)	9 Months Ended
	Sep. 30, 2015
Cash and Cash Equivalents [Abstract]
RESTRICTED CASH	RESTRICTED CASH Restricted cash and cash equivalents consists of the following (in thousands) : September 30, December 31, Cash in escrow for surety bonds (a) $ 2,453 $ 2,453 Cash in escrow for corporate purchasing card program — 100 Cash in escrow from sale of LendingTree Loans (b) 16,107 16,106 Other 61 57 Total restricted cash and cash equivalents $ 18,621 $ 18,716 (a) State laws and regulations generally require businesses which engage in mortgage brokering activity to maintain a mortgage broker or similar license. Mortgage brokering activity is generally defined to include, among other things, receiving valuable consideration for offering assistance to a buyer in obtaining a residential mortgage or soliciting financial and mortgage information from the public and providing that information to an originator of residential mortgage loans. All states require that the Company maintain surety bonds for potential claims. (b) Home Loan Center, Inc. ("HLC"), a subsidiary of the Company, continues to be liable for certain indemnification obligations, repurchase obligations and premium repayment obligations following the sale of substantially all of the operating assets of its LendingTree Loans business in the second quarter of 2012. As a result of a settlement agreement in 2014 with a secondary market purchaser of loans, $12.1 million of cash in escrow is expected to be released in December 2015.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Note)	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	GOODWILL AND INTANGIBLE ASSETS The balance of goodwill and intangible assets, net is as follows (in thousands) : September 30, December 31, Goodwill $ 486,720 $ 486,720 Accumulated impairment losses (483,088 ) (483,088 ) Net goodwill $ 3,632 $ 3,632 Intangible assets with indefinite lives $ 10,142 $ 10,142 Intangible assets with definite lives, net 875 999 Total intangible assets, net $ 11,017 $ 11,141 Goodwill and Indefinite-Lived Intangible Assets The Company's goodwill is associated with its one reportable segment, lending. Intangible assets with indefinite lives relate to the Company's trademarks. Intangible Assets with Definite Lives Intangible assets with definite lives relate to the following (in thousands) : Cost Accumulated Amortization Net Customer lists $ 1,049 $ (174 ) $ 875 Other 1,087 (1,087 ) — Balance at September 30, 2015 $ 2,136 $ (1,261 ) $ 875 Cost Accumulated Amortization Net Customer lists $ 1,049 $ (50 ) $ 999 Other 1,087 (1,087 ) — Balance at December 31, 2014 $ 2,136 $ (1,137 ) $ 999 Amortization of intangible assets with definite lives is computed on a straight-line basis and, based on balances as of September 30, 2015 , future amortization is estimated to be as follows (in thousands) : Amortization Expense Remainder of current year $ 25 Year ending December 31, 2016 100 Year ending December 31, 2017 100 Year ending December 31, 2018 100 Year ending December 31, 2019 100 Thereafter 450 Total intangible assets with definite lives, net $ 875 On June 30, 2014, the Company acquired certain intangible assets to be used in its home services business for $0.6 million paid on the acquisition date, plus contingent consideration of $0 to $0.8 million . During the fourth quarter of 2014, the Company finalized the purchase price of $1.0 million , which included an estimated contingent consideration of $0.4 million . The entire purchase price was allocated to the customer lists acquired, which is being amortized on a straight-line basis over a useful life of 10 years . During the first quarter of 2015, the Company reduced its estimated contingent consideration by $0.1 million , which is included in general and administrative expense in the accompanying consolidated statements of operations and comprehensive income.

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Note)	9 Months Ended
	Sep. 30, 2015
Payables and Accruals [Abstract]
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following (in thousands) : September 30, December 31, Accrued litigation liabilities $ 636 $ 2,786 Accrued advertising expense 22,200 11,170 Accrued compensation and benefits 3,838 2,666 Accrued professional fees 734 337 Accrued restructuring costs — 178 Customer deposits and escrows 4,755 4,560 Deferred rent 2 162 Other 4,009 3,662 Total accrued expenses and other current liabilities $ 36,174 $ 25,521

SHAREHOLDERS' EQUITY (Note)

SHAREHOLDERS' EQUITY (Note)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
SHAREHOLDERS' EQUITY	SHAREHOLDERS' EQUITY Basic and diluted income (loss) per share was determined based on the following share data (in thousands) : Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Weighted average basic common shares 11,445 11,182 11,378 11,180 Effect of stock options 891 471 841 — Effect of dilutive share awards 153 183 160 — Weighted average diluted common shares 12,489 11,836 12,379 11,180 For the nine months ended September 30, 2014 , the Company had losses from continuing operations and, as a result, no potentially dilutive securities were included in the denominator for computing diluted loss per share, because the impact would have been anti-dilutive. Accordingly, the weighted average basic shares outstanding were used to compute loss per share amounts for the period. For the nine months ended September 30, 2014 , approximately 0.7 million shares related to potentially dilutive securities were excluded from the calculation of diluted loss per share, because their inclusion would have been anti-dilutive. For the three months ended September 30, 2014, approximately 0.1 million shares related to potentially dilutive securities were excluded from the calculation of diluted earnings per share, because their inclusion would have been anti-dilutive. No potentially dilutive securities were excluded from the calculation of diluted earnings per share for the three and nine months ended September 30, 2015. Common Stock Repurchases In January 2010, the board of directors authorized and the Company announced the repurchase of up to $10.0 million of LendingTree's common stock. In May 2014, the board of directors authorized and the Company announced the repurchase of up to an additional $10.0 million of LendingTree's common stock. During the nine months ended September 30, 2015 , the Company purchased 5,250 shares of its common stock pursuant to this stock repurchase program. At September 30, 2015 , approximately $7.3 million remains authorized for share repurchase.

STOCK-BASED COMPENSATION (Note)

STOCK-BASED COMPENSATION (Note)	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION Non-cash compensation related to equity awards is included in the following line items in the accompanying consolidated statements of operations and comprehensive income (in thousands) : Three Months Ended Nine Months Ended 2015 2014 2015 2014 Cost of revenue $ 24 $ 11 $ 68 $ 24 Selling and marketing expense 425 205 1,080 664 General and administrative expense 1,178 1,292 3,909 3,281 Product development 351 278 1,176 854 Restructuring and severance — — 138 36 Total non-cash compensation $ 1,978 $ 1,786 $ 6,371 $ 4,859 Stock Options A summary of changes in outstanding stock options is as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (a) (per option) (in years) (in thousands) Options outstanding at January 1, 2015 2,136,679 $ 18.16 Granted (b) 44,635 66.68 Exercised (134,515 ) 17.51 Forfeited (127,439 ) 26.84 Expired (1,339 ) 7.88 Options outstanding at September 30, 2015 1,918,021 18.76 6.15 $ 142,596 Options exercisable at September 30, 2015 934,288 $ 8.53 3.70 $ 78,944 (a) The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company's closing stock price of $93.03 on the last trading day of the quarter ended September 30, 2015 and the exercise price, multiplied by the number of shares covered by in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2015 . The intrinsic value changes based on the market value of the Company's common stock. (b) During the nine months ended September 30, 2015 , the Company granted stock options to certain employees and the board of directors with a weighted average grant date fair value per share of $26.71 , which vesting periods include (a) three years from the grant date, (b) 25% and 75% over a period of 1.67 years and 2.67 years , respectively, (c) one year from the grant date and (d) two years from the grant date. For purposes of determining stock-based compensation expense, the weighted average grant date fair value per share of the stock options was estimated using the Black-Scholes option pricing model, which requires the use of various key assumptions. The weighted average assumptions used are as follows: Expected term (1) 5.50 - 6.23 years Expected dividend (2) — Expected volatility (3) 37.51% - 42.46% Risk-free interest rate (4) 1.65% - 2.01% (1) The expected term of stock options granted was calculated using the 'Simplified Method', which utilizes the midpoint between the weighted average time of vesting and the end of the contractual term. This method was utilized for the stock options due to a lack of historical exercise behavior by the Company's employees. (2) For all stock options granted in 2015 , no dividends are expected to be paid over the contractual term of the stock options, resulting in a zero expected dividend rate. (3) The expected volatility rate is based on the historical volatility of the Company's common stock. (4) The risk-free interest rate is specific to the date of grant. The risk-free interest rate is based on U.S. Treasury yields for notes with comparable expected terms as the awards, in effect at the grant date. Restricted Stock Units and Restricted Stock A summary of the changes in outstanding nonvested restricted stock units ("RSUs") and restricted stock is as follows: RSUs Number of Units Weighted Average Grant Date Fair Value (per unit) Nonvested at January 1, 2015 351,801 $ 22.83 Granted 94,310 65.57 Vested (176,914 ) 20.31 Forfeited (27,788 ) 32.37 Nonvested at September 30, 2015 241,409 $ 40.29 Restricted Stock Number of Shares Weighted Average Grant Date Fair Value (per share) Nonvested at January 1, 2015 123,057 $ 23.41 Granted — — Vested (35,295 ) 20.62 Forfeited — — Nonvested at September 30, 2015 87,762 $ 24.54

INCOME TAXES (Note)

INCOME TAXES (Note)	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in thousands, except percentages) Income tax (expense) benefit $ (389 ) $ 2 $ (968 ) $ 86 Effective tax rate 5.0 % 0.4 % 4.8 % 3.2 % Tax expense for the three and nine months ended September 30, 2015 is primarily comprised of the federal Alternative Minimum Tax and state taxes. For the three and nine months ended September 30, 2015 and 2014 , the effective tax rates varied from the statutory rate primarily due to the existence of a valuation allowance that has been provided to offset the Company's net deferred tax asset and state taxes. Valuation Allowance There has been no change to the Company's valuation allowance assessment for the three and nine months ended September 30, 2015 .

COMMITMENTS (Note)

COMMITMENTS (Note)	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	COMMITMENTS The Company leases office space used in connection with its operations under various operating leases, which contain escalation clauses. The Company's operating leases relate to its office space in Charlotte, North Carolina and Burlingame, California. Effective, May 2015, the Company renewed the lease for its principal executive office located in Charlotte, North Carolina. Future minimum payments as of September 30, 2015 under operating lease agreements having an initial or remaining non-cancelable lease term in excess of one year are as follows (in thousands) : Amount Remainder of current year $ 68 Year ending December 31, 2016 1,217 Year ending December 31, 2017 1,036 Year ending December 31, 2018 995 Year ending December 31, 2019 1,025 Thereafter 1,055 Total $ 5,396

CONTINGENCIES (Note)

CONTINGENCIES (Note)	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES Overview LendingTree is involved in legal proceedings on an ongoing basis. In assessing the materiality of a legal proceeding, the Company evaluates, among other factors, the amount of monetary damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs (e.g., injunctive relief) that may require it to change its business practices in a manner that could have a material and adverse impact on the business. With respect to the matters disclosed in this Note 10 , unless otherwise indicated, the Company is unable to estimate the possible loss or range of losses that could potentially result from the application of such non-monetary remedies. As of September 30, 2015 and December 31, 2014 , the Company had a litigation settlement accrual for its continuing operations of $0.6 million and $2.8 million , respectively. The litigation settlement accrual relates to litigation matters that were either settled or a firm offer for settlement was extended, thereby establishing an accrual amount that is both probable and reasonably estimable. Specific Matters Intellectual Property Litigation Zillow LendingTree v. Zillow, Inc., et al. Civil Action No. 3:10-cv-439 . On September 8, 2010, the Company filed an action for patent infringement in the US District Court for the Western District of North Carolina against Zillow, Inc., NexTag, Inc., Quinstreet, Inc., Quinstreet Media, Inc. and Adchemy, Inc. The complaint was amended to include Leadpoint, Inc. d/b/a Securerights on September 24, 2010. The complaint alleged that each of the defendants infringe one or both of the Company's patents-U.S. Patent No. 6,385,594, entitled "Method and Computer Network for Co-Ordinating a Loan over the Internet," and U.S. Patent No. 6,611,816, entitled "Method and Computer Network for Co-Ordinating a Loan over the Internet." The defendants in this action asserted various defenses and counterclaims against the Company, including the assertion by certain of the defendants of counterclaims alleging illegal monopolization via the Company's maintenance of the asserted patents. Defendant NexTag asserted defenses of laches and equitable estoppel. In July 2011, the Company reached a settlement agreement with Leadpoint, Inc., pursuant to which all claims against Leadpoint, Inc. and all counterclaims against the Company by Leadpoint, Inc. were dismissed. In November 2012, the Company reached a settlement agreement with Quinstreet, Inc. and Quinstreet Media, Inc. (collectively, the "Quinstreet Parties"), pursuant to which all claims against the Quinstreet Parties and all counterclaims against the Company by the Quinstreet Parties were dismissed. After an unsuccessful attempt to reach settlement through mediation with the remaining parties, this matter went to trial beginning in February 2014, and on March 12, 2014, the jury returned a verdict. The jury found that the defendants Zillow, Inc., Adchemy, Inc. and NexTag, Inc. did not infringe the two patents referenced above and determined that those patents are invalid due to an inventorship defect, and the court found that NexTag was entitled to defense of laches and equitable estoppel. The jury found in the Company's favor on the defendants' counterclaims alleging inequitable conduct and antitrust violations. Judgment was entered on March 31, 2014. After the court entered judgment, on May 27, 2014, the Company reached a settlement agreement with defendant Adchemy, Inc., including an agreement to dismiss and withdraw all claims, counterclaims, and motions between the Company and Adchemy, Inc. As a result, a joint and voluntary dismissal was filed June 12, 2014 with respect to claims between the Company and Adchemy. The parties filed various post-trial motions; in particular, defendants collectively sought up to $9.7 million in fees and costs. On October 9, 2014, the court denied the Company's post-trial motion for judgment as a matter of law and denied Zillow's post-trial motions for sanctions and attorneys' fees. The court also denied in part and granted in part NexTag's post-trial motion for attorneys' fees, awarding NexTag a portion of its attorney's fees and costs totaling $2.3 million , plus interest. The trial and post-trial motion process is now complete. In November 2014, the Company filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit with respect to the jury verdict concerning Zillow, Inc. and NexTag, Inc. and the award of attorneys' fees. In March 2015, the U.S. Court of Appeals for the Federal Circuit granted the Company's motion to stay appellate briefing pending an en banc review by such court of the laches defense in an unrelated patent infringement matter and ruled in favor of Zillow, Inc. on an immaterial amount of costs related to the trial process. In June 2015, the Company reached a settlement agreement for $1.1 million with defendant NexTag pursuant to which the Company dismissed its appeal of the jury verdict and the award of attorney's fees concerning NexTag, and NexTag dismissed its cross-appeal and claims relating to the jury verdict and the award of attorneys' fees. In July 2015, the stay was lifted on the Company's appeal with respect to the jury verdict concerning Zillow, Inc. The company filed its appellate brief in September 2015. Legal Matters Massachusetts Division of Banks On February 11, 2011, the Massachusetts Division of Banks (the "Division") delivered a Report of Examination/Inspection to LendingTree, LLC, which identified various alleged violations of Massachusetts and federal laws, including the alleged insufficient delivery by LendingTree, LLC of various disclosures to its customers. On October 14, 2011, the Division provided a proposed Consent Agreement and Order to settle the Division's allegations, which the Division had shared with other state mortgage lending regulators. Thirty-four of such state mortgage lending regulators (the "Joining Regulators") indicated that if LendingTree, LLC would enter into the Consent Agreement and Order, they would agree not to pursue any analogous allegations that they otherwise might assert. None of the Joining Regulators have asserted any such allegations. The proposed Consent Agreement and Order calls for a fine to be allocated among the Division and the Joining Regulators and for LendingTree, LLC to adopt various new procedures and practices. The Company has commenced negotiations toward an acceptable Consent Agreement and Order. It does not believe its mortgage marketplace business violated any federal or state mortgage lending laws; nor does it believe that any past operations of the mortgage business have resulted in a material violation of any such laws. Should the Division or any Joining Regulator bring any actions relating to the matters alleged in the February 2011 Report of Examination/Inspection, the Company intends to defend against such actions vigorously. The range of possible loss is estimated to be between $0.5 million and $6.5 million , and a reserve of $0.5 million has been established for this matter in the accompanying consolidated balance sheet as of September 30, 2015 . Litigation Related to Discontinued Operations Dijkstra Lijkel Dijkstra v. Harry Carenbauer, Home Loan Center, Inc. et al., No. 5:11-cv-152-JPB (U.S. Dist. Ct., N.D.WV). In November 2008, the plaintiffs filed a putative class action in Circuit Court of Ohio County, West Virginia against Harry Carenbauer, HLC, HLC Escrow, Inc. et al. The complaint alleges that HLC engaged in the unauthorized practice of law in West Virginia by permitting persons who were neither admitted to the practice of law in West Virginia nor under the direct supervision of a lawyer admitted to the practice of law in West Virginia to close mortgage loans. The plaintiffs assert claims for declaratory judgment, contempt, injunctive relief, conversion, unjust enrichment, breach of fiduciary duty, intentional misrepresentation or fraud, negligent misrepresentation, violation of the West Virginia Consumer Credit and Protection Act ("CCPA"), violation of the West Virginia Lender, Broker & Services Act, civil conspiracy, outrage and negligence. The claims against all defendants other than Mr. Carenbauer, HLC and HLC Escrow, Inc. have been dismissed. The case was removed to federal court in October 2011. On January 3, 2013, the court granted a conditional class certification only with respect to the declaratory judgment, contempt, unjust enrichment and CCPA claims. The conditional class included consumers with mortgage loans in effect any time after November 8, 2007 who obtained such loans through HLC, and whose loans were closed by persons not admitted to the practice of law in West Virginia or by persons not under the direct supervision of a lawyer admitted to the practice of law in West Virginia. In February 2014, the court granted and denied certain of each party's motions for summary judgment. With respect to the Class Claims, the court granted plaintiff's motions for summary judgment with respect to declaratory judgment, unjust enrichment and violation of the CCPA. The court granted HLC's motion for summary judgment with respect to contempt. In addition, the court denied HLC's motion to decertify the class. With respect to the claims applicable to the named plaintiff only (the "Individual Claims"), HLC's motions for summary judgment were granted with respect to conversion, breach of fiduciary duty, intentional misrepresentation, negligent misrepresentation and outrage. HLC and the plaintiff settled the remaining Individual Claims in June 2014. In July 2014, the court awarded damages to plaintiffs in the amount of $2.8 million . HLC filed a notice of appeal in August 2014 and in September 2014, plaintiffs filed a motion to dismiss the appeal. In December 2014, the U.S. Court of Appeals for the Fourth Circuit determined that the district court's order was not yet final, and, accordingly, HLC's appeal was dismissed. In July 2015, the district court awarded attorneys' fees to Plaintiffs consisting of one-third of the class damages award plus an additional $389,500 . The judge also awarded prejudgment interest to Plaintiffs. On July 30, 2015, the district court judge entered a final judgment order in this matter. On August 27, 2015, HLC filed its notice of appeal to the U.S. Court of Appeals for the Fourth Circuit with respect to the final judgment, the order granting attorneys' fees, and the orders on class damages, the pretrial conference, motions and class certification. A reserve of $3.2 million has been established for this matter in the accompanying consolidated balance sheet as of September 30, 2015 , of which some or all may be covered by insurance. Residential Funding Company Residential Funding Company, LLC v Home Loan Center, Inc., No. 13-cv-3451 (U.S. Dist. Ct., Minn.). On or about December 16, 2013, Home Loan Center, Inc. was served in the above captioned matter. Generally, Residential Funding Company, LLC ("RFC") seeks damages for breach of contract and indemnification for certain residential mortgage loans as well as residential mortgage-backed securitizations ("RMBS") containing mortgage loans. RFC asserts that, beginning in 2008, RFC faced massive repurchase demands and lawsuits from purchasers or insurers of the loans and RMBS that RFC had sold. RFC filed for bankruptcy protection in May 2012. Plaintiff alleges that, after RFC filed for Chapter 11 protection, hundreds of proofs of claim were filed, many of which mirrored the litigation filed against RFC prior to its bankruptcy. In December 2013, the United States Bankruptcy Court for the Southern District of New York entered an Order confirming the Second Amended Joint Chapter 11 Plan Proposed by Residential Capital, LLC et al. and the Official Committee of Unsecured Creditors. Plaintiff then began filing substantially similar complaints against approximately 80 of the loan originators from whom RFC had purchased loans, including Home Loan Center, in federal and state courts in Minnesota and New York. In each case, Plaintiff claims that the defendant is liable for a portion of the global settlement in RFC’s bankruptcy. Plaintiff asserts two claims against HLC: (1) breach of contract based on HLC’s alleged breach of representations and warranties concerning the quality and characteristics of the mortgage loans it sold to RFC (Count One); and (2) contractual indemnification for alleged liabilities, losses, and damages incurred by RFC arising out of purported defects in loans that RFC purchased from HSBC and sold to third parties (Count Two). Plaintiff alleges that the “types of defects” contained in the loans it purchased from HLC included “income misrepresentation, employment misrepresentation, appraisal misrepresentations or inaccuracies, undisclosed debt, and missing or inaccurate documents.” HLC filed a Motion to Dismiss under Rule 12(b)(6) of the Federal Rules of Civil Procedure or, in the alternative, a Motion for More Definite Statement under Rule 12(e). On June 25, 2015 the judge denied HLC's motion. On July 9, 2015, HLC filed its answer to RFC’s complaint, denying the material allegations of the complaint and asserting numerous defenses thereto. Discovery is ongoing in this matter. HLC intends to vigorously defend this action. Lehman Brothers Holdings, Inc. Demand Letter In December 2014, HLC received a demand letter (the “Letter”) from the Bankruptcy Estate of Lehman Brothers Holdings, Inc. (“LBHI”) concerning 64 loans (the “Loans”) that LBHI alleges were sold by HLC to Lehman Brothers Bank, FSB (“LBB”) between 2004 and 2008 pursuant to a loan purchase agreement (the “LPA”) between HLC and LBB. The Letter claims that LBB subsequently sold the Loans to LBHI and that LBB assigned to LBHI its contractual rights pursuant to the LPA with respect to the Loans. LBHI now alleges that HLC breached certain representations and warranties in the LPA concerning the Loans. The Letter states that LBHI, as an assign of LBB, now seeks indemnification from HLC in accordance with the LPA for certain claims that LBHI alleges it allowed in its bankruptcy with respect to the Loans. HLC and LBHI are currently engaged in negotiations concerning the allegations made in the Letter. Should LBHI bring any actions relating to the matters alleged in the Letter, the Company intends to defend against such actions vigorously. A reserve of $0.5 million for this matter is included in the accompanying consolidated balance sheet as of September 30, 2015 .

SEGMENT INFORMATION (Note)

SEGMENT INFORMATION (Note)	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
SEGMENT INFORMATION	During the first quarter of 2015, management made certain changes to its organizational structure that impacted its previous operating segments. As a result, management concluded it had one reportable segment representing the Company's Lending activities. Previously reported segment results have been revised to conform to the Company's one reportable segment at September 30, 2015 . Mortgage and non-mortgage product revenue is as follows (in thousands) : Three Months Ended Nine Months Ended 2015 2014 2015 2014 Mortgage products $ 44,171 $ 32,026 $ 118,367 $ 100,936 Non-mortgage products 25,633 9,280 57,508 22,550 Total revenue $ 69,804 $ 41,306 $ 175,875 $ 123,486

RESTRUCTURING EXPENSE (Note)

RESTRUCTURING EXPENSE (Note)	9 Months Ended
	Sep. 30, 2015
Restructuring and Related Activities [Abstract]
RESTRUCTURING	RESTRUCTURING Accrued restructuring costs primarily relate to lease obligations for call center leases exited in 2010, which were completed in 2015. Restructuring expense and payments against liabilities are as follows (in thousands) : Continuing Lease Obligations Balance at December 31, 2014 $ 178 Restructuring income (29 ) Payments (149 ) Balance at September 30, 2015 $ —

DISCONTINUED OPERATIONS (Note)

DISCONTINUED OPERATIONS (Note)	9 Months Ended
	Sep. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]
DISCONTINUED OPERATIONS	DISCONTINUED OPERATIONS The revenue and net loss reported as discontinued operations in the accompanying consolidated statements of operations and comprehensive income are as follows (in thousands) : Three Months Ended Nine Months Ended 2015 2014 2015 2014 Revenue $ 1 $ 114 $ 4 $ 118 Loss before income taxes $ (1,343 ) $ (175 ) $ (3,369 ) $ (3,676 ) Income tax benefit (expense) 48 1 131 (3 ) Net loss $ (1,295 ) $ (174 ) $ (3,238 ) $ (3,679 ) LendingTree Loans On June 6, 2012, the Company sold substantially all of the operating assets of its LendingTree Loans business for $55.9 million in cash. The buyer, a wholly-owned subsidiary of Discover Financial Services ("Discover"), generally did not assume liabilities of the LendingTree Loans business that arose before the closing date, except for certain liabilities directly related to assets Discover acquired. Of the purchase price paid, as of September 30, 2015 , $16.1 million is being held in escrow in accordance with the agreement with Discover for certain loan loss obligations that remain with the Company following the sale. As a result of a settlement agreement in 2014 with a secondary market purchaser of loans, $12.1 million of such amount is expected to be released from escrow in December 2015. The escrowed amount is recorded as restricted cash at September 30, 2015 . Discover participated as a marketplace lender from closing of the transaction through July 2015. An evaluation of the facts and circumstances of the transaction and the applicable accounting guidance for discontinued operations indicates that the LendingTree Loans business should be reflected as discontinued operations in the accompanying consolidated financial statements for all periods presented. The continuing cash flows related to this transaction are not significant and, accordingly, are not deemed to be direct cash flows of the divested business. Significant Assets and Liabilities of LendingTree Loans Upon closing of the sale of substantially all of the operating assets of the LendingTree Loans business on June 6, 2012, LendingTree Loans ceased to originate consumer loans. The remaining operations are being wound down. These wind-down activities have included, among other things, selling the balance of loans held for sale to investors, paying off and then terminating the warehouse lines of credit and settling derivative obligations, all of which have been completed. Liability for losses on previously sold loans will remain with LendingTree Loans and are discussed below. Loan Loss Obligations LendingTree Loans sold loans it originated to investors on a servicing-released basis, so the risk of loss or default by the borrower was generally transferred to the investor. However, LendingTree Loans was required by these investors to make certain representations and warranties relating to credit information, loan documentation and collateral. These representations and warranties may extend through the contractual life of the loan. Subsequent to the loan sale, if underwriting deficiencies, borrower fraud or documentation defects are discovered in individual loans, LendingTree Loans may be obligated to repurchase the respective loan or indemnify the investors for any losses from borrower defaults if such deficiency or defect cannot be cured within the specified period following discovery. In the case of early loan payoffs and early defaults on certain loans, LendingTree Loans may be required to repay all or a portion of the premium initially paid by the investor. HLC, a subsidiary of the Company, continues to be liable for these indemnification obligations, repurchase obligations and premium repayment obligations following the sale of substantially all of the operating assets of its LendingTree Loans business in the second quarter of 2012. As of September 30, 2015 , approximately $16.1 million is being held in escrow pending resolution of certain of these contingent liabilities. As a result of a settlement agreement in 2014 with a secondary market purchaser of loans, $12.1 million of such amount is expected to be released from escrow in December 2015. Prior to the sale of substantially all of the operating assets of LendingTree Loans in June 2012, it originated approximately 234,000 loans with an original issue balance of $38.9 billion . In October 2015, LendingTree Loans completed a settlement agreement for $0.6 million with one of the investors to which it had sold loans. This investor accounted for approximately 10% of the total number of loans sold and 12% of the original issue balance. This settlement related to all existing and future losses on loans sold to this investor. During the fourth quarter of 2014, LendingTree Loans completed a settlement agreement for $5.4 million with the largest investor to which it had sold loans. This investor accounted for approximately 40% of both the total number of loans sold and the original issue balance. This settlement related to all existing and future losses on loans sold to this investor. The settlement was paid in the fourth quarter of 2014 with restricted cash of $3.1 million and cash on hand of $2.3 million . The settlement with this investor in the fourth quarter of 2014 and the impact this settlement had on the estimate of the remaining loan loss obligations resulted in income of $14.1 million , which was included in income from discontinued operations in the consolidated statements of operations and comprehensive income during the fourth quarter of 2014. The adjustment to the loan loss reserve did not result in tax expense recognition, due to the Company's full valuation allowance against its deferred tax assets. In the second quarter of 2014, LendingTree Loans completed settlements with two buyers of previously purchased loans. The Company has been negotiating with certain of the remaining secondary market purchasers to settle any existing and future contingent liabilities, but it may not be able to complete such negotiations on acceptable terms, or at all. Because LendingTree Loans does not service the loans it sold, it does not maintain nor generally have access to the current balances and loan performance data with respect to the individual loans previously sold to investors. Accordingly, LendingTree Loans is unable to determine, with precision, its maximum exposure for breaches of the representations and warranties it made to the investors that purchased such loans. The Company uses a settlement discount framework for evaluating the adequacy of the reserve for loan losses. This model estimates lifetime losses on the population of remaining loans originated and sold by LendingTree Loans using actual defaults for loans with similar characteristics and projected future defaults. It also considers the likelihood of claims expected due to alleged breaches of representations and warranties made by LendingTree Loans and the percentage of those claims investors estimate LendingTree Loans may agree to repurchase. A settlement discount factor is then applied to the result of the foregoing to reflect publicly-announced bulk settlements for similar loan types and vintages, as well as LendingTree Loans' non-operating status, in order to estimate a range of potential obligation. The estimated range of remaining loan losses using this settlement discount framework was determined to be $6.0 million to $10.2 million at September 30, 2015 . The reserve balance recorded as of September 30, 2015 was $8.8 million . Management has considered both objective and subjective factors in the estimation process, but given current general industry trends in mortgage loans as well as housing prices and market expectations, actual losses related to LendingTree Loans' obligations could vary significantly from the obligation recorded as of the balance sheet date or the range estimated above. Additionally, LendingTree has guaranteed certain loans sold to two investors in the event that LendingTree Loans is unable to satisfy its repurchase and warranty obligations related to such loans. Based on historical experience, it is anticipated that LendingTree Loans will continue to receive repurchase requests and incur losses on loans sold in prior years. The activity related to loss reserves on previously sold loans is as follows (in thousands) : Three Months Ended Nine Months Ended 2015 2014 2015 2014 Loan loss reserve, beginning of period $ 8,750 $ 28,390 $ 8,750 $ 28,543 Provisions — — — — Charge-offs to reserves — — — (153 ) Loan loss reserve, end of period $ 8,750 $ 28,390 $ 8,750 $ 28,390 The liability for losses on previously sold loans is presented as current liabilities of discontinued operations in the accompanying consolidated balance sheet as of September 30, 2015 and December 31, 2014 .

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS Senior Secured Revolving Credit Facility On October 22, 2015, the Company's wholly-owned subsidiary, LendingTree, LLC, entered into a $125.0 million five -year senior secured revolving credit facility which matures on October 22, 2020 (the “Revolving Credit Facility”). The proceeds of the Revolving Credit Facility can be used to finance the working capital needs, capital expenditures and general corporate purposes, including to finance permitted acquisitions. As of October 26, 2015, the Company does not have any borrowings outstanding under the Revolving Credit Facility. Up to $10.0 million of the Revolving Credit Facility will be available for short-term loans, referred to as swingline loans. Additionally, up to $10.0 million of the Revolving Credit Facility will be available for the issuance of letters of credit. Under certain conditions, the Company will be permitted to add one or more term loans and/or increase revolving commitments under the Revolving Credit Facility up to an aggregate amount of $50.0 million . The Company’s borrowings under the Revolving Credit Facility bear interest at annual rates that, at the Company’s option, will be either: • a base rate generally defined as the sum of (i) the greater of (a) the prime rate of SunTrust Bank , (b) the federal funds effective rate plus 0.5% and (c) the LIBO rate (defined below) on a daily basis applicable for an interest period of one month plus 1.0% and (ii) an applicable percentage of 1.0% to 2.0% based on the funded debt to consolidated EBITDA ratio; or • a LIBO rate generally defined as the sum of (i) the rate for Eurodollar deposits in the applicable currency and (ii) an applicable percentage of 2.0% to 3.0% based on the funded debt to consolidated EBITDA ratio. All swingline loans bear interest at the base rate defined above. Interest on the Company’s borrowings are payable quarterly in arrears for base rate loans and on the last day of each interest rate period (but not less often than three months) for LIBO rate loans. The Revolving Credit Facility contains certain restrictive financial covenants, which include a consolidated debt to EBITDA ratio and a consolidated EBITDA to interest expense ratio. In addition, the Revolving Credit Facility contains customary affirmative and negative covenants in addition to events of default for a transaction of this type that, among other things, restrict additional indebtedness, liens, mergers or certain fundamental changes, asset dispositions, dividends and other restricted payments, transactions with affiliates, sale-leaseback transactions, hedging transactions, loans and investments and other matters customarily restricted in such agreements. The Revolving Credit Facility requires LendingTree, LLC to pledge as collateral, subject to certain customary exclusions, 100% of its assets, including 100% of its equity in all of its subsidiaries. The obligations under this facility are unconditionally guaranteed on a senior basis by LendingTree, Inc. and specific subsidiaries of LendingTree, LLC, which guaranties are secured by a pledge as collateral, subject to certain customary exclusions, of 100% of each of such guarantor's assets, including 100% of its equity in all of its subsidiaries. The Company is required to pay an unused commitment fee quarterly in arrears on the difference between committed amounts and amounts actually borrowed under the Revolving Credit Facility equal to an applicable percentage of 0.25% to 0.5% per annum based on a consolidated debt to EBITDA ratio. The Company is required to pay a letter of credit participation fee and a letter of credit fronting fee quarterly in arrears. The letter of credit participation fee is based upon the aggregate face amount of outstanding letters of credit at an applicable percentage of 2.0% to 3.0% based on the consolidated debt to EBITDA ratio. The letter of credit fronting fee is .125% per annum on the face amount of each letter of credit. The Company paid $1.1 million in fees and expenses to the lenders at the time of closing in October 2015.

SIGNIFICANT ACCOUNTING POLICI21

SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Accounting Estimates	Accounting Estimates Management is required to make certain estimates and assumptions during the preparation of the consolidated financial statements in accordance with GAAP. These estimates and assumptions impact the reported amount of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. They also impact the reported amount of net earnings during any period. Actual results could differ from those estimates. Significant estimates underlying the accompanying consolidated financial statements, including discontinued operations, include: loan loss obligations; the recoverability of long-lived assets, goodwill and intangible assets; the determination of income taxes payable and deferred income taxes, including related valuation allowances; contingent consideration related to business combinations; litigation accruals; various other allowances, reserves and accruals; and assumptions related to the determination of stock-based compensation.
Certain Risks and Concentrations	Certain Risks and Concentrations LendingTree's business is subject to certain risks and concentrations including dependence on third-party technology providers, exposure to risks associated with online commerce security and credit card fraud. Financial instruments, which potentially subject the Company to concentration of credit risk at September 30, 2015 , consist primarily of cash and cash equivalents and accounts receivable, as disclosed in the consolidated balance sheet. Cash and cash equivalents are in excess of Federal Deposit Insurance Corporation insurance limits, but are maintained with quality financial institutions of high credit. The Company generally requires certain marketplace lenders to maintain security deposits with the Company, which in the event of non-payment, would be applied against any accounts receivable outstanding. Due to the nature of the mortgage lending industry, interest rate increases may negatively impact future revenue from the Company's lender marketplace. Lenders participating on the Company's marketplace can offer their products directly to consumers through brokers, mass marketing campaigns or through other traditional methods of credit distribution. These lenders can also offer their products online, either directly to prospective borrowers, through one or more online competitors, or both. If a significant number of potential consumers are able to obtain loans from participating lenders without utilizing the Company's services, the Company's ability to generate revenue may be limited. Because the Company does not have exclusive relationships with the lenders whose loan offerings are offered on its online marketplace, consumers may obtain offers and loans from these lenders without using its service. The Company maintains operations solely in the United States.
Litigation Settlements and Contingencies	Litigation Settlements and Contingencies Litigation settlements and contingencies consists of expenses related to actual or anticipated litigation settlements, in addition to legal fees incurred in connection with various patent litigation claims the Company pursues against others.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-05 related to cloud computing arrangements. This ASU sets forth guidance on accounting for fees paid in a cloud computing arrangement and specifically outlines how to determine whether a cloud computing arrangement contains a software license or is solely a service contract. This ASU will be effective for annual and interim reporting periods beginning after December 15, 2015 and permits early adoption. The Company early adopted this ASU and it did not have a significant impact on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09 related to revenue recognition. This ASU was initiated as a joint project between the FASB and the International Accounting Standards Board ("IASB") to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and international financial reporting standards ("IFRS"). This guidance will supersede the existing revenue recognition requirements in Accounting Standards Codification ("ASC") Topic 605, Revenue Recognition and was set to be effective for annual reporting periods beginning after December 15, 2016. However, in July 2015, the FASB deferred the effective date by one year, such that the standard will be effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted as of the original effective date of December 15, 2016. The ASU can be applied (i) retrospectively to each prior period presented or (ii) retrospectively with the cumulative effect of initially adopting the ASU recognized at the date of initial application. The Company is evaluating the impact this ASU will have on its consolidated financial statements and whether to adopt early.

RESTRICTED CASH RESTRICTED CASH

RESTRICTED CASH RESTRICTED CASH (Tables)	9 Months Ended
	Sep. 30, 2015
Cash and Cash Equivalents [Abstract]
Schedule of Restricted Cash and Cash Equivalents	Restricted cash and cash equivalents consists of the following (in thousands) : September 30, December 31, Cash in escrow for surety bonds (a) $ 2,453 $ 2,453 Cash in escrow for corporate purchasing card program — 100 Cash in escrow from sale of LendingTree Loans (b) 16,107 16,106 Other 61 57 Total restricted cash and cash equivalents $ 18,621 $ 18,716 (a) State laws and regulations generally require businesses which engage in mortgage brokering activity to maintain a mortgage broker or similar license. Mortgage brokering activity is generally defined to include, among other things, receiving valuable consideration for offering assistance to a buyer in obtaining a residential mortgage or soliciting financial and mortgage information from the public and providing that information to an originator of residential mortgage loans. All states require that the Company maintain surety bonds for potential claims. (b) Home Loan Center, Inc. ("HLC"), a subsidiary of the Company, continues to be liable for certain indemnification obligations, repurchase obligations and premium repayment obligations following the sale of substantially all of the operating assets of its LendingTree Loans business in the second quarter of 2012. As a result of a settlement agreement in 2014 with a secondary market purchaser of loans, $12.1 million of cash in escrow is expected to be released in December 2015.

GOODWILL AND INTANGIBLE ASSET23

GOODWILL AND INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of balance of goodwill and intangible assets, net	The balance of goodwill and intangible assets, net is as follows (in thousands) : September 30, December 31, Goodwill $ 486,720 $ 486,720 Accumulated impairment losses (483,088 ) (483,088 ) Net goodwill $ 3,632 $ 3,632 Intangible assets with indefinite lives $ 10,142 $ 10,142 Intangible assets with definite lives, net 875 999 Total intangible assets, net $ 11,017 $ 11,141
Schedule of intangible assets with definite lives	Intangible assets with definite lives relate to the following (in thousands) : Cost Accumulated Amortization Net Customer lists $ 1,049 $ (174 ) $ 875 Other 1,087 (1,087 ) — Balance at September 30, 2015 $ 2,136 $ (1,261 ) $ 875 Cost Accumulated Amortization Net Customer lists $ 1,049 $ (50 ) $ 999 Other 1,087 (1,087 ) — Balance at December 31, 2014 $ 2,136 $ (1,137 ) $ 999
Schedule of amortization of intangible assets with definite lives for the next five years	Amortization of intangible assets with definite lives is computed on a straight-line basis and, based on balances as of September 30, 2015 , future amortization is estimated to be as follows (in thousands) : Amortization Expense Remainder of current year $ 25 Year ending December 31, 2016 100 Year ending December 31, 2017 100 Year ending December 31, 2018 100 Year ending December 31, 2019 100 Thereafter 450 Total intangible assets with definite lives, net $ 875

ACCRUED EXPENSES AND OTHER CU24

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2015
Payables and Accruals [Abstract]
Schedule of accrued expenses and other current liabilities	Accrued expenses and other current liabilities consist of the following (in thousands) : September 30, December 31, Accrued litigation liabilities $ 636 $ 2,786 Accrued advertising expense 22,200 11,170 Accrued compensation and benefits 3,838 2,666 Accrued professional fees 734 337 Accrued restructuring costs — 178 Customer deposits and escrows 4,755 4,560 Deferred rent 2 162 Other 4,009 3,662 Total accrued expenses and other current liabilities $ 36,174 $ 25,521

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Schedule of computation of weighted average diluted shares	Basic and diluted income (loss) per share was determined based on the following share data (in thousands) : Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Weighted average basic common shares 11,445 11,182 11,378 11,180 Effect of stock options 891 471 841 — Effect of dilutive share awards 153 183 160 — Weighted average diluted common shares 12,489 11,836 12,379 11,180

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of non-cash compensation expense related to equity awards	Non-cash compensation related to equity awards is included in the following line items in the accompanying consolidated statements of operations and comprehensive income (in thousands) : Three Months Ended Nine Months Ended 2015 2014 2015 2014 Cost of revenue $ 24 $ 11 $ 68 $ 24 Selling and marketing expense 425 205 1,080 664 General and administrative expense 1,178 1,292 3,909 3,281 Product development 351 278 1,176 854 Restructuring and severance — — 138 36 Total non-cash compensation $ 1,978 $ 1,786 $ 6,371 $ 4,859
Summary of changes in outstanding stock options	A summary of changes in outstanding stock options is as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (a) (per option) (in years) (in thousands) Options outstanding at January 1, 2015 2,136,679 $ 18.16 Granted (b) 44,635 66.68 Exercised (134,515 ) 17.51 Forfeited (127,439 ) 26.84 Expired (1,339 ) 7.88 Options outstanding at September 30, 2015 1,918,021 18.76 6.15 $ 142,596 Options exercisable at September 30, 2015 934,288 $ 8.53 3.70 $ 78,944 (a) The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company's closing stock price of $93.03 on the last trading day of the quarter ended September 30, 2015 and the exercise price, multiplied by the number of shares covered by in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2015 . The intrinsic value changes based on the market value of the Company's common stock. (b) During the nine months ended September 30, 2015 , the Company granted stock options to certain employees and the board of directors with a weighted average grant date fair value per share of $26.71 , which vesting periods include (a) three years from the grant date, (b) 25% and 75% over a period of 1.67 years and 2.67 years , respectively, (c) one year from the grant date and (d) two years from the grant date.
Schedule of stock option valuation assumptions	For purposes of determining stock-based compensation expense, the weighted average grant date fair value per share of the stock options was estimated using the Black-Scholes option pricing model, which requires the use of various key assumptions. The weighted average assumptions used are as follows: Expected term (1) 5.50 - 6.23 years Expected dividend (2) — Expected volatility (3) 37.51% - 42.46% Risk-free interest rate (4) 1.65% - 2.01% (1) The expected term of stock options granted was calculated using the 'Simplified Method', which utilizes the midpoint between the weighted average time of vesting and the end of the contractual term. This method was utilized for the stock options due to a lack of historical exercise behavior by the Company's employees. (2) For all stock options granted in 2015 , no dividends are expected to be paid over the contractual term of the stock options, resulting in a zero expected dividend rate. (3) The expected volatility rate is based on the historical volatility of the Company's common stock. (4) The risk-free interest rate is specific to the date of grant. The risk-free interest rate is based on U.S. Treasury yields for notes with comparable expected terms as the awards, in effect at the grant date.
Schedule of changes in outstanding non-vested RSUs and restricted stock	A summary of the changes in outstanding nonvested restricted stock units ("RSUs") and restricted stock is as follows: RSUs Number of Units Weighted Average Grant Date Fair Value (per unit) Nonvested at January 1, 2015 351,801 $ 22.83 Granted 94,310 65.57 Vested (176,914 ) 20.31 Forfeited (27,788 ) 32.37 Nonvested at September 30, 2015 241,409 $ 40.29 Restricted Stock Number of Shares Weighted Average Grant Date Fair Value (per share) Nonvested at January 1, 2015 123,057 $ 23.41 Granted — — Vested (35,295 ) 20.62 Forfeited — — Nonvested at September 30, 2015 87,762 $ 24.54

INCOME TAXES (Tables)

INCOME TAXES (Tables)	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Schedule of income tax (expense) benefit	Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in thousands, except percentages) Income tax (expense) benefit $ (389 ) $ 2 $ (968 ) $ 86 Effective tax rate 5.0 % 0.4 % 4.8 % 3.2 %

COMMITMENTS COMMITMENTS (Tables

COMMITMENTS COMMITMENTS (Tables)	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	Amount Remainder of current year $ 68 Year ending December 31, 2016 1,217 Year ending December 31, 2017 1,036 Year ending December 31, 2018 995 Year ending December 31, 2019 1,025 Thereafter 1,055 Total $ 5,396

SEGMENT INFORMATION SEGMENT INF

SEGMENT INFORMATION SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Schedule of mortgage and non-mortgage product revenue	Mortgage and non-mortgage product revenue is as follows (in thousands) : Three Months Ended Nine Months Ended 2015 2014 2015 2014 Mortgage products $ 44,171 $ 32,026 $ 118,367 $ 100,936 Non-mortgage products 25,633 9,280 57,508 22,550 Total revenue $ 69,804 $ 41,306 $ 175,875 $ 123,486

RESTRUCTURING EXPENSE (Tables)

RESTRUCTURING EXPENSE (Tables)	9 Months Ended
	Sep. 30, 2015
Restructuring and Related Activities [Abstract]
Schedule of restructuring expense and payments against liabilities	Restructuring expense and payments against liabilities are as follows (in thousands) : Continuing Lease Obligations Balance at December 31, 2014 $ 178 Restructuring income (29 ) Payments (149 ) Balance at September 30, 2015 $ —

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	9 Months Ended
	Sep. 30, 2015
DISCONTINUED OPERATIONS
Schedule of revenue and net income (loss) of the discontinued operations	The revenue and net loss reported as discontinued operations in the accompanying consolidated statements of operations and comprehensive income are as follows (in thousands) : Three Months Ended Nine Months Ended 2015 2014 2015 2014 Revenue $ 1 $ 114 $ 4 $ 118 Loss before income taxes $ (1,343 ) $ (175 ) $ (3,369 ) $ (3,676 ) Income tax benefit (expense) 48 1 131 (3 ) Net loss $ (1,295 ) $ (174 ) $ (3,238 ) $ (3,679 )
Lending Tree Loans
DISCONTINUED OPERATIONS
Schedule of activity related to loss reserves on previously sold loans	The activity related to loss reserves on previously sold loans is as follows (in thousands) : Three Months Ended Nine Months Ended 2015 2014 2015 2014 Loan loss reserve, beginning of period $ 8,750 $ 28,390 $ 8,750 $ 28,543 Provisions — — — — Charge-offs to reserves — — — (153 ) Loan loss reserve, end of period $ 8,750 $ 28,390 $ 8,750 $ 28,390

RESTRICTED CASH RESTRICTED CA32

RESTRICTED CASH RESTRICTED CASH (Details - Balance Sheet) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Dec. 31, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2015	Dec. 31, 2013
Restricted Cash and Cash Equivalents
Cash and cash equivalents	$ 86,212	$ 106,251	$ 83,631		$ 91,667
Restricted cash and cash equivalents	18,716	18,621
Decrease (increase) in Restricted Cash		95	$ 4,143
Cash in Escrow for Surety Bonds
Restricted Cash and Cash Equivalents
Restricted cash and cash equivalents	2,453	2,453
Cash in Escrow for Corporate Purchasing Card Program
Restricted Cash and Cash Equivalents
Restricted cash and cash equivalents	100	0
Cash in escrow for sale of LendingTree Loans
Restricted Cash and Cash Equivalents
Restricted cash and cash equivalents	16,106	16,107
Other Restricted Cash and Cash Equivalents
Restricted Cash and Cash Equivalents
Restricted cash and cash equivalents	57	61
Cash Restricted for Loan Loss Obligations
Restricted Cash and Cash Equivalents
Decrease (increase) in Restricted Cash	$ (3,100)
Discover | Lending Tree Loans
Restricted Cash and Cash Equivalents
Restricted cash and cash equivalents		$ 16,100
Scenario, Forecast [Member] | Discover | Lending Tree Loans
Restricted Cash and Cash Equivalents
Cash and cash equivalents				$ 12,100

GOODWILL AND INTANGIBLE ASSET33

GOODWILL AND INTANGIBLE ASSETS (Details - Balance Sheet) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 486,720	$ 486,720
Accumulated impairment losses	(483,088)	(483,088)
Net goodwill	3,632	3,632
Intangible assets with indefinite lives	10,142	10,142
Intangible assets with definite lives, net	875	999
Total intangible assets, net	$ 11,017	$ 11,141

GOODWILL AND INTANGIBLE ASSET34

GOODWILL AND INTANGIBLE ASSETS (Details - Definite Lived Intangibles) - USD ($)	Jun. 30, 2014	Mar. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Intangible assets with definite lives
Cash consideration on acquisition date	$ 600,000
Contingent consideration range, minimum	0
Contingent consideration range, maximum	800,000
Intangible assets acquired	1,000,000
Contingent consideration on acquisition date	$ 400,000
Cost			$ 2,136,000	$ 2,136,000
Accumulated amortization			(1,261,000)	(1,137,000)
Total intangible assets with definite lives, net			875,000	999,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	10 years
Contingent consideration reduction		$ 100,000
Customer lists
Intangible assets with definite lives
Cost			1,049,000	1,049,000
Accumulated amortization			(174,000)	(50,000)
Total intangible assets with definite lives, net			875,000	999,000
Other
Intangible assets with definite lives
Cost			1,087,000	1,087,000
Accumulated amortization			(1,087,000)	(1,087,000)
Total intangible assets with definite lives, net			$ 0	$ 0

GOODWILL AND INTANGIBLE ASSET35

GOODWILL AND INTANGIBLE ASSETS (Details - 5yr Definite Lived Intangibles Amortization) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Amortization of intangible assets with definite lives computed on a straight-line basis
Remainder of current year	$ 25
2,016	100
2,017	100
2,018	100
2,019	100
Thereafter	450
Total intangible assets with definite lives, net	$ 875	$ 999

ACCRUED EXPENSES AND OTHER CU36

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details - Balance Sheet) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Accrued expenses and other current liabilities
Accrued litigation liability	$ 636	$ 2,786
Accrued advertising expense	22,200	11,170
Accrued compensation and benefits	3,838	2,666
Accrued professional fees	734	337
Accrued restructuring costs	0	178
Customer deposits and escrows	4,755	4,560
Deferred rent	2	162
Other	4,009	3,662
Total accrued expenses and other current liabilities	$ 36,174	$ 25,521

SHAREHOLDERS' EQUITY (Details)

SHAREHOLDERS' EQUITY (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	May. 07, 2014	Jan. 11, 2010
Calculation of weighted average common shares
Weighted average common shares, basic	11,445,000	11,182,000	11,378,000	11,180,000
Effect of dilutive securities
Effect of stock options (in shares)	891,000	471,000	841,000	0
Effect of dilutive share awards (in shares)	153,000	183,000	160,000	0
Weighted average common shares, diluted	12,489,000	11,836,000	12,379,000	11,180,000
Anti-dilutive securities excluded from calculation of diluted earnings per share (in shares)		100,000	0	700,000
Common stock repurchases
Value of common stock authorized to be repurchased					$ 10,000,000	$ 10,000,000
Purchase of treasury stock (in shares)	0		5,250
Remaining authorized repurchase amount	$ 7,300,000		$ 7,300,000

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details - P&L Impact) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Non-cash compensation expense related to equity awards
Total non-cash compensation	$ 1,978	$ 1,786	$ 6,371	$ 4,859
Cost of revenue
Non-cash compensation expense related to equity awards
Total non-cash compensation	24	11	68	24
Selling and marketing expense
Non-cash compensation expense related to equity awards
Total non-cash compensation	425	205	1,080	664
General and administrative expense
Non-cash compensation expense related to equity awards
Total non-cash compensation	1,178	1,292	3,909	3,281
Product development
Non-cash compensation expense related to equity awards
Total non-cash compensation	351	278	1,176	854
Restructuring and severance
Non-cash compensation expense related to equity awards
Total non-cash compensation	$ 0	$ 0	$ 138	$ 36

STOCK-BASED COMPENSATION (Det39

STOCK-BASED COMPENSATION (Details - Stock Options Rollforward) - USD ($)	3 Months Ended	6 Months Ended	9 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2015
STOCK-BASED COMPENSATION
Share Price	$ 93.03		$ 93.03
Stock options, Grant Date Fair Value Valuation
Grant date fair value			$ 26.71
Aggregate stock options
Stock options, Shares
Outstanding at the beginning of the period (in shares)		2,136,679	2,136,679
Granted (in shares)			44,635
Exercised (in shares)			(134,515)
Forfeited (in shares)			(127,439)
Expired (in shares)			(1,339)
Outstanding at the end of the period (in shares)	1,918,021		1,918,021
Options exercisable at the end of the period (in shares)	934,288		934,288
Stock options, Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)		$ 18.16	$ 18.16
Granted (in dollars per share)			66.68
Exercised (in dollars per share)			17.51
Forfeited (in dollars per share)			26.84
Expired (in dollars per share)			7.88
Outstanding at the end of the period (in dollars per share)	$ 18.76		18.76
Options exercisable at the end of the period (in dollars per share)	$ 8.53		$ 8.53
Stock options, Weighted Average Remaining Contractual Term
Outstanding at the end of the period			6 years 1 month 25 days
Options exercisable at the end of the period			3 years 8 months 12 days
Stock options, Aggregate Intrinsic Value
Outstanding at the end of the period	$ 142,596,000		$ 142,596,000
Options exercisable at the end of the period	$ 78,944,000		78,944,000
Stock options, Grant Date Fair Value Valuation
Expected dividends			$ 0
Expected dividend rate			0.00%
Expected volatility, minimum			37.51%
Expected volatility, maximum			42.46%
Risk-free interest rate, minimum			1.65%
Risk-free interest rate, maximum			2.01%
Stock options
Stock options, Grant Date Fair Value Valuation
Vesting period	1 year		3 years
Director Stock Option [Member]
Stock options, Grant Date Fair Value Valuation
Vesting period			2 years
Minimum | Aggregate stock options
Stock options, Grant Date Fair Value Valuation
Expected term			P5Y6M
Minimum | Stock options
Stock options, Grant Date Fair Value Valuation
Grant date fair value
Maximum | Aggregate stock options
Stock options, Grant Date Fair Value Valuation
Expected term			P6Y2M22D
Maximum | Stock options
Stock options, Grant Date Fair Value Valuation
Grant date fair value
Share-based Compensation Award, Tranche One [Member] | Stock options
Stock options, Grant Date Fair Value Valuation
Vesting period			1 year 8 months 2 days
Award Vesting Rights, Percentage			25.00%
Share-based Compensation Award, Tranche Two [Member] | Stock options
Stock options, Grant Date Fair Value Valuation
Vesting period			2 years 8 months 2 days
Award Vesting Rights, Percentage			75.00%

STOCK-BASED COMPENSATION (Det40

STOCK-BASED COMPENSATION (Details - RSA & RSU Rollforwards)	9 Months Ended
	Sep. 30, 2015$ / sharesshares
RSUs
Nonvested RSUs and Restricted Stock, Number of Shares
Nonvested at the beginning of the period (in shares)	351,801
Granted (in shares)	94,310
Vested (in shares)	(176,914)
Forfeited (in shares)	(27,788)
Nonvested at the end of the period (in shares)	241,409
Nonvested RSUs and Restricted Stock, Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share) | $ / shares	$ 22.83
Granted (in dollars per share) | $ / shares	65.57
Vested (in dollars per share) | $ / shares	20.31
Forfeited (in dollars per share) | $ / shares	32.37
Nonvested at the end of the period (in dollars per share) | $ / shares	$ 40.29
Restricted stock
Nonvested RSUs and Restricted Stock, Number of Shares
Nonvested at the beginning of the period (in shares)	123,057
Granted (in shares)	0
Vested (in shares)	(35,295)
Nonvested at the end of the period (in shares)	87,762
Nonvested RSUs and Restricted Stock, Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share) | $ / shares	$ 23.41
Granted (in dollars per share) | $ / shares	0
Vested (in dollars per share) | $ / shares	20.62
Nonvested at the end of the period (in dollars per share) | $ / shares	$ 24.54

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Income tax (expense) benefit	$ (389)	$ 2	$ (968)	$ 86
Effective tax rates (as a percent)	5.00%	0.40%	4.80%	3.20%

COMMITMENTS COMMITMENTS (Detail

COMMITMENTS COMMITMENTS (Details) $ in Thousands	Sep. 30, 2015USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of current year	$ 68
Year ending December 31, 2016	1,217
Year ending December 31, 2017	1,036
Year ending December 31, 2018	995
Year ending December 31, 2019	1,025
Thereafter	1,055
Operating Leases, Future Minimum Payments Due, Total	$ 5,396

CONTINGENCIES (Details)

CONTINGENCIES (Details)	Oct. 20, 2015regulator	Oct. 14, 2011regulator	Sep. 08, 2010patent	Jul. 31, 2015USD ($)	Jul. 31, 2014USD ($)	Jun. 30, 2015USD ($)	Dec. 31, 2014USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Mar. 12, 2014patent
Contingencies
Accrued litigation liability							$ 2,786,000	$ 636,000
Massachusetts Division of Banks [Member] | Unfavorable regulatory action
Contingencies
Accrued litigation liability								500,000
Range of possible loss, minimum								500,000
Range of possible loss, maximum								6,500,000
Number of Joining Regulators | regulator		34
Massachusetts Division of Banks [Member] | Unfavorable regulatory action | Subsequent Event [Member]
Contingencies
Number of Joining Regulators | regulator	0
Pending litigation or appeal | Lijkel Dijkstra v. Harry Carenbauer, Home Loan Center, Inc
Contingencies
Accrued litigation liability								3,200,000
Litigation loss				$ 389,500	$ 2,800,000
Pending litigation or appeal | Lending Tree v. Zillow, Inc.
Contingencies
Accrued litigation liability								0
Number of patents found not infringed upon | patent										2
Litigation loss						$ 1,100,000	$ 2,300,000
Range of possible loss, maximum									$ 9,700,000
Number of patents alleged infringement upon, maximum | patent			2
Pending litigation or appeal | Lehman Brothers Holdings, Inc. Demand Letter [Member]
Contingencies
Accrued litigation liability								$ 500,000

SEGMENT INFORMATION SEGMENT I44

SEGMENT INFORMATION SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment Information
Revenue	$ 69,804	$ 41,306	$ 175,875	$ 123,486
Mortgage Products [Member]
Segment Information
Revenue	44,171	32,026	118,367	100,936
Non-mortgage Products [Member]
Segment Information
Revenue	$ 25,633	$ 9,280	$ 57,508	$ 22,550

RESTRUCTURING EXPENSE (Details)

RESTRUCTURING EXPENSE (Details) - Continuing Lease Obligations $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Changes in restructuring expenses
December 31, 2014	$ 178
Restructuring income	(29)
Payments	(149)
September 30, 2015	$ 0

DISCONTINUED OPERATIONS (Detail

DISCONTINUED OPERATIONS (Details-Disposal Groups) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Jun. 06, 2012
DISCONTINUED OPERATIONS
Cash and cash equivalents	$ 106,251	$ 83,631	$ 106,251	$ 83,631		$ 86,212	$ 91,667
Revenue and net income (loss) of discontinued operations
Revenue	1	114	4	118
Loss before income taxes	(1,343)	(175)	(3,369)	(3,676)
Income tax benefit (expense)	48	1	131	(3)
Loss from discontinued operations	(1,295)	$ (174)	(3,238)	$ (3,679)
Assets and liabilities of facilities reported as discontinued operations
Current assets	289		289			189
Non-current assets of discontinued operations	0		0			100
Current liabilities	(14,529)		(14,529)			(12,055)
Non-current liabilities	$ (31)		$ (31)			$ (151)
Lending Tree Loans | Discover
DISCONTINUED OPERATIONS
Asset Purchase Agreement Proceeds From Sale								$ 55,900
Scenario, Forecast [Member] | Lending Tree Loans | Discover
DISCONTINUED OPERATIONS
Cash and cash equivalents					$ 12,100

DISCONTINUED OPERATIONS (Deta47

DISCONTINUED OPERATIONS (Details - Loan Loss Obligations)	Oct. 15, 2015USD ($)	Jun. 07, 2012	Sep. 30, 2015USD ($)	Dec. 31, 2014USD ($)	Sep. 30, 2014USD ($)	Jun. 30, 2012USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)investor	Dec. 31, 2014USD ($)	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2014USD ($)	Sep. 30, 2014USD ($)	Dec. 31, 2013USD ($)	Jun. 06, 2012USD ($)loan
Loan Loss Obligations
Restricted cash and cash equivalents											$ 18,621,000	$ 18,716,000
Cash and cash equivalents											106,251,000	86,212,000	$ 83,631,000	$ 91,667,000
Increase (Decrease) in Restricted Cash							$ (95,000)	$ (4,143,000)
Cash and Cash Equivalents, Period Increase (Decrease)							20,039,000	$ (8,036,000)
Lending Tree Loans | Discontinued operations
Loan Loss Obligations
Number of investors to whom loans are guaranteed | investor								2
Loan loss obligations | Lending Tree Loans
Loan Loss Obligations
Number of loans sold with losses | loan															234,000
Original principal balance of loans sold															$ 38,900,000,000
Settlement value of indemnification claim and other miscellaneous items				$ 5,400,000					$ 14,100,000
Loan loss obligations | Lending Tree Loans | Discontinued operations
Loan Loss Obligations
Loss Contingencies, Settlement, Number of Buyers of Previously Purchased Limited Documentation Loans						2
Estimated range of remaining possible losses due to loan losses, minimum											6,000,000
Estimated range of remaining possible losses due to loan losses, maximum											10,200,000
Loan loss reserve, at carrying value			$ 8,750,000	28,390,000	$ 28,390,000		8,750,000	$ 28,543,000	28,543,000		8,750,000	$ 8,750,000	$ 28,390,000	$ 28,543,000
Activity related to loss reserves on previously sold loans
Loan loss reserve, beginning of period			8,750,000	28,390,000	28,390,000		8,750,000	28,543,000	28,543,000
Provisions			0		0		0	0
Charge-offs to reserves			0		0		0	(153,000)
Loan loss reserve, end of period			$ 8,750,000	8,750,000	$ 28,390,000		$ 8,750,000	$ 28,390,000	$ 8,750,000
Discover Bank | Lending Tree Loans
Loan Loss Obligations
Restricted cash and cash equivalents											$ 16,100,000
Scenario, Forecast [Member] | Discover Bank | Lending Tree Loans
Loan Loss Obligations
Cash and cash equivalents										$ 12,100,000
Cash Restricted for Loan Loss Obligations
Loan Loss Obligations
Increase (Decrease) in Restricted Cash				3,100,000
Cash and Cash Equivalents, Period Increase (Decrease)				$ 2,300,000
Investor One [Member] | Loan loss obligations | Lending Tree Loans
Loan Loss Obligations
Loss Contingencies, Number of Loans Sold to one investor		10.00%
Loss Contingencies, Percentage of the Original Loan Issue Balance		12.00%
Investor Two [Member] | Loan loss obligations | Lending Tree Loans
Loan Loss Obligations
Loss Contingencies, Number of Loans Sold to one investor		40.00%
Subsequent Event [Member] | Loan loss obligations | Lending Tree Loans
Loan Loss Obligations
Settlement value of indemnification claim and other miscellaneous items	$ 600,000

SUBSEQUENT EVENTS SUBSEQUENT EV

SUBSEQUENT EVENTS SUBSEQUENT EVENTS (Details) - Subsequent Event [Member]	Oct. 22, 2015USD ($)
Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Revolving Credit Facility, current borrowing capacity	$ 125,000,000
Revolving Credit Facility, term	5 years
Revolving Credit Facility, conditional increase to borrowing capacity	$ 50,000,000
Revolving Credit Facility, collateral, percent of assets	100.00%
Revolving Credit Facility, collateral, percent of equity	100.00%
Revolving Credit Facility, letter of credit fronting fee percentage	0.125%
Fees and expense paid to lenders at closing	$ 1,100,000
Revolving Credit Facility [Member] | Minimum
Subsequent Event [Line Items]
Revolving Credit Facility, unused capacity, commitment fee percentage	0.25%
Revolving Credit Facility, letter of credit participation fee percentage	2.00%
Revolving Credit Facility [Member] | Maximum
Subsequent Event [Line Items]
Revolving Credit Facility, unused capacity, commitment fee percentage	0.50%
Revolving Credit Facility, letter of credit participation fee percentage	3.00%
Revolving Credit Facility [Member] | Federal Funds Effective Swap Rate [Member]
Subsequent Event [Line Items]
Revolving Credit Facility, basis spread on variable rate	0.50%
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Subsequent Event [Line Items]
Revolving Credit Facility, basis spread on variable rate	1.00%
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum
Subsequent Event [Line Items]
Revolving Credit Facility, basis spread on variable rate	2.00%
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum
Subsequent Event [Line Items]
Revolving Credit Facility, basis spread on variable rate	3.00%
Revolving Credit Facility [Member] | Base Rate [Member] | Minimum
Subsequent Event [Line Items]
Revolving Credit Facility, basis spread on variable rate	1.00%
Revolving Credit Facility [Member] | Base Rate [Member] | Maximum
Subsequent Event [Line Items]
Revolving Credit Facility, basis spread on variable rate	2.00%
Swingline Facility [Member]
Subsequent Event [Line Items]
Revolving Credit Facility, current borrowing capacity	$ 10,000,000
Letters of Credit [Member]
Subsequent Event [Line Items]
Revolving Credit Facility, current borrowing capacity	$ 10,000,000