DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 06, 2018 | |
Entity Registrant Name | Match Group, Inc. | |
Entity Central Index Key | 1,575,189 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock | ||
Entity Common Stock, Shares Outstanding | 66,974,473 | |
Class B Convertible Common Stock | ||
Entity Common Stock, Shares Outstanding | 209,919,402 | |
Class C Common Stock | ||
Entity Common Stock, Shares Outstanding | 0 |
CONSOLIDATED BALANCE SHEET (Una
CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 309,761 | $ 272,624 |
Accounts receivable, net of allowance of $778 and $778, respectively | 126,217 | 116,751 |
Other current assets | 72,255 | 55,369 |
Total current assets | 508,233 | 444,744 |
Property and equipment, net of accumulated depreciation and amortization of $117,045 and $108,860, respectively | 58,976 | 61,620 |
Goodwill | 1,259,195 | 1,247,644 |
Intangible assets, net of accumulated amortization of $11,173 and $11,653, respectively | 228,446 | 230,345 |
Deferred income taxes | 137,044 | 123,199 |
Long-term investments | 10,158 | 11,137 |
Other non-current assets | 14,180 | 11,457 |
TOTAL ASSETS | 2,216,232 | 2,130,146 |
LIABILITIES | ||
Accounts payable | 11,553 | 10,112 |
Deferred revenue | 212,482 | 198,095 |
Accrued expenses and other current liabilities | 106,934 | 110,566 |
Total current liabilities | 330,969 | 318,773 |
Long-term debt, net | 1,254,265 | 1,252,696 |
Income taxes payable | 7,278 | 8,410 |
Deferred income taxes | 28,218 | 28,478 |
Other long-term liabilities | 13,085 | 14,484 |
Redeemable noncontrolling interests | 6,064 | 6,056 |
Commitments and contingencies | ||
SHAREHOLDERS’ EQUITY | ||
Preferred stock; $0.001 par value; authorized 500,000,000 shares; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | (568) | 81,082 |
Retained earnings | 764,447 | 532,211 |
Accumulated other comprehensive loss | (120,996) | (112,318) |
Treasury stock 1,852,511 and 0 shares, respectively | (79,806) | 0 |
Total Match Group, Inc. shareholders’ equity | 563,356 | 501,249 |
Noncontrolling interests | 12,997 | 0 |
Total shareholders’ equity | 576,353 | 501,249 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,216,232 | 2,130,146 |
Common stock, $0.001 par value, authorized 1,500,000,000 shares; 68,936,891 and 64,370,470 shares issued, and 67,084,380 and 64,370,470 shares outstanding at June 30, 2018 and December 31, 2017, respectively | ||
SHAREHOLDERS’ EQUITY | ||
Common stock | 69 | 64 |
Class B convertible common stock; $0.001 par value; authorized 1,500,000,000 shares; 209,919,402 shares issued and outstanding | ||
SHAREHOLDERS’ EQUITY | ||
Common stock | 210 | 210 |
Class C common stock; $0.001 par value; authorized 1,500,000,000 shares; no shares issued and outstanding | ||
SHAREHOLDERS’ EQUITY | ||
Common stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEET (Un3
CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts receivable allowance and reserves | $ 778 | $ 778 |
Accumulated depreciation and amortization on property and equipment | 117,045 | 108,860 |
Accumulated amortization on intangible assets | $ 11,173 | $ 11,653 |
Preferred stock, par value (USD per share) | $ 0.001 | $ 0.001 |
Preferred stock authorized (shares) | 500,000,000 | 500,000,000 |
Preferred stock issued (shares) | 0 | 0 |
Preferred stock outstanding (shares) | 0 | 0 |
Treasury stock (shares) | 1,852,511 | 0 |
Common stock, $0.001 par value, authorized 1,500,000,000 shares; 68,936,891 and 64,370,470 shares issued, and 67,084,380 and 64,370,470 shares outstanding at June 30, 2018 and December 31, 2017, respectively | ||
Common stock, par value (USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (shares) | 1,500,000,000 | 1,500,000,000 |
Common stock issued (shares) | 68,936,891 | 64,370,470 |
Common stock outstanding (shares) | 67,084,380 | 64,370,470 |
Class B convertible common stock; $0.001 par value; authorized 1,500,000,000 shares; 209,919,402 shares issued and outstanding | ||
Common stock, par value (USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (shares) | 1,500,000,000 | 1,500,000,000 |
Common stock issued (shares) | 209,919,402 | 209,919,402 |
Common stock outstanding (shares) | 209,919,402 | 209,919,402 |
Class C common stock; $0.001 par value; authorized 1,500,000,000 shares; no shares issued and outstanding | ||
Common stock, par value (USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (shares) | 1,500,000,000 | 1,500,000,000 |
Common stock issued (shares) | 0 | 0 |
Common stock outstanding (shares) | 0 | 0 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue | $ 421,196 | $ 309,572 | $ 828,563 | $ 608,336 |
Operating costs and expenses: | ||||
Cost of revenue (exclusive of depreciation shown separately below) | 97,334 | 62,665 | 191,278 | 121,513 |
Selling and marketing expense | 90,261 | 87,713 | 208,432 | 194,836 |
General and administrative expense | 42,165 | 43,871 | 84,926 | 87,781 |
Product development expense | 32,635 | 24,061 | 64,504 | 46,081 |
Depreciation | 8,399 | 7,883 | 16,546 | 15,472 |
Amortization of intangibles | 237 | 404 | 479 | 807 |
Total operating costs and expenses | 271,031 | 226,597 | 566,165 | 466,490 |
Operating income | 150,165 | 82,975 | 262,398 | 141,846 |
Interest expense | (18,276) | (19,072) | (36,082) | (38,022) |
Other income (expense), net | 11,004 | (9,550) | 3,783 | (15,528) |
Earnings from continuing operations, before tax | 142,893 | 54,353 | 230,099 | 88,296 |
Income tax (provision) benefit | (11,535) | (2,809) | 937 | (12,197) |
Net earnings from continuing operations | 131,358 | 51,544 | 231,036 | 76,099 |
Loss from discontinued operations, net of tax | 0 | (71) | 0 | (4,562) |
Net earnings | 131,358 | 51,473 | 231,036 | 71,537 |
Net loss (earnings) attributable to noncontrolling interests | 1,142 | (43) | 1,200 | (54) |
Net earnings attributable to Match Group, Inc. shareholders | $ 132,500 | $ 51,430 | $ 232,236 | $ 71,483 |
Net earnings per share from continuing operations: | ||||
Net earnings per share from continuing operations - basic (USD per share) | $ 0.48 | $ 0.20 | $ 0.84 | $ 0.30 |
Net earnings per share from continuing operations - diluted (USD per share) | 0.45 | 0.17 | 0.78 | 0.25 |
Net earnings per share attributable to Match Group, Inc. shareholders: | ||||
Basic (USD per share) | 0.48 | 0.20 | 0.84 | 0.28 |
Diluted (USD per share) | $ 0.45 | $ 0.17 | $ 0.78 | $ 0.24 |
Stock-based compensation expense by function: | ||||
Stock-based compensation expense | $ 16,706 | $ 15,654 | $ 33,669 | $ 33,678 |
Cost of revenue | ||||
Stock-based compensation expense by function: | ||||
Stock-based compensation expense | 642 | 427 | 1,275 | 816 |
Selling and marketing expense | ||||
Stock-based compensation expense by function: | ||||
Stock-based compensation expense | 889 | 1,026 | 1,781 | 2,107 |
General and administrative expense | ||||
Stock-based compensation expense by function: | ||||
Stock-based compensation expense | 7,590 | 10,255 | 15,250 | 23,071 |
Product development expense | ||||
Stock-based compensation expense by function: | ||||
Stock-based compensation expense | $ 7,585 | $ 3,946 | $ 15,363 | $ 7,684 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 131,358 | $ 51,473 | $ 231,036 | $ 71,537 |
Other comprehensive (loss) income, net of tax | ||||
Change in foreign currency translation adjustment | (39,346) | 15,517 | (8,745) | 34,690 |
Total other comprehensive (loss) income | (39,346) | 15,517 | (8,745) | 34,690 |
Comprehensive income | 92,012 | 66,990 | 222,291 | 106,227 |
Comprehensive loss (income) attributable to noncontrolling interests | 1,413 | (431) | 1,267 | (319) |
Comprehensive income attributable to Match Group, Inc. shareholders | $ 93,425 | $ 66,559 | $ 223,558 | $ 105,908 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited) - 6 months ended Jun. 30, 2018 - USD ($) shares in Thousands, $ in Thousands | Total | Total Match Group Shareholders’ Equity | Redeemable Noncontrolling Interests | Common StockCommon Stock $0.001 Par Value | Common StockClass B Convertible Common Stock $0.001 Par Value | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interests |
Balance at beginning of period at Dec. 31, 2017 | $ 6,056 | $ 6,056 | ||||||||
Increase (Decrease) in Redeemable Noncontrolling Interests | ||||||||||
Net earnings (loss) for the six months ended June 30, 2018 | (1,200) | 75 | ||||||||
Other comprehensive loss, net of tax | (67) | |||||||||
Balance at end of period at Jun. 30, 2018 | 6,064 | $ 6,064 | ||||||||
Balance at beginning of period at Dec. 31, 2017 | 501,249 | $ 501,249 | $ 64 | $ 210 | $ 81,082 | $ 532,211 | $ (112,318) | $ 0 | $ 0 | |
Balance at beginning of period (shares) at Dec. 31, 2017 | 64,370 | 209,919 | ||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||
Net earnings (loss) for the six months ended June 30, 2018 | 230,961 | 232,236 | 232,236 | (1,275) | ||||||
Other comprehensive loss, net of tax | (8,678) | (8,678) | (8,678) | |||||||
Stock-based compensation expense | 33,669 | 33,643 | 33,643 | 26 | ||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes | (115,288) | (115,288) | $ 3 | (115,291) | ||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes (shares) | 2,272 | |||||||||
Issuance of common stock to IAC pursuant to the employee matters agreement | 0 | $ 2 | (2) | |||||||
Issuance of common stock to IAC pursuant to the employee matters agreement (shares) | 2,295 | |||||||||
Purchase of treasury stock | (79,806) | (79,806) | (79,806) | |||||||
Noncontrolling interests created in an acquisition | 14,246 | 14,246 | ||||||||
Balance at end of period at Jun. 30, 2018 | $ 576,353 | $ 563,356 | $ 69 | $ 210 | $ (568) | $ 764,447 | $ (120,996) | $ (79,806) | $ 12,997 | |
Balance at end of period (shares) at Jun. 30, 2018 | 68,937 | 209,919 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities attributable to continuing operations: | ||
Net earnings from continuing operations | $ 231,036 | $ 76,099 |
Adjustments to reconcile net earnings from continuing operations to net cash provided by operating activities attributable to continuing operations: | ||
Stock-based compensation expense | 33,669 | 33,678 |
Depreciation | 16,546 | 15,472 |
Amortization of intangibles | 479 | 807 |
Deferred income taxes | (13,812) | (3,850) |
Acquisition-related contingent consideration fair value adjustments | 210 | 4,338 |
Other adjustments, net | (622) | 7,854 |
Changes in assets and liabilities | ||
Accounts receivable | (9,154) | (12,175) |
Other assets | (26,099) | (10,317) |
Accounts payable and other liabilities | (8,982) | 22,936 |
Income taxes payable and receivable | 5,485 | 8,516 |
Deferred revenue | 14,732 | 9,870 |
Net cash provided by operating activities attributable to continuing operations | 243,488 | 153,228 |
Cash flows from investing activities attributable to continuing operations: | ||
Cash acquired, net of cash paid, in a business combination | 1,136 | 0 |
Capital expenditures | (14,785) | (14,792) |
Proceeds from the sale of a business, net | 0 | 96,144 |
Purchases of investments | (3,000) | (5,076) |
Other, net | 38 | 0 |
Net cash (used in) provided by investing activities attributable to continuing operations | (16,611) | 76,276 |
Cash flows from financing activities attributable to continuing operations: | ||
Proceeds from issuance of common stock pursuant to stock-based awards | 0 | 39,403 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | (115,288) | (28,421) |
Purchase of treasury stock | (73,943) | 0 |
Acquisition-related contingent consideration payments | (185) | 0 |
Other, net | (616) | 0 |
Net cash (used in) provided by financing activities attributable to continuing operations | (190,032) | 10,982 |
Total cash provided by continuing operations | 36,845 | 240,486 |
Net cash used in operating activities attributable to discontinued operations | 0 | (6,061) |
Net cash used in investing activities attributable to discontinued operations | 0 | (471) |
Total cash used in discontinued operations | 0 | (6,532) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 289 | 5,109 |
Net increase in cash, cash equivalents, and restricted cash | 37,134 | 239,063 |
Cash, cash equivalents, and restricted cash at beginning of period | 272,761 | 253,771 |
Cash, cash equivalents, and restricted cash at end of period | $ 309,895 | $ 492,834 |
THE COMPANY AND SUMMARY OF SIGN
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1—THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Match Group, Inc. is a leading provider of subscription dating products servicing North America, Western Europe, Asia, and many other regions around the world through applications and websites that we own and operate. We operate a portfolio of brands, including Tinder, Match, PlentyOfFish, Meetic, OkCupid, OurTime, and Pairs as well as a number of other brands, each designed to increase our users’ likelihood of finding a meaningful connection. Through our portfolio of trusted brands, we provide tailored products to meet the varying preferences of our users. We currently offer our dating products in 42 languages across more than 190 countries. Match Group has one operating segment, Dating, which is managed as a portfolio of dating brands. As of June 30, 2018 , IAC/InterActiveCorp’s (“IAC”) economic ownership interest and voting interest in Match Group were 81.2% and 97.6% , respectively. All references to “Match Group,” the “Company,” “we,” “our,” or “us” in this report are to Match Group, Inc. Basis of Presentation and Consolidation The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of the Company, all entities that are wholly-owned by the Company and all entities in which the Company has a controlling financial interest. All intercompany transactions and balances between and among the Company, its subsidiaries and the entities comprising Match Group have been eliminated. Investments in equity securities, other than those of our consolidated subsidiaries, are accounted for at fair value or under the measurement alternative upon the adoption of Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , on January 1, 2018, with changes recognized within other income (expense), net each reporting period. Under the measurement alternative, equity investments without readily determinable fair values are carried at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Under the measurement alternative, the value of our equity securities without readily determinable fair values is generally determined based on a market approach as of the transaction date. An investment will be considered identical or similar if it has identical or similar rights to the equity investments held by the Company. The Company reviews impairment of our equity securities each reporting period when there are qualitative indicators that may indicate impairment. Once the qualitative indicators are identified and the fair value of the security is less than its carrying value, the Company will write down the security to its fair value and record the corresponding charge within other income (expense), net. See “ Accounting Pronouncements adopted by the Company ” below for further information. The unaudited interim consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and reflect, in management’s opinion, all adjustments, consisting of normal and recurring adjustments, necessary for the fair presentation of our financial position, results of operations and cash flows for the periods presented. Interim results are not necessarily indicative of the results that may be expected for the full year. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated and combined statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . For the purposes of these financial statements, income taxes have been computed for Match Group on an as if stand-alone, separate tax return basis. Accounting Estimates Management of the Company is required to make certain estimates, judgments, and assumptions during the preparation of its consolidated financial statements in accordance with GAAP. These estimates, judgments, and assumptions impact the reported amounts of assets, liabilities, revenue, and expenses and the related disclosure of contingent assets and liabilities. Actual results could differ from these estimates. On an ongoing basis, the Company evaluates its estimates and judgments including those related to: the recoverability of goodwill and indefinite-lived intangible assets; the useful lives and recoverability of definite-lived intangible assets and property and equipment; the fair values of equity securities without readily determinable fair values; the carrying value of accounts receivable, including the determination of the allowance for doubtful accounts; the determination of revenue reserves; the fair value of acquisition-related contingent consideration arrangements; unrecognized tax benefits; the valuation allowance for deferred income tax assets; and the fair value of and forfeiture rates for stock-based awards, among others. The Company bases its estimates and judgments on historical experience, its forecasts and budgets and other factors that the Company considers relevant. Recent Accounting Pronouncements Accounting Pronouncements adopted by the Company In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers . ASU No. 2014-09 supersedes nearly all existing revenue recognition guidance under GAAP. The Company adopted ASU No. 2014-09 as of January 1, 2018 using the modified retrospective transition method for open contracts as of the date of initial application. There is no cumulative impact to the Company’s retained earnings at January 1, 2018. See “ Note 2—Revenue Recognition ” for additional information on the impact to the Company. In January 2016, the FASB issued ASU No. 2016-01, which updates certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Under ASU No. 2016-01, equity securities, other than those of our consolidated subsidiaries, will be measured at fair value with changes in fair value recognized in the statement of operations each reporting period. ASU No. 2016-01 is effective for reporting periods beginning after December 15, 2017. The Company’s adoption of ASU No. 2016-01 effective January 1, 2018 did not have a material effect on its consolidated financial statements. The adoption of ASU No. 2016-01 may increase the volatility of our results of operations as a result of the remeasurement of these investments. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash, which requires companies to explain the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. Therefore, amounts generally described as restricted cash or restricted cash equivalents are combined with unrestricted cash and cash equivalents when reconciling the beginning and end of period balances on the statement of cash flows. Additionally, when cash, cash equivalents, restricted cash, and restricted cash equivalents are presented within different captions on the balance sheet, a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet is required. ASU No. 2016-18 is effective for reporting periods beginning after December 15, 2017. The Company’s adoption of ASU 2016-18 effective January 1, 2018, on a retrospective basis, did not have a material effect on its consolidated financial statements. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows: June 30, 2018 December 31, 2017 June 30, 2017 December 31, 2016 (In thousands) Cash and cash equivalents $ 309,761 $ 272,624 $ 492,705 $ 253,651 Restricted cash included in other current assets 134 137 129 120 Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flow $ 309,895 $ 272,761 $ 492,834 $ 253,771 In June 2018, the FASB issued ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting , which largely aligns the measurement and classification guidance for share-based payments granted to non-employees with the guidance for share-based payments granted to employees. The new guidance supersedes Subtopic 505-50, Equity - Equity-Based payments to Nonemployees . ASU No. 2018-07 is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The Company adopted ASU No. 2018-07 effective April 1, 2018 and its adoption did not have a material effect on its consolidated financial statements. The effect of the adoption of ASU No. 2018-07 will be to minimize the volatility of expense related to stock-based awards to non-employees in the future. Accounting Pronouncement not yet adopted by the Company In February 2016, the FASB issued Accounting Standards Update ASU No. 2016-02, Leases (Topic 842) , which supersedes existing guidance on accounting for leases in “Leases (Topic 840)” and generally requires all leases to be recognized in the statement of financial position. The provisions of ASU No. 2016-02 are effective for reporting periods beginning after December 15, 2018; early adoption is permitted. In July 2018, the FASB issued ASU No. 2018-11, which provides the option of an additional transition method that allows entities to initially apply the new lease guidance at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company expects to implement the transition method option provided by ASU No. 2018-11. The Company will adopt the new lease guidance effective January 1, 2019. The Company is not a lessor, and has no capitalized leases and does not expect to enter into any capitalized leases prior to the adoption of ASU No. 2016-02. Accordingly, the Company does not expect the amount or classification of rent expense in its statement of operations to be affected by the adoption of ASU No. 2016-02. The primary effect of the adoption of ASU No. 2016-02 will be the recognition of a right of use asset and related liability to reflect the Company's rights and obligations under its operating leases. The Company will also be required to provide the additional disclosures stipulated in ASU No. 2016-02. The adoption of ASU No. 2016-02 will not have an impact on the leverage calculation set forth in any of the agreements governing the outstanding debt of the Company, or our credit agreement, in each circumstance, the leverage calculations are not affected by the liability that will be recorded upon adoption of the new standard. While the Company's evaluation of the impact of the adoption of ASU No. 2016-02 on its consolidated financial statements continues, outlined below is a summary of the status of the Company's progress: • the Company has selected a software package to assist in the determination of the right of use asset and related liability as of January 1, 2019 and to provide the required information following the adoption; • the Company has prepared summaries of its leases for input into the software package; • the Company is assessing the other inputs required in connection with the adoption of ASU No. 2016-02; and • the Company is developing its accounting policy, procedures and controls related to the new standard. The Company does not expect to have a preliminary estimate of the right of use asset and related liability as of the adoption date until the fourth quarter of 2018. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | NOTE 2—REVENUE RECOGNITION Revenue Recognition The Company accounts for a contract when it has approval and commitment from all parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when control of the promised services is transferred to our customers, and in an amount that reflects the consideration the Company is contractually due in exchange for those services. The Company’s revenue is primarily derived directly from users in the form of recurring subscriptions. Subscription revenue is presented net of credits and credit card chargebacks. Subscribers pay in advance, primarily by credit card or through mobile app stores, and, subject to certain conditions identified in our terms and conditions, generally all purchases are final and nonrefundable. Revenue is initially deferred and is recognized using the straight-line method over the terms of the applicable subscription period, which primarily range from one to six months. Revenue is also earned from online advertising, the purchase of à la carte features and offline events. Online advertising revenue is recognized when an advertisement is displayed. Revenue from the purchase of à la carte features is recognized based on usage. Revenue associated with offline events is recognized when each event occurs. As permitted under the practical expedient available under ASU No. 2014-09, the Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts with variable consideration that is allocated entirely to unsatisfied performance obligations or to a wholly unsatisfied promise accounted for under the series guidance, and (iii) contracts for which the Company recognizes revenue at the amount which we have the right to invoice for services performed. Transaction Price The objective of determining the transaction price is to estimate the amount of consideration the Company is due in exchange for services, including amounts that are variable. The Company determines the total transaction price, including an estimate of any variable consideration, at contract inception and reassesses this estimate each reporting period. The Company excludes from the measurement of transaction price all taxes assessed by governmental authorities that are both (i) imposed on and concurrent with a specific revenue-producing transaction and (ii) collected from customers. Accordingly, such tax amounts are not included as a component of revenue or cost of revenue. For contracts that have an original duration of one year or less, the Company uses the practical expedient available under ASU No. 2014-09 applicable to such contracts and does not consider the time value of money. Accounts Receivables, net of allowance for doubtful accounts and revenue reserves Accounts receivable include amounts billed and currently due from customers. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of accounts receivables that will not be collected. The allowance for doubtful accounts is based upon a number of factors, including the length of time accounts receivable are past due, the Company’s previous loss history, and the specific customer’s ability to pay its obligation. The time between the Company issuance of an invoice and payment due date is not significant. The Company also maintains allowances to reserve for potential credits issued to consumers or other revenue adjustments. The amounts of these reserves are based primarily upon historical experience. Contract Liabilities (Deferred Revenue) Deferred revenue consists of advance payments that are received or due in advance of the Company's performance. The Company’s liabilities are reported on a contract by contract basis at the end of each reporting period. The Company generally classifies deferred revenue as current when the term of the applicable subscription period or expected completion of our performance obligation is one year or less. The deferred revenue balance at January 1, 2018 was $198.3 million . During the six months ended June 30, 2018 , the Company recognized $183.9 million of revenue that was included in the deferred revenue balance as of January 1, 2018. During the three months ended June 30, 2018 , the Company recognized $156.5 million of revenue that was included in the deferred revenue balance as of March 31, 2018. The current and non-current deferred revenue balances at June 30, 2018 are $212.5 million and $0.1 million , respectively. Non-current deferred revenue is included in “Other long-term liabilities” in the accompanying consolidated balance sheet. Assets Recognized from the Costs to Obtain a Contract with a Customer The Company has determined that certain costs, primarily mobile app store fees, meet the requirements to be capitalized as a cost of obtaining a contract. The Company recognizes an asset for these costs if we expect to recover those costs. Mobile app store fees are amortized over the period of contract performance. The Company capitalizes and amortizes mobile app store fees over the terms of the applicable subscriptions. During the three and six months ended June 30, 2018 , the Company recognized expense of $67.6 million and $130.3 million , respectively, related to these contracts. The contract asset balance at June 30, 2018 related to costs to obtain a contract is $27.9 million . Disaggregation of Revenue The following table presents disaggregated revenue: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) Direct Revenue: North America $ 222,163 $ 178,505 $ 433,520 $ 353,833 International 185,564 120,918 366,944 233,342 Total Direct Revenue 407,727 299,423 800,464 587,175 Indirect Revenue (principally advertising revenue) 13,469 10,149 28,099 21,161 Total Revenue $ 421,196 $ 309,572 $ 828,563 $ 608,336 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 3—INCOME TAXES Match Group is included within IAC’s tax group for purposes of federal and consolidated state income tax return filings. In all periods presented, current income tax provision and deferred income tax benefit have been computed for Match Group on an as if stand-alone, separate return basis. Match Group’s payments to IAC for its share of IAC’s consolidated federal and state tax return liabilities have been reflected within cash flows from operating activities in the accompanying consolidated statement of cash flows. At the end of each interim period, the Company makes its best estimate of the annual expected effective income tax rate and applies that rate to its ordinary year-to-date earnings or loss. The income tax provision or benefit related to significant, unusual, or extraordinary items, if applicable, that will be separately reported or reported net of their related tax effects are individually computed and recognized in the interim period in which they occur. In addition, the effect of changes in enacted tax laws or rates, tax status, judgment on the realizability of beginning-of-the-year deferred tax assets in future years or unrecognized tax benefits is recognized in the interim period in which the change occurs. The computation of the annual expected effective income tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected pre-tax income (or loss) for the year, projections of the proportion of income (and/or loss) earned and taxed in foreign jurisdictions, permanent and temporary differences, and the likelihood of the realization of deferred tax assets generated in the current year. The accounting estimates used to compute the provision or benefit for income taxes may change as new events occur, more experience is acquired, additional information is obtained or our tax environment changes. To the extent that the expected annual effective income tax rate changes during a quarter, the effect of the change on prior quarters is included in income tax provision in the quarter in which the change occurs. For the three months ended June 30, 2018 , the Company recorded an income tax provision from continuing operations of $11.5 million , which represents an effective income tax rate of 8% . The effective income tax rate is lower than the statutory rate of 21% due primarily to excess tax benefits generated by the exercise and vesting of stock-based awards. For the six months ended June 30, 2018 , the Company recorded an income tax benefit of $0.9 million . The income tax benefit for the six months ended June 30, 2018 is due primarily to excess tax benefits generated by the exercise and vesting of stock-based awards. For the three and six months ended June 30, 2017 , the Company recorded an income tax provision from continuing operations of $2.8 million and $12.2 million , respectively, which represents an effective income tax rate of 5% and 14% , respectively. The effective tax rate for the three and six months ended June 30, 2017 was lower than the statutory rate of 35% due principally to excess tax benefits generated by the exercise and vesting of stock-based awards and foreign income taxed at lower rates. On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act subjected to U.S. taxation certain previously deferred earnings of foreign subsidiaries as of December 31, 2017 (“Transition Tax”) and implemented a number of changes that took effect on January 1, 2018, including but not limited to, a reduction of the U.S. federal corporate tax rate from 35% to 21% and a new minimum tax on global intangible low-taxed income (“GILTI”) earned by foreign subsidiaries. The Company was able to make a reasonable estimate of the Transition Tax and recorded a provisional tax expense in the fourth quarter of 2017. The Company was also able to make a reasonable estimate of the impact of GILTI on the expected annual effective income tax rate for the second quarter of 2018. Any adjustment of the Company’s tax expense will be reflected as a change in estimate in its results in the period in which the change in estimate is made in accordance with Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act , which is also included in ASU 2018-05, Income Taxes (Topic 740), Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118” which was issued by the FASB and adopted by the Company in March 2018. The Company is continuing to gather additional information to more precisely compute the amount of the Transition Tax and expects to finalize its calculation prior to the filing of its U.S. federal tax return, which is due on October 15, 2018. The additional information includes, but is not limited to, the allocation and sourcing of income and deductions in 2017 for purposes of calculating the utilization of foreign tax credits. In addition, our estimates may also be impacted and adjusted as the law is clarified and additional guidance is issued at the federal and state levels. No adjustment was made in the six months ended June 30, 2018 to the Company’s previously recorded tax expense, including for the impact of the issuance of Treasury Notices 2018-26 and 2018-28, as we continue to assess their impact, which we believe is immaterial. The Company recognizes interest and, if applicable, penalties related to unrecognized tax benefits in the income tax provision. Accruals for interest and penalties are not material. Match Group is routinely under audit by federal, state, local and foreign authorities in the area of income tax as a result of previously filed separate company tax returns and consolidated tax returns with IAC. These audits include questioning the timing and the amount of income and deductions and the allocation of income and deductions among various tax jurisdictions. The Internal Revenue Service is currently auditing IAC’s federal income tax returns for the years ended December 31, 2010 through 2016, which includes the operations of Match Group. The statute of limitations for the years 2010 through 2012 has been extended to June 30, 2019, and the statute of limitations for the years 2013 through 2014 has been extended to March 31, 2019. Various other jurisdictions are open to examination for tax years beginning with 2009. Income taxes payable include unrecognized tax benefits considered sufficient to pay assessments that may result from examination of prior year tax returns. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. Although management currently believes changes in unrecognized tax benefits from period to period and differences between amounts paid, if any, upon resolution of issues raised in audits and amounts previously provided will not have a material impact on the liquidity, results of operations, or financial condition of the Company, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. At June 30, 2018 and December 31, 2017 , unrecognized tax benefits, including interest and penalties, are $25.9 million and $26.8 million , respectively. At June 30, 2018 and December 31, 2017 , approximately $17.8 million and $17.6 million , respectively, was included in unrecognized tax benefits for tax positions included in IAC’s consolidated tax return filings. If unrecognized tax benefits at June 30, 2018 are subsequently recognized, $24.4 million , net of related deferred tax assets and interest, would reduce income tax expense. The comparable amount as of December 31, 2017 was $25.3 million . The Company believes that it is reasonably possible that its unrecognized tax benefits could decrease by $10.8 million by June 30, 2019, due to expirations of statutes of limitations; all of which would reduce the income tax provision. The Company regularly assesses the realizability of deferred tax assets considering all available evidence including, among other things, the nature, frequency and severity of prior cumulative losses, forecasts of future taxable income, the duration of statutory carryforward periods, available tax planning and historical experience, to the extent these items are applicable. As of June 30, 2018 , the Company has a gross deferred tax asset of $145.0 million that the Company expects to fully utilize on a more likely than not basis. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 4—DISCONTINUED OPERATIONS On March 31, 2017, Match Group sold its Non-dating business, which operated under the umbrella of The Princeton Review, to ST Unitas, a global education technology company. We recognized a loss on the sale of the business of $1.0 million for the six months ended June 30, 2017, which is reported within discontinued operations. The key components of loss from discontinued operations for the three and six months ended June 30, 2017 consist of the following: Three Months Ended June 30, Six Months Ended June 30, 2017 2017 (In thousands) Revenue $ — $ 23,980 Operating costs and expenses — (29,601 ) Operating loss — (5,621 ) Other expense (71 ) (1,003 ) Income tax benefit — 2,062 Loss from discontinued operations $ (71 ) $ (4,562 ) |
FAIR VALUE MEASUREMENTS AND FIN
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS | NOTE 5—FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS The Company categorizes its financial instruments measured at fair value into a fair value hierarchy that prioritizes the inputs used in pricing the asset or liability. The three levels of the fair value hierarchy are: • Level 1: Observable inputs obtained from independent sources, such as quoted market prices for identical assets and liabilities in active markets. • Level 2: Other inputs, which are observable directly or indirectly, such as quoted market prices for similar assets or liabilities in active markets, quoted market prices for identical or similar assets or liabilities in markets that are not active and inputs that are derived principally from or corroborated by observable market data. The fair values of the Company’s Level 2 financial assets are primarily obtained from observable market prices for identical underlying securities that may not be actively traded. Certain of these securities may have different market prices from multiple market data sources, in which case an average market price is used. • Level 3: Unobservable inputs for which there is little or no market data and require the Company to develop its own assumptions, based on the best information available in the circumstances, about the assumptions market participants would use in pricing the assets or liabilities. See below for a discussion of fair value measurements made using Level 3 inputs. The following tables present the Company’s financial instruments that are measured at fair value on a recurring basis: June 30, 2018 Quoted Market Significant Other Observable Inputs Significant Total (In thousands) Assets: Cash equivalents: Money market funds $ 62,018 $ — $ — $ 62,018 Time deposits — 35,000 — 35,000 Total $ 62,018 $ 35,000 $ — $ 97,018 Liabilities: Contingent consideration arrangements $ — $ — $ (1,910 ) $ (1,910 ) December 31, 2017 Quoted Market Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs (Level 3) Total Fair Value Measurements (In thousands) Assets: Cash equivalents: Money market funds $ 71,197 $ — $ — $ 71,197 Time deposits — 35,023 — 35,023 Total $ 71,197 $ 35,023 $ — $ 106,220 Liabilities: Contingent consideration arrangements $ — $ — $ (2,647 ) $ (2,647 ) The Company’s financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are its contingent consideration arrangements. Three Months Ended June 30, 2018 2017 (In thousands) Balance at April 1 $ (1,965 ) $ (21,821 ) Total net losses: Fair value adjustments (54 ) (2,994 ) Included in other comprehensive income (loss) 109 (14 ) Balance at June 30 $ (1,910 ) $ (24,829 ) Six Months Ended June 30, 2018 2017 (In thousands) Balance at January 1 $ (2,647 ) $ (19,418 ) Total net losses: Fair value adjustments (210 ) (4,338 ) Included in other comprehensive loss (1 ) (1,073 ) Settlements 948 — Balance at June 30 $ (1,910 ) $ (24,829 ) Contingent consideration arrangements As of June 30, 2018 , there are two contingent consideration arrangements related to business acquisitions. One of the contingent consideration arrangements has limits as to the maximum amount that can be paid. The maximum contingent payment related to this arrangement and the gross fair value of this arrangement, before the unamortized discount, at June 30, 2018 , is $2.0 million . No payment is expected for the other contingent consideration arrangement, which does not have a limit on the maximum earnout. The current contingent consideration arrangements are based upon earnings performance. Previous contingent consideration arrangements were based upon earnings performance and/or operating metrics. The Company determined the fair value of the current contingent consideration arrangement for which a payment is expected by using probability-weighted analyses to determine the amount of the gross liability. For arrangements that are long-term in nature, a discount rate is applied, to appropriately capture the risks associated with the obligation to determine the net amount reflected in the consolidated financial statements. The fair values of the contingent consideration arrangements at both June 30, 2018 and December 31, 2017 reflect a discount rate of 12% . The fair value of contingent consideration arrangements is sensitive to changes in the forecasts of earnings and changes in discount rates. The Company remeasures the fair value of contingent consideration arrangements each reporting period, including the accretion of the discount, if applicable, and changes are recognized in “General and administrative expense” in the accompanying consolidated statement of operations. The contingent consideration arrangement liability at June 30, 2018 and December 31, 2017 includes a current portion of $1.9 million and $0.6 million , respectively, which is included in “Accrued expenses and other current liabilities” and a non-current portion of $2.0 million at December 31, 2017, which is included in “Other long-term liabilities” in the accompanying consolidated balance sheet. At June 30, 2018 , there is no non-current portion of the contingent consideration liability. Equity securities without readily determinable fair values At June 30, 2018 and December 31, 2017 , the carrying values of the Company’s investments in equity securities without readily determinable fair values totaled $10.2 million and $11.1 million , respectively, and are included in “Long-term investments” in the accompanying consolidated balance sheet. Following the adoption of the measurement alternative under ASU No. 2016-01 on January 1, 2018, the Company’s equity securities without readily determinable fair values are carried at cost minus impairment minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. For all equity securities without readily determinable fair values as of June 30, 2018 , the Company has elected the measurement alternative. As of June 30, 2018 , under the measurement alternative election, the Company did not identify any fair value adjustments using observable price changes in orderly transactions for an identical or similar investment of the same issuer. During the first quarter of 2017, prior to the adoption of ASU No. 2016-01, we recognized an other-than-temporary impairment charge of $2.3 million related to certain cost method investments as a result of our assessment of the near-term prospects and financial condition of the investees. Assets measured at fair value on a nonrecurring basis The Company’s non-financial assets, such as goodwill, intangible assets and property and equipment, are adjusted to fair value only when an impairment charge is recognized. The Company’s financial assets, comprising of equity securities without readily determinable fair values, are adjusted to fair value when observable price changes are identified or an impairment charge is recognized. Such fair value measurements are based predominantly on Level 3 inputs. Financial instruments measured at fair value only for disclosure purposes The following table presents the carrying value and the fair value of financial instruments measured at fair value only for disclosure purposes. June 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Long-term debt, net $ (1,254,265 ) $ (1,265,255 ) $ (1,252,696 ) $ (1,320,289 ) The fair value of long-term debt, net is estimated using observable market prices or indices for similar liabilities, which are Level 2 inputs. |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | NOTE 6—LONG-TERM DEBT Long-term debt consists of: June 30, 2018 December 31, 2017 (In thousands) Term Loan due November 16, 2022 (the “Term Loan”) $ 425,000 $ 425,000 6.375% Senior Notes due June 1, 2024 (the “2016 Senior Notes”); interest payable each June 1 and December 1 400,000 400,000 5.00% Senior Notes due December 15, 2027 (the “2017 Senior Notes”); interest payable each June 15 and December 15, which commences June 15, 2018 450,000 450,000 Total debt 1,275,000 1,275,000 Less: Unamortized original issue discount 8,010 8,668 Less: Unamortized debt issuance costs 12,725 13,636 Total long-term debt, net $ 1,254,265 $ 1,252,696 Senior Notes : The 2017 Senior Notes were issued on December 4, 2017 at 99.027% of par. The proceeds of $445.6 million , along with cash on hand, were used to redeem the 6.75% Senior Notes due December 15, 2022 and pay the related call premium. At any time prior to December 15, 2022, these notes may be redeemed at a redemption price equal to the sum of the principal amount, plus accrued and unpaid interest and a make-whole premium. Thereafter, these notes may be redeemed at redemption prices set forth in the indenture governing the 2017 Senior Notes, together with accrued and unpaid interest to the applicable redemption date. The 2016 Senior Notes were issued on June 1, 2016. The proceeds of $400 million were used to prepay a portion of indebtedness then outstanding under the Term Loan. At any time prior to June 1, 2019, these notes may be redeemed at a redemption price equal to the sum of the principal amount, plus accrued and unpaid interest and a make-whole premium. Thereafter, these notes may be redeemed at redemption prices set forth in the indenture governing the 2016 Senior Notes, together with accrued and unpaid interest to the applicable redemption date. The indentures governing the 2017 and 2016 Senior Notes contain covenants that would limit the Company’s ability to pay dividends or to make distributions and repurchase or redeem Match Group stock in the event a default has occurred or Match Group’s leverage ratio (as defined in the indentures) exceeds 5.0 to 1.0. The 2017 and 2016 Senior Notes rate equally in right of payment. At June 30, 2018 , there were no limitations pursuant thereto. There are additional covenants that limit the ability of the Company and its subsidiaries to, among other things, (i) incur indebtedness, make investments, or sell assets in the event the Company is not in compliance with certain financial ratios set forth in the indenture, and (ii) incur liens, enter into agreements restricting the ability of the Company’s subsidiaries to pay dividends, enter into transactions with affiliates and consolidate, merge or sell substantially all of their assets. Term Loan and Credit Facility : The Company entered into the Term Loan under a credit agreement (the “Credit Agreement”) on November 16, 2015. At both June 30, 2018 and December 31, 2017, the outstanding balance on the Term Loan was $425 million and the loan bears interest at LIBOR plus 2.50% . The interest rate of the Term Loan was 4.59% and 3.85% at June 30, 2018 and December 31, 2017, respectively. Interest payments are due at least quarterly through the term of the loan. The Term Loan provides for annual principal payments as part of an excess cash flow sweep provision, the amount of which, if any, is governed by the secured net leverage ratio contained in the Credit Agreement. The Company has a $500 million revolving credit facility (the “Credit Facility”) that expires on October 7, 2020. At June 30, 2018 and December 31, 2017 , there were no outstanding borrowings under the Credit Facility. The annual commitment fee on undrawn funds based on the current leverage ratio is 30 basis points. Borrowings under the Credit Facility bear interest, at the Company’s option, at a base rate or LIBOR, in each case plus an applicable margin, which is determined by reference to a pricing grid based on the Company’s consolidated net leverage ratio. The terms of the Credit Facility require the Company to maintain a consolidated net leverage ratio of not more than 5.0 to 1.0 and a minimum interest coverage ratio of not less than 2.5 to 1.0 (in each cash as defined in the agreement). There are additional covenants under the Credit Facility and the Term Loan that limit the ability of the Company and its subsidiaries to, among other things, incur indebtedness, pay dividends or make distributions. While the Term Loan remains outstanding, these same covenants under the Credit Agreement are more restrictive than the covenants that are applicable to the Credit Facility. Obligations under the Credit Facility and Term Loan are unconditionally guaranteed by certain Match Group wholly-owned domestic subsidiaries, and are also secured by the stock of certain Match Group domestic and foreign subsidiaries. The Term Loan and outstanding borrowings, if any, under the Credit Facility rank equally with each other, and have priority over the 2017 and 2016 Senior Notes to the extent of the value of the assets securing the borrowings under the Credit Agreement. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | NOTE 7—ACCUMULATED OTHER COMPREHENSIVE LOSS The following table presents the components of accumulated other comprehensive loss and items reclassified out of accumulated other comprehensive loss into earnings. For the three and six months ended June 30, 2018 and 2017, the Company’s accumulated other comprehensive loss relates to foreign currency translation adjustments. Three Months Ended June 30, 2018 2017 (In thousands) Balance at April 1 $ (81,921 ) $ (157,088 ) Other comprehensive (loss) income (39,075 ) 15,129 Balance at June 30 $ (120,996 ) $ (141,959 ) Six Months Ended June 30, 2018 2017 (In thousands) Balance at January 1 $ (112,318 ) $ (176,384 ) Other comprehensive (loss) income before reclassifications (8,678 ) 33,711 Amounts reclassified into earnings — 714 Net period other comprehensive (loss) income (8,678 ) 34,425 Balance at June 30 $ (120,996 ) $ (141,959 ) The amount reclassified out of accumulated other comprehensive loss into earnings for the three and six months ended June 30, 2017 relates to the liquidation of an international subsidiary. At both June 30, 2018 and 2017 , there was no tax benefit or provision on the accumulated other comprehensive loss. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 8—EARNINGS PER SHARE The following tables set forth the computation of the basic and diluted earnings per share attributable to Match Group shareholders: Three Months Ended June 30, 2018 2017 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator Net earnings from continuing operations $ 131,358 $ 131,358 $ 51,544 $ 51,544 Net loss (earnings) attributable to noncontrolling interests 1,142 1,142 (43 ) (43 ) Net earnings from continuing operations attributable to Match Group, Inc. shareholders 132,500 132,500 51,501 51,501 Loss from discontinued operations, net of tax — — (71 ) (71 ) Net earnings attributable to Match Group, Inc. shareholders $ 132,500 $ 132,500 $ 51,430 $ 51,430 Denominator Basic weighted average common shares outstanding 277,115 277,115 258,973 258,973 Dilutive securities including stock options, RSU awards, and subsidiary denominated equity (a)(b) — 19,881 — 47,860 Dilutive weighted average common shares outstanding 277,115 296,996 258,973 306,833 Earnings (loss) per share: Earnings per share from continuing operations $ 0.48 $ 0.45 $ 0.20 $ 0.17 Loss per share from discontinued operations, net of tax $ — $ — $ 0.00 $ 0.00 Earnings per share attributable to Match Group, Inc. shareholders $ 0.48 $ 0.45 $ 0.20 $ 0.17 Six Months Ended June 30, 2018 2017 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator Net earnings from continuing operations $ 231,036 $ 231,036 $ 76,099 $ 76,099 Net loss (earnings) attributable to noncontrolling interests 1,200 1,200 (54 ) (54 ) Net earnings from continuing operations attributable to Match Group, Inc. shareholders 232,236 232,236 76,045 76,045 Loss from discontinued operations, net of tax — — (4,562 ) (4,562 ) Net earnings attributable to Match Group, Inc. shareholders $ 232,236 $ 232,236 $ 71,483 $ 71,483 Denominator Basic weighted average common shares outstanding 276,198 276,198 257,517 257,517 Dilutive securities including stock options, RSU awards, and subsidiary denominated equity (a)(b) — 21,376 — 41,859 Dilutive weighted average common shares outstanding 276,198 297,574 257,517 299,376 Earnings (loss) per share: Earnings per share from continuing operations $ 0.84 $ 0.78 $ 0.30 $ 0.25 Loss per share from discontinued operations, net of tax $ — $ — $ (0.02 ) $ (0.02 ) Earnings per share attributable to Match Group, Inc. shareholders $ 0.84 $ 0.78 $ 0.28 $ 0.24 ______________________ (a) If the effect is dilutive, weighted average common shares outstanding include the incremental shares that would be issued upon the assumed exercise of stock options and subsidiary denominated equity or vesting of restricted stock units (“RSUs”). For the three and six months ended June 30, 2018 , 0.1 million and 0.3 million , potentially dilutive securities, respectively and for the three and six months ended June 30, 2017 , 0.3 million and 5.0 million , respectively, are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. (b) Market-based awards and performance-based stock options (“PSOs”) and units (“PSUs”) are considered contingently issuable shares. Shares issuable upon exercise or vesting of market-based awards, PSOs, and PSUs are included in the denominator for earnings per share if (i) the applicable market or performance condition(s) has been met and (ii) the inclusion of the market-based awards, PSOs and PSUs is dilutive for the respective reporting periods. For each of the three and six months ended June 30, 2018 , 1.9 million shares underlying market-based awards, PSOs, and PSUs, and for the three and six months ended June 30, 2017 , 1.3 million and 2.0 million shares underlying market-based awards, PSOs, and PSUs, respectively, were excluded from the calculation of diluted earnings per share because the market or performance conditions had not been met. |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | NOTE 9—CONTINGENCIES In the ordinary course of business, the Company is a party to various lawsuits. The Company establishes reserves for specific legal matters when it determines that the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable. Management has also identified certain other legal matters where we believe an unfavorable outcome is not probable and, therefore, no reserve is established. Although management currently believes that resolving claims against us, including claims where an unfavorable outcome is reasonably possible, will not have a material impact on the liquidity, results of operations, or financial condition of the Company, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. The Company also evaluates other contingent matters, including income and non-income tax contingencies, to assess the likelihood of an unfavorable outcome and estimated extent of potential loss. It is possible that an unfavorable outcome of one or more of these lawsuits or other contingencies could have a material impact on the liquidity, results of operations, or financial condition of the Company. See “ Note 3—Income Taxes ” for additional information related to income tax contingencies. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 10—RELATED PARTY TRANSACTIONS Relationship with IAC In connection with the IPO in November 2015, the Company entered into certain agreements relating to our relationship with IAC after the IPO. These agreements include a master transaction agreement; an investor rights agreement; a tax sharing agreement; a services agreement; an employee matters agreement and a subordinated loan agreement. For the three and six months ended June 30, 2018 , the Company incurred $1.9 million and $3.7 million , respectively, and for the three and six months ended June 30, 2017 , the Company incurred $2.6 million and $5.4 million , respectively, pursuant to the services agreement. Included in these amounts for both the three and six months ended June 30, 2018 and 2017 is $1.3 million and $2.6 million , respectively, for leasing of office space for certain of our businesses at properties owned by IAC. All such amounts were paid in full by the Company at June 30, 2018 . The employee matters agreement provides, among other things, that: (i) with respect to equity awards denominated in shares of certain of the Company’s subsidiaries, IAC may elect to cause such equity awards to be settled in either shares of IAC common stock or Company common stock and, to the extent that shares of IAC common stock are issued in settlement of such equity awards, the Company will reimburse IAC for the cost of such shares of IAC common stock by issuing to IAC additional shares of Company common stock; and (ii) the Company will reimburse IAC for the cost of any IAC equity awards held by the Company’s employees and former employees and that IAC may elect to receive payment either in cash or Company common stock. During the six months ended June 30, 2018 and 2017 , 2.3 million and 0.5 million shares, respectively, of Company common stock were issued to IAC pursuant to the employee matters agreement. This includes 1.9 million shares issued during the six months ended June 30, 2018 as reimbursement for shares of IAC common stock issued in connection with the exercise of equity awards originally denominated in shares of a subsidiary of the Company and 0.4 million and 0.5 million shares, respectively, during the six months ended June 30, 2018 and 2017 , issued as reimbursement for shares of IAC common stock issued in connection with the exercise and vesting of IAC equity awards held by Company employees. |
THE COMPANY AND SUMMARY OF SI18
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Match Group, Inc. is a leading provider of subscription dating products servicing North America, Western Europe, Asia, and many other regions around the world through applications and websites that we own and operate. We operate a portfolio of brands, including Tinder, Match, PlentyOfFish, Meetic, OkCupid, OurTime, and Pairs as well as a number of other brands, each designed to increase our users’ likelihood of finding a meaningful connection. Through our portfolio of trusted brands, we provide tailored products to meet the varying preferences of our users. We currently offer our dating products in 42 languages across more than 190 countries. Match Group has one operating segment, Dating, which is managed as a portfolio of dating brands. As of June 30, 2018 , IAC/InterActiveCorp’s (“IAC”) economic ownership interest and voting interest in Match Group were 81.2% and 97.6% , respectively. All references to “Match Group,” the “Company,” “we,” “our,” or “us” in this report are to Match Group, Inc. |
Basis of Presentation | The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of the Company, all entities that are wholly-owned by the Company and all entities in which the Company has a controlling financial interest. All intercompany transactions and balances between and among the Company, its subsidiaries and the entities comprising Match Group have been eliminated. Investments in equity securities, other than those of our consolidated subsidiaries, are accounted for at fair value or under the measurement alternative upon the adoption of Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , on January 1, 2018, with changes recognized within other income (expense), net each reporting period. Under the measurement alternative, equity investments without readily determinable fair values are carried at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Under the measurement alternative, the value of our equity securities without readily determinable fair values is generally determined based on a market approach as of the transaction date. An investment will be considered identical or similar if it has identical or similar rights to the equity investments held by the Company. The Company reviews impairment of our equity securities each reporting period when there are qualitative indicators that may indicate impairment. Once the qualitative indicators are identified and the fair value of the security is less than its carrying value, the Company will write down the security to its fair value and record the corresponding charge within other income (expense), net. See “ Accounting Pronouncements adopted by the Company ” below for further information. The unaudited interim consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and reflect, in management’s opinion, all adjustments, consisting of normal and recurring adjustments, necessary for the fair presentation of our financial position, results of operations and cash flows for the periods presented. Interim results are not necessarily indicative of the results that may be expected for the full year. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated and combined statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . For the purposes of these financial statements, income taxes have been computed for Match Group on an as if stand-alone, separate tax return basis. |
Consolidation | The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of the Company, all entities that are wholly-owned by the Company and all entities in which the Company has a controlling financial interest. All intercompany transactions and balances between and among the Company, its subsidiaries and the entities comprising Match Group have been eliminated. Investments in equity securities, other than those of our consolidated subsidiaries, are accounted for at fair value or under the measurement alternative upon the adoption of Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , on January 1, 2018, with changes recognized within other income (expense), net each reporting period. Under the measurement alternative, equity investments without readily determinable fair values are carried at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Under the measurement alternative, the value of our equity securities without readily determinable fair values is generally determined based on a market approach as of the transaction date. An investment will be considered identical or similar if it has identical or similar rights to the equity investments held by the Company. The Company reviews impairment of our equity securities each reporting period when there are qualitative indicators that may indicate impairment. Once the qualitative indicators are identified and the fair value of the security is less than its carrying value, the Company will write down the security to its fair value and record the corresponding charge within other income (expense), net. See “ Accounting Pronouncements adopted by the Company ” below for further information. The unaudited interim consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and reflect, in management’s opinion, all adjustments, consisting of normal and recurring adjustments, necessary for the fair presentation of our financial position, results of operations and cash flows for the periods presented. Interim results are not necessarily indicative of the results that may be expected for the full year. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated and combined statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . For the purposes of these financial statements, income taxes have been computed for Match Group on an as if stand-alone, separate tax return basis. |
Accounting Estimates | Management of the Company is required to make certain estimates, judgments, and assumptions during the preparation of its consolidated financial statements in accordance with GAAP. These estimates, judgments, and assumptions impact the reported amounts of assets, liabilities, revenue, and expenses and the related disclosure of contingent assets and liabilities. Actual results could differ from these estimates. On an ongoing basis, the Company evaluates its estimates and judgments including those related to: the recoverability of goodwill and indefinite-lived intangible assets; the useful lives and recoverability of definite-lived intangible assets and property and equipment; the fair values of equity securities without readily determinable fair values; the carrying value of accounts receivable, including the determination of the allowance for doubtful accounts; the determination of revenue reserves; the fair value of acquisition-related contingent consideration arrangements; unrecognized tax benefits; the valuation allowance for deferred income tax assets; and the fair value of and forfeiture rates for stock-based awards, among others. The Company bases its estimates and judgments on historical experience, its forecasts and budgets and other factors that the Company considers relevant. |
Recent Accounting Pronouncements | Accounting Pronouncements adopted by the Company In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers . ASU No. 2014-09 supersedes nearly all existing revenue recognition guidance under GAAP. The Company adopted ASU No. 2014-09 as of January 1, 2018 using the modified retrospective transition method for open contracts as of the date of initial application. There is no cumulative impact to the Company’s retained earnings at January 1, 2018. See “ Note 2—Revenue Recognition ” for additional information on the impact to the Company. In January 2016, the FASB issued ASU No. 2016-01, which updates certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Under ASU No. 2016-01, equity securities, other than those of our consolidated subsidiaries, will be measured at fair value with changes in fair value recognized in the statement of operations each reporting period. ASU No. 2016-01 is effective for reporting periods beginning after December 15, 2017. The Company’s adoption of ASU No. 2016-01 effective January 1, 2018 did not have a material effect on its consolidated financial statements. The adoption of ASU No. 2016-01 may increase the volatility of our results of operations as a result of the remeasurement of these investments. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash, which requires companies to explain the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. Therefore, amounts generally described as restricted cash or restricted cash equivalents are combined with unrestricted cash and cash equivalents when reconciling the beginning and end of period balances on the statement of cash flows. Additionally, when cash, cash equivalents, restricted cash, and restricted cash equivalents are presented within different captions on the balance sheet, a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet is required. ASU No. 2016-18 is effective for reporting periods beginning after December 15, 2017. The Company’s adoption of ASU 2016-18 effective January 1, 2018, on a retrospective basis, did not have a material effect on its consolidated financial statements. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows: June 30, 2018 December 31, 2017 June 30, 2017 December 31, 2016 (In thousands) Cash and cash equivalents $ 309,761 $ 272,624 $ 492,705 $ 253,651 Restricted cash included in other current assets 134 137 129 120 Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flow $ 309,895 $ 272,761 $ 492,834 $ 253,771 In June 2018, the FASB issued ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting , which largely aligns the measurement and classification guidance for share-based payments granted to non-employees with the guidance for share-based payments granted to employees. The new guidance supersedes Subtopic 505-50, Equity - Equity-Based payments to Nonemployees . ASU No. 2018-07 is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The Company adopted ASU No. 2018-07 effective April 1, 2018 and its adoption did not have a material effect on its consolidated financial statements. The effect of the adoption of ASU No. 2018-07 will be to minimize the volatility of expense related to stock-based awards to non-employees in the future. Accounting Pronouncement not yet adopted by the Company In February 2016, the FASB issued Accounting Standards Update ASU No. 2016-02, Leases (Topic 842) , which supersedes existing guidance on accounting for leases in “Leases (Topic 840)” and generally requires all leases to be recognized in the statement of financial position. The provisions of ASU No. 2016-02 are effective for reporting periods beginning after December 15, 2018; early adoption is permitted. In July 2018, the FASB issued ASU No. 2018-11, which provides the option of an additional transition method that allows entities to initially apply the new lease guidance at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company expects to implement the transition method option provided by ASU No. 2018-11. The Company will adopt the new lease guidance effective January 1, 2019. The Company is not a lessor, and has no capitalized leases and does not expect to enter into any capitalized leases prior to the adoption of ASU No. 2016-02. Accordingly, the Company does not expect the amount or classification of rent expense in its statement of operations to be affected by the adoption of ASU No. 2016-02. The primary effect of the adoption of ASU No. 2016-02 will be the recognition of a right of use asset and related liability to reflect the Company's rights and obligations under its operating leases. The Company will also be required to provide the additional disclosures stipulated in ASU No. 2016-02. The adoption of ASU No. 2016-02 will not have an impact on the leverage calculation set forth in any of the agreements governing the outstanding debt of the Company, or our credit agreement, in each circumstance, the leverage calculations are not affected by the liability that will be recorded upon adoption of the new standard. While the Company's evaluation of the impact of the adoption of ASU No. 2016-02 on its consolidated financial statements continues, outlined below is a summary of the status of the Company's progress: • the Company has selected a software package to assist in the determination of the right of use asset and related liability as of January 1, 2019 and to provide the required information following the adoption; • the Company has prepared summaries of its leases for input into the software package; • the Company is assessing the other inputs required in connection with the adoption of ASU No. 2016-02; and • the Company is developing its accounting policy, procedures and controls related to the new standard. The Company does not expect to have a preliminary estimate of the right of use asset and related liability as of the adoption date until the fourth quarter of 2018. |
Reclassifications | Certain prior year amounts have been reclassified to conform to the current year presentation. |
Revenue Recognition | Revenue Recognition The Company accounts for a contract when it has approval and commitment from all parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when control of the promised services is transferred to our customers, and in an amount that reflects the consideration the Company is contractually due in exchange for those services. The Company’s revenue is primarily derived directly from users in the form of recurring subscriptions. Subscription revenue is presented net of credits and credit card chargebacks. Subscribers pay in advance, primarily by credit card or through mobile app stores, and, subject to certain conditions identified in our terms and conditions, generally all purchases are final and nonrefundable. Revenue is initially deferred and is recognized using the straight-line method over the terms of the applicable subscription period, which primarily range from one to six months. Revenue is also earned from online advertising, the purchase of à la carte features and offline events. Online advertising revenue is recognized when an advertisement is displayed. Revenue from the purchase of à la carte features is recognized based on usage. Revenue associated with offline events is recognized when each event occurs. As permitted under the practical expedient available under ASU No. 2014-09, the Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts with variable consideration that is allocated entirely to unsatisfied performance obligations or to a wholly unsatisfied promise accounted for under the series guidance, and (iii) contracts for which the Company recognizes revenue at the amount which we have the right to invoice for services performed. Transaction Price The objective of determining the transaction price is to estimate the amount of consideration the Company is due in exchange for services, including amounts that are variable. The Company determines the total transaction price, including an estimate of any variable consideration, at contract inception and reassesses this estimate each reporting period. The Company excludes from the measurement of transaction price all taxes assessed by governmental authorities that are both (i) imposed on and concurrent with a specific revenue-producing transaction and (ii) collected from customers. Accordingly, such tax amounts are not included as a component of revenue or cost of revenue. For contracts that have an original duration of one year or less, the Company uses the practical expedient available under ASU No. 2014-09 applicable to such contracts and does not consider the time value of money. Accounts Receivables, net of allowance for doubtful accounts and revenue reserves Accounts receivable include amounts billed and currently due from customers. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of accounts receivables that will not be collected. The allowance for doubtful accounts is based upon a number of factors, including the length of time accounts receivable are past due, the Company’s previous loss history, and the specific customer’s ability to pay its obligation. The time between the Company issuance of an invoice and payment due date is not significant. The Company also maintains allowances to reserve for potential credits issued to consumers or other revenue adjustments. The amounts of these reserves are based primarily upon historical experience. Contract Liabilities (Deferred Revenue) Deferred revenue consists of advance payments that are received or due in advance of the Company's performance. The Company’s liabilities are reported on a contract by contract basis at the end of each reporting period. The Company generally classifies deferred revenue as current when the term of the applicable subscription period or expected completion of our performance obligation is one year or less. The deferred revenue balance at January 1, 2018 was $198.3 million . During the six months ended June 30, 2018 , the Company recognized $183.9 million of revenue that was included in the deferred revenue balance as of January 1, 2018. During the three months ended June 30, 2018 , the Company recognized $156.5 million of revenue that was included in the deferred revenue balance as of March 31, 2018. The current and non-current deferred revenue balances at June 30, 2018 are $212.5 million and $0.1 million , respectively. Non-current deferred revenue is included in “Other long-term liabilities” in the accompanying consolidated balance sheet. Assets Recognized from the Costs to Obtain a Contract with a Customer The Company has determined that certain costs, primarily mobile app store fees, meet the requirements to be capitalized as a cost of obtaining a contract. The Company recognizes an asset for these costs if we expect to recover those costs. Mobile app store fees are amortized over the period of contract performance. The Company capitalizes and amortizes mobile app store fees over the terms of the applicable subscriptions. During the three and six months ended June 30, 2018 , the Company recognized expense of $67.6 million and $130.3 million , respectively, related to these contracts. The contract asset balance at June 30, 2018 related to costs to obtain a contract is $27.9 million . Disaggregation of Revenue The following table presents disaggregated revenue: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) Direct Revenue: North America $ 222,163 $ 178,505 $ 433,520 $ 353,833 International 185,564 120,918 366,944 233,342 Total Direct Revenue 407,727 299,423 800,464 587,175 Indirect Revenue (principally advertising revenue) 13,469 10,149 28,099 21,161 Total Revenue $ 421,196 $ 309,572 $ 828,563 $ 608,336 |
THE COMPANY AND SUMMARY OF SI19
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows: June 30, 2018 December 31, 2017 June 30, 2017 December 31, 2016 (In thousands) Cash and cash equivalents $ 309,761 $ 272,624 $ 492,705 $ 253,651 Restricted cash included in other current assets 134 137 129 120 Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flow $ 309,895 $ 272,761 $ 492,834 $ 253,771 |
Schedule of Restrictions on Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows: June 30, 2018 December 31, 2017 June 30, 2017 December 31, 2016 (In thousands) Cash and cash equivalents $ 309,761 $ 272,624 $ 492,705 $ 253,651 Restricted cash included in other current assets 134 137 129 120 Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flow $ 309,895 $ 272,761 $ 492,834 $ 253,771 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents disaggregated revenue: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) Direct Revenue: North America $ 222,163 $ 178,505 $ 433,520 $ 353,833 International 185,564 120,918 366,944 233,342 Total Direct Revenue 407,727 299,423 800,464 587,175 Indirect Revenue (principally advertising revenue) 13,469 10,149 28,099 21,161 Total Revenue $ 421,196 $ 309,572 $ 828,563 $ 608,336 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Components of Assets Held For Sale and Discontinued Operations | The key components of loss from discontinued operations for the three and six months ended June 30, 2017 consist of the following: Three Months Ended June 30, Six Months Ended June 30, 2017 2017 (In thousands) Revenue $ — $ 23,980 Operating costs and expenses — (29,601 ) Operating loss — (5,621 ) Other expense (71 ) (1,003 ) Income tax benefit — 2,062 Loss from discontinued operations $ (71 ) $ (4,562 ) |
FAIR VALUE MEASUREMENTS AND F22
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the Company’s financial instruments that are measured at fair value on a recurring basis: June 30, 2018 Quoted Market Significant Other Observable Inputs Significant Total (In thousands) Assets: Cash equivalents: Money market funds $ 62,018 $ — $ — $ 62,018 Time deposits — 35,000 — 35,000 Total $ 62,018 $ 35,000 $ — $ 97,018 Liabilities: Contingent consideration arrangements $ — $ — $ (1,910 ) $ (1,910 ) December 31, 2017 Quoted Market Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs (Level 3) Total Fair Value Measurements (In thousands) Assets: Cash equivalents: Money market funds $ 71,197 $ — $ — $ 71,197 Time deposits — 35,023 — 35,023 Total $ 71,197 $ 35,023 $ — $ 106,220 Liabilities: Contingent consideration arrangements $ — $ — $ (2,647 ) $ (2,647 ) |
Schedule of Changes in Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The Company’s financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are its contingent consideration arrangements. Three Months Ended June 30, 2018 2017 (In thousands) Balance at April 1 $ (1,965 ) $ (21,821 ) Total net losses: Fair value adjustments (54 ) (2,994 ) Included in other comprehensive income (loss) 109 (14 ) Balance at June 30 $ (1,910 ) $ (24,829 ) Six Months Ended June 30, 2018 2017 (In thousands) Balance at January 1 $ (2,647 ) $ (19,418 ) Total net losses: Fair value adjustments (210 ) (4,338 ) Included in other comprehensive loss (1 ) (1,073 ) Settlements 948 — Balance at June 30 $ (1,910 ) $ (24,829 ) |
Schedule of Carrying Value and Fair Value of Financial Instruments | The following table presents the carrying value and the fair value of financial instruments measured at fair value only for disclosure purposes. June 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Long-term debt, net $ (1,254,265 ) $ (1,265,255 ) $ (1,252,696 ) $ (1,320,289 ) |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of: June 30, 2018 December 31, 2017 (In thousands) Term Loan due November 16, 2022 (the “Term Loan”) $ 425,000 $ 425,000 6.375% Senior Notes due June 1, 2024 (the “2016 Senior Notes”); interest payable each June 1 and December 1 400,000 400,000 5.00% Senior Notes due December 15, 2027 (the “2017 Senior Notes”); interest payable each June 15 and December 15, which commences June 15, 2018 450,000 450,000 Total debt 1,275,000 1,275,000 Less: Unamortized original issue discount 8,010 8,668 Less: Unamortized debt issuance costs 12,725 13,636 Total long-term debt, net $ 1,254,265 $ 1,252,696 |
ACCUMULATED OTHER COMPREHENSI24
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table presents the components of accumulated other comprehensive loss and items reclassified out of accumulated other comprehensive loss into earnings. For the three and six months ended June 30, 2018 and 2017, the Company’s accumulated other comprehensive loss relates to foreign currency translation adjustments. Three Months Ended June 30, 2018 2017 (In thousands) Balance at April 1 $ (81,921 ) $ (157,088 ) Other comprehensive (loss) income (39,075 ) 15,129 Balance at June 30 $ (120,996 ) $ (141,959 ) Six Months Ended June 30, 2018 2017 (In thousands) Balance at January 1 $ (112,318 ) $ (176,384 ) Other comprehensive (loss) income before reclassifications (8,678 ) 33,711 Amounts reclassified into earnings — 714 Net period other comprehensive (loss) income (8,678 ) 34,425 Balance at June 30 $ (120,996 ) $ (141,959 ) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings per Share | The following tables set forth the computation of the basic and diluted earnings per share attributable to Match Group shareholders: Three Months Ended June 30, 2018 2017 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator Net earnings from continuing operations $ 131,358 $ 131,358 $ 51,544 $ 51,544 Net loss (earnings) attributable to noncontrolling interests 1,142 1,142 (43 ) (43 ) Net earnings from continuing operations attributable to Match Group, Inc. shareholders 132,500 132,500 51,501 51,501 Loss from discontinued operations, net of tax — — (71 ) (71 ) Net earnings attributable to Match Group, Inc. shareholders $ 132,500 $ 132,500 $ 51,430 $ 51,430 Denominator Basic weighted average common shares outstanding 277,115 277,115 258,973 258,973 Dilutive securities including stock options, RSU awards, and subsidiary denominated equity (a)(b) — 19,881 — 47,860 Dilutive weighted average common shares outstanding 277,115 296,996 258,973 306,833 Earnings (loss) per share: Earnings per share from continuing operations $ 0.48 $ 0.45 $ 0.20 $ 0.17 Loss per share from discontinued operations, net of tax $ — $ — $ 0.00 $ 0.00 Earnings per share attributable to Match Group, Inc. shareholders $ 0.48 $ 0.45 $ 0.20 $ 0.17 Six Months Ended June 30, 2018 2017 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator Net earnings from continuing operations $ 231,036 $ 231,036 $ 76,099 $ 76,099 Net loss (earnings) attributable to noncontrolling interests 1,200 1,200 (54 ) (54 ) Net earnings from continuing operations attributable to Match Group, Inc. shareholders 232,236 232,236 76,045 76,045 Loss from discontinued operations, net of tax — — (4,562 ) (4,562 ) Net earnings attributable to Match Group, Inc. shareholders $ 232,236 $ 232,236 $ 71,483 $ 71,483 Denominator Basic weighted average common shares outstanding 276,198 276,198 257,517 257,517 Dilutive securities including stock options, RSU awards, and subsidiary denominated equity (a)(b) — 21,376 — 41,859 Dilutive weighted average common shares outstanding 276,198 297,574 257,517 299,376 Earnings (loss) per share: Earnings per share from continuing operations $ 0.84 $ 0.78 $ 0.30 $ 0.25 Loss per share from discontinued operations, net of tax $ — $ — $ (0.02 ) $ (0.02 ) Earnings per share attributable to Match Group, Inc. shareholders $ 0.84 $ 0.78 $ 0.28 $ 0.24 ______________________ (a) If the effect is dilutive, weighted average common shares outstanding include the incremental shares that would be issued upon the assumed exercise of stock options and subsidiary denominated equity or vesting of restricted stock units (“RSUs”). For the three and six months ended June 30, 2018 , 0.1 million and 0.3 million , potentially dilutive securities, respectively and for the three and six months ended June 30, 2017 , 0.3 million and 5.0 million , respectively, are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. (b) Market-based awards and performance-based stock options (“PSOs”) and units (“PSUs”) are considered contingently issuable shares. Shares issuable upon exercise or vesting of market-based awards, PSOs, and PSUs are included in the denominator for earnings per share if (i) the applicable market or performance condition(s) has been met and (ii) the inclusion of the market-based awards, PSOs and PSUs is dilutive for the respective reporting periods. For each of the three and six months ended June 30, 2018 , 1.9 million shares underlying market-based awards, PSOs, and PSUs, and for the three and six months ended June 30, 2017 , 1.3 million and 2.0 million shares underlying market-based awards, PSOs, and PSUs, respectively, were excluded from the calculation of diluted earnings per share because the market or performance conditions had not been met. |
THE COMPANY AND SUMMARY OF SI26
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | 6 Months Ended |
Jun. 30, 2018segmentlanguagecountry | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of languages where products are available | language | 42 |
Number of countries where products are available (more than) | country | 190 |
Number of operating segments | segment | 1 |
IAC | Match Group, Inc. | |
Class of Stock | |
Economic ownership interest (as a percent) | 81.20% |
Voting interest (as a percent) | 97.60% |
THE COMPANY AND SUMMARY OF SI27
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 309,761 | $ 272,624 | $ 492,705 | $ 253,651 |
Restricted cash included in other current assets | 134 | 137 | 129 | 120 |
Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flow | $ 309,895 | $ 272,761 | $ 492,834 | $ 253,771 |
REVENUE RECOGNITION - Narrative
REVENUE RECOGNITION - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | |||
Deferred revenue | $ 198,300 | ||
Deferred revenue recognized | $ 156,500 | $ 183,900 | |
Deferred revenue | 212,482 | 212,482 | $ 198,095 |
Noncurrent deferred revenue | 100 | 100 | |
Amortization expense recognized related to contract cost assets | 67,600 | 130,300 | |
Capitalization of costs incurred to obtain contract | $ 27,900 | $ 27,900 |
REVENUE RECOGNITION - Disaggreg
REVENUE RECOGNITION - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 421,196 | $ 309,572 | $ 828,563 | $ 608,336 |
Direct Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 407,727 | 299,423 | 800,464 | 587,175 |
Indirect Revenue (principally advertising revenue) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 13,469 | 10,149 | 28,099 | 21,161 |
North America | Direct Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 222,163 | 178,505 | 433,520 | 353,833 |
International | Direct Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 185,564 | $ 120,918 | $ 366,944 | $ 233,342 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax Contingency | |||||
Income tax benefit (provision) | $ (11,535) | $ (2,809) | $ 937 | $ (12,197) | |
Effective income tax rate (as a percent) | 8.00% | 5.00% | 14.00% | ||
Unrecognized tax benefits including interest accrued | $ 25,900 | 25,900 | $ 26,800 | ||
Unrecognized tax benefits that would reduce income tax expense | 24,400 | 24,400 | 25,300 | ||
Decrease in unrecognized tax benefits unrelated to Federal income taxes statute of limitations expiring within twelve months of current reporting period | 10,800 | 10,800 | |||
Gross deferred tax asset | 145,000 | 145,000 | |||
IAC | |||||
Income Tax Contingency | |||||
Unrecognized tax benefits including interest accrued | $ 17,800 | $ 17,800 | $ 17,600 |
DISCONTINUED OPERATIONS - Narra
DISCONTINUED OPERATIONS - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Non-dating | Discontinued Operations | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Loss on sale of business | $ 1 |
DISCONTINUED OPERATIONS - Compo
DISCONTINUED OPERATIONS - Components of Income from Discontinued Operations (Details) - Non-dating - Discontinued Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenue | $ 0 | $ 23,980 |
Operating costs and expenses | 0 | (29,601) |
Operating loss | 0 | (5,621) |
Other expense | (71) | (1,003) |
Income tax benefit | 0 | 2,062 |
Loss from discontinued operations | $ (71) | $ (4,562) |
FAIR VALUE MEASUREMENTS AND F33
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2017USD ($) | Jun. 30, 2018USD ($)arrangement | Dec. 31, 2017USD ($) | |
Contingent Consideration Arrangements | |||
Number of contingent consideration arrangements related to business acquisitions | arrangement | 2 | ||
Contingent consideration payments maximum | $ 2,000,000 | ||
Contingent consideration arrangement liability, current | 1,900,000 | $ 600,000 | |
Contingent consideration arrangement liability, non-current | 0 | 2,000,000 | |
Long-Term Investments | |||
Carrying value of long-term investments | $ 10,200,000 | $ 11,100,000 | |
Other-than-temporary impairment charge on long-term investments | $ 2,300,000 | ||
Contingent Consideration Arrangements | |||
Contingent Consideration Arrangements | |||
Discount rate | 0.12 | 0.12 |
FAIR VALUE MEASUREMENTS AND F34
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Cash equivalents | $ 97,018 | $ 106,220 |
Liabilities: | ||
Contingent consideration arrangements | (1,910) | (2,647) |
Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash equivalents | 62,018 | 71,197 |
Liabilities: | ||
Contingent consideration arrangements | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash equivalents | 35,000 | 35,023 |
Liabilities: | ||
Contingent consideration arrangements | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Liabilities: | ||
Contingent consideration arrangements | (1,910) | (2,647) |
Money market funds | ||
Assets: | ||
Cash equivalents | 62,018 | 71,197 |
Money market funds | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash equivalents | 62,018 | 71,197 |
Money market funds | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Money market funds | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Time deposits | ||
Assets: | ||
Cash equivalents | 35,000 | 35,023 |
Time deposits | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Time deposits | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash equivalents | 35,000 | 35,023 |
Time deposits | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash equivalents | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS AND F35
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Changes in Level 3 Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Balance at beginning of period | $ (1,965) | $ (21,821) | $ (2,647) | $ (19,418) |
Fair value adjustments | (54) | (2,994) | (210) | (4,338) |
Included in other comprehensive loss | 109 | (14) | (1) | (1,073) |
Settlements | 948 | 0 | ||
Balance at end of period | $ (1,910) | $ (24,829) | $ (1,910) | $ (24,829) |
FAIR VALUE MEASUREMENTS AND F36
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Carrying Value and Fair Value of Financial Instruments (Details) - Level 2 - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt, fair value disclosure | $ (1,254,265) | $ (1,252,696) |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt, fair value disclosure | $ (1,265,255) | $ (1,320,289) |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) | Dec. 04, 2017USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 01, 2016USD ($) |
Long-term Debt | ||||
Debt outstanding | $ 1,275,000,000 | $ 1,275,000,000 | ||
Senior Notes | Maximum | ||||
Long-term Debt | ||||
Maximum leverage ratio | 5 | |||
Senior Notes | 5.00% Senior Notes due December 15, 2027 | ||||
Long-term Debt | ||||
Issuance amount relative to par value (as a percent) | 99.027% | |||
Proceeds from issuance of debt | $ 445,600,000 | |||
Stated interest rate (as a percent) | 5.00% | 5.00% | ||
Debt outstanding | $ 450,000,000 | $ 450,000,000 | ||
Senior Notes | 6.375% Senior Notes due June 1, 2024 | ||||
Long-term Debt | ||||
Stated interest rate (as a percent) | 6.375% | 6.375% | ||
Aggregate principal of debt instrument | $ 400,000,000 | |||
Debt outstanding | $ 400,000,000 | $ 400,000,000 | ||
Term Loan | Term Loan due November 16, 2022 | ||||
Long-term Debt | ||||
Debt outstanding | $ 425,000,000 | $ 425,000,000 | ||
Effective interest rate (as a percent) | 4.59% | 3.85% | ||
Term Loan | Term Loan due November 16, 2022 | LIBOR | ||||
Long-term Debt | ||||
Basis spread on variable rate (as a percent) | 2.50% | 2.50% | ||
Line of Credit | Revolving Credit Facility | ||||
Long-term Debt | ||||
Maximum borrowing capacity on Credit Facility | $ 500,000,000 | |||
Outstanding borrowings under the Credit Facility | $ 0 | $ 0 | ||
Annual commitment fee (as a percent) | 0.30% | |||
Line of Credit | Revolving Credit Facility | Minimum | ||||
Long-term Debt | ||||
Minimum interest coverage ratio | 2.5 | |||
Line of Credit | Revolving Credit Facility | Maximum | ||||
Long-term Debt | ||||
Maximum leverage ratio | 5 | |||
Senior Notes | 6.75% Senior Notes due December 15, 2022 | ||||
Long-term Debt | ||||
Stated interest rate (as a percent) | 6.75% |
LONG-TERM DEBT - Summary (Detai
LONG-TERM DEBT - Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Long-term Debt | ||
Total debt | $ 1,275,000 | $ 1,275,000 |
Less: Unamortized original issue discount | 8,010 | 8,668 |
Less: Unamortized debt issuance costs | 12,725 | 13,636 |
Total long-term debt, net | 1,254,265 | 1,252,696 |
Term Loan | Term Loan due November 16, 2022 (the “Term Loan”) | ||
Long-term Debt | ||
Total debt | 425,000 | 425,000 |
Senior Notes | 6.375% Senior Notes due June 1, 2024 (the “2016 Senior Notes”); interest payable each June 1 and December 1 | ||
Long-term Debt | ||
Total debt | $ 400,000 | $ 400,000 |
Stated interest rate (as a percent) | 6.375% | 6.375% |
Senior Notes | 5.00% Senior Notes due December 15, 2027 (the “2017 Senior Notes”); interest payable each June 15 and December 15, which commences June 15, 2018 | ||
Long-term Debt | ||
Total debt | $ 450,000 | $ 450,000 |
Stated interest rate (as a percent) | 5.00% | 5.00% |
ACCUMULATED OTHER COMPREHENSI39
ACCUMULATED OTHER COMPREHENSIVE LOSS - Summary (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Loss | ||||
Balance at beginning of period | $ 501,249,000 | |||
Other comprehensive (loss) income before reclassifications | $ (39,075,000) | $ 15,129,000 | (8,678,000) | $ 33,711,000 |
Amounts reclassified into earnings | 0 | 714,000 | ||
Net period other comprehensive (loss) income | (8,678,000) | 34,425,000 | ||
Balance at end of period | 563,356,000 | 563,356,000 | ||
Tax benefit / provision in accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Accumulated Other Comprehensive (Loss) Income | ||||
Accumulated Other Comprehensive Loss | ||||
Balance at beginning of period | (81,921,000) | (157,088,000) | (112,318,000) | (176,384,000) |
Balance at end of period | $ (120,996,000) | $ (141,959,000) | $ (120,996,000) | $ (141,959,000) |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator: Basic | ||||
Net earnings from continuing operations | $ 131,358 | $ 51,544 | $ 231,036 | $ 76,099 |
Net loss (earnings) attributable to noncontrolling interests | 1,142 | (43) | 1,200 | (54) |
Net earnings from continuing operations attributable to Match Group, Inc. shareholders | 132,500 | 51,501 | 232,236 | 76,045 |
Earnings from discontinued operations, net of tax | 0 | (71) | 0 | (4,562) |
Net earnings attributable to Match Group, Inc. shareholders | 132,500 | 51,430 | 232,236 | 71,483 |
Numerator: Diluted | ||||
Net earnings from continuing operations | 131,358 | 51,544 | 231,036 | 76,099 |
Net loss (earnings) attributable to noncontrolling interests | 1,142 | (43) | 1,200 | (54) |
Net earnings from continuing operations attributable to Match Group, Inc. shareholders | 132,500 | 51,501 | 232,236 | 76,045 |
Earnings from discontinued operations, net of tax | 0 | (71) | 0 | (4,562) |
Net earnings attributable to Match Group, Inc. shareholders | $ 132,500 | $ 51,430 | $ 232,236 | $ 71,483 |
Denominator: Basic | ||||
Basic weighted average common shares outstanding (shares) | 277,115 | 258,973 | 276,198 | 257,517 |
Denominator: Diluted | ||||
Basic weighted average common shares outstanding (shares) | 277,115 | 258,973 | 276,198 | 257,517 |
Dilutive securities including subsidiary denominated equity, stock options and RSU awards (shares) | 19,881 | 47,860 | 21,376 | 41,859 |
Dilutive weighted average common shares outstanding (shares) | 296,996 | 306,833 | 297,574 | 299,376 |
Earnings (loss) per share: | ||||
Earnings per share from continuing operations - basic (USD per share) | $ 0.48 | $ 0.20 | $ 0.84 | $ 0.30 |
Earnings per share from continuing operations - diluted (USD per share) | 0.45 | 0.17 | 0.78 | 0.25 |
Loss per share from discontinued operations, net of tax - basic (USD per share) | 0 | 0 | 0 | (0.02) |
Loss per share from discontinued operations, net of tax - diluted (USD per share) | 0 | 0 | 0 | (0.02) |
Earnings per share attributable to Match Group, Inc. shareholders - basic (USD per share) | 0.48 | 0.20 | 0.84 | 0.28 |
Earnings per share attributable to Match Group, Inc. shareholders - diluted (USD per share) | $ 0.45 | $ 0.17 | $ 0.78 | $ 0.24 |
Stock Options and RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded from the calculation of diluted earnings per share (shares) | 100 | 300 | 300 | 5,000 |
Market-Based Awards, PSOs, and PSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded from the calculation of diluted earnings per share (shares) | 1,900 | 1,300 | 1,900 | 2,000 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - IAC - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Services Agreements | ||||
Related Party Transaction | ||||
Amount of related party transaction | $ 1.9 | $ 2.6 | $ 3.7 | $ 5.4 |
Leased Office Space | ||||
Related Party Transaction | ||||
Amount of related party transaction | $ 1.3 | $ 1.3 | $ 2.6 | $ 2.6 |
Employee Matters Agreement | ||||
Related Party Transaction | ||||
Stock issued pursuant to employee matters agreement (shares) | 2.3 | 0.5 | ||
Stock issued as reimbursement for IAC stock issued in settlement of equity plan (shares) | 1.9 | |||
Stock issued as reimbursement for IAC stock issued in connection with exercise and vesting of equity awards (shares) | 0.4 | 0.5 |