Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jun. 30, 2014 | Jan. 30, 2015 | |
Entity Registrant Name | IAC/INTERACTIVECORP | ||
Entity Central Index Key | 891103 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $5,330,631,790 | ||
Common stock | |||
Entity Common Stock, Shares Outstanding | 78,362,828 | ||
Class B convertible common stock | |||
Entity Common Stock, Shares Outstanding | 5,789,499 |
CONSOLIDATED_BALANCE_SHEET
CONSOLIDATED BALANCE SHEET (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $990,405 | $1,100,444 |
Marketable securities | 160,648 | 6,004 |
Accounts receivable, net of allowance of $12,437 and $8,540, respectively | 236,086 | 207,408 |
Other current assets | 166,742 | 161,530 |
Total current assets | 1,553,881 | 1,475,386 |
Property and equipment, net | 302,459 | 293,964 |
Goodwill | 1,754,926 | 1,675,323 |
Intangible assets, net | 491,936 | 445,336 |
Long-term investments | 114,983 | 179,990 |
Other non-current assets | 56,693 | 164,685 |
TOTAL ASSETS | 4,274,878 | 4,234,684 |
LIABILITIES: | ||
Accounts payable, trade | 81,163 | 77,653 |
Deferred revenue | 194,988 | 158,206 |
Accrued Liabilities, Current | 397,803 | 351,038 |
Total current liabilities | 673,954 | 586,897 |
Total long-term debt | 1,080,000 | 1,080,000 |
Income taxes payable | 32,635 | 416,384 |
Deferred income taxes | 409,529 | 320,748 |
Other long-term liabilities | 45,191 | 58,393 |
Redeemable noncontrolling interests | 40,427 | 42,861 |
Commitments and contingencies | ||
SHAREHOLDERS' EQUITY: | ||
Additional paid-in capital | 11,415,617 | 11,562,567 |
Retained earnings (accumulated deficit) | 325,118 | -32,735 |
Accumulated other comprehensive loss | -87,700 | -13,046 |
Treasury stock 184,182,001 and 184,945,527 shares, respectively | -9,661,350 | -9,830,317 |
Total IAC shareholders' equity | 1,991,953 | 1,686,736 |
Noncontrolling interests | 1,189 | 42,665 |
Total shareholders' equity | 1,993,142 | 1,729,401 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,274,878 | 4,234,684 |
Common stock | ||
SHAREHOLDERS' EQUITY: | ||
Common stock | 252 | 251 |
Class B convertible common stock | ||
SHAREHOLDERS' EQUITY: | ||
Common stock | $16 | $16 |
CONSOLIDATED_BALANCE_SHEET_Par
CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance (in dollars) | $12,437 | $8,540 |
Treasury stock, shares | 184,182,001 | 184,945,527 |
Common stock | ||
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, authorized shares | 1,600,000,000 | 1,600,000,000 |
Common stock, issued shares | 252,170,058 | 250,982,079 |
Common stock, outstanding shares | 78,356,057 | 76,404,552 |
Class B convertible common stock | ||
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, authorized shares | 400,000,000 | 400,000,000 |
Common stock, issued shares | 16,157,499 | 16,157,499 |
Common stock, outstanding shares | 5,789,499 | 5,789,499 |
CONSOLIDATED_STATEMENT_OF_OPER
CONSOLIDATED STATEMENT OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue | $3,109,547 | $3,022,987 | $2,800,933 |
Operating costs and expenses: | |||
Cost of revenue (exclusive of depreciation shown separately below) | 883,176 | 1,003,721 | 991,688 |
Selling and marketing expense | 1,124,437 | 956,410 | 894,438 |
General and administrative expense | 443,610 | 378,142 | 386,461 |
Product development expense | 160,515 | 139,759 | 116,526 |
Depreciation | 61,156 | 58,909 | 52,481 |
Amortization of intangibles | 57,926 | 59,843 | 35,771 |
Total operating costs and expenses | 2,730,820 | 2,596,784 | 2,477,365 |
Operating income | 378,727 | 426,203 | 323,568 |
Equity in losses of unconsolidated affiliates | -9,697 | -6,615 | -25,345 |
Interest expense | -56,314 | -33,596 | -6,149 |
Other (expense) income, net | -42,787 | 30,309 | -3,012 |
Earnings from continuing operations before income taxes | 269,929 | 416,301 | 289,062 |
Income tax provision | -35,372 | -134,502 | -119,215 |
Earnings from continuing operations | 234,557 | 281,799 | 169,847 |
Earnings (loss) from discontinued operations, net of tax | 174,673 | 1,926 | -9,051 |
Net earnings | 409,230 | 283,725 | 160,796 |
Net loss (earnings) attributable to noncontrolling interests | 5,643 | 2,059 | -1,530 |
Net earnings attributable to IAC shareholders | 414,873 | 285,784 | 159,266 |
Per share information attributable to IAC shareholders: | |||
Basic earnings per share from continuing operations (in dollars per share) | $2.88 | $3.40 | $1.95 |
Diluted earnings per share from continuing operations (in dollars per share) | $2.71 | $3.27 | $1.81 |
Basic earnings per share (in dollars per share) | $4.98 | $3.42 | $1.85 |
Diluted earnings per share (in dollars per share) | $4.68 | $3.29 | $1.71 |
Dividends declared per share (in dollars per share) | $1.16 | $0.96 | $0.72 |
Non-cash compensation expense by function: | |||
Total non-cash compensation expense | 59,634 | 53,005 | 85,625 |
Cost of revenue | |||
Non-cash compensation expense by function: | |||
Total non-cash compensation expense | 949 | 2,863 | 6,219 |
Selling and marketing expense | |||
Non-cash compensation expense by function: | |||
Total non-cash compensation expense | 2,144 | 2,813 | 4,760 |
General and administrative expense | |||
Non-cash compensation expense by function: | |||
Total non-cash compensation expense | 49,862 | 42,487 | 68,640 |
Product development expense | |||
Non-cash compensation expense by function: | |||
Total non-cash compensation expense | $6,679 | $4,842 | $6,006 |
CONSOLIDATED_STATEMENT_OF_COMP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $409,230 | $283,725 | $160,796 |
Other comprehensive (loss) income, net of tax: | |||
Change in foreign currency translation adjustment | -66,874 | 7,353 | 712 |
Change in unrealized gains and losses of available-for-sale securities (net of tax benefits of $1,852, $3,050 and $3,981 in 2014, 2013 and 2012, respectively) | -8,591 | 15,442 | -19,827 |
Total other comprehensive (loss) income | -75,465 | 22,795 | -19,115 |
Comprehensive income | 333,765 | 306,520 | 141,681 |
Comprehensive loss (income) attributable to noncontrolling interests | 6,454 | -1,613 | -2,141 |
Comprehensive income attributable to IAC shareholders | $340,219 | $304,907 | $139,540 |
CONSOLIDATED_STATEMENT_OF_COMP1
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Tax benefit of change in unrealized gains and losses on available-for-sale securities | $1,852 | $3,050 | $3,981 |
CONSOLIDATED_STATEMENT_OF_SHAR
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (USD $) | Total | Redeemable Noncontrolling Interests | IAC | Common Stock | Common Stock | Additional Paid-in Capital | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Noncontrolling Interests |
In Thousands, unless otherwise specified | Class B convertible common stock | |||||||||
Redeemable noncontrolling interests, balance at the beginning of the period at Dec. 31, 2011 | $50,349 | |||||||||
Balance at the beginning of the period at Dec. 31, 2011 | 1,960,140 | 1,905,049 | 234 | 16 | 11,280,173 | -477,785 | -12,443 | -8,885,146 | 55,091 | |
Balance at the beginning of the period (in shares) at Dec. 31, 2011 | 234,101 | 16,157 | ||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||
Net (loss) earnings for the year | 161,914 | 159,266 | 159,266 | 2,648 | ||||||
Redeemable noncontrolling interests, net (loss) earnings for the year | -1,118 | |||||||||
Other comprehensive (loss) income, net of tax | -19,322 | -19,726 | -19,726 | 404 | ||||||
Redeemable noncontrolling interests, other comprehensive (loss) income, net of tax | 207 | |||||||||
Non-cash compensation expense | 85,625 | 82,807 | 0 | 0 | 82,807 | 0 | 0 | 0 | 2,818 | |
Issuance of common stock upon exercise of stock options, vesting of restricted stock units and other, net of withholding taxes | -16,498 | -16,498 | 5 | -16,503 | 0 | |||||
Issuance of common stock upon exercise of stock options, vesting of restricted stock units and other, net of withholding taxes (in shares) | 5,153 | |||||||||
Income tax benefit related to the exercise of stock options, vesting of restricted stock units and other | 49,967 | 49,967 | 49,967 | |||||||
Issuance of common stock upon exercise of warrants | 284,111 | 284,111 | 12 | 284,099 | ||||||
Issuance of common stock upon exercise of warrants (in shares) | 11,728 | |||||||||
Dividends | -68,901 | -68,901 | -68,901 | 0 | ||||||
Purchase of treasury stock | -716,072 | -716,072 | -716,072 | |||||||
Purchase of redeemable noncontrolling interests | -2,955 | |||||||||
Adjustment of redeemable noncontrolling interests and noncontrolling interests to fair value | -4,275 | 4,275 | -4,275 | -4,275 | 0 | |||||
Transfer from noncontrolling interests to redeemable noncontrolling interests | -10,049 | 10,049 | -10,049 | |||||||
Other | 995 | 995 | ||||||||
Redeemable noncontrolling interests, other | -2,681 | |||||||||
Redeemable noncontrolling interests, balance at the end of the period at Dec. 31, 2012 | 58,126 | |||||||||
Balance at the end of the period at Dec. 31, 2012 | 1,707,635 | 1,655,728 | 251 | 16 | 11,607,367 | -318,519 | -32,169 | -9,601,218 | 51,907 | |
Balance at the end of the period (in shares) at Dec. 31, 2012 | 250,982 | 16,157 | ||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||
Net (loss) earnings for the year | 286,989 | 285,784 | 285,784 | 1,205 | ||||||
Redeemable noncontrolling interests, net (loss) earnings for the year | -3,264 | |||||||||
Other comprehensive (loss) income, net of tax | 20,490 | 19,123 | 19,123 | 1,367 | ||||||
Redeemable noncontrolling interests, other comprehensive (loss) income, net of tax | 2,305 | |||||||||
Non-cash compensation expense | 53,005 | 51,883 | 51,883 | 1,122 | ||||||
Issuance of common stock upon exercise of stock options, vesting of restricted stock units and other, net of withholding taxes | -9,897 | -9,897 | -9,899 | 2 | ||||||
Income tax benefit related to the exercise of stock options, vesting of restricted stock units and other | 30,986 | 30,986 | 30,986 | |||||||
Dividends | -77,830 | -77,830 | -77,830 | 0 | ||||||
Purchase of treasury stock | -229,101 | 0 | -229,101 | 0 | -229,101 | |||||
Purchase of redeemable noncontrolling interests | -12,371 | -55,576 | -12,371 | |||||||
Adjustment of redeemable noncontrolling interests and noncontrolling interests to fair value | -40,638 | 40,638 | -42,947 | -42,947 | 2,309 | |||||
Transfer from noncontrolling interests to redeemable noncontrolling interests | -2,874 | 2,874 | -2,874 | |||||||
Other | -3,007 | -3,007 | -3,007 | 0 | ||||||
Redeemable noncontrolling interests, other | -2,242 | |||||||||
Redeemable noncontrolling interests, balance at the end of the period at Dec. 31, 2013 | 42,861 | 42,861 | ||||||||
Balance at the end of the period at Dec. 31, 2013 | 1,729,401 | 1,686,736 | 251 | 16 | 11,562,567 | -32,735 | -13,046 | -9,830,317 | 42,665 | |
Balance at the end of the period (in shares) at Dec. 31, 2013 | 250,982 | 16,157 | ||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||
Net (loss) earnings for the year | 414,873 | 414,873 | 414,873 | 0 | ||||||
Redeemable noncontrolling interests, net (loss) earnings for the year | -5,643 | |||||||||
Other comprehensive (loss) income, net of tax | -74,551 | -74,654 | -74,654 | 103 | ||||||
Redeemable noncontrolling interests, other comprehensive (loss) income, net of tax | -914 | |||||||||
Non-cash compensation expense | 59,076 | 558 | 59,362 | 59,362 | -286 | |||||
Issuance of common stock upon exercise of stock options, vesting of restricted stock units and other, net of withholding taxes | 1,628 | 1,628 | 1 | -167,340 | 168,967 | |||||
Issuance of common stock upon exercise of stock options, vesting of restricted stock units and other, net of withholding taxes (in shares) | 1,188 | |||||||||
Income tax benefit related to the exercise of stock options, vesting of restricted stock units and other | 37,451 | 37,451 | 37,451 | |||||||
Dividends | -96,577 | -96,577 | -39,557 | -57,020 | ||||||
Noncontrolling interests related to acquisitions | 17,886 | |||||||||
Purchase of redeemable noncontrolling interests | -50,662 | -41,743 | -50,662 | |||||||
Adjustment of redeemable noncontrolling interests and noncontrolling interests to fair value | -27,750 | 27,750 | -37,119 | -37,119 | 9,369 | |||||
Other | -253 | -253 | -253 | |||||||
Redeemable noncontrolling interests, other | -328 | |||||||||
Redeemable noncontrolling interests, balance at the end of the period at Dec. 31, 2014 | 40,427 | 40,427 | ||||||||
Balance at the end of the period at Dec. 31, 2014 | $1,993,142 | $1,991,953 | $252 | $16 | $11,415,617 | $325,118 | ($87,700) | ($9,661,350) | $1,189 | |
Balance at the end of the period (in shares) at Dec. 31, 2014 | 252,170 | 16,157 |
CONSOLIDATED_STATEMENT_OF_CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities attributable to continuing operations: | |||
Net earnings | $409,230 | $283,725 | $160,796 |
Less: earnings (loss) from discontinued operations, net of tax | 174,673 | 1,926 | -9,051 |
Earnings from continuing operations | 234,557 | 281,799 | 169,847 |
Adjustments to reconcile earnings from continuing operations to net cash provided by operating activities attributable to continuing operations: | |||
Non-cash compensation expense | 59,634 | 53,005 | 85,625 |
Depreciation | 61,156 | 58,909 | 52,481 |
Amortization of intangibles | 57,926 | 59,843 | 35,771 |
Excess Tax Benefit from Share-based Compensation | -44,957 | -32,891 | -57,101 |
Deferred income taxes | 76,869 | -9,096 | 37,076 |
Acquisition-related contingent consideration fair value adjustments | -13,367 | 343 | 0 |
Impairment of long-term investments | 66,601 | 5,268 | 8,685 |
Equity in losses of unconsolidated affiliates | 9,697 | 6,615 | 25,345 |
Gain on sales of long-term investments, assets and a business | -21,946 | -50,608 | -3,576 |
Changes in assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable | -19,918 | 10,421 | -30,991 |
Other assets | -3,606 | -34,632 | -22,991 |
Accounts payable and other current liabilities | 5,206 | -766 | -14,384 |
Income taxes payable | -94,492 | 49,191 | 47,010 |
Deferred revenue | 30,142 | -5,841 | 1,864 |
Other, net | 20,546 | 19,401 | 19,866 |
Net cash provided by operating activities attributable to continuing operations | 424,048 | 410,961 | 354,527 |
Cash flows from investing activities attributable to continuing operations: | |||
Acquisitions, net of cash acquired | -259,391 | -40,434 | -400,254 |
Capital expenditures | -57,233 | -80,311 | -51,201 |
Proceeds from maturities and sales of marketable debt securities | 21,644 | 12,502 | 195,501 |
Purchases of marketable debt securities | -175,826 | -53,952 | |
Proceeds from sales of long-term investments, assets and a business | 58,388 | 83,091 | 14,616 |
Purchases of long-term investments | -24,334 | -51,080 | -36,094 |
Other, net | -3,042 | -3,529 | -9,923 |
Net cash used in investing activities attributable to continuing operations | -439,794 | -79,761 | -341,307 |
Cash flows from financing activities attributable to continuing operations: | |||
Proceeds from issuance of long-term debt | 500,000 | 500,000 | |
Principal payments on long-term debt | 0 | -15,844 | 0 |
Purchase of treasury stock | -264,214 | -691,830 | |
Dividends | -97,338 | -79,189 | -68,163 |
Proceeds from Issuance or Sale of Equity | 1,609 | -5,077 | 262,841 |
Excess tax benefits from stock-based awards | 44,957 | 32,891 | 57,101 |
Purchase of noncontrolling Interests | -33,165 | -67,947 | -4,891 |
Funds returned from (transferred to) escrow for Meetic tender offer | 12,354 | -71,512 | 0 |
Acquisition-related contingent consideration payments | -8,109 | -256 | -10,781 |
Debt issuance Costs | -383 | -7,399 | -11,001 |
Other, net | -905 | -3,787 | 244 |
Net cash (used in) provided by financing activities attributable to continuing operations | -80,980 | 17,666 | 33,520 |
Total cash (used in) provided by continuing operations | -96,726 | 348,866 | 46,740 |
Total cash used in discontinued operations | -145 | -1,877 | -3,472 |
Effect of exchange rate changes on cash and cash equivalents | -13,168 | 3,478 | 2,556 |
Net (decrease) increase in cash and cash equivalents | -110,039 | 350,467 | 45,824 |
Cash and cash equivalents at beginning of period | 1,100,444 | 749,977 | 704,153 |
Cash and cash equivalents at end of period | $990,405 | $1,100,444 | $749,977 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION |
IAC is a leading media and Internet company. The Company is organized into four segments: The Match Group, which consists of dating, education and fitness businesses with brands such as Match, OkCupid, Tinder, The Princeton Review and DailyBurn; Search & Applications, which includes brands such as About.com, Ask.com, Dictionary.com and Investopedia; Media, which includes businesses such as Vimeo, Electus, The Daily Beast and CollegeHumor; and eCommerce, which includes HomeAdvisor and ShoeBuy. IAC's brands and products are among the most recognized in the world, reaching users in over 200 countries. | |
All references to "IAC," the "Company," "we," "our" or "us" in this report are to IAC/InterActiveCorp. | |
Search & Applications | |
Our Search & Applications segment consists of: Websites, including Ask.com, About.com, CityGrid, Dictionary.com, Investopedia, PriceRunner and Ask.fm, through which we provide search services, content and other services; and Applications, including our direct-to-consumer downloadable applications operations ("B2C"), our partnership operations ("B2B"), SlimWare and Apalon. | |
The Match Group | |
The Match Group segment consists of our North America dating businesses (which include Match, Chemistry, People Media, OkCupid, Tinder and other dating businesses operating within the United States and Canada), our International dating businesses (which include Meetic, Tinder and all other dating businesses operating outside of the United States and Canada) and our non-dating businesses, The Princeton Review, Tutor.com and DailyBurn. | |
Through the brands and businesses within our dating businesses, we are a leading provider of subscription-based and ad-supported online personals services in North America, Europe, Latin America, Australia and Asia. We provide these services through websites and applications that we own and operate. | |
The Match Group's non-dating businesses consist of The Princeton Review and Tutor.com, which together provide a variety of educational services including in-person and online test preparation and tutoring, as well as DailyBurn, a health and fitness property that provides streaming fitness and workout videos across a variety of platforms, including iOS, Android, Xbox and Internet-enabled television platforms. | |
Media | |
Our Media segment consists primarily of Vimeo, Electus and The Daily Beast. | |
Vimeo operates a global video sharing platform for creators and their audiences. Vimeo offers video creators simple, professional-grade tools to share, distribute and monetize content online, and provides viewers with a clutter-free environment to watch content across a variety of Internet-enabled devices. | |
Electus is an integrated multimedia entertainment studio that unites producers, creators, advertisers and distributors to produce video content for distribution across a variety of platforms in the United States and various jurisdictions abroad. Electus also operates Electus Digital, which consists of the following websites and properties: CollegeHumor.com, Dorkly.com and WatchLOUD.com; YouTube channels WatchLOUD, Nuevon and Hungry; and Big Breakfast (a production company). | |
The Daily Beast is a website dedicated to news, commentary, culture and entertainment that curates and publishes existing and original online content from its own roster of contributors in the United States. | |
eCommerce | |
Our eCommerce segment consists principally of HomeAdvisor and ShoeBuy. | |
HomeAdvisor is a leading online marketplace for matching consumers with home services professionals in the United States, as well as in France and the Netherlands under various brands. | |
ShoeBuy is a leading Internet retailer of footwear and related apparel and accessories. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | ||
The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP"). | ||
Basis of Consolidation and Accounting for Investments | ||
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. Intercompany transactions and accounts have been eliminated. | ||
Investments in the common stock or in-substance common stock of entities in which the Company has the ability to exercise significant influence over the operating and financial matters of the investee, but does not have a controlling financial interest, are accounted for using the equity method. Investments in the common stock or in-substance common stock of entities in which the Company does not have the ability to exercise significant influence over the operating and financial matters of the investee are accounted for using the cost method. Investments in companies that IAC does not control, which are not in the form of common stock or in-substance common stock, are also accounted for using the cost method. The Company evaluates each cost and equity method investment for impairment on a quarterly basis and recognizes an impairment loss if a decline in value is determined to be other-than-temporary. Such impairment evaluations include, but are not limited to: the current business environment, including competition; going concern considerations such as financial condition, the rate at which the investee utilizes cash and the investee's ability to obtain additional financing to achieve its business plan; the need for changes to the investee's existing business model due to changing business and regulatory environments and its ability to successfully implement necessary changes; and comparable valuations. If the Company has not identified events or changes in circumstances that may have a significant adverse effect on the fair value of a cost method investment, then the fair value of such cost method investment is not estimated, as it is impracticable to do so. | ||
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 those estimates. | ||
On an ongoing basis, the Company evaluates its estimates and judgments including those related to: the fair values of marketable securities and other investments; the recoverability of goodwill and indefinite-lived intangible assets; the useful lives and recovery of definite-lived intangible assets and property and equipment; the carrying value of accounts receivable, including the determination of the allowance for doubtful accounts and revenue reserves; the fair value of acquisition-related contingent consideration; the liabilities for uncertain tax positions; 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. | ||
Revenue Recognition | ||
The Company recognizes revenue when persuasive evidence of an arrangement exists, services are rendered or merchandise is delivered to customers, the fee or price charged is fixed or determinable and collectability is reasonably assured. Deferred revenue is recorded when payments are received in advance of the Company's rendering of services or delivery of merchandise. | ||
Search & Applications | ||
The Search & Applications segment's revenue consists principally of advertising revenue, which is generated primarily through the display of paid listings in response to search queries, as well as from display advertisements appearing on its websites and to a lesser extent, the syndication of search results generated by Ask-branded destination search websites. The Company obtains the substantial majority of its paid listings from third-party providers, primarily Google Inc. ("Google"). Paid listings are priced on a price per click basis and when a user submits a search query and then clicks on a Google paid listing displayed in response to the query, Google bills the advertiser that purchased the paid listing directly and shares a portion of the fee charged to the advertiser with the Company. The Company recognizes paid listing revenue from Google when it delivers the user's click. In cases where the user's click is generated due to the efforts of a third-party distributor, the Company recognizes the amount due from Google as revenue and records the revenue share or other payment obligation to the third-party distributor as traffic acquisition costs. | ||
Search & Applications also generates revenue from subscription fees, which is recognized over the terms of the applicable subscriptions (which range from one to two years) and from sales of apps and in-app purchases, which is recognized at the time of the sale. | ||
The Match Group | ||
Revenue of the dating businesses is derived principally from subscription fees for subscription-based online personals and related services. Subscription fee revenue is recognized over the terms of the applicable subscriptions, which primarily range from one to six months. Deferred revenue at the dating businesses is $117.9 million and $116.5 million at December 31, 2014 and 2013, respectively. The dating businesses also earn revenue from online advertising, which is recognized when an ad is displayed, and the purchase of add-on or premium features, which is recognized based on usage. | ||
The Princeton Review and Tutor's revenue consists primarily of fees received for in-person and online test preparation classes, access to online test preparation materials and individual tutoring services. Fees from classes and access to online materials are recognized over the period of the course and the period of the online access, respectively. Tutoring fees are generally collected in the form of subscription fees that entitle the subscriber to a certain number of tutoring sessions over a certain period of time. These fees are recognized over the term of the subscription based on usage. | ||
DailyBurn's revenue consists primarily of subscription fee revenue, which is recognized over the terms for the applicable subscriptions, which range from one to twelve months. | ||
Media | ||
Revenue of businesses included in this segment is generated primarily through media production, subscriptions and advertising. Media production revenue is recognized when the production is available for the customer to broadcast or exhibit, subscription fee revenue is recognized over the terms of the applicable subscriptions, which are one month or one year, and advertising revenue is recognized when an ad is displayed or over the period earned. | ||
eCommerce | ||
HomeAdvisor's lead acceptance revenue is generated and recognized when an in-network home service professional is delivered a consumer lead. HomeAdvisor's membership subscription revenue is generated through subscription sales to service professionals and is deferred and recognized over the terms of the memberships, which are one month, three months, or one year. HomeAdvisor's website hosting revenue is deferred and recognized over the period of the hosting agreement. | ||
ShoeBuy's revenue consists of merchandise sales, reduced by incentive discounts and sales returns, and is recognized when delivery to the customer has occurred. Delivery is considered to have occurred when the customer takes title and assumes the risks and rewards of ownership, which is on the date of shipment. Accruals for returned merchandise are based on historical experience. Shipping and handling fees billed to customers are recorded as revenue. The costs associated with shipping goods to customers are recorded as cost of revenue. | ||
Cash and Cash Equivalents | ||
Cash and cash equivalents include cash and short-term investments, with maturities of less than 91 days from the date of purchase. Domestically, cash equivalents primarily consist of commercial paper rated A2/P2 or better and AAA rated money market funds. Internationally, cash equivalents primarily consist of AAA rated money market funds and time deposits. | ||
Marketable Securities | ||
At December 31, 2014, marketable securities consist of short-to-medium-term debt securities issued by investment grade corporate issuers and an equity security. The Company invests in marketable debt securities with active secondary or resale markets to ensure portfolio liquidity to fund current operations or satisfy other cash requirements as needed. The Company also invests in marketable equity securities as part of its investment strategy. All marketable securities are classified as available-for-sale and are reported at fair value. The unrealized gains and losses on marketable securities, net of tax, are included in accumulated other comprehensive income as a separate component of shareholders' equity. The specific-identification method is used to determine the cost of securities sold and the amount of unrealized gains and losses reclassified out of accumulated other comprehensive income into earnings. | ||
The Company employs a methodology that considers available evidence in evaluating potential other-than-temporary impairments of its investments. Investments are considered to be impaired when a decline in fair value below the amortized cost basis is determined to be other-than-temporary. Factors considered in determining whether a loss is other-than-temporary include the length of time and extent to which fair value has been less than the amortized cost basis, the financial condition and near-term prospects of the issuer, and whether it is not more likely than not that the Company will be required to sell the security before the recovery of the amortized cost basis, which may be maturity. If a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded in current earnings and a new cost basis in the investment is established. | ||
Certain Risks and Concentrations | ||
A substantial portion of the Company's revenue is derived from online advertising, the market for which is highly competitive and rapidly changing. Significant changes in this industry or changes in advertising spending behavior or in customer buying behavior could adversely affect our operating results. Most of the Company's online advertising revenue is attributable to a services agreement with Google, which expires on March 31, 2016. Our services agreement requires that we comply with certain guidelines promulgated by Google. Subject to certain limitations, Google may unilaterally update its policies and guidelines, which could require modifications to, or prohibit and/or render obsolete certain of our products, services and/or business practices, which could be costly to address or otherwise have an adverse effect on our business, financial condition and results of operations. For the years ended December 31, 2014, 2013 and 2012, revenue earned from Google is $1.4 billion, $1.5 billion and $1.4 billion, respectively. This revenue is earned by the businesses comprising the Search & Applications segment. Accounts receivable related to revenue earned from Google totaled $118.7 million and $112.3 million at December 31, 2014 and 2013, respectively. | ||
The Company's business is subject to certain risks and concentrations including dependence on third-party technology providers, exposure to risks associated with online commerce security and credit card fraud. | ||
Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash and cash equivalents and marketable securities. Cash and cash equivalents are maintained with financial institutions and are in excess of Federal Deposit Insurance Corporation insurance limits. | ||
Accounts Receivable | ||
Accounts receivable are stated at amounts due from customers, net of an allowance for doubtful accounts and revenue reserves. Accounts receivable outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time accounts receivable are past due, the Company's previous loss history, the specific customer's ability to pay its obligation to the Company and the condition of the general economy and the customer's industry. The Company writes off accounts receivable when they become uncollectible. The Company also maintains allowances to reserve for potential credits issued to customers or other revenue adjustments. The amounts of these reserves are based, in part, on historical experience. | ||
Property and Equipment | ||
Property and equipment, including significant improvements, are recorded at cost. Repairs and maintenance costs are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. | ||
Asset Category | Estimated | |
Useful Lives | ||
Buildings and leasehold improvements | 3 to 39 Years | |
Computer equipment and capitalized software | 2 to 3 Years | |
Furniture and other equipment | 3 to 12 Years | |
The Company capitalizes certain internal use software costs including external direct costs utilized in developing or obtaining the software and compensation for personnel directly associated with the development of the software. Capitalization of such costs begins when the preliminary project stage is complete and ceases when the project is substantially complete and ready for its intended purpose. The net book value of capitalized internal use software is $36.9 million and $30.9 million at December 31, 2014 and 2013, respectively. | ||
Business Combinations | ||
The purchase price of each acquisition is attributed to the assets acquired and liabilities assumed based on their fair values at the date of acquisition, including identifiable intangible assets that either arise from a contractual or legal right or are separable from goodwill. The fair value of these intangible assets is based on detailed valuations that use information and assumptions provided by management. The excess purchase price over the net tangible and identifiable intangible assets is recorded as goodwill. | ||
In connection with some business combinations, the Company has entered into contingent consideration arrangements that are determined to be part of the purchase price. Each of these arrangements are recorded at its fair value at the time of the acquisition and reflected at current fair value for each subsequent reporting period thereafter until settled. The contingent consideration arrangements are generally based upon earnings performance and/or operating metrics. The Company generally determines the fair value of contingent consideration using probability-weighted analyses over the period in which the obligation is expected to be settled, and, to the extent the arrangement is long-term in nature, applies a discount rate that appropriately captures the risk associated with the obligation. Significant changes in forecasted earnings or operating metrics would result in a significantly higher or lower fair value measurement. Determining fair value is inherently difficult and subjective and can have a material impact on our consolidated financial statements. The changes in the remeasured fair value of the contingent consideration arrangements each reporting period are recognized in “General and administrative expense” in the accompanying consolidated statement of operations. See Note 7 for a discussion of contingent consideration arrangements. | ||
Goodwill and Indefinite-Lived Intangible Assets | ||
Goodwill acquired in business combinations is assigned to the reporting unit(s) that is expected to benefit from the combination as of the acquisition date. The Company assesses goodwill and indefinite-lived intangible assets for impairment annually as of October 1, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit or the fair value of an indefinite-lived intangible asset below its carrying value. | ||
There were no material impairment charges recorded in the three year period ended December 31, 2014. At October 1, 2014, the date of our most recent annual impairment assessment, the fair value of the Company's reporting units exceed their carrying values. The fair value of the Search & Applications reporting unit currently exceeds its carrying value by approximately 15%. If operating results vary significantly from anticipated results, future, potentially material, impairments of goodwill and/or indefinite-lived intangible assets could occur. To illustrate the magnitude of a potential impairment charge relative to future changes in estimated fair value, had the estimated fair value of Search & Applications been hypothetically lower by 20% as of October 1, 2014, the carrying value of Search & Applications would have exceeded its fair value by approximately $100 million. | ||
The Company has the option to qualitatively assess whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If the Company elects to perform a qualitative assessment and concludes it is not more likely than not that the fair value of the reporting unit is less than its carrying value, no further assessment of that reporting unit's goodwill is necessary; otherwise, the fair value of the reporting unit has to be determined and if the carrying value of a reporting unit's goodwill exceeds its implied fair value, an impairment loss equal to the excess is recorded. The Company also has the option to qualitatively assess whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying value. If the Company elects to perform a qualitative assessment and concludes it is not more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying value, the fair value of the asset does not need to be determined; otherwise, the fair value of the indefinite-lived intangible asset has to be determined and if its carrying value exceeds its estimated fair value, an impairment loss equal to the excess is recorded. | ||
The Company determines the fair values of its reporting units using both an income approach based on discounted cash flows ("DCF") and a market approach based on a multiple of earnings. Determining fair value requires the exercise of significant judgment with respect to several items, including the amount and timing of expected future cash flows and appropriate discount rates. The expected cash flows used in the DCF analyses are based on the Company's most recent budget and, for years beyond the budget, the Company's estimates, which are based, in part, on forecasted growth rates. The discount rates used in the DCF analyses reflect the risks inherent in the expected future cash flows of the respective reporting units. Assumptions used in the DCF analyses, including the discount rate, are assessed annually based on each reporting unit's current results and forecast, as well as macroeconomic and industry specific factors. The discount rates used in the Company's annual goodwill impairment assessment ranged from 13% to 19% in 2014 and 13% to 25% in 2013. | ||
The Company determines the fair values of its indefinite-lived intangible assets using avoided royalty DCF analyses. Significant judgments inherent in these analyses include the selection of appropriate royalty and discount rates and estimating the amount and timing of expected future cash flows. The discount rates used in the DCF analyses reflect the risks inherent in the expected future cash flows generated by the respective intangible assets. The royalty rates used in the DCF analyses are based upon an estimate of the royalty rates that a market participant would pay to license the Company's trade names and trademarks. Assumptions used in the avoided royalty DCF analyses, including the discount rate and royalty rate, are assessed annually based on the actual and projected cash flows related to the asset, as well as macroeconomic and industry specific factors. The discount rates used in the Company's annual indefinite-lived impairment assessment ranged from 10% to 20% in 2014 and 10% to 18% in 2013, and the royalty rates used ranged from 1% to 9% in both 2014 and 2013. | ||
The Company's reporting units are consistent with its determination of its operating segments. Goodwill is tested for impairment at the reporting unit level. See Note 13 for additional information regarding the Company's method of determining operating and reportable segments. | ||
Long-Lived Assets and Intangible Assets with Definite Lives | ||
Long-lived assets, which consist of property and equipment and intangible assets with definite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The carrying value of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the carrying value is deemed not to be recoverable, an impairment loss is recorded equal to the amount by which the carrying value of the long-lived asset exceeds its fair value. Amortization of definite-lived intangible assets is computed either on a straight-line basis or based on the pattern in which the economic benefits of the asset will be realized. | ||
Fair Value Measurements | ||
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 prices for identical assets and liabilities in active markets. | |
• | Level 2: Other inputs, which are observable directly or indirectly, such as quoted prices for similar assets or liabilities in active markets, quoted 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 Note 7 for a discussion of fair value measurements made using Level 3 inputs. | |
The Company's non-financial assets, such as goodwill, intangible assets and property and equipment, as well as equity and cost method investments, are adjusted to fair value only when an impairment charge is recognized. Such fair value measurements are based predominantly on Level 3 inputs. | ||
Traffic Acquisition Costs | ||
Traffic acquisition costs consist of payments made to partners who distribute our B2B customized browser-based applications, integrate our paid listings into their websites or direct traffic to our websites. These payments include amounts based on revenue share and other arrangements. The Company expenses these payments in the period incurred as a component of cost of revenue in the accompanying consolidated statement of operations. | ||
Advertising Costs | ||
Advertising costs are expensed in the period incurred (when the advertisement first runs for production costs that are initially capitalized) and represent online marketing, including fees paid to search engines and third parties that distribute our B2C downloadable applications, and offline marketing, which is primarily television advertising. Advertising expense is $971.8 million, $824.1 million and $774.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||
The Company capitalizes and amortizes the costs associated with certain distribution arrangements that require it to pay a fee per access point delivered. These access points are generally in the form of downloadable applications associated with our B2C operations. These fees are amortized over the estimated useful lives of the access points to the extent the Company can reasonably estimate a probable future economic benefit and the period over which such benefit will be realized (generally 18 months). Otherwise, the fees are charged to expense as incurred. | ||
Legal Costs | ||
Legal costs are expensed as incurred. | ||
Income Taxes | ||
The Company recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. | ||
The Company accounts for income taxes under the liability method, and deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided on deferred tax assets if it is determined that it is more likely than not that the deferred tax asset will not be realized. The Company records interest, net of any applicable related income tax benefit, on potential income tax contingencies as a component of income tax expense. | ||
Earnings Per Share | ||
Basic earnings per share is computed by dividing net earnings attributable to IAC shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards vested resulting in the issuance of common stock that could share in the earnings of the Company. | ||
Foreign Currency Translation and Transaction Gains and Losses | ||
The financial position and operating results of foreign entities whose primary economic environment is based on their local currency are consolidated using the local currency as the functional currency. These local currency assets and liabilities are translated at the rates of exchange as of the balance sheet date, and local currency revenue and expenses of these operations are translated at average rates of exchange during the period. Translation gains and losses are included in accumulated other comprehensive income as a component of shareholders' equity. Transaction gains and losses resulting from assets and liabilities denominated in a currency other than the functional currency are included in the consolidated statement of operations as a component of other (expense) income, net. | ||
Translation gains and losses relating to foreign entities that are liquidated or substantially liquidated are reclassified out of accumulated other comprehensive income into earnings. | ||
Stock-Based Compensation | ||
Stock-based compensation is measured at the grant date based on the fair value of the award and is generally expensed over the requisite service period. See Note 12 for a discussion of the Company's stock-based compensation plans. | ||
Redeemable Noncontrolling Interests | ||
Noncontrolling interests in the consolidated subsidiaries of the Company should ordinarily be reported on the consolidated balance sheet within shareholders' equity, separately from the Company's equity. However, securities that are redeemable at the option of the holder and not solely within the control of the issuer must be classified outside of shareholders' equity. Accordingly, if redemption of the noncontrolling interests is outside the control of the Company, the interests are included outside of shareholders' equity in the accompanying consolidated balance sheet. | ||
In connection with the acquisition of certain subsidiaries, management of these businesses has retained an ownership interest. The Company is party to fair value put and call arrangements with respect to these interests. These put and call arrangements allow management of these businesses to require the Company to purchase their interests or allow the Company to acquire such interests at fair value, respectively. The put arrangements do not meet the definition of a derivative instrument as the put agreements do not provide for net settlement. These put and call arrangements become exercisable by the Company and the counter-party at various dates over the next four years. No put and call arrangements were exercised during 2014 and 2012. During 2013, two of these arrangements were exercised. These put arrangements are exercisable by the counter-party outside the control of the Company. Accordingly, to the extent that the fair value of these interests exceeds the value determined by normal noncontrolling interest accounting, the value of such interests is adjusted to fair value with a corresponding adjustment to additional paid-in capital. During the years ended December 31, 2014, 2013 and 2012, the Company recorded adjustments of $27.8 million, $40.6 million and $4.3 million, respectively, to increase these interests to fair value. Fair value determinations require high levels of judgment and are based on various valuation techniques, including market comparables and discounted cash flow projections. | ||
Recent Accounting Pronouncement | ||
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, which clarifies the principles for recognizing revenue and develops a common standard for all industries. The new guidance is effective for reporting periods beginning after December 15, 2016. Entities have the option of using either a full retrospective or cumulative effect approach to adopt ASU No. 2014-09. The Company is currently evaluating the new guidance and has not yet determined whether the adoption of the new standard will have a material impact on its consolidated financial statements or the method of adoption. | ||
Reclassifications | ||
Certain prior year amounts have been reclassified to conform to the current year presentation. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
INCOME TAXES | INCOME TAXES | |||||||||||
U.S. and foreign earnings from continuing operations before income taxes are as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
U.S. | $ | 174,792 | $ | 331,520 | $ | 214,675 | ||||||
Foreign | 95,137 | 84,781 | 74,387 | |||||||||
Total | $ | 269,929 | $ | 416,301 | $ | 289,062 | ||||||
The components of the (benefit) provision for income taxes attributable to continuing operations are as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Current income tax (benefit) provision : | ||||||||||||
Federal | $ | (45,842 | ) | $ | 115,250 | $ | 56,439 | |||||
State | (14,787 | ) | 13,946 | 9,204 | ||||||||
Foreign | 19,132 | 14,402 | 16,496 | |||||||||
Current income tax (benefit) provision | (41,497 | ) | 143,598 | 82,139 | ||||||||
Deferred income tax provision (benefit): | ||||||||||||
Federal | 74,255 | (821 | ) | 40,414 | ||||||||
State | 3,090 | (2,117 | ) | 1,978 | ||||||||
Foreign | (476 | ) | (6,158 | ) | (5,316 | ) | ||||||
Deferred income tax provision (benefit) | 76,869 | (9,096 | ) | 37,076 | ||||||||
Income tax provision | $ | 35,372 | $ | 134,502 | $ | 119,215 | ||||||
The current income tax payable was reduced by $45.0 million, $32.9 million and $57.1 million for the years ended December 31, 2014, 2013 and 2012, respectively, for excess tax deductions attributable to stock-based compensation. The related income tax benefits are recorded as increases to additional paid-in capital. | ||||||||||||
Income taxes receivable (payable) and deferred tax assets (liabilities) are included in the following captions in the accompanying consolidated balance sheet at December 31, 2014 and 2013: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Income taxes receivable (payable): | ||||||||||||
Other current assets | $ | 4,505 | $ | 12,242 | ||||||||
Other non-current assets | 1,478 | 19,217 | ||||||||||
Accrued expenses and other current liabilities | (41,157 | ) | (16,159 | ) | ||||||||
Income taxes payable | (32,635 | ) | (416,384 | ) | ||||||||
Net income taxes payable | $ | (67,809 | ) | $ | (401,084 | ) | ||||||
Deferred tax assets (liabilities): | ||||||||||||
Other current assets | $ | 17,993 | $ | 34,381 | ||||||||
Other non-current assets | 1,380 | 26 | ||||||||||
Accrued expenses and other current liabilities | (255 | ) | (255 | ) | ||||||||
Deferred income taxes | (409,529 | ) | (320,748 | ) | ||||||||
Net deferred tax liabilities | $ | (390,411 | ) | $ | (286,596 | ) | ||||||
The tax effects of cumulative temporary differences that give rise to significant deferred tax assets and deferred tax liabilities are presented below. The valuation allowance relates to deferred tax assets for which it is more likely than not that the tax benefit will not be realized. | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Deferred tax assets: | ||||||||||||
Accrued expenses | $ | 34,654 | $ | 28,005 | ||||||||
Net operating loss carryforwards | 55,579 | 52,336 | ||||||||||
Tax credit carryforwards | 13,585 | 6,138 | ||||||||||
Stock-based compensation | 69,342 | 69,101 | ||||||||||
Income tax reserves, including related interest | 2,247 | 62,852 | ||||||||||
Cost method investments | 27,581 | 2,383 | ||||||||||
Equity method investments | 14,998 | 13,584 | ||||||||||
Other | 10,075 | 10,212 | ||||||||||
Total deferred tax assets | 228,061 | 244,611 | ||||||||||
Less valuation allowance | (98,350 | ) | (62,353 | ) | ||||||||
Net deferred tax assets | 129,711 | 182,258 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Investment in subsidiaries | (378,769 | ) | (377,483 | ) | ||||||||
Intangible and other assets | (115,470 | ) | (69,530 | ) | ||||||||
Other | (25,883 | ) | (21,841 | ) | ||||||||
Total deferred tax liabilities | (520,122 | ) | (468,854 | ) | ||||||||
Net deferred tax liabilities | $ | (390,411 | ) | $ | (286,596 | ) | ||||||
At December 31, 2014, the Company has federal and state net operating losses ("NOLs") of $61.5 million and $82.6 million, respectively. If not utilized, the federal NOLs will expire at various times between 2023 and 2034, and the state NOLs will expire at various times between 2015 and 2034. Utilization of federal NOLs will be subject to limitations under Section 382 of the Internal Revenue Code of 1986, as amended. In addition, utilization of certain state NOLs may be subject to limitations under state laws similar to Section 382 of the Internal Revenue Code of 1986. At December 31, 2014, the Company has foreign NOLs of $107.5 million available to offset future income. Of these foreign NOLs, $98.1 million can be carried forward indefinitely and $9.3 million will expire at various times between 2015 and 2034. During 2014, the Company recognized tax benefits related to NOLs of $0.8 million. At December 31, 2014, the Company has $5.1 million of state capital losses. If not utilized, the state capital losses will expire between 2015 and 2017. Utilization of capital losses will be limited to the Company's ability to generate future capital gains. | ||||||||||||
At December 31, 2014, the Company has tax credit carryforwards of $19.0 million. Of this amount, $5.2 million relates to federal credits for foreign taxes, $8.2 million relates to state tax credits for research activities, and $5.6 million relates to various state and local tax credits. Of these credit carryforwards, $10.0 million can be carried forward indefinitely and $9.0 million will expire within ten years. | ||||||||||||
During 2014, the Company's valuation allowance increased by $36.0 million primarily due to increases in unrealized capital losses, net operating losses, and tax credits. At December 31, 2014, the Company has a valuation allowance of $98.3 million related to the portion of tax loss carryforwards and other items for which it is more likely than not that the tax benefit will not be realized. | ||||||||||||
A reconciliation of the income tax provision to the amounts computed by applying the statutory federal income tax rate to earnings from continuing operations before income taxes is shown as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Income tax provision at the federal statutory rate of 35% | $ | 94,475 | $ | 145,705 | $ | 101,172 | ||||||
Change in tax reserves, net | (86,151 | ) | 1,791 | 17,703 | ||||||||
Foreign income taxed at a different statutory tax rate | (8,943 | ) | (17,428 | ) | (16,240 | ) | ||||||
State income taxes, net of effect of federal tax benefit | 7,240 | 7,469 | 7,650 | |||||||||
Non-deductible goodwill associated with the sale of Urbanspoon | 6,982 | — | — | |||||||||
Non-deductible impairments for certain cost method investments | 23,310 | 1,756 | 226 | |||||||||
Other, net | (1,541 | ) | (4,791 | ) | 8,704 | |||||||
Income tax provision | $ | 35,372 | $ | 134,502 | $ | 119,215 | ||||||
No income taxes have been provided on indefinitely reinvested earnings of certain foreign subsidiaries aggregating $605.7 million at December 31, 2014. The amount of the unrecognized deferred income tax liability with respect to such earnings is $141.5 million. | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest, is as follows: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Balance at January 1 | $ | 275,813 | $ | 379,281 | $ | 351,561 | ||||||
Additions based on tax positions related to the current year | 2,159 | 2,887 | 6,278 | |||||||||
Additions for tax positions of prior years | 1,622 | 3,189 | 45,287 | |||||||||
Reductions for tax positions of prior years | (5,611 | ) | (17,116 | ) | (17,545 | ) | ||||||
Settlements | (5,092 | ) | (78,954 | ) | (5,349 | ) | ||||||
Expiration of applicable statutes of limitations | (238,505 | ) | (13,474 | ) | (951 | ) | ||||||
Balance at December 31 | $ | 30,386 | $ | 275,813 | $ | 379,281 | ||||||
The Company recognizes interest and, if applicable, penalties related to unrecognized tax benefits in the income tax provision. Included in the income tax provision for continuing operations for the years ended December 31, 2014, 2013 and 2012 is a $58.5 million benefit, $4.8 million expense and $5.2 million expense, respectively, net of related deferred taxes of $35.3 million, $2.8 million and $3.1 million, respectively, for interest on unrecognized tax benefits. Included in the income tax provision for discontinued operations for the years ended December 31, 2014, 2013 and 2012 is a $19.7 million benefit, $1.4 million expense and $2.8 million benefit, respectively, net of related deferred taxes of $11.7 million, $0.8 million and $1.7 million, respectively, for interest on unrecognized tax benefits. At December 31, 2014 and 2013, the Company has accrued $2.8 million and $133.0 million, respectively, for the payment of interest. At December 31, 2014 and 2013, the Company has accrued $2.9 million and $5.1 million, respectively, for penalties. | ||||||||||||
The Company is routinely under audit by federal, state, local and foreign authorities in the area of income tax. 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 the Company’s federal income tax returns for the years ended December 31, 2010 through 2012. Various other jurisdictions are open to examination for various tax years beginning with 2006. Income taxes payable include reserves considered sufficient to pay assessments that may result from examination of prior year tax returns. Changes to reserves from period to period and differences between amounts paid, if any, upon resolution of audits and amounts previously provided may be material. Differences between the reserves for income tax contingencies and the amounts owed by the Company are recorded in the period they become known. | ||||||||||||
The statutes of limitations for federal income taxes for the years 2001 through 2009 expired on July 1, 2014. As a result, previously unrecognized tax benefits, including interest, totaling $374.8 million were recognized in the third quarter of 2014. The income tax benefit to continuing operations and discontinued operations was $88.2 million and $175.7 million, respectively. The remaining amount of $110.9 million impacted various balance sheet accounts, primarily non-current deferred tax assets, which were reduced by $100.1 million. At December 31, 2014 and 2013, unrecognized tax benefits, including interest, are $33.2 million and $408.8 million, respectively. If unrecognized tax benefits at December 31, 2014 are subsequently recognized, $30.5 million, net of related deferred tax assets and interest, would reduce income tax provision for continuing operations. The Company believes that it is reasonably possible that its unrecognized tax benefits could decrease by $8.8 million within twelve months of the current reporting date primarily due to expirations of statutes of limitations; $8.4 million of which would reduce the income tax provision for continuing operations. |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||||||||||
Goodwill and intangible assets, net are as follows: | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Goodwill | $ | 1,754,926 | $ | 1,675,323 | ||||||||||||||||||||
Intangible assets with indefinite lives | 405,234 | 376,329 | ||||||||||||||||||||||
Intangible assets with definite lives, net | 86,702 | 69,007 | ||||||||||||||||||||||
Total goodwill and intangible assets, net | $ | 2,246,862 | $ | 2,120,659 | ||||||||||||||||||||
The following table presents the balance of goodwill by reporting unit, including the changes in the carrying value of goodwill, for the year ended December 31, 2014: | ||||||||||||||||||||||||
Balance at | Additions | (Deductions) | Foreign | Balance at | ||||||||||||||||||||
December 31, 2013 | Exchange | December 31, 2014 | ||||||||||||||||||||||
Translation | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Search & Applications | $ | 738,062 | $ | 71,616 | $ | (33,510 | ) | $ | (1,346 | ) | $ | 774,822 | ||||||||||||
The Match Group | 775,403 | 72,833 | (1,931 | ) | (47,508 | ) | 798,797 | |||||||||||||||||
Media - Connected Ventures | 8,267 | — | — | — | 8,267 | |||||||||||||||||||
eCommerce: | ||||||||||||||||||||||||
HomeAdvisor | 131,872 | 20,646 | — | (1,197 | ) | 151,321 | ||||||||||||||||||
ShoeBuy | 21,719 | — | — | — | 21,719 | |||||||||||||||||||
Total eCommerce | 153,591 | 20,646 | — | (1,197 | ) | 173,040 | ||||||||||||||||||
Total | $ | 1,675,323 | $ | 165,095 | $ | (35,441 | ) | $ | (50,051 | ) | $ | 1,754,926 | ||||||||||||
Additions for Search & Applications and The Match Group primarily relate to the acquisitions of the ValueClick O&O website businesses and The Princeton Review, respectively. Deductions for Search & Applications principally relate to the sale of Urbanspoon. | ||||||||||||||||||||||||
The following table presents the balance of goodwill by reporting unit, including the changes in the carrying value of goodwill, for the year ended December 31, 2013: | ||||||||||||||||||||||||
Balance at | Additions | (Deductions) | Transfers | Foreign | Balance at | |||||||||||||||||||
December 31, 2012 | Exchange | December 31, 2013 | ||||||||||||||||||||||
Translation | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Search & Applications | $ | 723,650 | $ | — | $ | (160 | ) | $ | 14,572 | $ | — | $ | 738,062 | |||||||||||
The Match Group | 718,736 | 62,464 | (10,675 | ) | — | 4,878 | 775,403 | |||||||||||||||||
Media - Connected Ventures | 8,267 | — | — | — | — | 8,267 | ||||||||||||||||||
eCommerce: | ||||||||||||||||||||||||
HomeAdvisor | 111,658 | 5,317 | — | 14,373 | 524 | 131,872 | ||||||||||||||||||
CityGrid | 32,124 | — | (3,179 | ) | (28,945 | ) | — | — | ||||||||||||||||
ShoeBuy | 21,719 | — | — | — | — | 21,719 | ||||||||||||||||||
Total eCommerce | 165,501 | 5,317 | (3,179 | ) | (14,572 | ) | 524 | 153,591 | ||||||||||||||||
Total | $ | 1,616,154 | $ | 67,781 | $ | (14,014 | ) | $ | — | $ | 5,402 | $ | 1,675,323 | |||||||||||
Additions and deductions for The Match Group primarily relate to the acquisition of Twoo and the establishment of a deferred tax asset at Tutor arising from pre-acquisition net operating losses, respectively. Transfers relate to the reorganization of CityGrid in the third quarter of 2013. | ||||||||||||||||||||||||
The December 31, 2014, 2013 and 2012 goodwill balances include accumulated impairment losses of $916.9 million, $28.0 million and $11.6 million at Search & Applications, ShoeBuy and Connected Ventures, respectively. | ||||||||||||||||||||||||
Intangible assets with indefinite lives are trade names and trademarks acquired in various acquisitions. At December 31, 2014 and 2013, intangible assets with definite lives are as follows: | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Weighted-Average | |||||||||||||||||||||
Carrying | Amortization | Useful Life | ||||||||||||||||||||||
Amount | (Years) | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Content | $ | 62,602 | $ | (36,988 | ) | $ | 25,614 | 4.1 | ||||||||||||||||
Technology | 54,981 | (20,988 | ) | 33,993 | 3.2 | |||||||||||||||||||
Trade names | 30,110 | (21,681 | ) | 8,429 | 2.6 | |||||||||||||||||||
Customer lists | 24,566 | (14,050 | ) | 10,516 | 2.6 | |||||||||||||||||||
Advertiser and supplier relationships and other | 13,380 | (5,230 | ) | 8,150 | 4 | |||||||||||||||||||
Total | $ | 185,639 | $ | (98,937 | ) | $ | 86,702 | 3.4 | ||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Weighted-Average | |||||||||||||||||||||
Carrying | Amortization | Useful Life | ||||||||||||||||||||||
Amount | (Years) | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Content | $ | 47,800 | $ | (22,373 | ) | $ | 25,427 | 4 | ||||||||||||||||
Technology | 41,694 | (25,324 | ) | 16,370 | 2.9 | |||||||||||||||||||
Trade names | 29,283 | (16,427 | ) | 12,856 | 3 | |||||||||||||||||||
Customer lists | 22,584 | (13,116 | ) | 9,468 | 2.5 | |||||||||||||||||||
Advertiser and supplier relationships | 10,956 | (6,070 | ) | 4,886 | 2.9 | |||||||||||||||||||
Total | $ | 152,317 | $ | (83,310 | ) | $ | 69,007 | 3.2 | ||||||||||||||||
At December 31, 2014, amortization of intangible assets with definite lives for each of the next five years and thereafter is estimated to be as follows: | ||||||||||||||||||||||||
Years Ending December 31, | (In thousands) | |||||||||||||||||||||||
2015 | $ | 44,262 | ||||||||||||||||||||||
2016 | 24,099 | |||||||||||||||||||||||
2017 | 13,441 | |||||||||||||||||||||||
2018 | 4,547 | |||||||||||||||||||||||
2019 | 353 | |||||||||||||||||||||||
Total | $ | 86,702 | ||||||||||||||||||||||
MARKETABLE_SECURITIES
MARKETABLE SECURITIES | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Marketable Securities [Abstract] | ||||||||||||||||
MARKETABLE SECURITIES | MARKETABLE SECURITIES | |||||||||||||||
At December 31, 2014, current available-for-sale marketable securities are as follows: | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
(In thousands) | ||||||||||||||||
Corporate debt securities | $ | 159,418 | $ | 34 | $ | (255 | ) | $ | 159,197 | |||||||
Total debt securities | 159,418 | 34 | (255 | ) | 159,197 | |||||||||||
Equity security | 98 | 1,353 | — | 1,451 | ||||||||||||
Total marketable securities | $ | 159,516 | $ | 1,387 | $ | (255 | ) | $ | 160,648 | |||||||
The unrealized loss of $0.3 million in the table above relates to fifty-eight securities with an aggregate fair value of $123.2 million. There are no investments in current available-for-sale marketable debt securities that have been in a continuous unrealized loss position for longer than twelve months as of December 31, 2014. | ||||||||||||||||
All of the Company’s marketable debt securities are rated investment grade. The gross unrealized losses on the marketable debt securities relate principally to changes in interest rates. Because the Company does not intend to sell any marketable debt securities and it is not more likely than not that the Company will be required to sell any marketable debt securities before recovery of their amortized cost bases, which may be maturity, the Company does not consider any of its marketable debt securities to be other-than-temporarily impaired at December 31, 2014. | ||||||||||||||||
At December 31, 2013, current available-for-sale marketable securities are as follows: | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
(In thousands) | ||||||||||||||||
Corporate debt security | $ | 1,004 | $ | 4 | $ | — | $ | 1,008 | ||||||||
Total debt security | 1,004 | 4 | — | 1,008 | ||||||||||||
Equity securities | 216 | 4,780 | — | 4,996 | ||||||||||||
Total marketable securities | $ | 1,220 | $ | 4,784 | $ | — | $ | 6,004 | ||||||||
The unrealized gains and losses in the tables above are included in "Accumulated other comprehensive loss" in the accompanying consolidated balance sheet. | ||||||||||||||||
The contractual maturities of debt securities classified as current available-for-sale at December 31, 2014 are as follows: | ||||||||||||||||
Amortized | Fair | |||||||||||||||
Cost | Value | |||||||||||||||
(In thousands) | ||||||||||||||||
Due in one year or less | $ | 54,502 | $ | 54,455 | ||||||||||||
Due after one year through five years | 104,916 | 104,742 | ||||||||||||||
Total | $ | 159,418 | $ | 159,197 | ||||||||||||
The following table presents the proceeds from maturities and sales of current and non-current available-for-sale marketable securities and the related gross realized gains and losses: | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(In thousands) | ||||||||||||||||
Proceeds from maturities and sales of available-for-sale marketable securities | $ | 25,223 | $ | 82,160 | $ | 205,944 | ||||||||||
Gross realized gains | 3,362 | 35,692 | 4,075 | |||||||||||||
Gross realized losses | — | — | (5 | ) | ||||||||||||
Gross realized gains and losses from the maturities and sales of available-for-sale marketable securities are included in "Other (expense) income, net" in the accompanying consolidated statement of operations. |
LONGTERM_INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Long-term Investments [Abstract] | ||||||||
LONG-TERM INVESTMENTS | LONG-TERM INVESTMENTS | |||||||
Long-term investments consist of: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Cost method investments | $ | 90,910 | $ | 137,286 | ||||
Equity method investments | 10,593 | 22,073 | ||||||
Long-term marketable equity securities | 7,410 | 11,711 | ||||||
Auction rate security | 6,070 | 8,920 | ||||||
Total long-term investments | $ | 114,983 | $ | 179,990 | ||||
Cost method investments | ||||||||
In 2014, the Company recorded $66.6 million of other-than-temporary impairment charges for certain cost method investments as a result of our assessment of the near-term prospects and financial condition of the investees. | ||||||||
In 2013, the Company recorded a $5.0 million other-than-temporary impairment charge related to a cost method investment. The decline in fair value was due to the investees continued losses, negative working capital and significant debt financing. | ||||||||
These charges are included in "Other (expense) income, net" in the accompanying consolidated statement of operations. | ||||||||
The Company has a 20% interest in the voting common stock of Zhenai Inc. ("Zhenai"), a leading provider of online matchmaking services in China. Our voting power is limited by a shareholders agreement. In light of this limitation and the significance of our interest relative to other shareholders, we do not have the ability to exercise significant influence over the operating and financial matters of Zhenai and this investment is accounted for as a cost method investment. | ||||||||
Equity method investments | ||||||||
In 2014, the Company recorded a $4.2 million other-than-temporary impairment charge on one of its investments following the sale of a majority of the investee's assets. | ||||||||
In 2013, the Company recorded a non-cash charge of $18.6 million related to the re-measurement of the carrying value of our equity method investment in The Daily Beast to fair value in connection with the acquisition of a controlling interest. | ||||||||
These charges are included in "Equity in losses of unconsolidated affiliates" in the accompanying consolidated statement of operations. | ||||||||
Long-term marketable equity securities | ||||||||
The cost basis of the Company's long-term marketable equity security at December 31, 2014 is $8.7 million with a gross unrealized loss of $1.2 million, which is included in "Accumulated other comprehensive loss" in the accompanying consolidated balance sheet. The Company evaluated the near-term prospects of the issuer in relation to the severity and duration of the unrealized loss. Based on the duration, less than two months, of the unrealized loss and the Company's ability and intent to hold this security for a reasonable period of time sufficient for an expected recovery of fair value, the Company does not consider the security to be other-than-temporarily impaired at December 31, 2014. The cost basis of the Company's long-term marketable equity securities at December 31, 2013 is $8.8 million, with gross unrealized gains of $3.0 million included in "Accumulated other comprehensive loss" in the accompanying consolidated balance sheet. In 2012, the Company recorded an $8.7 million other-than-temporary impairment charge related to one of its securities that was in a continuous unrealized loss position for more than one year, based on the Company's evaluation of the near-term prospects of the issuer in relation to the severity (fair value was 50 percent less than cost) and duration of the unrealized loss. The impairment charge is included in “Other (expense) income, net” in the accompanying consolidated statement of operations. | ||||||||
Auction rate security | ||||||||
See Note 7 for information regarding the auction rate security. |
FAIR_VALUE_MEASUREMENTS_AND_FI
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS | |||||||||||||||
The following tables present the Company's financial instruments that are measured at fair value on a recurring basis: | ||||||||||||||||
December 31, 2014 | ||||||||||||||||
Quoted Market | Significant | Significant | Total | |||||||||||||
Prices in Active | Other | Unobservable | Fair Value | |||||||||||||
Markets for | Observable | Inputs | Measurements | |||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 174,720 | $ | — | $ | — | $ | 174,720 | ||||||||
Commercial paper | — | 388,801 | — | 388,801 | ||||||||||||
Time deposits | — | 42,914 | — | 42,914 | ||||||||||||
Marketable securities: | ||||||||||||||||
Corporate debt securities | — | 159,197 | — | 159,197 | ||||||||||||
Equity security | 1,451 | — | — | 1,451 | ||||||||||||
Long-term investments: | ||||||||||||||||
Auction rate security | — | — | 6,070 | 6,070 | ||||||||||||
Marketable equity security | 7,410 | — | — | 7,410 | ||||||||||||
Total | $ | 183,581 | $ | 590,912 | $ | 6,070 | $ | 780,563 | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration arrangements | $ | — | $ | — | $ | (30,140 | ) | $ | (30,140 | ) | ||||||
December 31, 2013 | ||||||||||||||||
Quoted Market | Significant | Significant | Total | |||||||||||||
Prices in Active | Other | Unobservable | Fair Value | |||||||||||||
Markets for | Observable | Inputs | Measurements | |||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 698,307 | $ | — | $ | — | $ | 698,307 | ||||||||
Commercial paper | — | 12,000 | — | 12,000 | ||||||||||||
Time deposits | — | 32,325 | — | 32,325 | ||||||||||||
Marketable securities: | ||||||||||||||||
Corporate debt security | — | 1,008 | — | 1,008 | ||||||||||||
Equity securities | 4,996 | — | — | 4,996 | ||||||||||||
Long-term investments: | ||||||||||||||||
Auction rate security | — | — | 8,920 | 8,920 | ||||||||||||
Marketable equity securities | 11,711 | — | — | 11,711 | ||||||||||||
Total | $ | 715,014 | $ | 45,333 | $ | 8,920 | $ | 769,267 | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration arrangements | $ | — | $ | — | $ | (45,828 | ) | $ | (45,828 | ) | ||||||
The following table presents the changes in the Company's financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3): | ||||||||||||||||
For the Year Ended | ||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Auction Rate | Contingent | Auction Rate | Contingent | |||||||||||||
Security | Consideration | Security | Consideration | |||||||||||||
Arrangements | Arrangements | |||||||||||||||
(In thousands) | ||||||||||||||||
Balance at January 1 | $ | 8,920 | $ | (45,828 | ) | $ | 8,100 | $ | (1,909 | ) | ||||||
Total net gains (losses): | ||||||||||||||||
Included in earnings | — | 13,367 | — | (343 | ) | |||||||||||
Included in other comprehensive (loss) income | (2,850 | ) | 3,025 | 820 | (2,445 | ) | ||||||||||
Fair value at date of acquisition | — | (8,813 | ) | — | (41,387 | ) | ||||||||||
Settlements | — | 8,109 | — | 256 | ||||||||||||
Balance at December 31 | $ | 6,070 | $ | (30,140 | ) | $ | 8,920 | $ | (45,828 | ) | ||||||
Auction rate security | ||||||||||||||||
The Company's auction rate security is valued by discounting the estimated future cash flow streams of the security over the life of the security. Credit spreads and other risk factors are also considered in establishing fair value. The cost basis of the auction rate security is $10.0 million, with a gross unrealized loss of $3.9 million and $1.1 million at December 31, 2014 and December 31, 2013, respectively. The unrealized losses are included in "Accumulated other comprehensive loss" in the accompanying consolidated balance sheet. At December 31, 2014, the auction rate security is rated BBB+ and matures in 2035. The Company does not consider the auction rate security to be other-than-temporarily impaired at December 31, 2014, due to its high credit rating and because the Company does not intend to sell this security, and it is not more likely than not that the Company will be required to sell this security, before the recovery of its amortized cost basis, which may be maturity. | ||||||||||||||||
Contingent consideration arrangements | ||||||||||||||||
As of December 31, 2014, there are five contingent consideration arrangements related to business acquisitions. Four of the contingent consideration arrangements have limits as to the maximum amount that can be paid; the maximum contingent payments related to these arrangements is $166.9 million and the fair value of these four arrangements at December 31, 2014 is $29.5 million. The fair value of the one contingent consideration arrangement without a limit on the maximum amount is $0.7 million at December 31, 2014. The contingent consideration arrangements are generally based upon earnings performance and/or operating metrics. The Company primarily uses probability-weighted analyses to determine the amount of the gross liability, and, to the extent the arrangement is long-term in nature, applies a discount rate, which captures the risks associated with the obligation. The number of scenarios in the probability-weighted analyses can vary; generally, more scenarios are prepared for longer duration and more complex arrangements. The most significant contingent consideration arrangement relates to the acquisition of Twoo.com. | ||||||||||||||||
The Twoo.com contingent consideration arrangement is payable in three annual installments, which began in 2014. Payments are based upon EBITDA and number of monthly active users. The 2014 installment of $7.4 million was paid in the second quarter of 2014. The remaining aggregate amount of the 2015 and 2016 installment payments cannot exceed €77.9 million ($94.9 million at December 31, 2014). The estimate of the fair value for the Twoo.com remaining payments was determined using a probability weighted analysis that forecasted EBITDA and monthly active users based primarily on management's internal projections and strategic plans. The fair value of this arrangement is determined using a discount rate of 15%. | ||||||||||||||||
The fair values of the contingent consideration arrangements are sensitive to changes in the forecasts of earnings and/or the relevant operating metrics and changes in discount rates. The Company remeasures the fair value of the contingent consideration arrangements each reporting period, and changes are recognized in “General and administrative expense” in the accompanying consolidated statement of operations. The contingent consideration arrangement liability at December 31, 2014 includes a current portion of $10.7 million and non-current portion of $19.6 million, which are included in “Accrued expenses and other current liabilities” and “Other long-term liabilities,” respectively, in the accompanying consolidated balance sheet. | ||||||||||||||||
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: | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
(In thousands) | ||||||||||||||||
Long-term debt | $ | (1,080,000 | ) | $ | (1,099,813 | ) | $ | (1,080,000 | ) | $ | (1,058,396 | ) | ||||
The fair value of long-term debt is estimated using market prices or indices for similar liabilities and taking into consideration other factors such as credit quality and maturity, which are Level 3 inputs. |
LONGTERM_DEBT
LONG-TERM DEBT | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
LONG-TERM DEBT | LONG-TERM DEBT | |||||||
Long-term debt consists of: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
4.875% Senior Notes due November 30, 2018 (the "2013 Senior Notes"); interest payable each May 30 and November 30, which commenced May 30, 2014 | $ | 500,000 | $ | 500,000 | ||||
4.75% Senior Notes due December 15, 2022 (the "2012 Senior Notes"); interest payable each June 15 and December 15, which commenced June 15, 2013 | 500,000 | 500,000 | ||||||
5% New York City Industrial Development Agency Liberty Bonds due September 1, 2035 (the "Liberty Bonds"); interest payable each March 1 and September 1, which commenced March 1, 2006 | 80,000 | 80,000 | ||||||
Total long-term debt | $ | 1,080,000 | $ | 1,080,000 | ||||
We may redeem the 2013 Senior Notes at the redemption prices set forth below, together with accrued and unpaid interest thereon to the applicable redemption date, if redeemed during the twelve-month period beginning on November 30 of the years indicated below: | ||||||||
Year | Percentage | |||||||
2015 | 103.25 | % | ||||||
2016 | 101.625 | % | ||||||
2017 and thereafter | 100 | % | ||||||
At any time prior to December 15, 2017, we may redeem the 2012 Senior Notes at a redemption price equal to the sum of the principal amount thereof, plus accrued and unpaid interest and a make-whole premium. Thereafter, we may redeem the 2012 Senior Notes at the redemption prices set forth below, together with accrued and unpaid interest thereon to the applicable redemption date, if redeemed during the twelve-month period beginning on December 15 of the years indicated below: | ||||||||
Year | Percentage | |||||||
2017 | 102.375 | % | ||||||
2018 | 101.583 | % | ||||||
2019 | 100.792 | % | ||||||
2020 and thereafter | 100 | % | ||||||
The 2013 and 2012 Senior Notes are unconditionally guaranteed by certain domestic subsidiaries, which are designated as guarantor subsidiaries. The guarantor subsidiaries are the same for the 2013 and 2012 Senior Notes. See Note 20 for guarantor and non-guarantor financial information. | ||||||||
The indentures governing the 2013 and 2012 Senior Notes contain identical covenants that would limit our ability to pay dividends or make other distributions and repurchase or redeem our stock in the event a default has occurred or we are not in compliance with the maximum leverage ratio of 3.0 to 1.0. At December 31, 2014, there were no limitations pursuant thereto. There are additional covenants that limit our ability and the ability of our subsidiaries to, among other things, (i) incur indebtedness, make investments, or sell assets in the event we are not in compliance with the financial ratio set forth in the indenture, and (ii) incur liens, enter into agreements restricting our subsidiaries' ability to pay dividends, enter into transactions with affiliates and consolidate, merge or sell all or substantially all of our assets. | ||||||||
On December 21, 2012, the Company entered into a $300 million revolving credit facility, which expires on December 21, 2017. The annual fee to maintain the revolving credit facility is 30 basis points. In addition, the terms of the revolving credit facility require that we maintain a leverage ratio of not more than 3.0 to 1.0 and restrict our ability to incur additional indebtedness. At December 31, 2014 and 2013, there are no outstanding borrowings under the revolving credit facility. IAC's obligation under the revolving credit facility is unconditionally guaranteed by the same domestic subsidiaries that guarantee the 2013 and 2012 Senior Notes and is also secured by the stock of certain of our domestic and foreign subsidiaries. | ||||||||
IAC's payment obligation under the Liberty Bonds is collateralized by a mortgage interest in the corporate headquarters building. | ||||||||
Long-term debt maturities are as follows: | ||||||||
Years Ending December 31, | (In thousands) | |||||||
2018 | $ | 500,000 | ||||||
2022 | 500,000 | |||||||
2035 | 80,000 | |||||||
Total | $ | 1,080,000 | ||||||
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY |
Description of Common Stock and Class B Convertible Common Stock | |
Each holder of shares of IAC common stock and IAC Class B common stock vote together as a single class with respect to matters that may be submitted to a vote or for the consent of IAC's shareholders generally, including the election of directors. In connection with any such vote, each holder of IAC common stock is entitled to one vote for each share of IAC common stock held and each holder of IAC Class B common stock is entitled to ten votes for each share of IAC Class B common stock held. Notwithstanding the foregoing, the holders of shares of IAC common stock, acting as a single class, are entitled to elect 25% of the total number of IAC's directors, and, in the event that 25% of the total number of directors shall result in a fraction of a director, then the holders of shares of IAC common stock, acting as a single class, are entitled to elect the next higher whole number of IAC's directors. In addition, Delaware law requires that certain matters be approved by the holders of shares of IAC common stock or holders of IAC Class B common stock voting as a separate class. | |
Shares of IAC Class B common stock are convertible into shares of IAC common stock at the option of the holder thereof, at any time, on a share-for-share basis. Such conversion ratio will in all events be equitably preserved in the event of any recapitalization of IAC by means of a stock dividend on, or a stock split or combination of, outstanding shares of IAC common stock or IAC Class B common stock, or in the event of any merger, consolidation or other reorganization of IAC with another corporation. Upon the conversion of shares of IAC Class B common stock into shares of IAC common stock, those shares of IAC Class B common stock will be retired and will not be subject to reissue. Shares of IAC common stock are not convertible into shares of IAC Class B common stock. | |
Except as described herein, shares of IAC common stock and IAC Class B common stock are identical. The holders of shares of IAC common stock and the holders of shares of IAC Class B common stock are entitled to receive, share for share, such dividends as may be declared by IAC's Board of Directors out of funds legally available therefore. In the event of a liquidation, dissolution, distribution of assets or winding-up of IAC, the holders of shares of IAC common stock and the holders of shares of IAC Class B common stock are entitled to receive, share for share, all the assets of IAC available for distribution to its stockholders, after the rights of the holders of any IAC preferred stock have been satisfied. | |
At December 31, 2014, Mr. Diller, Chairman of the Board and Senior Executive of the Company, holds 5.8 million shares, representing 100% of IAC's outstanding Class B common stock and 42.5% of the outstanding total voting power of the Company. | |
Reserved Common Shares | |
In connection with equity compensation plans, 22.2 million shares of IAC common stock are reserved at December 31, 2014. | |
Warrants | |
No warrants were outstanding at December 31, 2014, 2013 and 2012. No warrants were issued during the three years ended December 31, 2014. During the year ended December 31, 2012, 14.3 million warrants were exercised. Some of those warrants were exercised on a cashless or net basis and IAC received proceeds of $284.1 million from the exercise of warrants exercised on a gross basis during the year ended December 31, 2012. A total of 11.7 million common shares were issued in connection with the exercise of these warrants. | |
Common Stock Repurchases | |
During 2014, the Company did not purchase any shares of IAC common stock. During 2013 and 2012, the Company purchased 4.5 million and 15.5 million shares of IAC common stock for aggregate consideration, on a trade date basis, of $229.1 million and $716.1 million, respectively. | |
On April 30, 2013, IAC's Board of Directors authorized the repurchase of up to 10 million shares of IAC common stock. At December 31, 2014, the Company has approximately 8.6 million shares remaining in its share repurchase authorization. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity [Abstract] | ||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||||||
The following tables present the components of accumulated other comprehensive loss and items reclassified out of accumulated other comprehensive loss into earnings: | ||||||||||||
Year Ended December 31, 2014 | ||||||||||||
Foreign Currency Translation Adjustment | Unrealized Gains (Losses) On Available-For-Sale Securities | Accumulated Other Comprehensive Loss | ||||||||||
(In thousands) | ||||||||||||
Balance at January 1 | $ | (20,352 | ) | $ | 7,306 | $ | (13,046 | ) | ||||
Other comprehensive loss before reclassifications, net of tax benefit of $0.7 million related to unrealized losses on available-for-sale securities | (66,496 | ) | (6,233 | ) | (72,729 | ) | ||||||
Amounts reclassified related to unrealized gains on available-for-sale securities, net of tax provision of $1.2 million | — | (1,925 | ) | (1,925 | ) | |||||||
Net current period other comprehensive loss | (66,496 | ) | (8,158 | ) | (74,654 | ) | ||||||
Balance at December 31 | $ | (86,848 | ) | $ | (852 | ) | $ | (87,700 | ) | |||
Year Ended December 31, 2013 | ||||||||||||
Foreign Currency Translation Adjustment | Unrealized (Losses) Gains On Available-For-Sale Securities | Accumulated Other Comprehensive (Loss) Income | ||||||||||
(In thousands) | ||||||||||||
Balance at January 1 | $ | (25,073 | ) | $ | (7,096 | ) | $ | (32,169 | ) | |||
Other comprehensive income before reclassifications, net of tax provision of $3.9 million related to unrealized gains on available-for-sale securities | 4,721 | 43,235 | 47,956 | |||||||||
Amounts reclassified related to unrealized gains on available-for-sale securities, net of tax provision of $6.9 million | — | (28,833 | ) | (28,833 | ) | |||||||
Net current period other comprehensive income | 4,721 | 14,402 | 19,123 | |||||||||
Balance at December 31 | $ | (20,352 | ) | $ | 7,306 | $ | (13,046 | ) | ||||
Unrealized gains reclassified out of accumulated other comprehensive loss related to the maturities and sales of available-for-sale securities are included in "Other (expense) income, net" in the accompanying consolidated statement of operations. Unrealized gains reclassified out of accumulated other comprehensive loss into other (expense) income, net for the year ended December 31, 2012 was $2.1 million. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE | |||||||||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share attributable to IAC shareholders. | ||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Basic | Diluted | Basic | Diluted | Basic | Diluted | |||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Earnings from continuing operations | $ | 234,557 | $ | 234,557 | $ | 281,799 | $ | 281,799 | $ | 169,847 | $ | 169,847 | ||||||||||||
Net loss (earnings) attributable to noncontrolling interests | 5,643 | 5,643 | 2,059 | 2,059 | (1,530 | ) | (1,530 | ) | ||||||||||||||||
Earnings from continuing operations attributable to IAC shareholders | 240,200 | 240,200 | 283,858 | 283,858 | 168,317 | 168,317 | ||||||||||||||||||
Earnings (loss) from discontinued operations attributable to IAC shareholders | 174,673 | 174,673 | 1,926 | 1,926 | (9,051 | ) | (9,051 | ) | ||||||||||||||||
Net earnings attributable to IAC shareholders | $ | 414,873 | $ | 414,873 | $ | 285,784 | $ | 285,784 | $ | 159,266 | $ | 159,266 | ||||||||||||
Denominator: | ||||||||||||||||||||||||
Weighted average basic shares outstanding | 83,292 | 83,292 | 83,480 | 83,480 | 86,247 | 86,247 | ||||||||||||||||||
Dilutive securities including stock options, warrants and RSUs(a)(b) | — | 5,266 | — | 3,262 | — | 6,842 | ||||||||||||||||||
Denominator for earnings per share—weighted average shares(a)(b) | 83,292 | 88,558 | 83,480 | 86,742 | 86,247 | 93,089 | ||||||||||||||||||
Earnings (loss) per share attributable to IAC shareholders: | ||||||||||||||||||||||||
Earnings per share from continuing operations | $ | 2.88 | $ | 2.71 | $ | 3.4 | $ | 3.27 | $ | 1.95 | $ | 1.81 | ||||||||||||
Discontinued operations | 2.1 | 1.97 | 0.02 | 0.02 | (0.10 | ) | (0.10 | ) | ||||||||||||||||
Earnings per share | $ | 4.98 | $ | 4.68 | $ | 3.42 | $ | 3.29 | $ | 1.85 | $ | 1.71 | ||||||||||||
__________________________________________________________________ | ||||||||||||||||||||||||
(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 vesting of restricted stock units ("RSUs"). For the years ended December 31, 2014, 2013 and 2012 approximately 0.3 million, 0.4 million and 0.8 million shares, respectively, related to potentially dilutive securities are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. | |||||||||||||||||||||||
(b) | Performance-based stock units ("PSUs") are included in the denominator for earnings per share if (i) the applicable performance condition(s) has been met and (ii) the inclusion of the PSUs is dilutive for the respective reporting periods. For each of the years ended December 31, 2014 and 2012 less than 0.1 million PSUs that were probable of vesting were excluded from the calculation of diluted earnings per share because the performance conditions had not been met. For the year ended December 31, 2013, all PSUs that were considered to be probable of vesting were included in the calculation of diluted earnings per share as their performance conditions had been met. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION | ||||||||||||||||||
IAC currently has three active plans under which awards have been granted. These plans cover stock options to acquire shares of IAC common stock, RSUs, PSUs and restricted stock, as well as provide for the future grant of these and other equity awards. These plans authorize the Company to grant awards to its employees, officers, directors and consultants. At December 31, 2014, there are 9.1 million shares available for grant under the Company's stock-based compensation plans. | |||||||||||||||||||
The plans were adopted in 2005, 2008 and 2013, have a stated term of ten years, and provide that the exercise price of stock options granted will not be less than the market price of the Company's common stock on the grant date. The plans do not specify grant dates or vesting schedules of awards as those determinations have been delegated to the Compensation and Human Resources Committee of IAC's Board of Directors (the "Committee"). Each grant agreement reflects the vesting schedule for that particular grant as determined by the Committee. Broad-based stock option awards issued to date have generally vested in equal annual installments over a four-year period and RSU awards currently outstanding generally vest in two 50% installments over a three and four-year period, in each case, from the grant date. PSU awards currently outstanding vest in two installments of up to 50% over a two-year period from the date of grant. In addition to equity awards outstanding under the three plans, stock options and other equity awards outstanding under terminated plans and plans assumed in acquisitions are reflected in the information set forth below. | |||||||||||||||||||
The amount of stock-based compensation expense recognized in the consolidated statement of operations is reduced by estimated forfeitures, as the expense recorded is based on awards that are ultimately expected to vest. The forfeiture rate is estimated at the grant date based on historical experience and revised, if necessary, in subsequent periods if actual forfeitures differ from the estimated rate. At December 31, 2014, there is $113.2 million of unrecognized compensation cost, net of estimated forfeitures, related to all equity-based awards, which is expected to be recognized over a weighted average period of approximately 2.4 years. | |||||||||||||||||||
The total income tax benefit recognized in the accompanying consolidated statement of operations for the years ended December 31, 2014, 2013 and 2012 related to stock-based compensation is $22.2 million, $19.3 million and $31.3 million, respectively. | |||||||||||||||||||
Stock Options | |||||||||||||||||||
Stock options outstanding at December 31, 2014 and changes during the year ended December 31, 2014 is as follows: | |||||||||||||||||||
December 31, 2014 | |||||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||
Exercise | Remaining | Value | |||||||||||||||||
Price | Contractual | ||||||||||||||||||
Term | |||||||||||||||||||
(Shares and intrinsic value in thousands) | |||||||||||||||||||
Outstanding at January 1, 2014 | 8,074 | $ | 36.98 | ||||||||||||||||
Granted | 747 | 67.95 | |||||||||||||||||
Exercised | (1,790 | ) | 31.88 | ||||||||||||||||
Forfeited | (496 | ) | 46.85 | ||||||||||||||||
Expired | (15 | ) | 31.13 | ||||||||||||||||
Outstanding at December 31, 2014 | 6,520 | $ | 41.19 | 6 | $ | 133,077 | |||||||||||||
Options exercisable | 3,647 | $ | 33.5 | 4.7 | $ | 99,523 | |||||||||||||
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between IAC's closing stock price on the last trading day of 2014 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2014. This amount changes based on the fair market value of IAC's common stock. The total intrinsic value of stock options exercised during the years ended December 31, 2014, 2013 and 2012 is $63.3 million, $65.6 million and $84.8 million, respectively. | |||||||||||||||||||
The following table summarizes the information about stock options outstanding and exercisable at December 31, 2014: | |||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||
Range of Exercise Prices | Outstanding at | Weighted- | Weighted- | Exercisable at | Weighted- | Weighted- | |||||||||||||
December 31, | Average | Average | December 31, | Average | Average | ||||||||||||||
2014 | Remaining | Exercise | 2014 | Remaining | Exercise | ||||||||||||||
Contractual | Price | Contractual | Price | ||||||||||||||||
Life in Years | Life | ||||||||||||||||||
(Shares in thousands) | |||||||||||||||||||
$10.01 to $20.00 | 431 | 4.5 | $ | 17.91 | 431 | 4.5 | $ | 17.91 | |||||||||||
$20.01 to $30.00 | 905 | 4.3 | 22.14 | 905 | 4.3 | 22.14 | |||||||||||||
$30.01 to $40.00 | 1,148 | 6.3 | 31.84 | 749 | 6.2 | 31.6 | |||||||||||||
$40.01 to $50.00 | 2,913 | 5.7 | 45.16 | 1,426 | 4 | 44.05 | |||||||||||||
$50.01 to $60.00 | 381 | 7.3 | 58.51 | 136 | 7.3 | 58.44 | |||||||||||||
$60.01 to $70.00 | 492 | 9.3 | 66.14 | — | — | — | |||||||||||||
$70.01 to $80.00 | 250 | 9.3 | 71.55 | — | — | — | |||||||||||||
6,520 | 6 | $ | 41.19 | 3,647 | 4.7 | $ | 33.5 | ||||||||||||
The fair value of each stock option award is estimated on the grant date using the Black-Scholes option pricing model. The Black-Scholes option pricing model incorporates various assumptions, including expected volatility and expected term. During 2014, 2013 and 2012, expected stock price volatilities were estimated based on the Company's historical volatility. The risk-free interest rates are based on U.S. Treasury yields for notes with comparable terms as the awards, in effect at the grant date. Expected term is based upon the historical exercise behavior of our employees and the dividend yields are based on IAC's historical dividend payments. The following are the weighted average assumptions used in the Black-Scholes option pricing model: | |||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Expected volatility | 31 | % | 29 | % | 31 | % | |||||||||||||
Risk-free interest rate | 1.5 | % | 1 | % | 0.6 | % | |||||||||||||
Expected term | 4.8 years | 6.2 years | 4.4 years | ||||||||||||||||
Dividend yield | 1.5 | % | 2 | % | 1.2 | % | |||||||||||||
Approximately 0.7 million, 0.7 million and 3.6 million stock options were granted by the Company during the years ended December 31, 2014, 2013 and 2012, respectively. The weighted average fair value of stock options granted during the years ended December 31, 2014, 2013 and 2012 with exercise prices equal to the market prices of IAC's common stock on the date of grant are $16.67, $10.67 and $10.69, respectively. There are no stock options issued during the years ended December 31, 2014 and 2013 with exercise prices greater than the market value of IAC's common stock on the date of grant. The weighted average exercise price and weighted average fair value of stock options granted during the year ended December 31, 2012 with exercise prices greater than the market value of IAC's common stock on the date of grant are $60.00 and $7.61, respectively. | |||||||||||||||||||
Cash received from stock option exercises and the related tax benefit realized for the years ended December 31, 2014, 2013 and 2012 are: $39.1 million and $25.5 million; $40.7 million and $17.2 million; and $58.2 million and $28.2 million, respectively. In December 2013, the Company's former Chief Executive Officer (the "Executive") became the Chairman of The Match Group; in connection with the Executive's compensation arrangement, the Executive exercised 0.5 million stock options, which were settled by the Company for $9.2 million in cash. In January 2014, a portion of the Executive's outstanding IAC stock options were canceled and replaced with equity denominated in various subsidiaries of The Match Group. The incremental expense associated with this modification is $7.4 million. | |||||||||||||||||||
Restricted Stock Units and Performance-based Stock Units | |||||||||||||||||||
RSUs and PSUs are awards in the form of phantom shares or units, denominated in a hypothetical equivalent number of shares of IAC common stock and with the value of each RSU and PSU equal to the fair value of IAC common stock at the date of grant. RSUs and PSUs may be settled in cash, stock or both, as determined by the Committee at the time of grant. Each RSU and PSU grant is subject to service-based vesting, where a specific period of continued employment must pass before an award vests. PSUs also include performance-based vesting, where certain performance targets set at the time of grant must be achieved before an award vests. The Company recognizes expense for all RSUs and PSUs for which vesting is considered probable. For RSU grants, the expense is measured at the grant date as the fair value of IAC common stock and expensed as non-cash compensation over the vesting term. For PSU grants, the expense is measured at the grant date as the fair value of IAC common stock and expensed as non-cash compensation over the vesting term if the performance targets are considered probable of being achieved. | |||||||||||||||||||
Unvested RSUs and PSUs outstanding at December 31, 2014 and changes during the year ended December 31, 2014 are as follows: | |||||||||||||||||||
RSUs | PSUs | ||||||||||||||||||
Number | Weighted | Number | Weighted | ||||||||||||||||
of shares | Average | of shares(a) | Average | ||||||||||||||||
Grant Date | Grant Date | ||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||
(Shares in thousands) | |||||||||||||||||||
Unvested at January 1, 2014 | 692 | $ | 43.5 | 322 | $ | 31.27 | |||||||||||||
Granted | 257 | 67.69 | 35 | 71.39 | |||||||||||||||
Vested | (199 | ) | 36.7 | (102 | ) | 31.15 | |||||||||||||
Forfeited | — | — | (220 | ) | 31.32 | ||||||||||||||
Unvested at December 31, 2014 | 750 | $ | 53.61 | 35 | $ | 71.39 | |||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||
(a) | Included in the table are PSUs which vest at the end of two years in varying amounts depending upon certain performance conditions. The PSU table above includes these awards at their maximum potential payout. | ||||||||||||||||||
The weighted average fair value of RSUs and PSUs granted during the years ended December 31, 2014, 2013 and 2012 based on market prices of IAC's common stock on the grant date was $68.13, $42.32 and $46.24, respectively. The total fair value of RSUs and PSUs that vested during the years ended December 31, 2014, 2013 and 2012 was $20.4 million, $14.5 million and $139.0 million, respectively. | |||||||||||||||||||
Equity Instruments Denominated in the Shares of Certain Subsidiaries | |||||||||||||||||||
IAC has granted stock options and phantom equity units, which are denominated in the equity of its subsidiaries, to employees and management of certain subsidiaries. These equity awards vest over a period of years or upon the occurrence of certain prescribed events. In some cases, IAC has taken a preferred interest in the subsidiary with a face value equal to the subsidiary's acquisition price; or, when funding a start-up business, its investment cost, or a certain fixed other amount. In some cases, these preferred interests accrete interest or dividends at a prescribed rate of return. The value of the stock options and phantom equity units is tied to the value of the common stock of the entity, with the equity awards employees and management receive as a whole generally representing a small minority of the total common stock outstanding. Accordingly, these interests only have value to the extent the relevant business appreciates in value above the preferred interest (including the accretion of interest or dividends), our investment cost or other fixed amount or, in the case of stock options, the initial value utilized to determine the exercise price. These interests can have significant value in the event of significant appreciation. The interests are ultimately settled in IAC common stock or cash at the option of IAC, with fair market value generally determined by negotiation or arbitration, at various dates through 2024. The expense associated with these equity awards is initially measured at fair value at the grant date and is expensed as non-cash compensation over the vesting term. The aggregate number of IAC common shares that would be required to settle these interests at current estimated fair values, including vested and unvested interests, at December 31, 2014 is 5.8 million shares, which is included in the calculation of diluted earnings per share if the effect is dilutive. The comparable amount at December 31, 2013 is 1.8 million shares. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION | |||||||||||||||||||||||
The overall concept that IAC employs in determining its operating segments is to present the financial information in a manner consistent with how the chief operating decision maker views the businesses, how the businesses are organized as to segment management, and the focus of the businesses with regards to the types of services or products offered or the target market. Operating segments are combined for reporting purposes if they meet certain aggregation criteria, which principally relate to the similarity of their economic characteristics or, in the case of the eCommerce reportable segment, do not meet the quantitative thresholds that require presentation as separate operating segments. | ||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||
Search & Applications | $ | 1,596,251 | $ | 1,604,950 | $ | 1,465,795 | ||||||||||||||||||
The Match Group | 897,245 | 805,390 | 714,222 | |||||||||||||||||||||
Media | 181,780 | 191,434 | 164,051 | |||||||||||||||||||||
eCommerce | 435,361 | 422,066 | 457,182 | |||||||||||||||||||||
Inter-segment elimination | (1,090 | ) | (853 | ) | (317 | ) | ||||||||||||||||||
Total | $ | 3,109,547 | $ | 3,022,987 | $ | 2,800,933 | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Operating Income (Loss): | ||||||||||||||||||||||||
Search & Applications | $ | 311,340 | $ | 340,117 | $ | 305,644 | ||||||||||||||||||
The Match Group | 240,912 | 228,155 | 200,166 | |||||||||||||||||||||
Media | (40,177 | ) | (20,803 | ) | (46,902 | ) | ||||||||||||||||||
eCommerce | (1,257 | ) | (61 | ) | 15,323 | |||||||||||||||||||
Corporate | (132,091 | ) | (121,205 | ) | (150,663 | ) | ||||||||||||||||||
Total | $ | 378,727 | $ | 426,203 | $ | 323,568 | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Adjusted EBITDA:(a) | ||||||||||||||||||||||||
Search & Applications | $ | 362,029 | $ | 385,851 | $ | 328,141 | ||||||||||||||||||
The Match Group | 264,736 | 266,949 | 236,778 | |||||||||||||||||||||
Media | (36,720 | ) | (16,976 | ) | (38,555 | ) | ||||||||||||||||||
eCommerce | 17,282 | 22,890 | 31,200 | |||||||||||||||||||||
Corporate | (63,251 | ) | (60,411 | ) | (60,119 | ) | ||||||||||||||||||
Total | $ | 544,076 | $ | 598,303 | $ | 497,445 | ||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Segment Assets:(b) | ||||||||||||||||||||||||
Search & Applications | $ | 341,886 | $ | 409,116 | ||||||||||||||||||||
The Match Group | 297,166 | 341,377 | ||||||||||||||||||||||
Media | 87,448 | 92,500 | ||||||||||||||||||||||
eCommerce | 50,133 | 41,827 | ||||||||||||||||||||||
Corporate | 1,251,383 | 1,229,205 | ||||||||||||||||||||||
Total | $ | 2,028,016 | $ | 2,114,025 | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Capital expenditures: | ||||||||||||||||||||||||
Search & Applications | $ | 17,701 | $ | 22,215 | $ | 15,320 | ||||||||||||||||||
The Match Group | 22,105 | 19,997 | 19,853 | |||||||||||||||||||||
Media | 1,566 | 1,197 | 1,178 | |||||||||||||||||||||
eCommerce | 9,620 | 8,921 | 8,485 | |||||||||||||||||||||
Corporate | 6,241 | 27,981 | 6,365 | |||||||||||||||||||||
Total | $ | 57,233 | $ | 80,311 | $ | 51,201 | ||||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||
(a) | The Company's primary financial measure is Adjusted EBITDA, which is defined as operating income excluding: (1) non-cash compensation expense; (2) depreciation; and (3) acquisition-related items consisting of (i) amortization of intangible assets and goodwill and intangible asset impairments and (ii) gains and losses recognized on changes in the fair value of contingent consideration arrangements. The Company believes this measure is useful for analysts and investors as this measure allows a more meaningful comparison between our performance and that of our competitors. Moreover, our management uses this measure internally to evaluate the performance of our business as a whole and our individual business segments. The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, and we believe that by excluding these items, Adjusted EBITDA corresponds more closely to the cash operating income generated from our business, from which capital investments are made and debt is serviced. Adjusted EBITDA has certain limitations in that it does not take into account the impact to IAC's statement of operations of certain expenses. | |||||||||||||||||||||||
(b) | Consistent with the Company's primary metric (described in (a) above), the Company excludes, if applicable, goodwill and intangible assets from the measure of segment assets presented above. | |||||||||||||||||||||||
Revenue by geography is based on where the customer is located. Geographic information about revenue and long-lived assets is presented below: | ||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||
United States | $ | 2,146,189 | $ | 2,081,485 | $ | 1,966,383 | ||||||||||||||||||
All other countries | 963,358 | 941,502 | 834,550 | |||||||||||||||||||||
Total | $ | 3,109,547 | $ | 3,022,987 | $ | 2,800,933 | ||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Long-lived assets (excluding goodwill and intangible assets) | ||||||||||||||||||||||||
United States | $ | 281,879 | $ | 271,916 | ||||||||||||||||||||
All other countries | 20,580 | 22,048 | ||||||||||||||||||||||
Total | $ | 302,459 | $ | 293,964 | ||||||||||||||||||||
The following tables reconcile Adjusted EBITDA to operating income (loss) for the Company's reportable segments: | ||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||
Adjusted EBITDA | Non-Cash | Depreciation | Amortization | Acquisition-related Contingent Consideration Fair Value Adjustments | Operating | |||||||||||||||||||
Compensation | of Intangibles | Income | ||||||||||||||||||||||
Expense | (Loss) | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Search & Applications | $ | 362,029 | $ | — | $ | (16,461 | ) | $ | (33,902 | ) | $ | (326 | ) | $ | 311,340 | |||||||||
The Match Group | 264,736 | 287 | (25,628 | ) | (11,395 | ) | 12,912 | 240,912 | ||||||||||||||||
Media | (36,720 | ) | (647 | ) | (927 | ) | (2,098 | ) | 215 | (40,177 | ) | |||||||||||||
eCommerce | 17,282 | (559 | ) | (8,015 | ) | (10,531 | ) | 566 | (1,257 | ) | ||||||||||||||
Corporate | (63,251 | ) | (58,715 | ) | (10,125 | ) | — | — | (132,091 | ) | ||||||||||||||
Total | $ | 544,076 | $ | (59,634 | ) | $ | (61,156 | ) | $ | (57,926 | ) | $ | 13,367 | $ | 378,727 | |||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||
Adjusted EBITDA | Non-Cash | Depreciation | Amortization | Acquisition-related Contingent Consideration Fair Value Adjustments | Operating | |||||||||||||||||||
Compensation | of Intangibles | Income | ||||||||||||||||||||||
Expense | (Loss) | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Search & Applications | $ | 385,851 | $ | (3 | ) | $ | (18,177 | ) | $ | (27,554 | ) | $ | — | $ | 340,117 | |||||||||
The Match Group | 266,949 | (1,122 | ) | (20,203 | ) | (17,126 | ) | (343 | ) | 228,155 | ||||||||||||||
Media | (16,976 | ) | (633 | ) | (2,124 | ) | (1,070 | ) | — | (20,803 | ) | |||||||||||||
eCommerce | 22,890 | 29 | (8,887 | ) | (14,093 | ) | — | (61 | ) | |||||||||||||||
Corporate | (60,411 | ) | (51,276 | ) | (9,518 | ) | — | — | (121,205 | ) | ||||||||||||||
Total | $ | 598,303 | $ | (53,005 | ) | $ | (58,909 | ) | $ | (59,843 | ) | $ | (343 | ) | $ | 426,203 | ||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||
Adjusted EBITDA | Non-Cash | Depreciation | Amortization | Operating | ||||||||||||||||||||
Compensation | of Intangibles | Income | ||||||||||||||||||||||
Expense | (Loss) | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Search & Applications | $ | 328,141 | $ | (34 | ) | $ | (14,995 | ) | $ | (7,468 | ) | $ | 305,644 | |||||||||||
The Match Group | 236,778 | (2,818 | ) | (16,339 | ) | (17,455 | ) | 200,166 | ||||||||||||||||
Media | (38,555 | ) | (770 | ) | (1,398 | ) | (6,179 | ) | (46,902 | ) | ||||||||||||||
eCommerce | 31,200 | 2 | (11,210 | ) | (4,669 | ) | 15,323 | |||||||||||||||||
Corporate | (60,119 | ) | (82,005 | ) | (8,539 | ) | — | (150,663 | ) | |||||||||||||||
Total | $ | 497,445 | $ | (85,625 | ) | $ | (52,481 | ) | $ | (35,771 | ) | $ | 323,568 | |||||||||||
The following tables reconcile segment assets to total assets: | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Segment Assets | Goodwill | Indefinite-Lived | Definite-Lived | Total Assets | ||||||||||||||||||||
Intangible Assets | Intangible Assets | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Search & Applications | $ | 341,886 | $ | 774,822 | $ | 211,095 | $ | 44,355 | $ | 1,372,158 | ||||||||||||||
The Match Group | 297,166 | 798,797 | 180,558 | 27,055 | 1,303,576 | |||||||||||||||||||
Media | 87,448 | 8,267 | 1,800 | 4,900 | 102,415 | |||||||||||||||||||
eCommerce | 50,133 | 173,040 | 11,781 | 10,392 | 245,346 | |||||||||||||||||||
Corporate(c) | 1,251,383 | — | — | — | 1,251,383 | |||||||||||||||||||
Total | $ | 2,028,016 | $ | 1,754,926 | $ | 405,234 | $ | 86,702 | $ | 4,274,878 | ||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Segment Assets | Goodwill | Indefinite-Lived | Definite-Lived | Total Assets | ||||||||||||||||||||
Intangible Assets | Intangible Assets | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Search & Applications | $ | 409,116 | $ | 738,062 | $ | 195,805 | $ | 40,550 | $ | 1,383,533 | ||||||||||||||
The Match Group | 341,377 | 775,403 | 167,544 | 11,818 | 1,296,142 | |||||||||||||||||||
Media | 92,500 | 8,267 | 1,800 | 944 | 103,511 | |||||||||||||||||||
eCommerce | 41,827 | 153,591 | 11,180 | 15,695 | 222,293 | |||||||||||||||||||
Corporate(c) | 1,229,205 | — | — | — | 1,229,205 | |||||||||||||||||||
Total | $ | 2,114,025 | $ | 1,675,323 | $ | 376,329 | $ | 69,007 | $ | 4,234,684 | ||||||||||||||
_____________________________________ | ||||||||||||||||||||||||
(c) | Corporate assets consist primarily of cash and cash equivalents, marketable securities and IAC's headquarters building. |
COMMITMENTS
COMMITMENTS | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Commitments Disclosure | ||||||||||||||||||||
COMMITMENTS | COMMITMENTS | |||||||||||||||||||
The Company leases land, office space, data center facilities and equipment used in connection with its operations under various operating leases, many of which contain escalation clauses. The Company is also committed to pay a portion of the related operating expenses under a data center lease agreement. These operating expenses are not included in the table below. | ||||||||||||||||||||
Future minimum payments under operating lease agreements are as follows: | ||||||||||||||||||||
Years Ending December 31, | (In thousands) | |||||||||||||||||||
2015 | $ | 32,255 | ||||||||||||||||||
2016 | 31,105 | |||||||||||||||||||
2017 | 26,723 | |||||||||||||||||||
2018 | 23,338 | |||||||||||||||||||
2019 | 17,775 | |||||||||||||||||||
Thereafter | 191,108 | |||||||||||||||||||
Total | $ | 322,304 | ||||||||||||||||||
Expenses charged to operations under these agreements are $41.2 million, $36.7 million and $30.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||
The Company's most significant operating lease is a seventy-seven year land lease for IAC's headquarters building in New York City and approximates 55% of the future minimum payments due under all operating lease agreements in the table above. | ||||||||||||||||||||
The Company also has funding commitments that could potentially require its performance in the event of demands by third parties or contingent events as follows: | ||||||||||||||||||||
Amount of Commitment Expiration Per Period | ||||||||||||||||||||
Less Than | 3-Jan | 5-Mar | More Than | Total | ||||||||||||||||
1 Year | Years | Years | 5 Years | Amounts | ||||||||||||||||
Committed | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Purchase obligations | $ | 10,710 | $ | 521 | $ | — | $ | — | $ | 11,231 | ||||||||||
Letters of credit and surety bonds | 1,276 | — | 73 | 1,437 | 2,786 | |||||||||||||||
Total commercial commitments | $ | 11,986 | $ | 521 | $ | 73 | $ | 1,437 | $ | 14,017 | ||||||||||
The purchase obligations primarily include advertising commitments, which commitments are reducible or terminable such that these commitments can never exceed associated revenue by a meaningful amount. The letters of credit support the Company's casualty insurance program. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2014 | |
Contingencies Disclosure | |
CONTINGENCIES | 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 for additional information related to income tax contingencies. |
SUPPLEMENTAL_CASH_FLOW_INFORMA
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||||
Supplemental Disclosure of Non-Cash Transactions: | ||||||||||||
The Company recorded acquisition-related contingent consideration liabilities of $8.8 million and $41.4 million during the years 2014 and 2013, respectively. See Note 7 for additional information on contingent consideration arrangements. | ||||||||||||
Supplemental Disclosure of Cash Flow Information: | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Cash paid (received) during the year for: | ||||||||||||
Interest | $ | 54,027 | $ | 28,705 | $ | 5,214 | ||||||
Income tax payments | 63,521 | 112,087 | 43,316 | |||||||||
Income tax refunds | (10,477 | ) | (17,683 | ) | (8,187 | ) |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS |
Each of the Company and Expedia has a 50% ownership interest in two aircraft that may be used by both companies. The Company and Expedia purchased the second of these two aircraft during 2013. The Company paid $25 million (50% of the total purchase price and refurbish costs) for its interest. Members of the aircrafts' flight crews are employed by an entity in which each of the Company and Expedia has a 50% ownership interest. The Company and Expedia have agreed to share costs relating to flight crew compensation and benefits pro-rata according to each company's respective usage of the aircraft, for which they are separately billed by the entity described above. The Company and Expedia are related parties since they are under common control, given that Mr. Diller serves as Chairman and Senior Executive of both IAC and Expedia. For the years ended December 31, 2014, 2013 and 2012, total payments made to this entity by the Company were not material. |
BENEFIT_PLANS
BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
BENEFIT PLANS | BENEFIT PLANS |
IAC has a retirement savings plan in the United States that qualifies under Section 401(k) of the Internal Revenue Code. Participating employees may contribute up to 50% of their pre-tax earnings, but not more than statutory limits. IAC contributes fifty cents for each dollar a participant contributes in this plan, with a maximum contribution of 3% of a participant's eligible earnings. Matching contributions for the plan for the years ended December 31, 2014, 2013 and 2012 are $7.5 million, $6.5 million and $6.5 million, respectively. Matching contributions are invested in the same manner as each participant's voluntary contributions in the investment options provided under the plan. An investment option in the plan is IAC common stock, but neither participant nor matching contributions are required to be invested in IAC common stock. | |
IAC also has or participates in various benefit plans, principally defined contribution plans, for its international employees. IAC's contributions for these plans for the years ended December 31, 2014, 2013 and 2012 are $2.5 million, $2.9 million and $2.3 million, respectively. |
CONSOLIDATED_FINANCIAL_STATEME
CONSOLIDATED FINANCIAL STATEMENT DETAILS | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Consolidated Financial Statement Details [Abstract] | ||||||||||||
CONSOLIDATED FINANCIAL STATEMENT DETAILS | CONSOLIDATED FINANCIAL STATEMENT DETAILS | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Other current assets: | ||||||||||||
Prepaid expenses | $ | 39,311 | $ | 23,942 | ||||||||
Capitalized downloadable search toolbar costs, net | 29,608 | 21,171 | ||||||||||
Production costs | 24,599 | 17,717 | ||||||||||
Deferred income taxes | 17,993 | 34,381 | ||||||||||
Income taxes receivable | 4,505 | 12,242 | ||||||||||
Other | 50,726 | 52,077 | ||||||||||
Other current assets | $ | 166,742 | $ | 161,530 | ||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Property and equipment, net: | ||||||||||||
Buildings and leasehold improvements | $ | 230,577 | $ | 246,283 | ||||||||
Computer equipment and capitalized software | 238,960 | 208,426 | ||||||||||
Furniture and other equipment | 87,788 | 84,787 | ||||||||||
Projects in progress | 19,551 | 14,649 | ||||||||||
Land | 5,117 | 5,117 | ||||||||||
581,993 | 559,262 | |||||||||||
Accumulated depreciation and amortization | (279,534 | ) | (265,298 | ) | ||||||||
Property and equipment, net | $ | 302,459 | $ | 293,964 | ||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Other non-current assets: | ||||||||||||
Production costs | $ | 11,586 | $ | 22,423 | ||||||||
Income taxes receivable | 1,478 | 19,217 | ||||||||||
Restricted cash - funds held in escrow for Meetic tender offer | — | 71,512 | ||||||||||
Other | 43,629 | 51,533 | ||||||||||
Other non-current assets | $ | 56,693 | $ | 164,685 | ||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Accrued expenses and other current liabilities: | ||||||||||||
Accrued employee compensation and benefits | $ | 101,830 | $ | 85,006 | ||||||||
Accrued advertising expense | 87,485 | 63,406 | ||||||||||
Accrued revenue share expense | 50,624 | 72,274 | ||||||||||
Income taxes payable | 41,157 | 16,159 | ||||||||||
Other | 116,707 | 114,193 | ||||||||||
Accrued expenses and other current liabilities | $ | 397,803 | $ | 351,038 | ||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Revenue: | ||||||||||||
Service revenue | $ | 2,957,735 | $ | 2,869,822 | $ | 2,639,409 | ||||||
Product revenue | 151,812 | 153,165 | 161,524 | |||||||||
Revenue | $ | 3,109,547 | $ | 3,022,987 | $ | 2,800,933 | ||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Cost of revenue: | ||||||||||||
Cost of service revenue | $ | 757,194 | $ | 884,189 | $ | 833,374 | ||||||
Cost of product revenue | 125,982 | 119,532 | 158,314 | |||||||||
Cost of revenue | $ | 883,176 | $ | 1,003,721 | $ | 991,688 | ||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Other (expense) income, net: | ||||||||||||
Impairment of long-term investments | $ | (66,601 | ) | $ | (5,268 | ) | $ | (8,685 | ) | |||
Foreign currency exchange losses, net | (1,558 | ) | (2,883 | ) | (1,050 | ) | ||||||
Gains on sales of long-term investments and a business | 21,946 | 35,856 | 3,326 | |||||||||
Interest income | 4,352 | 2,608 | 3,462 | |||||||||
Other | (926 | ) | (4 | ) | (65 | ) | ||||||
Other (expense) income, net | $ | (42,787 | ) | $ | 30,309 | $ | (3,012 | ) | ||||
GUARANTOR_AND_NONGUARANTOR_FIN
GUARANTOR AND NONGUARANTOR FINANCIAL INFORMATION | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Guarantor and Nonguarantor Financial Statements [Abstract] | ||||||||||||||||||||
Condensed Financial Statements [Text Block] | GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION | |||||||||||||||||||
The 2013 and 2012 Senior Notes are unconditionally guaranteed, jointly and severally, by certain domestic subsidiaries which are 100% owned by the Company. The following tables present condensed consolidating financial information at December 31, 2014 and 2013 and for the years ended December 31, 2014, 2013 and 2012 for: IAC, on a stand-alone basis; the combined guarantor subsidiaries of IAC; the combined non-guarantor subsidiaries of IAC; and IAC on a consolidated basis. | ||||||||||||||||||||
Balance sheet at December 31, 2014: | ||||||||||||||||||||
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | IAC Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash and cash equivalents | $ | 766,076 | $ | 1,021 | $ | 223,308 | $ | — | $ | 990,405 | ||||||||||
Marketable securities | 159,197 | — | 1,451 | — | 160,648 | |||||||||||||||
Accounts receivable, net | 13 | 155,262 | 80,811 | — | 236,086 | |||||||||||||||
Other current assets | 23,923 | 91,105 | 57,487 | (5,773 | ) | 166,742 | ||||||||||||||
Intercompany receivables | — | 1,688,403 | 970,810 | (2,659,213 | ) | — | ||||||||||||||
Property and equipment, net | 4,950 | 232,819 | 64,690 | — | 302,459 | |||||||||||||||
Goodwill | — | 1,249,807 | 505,119 | — | 1,754,926 | |||||||||||||||
Intangible assets, net | — | 325,771 | 166,165 | — | 491,936 | |||||||||||||||
Investment in subsidiaries | 5,035,304 | 930,443 | — | (5,965,747 | ) | — | ||||||||||||||
Other non-current assets | 44,610 | 20,682 | 109,372 | (2,988 | ) | 171,676 | ||||||||||||||
Total assets | $ | 6,034,073 | $ | 4,695,313 | $ | 2,179,213 | $ | (8,633,721 | ) | $ | 4,274,878 | |||||||||
Accounts payable, trade | $ | 3,059 | $ | 55,320 | $ | 22,784 | $ | — | $ | 81,163 | ||||||||||
Other current liabilities | 73,491 | 328,920 | 191,197 | (817 | ) | 592,791 | ||||||||||||||
Long-term debt | 1,000,000 | 80,000 | — | — | 1,080,000 | |||||||||||||||
Income taxes payable | 2,240 | 4,771 | 25,624 | — | 32,635 | |||||||||||||||
Intercompany liabilities | 2,659,213 | — | — | (2,659,213 | ) | — | ||||||||||||||
Other long-term liabilities | 304,117 | 104,219 | 54,328 | (7,944 | ) | 454,720 | ||||||||||||||
Redeemable noncontrolling interests | — | — | 40,427 | — | 40,427 | |||||||||||||||
IAC shareholders' equity | 1,991,953 | 4,122,083 | 1,843,664 | (5,965,747 | ) | 1,991,953 | ||||||||||||||
Noncontrolling interests | — | — | 1,189 | — | 1,189 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 6,034,073 | $ | 4,695,313 | $ | 2,179,213 | $ | (8,633,721 | ) | $ | 4,274,878 | |||||||||
Balance sheet at December 31, 2013: | ||||||||||||||||||||
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | IAC Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash and cash equivalents | $ | 782,022 | $ | — | $ | 318,422 | $ | — | $ | 1,100,444 | ||||||||||
Marketable securities | 1,007 | — | 4,997 | — | 6,004 | |||||||||||||||
Accounts receivable, net | 38 | 135,651 | 71,719 | — | 207,408 | |||||||||||||||
Other current assets | 45,111 | 76,572 | 40,661 | (814 | ) | 161,530 | ||||||||||||||
Intercompany receivables | — | 569,030 | 847,423 | (1,416,453 | ) | — | ||||||||||||||
Property and equipment, net | 5,316 | 221,386 | 67,262 | — | 293,964 | |||||||||||||||
Goodwill | — | 1,180,159 | 495,164 | — | 1,675,323 | |||||||||||||||
Intangible assets, net | — | 302,082 | 143,254 | — | 445,336 | |||||||||||||||
Investment in subsidiaries | 3,833,751 | 782,840 | — | (4,616,591 | ) | — | ||||||||||||||
Other non-current assets | 83,207 | 15,521 | 252,576 | (6,629 | ) | 344,675 | ||||||||||||||
Total assets | $ | 4,750,452 | $ | 3,283,241 | $ | 2,241,478 | $ | (6,040,487 | ) | $ | 4,234,684 | |||||||||
Accounts payable, trade | $ | 4,310 | $ | 51,525 | $ | 21,818 | $ | — | $ | 77,653 | ||||||||||
Other current liabilities | 41,623 | 280,549 | 187,072 | — | 509,244 | |||||||||||||||
Long-term debt | 1,000,000 | 80,000 | — | — | 1,080,000 | |||||||||||||||
Income taxes payable | 383,926 | 6,768 | 25,690 | — | 416,384 | |||||||||||||||
Intercompany liabilities | 1,416,453 | — | — | (1,416,453 | ) | — | ||||||||||||||
Other long-term liabilities | 217,404 | 96,239 | 72,941 | (7,443 | ) | 379,141 | ||||||||||||||
Redeemable noncontrolling interests | — | — | 42,861 | — | 42,861 | |||||||||||||||
IAC shareholders' equity | 1,686,736 | 2,768,160 | 1,848,431 | (4,616,591 | ) | 1,686,736 | ||||||||||||||
Noncontrolling interests | — | — | 42,665 | — | 42,665 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 4,750,452 | $ | 3,283,241 | $ | 2,241,478 | $ | (6,040,487 | ) | $ | 4,234,684 | |||||||||
Statement of operations for the year ended December 31, 2014: | ||||||||||||||||||||
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | IAC Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenue | $ | — | $ | 2,286,621 | $ | 834,765 | $ | (11,839 | ) | $ | 3,109,547 | |||||||||
Operating costs and expenses: | ||||||||||||||||||||
Cost of revenue (exclusive of depreciation shown separately below) | 998 | 525,185 | 359,746 | (2,753 | ) | 883,176 | ||||||||||||||
Selling and marketing expense | 2,138 | 904,221 | 226,381 | (8,303 | ) | 1,124,437 | ||||||||||||||
General and administrative expense | 105,221 | 211,293 | 127,051 | 45 | 443,610 | |||||||||||||||
Product development expense | 6,496 | 110,375 | 44,472 | (828 | ) | 160,515 | ||||||||||||||
Depreciation | 1,426 | 40,645 | 19,085 | — | 61,156 | |||||||||||||||
Amortization of intangibles | — | 37,661 | 20,265 | — | 57,926 | |||||||||||||||
Total operating costs and expenses | 116,279 | 1,829,380 | 797,000 | (11,839 | ) | 2,730,820 | ||||||||||||||
Operating (loss) income | (116,279 | ) | 457,241 | 37,765 | — | 378,727 | ||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates | 253,582 | 34,613 | 452 | (298,344 | ) | (9,697 | ) | |||||||||||||
Interest expense | (51,988 | ) | (4,246 | ) | (80 | ) | — | (56,314 | ) | |||||||||||
Other income (expense), net | 2,688 | (3,315 | ) | (42,160 | ) | — | (42,787 | ) | ||||||||||||
Earnings (loss) from continuing operations before income taxes | 88,003 | 484,293 | (4,023 | ) | (298,344 | ) | 269,929 | |||||||||||||
Income tax benefit (provision) | 152,197 | (172,128 | ) | (15,441 | ) | — | (35,372 | ) | ||||||||||||
Earnings (loss) from continuing operations | 240,200 | 312,165 | (19,464 | ) | (298,344 | ) | 234,557 | |||||||||||||
Earnings from discontinued operations, net of tax | 174,673 | — | 570 | (570 | ) | 174,673 | ||||||||||||||
Net earnings (loss) | 414,873 | 312,165 | (18,894 | ) | (298,914 | ) | 409,230 | |||||||||||||
Net loss attributable to noncontrolling interests | — | — | 5,643 | — | 5,643 | |||||||||||||||
Net earnings (loss) attributable to IAC shareholders | $ | 414,873 | $ | 312,165 | $ | (13,251 | ) | $ | (298,914 | ) | $ | 414,873 | ||||||||
Comprehensive income (loss)attributable to IAC shareholders | $ | 340,219 | $ | 303,976 | $ | (84,767 | ) | $ | (219,209 | ) | $ | 340,219 | ||||||||
Statement of operations for the year ended December 31, 2013: | ||||||||||||||||||||
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | IAC Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenue | $ | — | $ | 2,183,969 | $ | 843,133 | $ | (4,115 | ) | $ | 3,022,987 | |||||||||
Operating costs and expenses: | ||||||||||||||||||||
Cost of revenue (exclusive of depreciation shown separately below) | 2,456 | 600,511 | 403,614 | (2,860 | ) | 1,003,721 | ||||||||||||||
Selling and marketing expense | 2,563 | 769,115 | 185,865 | (1,133 | ) | 956,410 | ||||||||||||||
General and administrative expense | 97,025 | 164,173 | 117,066 | (122 | ) | 378,142 | ||||||||||||||
Product development expense | 4,685 | 100,350 | 34,724 | — | 139,759 | |||||||||||||||
Depreciation | 1,386 | 38,938 | 18,585 | — | 58,909 | |||||||||||||||
Amortization of intangibles | — | 40,277 | 19,566 | — | 59,843 | |||||||||||||||
Total operating costs and expenses | 108,115 | 1,713,364 | 779,420 | (4,115 | ) | 2,596,784 | ||||||||||||||
Operating (loss) income | (108,115 | ) | 470,605 | 63,713 | — | 426,203 | ||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates | 439,925 | 62,402 | (303 | ) | (508,639 | ) | (6,615 | ) | ||||||||||||
Interest expense | (29,417 | ) | (3,979 | ) | (200 | ) | — | (33,596 | ) | |||||||||||
Other (expense) income, net | (35,331 | ) | (35,040 | ) | 100,680 | — | 30,309 | |||||||||||||
Earnings from continuing operations before income taxes | 267,062 | 493,988 | 163,890 | (508,639 | ) | 416,301 | ||||||||||||||
Income tax benefit (provision) | 16,796 | (156,170 | ) | 4,872 | — | (134,502 | ) | |||||||||||||
Earnings from continuing operations | 283,858 | 337,818 | 168,762 | (508,639 | ) | 281,799 | ||||||||||||||
Earnings (losses) from discontinued operations, net of tax | 1,926 | — | (39 | ) | 39 | 1,926 | ||||||||||||||
Net earnings | 285,784 | 337,818 | 168,723 | (508,600 | ) | 283,725 | ||||||||||||||
Net loss attributable to noncontrolling interests | — | — | 2,059 | — | 2,059 | |||||||||||||||
Net earnings attributable to IAC shareholders | $ | 285,784 | $ | 337,818 | $ | 170,782 | $ | (508,600 | ) | $ | 285,784 | |||||||||
Comprehensive income attributable to IAC shareholders | $ | 304,907 | $ | 338,683 | $ | 181,481 | $ | (520,164 | ) | $ | 304,907 | |||||||||
Statement of operations for the year ended December 31, 2012: | ||||||||||||||||||||
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | IAC Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenue | $ | — | $ | 1,986,527 | $ | 820,759 | $ | (6,353 | ) | $ | 2,800,933 | |||||||||
Operating costs and expenses: | ||||||||||||||||||||
Cost of revenue (exclusive of depreciation shown separately below) | 5,194 | 597,588 | 393,811 | (4,905 | ) | 991,688 | ||||||||||||||
Selling and marketing expense | 4,081 | 669,448 | 222,374 | (1,465 | ) | 894,438 | ||||||||||||||
General and administrative expense | 121,919 | 152,166 | 112,359 | 17 | 386,461 | |||||||||||||||
Product development expense | 5,611 | 83,008 | 27,907 | — | 116,526 | |||||||||||||||
Depreciation | 832 | 35,544 | 16,105 | — | 52,481 | |||||||||||||||
Amortization of intangibles | — | 10,958 | 24,813 | — | 35,771 | |||||||||||||||
Total operating costs and expenses | 137,637 | 1,548,712 | 797,369 | (6,353 | ) | 2,477,365 | ||||||||||||||
Operating (loss) income | (137,637 | ) | 437,815 | 23,390 | — | 323,568 | ||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates | 309,639 | 37,866 | (22,548 | ) | (350,302 | ) | (25,345 | ) | ||||||||||||
Interest expense | (1,835 | ) | (4,174 | ) | (140 | ) | — | (6,149 | ) | |||||||||||
Other (expense) income, net | (82,900 | ) | (3,733 | ) | 83,621 | — | (3,012 | ) | ||||||||||||
Earnings from continuing operations before income taxes | 87,267 | 467,774 | 84,323 | (350,302 | ) | 289,062 | ||||||||||||||
Income tax benefit (provision) | 81,050 | (146,333 | ) | (53,932 | ) | — | (119,215 | ) | ||||||||||||
Earnings from continuing operations | 168,317 | 321,441 | 30,391 | (350,302 | ) | 169,847 | ||||||||||||||
(Loss) earnings from discontinued operations, net of tax | (9,051 | ) | — | 842 | (842 | ) | (9,051 | ) | ||||||||||||
Net earnings | 159,266 | 321,441 | 31,233 | (351,144 | ) | 160,796 | ||||||||||||||
Net earnings attributable to noncontrolling interests | — | — | (1,530 | ) | — | (1,530 | ) | |||||||||||||
Net earnings attributable to IAC shareholders | $ | 159,266 | $ | 321,441 | $ | 29,703 | $ | (351,144 | ) | $ | 159,266 | |||||||||
Comprehensive income attributable to IAC shareholders | $ | 139,540 | $ | 322,212 | $ | 29,828 | $ | (352,040 | ) | $ | 139,540 | |||||||||
Statement of cash flows for the year ended December 31, 2014: | ||||||||||||||||||||
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | IAC Consolidated | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Net cash (used in) provided by operating activities attributable to continuing operations | $ | (114,773 | ) | $ | 543,087 | $ | (4,266 | ) | $ | 424,048 | ||||||||||
Cash flows from investing activities attributable to continuing operations: | ||||||||||||||||||||
Acquisitions, net of cash acquired | — | (191,238 | ) | (68,153 | ) | (259,391 | ) | |||||||||||||
Capital expenditures | (1,843 | ) | (40,422 | ) | (14,968 | ) | (57,233 | ) | ||||||||||||
Proceeds from maturities and sales of marketable debt securities | 21,644 | — | — | 21,644 | ||||||||||||||||
Purchases of marketable debt securities | (175,826 | ) | — | — | (175,826 | ) | ||||||||||||||
Proceeds from sales of long-term investments and a business | — | — | 58,388 | 58,388 | ||||||||||||||||
Purchases of long-term investments | (4,800 | ) | (7,043 | ) | (12,491 | ) | (24,334 | ) | ||||||||||||
Other, net | (2,000 | ) | 11 | (1,053 | ) | (3,042 | ) | |||||||||||||
Net cash used in investing activities attributable to continuing operations | (162,825 | ) | (238,692 | ) | (38,277 | ) | (439,794 | ) | ||||||||||||
Cash flows from financing activities attributable to continuing operations: | ||||||||||||||||||||
Dividends | (97,338 | ) | — | — | (97,338 | ) | ||||||||||||||
Issuance of common stock, net of withholding taxes | 1,609 | — | — | 1,609 | ||||||||||||||||
Excess tax benefits from stock-based awards | 34,214 | — | 10,743 | 44,957 | ||||||||||||||||
Purchase of noncontrolling interests | — | (30,000 | ) | (3,165 | ) | (33,165 | ) | |||||||||||||
Funds returned from escrow for Meetic tender offer | — | — | 12,354 | 12,354 | ||||||||||||||||
Acquisition-related contingent consideration payments | — | (736 | ) | (7,373 | ) | (8,109 | ) | |||||||||||||
Debt issuance costs | (383 | ) | — | — | (383 | ) | ||||||||||||||
Intercompany | 323,666 | (271,309 | ) | (52,357 | ) | — | ||||||||||||||
Other, net | — | (1,365 | ) | 460 | (905 | ) | ||||||||||||||
Net cash provided by (used in) financing activities attributable to continuing operations | 261,768 | (303,410 | ) | (39,338 | ) | (80,980 | ) | |||||||||||||
Total cash (used in) provided by continuing operations | (15,830 | ) | 985 | (81,881 | ) | (96,726 | ) | |||||||||||||
Total cash used in discontinued operations | (116 | ) | — | (29 | ) | (145 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | 36 | (13,204 | ) | (13,168 | ) | ||||||||||||||
Net (decrease) increase in cash and cash equivalents | (15,946 | ) | 1,021 | (95,114 | ) | (110,039 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | 782,022 | — | 318,422 | 1,100,444 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 766,076 | $ | 1,021 | $ | 223,308 | $ | 990,405 | ||||||||||||
Statement of cash flows for the year ended December 31, 2013: | ||||||||||||||||||||
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | IAC Consolidated | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Net cash (used in) provided by operating activities attributable to continuing operations | $ | (95,081 | ) | $ | 537,116 | $ | (31,074 | ) | $ | 410,961 | ||||||||||
Cash flows from investing activities attributable to continuing operations: | ||||||||||||||||||||
Acquisitions, net of cash acquired | — | (6,382 | ) | (34,052 | ) | (40,434 | ) | |||||||||||||
Capital expenditures | (1,387 | ) | (63,931 | ) | (14,993 | ) | (80,311 | ) | ||||||||||||
Proceeds from maturities and sales of marketable debt securities | 12,502 | — | — | 12,502 | ||||||||||||||||
Proceeds from sales of long-term investments and assets | 7,839 | 50,850 | 24,402 | 83,091 | ||||||||||||||||
Purchases of long-term investments | (17,814 | ) | — | (33,266 | ) | (51,080 | ) | |||||||||||||
Other, net | — | (1,725 | ) | (1,804 | ) | (3,529 | ) | |||||||||||||
Net cash provided by (used in) investing activities attributable to continuing operations | 1,140 | (21,188 | ) | (59,713 | ) | (79,761 | ) | |||||||||||||
Cash flows from financing activities attributable to continuing operations: | ||||||||||||||||||||
Proceeds from issuance of long-term debt | 500,000 | — | — | 500,000 | ||||||||||||||||
Principal payments on long-term debt | (15,844 | ) | — | — | (15,844 | ) | ||||||||||||||
Purchase of treasury stock | (264,214 | ) | — | — | (264,214 | ) | ||||||||||||||
Dividends | (79,189 | ) | — | — | (79,189 | ) | ||||||||||||||
Issuance of common stock, net of withholding taxes | (5,077 | ) | — | — | (5,077 | ) | ||||||||||||||
Excess tax benefits from stock-based awards | 32,081 | — | 810 | 32,891 | ||||||||||||||||
Purchase of noncontrolling interests | — | — | (67,947 | ) | (67,947 | ) | ||||||||||||||
Funds transferred to escrow for Meetic tender offer | — | — | (71,512 | ) | (71,512 | ) | ||||||||||||||
Acquisition-related contingent consideration payment | — | (256 | ) | — | (256 | ) | ||||||||||||||
Debt issuance costs | (7,399 | ) | — | — | (7,399 | ) | ||||||||||||||
Intercompany | 216,359 | (514,464 | ) | 298,105 | — | |||||||||||||||
Other, net | — | (1,225 | ) | (2,562 | ) | (3,787 | ) | |||||||||||||
Net cash provided by (used in) financing activities attributable to continuing operations | 376,717 | (515,945 | ) | 156,894 | 17,666 | |||||||||||||||
Total cash provided by (used in) continuing operations | 282,776 | (17 | ) | 66,107 | 348,866 | |||||||||||||||
Total cash used in discontinued operations | (1,829 | ) | — | (48 | ) | (1,877 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | 17 | 3,461 | 3,478 | ||||||||||||||||
Net increase in cash and cash equivalents | 280,947 | — | 69,520 | 350,467 | ||||||||||||||||
Cash and cash equivalents at beginning of period | 501,075 | — | 248,902 | 749,977 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 782,022 | $ | — | $ | 318,422 | $ | 1,100,444 | ||||||||||||
Statement of cash flows for the year ended December 31, 2012: | ||||||||||||||||||||
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | IAC Consolidated | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Net cash (used in) provided by operating activities attributable to continuing operations | $ | (116,353 | ) | $ | 453,692 | $ | 17,188 | $ | 354,527 | |||||||||||
Cash flows from investing activities attributable to continuing operations: | ||||||||||||||||||||
Acquisitions, net of cash acquired | (35,159 | ) | (331,182 | ) | (33,913 | ) | (400,254 | ) | ||||||||||||
Capital expenditures | (3,969 | ) | (29,550 | ) | (17,682 | ) | (51,201 | ) | ||||||||||||
Proceeds from maturities and sales of marketable debt securities | 195,501 | — | — | 195,501 | ||||||||||||||||
Purchases of marketable debt securities | (53,952 | ) | — | — | (53,952 | ) | ||||||||||||||
Proceeds from sales of long-term investments and a business | 14,194 | 272 | 150 | 14,616 | ||||||||||||||||
Purchases of long-term investments | (27,187 | ) | (724 | ) | (8,183 | ) | (36,094 | ) | ||||||||||||
Other, net | (351 | ) | (155 | ) | (9,417 | ) | (9,923 | ) | ||||||||||||
Net cash provided by (used in) investing activities attributable to continuing operations | 89,077 | (361,339 | ) | (69,045 | ) | (341,307 | ) | |||||||||||||
Cash flows from financing activities attributable to continuing operations: | ||||||||||||||||||||
Proceeds from issuance of long-term debt | 500,000 | — | — | 500,000 | ||||||||||||||||
Purchase of treasury stock | (691,830 | ) | — | — | (691,830 | ) | ||||||||||||||
Dividends | (68,163 | ) | — | — | (68,163 | ) | ||||||||||||||
Issuance of common stock, net of withholding taxes | 262,841 | — | — | 262,841 | ||||||||||||||||
Excess tax benefits from stock-based awards | 52,209 | 4,892 | — | 57,101 | ||||||||||||||||
Purchase of noncontrolling interests | (1,936 | ) | — | (2,955 | ) | (4,891 | ) | |||||||||||||
Acquisition-related contingent consideration payments | — | (10,781 | ) | — | (10,781 | ) | ||||||||||||||
Debt issuance costs | (11,001 | ) | — | — | (11,001 | ) | ||||||||||||||
Intercompany | (55,020 | ) | (86,446 | ) | 141,466 | — | ||||||||||||||
Other, net | — | — | 244 | 244 | ||||||||||||||||
Net cash (used in) provided by financing activities attributable to continuing operations | (12,900 | ) | (92,335 | ) | 138,755 | 33,520 | ||||||||||||||
Total cash (used in) provided by continuing operations | (40,176 | ) | 18 | 86,898 | 46,740 | |||||||||||||||
Total cash (used in) provided by discontinued operations | (3,971 | ) | — | 499 | (3,472 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (18 | ) | 2,574 | 2,556 | |||||||||||||||
Net (decrease) increase in cash and cash equivalents | (44,147 | ) | — | 89,971 | 45,824 | |||||||||||||||
Cash and cash equivalents at beginning of period | 545,222 | — | 158,931 | 704,153 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 501,075 | $ | — | $ | 248,902 | $ | 749,977 | ||||||||||||
QUARTERLY_RESULTS_UNAUDITED
QUARTERLY RESULTS (UNAUDITED) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
QUARTERLY RESULTS (UNAUDITED) | QUARTERLY RESULTS (UNAUDITED) | |||||||||||||||
Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | |||||||||||||
March 31(a) | June 30(a)(b) | September 30(a)(c) | December 31 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||
Revenue | $ | 740,247 | $ | 756,315 | $ | 782,231 | $ | 830,754 | ||||||||
Cost of revenue | 209,234 | 210,730 | 224,695 | 238,517 | ||||||||||||
Operating income | 71,712 | 95,690 | 100,953 | 110,372 | ||||||||||||
Earnings (loss) from continuing operations | 34,305 | (17,995 | ) | 150,261 | 67,986 | |||||||||||
(Loss) earnings from discontinued operations, net of tax | (814 | ) | (868 | ) | 175,730 | 625 | ||||||||||
Net earnings (loss) | 33,491 | (18,863 | ) | 325,991 | 68,611 | |||||||||||
Net earnings (loss) attributable to IAC shareholders | 35,885 | (17,996 | ) | 326,812 | 70,172 | |||||||||||
Per share information attributable to IAC shareholders: | ||||||||||||||||
Basic earnings (loss) per share from continuing operations(d) | $ | 0.44 | $ | (0.21 | ) | $ | 1.81 | $ | 0.83 | |||||||
Diluted earnings (loss) per share from continuing operations(d) | $ | 0.42 | $ | (0.21 | ) | $ | 1.7 | $ | 0.78 | |||||||
Basic earnings (loss) per share(d) | $ | 0.44 | $ | (0.22 | ) | $ | 3.91 | $ | 0.84 | |||||||
Diluted earnings (loss) per share(d) | $ | 0.41 | $ | (0.22 | ) | $ | 3.68 | $ | 0.78 | |||||||
Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | |||||||||||||
March 31(a) | June 30(a) | September 30(a) | December 31(a) | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||
Revenue | $ | 742,249 | $ | 799,411 | $ | 756,872 | $ | 724,455 | ||||||||
Cost of revenue | 257,474 | 273,938 | 249,888 | 222,421 | ||||||||||||
Operating income | 84,551 | 106,696 | 122,004 | 112,952 | ||||||||||||
Earnings from continuing operations | 52,709 | 58,540 | 91,721 | 78,829 | ||||||||||||
(Loss) earnings from discontinued operations, net of tax | (944 | ) | (1,068 | ) | 3,914 | 24 | ||||||||||
Net earnings | 51,765 | 57,472 | 95,635 | 78,853 | ||||||||||||
Net earnings attributable to IAC shareholders | 53,637 | 58,290 | 96,940 | 76,917 | ||||||||||||
Per share information attributable to IAC shareholders: | ||||||||||||||||
Basic earnings per share from continuing operations(d) | $ | 0.65 | $ | 0.71 | $ | 1.12 | $ | 0.93 | ||||||||
Diluted earnings per share from continuing operations(d) | $ | 0.62 | $ | 0.69 | $ | 1.08 | $ | 0.88 | ||||||||
Basic earnings per share(d) | $ | 0.64 | $ | 0.7 | $ | 1.17 | $ | 0.93 | ||||||||
Diluted earnings per share(d) | $ | 0.61 | $ | 0.67 | $ | 1.13 | $ | 0.88 | ||||||||
_______________________________________________________________________________ | ||||||||||||||||
(a) | During the fourth quarter of 2014, certain expenses were reclassified between cost of revenue, selling and marketing expense, general and administrative expense and product development expense. Accordingly, cost of revenue presented above for periods prior to the fourth quarter of 2014 differs from the amounts reflected in the Company’s quarterly reports on Form 10-Q for the first, second and third quarters of 2014 and 2013 and for the fourth quarter of 2013 reflected in the Company's annual report on Form 10-K. | |||||||||||||||
(b) | The second quarter of 2014 includes an after-tax other-than-temporary impairment charge of $63.6 million related to the write-down of a cost method investment to fair value. | |||||||||||||||
(c) | (Loss) earnings from discontinued operations, net of tax, in the third quarter of 2014 includes the release of tax reserves as a result of the expiration of the statutes of limitations for federal income taxes for the years 2001 through 2009. | |||||||||||||||
(d) | Quarterly per share amounts may not add to the related annual per share amount because of differences in the average common shares outstanding during each period. |
Schedule_II_VALUATION_AND_QUAL
Schedule II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||
Schedule II - VALUATION AND QUALIFYING ACCOUNTS | Schedule II | |||||||||||||||||||
IAC/INTERACTIVECORP AND SUBSIDIARIES | ||||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||
Description | Balance at | Charges to | Charges to | Deductions | Balance at | |||||||||||||||
Beginning | Earnings | Other Accounts | End of Period | |||||||||||||||||
of Period | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
2014 | ||||||||||||||||||||
Allowance for doubtful accounts and revenue reserves | $ | 8,540 | $ | 15,226 | (1) | $ | (116 | ) | $ | (11,213 | ) | (4) | $ | 12,437 | ||||||
Sales returns accrual | 1,208 | 19,743 | — | (19,832 | ) | 1,119 | ||||||||||||||
Deferred tax valuation allowance | 62,353 | 34,133 | (2) | 1,864 | (3) | — | 98,350 | |||||||||||||
Other reserves | 2,518 | 2,204 | ||||||||||||||||||
2013 | ||||||||||||||||||||
Allowance for doubtful accounts and revenue reserves | $ | 8,775 | $ | 12,275 | (1) | $ | 564 | $ | (13,074 | ) | (4) | $ | 8,540 | |||||||
Magazine publishing allowance for newsstand returns | 2,313 | 164 | (5) | 45 | (2,522 | ) | (6) | — | ||||||||||||
Sales returns accrual | 1,244 | 19,176 | — | (19,212 | ) | 1,208 | ||||||||||||||
Deferred tax valuation allowance | 60,783 | 8,864 | (7) | (7,294 | ) | (8) | — | 62,353 | ||||||||||||
Other reserves | 1,925 | 2,518 | ||||||||||||||||||
2012 | ||||||||||||||||||||
Allowance for doubtful accounts and revenue reserves | $ | 7,309 | $ | 12,237 | (1) | $ | 654 | $ | (11,425 | ) | (4) | $ | 8,775 | |||||||
Magazine publishing allowance for newsstand returns | — | 10,426 | (5) | 33 | (8,146 | ) | (6) | 2,313 | ||||||||||||
Sales returns accrual | 1,020 | 17,728 | — | (17,504 | ) | 1,244 | ||||||||||||||
Deferred tax valuation allowance | 45,084 | 9,320 | (9) | 6,379 | (3) | — | 60,783 | |||||||||||||
Other reserves | 2,119 | 1,925 | ||||||||||||||||||
_________________________________________________________ | ||||||||||||||||||||
(1) | Additions to the allowance for doubtful accounts are charged to expense. Additions to the revenue reserves are charged against revenue. | |||||||||||||||||||
(2) | Amount is primarily related to other-than-temporary impairment charges for certain cost method investments and an increase in federal net operating losses, foreign tax credits, and state tax credits. | |||||||||||||||||||
(3) | Amount is primarily related to unbenefited unrealized losses on available-for-sale marketable equity securities included in accumulated other comprehensive income. | |||||||||||||||||||
(4) | Write-off of fully reserved accounts receivable. | |||||||||||||||||||
(5) | Additions to the magazine publishing allowance for newsstand returns are related to magazine publishing at Newsweek and are charged against revenue. The Newsweek print business was transitioned to a digital only publication in December 2012 (and was subsequently sold in August 2013). | |||||||||||||||||||
(6) | Amount represents returns of magazines at Newsweek. The Newsweek print business was transitioned to a digital only publication in December 2012 (and was subsequently sold in August 2013). | |||||||||||||||||||
(7) | Amount is primarily related to foreign and federal net operating losses, partially offset by a decrease in deferred tax assets for investments in subsidiaries and available-for-sale securities. | |||||||||||||||||||
(8) | Amount is primary related to the release of a valuation allowance on unrealized gains on available-for-sale securities included in accumulated other comprehensive income. | |||||||||||||||||||
(9) | Amount is primarily related to an unbenefited other-than-temporary impairment charge related to a long-term marketable equity security, an increase in deferred tax assets for investments in subsidiaries and an increase in federal net operating losses. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Basis of Presentation, Consolidation and Accounting for Investments | Basis of Presentation | |
The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP"). | ||
Basis of Consolidation and Accounting for Investments | ||
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. Intercompany transactions and accounts have been eliminated. | ||
Investments in the common stock or in-substance common stock of entities in which the Company has the ability to exercise significant influence over the operating and financial matters of the investee, but does not have a controlling financial interest, are accounted for using the equity method. Investments in the common stock or in-substance common stock of entities in which the Company does not have the ability to exercise significant influence over the operating and financial matters of the investee are accounted for using the cost method. Investments in companies that IAC does not control, which are not in the form of common stock or in-substance common stock, are also accounted for using the cost method. The Company evaluates each cost and equity method investment for impairment on a quarterly basis and recognizes an impairment loss if a decline in value is determined to be other-than-temporary. Such impairment evaluations include, but are not limited to: the current business environment, including competition; going concern considerations such as financial condition, the rate at which the investee utilizes cash and the investee's ability to obtain additional financing to achieve its business plan; the need for changes to the investee's existing business model due to changing business and regulatory environments and its ability to successfully implement necessary changes; and comparable valuations. If the Company has not identified events or changes in circumstances that may have a significant adverse effect on the fair value of a cost method investment, then the fair value of such cost method investment is not estimated, as it is impracticable to do so. | ||
Accounting Estimates | 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 those estimates. | ||
On an ongoing basis, the Company evaluates its estimates and judgments including those related to: the fair values of marketable securities and other investments; the recoverability of goodwill and indefinite-lived intangible assets; the useful lives and recovery of definite-lived intangible assets and property and equipment; the carrying value of accounts receivable, including the determination of the allowance for doubtful accounts and revenue reserves; the fair value of acquisition-related contingent consideration; the liabilities for uncertain tax positions; 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. | ||
Revenue Recognition | Revenue Recognition | |
The Company recognizes revenue when persuasive evidence of an arrangement exists, services are rendered or merchandise is delivered to customers, the fee or price charged is fixed or determinable and collectability is reasonably assured. Deferred revenue is recorded when payments are received in advance of the Company's rendering of services or delivery of merchandise. | ||
Search & Applications | ||
The Search & Applications segment's revenue consists principally of advertising revenue, which is generated primarily through the display of paid listings in response to search queries, as well as from display advertisements appearing on its websites and to a lesser extent, the syndication of search results generated by Ask-branded destination search websites. The Company obtains the substantial majority of its paid listings from third-party providers, primarily Google Inc. ("Google"). Paid listings are priced on a price per click basis and when a user submits a search query and then clicks on a Google paid listing displayed in response to the query, Google bills the advertiser that purchased the paid listing directly and shares a portion of the fee charged to the advertiser with the Company. The Company recognizes paid listing revenue from Google when it delivers the user's click. In cases where the user's click is generated due to the efforts of a third-party distributor, the Company recognizes the amount due from Google as revenue and records the revenue share or other payment obligation to the third-party distributor as traffic acquisition costs. | ||
Search & Applications also generates revenue from subscription fees, which is recognized over the terms of the applicable subscriptions (which range from one to two years) and from sales of apps and in-app purchases, which is recognized at the time of the sale. | ||
The Match Group | ||
Revenue of the dating businesses is derived principally from subscription fees for subscription-based online personals and related services. Subscription fee revenue is recognized over the terms of the applicable subscriptions, which primarily range from one to six months. Deferred revenue at the dating businesses is $117.9 million and $116.5 million at December 31, 2014 and 2013, respectively. The dating businesses also earn revenue from online advertising, which is recognized when an ad is displayed, and the purchase of add-on or premium features, which is recognized based on usage. | ||
The Princeton Review and Tutor's revenue consists primarily of fees received for in-person and online test preparation classes, access to online test preparation materials and individual tutoring services. Fees from classes and access to online materials are recognized over the period of the course and the period of the online access, respectively. Tutoring fees are generally collected in the form of subscription fees that entitle the subscriber to a certain number of tutoring sessions over a certain period of time. These fees are recognized over the term of the subscription based on usage. | ||
DailyBurn's revenue consists primarily of subscription fee revenue, which is recognized over the terms for the applicable subscriptions, which range from one to twelve months. | ||
Media | ||
Revenue of businesses included in this segment is generated primarily through media production, subscriptions and advertising. Media production revenue is recognized when the production is available for the customer to broadcast or exhibit, subscription fee revenue is recognized over the terms of the applicable subscriptions, which are one month or one year, and advertising revenue is recognized when an ad is displayed or over the period earned. | ||
eCommerce | ||
HomeAdvisor's lead acceptance revenue is generated and recognized when an in-network home service professional is delivered a consumer lead. HomeAdvisor's membership subscription revenue is generated through subscription sales to service professionals and is deferred and recognized over the terms of the memberships, which are one month, three months, or one year. HomeAdvisor's website hosting revenue is deferred and recognized over the period of the hosting agreement. | ||
ShoeBuy's revenue consists of merchandise sales, reduced by incentive discounts and sales returns, and is recognized when delivery to the customer has occurred. Delivery is considered to have occurred when the customer takes title and assumes the risks and rewards of ownership, which is on the date of shipment. Accruals for returned merchandise are based on historical experience. Shipping and handling fees billed to customers are recorded as revenue. The costs associated with shipping goods to customers are recorded as cost of revenue. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
Cash and cash equivalents include cash and short-term investments, with maturities of less than 91 days from the date of purchase. Domestically, cash equivalents primarily consist of commercial paper rated A2/P2 or better and AAA rated money market funds. Internationally, cash equivalents primarily consist of AAA rated money market funds and time deposits. | ||
Marketable Securities | Marketable Securities | |
At December 31, 2014, marketable securities consist of short-to-medium-term debt securities issued by investment grade corporate issuers and an equity security. The Company invests in marketable debt securities with active secondary or resale markets to ensure portfolio liquidity to fund current operations or satisfy other cash requirements as needed. The Company also invests in marketable equity securities as part of its investment strategy. All marketable securities are classified as available-for-sale and are reported at fair value. The unrealized gains and losses on marketable securities, net of tax, are included in accumulated other comprehensive income as a separate component of shareholders' equity. The specific-identification method is used to determine the cost of securities sold and the amount of unrealized gains and losses reclassified out of accumulated other comprehensive income into earnings. | ||
The Company employs a methodology that considers available evidence in evaluating potential other-than-temporary impairments of its investments. Investments are considered to be impaired when a decline in fair value below the amortized cost basis is determined to be other-than-temporary. Factors considered in determining whether a loss is other-than-temporary include the length of time and extent to which fair value has been less than the amortized cost basis, the financial condition and near-term prospects of the issuer, and whether it is not more likely than not that the Company will be required to sell the security before the recovery of the amortized cost basis, which may be maturity. If a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded in current earnings and a new cost basis in the investment is established. | ||
Certain Risks and Concentrations | Certain Risks and Concentrations | |
A substantial portion of the Company's revenue is derived from online advertising, the market for which is highly competitive and rapidly changing. Significant changes in this industry or changes in advertising spending behavior or in customer buying behavior could adversely affect our operating results. Most of the Company's online advertising revenue is attributable to a services agreement with Google, which expires on March 31, 2016. Our services agreement requires that we comply with certain guidelines promulgated by Google. Subject to certain limitations, Google may unilaterally update its policies and guidelines, which could require modifications to, or prohibit and/or render obsolete certain of our products, services and/or business practices, which could be costly to address or otherwise have an adverse effect on our business, financial condition and results of operations. For the years ended December 31, 2014, 2013 and 2012, revenue earned from Google is $1.4 billion, $1.5 billion and $1.4 billion, respectively. This revenue is earned by the businesses comprising the Search & Applications segment. Accounts receivable related to revenue earned from Google totaled $118.7 million and $112.3 million at December 31, 2014 and 2013, respectively. | ||
The Company's business is subject to certain risks and concentrations including dependence on third-party technology providers, exposure to risks associated with online commerce security and credit card fraud. | ||
Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash and cash equivalents and marketable securities. Cash and cash equivalents are maintained with financial institutions and are in excess of Federal Deposit Insurance Corporation insurance limits. | ||
Accounts Receivable | Accounts Receivable | |
Accounts receivable are stated at amounts due from customers, net of an allowance for doubtful accounts and revenue reserves. Accounts receivable outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time accounts receivable are past due, the Company's previous loss history, the specific customer's ability to pay its obligation to the Company and the condition of the general economy and the customer's industry. The Company writes off accounts receivable when they become uncollectible. The Company also maintains allowances to reserve for potential credits issued to customers or other revenue adjustments. The amounts of these reserves are based, in part, on historical experience. | ||
Property and Equipment | Property and Equipment | |
Property and equipment, including significant improvements, are recorded at cost. Repairs and maintenance costs are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. | ||
Asset Category | Estimated | |
Useful Lives | ||
Buildings and leasehold improvements | 3 to 39 Years | |
Computer equipment and capitalized software | 2 to 3 Years | |
Furniture and other equipment | 3 to 12 Years | |
The Company capitalizes certain internal use software costs including external direct costs utilized in developing or obtaining the software and compensation for personnel directly associated with the development of the software. Capitalization of such costs begins when the preliminary project stage is complete and ceases when the project is substantially complete and ready for its intended purpose. The net book value of capitalized internal use software is $36.9 million and $30.9 million at December 31, 2014 and 2013, respectively. | ||
Business Combinations | Business Combinations | |
The purchase price of each acquisition is attributed to the assets acquired and liabilities assumed based on their fair values at the date of acquisition, including identifiable intangible assets that either arise from a contractual or legal right or are separable from goodwill. The fair value of these intangible assets is based on detailed valuations that use information and assumptions provided by management. The excess purchase price over the net tangible and identifiable intangible assets is recorded as goodwill. | ||
In connection with some business combinations, the Company has entered into contingent consideration arrangements that are determined to be part of the purchase price. Each of these arrangements are recorded at its fair value at the time of the acquisition and reflected at current fair value for each subsequent reporting period thereafter until settled. The contingent consideration arrangements are generally based upon earnings performance and/or operating metrics. The Company generally determines the fair value of contingent consideration using probability-weighted analyses over the period in which the obligation is expected to be settled, and, to the extent the arrangement is long-term in nature, applies a discount rate that appropriately captures the risk associated with the obligation. Significant changes in forecasted earnings or operating metrics would result in a significantly higher or lower fair value measurement. Determining fair value is inherently difficult and subjective and can have a material impact on our consolidated financial statements. The changes in the remeasured fair value of the contingent consideration arrangements each reporting period are recognized in “General and administrative expense” in the accompanying consolidated statement of operations. See Note 7 for a discussion of contingent consideration arrangements. | ||
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets | |
Goodwill acquired in business combinations is assigned to the reporting unit(s) that is expected to benefit from the combination as of the acquisition date. The Company assesses goodwill and indefinite-lived intangible assets for impairment annually as of October 1, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit or the fair value of an indefinite-lived intangible asset below its carrying value. | ||
There were no material impairment charges recorded in the three year period ended December 31, 2014. At October 1, 2014, the date of our most recent annual impairment assessment, the fair value of the Company's reporting units exceed their carrying values. The fair value of the Search & Applications reporting unit currently exceeds its carrying value by approximately 15%. If operating results vary significantly from anticipated results, future, potentially material, impairments of goodwill and/or indefinite-lived intangible assets could occur. To illustrate the magnitude of a potential impairment charge relative to future changes in estimated fair value, had the estimated fair value of Search & Applications been hypothetically lower by 20% as of October 1, 2014, the carrying value of Search & Applications would have exceeded its fair value by approximately $100 million. | ||
The Company has the option to qualitatively assess whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If the Company elects to perform a qualitative assessment and concludes it is not more likely than not that the fair value of the reporting unit is less than its carrying value, no further assessment of that reporting unit's goodwill is necessary; otherwise, the fair value of the reporting unit has to be determined and if the carrying value of a reporting unit's goodwill exceeds its implied fair value, an impairment loss equal to the excess is recorded. The Company also has the option to qualitatively assess whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying value. If the Company elects to perform a qualitative assessment and concludes it is not more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying value, the fair value of the asset does not need to be determined; otherwise, the fair value of the indefinite-lived intangible asset has to be determined and if its carrying value exceeds its estimated fair value, an impairment loss equal to the excess is recorded. | ||
The Company determines the fair values of its reporting units using both an income approach based on discounted cash flows ("DCF") and a market approach based on a multiple of earnings. Determining fair value requires the exercise of significant judgment with respect to several items, including the amount and timing of expected future cash flows and appropriate discount rates. The expected cash flows used in the DCF analyses are based on the Company's most recent budget and, for years beyond the budget, the Company's estimates, which are based, in part, on forecasted growth rates. The discount rates used in the DCF analyses reflect the risks inherent in the expected future cash flows of the respective reporting units. Assumptions used in the DCF analyses, including the discount rate, are assessed annually based on each reporting unit's current results and forecast, as well as macroeconomic and industry specific factors. The discount rates used in the Company's annual goodwill impairment assessment ranged from 13% to 19% in 2014 and 13% to 25% in 2013. | ||
The Company determines the fair values of its indefinite-lived intangible assets using avoided royalty DCF analyses. Significant judgments inherent in these analyses include the selection of appropriate royalty and discount rates and estimating the amount and timing of expected future cash flows. The discount rates used in the DCF analyses reflect the risks inherent in the expected future cash flows generated by the respective intangible assets. The royalty rates used in the DCF analyses are based upon an estimate of the royalty rates that a market participant would pay to license the Company's trade names and trademarks. Assumptions used in the avoided royalty DCF analyses, including the discount rate and royalty rate, are assessed annually based on the actual and projected cash flows related to the asset, as well as macroeconomic and industry specific factors. The discount rates used in the Company's annual indefinite-lived impairment assessment ranged from 10% to 20% in 2014 and 10% to 18% in 2013, and the royalty rates used ranged from 1% to 9% in both 2014 and 2013. | ||
The Company's reporting units are consistent with its determination of its operating segments. Goodwill is tested for impairment at the reporting unit level. See Note 13 for additional information regarding the Company's method of determining operating and reportable segments. | ||
Long-Lived Assets and Intangible Assets with Definite Lives | Long-Lived Assets and Intangible Assets with Definite Lives | |
Long-lived assets, which consist of property and equipment and intangible assets with definite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The carrying value of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the carrying value is deemed not to be recoverable, an impairment loss is recorded equal to the amount by which the carrying value of the long-lived asset exceeds its fair value. Amortization of definite-lived intangible assets is computed either on a straight-line basis or based on the pattern in which the economic benefits of the asset will be realized. | ||
Fair Value Measurements | Fair Value Measurements | |
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 prices for identical assets and liabilities in active markets. | |
• | Level 2: Other inputs, which are observable directly or indirectly, such as quoted prices for similar assets or liabilities in active markets, quoted 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 Note 7 for a discussion of fair value measurements made using Level 3 inputs. | |
The Company's non-financial assets, such as goodwill, intangible assets and property and equipment, as well as equity and cost method investments, are adjusted to fair value only when an impairment charge is recognized. Such fair value measurements are based predominantly on Level 3 inputs. | ||
Traffic Acquisition Costs | Traffic Acquisition Costs | |
Traffic acquisition costs consist of payments made to partners who distribute our B2B customized browser-based applications, integrate our paid listings into their websites or direct traffic to our websites. These payments include amounts based on revenue share and other arrangements. The Company expenses these payments in the period incurred as a component of cost of revenue in the accompanying consolidated statement of operations. | ||
Advertising Costs | Advertising Costs | |
Advertising costs are expensed in the period incurred (when the advertisement first runs for production costs that are initially capitalized) and represent online marketing, including fees paid to search engines and third parties that distribute our B2C downloadable applications, and offline marketing, which is primarily television advertising. Advertising expense is $971.8 million, $824.1 million and $774.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||
The Company capitalizes and amortizes the costs associated with certain distribution arrangements that require it to pay a fee per access point delivered. These access points are generally in the form of downloadable applications associated with our B2C operations. These fees are amortized over the estimated useful lives of the access points to the extent the Company can reasonably estimate a probable future economic benefit and the period over which such benefit will be realized (generally 18 months). Otherwise, the fees are charged to expense as incurred. | ||
Legal Costs | Legal Costs | |
Legal costs are expensed as incurred. | ||
Income Taxes | Income Taxes | |
The Company recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. | ||
The Company accounts for income taxes under the liability method, and deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided on deferred tax assets if it is determined that it is more likely than not that the deferred tax asset will not be realized. The Company records interest, net of any applicable related income tax benefit, on potential income tax contingencies as a component of income tax expense. | ||
Earnings Per Share | Earnings Per Share | |
Basic earnings per share is computed by dividing net earnings attributable to IAC shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards vested resulting in the issuance of common stock that could share in the earnings of the Company. | ||
Foreign Currency Translation and Transaction Gains and Losses | Foreign Currency Translation and Transaction Gains and Losses | |
The financial position and operating results of foreign entities whose primary economic environment is based on their local currency are consolidated using the local currency as the functional currency. These local currency assets and liabilities are translated at the rates of exchange as of the balance sheet date, and local currency revenue and expenses of these operations are translated at average rates of exchange during the period. Translation gains and losses are included in accumulated other comprehensive income as a component of shareholders' equity. Transaction gains and losses resulting from assets and liabilities denominated in a currency other than the functional currency are included in the consolidated statement of operations as a component of other (expense) income, net. | ||
Translation gains and losses relating to foreign entities that are liquidated or substantially liquidated are reclassified out of accumulated other comprehensive income into earnings. | ||
Stock-Based Compensation | Stock-Based Compensation | |
Stock-based compensation is measured at the grant date based on the fair value of the award and is generally expensed over the requisite service period. See Note 12 for a discussion of the Company's stock-based compensation plans. | ||
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests | |
Noncontrolling interests in the consolidated subsidiaries of the Company should ordinarily be reported on the consolidated balance sheet within shareholders' equity, separately from the Company's equity. However, securities that are redeemable at the option of the holder and not solely within the control of the issuer must be classified outside of shareholders' equity. Accordingly, if redemption of the noncontrolling interests is outside the control of the Company, the interests are included outside of shareholders' equity in the accompanying consolidated balance sheet. | ||
In connection with the acquisition of certain subsidiaries, management of these businesses has retained an ownership interest. The Company is party to fair value put and call arrangements with respect to these interests. These put and call arrangements allow management of these businesses to require the Company to purchase their interests or allow the Company to acquire such interests at fair value, respectively. The put arrangements do not meet the definition of a derivative instrument as the put agreements do not provide for net settlement. These put and call arrangements become exercisable by the Company and the counter-party at various dates over the next four years. No put and call arrangements were exercised during 2014 and 2012. During 2013, two of these arrangements were exercised. These put arrangements are exercisable by the counter-party outside the control of the Company. Accordingly, to the extent that the fair value of these interests exceeds the value determined by normal noncontrolling interest accounting, the value of such interests is adjusted to fair value with a corresponding adjustment to additional paid-in capital. During the years ended December 31, 2014, 2013 and 2012, the Company recorded adjustments of $27.8 million, $40.6 million and $4.3 million, respectively, to increase these interests to fair value. Fair value determinations require high levels of judgment and are based on various valuation techniques, including market comparables and discounted cash flow projections. | ||
Recent Accounting Pronouncement | Recent Accounting Pronouncement | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, which clarifies the principles for recognizing revenue and develops a common standard for all industries. The new guidance is effective for reporting periods beginning after December 15, 2016. Entities have the option of using either a full retrospective or cumulative effect approach to adopt ASU No. 2014-09. The Company is currently evaluating the new guidance and has not yet determined whether the adoption of the new standard will have a material impact on its consolidated financial statements or the method of adoption. | ||
Reclassifications | Reclassifications | |
Certain prior year amounts have been reclassified to conform to the current year presentation. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Schedule of estimated useful lives of property and equipment | ||
Asset Category | Estimated | |
Useful Lives | ||
Buildings and leasehold improvements | 3 to 39 Years | |
Computer equipment and capitalized software | 2 to 3 Years | |
Furniture and other equipment | 3 to 12 Years |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of U.S. and foreign earnings (loss) from continuing operations before income taxes | U.S. and foreign earnings from continuing operations before income taxes are as follows: | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
U.S. | $ | 174,792 | $ | 331,520 | $ | 214,675 | ||||||
Foreign | 95,137 | 84,781 | 74,387 | |||||||||
Total | $ | 269,929 | $ | 416,301 | $ | 289,062 | ||||||
Schedule of (benefit) provision for income taxes attributable to continuing operations | The components of the (benefit) provision for income taxes attributable to continuing operations are as follows: | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Current income tax (benefit) provision : | ||||||||||||
Federal | $ | (45,842 | ) | $ | 115,250 | $ | 56,439 | |||||
State | (14,787 | ) | 13,946 | 9,204 | ||||||||
Foreign | 19,132 | 14,402 | 16,496 | |||||||||
Current income tax (benefit) provision | (41,497 | ) | 143,598 | 82,139 | ||||||||
Deferred income tax provision (benefit): | ||||||||||||
Federal | 74,255 | (821 | ) | 40,414 | ||||||||
State | 3,090 | (2,117 | ) | 1,978 | ||||||||
Foreign | (476 | ) | (6,158 | ) | (5,316 | ) | ||||||
Deferred income tax provision (benefit) | 76,869 | (9,096 | ) | 37,076 | ||||||||
Income tax provision | $ | 35,372 | $ | 134,502 | $ | 119,215 | ||||||
Schedule of Income Taxes (Payable) Receivable and Deferred Tax (Liabilities) Assets Included in Balance Sheet Captions [Table Text Block] | Income taxes receivable (payable) and deferred tax assets (liabilities) are included in the following captions in the accompanying consolidated balance sheet at December 31, 2014 and 2013: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Income taxes receivable (payable): | ||||||||||||
Other current assets | $ | 4,505 | $ | 12,242 | ||||||||
Other non-current assets | 1,478 | 19,217 | ||||||||||
Accrued expenses and other current liabilities | (41,157 | ) | (16,159 | ) | ||||||||
Income taxes payable | (32,635 | ) | (416,384 | ) | ||||||||
Net income taxes payable | $ | (67,809 | ) | $ | (401,084 | ) | ||||||
Deferred tax assets (liabilities): | ||||||||||||
Other current assets | $ | 17,993 | $ | 34,381 | ||||||||
Other non-current assets | 1,380 | 26 | ||||||||||
Accrued expenses and other current liabilities | (255 | ) | (255 | ) | ||||||||
Deferred income taxes | (409,529 | ) | (320,748 | ) | ||||||||
Net deferred tax liabilities | $ | (390,411 | ) | $ | (286,596 | ) | ||||||
Schedule of tax effects of cumulative temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities | The tax effects of cumulative temporary differences that give rise to significant deferred tax assets and deferred tax liabilities are presented below. The valuation allowance relates to deferred tax assets for which it is more likely than not that the tax benefit will not be realized. | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Deferred tax assets: | ||||||||||||
Accrued expenses | $ | 34,654 | $ | 28,005 | ||||||||
Net operating loss carryforwards | 55,579 | 52,336 | ||||||||||
Tax credit carryforwards | 13,585 | 6,138 | ||||||||||
Stock-based compensation | 69,342 | 69,101 | ||||||||||
Income tax reserves, including related interest | 2,247 | 62,852 | ||||||||||
Cost method investments | 27,581 | 2,383 | ||||||||||
Equity method investments | 14,998 | 13,584 | ||||||||||
Other | 10,075 | 10,212 | ||||||||||
Total deferred tax assets | 228,061 | 244,611 | ||||||||||
Less valuation allowance | (98,350 | ) | (62,353 | ) | ||||||||
Net deferred tax assets | 129,711 | 182,258 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Investment in subsidiaries | (378,769 | ) | (377,483 | ) | ||||||||
Intangible and other assets | (115,470 | ) | (69,530 | ) | ||||||||
Other | (25,883 | ) | (21,841 | ) | ||||||||
Total deferred tax liabilities | (520,122 | ) | (468,854 | ) | ||||||||
Net deferred tax liabilities | $ | (390,411 | ) | $ | (286,596 | ) | ||||||
Schedule of reconciliation of income tax (benefit) provision to amounts computed by applying statutory federal income tax rate to earnings (loss) from continuing operations before income taxes | A reconciliation of the income tax provision to the amounts computed by applying the statutory federal income tax rate to earnings from continuing operations before income taxes is shown as follows: | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Income tax provision at the federal statutory rate of 35% | $ | 94,475 | $ | 145,705 | $ | 101,172 | ||||||
Change in tax reserves, net | (86,151 | ) | 1,791 | 17,703 | ||||||||
Foreign income taxed at a different statutory tax rate | (8,943 | ) | (17,428 | ) | (16,240 | ) | ||||||
State income taxes, net of effect of federal tax benefit | 7,240 | 7,469 | 7,650 | |||||||||
Non-deductible goodwill associated with the sale of Urbanspoon | 6,982 | — | — | |||||||||
Non-deductible impairments for certain cost method investments | 23,310 | 1,756 | 226 | |||||||||
Other, net | (1,541 | ) | (4,791 | ) | 8,704 | |||||||
Income tax provision | $ | 35,372 | $ | 134,502 | $ | 119,215 | ||||||
Schedule of reconciliation of beginning and ending amount of unrecognized tax benefits, excluding interest | A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest, is as follows: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Balance at January 1 | $ | 275,813 | $ | 379,281 | $ | 351,561 | ||||||
Additions based on tax positions related to the current year | 2,159 | 2,887 | 6,278 | |||||||||
Additions for tax positions of prior years | 1,622 | 3,189 | 45,287 | |||||||||
Reductions for tax positions of prior years | (5,611 | ) | (17,116 | ) | (17,545 | ) | ||||||
Settlements | (5,092 | ) | (78,954 | ) | (5,349 | ) | ||||||
Expiration of applicable statutes of limitations | (238,505 | ) | (13,474 | ) | (951 | ) | ||||||
Balance at December 31 | $ | 30,386 | $ | 275,813 | $ | 379,281 | ||||||
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Schedule of goodwill and intangible assets, net | Goodwill and intangible assets, net are as follows: | |||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Goodwill | $ | 1,754,926 | $ | 1,675,323 | ||||||||||||||||||||
Intangible assets with indefinite lives | 405,234 | 376,329 | ||||||||||||||||||||||
Intangible assets with definite lives, net | 86,702 | 69,007 | ||||||||||||||||||||||
Total goodwill and intangible assets, net | $ | 2,246,862 | $ | 2,120,659 | ||||||||||||||||||||
Schedule of goodwill by reporting unit, including the changes in the carrying value | The following table presents the balance of goodwill by reporting unit, including the changes in the carrying value of goodwill, for the year ended December 31, 2014: | |||||||||||||||||||||||
Balance at | Additions | (Deductions) | Foreign | Balance at | ||||||||||||||||||||
December 31, 2013 | Exchange | December 31, 2014 | ||||||||||||||||||||||
Translation | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Search & Applications | $ | 738,062 | $ | 71,616 | $ | (33,510 | ) | $ | (1,346 | ) | $ | 774,822 | ||||||||||||
The Match Group | 775,403 | 72,833 | (1,931 | ) | (47,508 | ) | 798,797 | |||||||||||||||||
Media - Connected Ventures | 8,267 | — | — | — | 8,267 | |||||||||||||||||||
eCommerce: | ||||||||||||||||||||||||
HomeAdvisor | 131,872 | 20,646 | — | (1,197 | ) | 151,321 | ||||||||||||||||||
ShoeBuy | 21,719 | — | — | — | 21,719 | |||||||||||||||||||
Total eCommerce | 153,591 | 20,646 | — | (1,197 | ) | 173,040 | ||||||||||||||||||
Total | $ | 1,675,323 | $ | 165,095 | $ | (35,441 | ) | $ | (50,051 | ) | $ | 1,754,926 | ||||||||||||
Additions for Search & Applications and The Match Group primarily relate to the acquisitions of the ValueClick O&O website businesses and The Princeton Review, respectively. Deductions for Search & Applications principally relate to the sale of Urbanspoon. | ||||||||||||||||||||||||
The following table presents the balance of goodwill by reporting unit, including the changes in the carrying value of goodwill, for the year ended December 31, 2013: | ||||||||||||||||||||||||
Balance at | Additions | (Deductions) | Transfers | Foreign | Balance at | |||||||||||||||||||
December 31, 2012 | Exchange | December 31, 2013 | ||||||||||||||||||||||
Translation | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Search & Applications | $ | 723,650 | $ | — | $ | (160 | ) | $ | 14,572 | $ | — | $ | 738,062 | |||||||||||
The Match Group | 718,736 | 62,464 | (10,675 | ) | — | 4,878 | 775,403 | |||||||||||||||||
Media - Connected Ventures | 8,267 | — | — | — | — | 8,267 | ||||||||||||||||||
eCommerce: | ||||||||||||||||||||||||
HomeAdvisor | 111,658 | 5,317 | — | 14,373 | 524 | 131,872 | ||||||||||||||||||
CityGrid | 32,124 | — | (3,179 | ) | (28,945 | ) | — | — | ||||||||||||||||
ShoeBuy | 21,719 | — | — | — | — | 21,719 | ||||||||||||||||||
Total eCommerce | 165,501 | 5,317 | (3,179 | ) | (14,572 | ) | 524 | 153,591 | ||||||||||||||||
Total | $ | 1,616,154 | $ | 67,781 | $ | (14,014 | ) | $ | — | $ | 5,402 | $ | 1,675,323 | |||||||||||
Additions and deductions for The Match Group primarily relate to the acquisition of Twoo and the establishment of a deferred tax asset at Tutor arising from pre-acquisition net operating losses, respectively. Transfers relate to the reorganization of CityGrid in the third quarter of 2013. | ||||||||||||||||||||||||
Schedule of intangible assets with definite lives | Intangible assets with indefinite lives are trade names and trademarks acquired in various acquisitions. At December 31, 2014 and 2013, intangible assets with definite lives are as follows: | |||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Weighted-Average | |||||||||||||||||||||
Carrying | Amortization | Useful Life | ||||||||||||||||||||||
Amount | (Years) | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Content | $ | 62,602 | $ | (36,988 | ) | $ | 25,614 | 4.1 | ||||||||||||||||
Technology | 54,981 | (20,988 | ) | 33,993 | 3.2 | |||||||||||||||||||
Trade names | 30,110 | (21,681 | ) | 8,429 | 2.6 | |||||||||||||||||||
Customer lists | 24,566 | (14,050 | ) | 10,516 | 2.6 | |||||||||||||||||||
Advertiser and supplier relationships and other | 13,380 | (5,230 | ) | 8,150 | 4 | |||||||||||||||||||
Total | $ | 185,639 | $ | (98,937 | ) | $ | 86,702 | 3.4 | ||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Weighted-Average | |||||||||||||||||||||
Carrying | Amortization | Useful Life | ||||||||||||||||||||||
Amount | (Years) | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Content | $ | 47,800 | $ | (22,373 | ) | $ | 25,427 | 4 | ||||||||||||||||
Technology | 41,694 | (25,324 | ) | 16,370 | 2.9 | |||||||||||||||||||
Trade names | 29,283 | (16,427 | ) | 12,856 | 3 | |||||||||||||||||||
Customer lists | 22,584 | (13,116 | ) | 9,468 | 2.5 | |||||||||||||||||||
Advertiser and supplier relationships | 10,956 | (6,070 | ) | 4,886 | 2.9 | |||||||||||||||||||
Total | $ | 152,317 | $ | (83,310 | ) | $ | 69,007 | 3.2 | ||||||||||||||||
Schedule of expected amortization of intangible assets with definite lives | At December 31, 2014, amortization of intangible assets with definite lives for each of the next five years and thereafter is estimated to be as follows: | |||||||||||||||||||||||
Years Ending December 31, | (In thousands) | |||||||||||||||||||||||
2015 | $ | 44,262 | ||||||||||||||||||||||
2016 | 24,099 | |||||||||||||||||||||||
2017 | 13,441 | |||||||||||||||||||||||
2018 | 4,547 | |||||||||||||||||||||||
2019 | 353 | |||||||||||||||||||||||
Total | $ | 86,702 | ||||||||||||||||||||||
MARKETABLE_SECURITIES_Tables
MARKETABLE SECURITIES (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Marketable Securities [Abstract] | ||||||||||||||||
Schedule of current available-for-sale marketable securities | The contractual maturities of debt securities classified as current available-for-sale at December 31, 2014 are as follows: | |||||||||||||||
Amortized | Fair | |||||||||||||||
Cost | Value | |||||||||||||||
(In thousands) | ||||||||||||||||
Due in one year or less | $ | 54,502 | $ | 54,455 | ||||||||||||
Due after one year through five years | 104,916 | 104,742 | ||||||||||||||
Total | $ | 159,418 | $ | 159,197 | ||||||||||||
At December 31, 2014, current available-for-sale marketable securities are as follows: | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
(In thousands) | ||||||||||||||||
Corporate debt securities | $ | 159,418 | $ | 34 | $ | (255 | ) | $ | 159,197 | |||||||
Total debt securities | 159,418 | 34 | (255 | ) | 159,197 | |||||||||||
Equity security | 98 | 1,353 | — | 1,451 | ||||||||||||
Total marketable securities | $ | 159,516 | $ | 1,387 | $ | (255 | ) | $ | 160,648 | |||||||
The unrealized loss of $0.3 million in the table above relates to fifty-eight securities with an aggregate fair value of $123.2 million. There are no investments in current available-for-sale marketable debt securities that have been in a continuous unrealized loss position for longer than twelve months as of December 31, 2014. | ||||||||||||||||
All of the Company’s marketable debt securities are rated investment grade. The gross unrealized losses on the marketable debt securities relate principally to changes in interest rates. Because the Company does not intend to sell any marketable debt securities and it is not more likely than not that the Company will be required to sell any marketable debt securities before recovery of their amortized cost bases, which may be maturity, the Company does not consider any of its marketable debt securities to be other-than-temporarily impaired at December 31, 2014. | ||||||||||||||||
At December 31, 2013, current available-for-sale marketable securities are as follows: | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
(In thousands) | ||||||||||||||||
Corporate debt security | $ | 1,004 | $ | 4 | $ | — | $ | 1,008 | ||||||||
Total debt security | 1,004 | 4 | — | 1,008 | ||||||||||||
Equity securities | 216 | 4,780 | — | 4,996 | ||||||||||||
Total marketable securities | $ | 1,220 | $ | 4,784 | $ | — | $ | 6,004 | ||||||||
Schedule of proceeds from maturities and sales of current available-for-sale marketable securities and the related gross realized gains and losses | The following table presents the proceeds from maturities and sales of current and non-current available-for-sale marketable securities and the related gross realized gains and losses: | |||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(In thousands) | ||||||||||||||||
Proceeds from maturities and sales of available-for-sale marketable securities | $ | 25,223 | $ | 82,160 | $ | 205,944 | ||||||||||
Gross realized gains | 3,362 | 35,692 | 4,075 | |||||||||||||
Gross realized losses | — | — | (5 | ) | ||||||||||||
LONGTERM_INVESTMENTS_Tables
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Long-term Investments [Abstract] | ||||||||
Schedule of long-term investments | Long-term investments consist of: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Cost method investments | $ | 90,910 | $ | 137,286 | ||||
Equity method investments | 10,593 | 22,073 | ||||||
Long-term marketable equity securities | 7,410 | 11,711 | ||||||
Auction rate security | 6,070 | 8,920 | ||||||
Total long-term investments | $ | 114,983 | $ | 179,990 | ||||
FAIR_VALUE_MEASUREMENTS_AND_FI1
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
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: | |||||||||||||||
December 31, 2014 | ||||||||||||||||
Quoted Market | Significant | Significant | Total | |||||||||||||
Prices in Active | Other | Unobservable | Fair Value | |||||||||||||
Markets for | Observable | Inputs | Measurements | |||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 174,720 | $ | — | $ | — | $ | 174,720 | ||||||||
Commercial paper | — | 388,801 | — | 388,801 | ||||||||||||
Time deposits | — | 42,914 | — | 42,914 | ||||||||||||
Marketable securities: | ||||||||||||||||
Corporate debt securities | — | 159,197 | — | 159,197 | ||||||||||||
Equity security | 1,451 | — | — | 1,451 | ||||||||||||
Long-term investments: | ||||||||||||||||
Auction rate security | — | — | 6,070 | 6,070 | ||||||||||||
Marketable equity security | 7,410 | — | — | 7,410 | ||||||||||||
Total | $ | 183,581 | $ | 590,912 | $ | 6,070 | $ | 780,563 | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration arrangements | $ | — | $ | — | $ | (30,140 | ) | $ | (30,140 | ) | ||||||
December 31, 2013 | ||||||||||||||||
Quoted Market | Significant | Significant | Total | |||||||||||||
Prices in Active | Other | Unobservable | Fair Value | |||||||||||||
Markets for | Observable | Inputs | Measurements | |||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 698,307 | $ | — | $ | — | $ | 698,307 | ||||||||
Commercial paper | — | 12,000 | — | 12,000 | ||||||||||||
Time deposits | — | 32,325 | — | 32,325 | ||||||||||||
Marketable securities: | ||||||||||||||||
Corporate debt security | — | 1,008 | — | 1,008 | ||||||||||||
Equity securities | 4,996 | — | — | 4,996 | ||||||||||||
Long-term investments: | ||||||||||||||||
Auction rate security | — | — | 8,920 | 8,920 | ||||||||||||
Marketable equity securities | 11,711 | — | — | 11,711 | ||||||||||||
Total | $ | 715,014 | $ | 45,333 | $ | 8,920 | $ | 769,267 | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration arrangements | $ | — | $ | — | $ | (45,828 | ) | $ | (45,828 | ) | ||||||
Schedule of changes in assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The following table presents the changes in the Company's financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3): | |||||||||||||||
For the Year Ended | ||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Auction Rate | Contingent | Auction Rate | Contingent | |||||||||||||
Security | Consideration | Security | Consideration | |||||||||||||
Arrangements | Arrangements | |||||||||||||||
(In thousands) | ||||||||||||||||
Balance at January 1 | $ | 8,920 | $ | (45,828 | ) | $ | 8,100 | $ | (1,909 | ) | ||||||
Total net gains (losses): | ||||||||||||||||
Included in earnings | — | 13,367 | — | (343 | ) | |||||||||||
Included in other comprehensive (loss) income | (2,850 | ) | 3,025 | 820 | (2,445 | ) | ||||||||||
Fair value at date of acquisition | — | (8,813 | ) | — | (41,387 | ) | ||||||||||
Settlements | — | 8,109 | — | 256 | ||||||||||||
Balance at December 31 | $ | 6,070 | $ | (30,140 | ) | $ | 8,920 | $ | (45,828 | ) | ||||||
Fair Value, by Balance Sheet Grouping | The following table presents the carrying value and the fair value of financial instruments measured at fair value only for disclosure purposes: | |||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
(In thousands) | ||||||||||||||||
Long-term debt | $ | (1,080,000 | ) | $ | (1,099,813 | ) | $ | (1,080,000 | ) | $ | (1,058,396 | ) |
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of long-term debt | Long-term debt consists of: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
4.875% Senior Notes due November 30, 2018 (the "2013 Senior Notes"); interest payable each May 30 and November 30, which commenced May 30, 2014 | $ | 500,000 | $ | 500,000 | ||||
4.75% Senior Notes due December 15, 2022 (the "2012 Senior Notes"); interest payable each June 15 and December 15, which commenced June 15, 2013 | 500,000 | 500,000 | ||||||
5% New York City Industrial Development Agency Liberty Bonds due September 1, 2035 (the "Liberty Bonds"); interest payable each March 1 and September 1, which commenced March 1, 2006 | 80,000 | 80,000 | ||||||
Total long-term debt | $ | 1,080,000 | $ | 1,080,000 | ||||
Schedule of debt instrument redemption | Thereafter, we may redeem the 2012 Senior Notes at the redemption prices set forth below, together with accrued and unpaid interest thereon to the applicable redemption date, if redeemed during the twelve-month period beginning on December 15 of the years indicated below: | |||||||
Year | Percentage | |||||||
2017 | 102.375 | % | ||||||
2018 | 101.583 | % | ||||||
2019 | 100.792 | % | ||||||
2020 and thereafter | 100 | % | ||||||
We may redeem the 2013 Senior Notes at the redemption prices set forth below, together with accrued and unpaid interest thereon to the applicable redemption date, if redeemed during the twelve-month period beginning on November 30 of the years indicated below: | ||||||||
Year | Percentage | |||||||
2015 | 103.25 | % | ||||||
2016 | 101.625 | % | ||||||
2017 and thereafter | 100 | % | ||||||
Schedule of aggregate contractual maturities of long-term debt | Long-term debt maturities are as follows: | |||||||
Years Ending December 31, | (In thousands) | |||||||
2018 | $ | 500,000 | ||||||
2022 | 500,000 | |||||||
2035 | 80,000 | |||||||
Total | $ | 1,080,000 | ||||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity [Abstract] | ||||||||||||
Schedule of accumulated other comprehensive (loss) income | The following tables present the components of accumulated other comprehensive loss and items reclassified out of accumulated other comprehensive loss into earnings: | |||||||||||
Year Ended December 31, 2014 | ||||||||||||
Foreign Currency Translation Adjustment | Unrealized Gains (Losses) On Available-For-Sale Securities | Accumulated Other Comprehensive Loss | ||||||||||
(In thousands) | ||||||||||||
Balance at January 1 | $ | (20,352 | ) | $ | 7,306 | $ | (13,046 | ) | ||||
Other comprehensive loss before reclassifications, net of tax benefit of $0.7 million related to unrealized losses on available-for-sale securities | (66,496 | ) | (6,233 | ) | (72,729 | ) | ||||||
Amounts reclassified related to unrealized gains on available-for-sale securities, net of tax provision of $1.2 million | — | (1,925 | ) | (1,925 | ) | |||||||
Net current period other comprehensive loss | (66,496 | ) | (8,158 | ) | (74,654 | ) | ||||||
Balance at December 31 | $ | (86,848 | ) | $ | (852 | ) | $ | (87,700 | ) | |||
Year Ended December 31, 2013 | ||||||||||||
Foreign Currency Translation Adjustment | Unrealized (Losses) Gains On Available-For-Sale Securities | Accumulated Other Comprehensive (Loss) Income | ||||||||||
(In thousands) | ||||||||||||
Balance at January 1 | $ | (25,073 | ) | $ | (7,096 | ) | $ | (32,169 | ) | |||
Other comprehensive income before reclassifications, net of tax provision of $3.9 million related to unrealized gains on available-for-sale securities | 4,721 | 43,235 | 47,956 | |||||||||
Amounts reclassified related to unrealized gains on available-for-sale securities, net of tax provision of $6.9 million | — | (28,833 | ) | (28,833 | ) | |||||||
Net current period other comprehensive income | 4,721 | 14,402 | 19,123 | |||||||||
Balance at December 31 | $ | (20,352 | ) | $ | 7,306 | $ | (13,046 | ) | ||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||
Computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share attributable to IAC shareholders. | |||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Basic | Diluted | Basic | Diluted | Basic | Diluted | |||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Earnings from continuing operations | $ | 234,557 | $ | 234,557 | $ | 281,799 | $ | 281,799 | $ | 169,847 | $ | 169,847 | ||||||||||||
Net loss (earnings) attributable to noncontrolling interests | 5,643 | 5,643 | 2,059 | 2,059 | (1,530 | ) | (1,530 | ) | ||||||||||||||||
Earnings from continuing operations attributable to IAC shareholders | 240,200 | 240,200 | 283,858 | 283,858 | 168,317 | 168,317 | ||||||||||||||||||
Earnings (loss) from discontinued operations attributable to IAC shareholders | 174,673 | 174,673 | 1,926 | 1,926 | (9,051 | ) | (9,051 | ) | ||||||||||||||||
Net earnings attributable to IAC shareholders | $ | 414,873 | $ | 414,873 | $ | 285,784 | $ | 285,784 | $ | 159,266 | $ | 159,266 | ||||||||||||
Denominator: | ||||||||||||||||||||||||
Weighted average basic shares outstanding | 83,292 | 83,292 | 83,480 | 83,480 | 86,247 | 86,247 | ||||||||||||||||||
Dilutive securities including stock options, warrants and RSUs(a)(b) | — | 5,266 | — | 3,262 | — | 6,842 | ||||||||||||||||||
Denominator for earnings per share—weighted average shares(a)(b) | 83,292 | 88,558 | 83,480 | 86,742 | 86,247 | 93,089 | ||||||||||||||||||
Earnings (loss) per share attributable to IAC shareholders: | ||||||||||||||||||||||||
Earnings per share from continuing operations | $ | 2.88 | $ | 2.71 | $ | 3.4 | $ | 3.27 | $ | 1.95 | $ | 1.81 | ||||||||||||
Discontinued operations | 2.1 | 1.97 | 0.02 | 0.02 | (0.10 | ) | (0.10 | ) | ||||||||||||||||
Earnings per share | $ | 4.98 | $ | 4.68 | $ | 3.42 | $ | 3.29 | $ | 1.85 | $ | 1.71 | ||||||||||||
__________________________________________________________________ | ||||||||||||||||||||||||
(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 vesting of restricted stock units ("RSUs"). For the years ended December 31, 2014, 2013 and 2012 approximately 0.3 million, 0.4 million and 0.8 million shares, respectively, related to potentially dilutive securities are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. | |||||||||||||||||||||||
(b) | Performance-based stock units ("PSUs") are included in the denominator for earnings per share if (i) the applicable performance condition(s) has been met and (ii) the inclusion of the PSUs is dilutive for the respective reporting periods. For each of the years ended December 31, 2014 and 2012 less than 0.1 million PSUs that were probable of vesting were excluded from the calculation of diluted earnings per share because the performance conditions had not been met. For the year ended December 31, 2013, all PSUs that were considered to be probable of vesting were included in the calculation of diluted earnings per share as their performance conditions had been met. |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||
Schedule of changes in outstanding stock options | Stock options outstanding at December 31, 2014 and changes during the year ended December 31, 2014 is as follows: | ||||||||||||||||||
December 31, 2014 | |||||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||
Exercise | Remaining | Value | |||||||||||||||||
Price | Contractual | ||||||||||||||||||
Term | |||||||||||||||||||
(Shares and intrinsic value in thousands) | |||||||||||||||||||
Outstanding at January 1, 2014 | 8,074 | $ | 36.98 | ||||||||||||||||
Granted | 747 | 67.95 | |||||||||||||||||
Exercised | (1,790 | ) | 31.88 | ||||||||||||||||
Forfeited | (496 | ) | 46.85 | ||||||||||||||||
Expired | (15 | ) | 31.13 | ||||||||||||||||
Outstanding at December 31, 2014 | 6,520 | $ | 41.19 | 6 | $ | 133,077 | |||||||||||||
Options exercisable | 3,647 | $ | 33.5 | 4.7 | $ | 99,523 | |||||||||||||
Schedule of information about stock options outstanding and exercisable | The following table summarizes the information about stock options outstanding and exercisable at December 31, 2014: | ||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||
Range of Exercise Prices | Outstanding at | Weighted- | Weighted- | Exercisable at | Weighted- | Weighted- | |||||||||||||
December 31, | Average | Average | December 31, | Average | Average | ||||||||||||||
2014 | Remaining | Exercise | 2014 | Remaining | Exercise | ||||||||||||||
Contractual | Price | Contractual | Price | ||||||||||||||||
Life in Years | Life | ||||||||||||||||||
(Shares in thousands) | |||||||||||||||||||
$10.01 to $20.00 | 431 | 4.5 | $ | 17.91 | 431 | 4.5 | $ | 17.91 | |||||||||||
$20.01 to $30.00 | 905 | 4.3 | 22.14 | 905 | 4.3 | 22.14 | |||||||||||||
$30.01 to $40.00 | 1,148 | 6.3 | 31.84 | 749 | 6.2 | 31.6 | |||||||||||||
$40.01 to $50.00 | 2,913 | 5.7 | 45.16 | 1,426 | 4 | 44.05 | |||||||||||||
$50.01 to $60.00 | 381 | 7.3 | 58.51 | 136 | 7.3 | 58.44 | |||||||||||||
$60.01 to $70.00 | 492 | 9.3 | 66.14 | — | — | — | |||||||||||||
$70.01 to $80.00 | 250 | 9.3 | 71.55 | — | — | — | |||||||||||||
6,520 | 6 | $ | 41.19 | 3,647 | 4.7 | $ | 33.5 | ||||||||||||
Schedule of weighted average assumptions used in Black-Scholes option pricing model | The following are the weighted average assumptions used in the Black-Scholes option pricing model: | ||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Expected volatility | 31 | % | 29 | % | 31 | % | |||||||||||||
Risk-free interest rate | 1.5 | % | 1 | % | 0.6 | % | |||||||||||||
Expected term | 4.8 years | 6.2 years | 4.4 years | ||||||||||||||||
Dividend yield | 1.5 | % | 2 | % | 1.2 | % | |||||||||||||
Schedule of outstanding unvested RSUs and PSUs | Unvested RSUs and PSUs outstanding at December 31, 2014 and changes during the year ended December 31, 2014 are as follows: | ||||||||||||||||||
RSUs | PSUs | ||||||||||||||||||
Number | Weighted | Number | Weighted | ||||||||||||||||
of shares | Average | of shares(a) | Average | ||||||||||||||||
Grant Date | Grant Date | ||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||
(Shares in thousands) | |||||||||||||||||||
Unvested at January 1, 2014 | 692 | $ | 43.5 | 322 | $ | 31.27 | |||||||||||||
Granted | 257 | 67.69 | 35 | 71.39 | |||||||||||||||
Vested | (199 | ) | 36.7 | (102 | ) | 31.15 | |||||||||||||
Forfeited | — | — | (220 | ) | 31.32 | ||||||||||||||
Unvested at December 31, 2014 | 750 | $ | 53.61 | 35 | $ | 71.39 | |||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||
(a) | Included in the table are PSUs which vest at the end of two years in varying amounts depending upon certain performance conditions. The PSU table above includes these awards at their maximum potential payout. |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||
Search & Applications | $ | 1,596,251 | $ | 1,604,950 | $ | 1,465,795 | ||||||||||||||||||
The Match Group | 897,245 | 805,390 | 714,222 | |||||||||||||||||||||
Media | 181,780 | 191,434 | 164,051 | |||||||||||||||||||||
eCommerce | 435,361 | 422,066 | 457,182 | |||||||||||||||||||||
Inter-segment elimination | (1,090 | ) | (853 | ) | (317 | ) | ||||||||||||||||||
Total | $ | 3,109,547 | $ | 3,022,987 | $ | 2,800,933 | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Operating Income (Loss): | ||||||||||||||||||||||||
Search & Applications | $ | 311,340 | $ | 340,117 | $ | 305,644 | ||||||||||||||||||
The Match Group | 240,912 | 228,155 | 200,166 | |||||||||||||||||||||
Media | (40,177 | ) | (20,803 | ) | (46,902 | ) | ||||||||||||||||||
eCommerce | (1,257 | ) | (61 | ) | 15,323 | |||||||||||||||||||
Corporate | (132,091 | ) | (121,205 | ) | (150,663 | ) | ||||||||||||||||||
Total | $ | 378,727 | $ | 426,203 | $ | 323,568 | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Adjusted EBITDA:(a) | ||||||||||||||||||||||||
Search & Applications | $ | 362,029 | $ | 385,851 | $ | 328,141 | ||||||||||||||||||
The Match Group | 264,736 | 266,949 | 236,778 | |||||||||||||||||||||
Media | (36,720 | ) | (16,976 | ) | (38,555 | ) | ||||||||||||||||||
eCommerce | 17,282 | 22,890 | 31,200 | |||||||||||||||||||||
Corporate | (63,251 | ) | (60,411 | ) | (60,119 | ) | ||||||||||||||||||
Total | $ | 544,076 | $ | 598,303 | $ | 497,445 | ||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Segment Assets:(b) | ||||||||||||||||||||||||
Search & Applications | $ | 341,886 | $ | 409,116 | ||||||||||||||||||||
The Match Group | 297,166 | 341,377 | ||||||||||||||||||||||
Media | 87,448 | 92,500 | ||||||||||||||||||||||
eCommerce | 50,133 | 41,827 | ||||||||||||||||||||||
Corporate | 1,251,383 | 1,229,205 | ||||||||||||||||||||||
Total | $ | 2,028,016 | $ | 2,114,025 | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Capital expenditures: | ||||||||||||||||||||||||
Search & Applications | $ | 17,701 | $ | 22,215 | $ | 15,320 | ||||||||||||||||||
The Match Group | 22,105 | 19,997 | 19,853 | |||||||||||||||||||||
Media | 1,566 | 1,197 | 1,178 | |||||||||||||||||||||
eCommerce | 9,620 | 8,921 | 8,485 | |||||||||||||||||||||
Corporate | 6,241 | 27,981 | 6,365 | |||||||||||||||||||||
Total | $ | 57,233 | $ | 80,311 | $ | 51,201 | ||||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||||
(a) | The Company's primary financial measure is Adjusted EBITDA, which is defined as operating income excluding: (1) non-cash compensation expense; (2) depreciation; and (3) acquisition-related items consisting of (i) amortization of intangible assets and goodwill and intangible asset impairments and (ii) gains and losses recognized on changes in the fair value of contingent consideration arrangements. The Company believes this measure is useful for analysts and investors as this measure allows a more meaningful comparison between our performance and that of our competitors. Moreover, our management uses this measure internally to evaluate the performance of our business as a whole and our individual business segments. The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, and we believe that by excluding these items, Adjusted EBITDA corresponds more closely to the cash operating income generated from our business, from which capital investments are made and debt is serviced. Adjusted EBITDA has certain limitations in that it does not take into account the impact to IAC's statement of operations of certain expenses. | |||||||||||||||||||||||
(b) | Consistent with the Company's primary metric (described in (a) above), the Company excludes, if applicable, goodwill and intangible assets from the measure of segment assets presented above. | |||||||||||||||||||||||
Schedule of revenue and long-lived assets, excluding goodwill and intangible assets, by geographical segments | Revenue by geography is based on where the customer is located. Geographic information about revenue and long-lived assets is presented below: | |||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||
United States | $ | 2,146,189 | $ | 2,081,485 | $ | 1,966,383 | ||||||||||||||||||
All other countries | 963,358 | 941,502 | 834,550 | |||||||||||||||||||||
Total | $ | 3,109,547 | $ | 3,022,987 | $ | 2,800,933 | ||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Long-lived assets (excluding goodwill and intangible assets) | ||||||||||||||||||||||||
United States | $ | 281,879 | $ | 271,916 | ||||||||||||||||||||
All other countries | 20,580 | 22,048 | ||||||||||||||||||||||
Total | $ | 302,459 | $ | 293,964 | ||||||||||||||||||||
Schedule of reconciliation of Adjusted EBITDA to operating income (loss) | The following tables reconcile Adjusted EBITDA to operating income (loss) for the Company's reportable segments: | |||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||
Adjusted EBITDA | Non-Cash | Depreciation | Amortization | Acquisition-related Contingent Consideration Fair Value Adjustments | Operating | |||||||||||||||||||
Compensation | of Intangibles | Income | ||||||||||||||||||||||
Expense | (Loss) | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Search & Applications | $ | 362,029 | $ | — | $ | (16,461 | ) | $ | (33,902 | ) | $ | (326 | ) | $ | 311,340 | |||||||||
The Match Group | 264,736 | 287 | (25,628 | ) | (11,395 | ) | 12,912 | 240,912 | ||||||||||||||||
Media | (36,720 | ) | (647 | ) | (927 | ) | (2,098 | ) | 215 | (40,177 | ) | |||||||||||||
eCommerce | 17,282 | (559 | ) | (8,015 | ) | (10,531 | ) | 566 | (1,257 | ) | ||||||||||||||
Corporate | (63,251 | ) | (58,715 | ) | (10,125 | ) | — | — | (132,091 | ) | ||||||||||||||
Total | $ | 544,076 | $ | (59,634 | ) | $ | (61,156 | ) | $ | (57,926 | ) | $ | 13,367 | $ | 378,727 | |||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||
Adjusted EBITDA | Non-Cash | Depreciation | Amortization | Acquisition-related Contingent Consideration Fair Value Adjustments | Operating | |||||||||||||||||||
Compensation | of Intangibles | Income | ||||||||||||||||||||||
Expense | (Loss) | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Search & Applications | $ | 385,851 | $ | (3 | ) | $ | (18,177 | ) | $ | (27,554 | ) | $ | — | $ | 340,117 | |||||||||
The Match Group | 266,949 | (1,122 | ) | (20,203 | ) | (17,126 | ) | (343 | ) | 228,155 | ||||||||||||||
Media | (16,976 | ) | (633 | ) | (2,124 | ) | (1,070 | ) | — | (20,803 | ) | |||||||||||||
eCommerce | 22,890 | 29 | (8,887 | ) | (14,093 | ) | — | (61 | ) | |||||||||||||||
Corporate | (60,411 | ) | (51,276 | ) | (9,518 | ) | — | — | (121,205 | ) | ||||||||||||||
Total | $ | 598,303 | $ | (53,005 | ) | $ | (58,909 | ) | $ | (59,843 | ) | $ | (343 | ) | $ | 426,203 | ||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||
Adjusted EBITDA | Non-Cash | Depreciation | Amortization | Operating | ||||||||||||||||||||
Compensation | of Intangibles | Income | ||||||||||||||||||||||
Expense | (Loss) | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Search & Applications | $ | 328,141 | $ | (34 | ) | $ | (14,995 | ) | $ | (7,468 | ) | $ | 305,644 | |||||||||||
The Match Group | 236,778 | (2,818 | ) | (16,339 | ) | (17,455 | ) | 200,166 | ||||||||||||||||
Media | (38,555 | ) | (770 | ) | (1,398 | ) | (6,179 | ) | (46,902 | ) | ||||||||||||||
eCommerce | 31,200 | 2 | (11,210 | ) | (4,669 | ) | 15,323 | |||||||||||||||||
Corporate | (60,119 | ) | (82,005 | ) | (8,539 | ) | — | (150,663 | ) | |||||||||||||||
Total | $ | 497,445 | $ | (85,625 | ) | $ | (52,481 | ) | $ | (35,771 | ) | $ | 323,568 | |||||||||||
Schedule of reconciliation of segment assets to total assets | The following tables reconcile segment assets to total assets: | |||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Segment Assets | Goodwill | Indefinite-Lived | Definite-Lived | Total Assets | ||||||||||||||||||||
Intangible Assets | Intangible Assets | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Search & Applications | $ | 341,886 | $ | 774,822 | $ | 211,095 | $ | 44,355 | $ | 1,372,158 | ||||||||||||||
The Match Group | 297,166 | 798,797 | 180,558 | 27,055 | 1,303,576 | |||||||||||||||||||
Media | 87,448 | 8,267 | 1,800 | 4,900 | 102,415 | |||||||||||||||||||
eCommerce | 50,133 | 173,040 | 11,781 | 10,392 | 245,346 | |||||||||||||||||||
Corporate(c) | 1,251,383 | — | — | — | 1,251,383 | |||||||||||||||||||
Total | $ | 2,028,016 | $ | 1,754,926 | $ | 405,234 | $ | 86,702 | $ | 4,274,878 | ||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Segment Assets | Goodwill | Indefinite-Lived | Definite-Lived | Total Assets | ||||||||||||||||||||
Intangible Assets | Intangible Assets | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Search & Applications | $ | 409,116 | $ | 738,062 | $ | 195,805 | $ | 40,550 | $ | 1,383,533 | ||||||||||||||
The Match Group | 341,377 | 775,403 | 167,544 | 11,818 | 1,296,142 | |||||||||||||||||||
Media | 92,500 | 8,267 | 1,800 | 944 | 103,511 | |||||||||||||||||||
eCommerce | 41,827 | 153,591 | 11,180 | 15,695 | 222,293 | |||||||||||||||||||
Corporate(c) | 1,229,205 | — | — | — | 1,229,205 | |||||||||||||||||||
Total | $ | 2,114,025 | $ | 1,675,323 | $ | 376,329 | $ | 69,007 | $ | 4,234,684 | ||||||||||||||
_____________________________________ | ||||||||||||||||||||||||
(c) | Corporate assets consist primarily of cash and cash equivalents, marketable securities and IAC's headquarters building. |
COMMITMENTS_Tables
COMMITMENTS (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Commitments Disclosure | ||||||||||||||||||||
Schedule of future minimum payments under operating lease agreements | Future minimum payments under operating lease agreements are as follows: | |||||||||||||||||||
Years Ending December 31, | (In thousands) | |||||||||||||||||||
2015 | $ | 32,255 | ||||||||||||||||||
2016 | 31,105 | |||||||||||||||||||
2017 | 26,723 | |||||||||||||||||||
2018 | 23,338 | |||||||||||||||||||
2019 | 17,775 | |||||||||||||||||||
Thereafter | 191,108 | |||||||||||||||||||
Total | $ | 322,304 | ||||||||||||||||||
Schedule of commercial commitments outstanding | The Company also has funding commitments that could potentially require its performance in the event of demands by third parties or contingent events as follows: | |||||||||||||||||||
Amount of Commitment Expiration Per Period | ||||||||||||||||||||
Less Than | 3-Jan | 5-Mar | More Than | Total | ||||||||||||||||
1 Year | Years | Years | 5 Years | Amounts | ||||||||||||||||
Committed | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Purchase obligations | $ | 10,710 | $ | 521 | $ | — | $ | — | $ | 11,231 | ||||||||||
Letters of credit and surety bonds | 1,276 | — | 73 | 1,437 | 2,786 | |||||||||||||||
Total commercial commitments | $ | 11,986 | $ | 521 | $ | 73 | $ | 1,437 | $ | 14,017 | ||||||||||
SUPPLEMENTAL_CASH_FLOW_INFORMA1
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||||||
Schedule of supplemental disclosure of cash flow information | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Cash paid (received) during the year for: | ||||||||||||
Interest | $ | 54,027 | $ | 28,705 | $ | 5,214 | ||||||
Income tax payments | 63,521 | 112,087 | 43,316 | |||||||||
Income tax refunds | (10,477 | ) | (17,683 | ) | (8,187 | ) |
CONSOLIDATED_FINANCIAL_STATEME1
CONSOLIDATED FINANCIAL STATEMENT DETAILS (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Consolidated Financial Statement Details [Abstract] | ||||||||||||
Schedule of other current assets | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Other current assets: | ||||||||||||
Prepaid expenses | $ | 39,311 | $ | 23,942 | ||||||||
Capitalized downloadable search toolbar costs, net | 29,608 | 21,171 | ||||||||||
Production costs | 24,599 | 17,717 | ||||||||||
Deferred income taxes | 17,993 | 34,381 | ||||||||||
Income taxes receivable | 4,505 | 12,242 | ||||||||||
Other | 50,726 | 52,077 | ||||||||||
Other current assets | $ | 166,742 | $ | 161,530 | ||||||||
Schedule of property and equipment, net | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Property and equipment, net: | ||||||||||||
Buildings and leasehold improvements | $ | 230,577 | $ | 246,283 | ||||||||
Computer equipment and capitalized software | 238,960 | 208,426 | ||||||||||
Furniture and other equipment | 87,788 | 84,787 | ||||||||||
Projects in progress | 19,551 | 14,649 | ||||||||||
Land | 5,117 | 5,117 | ||||||||||
581,993 | 559,262 | |||||||||||
Accumulated depreciation and amortization | (279,534 | ) | (265,298 | ) | ||||||||
Property and equipment, net | $ | 302,459 | $ | 293,964 | ||||||||
Schedule of other non-current assets | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Other non-current assets: | ||||||||||||
Production costs | $ | 11,586 | $ | 22,423 | ||||||||
Income taxes receivable | 1,478 | 19,217 | ||||||||||
Restricted cash - funds held in escrow for Meetic tender offer | — | 71,512 | ||||||||||
Other | 43,629 | 51,533 | ||||||||||
Other non-current assets | $ | 56,693 | $ | 164,685 | ||||||||
Schedule of accrued expenses and other current liabilities | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||
Accrued expenses and other current liabilities: | ||||||||||||
Accrued employee compensation and benefits | $ | 101,830 | $ | 85,006 | ||||||||
Accrued advertising expense | 87,485 | 63,406 | ||||||||||
Accrued revenue share expense | 50,624 | 72,274 | ||||||||||
Income taxes payable | 41,157 | 16,159 | ||||||||||
Other | 116,707 | 114,193 | ||||||||||
Accrued expenses and other current liabilities | $ | 397,803 | $ | 351,038 | ||||||||
Schedule of revenue | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Revenue: | ||||||||||||
Service revenue | $ | 2,957,735 | $ | 2,869,822 | $ | 2,639,409 | ||||||
Product revenue | 151,812 | 153,165 | 161,524 | |||||||||
Revenue | $ | 3,109,547 | $ | 3,022,987 | $ | 2,800,933 | ||||||
Schedule of cost of revenue | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Cost of revenue: | ||||||||||||
Cost of service revenue | $ | 757,194 | $ | 884,189 | $ | 833,374 | ||||||
Cost of product revenue | 125,982 | 119,532 | 158,314 | |||||||||
Cost of revenue | $ | 883,176 | $ | 1,003,721 | $ | 991,688 | ||||||
Schedule of other (expense) income, net | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In thousands) | ||||||||||||
Other (expense) income, net: | ||||||||||||
Impairment of long-term investments | $ | (66,601 | ) | $ | (5,268 | ) | $ | (8,685 | ) | |||
Foreign currency exchange losses, net | (1,558 | ) | (2,883 | ) | (1,050 | ) | ||||||
Gains on sales of long-term investments and a business | 21,946 | 35,856 | 3,326 | |||||||||
Interest income | 4,352 | 2,608 | 3,462 | |||||||||
Other | (926 | ) | (4 | ) | (65 | ) | ||||||
Other (expense) income, net | $ | (42,787 | ) | $ | 30,309 | $ | (3,012 | ) | ||||
GUARANTOR_AND_NONGUARANTOR_FIN1
GUARANTOR AND NONGUARANTOR FINANCIAL INFORMATION (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Guarantor and Nonguarantor Financial Statements [Abstract] | ||||||||||||||||||||
Condensed Balance Sheet | Balance sheet at December 31, 2014: | |||||||||||||||||||
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | IAC Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash and cash equivalents | $ | 766,076 | $ | 1,021 | $ | 223,308 | $ | — | $ | 990,405 | ||||||||||
Marketable securities | 159,197 | — | 1,451 | — | 160,648 | |||||||||||||||
Accounts receivable, net | 13 | 155,262 | 80,811 | — | 236,086 | |||||||||||||||
Other current assets | 23,923 | 91,105 | 57,487 | (5,773 | ) | 166,742 | ||||||||||||||
Intercompany receivables | — | 1,688,403 | 970,810 | (2,659,213 | ) | — | ||||||||||||||
Property and equipment, net | 4,950 | 232,819 | 64,690 | — | 302,459 | |||||||||||||||
Goodwill | — | 1,249,807 | 505,119 | — | 1,754,926 | |||||||||||||||
Intangible assets, net | — | 325,771 | 166,165 | — | 491,936 | |||||||||||||||
Investment in subsidiaries | 5,035,304 | 930,443 | — | (5,965,747 | ) | — | ||||||||||||||
Other non-current assets | 44,610 | 20,682 | 109,372 | (2,988 | ) | 171,676 | ||||||||||||||
Total assets | $ | 6,034,073 | $ | 4,695,313 | $ | 2,179,213 | $ | (8,633,721 | ) | $ | 4,274,878 | |||||||||
Accounts payable, trade | $ | 3,059 | $ | 55,320 | $ | 22,784 | $ | — | $ | 81,163 | ||||||||||
Other current liabilities | 73,491 | 328,920 | 191,197 | (817 | ) | 592,791 | ||||||||||||||
Long-term debt | 1,000,000 | 80,000 | — | — | 1,080,000 | |||||||||||||||
Income taxes payable | 2,240 | 4,771 | 25,624 | — | 32,635 | |||||||||||||||
Intercompany liabilities | 2,659,213 | — | — | (2,659,213 | ) | — | ||||||||||||||
Other long-term liabilities | 304,117 | 104,219 | 54,328 | (7,944 | ) | 454,720 | ||||||||||||||
Redeemable noncontrolling interests | — | — | 40,427 | — | 40,427 | |||||||||||||||
IAC shareholders' equity | 1,991,953 | 4,122,083 | 1,843,664 | (5,965,747 | ) | 1,991,953 | ||||||||||||||
Noncontrolling interests | — | — | 1,189 | — | 1,189 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 6,034,073 | $ | 4,695,313 | $ | 2,179,213 | $ | (8,633,721 | ) | $ | 4,274,878 | |||||||||
Balance sheet at December 31, 2013: | ||||||||||||||||||||
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | IAC Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash and cash equivalents | $ | 782,022 | $ | — | $ | 318,422 | $ | — | $ | 1,100,444 | ||||||||||
Marketable securities | 1,007 | — | 4,997 | — | 6,004 | |||||||||||||||
Accounts receivable, net | 38 | 135,651 | 71,719 | — | 207,408 | |||||||||||||||
Other current assets | 45,111 | 76,572 | 40,661 | (814 | ) | 161,530 | ||||||||||||||
Intercompany receivables | — | 569,030 | 847,423 | (1,416,453 | ) | — | ||||||||||||||
Property and equipment, net | 5,316 | 221,386 | 67,262 | — | 293,964 | |||||||||||||||
Goodwill | — | 1,180,159 | 495,164 | — | 1,675,323 | |||||||||||||||
Intangible assets, net | — | 302,082 | 143,254 | — | 445,336 | |||||||||||||||
Investment in subsidiaries | 3,833,751 | 782,840 | — | (4,616,591 | ) | — | ||||||||||||||
Other non-current assets | 83,207 | 15,521 | 252,576 | (6,629 | ) | 344,675 | ||||||||||||||
Total assets | $ | 4,750,452 | $ | 3,283,241 | $ | 2,241,478 | $ | (6,040,487 | ) | $ | 4,234,684 | |||||||||
Accounts payable, trade | $ | 4,310 | $ | 51,525 | $ | 21,818 | $ | — | $ | 77,653 | ||||||||||
Other current liabilities | 41,623 | 280,549 | 187,072 | — | 509,244 | |||||||||||||||
Long-term debt | 1,000,000 | 80,000 | — | — | 1,080,000 | |||||||||||||||
Income taxes payable | 383,926 | 6,768 | 25,690 | — | 416,384 | |||||||||||||||
Intercompany liabilities | 1,416,453 | — | — | (1,416,453 | ) | — | ||||||||||||||
Other long-term liabilities | 217,404 | 96,239 | 72,941 | (7,443 | ) | 379,141 | ||||||||||||||
Redeemable noncontrolling interests | — | — | 42,861 | — | 42,861 | |||||||||||||||
IAC shareholders' equity | 1,686,736 | 2,768,160 | 1,848,431 | (4,616,591 | ) | 1,686,736 | ||||||||||||||
Noncontrolling interests | — | — | 42,665 | — | 42,665 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 4,750,452 | $ | 3,283,241 | $ | 2,241,478 | $ | (6,040,487 | ) | $ | 4,234,684 | |||||||||
Condensed Income Statement | Statement of operations for the year ended December 31, 2014: | |||||||||||||||||||
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | IAC Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenue | $ | — | $ | 2,286,621 | $ | 834,765 | $ | (11,839 | ) | $ | 3,109,547 | |||||||||
Operating costs and expenses: | ||||||||||||||||||||
Cost of revenue (exclusive of depreciation shown separately below) | 998 | 525,185 | 359,746 | (2,753 | ) | 883,176 | ||||||||||||||
Selling and marketing expense | 2,138 | 904,221 | 226,381 | (8,303 | ) | 1,124,437 | ||||||||||||||
General and administrative expense | 105,221 | 211,293 | 127,051 | 45 | 443,610 | |||||||||||||||
Product development expense | 6,496 | 110,375 | 44,472 | (828 | ) | 160,515 | ||||||||||||||
Depreciation | 1,426 | 40,645 | 19,085 | — | 61,156 | |||||||||||||||
Amortization of intangibles | — | 37,661 | 20,265 | — | 57,926 | |||||||||||||||
Total operating costs and expenses | 116,279 | 1,829,380 | 797,000 | (11,839 | ) | 2,730,820 | ||||||||||||||
Operating (loss) income | (116,279 | ) | 457,241 | 37,765 | — | 378,727 | ||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates | 253,582 | 34,613 | 452 | (298,344 | ) | (9,697 | ) | |||||||||||||
Interest expense | (51,988 | ) | (4,246 | ) | (80 | ) | — | (56,314 | ) | |||||||||||
Other income (expense), net | 2,688 | (3,315 | ) | (42,160 | ) | — | (42,787 | ) | ||||||||||||
Earnings (loss) from continuing operations before income taxes | 88,003 | 484,293 | (4,023 | ) | (298,344 | ) | 269,929 | |||||||||||||
Income tax benefit (provision) | 152,197 | (172,128 | ) | (15,441 | ) | — | (35,372 | ) | ||||||||||||
Earnings (loss) from continuing operations | 240,200 | 312,165 | (19,464 | ) | (298,344 | ) | 234,557 | |||||||||||||
Earnings from discontinued operations, net of tax | 174,673 | — | 570 | (570 | ) | 174,673 | ||||||||||||||
Net earnings (loss) | 414,873 | 312,165 | (18,894 | ) | (298,914 | ) | 409,230 | |||||||||||||
Net loss attributable to noncontrolling interests | — | — | 5,643 | — | 5,643 | |||||||||||||||
Net earnings (loss) attributable to IAC shareholders | $ | 414,873 | $ | 312,165 | $ | (13,251 | ) | $ | (298,914 | ) | $ | 414,873 | ||||||||
Comprehensive income (loss)attributable to IAC shareholders | $ | 340,219 | $ | 303,976 | $ | (84,767 | ) | $ | (219,209 | ) | $ | 340,219 | ||||||||
Statement of operations for the year ended December 31, 2013: | ||||||||||||||||||||
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | IAC Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenue | $ | — | $ | 2,183,969 | $ | 843,133 | $ | (4,115 | ) | $ | 3,022,987 | |||||||||
Operating costs and expenses: | ||||||||||||||||||||
Cost of revenue (exclusive of depreciation shown separately below) | 2,456 | 600,511 | 403,614 | (2,860 | ) | 1,003,721 | ||||||||||||||
Selling and marketing expense | 2,563 | 769,115 | 185,865 | (1,133 | ) | 956,410 | ||||||||||||||
General and administrative expense | 97,025 | 164,173 | 117,066 | (122 | ) | 378,142 | ||||||||||||||
Product development expense | 4,685 | 100,350 | 34,724 | — | 139,759 | |||||||||||||||
Depreciation | 1,386 | 38,938 | 18,585 | — | 58,909 | |||||||||||||||
Amortization of intangibles | — | 40,277 | 19,566 | — | 59,843 | |||||||||||||||
Total operating costs and expenses | 108,115 | 1,713,364 | 779,420 | (4,115 | ) | 2,596,784 | ||||||||||||||
Operating (loss) income | (108,115 | ) | 470,605 | 63,713 | — | 426,203 | ||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates | 439,925 | 62,402 | (303 | ) | (508,639 | ) | (6,615 | ) | ||||||||||||
Interest expense | (29,417 | ) | (3,979 | ) | (200 | ) | — | (33,596 | ) | |||||||||||
Other (expense) income, net | (35,331 | ) | (35,040 | ) | 100,680 | — | 30,309 | |||||||||||||
Earnings from continuing operations before income taxes | 267,062 | 493,988 | 163,890 | (508,639 | ) | 416,301 | ||||||||||||||
Income tax benefit (provision) | 16,796 | (156,170 | ) | 4,872 | — | (134,502 | ) | |||||||||||||
Earnings from continuing operations | 283,858 | 337,818 | 168,762 | (508,639 | ) | 281,799 | ||||||||||||||
Earnings (losses) from discontinued operations, net of tax | 1,926 | — | (39 | ) | 39 | 1,926 | ||||||||||||||
Net earnings | 285,784 | 337,818 | 168,723 | (508,600 | ) | 283,725 | ||||||||||||||
Net loss attributable to noncontrolling interests | — | — | 2,059 | — | 2,059 | |||||||||||||||
Net earnings attributable to IAC shareholders | $ | 285,784 | $ | 337,818 | $ | 170,782 | $ | (508,600 | ) | $ | 285,784 | |||||||||
Comprehensive income attributable to IAC shareholders | $ | 304,907 | $ | 338,683 | $ | 181,481 | $ | (520,164 | ) | $ | 304,907 | |||||||||
Statement of operations for the year ended December 31, 2012: | ||||||||||||||||||||
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | IAC Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenue | $ | — | $ | 1,986,527 | $ | 820,759 | $ | (6,353 | ) | $ | 2,800,933 | |||||||||
Operating costs and expenses: | ||||||||||||||||||||
Cost of revenue (exclusive of depreciation shown separately below) | 5,194 | 597,588 | 393,811 | (4,905 | ) | 991,688 | ||||||||||||||
Selling and marketing expense | 4,081 | 669,448 | 222,374 | (1,465 | ) | 894,438 | ||||||||||||||
General and administrative expense | 121,919 | 152,166 | 112,359 | 17 | 386,461 | |||||||||||||||
Product development expense | 5,611 | 83,008 | 27,907 | — | 116,526 | |||||||||||||||
Depreciation | 832 | 35,544 | 16,105 | — | 52,481 | |||||||||||||||
Amortization of intangibles | — | 10,958 | 24,813 | — | 35,771 | |||||||||||||||
Total operating costs and expenses | 137,637 | 1,548,712 | 797,369 | (6,353 | ) | 2,477,365 | ||||||||||||||
Operating (loss) income | (137,637 | ) | 437,815 | 23,390 | — | 323,568 | ||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates | 309,639 | 37,866 | (22,548 | ) | (350,302 | ) | (25,345 | ) | ||||||||||||
Interest expense | (1,835 | ) | (4,174 | ) | (140 | ) | — | (6,149 | ) | |||||||||||
Other (expense) income, net | (82,900 | ) | (3,733 | ) | 83,621 | — | (3,012 | ) | ||||||||||||
Earnings from continuing operations before income taxes | 87,267 | 467,774 | 84,323 | (350,302 | ) | 289,062 | ||||||||||||||
Income tax benefit (provision) | 81,050 | (146,333 | ) | (53,932 | ) | — | (119,215 | ) | ||||||||||||
Earnings from continuing operations | 168,317 | 321,441 | 30,391 | (350,302 | ) | 169,847 | ||||||||||||||
(Loss) earnings from discontinued operations, net of tax | (9,051 | ) | — | 842 | (842 | ) | (9,051 | ) | ||||||||||||
Net earnings | 159,266 | 321,441 | 31,233 | (351,144 | ) | 160,796 | ||||||||||||||
Net earnings attributable to noncontrolling interests | — | — | (1,530 | ) | — | (1,530 | ) | |||||||||||||
Net earnings attributable to IAC shareholders | $ | 159,266 | $ | 321,441 | $ | 29,703 | $ | (351,144 | ) | $ | 159,266 | |||||||||
Comprehensive income attributable to IAC shareholders | $ | 139,540 | $ | 322,212 | $ | 29,828 | $ | (352,040 | ) | $ | 139,540 | |||||||||
Condensed Cash Flow Statement | Statement of cash flows for the year ended December 31, 2014: | |||||||||||||||||||
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | IAC Consolidated | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Net cash (used in) provided by operating activities attributable to continuing operations | $ | (114,773 | ) | $ | 543,087 | $ | (4,266 | ) | $ | 424,048 | ||||||||||
Cash flows from investing activities attributable to continuing operations: | ||||||||||||||||||||
Acquisitions, net of cash acquired | — | (191,238 | ) | (68,153 | ) | (259,391 | ) | |||||||||||||
Capital expenditures | (1,843 | ) | (40,422 | ) | (14,968 | ) | (57,233 | ) | ||||||||||||
Proceeds from maturities and sales of marketable debt securities | 21,644 | — | — | 21,644 | ||||||||||||||||
Purchases of marketable debt securities | (175,826 | ) | — | — | (175,826 | ) | ||||||||||||||
Proceeds from sales of long-term investments and a business | — | — | 58,388 | 58,388 | ||||||||||||||||
Purchases of long-term investments | (4,800 | ) | (7,043 | ) | (12,491 | ) | (24,334 | ) | ||||||||||||
Other, net | (2,000 | ) | 11 | (1,053 | ) | (3,042 | ) | |||||||||||||
Net cash used in investing activities attributable to continuing operations | (162,825 | ) | (238,692 | ) | (38,277 | ) | (439,794 | ) | ||||||||||||
Cash flows from financing activities attributable to continuing operations: | ||||||||||||||||||||
Dividends | (97,338 | ) | — | — | (97,338 | ) | ||||||||||||||
Issuance of common stock, net of withholding taxes | 1,609 | — | — | 1,609 | ||||||||||||||||
Excess tax benefits from stock-based awards | 34,214 | — | 10,743 | 44,957 | ||||||||||||||||
Purchase of noncontrolling interests | — | (30,000 | ) | (3,165 | ) | (33,165 | ) | |||||||||||||
Funds returned from escrow for Meetic tender offer | — | — | 12,354 | 12,354 | ||||||||||||||||
Acquisition-related contingent consideration payments | — | (736 | ) | (7,373 | ) | (8,109 | ) | |||||||||||||
Debt issuance costs | (383 | ) | — | — | (383 | ) | ||||||||||||||
Intercompany | 323,666 | (271,309 | ) | (52,357 | ) | — | ||||||||||||||
Other, net | — | (1,365 | ) | 460 | (905 | ) | ||||||||||||||
Net cash provided by (used in) financing activities attributable to continuing operations | 261,768 | (303,410 | ) | (39,338 | ) | (80,980 | ) | |||||||||||||
Total cash (used in) provided by continuing operations | (15,830 | ) | 985 | (81,881 | ) | (96,726 | ) | |||||||||||||
Total cash used in discontinued operations | (116 | ) | — | (29 | ) | (145 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | 36 | (13,204 | ) | (13,168 | ) | ||||||||||||||
Net (decrease) increase in cash and cash equivalents | (15,946 | ) | 1,021 | (95,114 | ) | (110,039 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | 782,022 | — | 318,422 | 1,100,444 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 766,076 | $ | 1,021 | $ | 223,308 | $ | 990,405 | ||||||||||||
Statement of cash flows for the year ended December 31, 2013: | ||||||||||||||||||||
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | IAC Consolidated | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Net cash (used in) provided by operating activities attributable to continuing operations | $ | (95,081 | ) | $ | 537,116 | $ | (31,074 | ) | $ | 410,961 | ||||||||||
Cash flows from investing activities attributable to continuing operations: | ||||||||||||||||||||
Acquisitions, net of cash acquired | — | (6,382 | ) | (34,052 | ) | (40,434 | ) | |||||||||||||
Capital expenditures | (1,387 | ) | (63,931 | ) | (14,993 | ) | (80,311 | ) | ||||||||||||
Proceeds from maturities and sales of marketable debt securities | 12,502 | — | — | 12,502 | ||||||||||||||||
Proceeds from sales of long-term investments and assets | 7,839 | 50,850 | 24,402 | 83,091 | ||||||||||||||||
Purchases of long-term investments | (17,814 | ) | — | (33,266 | ) | (51,080 | ) | |||||||||||||
Other, net | — | (1,725 | ) | (1,804 | ) | (3,529 | ) | |||||||||||||
Net cash provided by (used in) investing activities attributable to continuing operations | 1,140 | (21,188 | ) | (59,713 | ) | (79,761 | ) | |||||||||||||
Cash flows from financing activities attributable to continuing operations: | ||||||||||||||||||||
Proceeds from issuance of long-term debt | 500,000 | — | — | 500,000 | ||||||||||||||||
Principal payments on long-term debt | (15,844 | ) | — | — | (15,844 | ) | ||||||||||||||
Purchase of treasury stock | (264,214 | ) | — | — | (264,214 | ) | ||||||||||||||
Dividends | (79,189 | ) | — | — | (79,189 | ) | ||||||||||||||
Issuance of common stock, net of withholding taxes | (5,077 | ) | — | — | (5,077 | ) | ||||||||||||||
Excess tax benefits from stock-based awards | 32,081 | — | 810 | 32,891 | ||||||||||||||||
Purchase of noncontrolling interests | — | — | (67,947 | ) | (67,947 | ) | ||||||||||||||
Funds transferred to escrow for Meetic tender offer | — | — | (71,512 | ) | (71,512 | ) | ||||||||||||||
Acquisition-related contingent consideration payment | — | (256 | ) | — | (256 | ) | ||||||||||||||
Debt issuance costs | (7,399 | ) | — | — | (7,399 | ) | ||||||||||||||
Intercompany | 216,359 | (514,464 | ) | 298,105 | — | |||||||||||||||
Other, net | — | (1,225 | ) | (2,562 | ) | (3,787 | ) | |||||||||||||
Net cash provided by (used in) financing activities attributable to continuing operations | 376,717 | (515,945 | ) | 156,894 | 17,666 | |||||||||||||||
Total cash provided by (used in) continuing operations | 282,776 | (17 | ) | 66,107 | 348,866 | |||||||||||||||
Total cash used in discontinued operations | (1,829 | ) | — | (48 | ) | (1,877 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | 17 | 3,461 | 3,478 | ||||||||||||||||
Net increase in cash and cash equivalents | 280,947 | — | 69,520 | 350,467 | ||||||||||||||||
Cash and cash equivalents at beginning of period | 501,075 | — | 248,902 | 749,977 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 782,022 | $ | — | $ | 318,422 | $ | 1,100,444 | ||||||||||||
Statement of cash flows for the year ended December 31, 2012: | ||||||||||||||||||||
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | IAC Consolidated | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Net cash (used in) provided by operating activities attributable to continuing operations | $ | (116,353 | ) | $ | 453,692 | $ | 17,188 | $ | 354,527 | |||||||||||
Cash flows from investing activities attributable to continuing operations: | ||||||||||||||||||||
Acquisitions, net of cash acquired | (35,159 | ) | (331,182 | ) | (33,913 | ) | (400,254 | ) | ||||||||||||
Capital expenditures | (3,969 | ) | (29,550 | ) | (17,682 | ) | (51,201 | ) | ||||||||||||
Proceeds from maturities and sales of marketable debt securities | 195,501 | — | — | 195,501 | ||||||||||||||||
Purchases of marketable debt securities | (53,952 | ) | — | — | (53,952 | ) | ||||||||||||||
Proceeds from sales of long-term investments and a business | 14,194 | 272 | 150 | 14,616 | ||||||||||||||||
Purchases of long-term investments | (27,187 | ) | (724 | ) | (8,183 | ) | (36,094 | ) | ||||||||||||
Other, net | (351 | ) | (155 | ) | (9,417 | ) | (9,923 | ) | ||||||||||||
Net cash provided by (used in) investing activities attributable to continuing operations | 89,077 | (361,339 | ) | (69,045 | ) | (341,307 | ) | |||||||||||||
Cash flows from financing activities attributable to continuing operations: | ||||||||||||||||||||
Proceeds from issuance of long-term debt | 500,000 | — | — | 500,000 | ||||||||||||||||
Purchase of treasury stock | (691,830 | ) | — | — | (691,830 | ) | ||||||||||||||
Dividends | (68,163 | ) | — | — | (68,163 | ) | ||||||||||||||
Issuance of common stock, net of withholding taxes | 262,841 | — | — | 262,841 | ||||||||||||||||
Excess tax benefits from stock-based awards | 52,209 | 4,892 | — | 57,101 | ||||||||||||||||
Purchase of noncontrolling interests | (1,936 | ) | — | (2,955 | ) | (4,891 | ) | |||||||||||||
Acquisition-related contingent consideration payments | — | (10,781 | ) | — | (10,781 | ) | ||||||||||||||
Debt issuance costs | (11,001 | ) | — | — | (11,001 | ) | ||||||||||||||
Intercompany | (55,020 | ) | (86,446 | ) | 141,466 | — | ||||||||||||||
Other, net | — | — | 244 | 244 | ||||||||||||||||
Net cash (used in) provided by financing activities attributable to continuing operations | (12,900 | ) | (92,335 | ) | 138,755 | 33,520 | ||||||||||||||
Total cash (used in) provided by continuing operations | (40,176 | ) | 18 | 86,898 | 46,740 | |||||||||||||||
Total cash (used in) provided by discontinued operations | (3,971 | ) | — | 499 | (3,472 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (18 | ) | 2,574 | 2,556 | |||||||||||||||
Net (decrease) increase in cash and cash equivalents | (44,147 | ) | — | 89,971 | 45,824 | |||||||||||||||
Cash and cash equivalents at beginning of period | 545,222 | — | 158,931 | 704,153 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 501,075 | $ | — | $ | 248,902 | $ | 749,977 | ||||||||||||
QUARTERLY_RESULTS_UNAUDITED_Ta
QUARTERLY RESULTS (UNAUDITED) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Schedule of quarterly results | ||||||||||||||||
Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | |||||||||||||
March 31(a) | June 30(a)(b) | September 30(a)(c) | December 31 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||
Revenue | $ | 740,247 | $ | 756,315 | $ | 782,231 | $ | 830,754 | ||||||||
Cost of revenue | 209,234 | 210,730 | 224,695 | 238,517 | ||||||||||||
Operating income | 71,712 | 95,690 | 100,953 | 110,372 | ||||||||||||
Earnings (loss) from continuing operations | 34,305 | (17,995 | ) | 150,261 | 67,986 | |||||||||||
(Loss) earnings from discontinued operations, net of tax | (814 | ) | (868 | ) | 175,730 | 625 | ||||||||||
Net earnings (loss) | 33,491 | (18,863 | ) | 325,991 | 68,611 | |||||||||||
Net earnings (loss) attributable to IAC shareholders | 35,885 | (17,996 | ) | 326,812 | 70,172 | |||||||||||
Per share information attributable to IAC shareholders: | ||||||||||||||||
Basic earnings (loss) per share from continuing operations(d) | $ | 0.44 | $ | (0.21 | ) | $ | 1.81 | $ | 0.83 | |||||||
Diluted earnings (loss) per share from continuing operations(d) | $ | 0.42 | $ | (0.21 | ) | $ | 1.7 | $ | 0.78 | |||||||
Basic earnings (loss) per share(d) | $ | 0.44 | $ | (0.22 | ) | $ | 3.91 | $ | 0.84 | |||||||
Diluted earnings (loss) per share(d) | $ | 0.41 | $ | (0.22 | ) | $ | 3.68 | $ | 0.78 | |||||||
Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | |||||||||||||
March 31(a) | June 30(a) | September 30(a) | December 31(a) | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||
Revenue | $ | 742,249 | $ | 799,411 | $ | 756,872 | $ | 724,455 | ||||||||
Cost of revenue | 257,474 | 273,938 | 249,888 | 222,421 | ||||||||||||
Operating income | 84,551 | 106,696 | 122,004 | 112,952 | ||||||||||||
Earnings from continuing operations | 52,709 | 58,540 | 91,721 | 78,829 | ||||||||||||
(Loss) earnings from discontinued operations, net of tax | (944 | ) | (1,068 | ) | 3,914 | 24 | ||||||||||
Net earnings | 51,765 | 57,472 | 95,635 | 78,853 | ||||||||||||
Net earnings attributable to IAC shareholders | 53,637 | 58,290 | 96,940 | 76,917 | ||||||||||||
Per share information attributable to IAC shareholders: | ||||||||||||||||
Basic earnings per share from continuing operations(d) | $ | 0.65 | $ | 0.71 | $ | 1.12 | $ | 0.93 | ||||||||
Diluted earnings per share from continuing operations(d) | $ | 0.62 | $ | 0.69 | $ | 1.08 | $ | 0.88 | ||||||||
Basic earnings per share(d) | $ | 0.64 | $ | 0.7 | $ | 1.17 | $ | 0.93 | ||||||||
Diluted earnings per share(d) | $ | 0.61 | $ | 0.67 | $ | 1.13 | $ | 0.88 | ||||||||
_______________________________________________________________________________ | ||||||||||||||||
(a) | During the fourth quarter of 2014, certain expenses were reclassified between cost of revenue, selling and marketing expense, general and administrative expense and product development expense. Accordingly, cost of revenue presented above for periods prior to the fourth quarter of 2014 differs from the amounts reflected in the Company’s quarterly reports on Form 10-Q for the first, second and third quarters of 2014 and 2013 and for the fourth quarter of 2013 reflected in the Company's annual report on Form 10-K. | |||||||||||||||
(b) | The second quarter of 2014 includes an after-tax other-than-temporary impairment charge of $63.6 million related to the write-down of a cost method investment to fair value. | |||||||||||||||
(c) | (Loss) earnings from discontinued operations, net of tax, in the third quarter of 2014 includes the release of tax reserves as a result of the expiration of the statutes of limitations for federal income taxes for the years 2001 through 2009. | |||||||||||||||
(d) | Quarterly per share amounts may not add to the related annual per share amount because of differences in the average common shares outstanding during each period |
ORGANIZATION_Details
ORGANIZATION (Details) | Dec. 31, 2014 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries where the company has consumer audiences | 200 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Search & Applications | Minimum | ||
Deferred revenue | ||
Revenue recognition period | 1 year | |
Search & Applications | Maximum | ||
Deferred revenue | ||
Revenue recognition period | 2 years | |
Dating businesses | ||
Deferred revenue | ||
Deferred revenue | 117.9 | $116.50 |
Dating businesses | Minimum | ||
Deferred revenue | ||
Revenue recognition period | 1 month | |
Dating businesses | Maximum | ||
Deferred revenue | ||
Revenue recognition period | 6 months | |
DailyBurn | Minimum | ||
Deferred revenue | ||
Revenue recognition period | 1 month | |
DailyBurn | Maximum | ||
Deferred revenue | ||
Revenue recognition period | 12 months | |
Media | Minimum | ||
Deferred revenue | ||
Revenue recognition period | 1 month | |
Media | Maximum | ||
Deferred revenue | ||
Revenue recognition period | 1 year | |
HomeAdvisor | Minimum | ||
Deferred revenue | ||
Revenue recognition period | 1 month | |
HomeAdvisor | Maximum | ||
Deferred revenue | ||
Revenue recognition period | 1 year |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accounting Policies [Abstract] | ||
Maturity period from date of purchase, short-term investments classified as cash equivalents, less than (in days) | 91 days | |
Property and equipment | ||
Net book value | $302,459 | $293,964 |
Buildings and leasehold improvements | Minimum | ||
Property and equipment | ||
Estimated useful lives, minimum (in years) | 3 years | |
Buildings and leasehold improvements | Maximum | ||
Property and equipment | ||
Estimated useful lives, minimum (in years) | 39 years | |
Computer equipment and capitalized software | Minimum | ||
Property and equipment | ||
Estimated useful lives, minimum (in years) | 2 years | |
Computer equipment and capitalized software | Maximum | ||
Property and equipment | ||
Estimated useful lives, minimum (in years) | 3 years | |
Furniture and other equipment | Minimum | ||
Property and equipment | ||
Estimated useful lives, minimum (in years) | 3 years | |
Furniture and other equipment | Maximum | ||
Property and equipment | ||
Estimated useful lives, minimum (in years) | 12 years | |
Software and Software Development Costs | ||
Property and equipment | ||
Net book value | $36,900 | $30,900 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Advertising Costs (excluding Amortization of Non-Cash Marketing) | |||
Advertising expense | $971,800,000 | $824,100,000 | $774,100,000 |
Capitalized access fees, estimated useful lives | 18 months | ||
Income Tax Uncertainties [Abstract] | |||
Tax Benefits Recognition Basis for Uncertain Tax Position Likelihood Realization Greater than Percentage | 50.00% | ||
Redeemable Noncontrolling Interest | |||
Number of years in which put and call arrangements become exercisable | 4 years | ||
Number of put and call arrangements that became exercisable | 0 | 2 | 0 |
Adjustment to increase redeemable noncontrolling interests to fair value | -27,750,000 | -40,638,000 | -4,275,000 |
Minimum | |||
Goodwill and Indefinite-Lived Intangible Assets | |||
Royalty rates used for impairment assessment of indefinite-lived intangible assets (as a percent) | 1.00% | 1.00% | |
Maximum | |||
Goodwill and Indefinite-Lived Intangible Assets | |||
Royalty rates used for impairment assessment of indefinite-lived intangible assets (as a percent) | 9.00% | 9.00% | |
Redeemable Noncontrolling Interest | |||
Redeemable Noncontrolling Interest | |||
Adjustment to increase redeemable noncontrolling interests to fair value | 27,800,000 | 40,600,000 | 4,300,000 |
Search & Applications | |||
Goodwill and Indefinite-Lived Intangible Assets | |||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 15.00% | ||
Reporting Unit Hypothetical Percentage Lower of Fair Value In Excess of Carrying Amount | 20.00% | ||
Reporting Unit Hypothetical Amount Of Fair Value In Excess Of Carrying Amount | $100,000,000 | ||
Goodwill [Member] | Minimum | |||
Goodwill and Indefinite-Lived Intangible Assets | |||
Fair Value, Discount Rate | 13.00% | 13.00% | |
Goodwill [Member] | Maximum | |||
Goodwill and Indefinite-Lived Intangible Assets | |||
Fair Value, Discount Rate | 19.00% | 25.00% | |
Indefinite-lived Intangible Assets [Member] | Minimum | |||
Goodwill and Indefinite-Lived Intangible Assets | |||
Fair Value, Discount Rate | 10.00% | 10.00% | |
Indefinite-lived Intangible Assets [Member] | Maximum | |||
Goodwill and Indefinite-Lived Intangible Assets | |||
Fair Value, Discount Rate | 20.00% | 18.00% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue, Major Customer [Line Items] | |||||||||||
Revenue | $830,754 | $782,231 | $756,315 | $740,247 | $724,455 | $756,872 | $799,411 | $742,249 | $3,109,547 | $3,022,987 | $2,800,933 |
Accounts receivable | 236,086 | 207,408 | 236,086 | 207,408 | |||||||
Google Inc. | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenue | 1,400,000 | 1,500,000 | 1,400,000 | ||||||||
Accounts receivable | $118,700 | $112,300 | $118,700 | $112,300 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
U.S. and foreign earnings (loss) from continuing operations before income taxes | |||
U.S. | $174,792,000 | $331,520,000 | $214,675,000 |
Foreign | 95,137,000 | 84,781,000 | 74,387,000 |
Earnings from continuing operations before income taxes | 269,929,000 | 416,301,000 | 289,062,000 |
Current income tax (benefit) provision : | |||
Federal | -45,842,000 | 115,250,000 | 56,439,000 |
State | -14,787,000 | 13,946,000 | 9,204,000 |
Foreign | 19,132,000 | 14,402,000 | 16,496,000 |
Current income tax (benefit) provision | -41,497,000 | 143,598,000 | 82,139,000 |
Deferred income tax provision (benefit): | |||
Federal | 74,255,000 | -821,000 | 40,414,000 |
State | 3,090,000 | -2,117,000 | 1,978,000 |
Foreign | -476,000 | -6,158,000 | -5,316,000 |
Deferred income tax provision (benefit) | 76,869,000 | -9,096,000 | 37,076,000 |
Income tax provision | 35,372,000 | 134,502,000 | 119,215,000 |
Excess tax deductions attributable to stock-based compensation | 45,000,000 | 32,900,000 | 57,100,000 |
Deferred tax assets: | |||
Accrued expenses | 34,654,000 | 28,005,000 | |
Net operating loss carryforwards | 55,579,000 | 52,336,000 | |
Tax credit carryforwards | 13,585,000 | 6,138,000 | |
Stock-based compensation | 69,342,000 | 69,101,000 | |
Income tax reserves, including related interest | 2,247,000 | 62,852,000 | |
Cost method investments | 27,581,000 | 2,383,000 | |
Equity method investments | 14,998,000 | 13,584,000 | |
Other | 10,075,000 | 10,212,000 | |
Total deferred tax assets | 228,061,000 | 244,611,000 | |
Less valuation allowance | -98,350,000 | -62,353,000 | |
Net deferred tax assets | 129,711,000 | 182,258,000 | |
Deferred tax liabilities: | |||
Investment in subsidiaries | -378,769,000 | -377,483,000 | |
Intangible and other assets | -115,470,000 | -69,530,000 | |
Other | -25,883,000 | -21,841,000 | |
Total deferred tax liabilities | -520,122,000 | -468,854,000 | |
Net deferred tax liabilities | ($390,411,000) | ($286,596,000) |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Net operating loss carryforwards and tax credits | |
Tax benefits related to NOLs | $0.80 |
Tax credit carryforwards | 19 |
Tax credit carryforwards that can be carried forward indefinitely | 10 |
Tax credit carryforwards expiring within ten years | 9 |
Federal | |
Net operating loss carryforwards and tax credits | |
Loss carryforwards | 61.5 |
State | |
Net operating loss carryforwards and tax credits | |
Loss carryforwards | 82.6 |
Capital loss carryforwards | 5.1 |
Tax credit carryforwards | 5.6 |
State | Research | |
Net operating loss carryforwards and tax credits | |
Tax credit carryforwards | 8.2 |
Foreign | |
Net operating loss carryforwards and tax credits | |
Loss carryforwards | 107.5 |
Net operating losses carryforwards that can be carried forward indefinitely | 98.1 |
Net operating losses carryforwards expiring within twenty years | 9.3 |
Tax credit carryforwards | $5.20 |
INCOME_TAXES_Details_3
INCOME TAXES (Details 3) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | |
Income taxes (payable) receivable and deferred tax (liabilities) assets include in the Balance Sheet captions [Line Items] | ||||
Increase in valuation allowance | $36,000,000 | |||
Valuation allowance related to portion of tax loss carryforwards and other items | 98,300,000 | |||
Federal statutory rate (as a percent) | 35.00% | 35.00% | 35.00% | |
Reconciliation of income tax (benefit) provision to amounts computed by applying statutory federal income tax rate to earnings (loss) from continuing operations before income taxes | ||||
Income tax provision at the federal statutory rate of 35% | 94,475,000 | 145,705,000 | 101,172,000 | |
Change in tax reserves, net | -86,151,000 | 1,791,000 | 17,703,000 | |
Foreign income taxed at a different statutory tax rate | -8,943,000 | -17,428,000 | -16,240,000 | |
State income taxes, net of effect of federal tax benefit | 7,240,000 | 7,469,000 | 7,650,000 | |
Non-deductible goodwill associated with the sale of Urbanspoon | 6,982,000 | |||
Non-deductible impairments for certain cost method investments | 23,310,000 | 1,756,000 | 226,000 | |
Other, net | -1,541,000 | -4,791,000 | 8,704,000 | |
Income tax provision | 35,372,000 | 134,502,000 | 119,215,000 | |
Undistributed earnings indefinitely reinvested outside United States | 605,700,000 | |||
Deferred tax liabilities related to non-indefinitely reinvested earnings | 141,500,000 | |||
Reconciliation of beginning and ending amount of unrecognized tax benefits, excluding interest | ||||
Balance at January 1 | 275,813,000 | 379,281,000 | 351,561,000 | |
Additions based on tax positions related to the current year | 2,159,000 | 2,887,000 | 6,278,000 | |
Additions for tax positions of prior years | 1,622,000 | 3,189,000 | 45,287,000 | |
Reductions for tax positions of prior years | -5,611,000 | -17,116,000 | -17,545,000 | |
Settlements | -5,092,000 | -78,954,000 | -5,349,000 | |
Expiration of applicable statutes of limitations | -238,505,000 | -13,474,000 | -951,000 | |
Balance at December 31 | 30,386,000 | 275,813,000 | 379,281,000 | |
Total unrecognized tax benefits including interest | 374,800,000 | |||
Unrecognized Tax Benefits Related To Federal Income Taxes Statutes Of Limitations Expiring Recognized This Quarter That Impacted Income Tax Benefit (Provision) Continuing Operations | 88,200,000 | |||
Unrecognized Tax Benefits Related To Federal Income Taxes Statutes Of Limitations Expiring Recognized This Quarter That Impacted Income Tax Benefit (Provision) Discontinued Operations | 175,700,000 | |||
Portion of unrecognized tax benefits related to deferred tax assets included in other non-current assets | 110,900,000 | |||
Unrecognized tax benefits included in accrued expenses and other current liabilities | 100,100,000 | |||
Unrecognized Tax Benefits Including Tax Interest Accrued | 33,200,000 | 408,800,000 | ||
Unrecognized tax benefits, tax positions for which the ultimate deductibility is highly certain but timing is uncertain | 30,500,000 | |||
Change In Unrecognized Tax Benefits Unrelated To The Federal Income Taxes Statute Of Limitations Expiring Reasonably Possible Within Twelve Months Of The Current Reporting Period | 8,800,000 | |||
Change In Unrecognized Tax Benefits Unrelated To The Federal Income Taxes Statute Of Limitations Expiring Reasonably Possible Within Twelve Months Of The Current Reporting Period, Income Tax Provision | 8,400,000 | |||
Deferred taxes related to interest on unrecognized tax benefits from continuing operations | 35,300,000 | 2,800,000 | 3,100,000 | |
Deferred taxes related to interest on unrecognized tax benefits from discontinued operations | 11,700,000 | 800,000 | 1,700,000 | |
Accrued interest on unrecognized tax benefits | 2,800,000 | 133,000,000 | ||
Accrued penalties on unrecognized tax benefits | 2,900,000 | 5,100,000 | ||
Other current assets | 166,742,000 | 161,530,000 | ||
Other non-current assets | 56,693,000 | 164,685,000 | ||
Accrued Liabilities, Current | -397,803,000 | -351,038,000 | ||
Income taxes payable | -32,635,000 | -416,384,000 | ||
Deferred income taxes | -409,529,000 | -320,748,000 | ||
Net deferred tax liabilities | -390,411,000 | -286,596,000 | ||
Deferred Tax (Liabilities) Assets | ||||
Reconciliation of beginning and ending amount of unrecognized tax benefits, excluding interest | ||||
Other current assets | 17,993,000 | 34,381,000 | ||
Other non-current assets | 1,380,000 | 26,000 | ||
Accrued Liabilities, Current | -255,000 | -255,000 | ||
Deferred income taxes | -409,529,000 | -320,748,000 | ||
Net deferred tax liabilities | -390,411,000 | -286,596,000 | ||
Income Taxes (Payable) Receivable | ||||
Reconciliation of beginning and ending amount of unrecognized tax benefits, excluding interest | ||||
Other current assets | 4,505,000 | 12,242,000 | ||
Other non-current assets | 1,478,000 | 19,217,000 | ||
Accrued Liabilities, Current | -41,157,000 | -16,159,000 | ||
Income taxes payable | -32,635,000 | -416,384,000 | ||
Net income taxes payable | 67,809,000 | 401,084,000 | ||
Continuing Operations [Member] | ||||
Reconciliation of beginning and ending amount of unrecognized tax benefits, excluding interest | ||||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 58,500,000 | 4,800,000 | 5,200,000 | |
Discontinued Operations [Member] | ||||
Reconciliation of beginning and ending amount of unrecognized tax benefits, excluding interest | ||||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | $19,700,000 | $1,400,000 | $2,800,000 |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Balance of goodwill and intangible assets, net | |||
Goodwill | $1,754,926,000 | $1,675,323,000 | $1,616,154,000 |
Intangible assets with indefinite lives | 405,234,000 | 376,329,000 | |
Intangible assets with definite lives, net | 86,702,000 | 69,007,000 | |
Total goodwill and intangible assets, net | 2,246,862,000 | 2,120,659,000 | |
Search & Applications | |||
Goodwill and intangible assets | |||
Goodwill, Impaired, Accumulated Impairment Loss | 916,900,000 | 916,900,000 | 916,900,000 |
Balance of goodwill and intangible assets, net | |||
Goodwill | 774,822,000 | 738,062,000 | 723,650,000 |
Intangible assets with indefinite lives | 211,095,000 | 195,805,000 | |
Intangible assets with definite lives, net | 44,355,000 | 40,550,000 | |
ShoeBuy | |||
Goodwill and intangible assets | |||
Goodwill, Impaired, Accumulated Impairment Loss | 28,000,000 | 28,000,000 | 28,000,000 |
Balance of goodwill and intangible assets, net | |||
Goodwill | 21,719,000 | 21,719,000 | 21,719,000 |
Media - Connected Ventures | |||
Goodwill and intangible assets | |||
Goodwill, Impaired, Accumulated Impairment Loss | 11,600,000 | 11,600,000 | 11,600,000 |
Balance of goodwill and intangible assets, net | |||
Goodwill | $8,267,000 | $8,267,000 | $8,267,000 |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS (Details2) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Balance of goodwill by reporting unit, including the changes in the carrying value of goodwill | |||
Balance at the beginning of the period | $1,675,323,000 | $1,616,154,000 | |
Additions | 165,095,000 | 67,781,000 | |
(Deductions) | -35,441,000 | -14,014,000 | |
Foreign Exchange Translation | -50,051,000 | 5,402,000 | |
Balance at the end of the period | 1,754,926,000 | 1,675,323,000 | |
Search & Applications | |||
Balance of goodwill by reporting unit, including the changes in the carrying value of goodwill | |||
Balance at the beginning of the period | 738,062,000 | 723,650,000 | |
Additions | 71,616,000 | ||
(Deductions) | -33,510,000 | -160,000 | |
Goodwill Transfers During Period | 14,572,000 | ||
Foreign Exchange Translation | -1,346,000 | ||
Balance at the end of the period | 774,822,000 | 738,062,000 | |
Goodwill accumulated impairment losses | 916,900,000 | 916,900,000 | 916,900,000 |
The Match Group | |||
Balance of goodwill by reporting unit, including the changes in the carrying value of goodwill | |||
Balance at the beginning of the period | 775,403,000 | 718,736,000 | |
Additions | 72,833,000 | 62,464,000 | |
(Deductions) | -1,931,000 | -10,675,000 | |
Foreign Exchange Translation | -47,508,000 | 4,878,000 | |
Balance at the end of the period | 798,797,000 | 775,403,000 | |
Media - Connected Ventures | |||
Balance of goodwill by reporting unit, including the changes in the carrying value of goodwill | |||
Balance at the beginning of the period | 8,267,000 | 8,267,000 | |
Additions | 0 | 0 | |
(Deductions) | 0 | 0 | |
Goodwill Transfers During Period | 0 | ||
Foreign Exchange Translation | 0 | 0 | |
Balance at the end of the period | 8,267,000 | 8,267,000 | |
Goodwill accumulated impairment losses | 11,600,000 | 11,600,000 | 11,600,000 |
Total eCommerce | |||
Balance of goodwill by reporting unit, including the changes in the carrying value of goodwill | |||
Balance at the beginning of the period | 153,591,000 | 165,501,000 | |
Additions | 20,646,000 | 5,317,000 | |
(Deductions) | -3,179,000 | ||
Goodwill Transfers During Period | 14,572,000 | ||
Foreign Exchange Translation | -1,197,000 | 524,000 | |
Balance at the end of the period | 173,040,000 | 153,591,000 | |
HomeAdvisor | |||
Balance of goodwill by reporting unit, including the changes in the carrying value of goodwill | |||
Balance at the beginning of the period | 131,872,000 | 111,658,000 | |
Additions | 20,646,000 | 5,317,000 | |
Goodwill Transfers During Period | 14,373,000 | ||
Foreign Exchange Translation | -1,197,000 | 524,000 | |
Balance at the end of the period | 151,321,000 | 131,872,000 | |
CityGrid | |||
Balance of goodwill by reporting unit, including the changes in the carrying value of goodwill | |||
Balance at the beginning of the period | 32,124,000 | ||
(Deductions) | -3,179,000 | ||
Goodwill Transfers During Period | -28,945,000 | ||
ShoeBuy | |||
Balance of goodwill by reporting unit, including the changes in the carrying value of goodwill | |||
Balance at the beginning of the period | 21,719,000 | 21,719,000 | |
Additions | 0 | 0 | |
(Deductions) | 0 | 0 | |
Goodwill Transfers During Period | 0 | ||
Foreign Exchange Translation | 0 | 0 | |
Balance at the end of the period | 21,719,000 | 21,719,000 | |
Goodwill accumulated impairment losses | $28,000,000 | $28,000,000 | $28,000,000 |
GOODWILL_AND_INTANGIBLE_ASSETS4
GOODWILL AND INTANGIBLE ASSETS (Details3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Intangible assets with definite lives | ||
Gross Carrying Amount | $185,639 | $152,317 |
Accumulated Amortization | -98,937 | -83,310 |
Total | 86,702 | 69,007 |
Weighted-Average Useful Life (Years) | 3 years 4 months 24 days | 3 years 2 months 12 days |
Future amortization expense of intangible assets with definite-lives | ||
2015 | 44,262 | |
2016 | 24,099 | |
2017 | 13,441 | |
2018 | 4,547 | |
2019 | 353 | |
Total | 86,702 | 69,007 |
Content | ||
Intangible assets with definite lives | ||
Gross Carrying Amount | 62,602 | 47,800 |
Accumulated Amortization | -36,988 | -22,373 |
Total | 25,614 | 25,427 |
Weighted-Average Useful Life (Years) | 4 years 1 month 6 days | 4 years |
Future amortization expense of intangible assets with definite-lives | ||
Total | 25,614 | 25,427 |
Technology | ||
Intangible assets with definite lives | ||
Gross Carrying Amount | 54,981 | 41,694 |
Accumulated Amortization | -20,988 | -25,324 |
Total | 33,993 | 16,370 |
Weighted-Average Useful Life (Years) | 3 years 2 months 12 days | 2 years 10 months 24 days |
Future amortization expense of intangible assets with definite-lives | ||
Total | 33,993 | 16,370 |
Trade names | ||
Intangible assets with definite lives | ||
Gross Carrying Amount | 30,110 | 29,283 |
Accumulated Amortization | -21,681 | -16,427 |
Total | 8,429 | 12,856 |
Weighted-Average Useful Life (Years) | 2 years 7 months 6 days | 3 years |
Future amortization expense of intangible assets with definite-lives | ||
Total | 8,429 | 12,856 |
Customer lists | ||
Intangible assets with definite lives | ||
Gross Carrying Amount | 24,566 | 22,584 |
Accumulated Amortization | -14,050 | -13,116 |
Total | 10,516 | 9,468 |
Weighted-Average Useful Life (Years) | 2 years 7 months 6 days | 2 years 6 months |
Future amortization expense of intangible assets with definite-lives | ||
Total | 10,516 | 9,468 |
Advertiser and supplier relationships | ||
Intangible assets with definite lives | ||
Gross Carrying Amount | 13,380 | 10,956 |
Accumulated Amortization | -5,230 | -6,070 |
Total | 8,150 | 4,886 |
Weighted-Average Useful Life (Years) | 4 years | 2 years 10 months 24 days |
Future amortization expense of intangible assets with definite-lives | ||
Total | $8,150 | $4,886 |
MARKETABLE_SECURITIES_Details
MARKETABLE SECURITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
security | ||
Available-for-sale marketable securities | ||
Amortized Cost | $159,516,000 | $1,220,000 |
Gross unrealized gain | 1,387,000 | 4,784,000 |
Gross Unrealized Losses | -255,000 | 0 |
Marketable securities | 160,648,000 | 6,004,000 |
Number of securities in loss position | 58 | |
Corporate debt securities | ||
Available-for-sale marketable securities | ||
Amortized Cost | 159,418,000 | 1,004,000 |
Gross unrealized gain | 34,000 | 4,000 |
Gross Unrealized Losses | -255,000 | 0 |
Marketable securities | 159,197,000 | 1,008,000 |
Fair value of securities in loss position | 123,200,000 | |
Total debt securities | ||
Available-for-sale marketable securities | ||
Amortized Cost | 159,418,000 | 1,004,000 |
Gross unrealized gain | 34,000 | 4,000 |
Gross Unrealized Losses | -255,000 | 0 |
Marketable securities | 159,197,000 | 1,008,000 |
Marketable equity security | ||
Available-for-sale marketable securities | ||
Amortized Cost | 98,000 | 216,000 |
Gross unrealized gain | 1,353,000 | 4,780,000 |
Gross Unrealized Losses | 0 | 0 |
Marketable securities | $1,451,000 | $4,996,000 |
MARKETABLE_SECURITIES_Details_
MARKETABLE SECURITIES (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Available-for-sale marketable securities | |||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | $255 | $0 | |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||
Due in one year or less, Amortized Cost Basis | 54,502 | ||
Due in one year or less | 54,455 | ||
Due after one year through five years, Amortized Cost Basis | 104,916 | ||
Due after one year through five years | 104,742 | ||
Total | 159,418 | ||
Total | 159,197 | ||
Proceeds from maturities and sales of available-for-sale marketable securities and related gross realized gains and losses | |||
Proceeds from maturities and sales of available-for-sale marketable securities | 25,223 | 82,160 | 205,944 |
Gross realized gains | 3,362 | 35,692 | 4,075 |
Gross realized losses | $0 | $0 | ($5) |
LONGTERM_INVESTMENTS_Details
LONG-TERM INVESTMENTS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Components of long-term investments | ||
Long-term investments | $114,983 | $179,990 |
Cost method investments | ||
Components of long-term investments | ||
Long-term investments | 90,910 | 137,286 |
Equity method investments | ||
Components of long-term investments | ||
Long-term investments | 10,593 | 22,073 |
Marketable equity security | ||
Components of long-term investments | ||
Long-term investments | 7,410 | 11,711 |
Auction rate security | ||
Components of long-term investments | ||
Long-term investments | $6,070 | $8,920 |
LONGTERM_INVESTMENTS_Details2
LONG-TERM INVESTMENTS (Details2) (USD $) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Long-term investments | ||||
Cost method investment, Other-than-temporary impairment | $63,600,000 | $66,600,000 | $5,000,000 | |
Cost Method Investment Ownership Percentage | 20.00% | |||
Equity Method Investment, Other-than-temporary impairment | 4,200,000 | 18,600,000 | ||
Long-term marketable equity securities | ||||
Gross unrealized loss | 1,387,000 | 4,784,000 | ||
Other than temporary impairment losses | 8,700,000 | |||
Other than temporary impairment recognized in earnings | 66,601,000 | 5,268,000 | 8,685,000 | |
Period in unrealized loss position | 1 year | |||
Percentage fair value less than cost | 50.00% | |||
Marketable equity security | ||||
Long-term marketable equity securities | ||||
Cost basis | 8,700,000 | 8,800,000 | ||
Gross unrealized loss | $1,200,000 | $3,000,000 |
FAIR_VALUE_MEASUREMENTS_AND_FI2
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ||
Marketable securities: | $160,648 | $6,004 |
Fair value on a recurring basis | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Total Assets | 183,581 | 715,014 |
Fair value on a recurring basis | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Money Market Funds [Member] | ||
Assets: | ||
Cash equivalents: | 174,720 | 698,307 |
Fair value on a recurring basis | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Equity security | ||
Assets: | ||
Marketable securities: | 1,451 | 4,996 |
Long-term investments: | 7,410 | 11,711 |
Fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total Assets | 590,912 | 45,333 |
Fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | Commercial Paper [Member] | ||
Assets: | ||
Cash equivalents: | 388,801 | 12,000 |
Fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | Time deposits | ||
Assets: | ||
Cash equivalents: | 42,914 | 32,325 |
Fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | Corporate debt securities | ||
Assets: | ||
Marketable securities: | 159,197 | 1,008 |
Fair value on a recurring basis | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Total Assets | 6,070 | 8,920 |
Business Combination, Contingent Consideration, Liability | 30,140 | 45,828 |
Fair value on a recurring basis | Significant Unobservable Inputs (Level 3) | Auction rate securities | ||
Assets: | ||
Long-term investments: | 6,070 | 8,920 |
Fair Value | Fair value on a recurring basis | ||
Assets: | ||
Total Assets | 780,563 | 769,267 |
Business Combination, Contingent Consideration, Liability | 30,140 | 45,828 |
Fair Value | Fair value on a recurring basis | Money Market Funds [Member] | ||
Assets: | ||
Cash equivalents: | 174,720 | 698,307 |
Fair Value | Fair value on a recurring basis | Commercial Paper [Member] | ||
Assets: | ||
Cash equivalents: | 388,801 | 12,000 |
Fair Value | Fair value on a recurring basis | Time deposits | ||
Assets: | ||
Cash equivalents: | 42,914 | 32,325 |
Fair Value | Fair value on a recurring basis | Corporate debt securities | ||
Assets: | ||
Marketable securities: | 159,197 | 1,008 |
Fair Value | Fair value on a recurring basis | Equity security | ||
Assets: | ||
Marketable securities: | 1,451 | 4,996 |
Long-term investments: | 7,410 | 11,711 |
Fair Value | Fair value on a recurring basis | Auction rate securities | ||
Assets: | ||
Long-term investments: | $6,070 | $8,920 |
FAIR_VALUE_MEASUREMENTS_AND_FI3
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Details 2) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | USD ($) | USD ($) | Twoo [Member] | Twoo [Member] | Auction rate securities | Auction rate securities | Contingent Consideration Arrangement | Contingent Consideration Arrangement | Contingent Consideration Without Limit | Contingent Consideration Liability - Twoo | |
USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||
Changes in assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | |||||||||||
Balance at the beginning of the period, assets | $8,920,000 | $8,100,000 | |||||||||
Included in other comprehensive (loss) income, assets | -2,850,000 | 820,000 | |||||||||
Settlements, assets | 0 | ||||||||||
Balance at the end of the period, assets | 6,070,000 | 8,920,000 | |||||||||
Changes in liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | |||||||||||
Balance at the beginning of the period, liabilities | -45,828,000 | -1,909,000 | |||||||||
Included in Earnings, liabilities | 13,367,000 | -343,000 | |||||||||
Included in Other Comprehensive (Loss) Income, liabilities | 3,025,000 | -2,445,000 | |||||||||
Fair Value Of Contingent Consideration At Date Of Acquisition | 8,800,000 | 41,400,000 | 8,813,000 | 41,387,000 | |||||||
Settlements, liabilities | 8,109,000 | 256,000 | |||||||||
Balance at the end of the period, liabilities | -30,140,000 | -45,828,000 | |||||||||
Auction rate securities | |||||||||||
Cost Basis | 159,418,000 | 10,000,000 | 10,000,000 | ||||||||
Gross unrealized loss | 1,387,000 | 4,784,000 | 3,900,000 | 1,100,000 | |||||||
Contingent consideration arrangment | |||||||||||
Number of contingent consideration arrangements related to business acquisitions | 5 | ||||||||||
Number of contingent consideration arrangements with payment limit | 4 | ||||||||||
Business Acquisition Contingent Consideration Maximum Amount At Balance Sheet Date | 166,900,000 | ||||||||||
Business Acquisition Contingent Consideration Fair Value at Balance Sheet Date With A Maximum Limit | 29,500,000 | ||||||||||
Fair value of one contingent consideration arrangements without a maximum limit | 700,000 | ||||||||||
Acquisition-related contingent consideration payments | 8,109,000 | 256,000 | 10,781,000 | 7,400,000 | |||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 94,900,000 | 77,900,000 | |||||||||
Fair Value, Discount Rate | 15.00% | ||||||||||
Contingent Consideration, Current | 10,700,000 | ||||||||||
Contingent Consideration, Noncurrent | $19,600,000 |
FINANCIAL_MEASUREMENTS_AND_FIN
FINANCIAL MEASUREMENTS AND FINANCIAL INSTRUMENTS (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Carrying Value | ($1,080,000) | ($1,080,000) |
Carrying Value | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Carrying Value | -1,080,000 | -1,080,000 |
Fair Value | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Fair Value | ($1,099,813) | ($1,058,396) |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 21, 2012 | |
Long-term debt | ||||
Total long-term debt | $1,080,000,000 | $1,080,000,000 | ||
Aggregate contractual maturities of long-term debt | ||||
2018 | 500,000,000 | |||
2022 | 500,000,000 | |||
2035 | 80,000,000 | |||
Revolving Credit Facility | ||||
Line of Credit Facility [Abstract] | ||||
Maximum borrowing capacity | 300,000,000 | |||
Commitment fee percentage | 0.30% | 0.30% | ||
Debt Instrument, Covenant Compliance, Maximum Leverage Ratio | 3 | |||
Line of Credit Facility, Amount Outstanding | 0 | 0 | ||
Senior Notes | Four Point Eight Seven Five Percent Senior Notes Due November 2018 | ||||
Long-term debt | ||||
Total long-term debt | 500,000,000 | 500,000,000 | ||
Stated interest rate | 4.88% | 4.88% | ||
Line of Credit Facility [Abstract] | ||||
Debt Instrument, Covenant Compliance, Maximum Leverage Ratio | 3 | |||
Senior Notes | Four Point Eight Seven Five Percent Senior Notes Due November 2018 | Redemption, Period One | ||||
Long-term debt | ||||
Redemption percentage | 103.25% | |||
Senior Notes | Four Point Eight Seven Five Percent Senior Notes Due November 2018 | Redemption, Period Two | ||||
Long-term debt | ||||
Redemption percentage | 101.63% | |||
Senior Notes | Four Point Eight Seven Five Percent Senior Notes Due November 2018 | Redemption, Period Three | ||||
Long-term debt | ||||
Redemption percentage | 100.00% | |||
Senior Notes | Four Point Seven Five Percent Senior Notes Due December 2022 | ||||
Long-term debt | ||||
Total long-term debt | 500,000,000 | 500,000,000 | ||
Stated interest rate | 4.75% | 4.75% | ||
Line of Credit Facility [Abstract] | ||||
Debt Instrument, Covenant Compliance, Maximum Leverage Ratio | 3 | |||
Senior Notes | Four Point Seven Five Percent Senior Notes Due December 2022 | Redemption, Period One | ||||
Long-term debt | ||||
Redemption percentage | 102.38% | |||
Senior Notes | Four Point Seven Five Percent Senior Notes Due December 2022 | Redemption, Period Two | ||||
Long-term debt | ||||
Redemption percentage | 101.58% | |||
Senior Notes | Four Point Seven Five Percent Senior Notes Due December 2022 | Redemption, Period Three | ||||
Long-term debt | ||||
Redemption percentage | 100.79% | |||
Senior Notes | Four Point Seven Five Percent Senior Notes Due December 2022 | Redemption, Period Four | ||||
Long-term debt | ||||
Redemption percentage | 100.00% | |||
Bonds | 5% New York City Industrial Development Agency Liberty Bonds due September 1, 2035 | ||||
Long-term debt | ||||
Total long-term debt | $80,000,000 | $80,000,000 | ||
Stated interest rate | 5.00% | 5.00% |
SHAREHOLDERS_EQUITY_Details
SHAREHOLDERS' EQUITY (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
vote | ||
Shareholders' equity | ||
Percentage of the total number of directors the holders of common stock are entitled to elect | 25.00% | |
Percentage of the outstanding total voting power of the Company | 42.50% | |
Common stock | ||
Shareholders' equity | ||
Votes per each share of stock | 1 | |
Outstanding shares | 78,356,057 | 76,404,552 |
Common stock reserved | 22,200,000 | |
Class B convertible common stock | ||
Shareholders' equity | ||
Votes per each share of stock | 10 | |
Outstanding shares | 5,789,499 | 5,789,499 |
Class B Convertible Common Stock Shares Outstanding Percent | 100.00% | |
Board of Directors Chairman [Member] | Class B convertible common stock | ||
Shareholders' equity | ||
Outstanding shares | 5,800,000 |
SHAREHOLDERS_EQUITY_Details_2
SHAREHOLDERS' EQUITY (Details 2) (USD $) | 12 Months Ended | ||
Share data in Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
Changes in outstanding warrants | |||
Class of Warrant or Right, Outstanding | $0 | $0 | $0 |
Warrants and Rights Issued | 0 | 0 | 0 |
Warrants and Rights Exercised | 14.3 | ||
Proceeds from Warrant Exercises | 284,100,000 | ||
Common stock | $11,700,000 |
SHAREHOLDERS_EQUITY_Details_3
SHAREHOLDERS' EQUITY (Details 3) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2013 |
Shareholders' equity | ||||
Common stock repurchased (in shares) | 0 | |||
Aggregate consideration for common stock repurchased | $229,101 | $716,072 | ||
Common stock | ||||
Shareholders' equity | ||||
Additional shares authorized for repurchase | 10,000,000 | |||
Shares remaining in share repurchase authorization | 8,600,000 | |||
IAC | ||||
Shareholders' equity | ||||
Common stock repurchased (in shares) | 4,500,000 | 15,500,000 | ||
Aggregate consideration for common stock repurchased | $229,100 | $716,100 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at January 1 | ($13,046,000) | ||
Net current period other comprehensive income | -75,465,000 | 22,795,000 | -19,115,000 |
Balance at December 31 | -87,700,000 | -13,046,000 | |
Tax provision for Other comprehensive income before reclassifications | 700,000 | 3,900,000 | |
Tax provision for Amounts reclassified from accumulated other comprehensive loss | 1,200,000 | 6,900,000 | |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at January 1 | -20,352,000 | -25,073,000 | |
Other comprehensive income before reclassifications, net of tax provision of $3.9 million related to unrealized gains on available-for-sale securities | -66,496,000 | 4,721,000 | |
Amounts reclassified related to unrealized gains on available-for-sale securities, net of tax provision of $6.9 million | 0 | 0 | |
Net current period other comprehensive income | -66,496,000 | 4,721,000 | |
Balance at December 31 | -86,848,000 | -20,352,000 | |
Unrealized (Losses) Gains On Available-For-Sale Securities | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at January 1 | 7,306,000 | -7,096,000 | |
Other comprehensive income before reclassifications, net of tax provision of $3.9 million related to unrealized gains on available-for-sale securities | -6,233,000 | 43,235,000 | |
Amounts reclassified related to unrealized gains on available-for-sale securities, net of tax provision of $6.9 million | -1,925,000 | -28,833,000 | |
Net current period other comprehensive income | -8,158,000 | 14,402,000 | |
Balance at December 31 | -852,000 | 7,306,000 | |
Accumulated Other Comprehensive (Loss) Income | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at January 1 | -13,046,000 | -32,169,000 | |
Other comprehensive income before reclassifications, net of tax provision of $3.9 million related to unrealized gains on available-for-sale securities | -72,729,000 | 47,956,000 | |
Amounts reclassified related to unrealized gains on available-for-sale securities, net of tax provision of $6.9 million | -1,925,000 | -28,833,000 | |
Net current period other comprehensive income | -74,654,000 | 19,123,000 | |
Balance at December 31 | -87,700,000 | -13,046,000 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Income | $2,100,000 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Weighted Average Number of Shares Issued, Basic | 83,292 | 83,480 | 86,247 | ||||||||
Numerator: Basic | |||||||||||
Earnings from continuing operations | $67,986 | $150,261 | ($17,995) | $34,305 | $78,829 | $91,721 | $58,540 | $52,709 | $234,557 | $281,799 | $169,847 |
Net loss (earnings) attributable to noncontrolling interests | 5,643 | 2,059 | -1,530 | ||||||||
Earnings (loss) from continuing operations attributable to IAC shareholders | 240,200 | 283,858 | 168,317 | ||||||||
Less: earnings (loss) from discontinued operations, net of tax | 625 | 175,730 | -868 | -814 | 24 | 3,914 | -1,068 | -944 | 174,673 | 1,926 | -9,051 |
Net earnings attributable to IAC shareholders | 70,172 | 326,812 | -17,996 | 35,885 | 76,917 | 96,940 | 58,290 | 53,637 | 414,873 | 285,784 | 159,266 |
Numerator: Diluted | |||||||||||
Earnings (loss) from continuing operations | 67,986 | 150,261 | -17,995 | 34,305 | 78,829 | 91,721 | 58,540 | 52,709 | 234,557 | 281,799 | 169,847 |
Net loss (earnings) attributable to noncontrolling interests | 5,643 | 2,059 | -1,530 | ||||||||
Earnings (loss) from continuing operations attributable to IAC shareholders | 240,200 | 283,858 | 168,317 | ||||||||
Less: earnings (loss) from discontinued operations, net of tax | 625 | 175,730 | -868 | -814 | 24 | 3,914 | -1,068 | -944 | 174,673 | 1,926 | -9,051 |
Net earnings (loss) attributable to IAC shareholders | $414,873 | $285,784 | $159,266 | ||||||||
Denominator: Basic | |||||||||||
Weighted average basic shares outstanding | 83,292 | 83,480 | 86,247 | ||||||||
Denominator: Diluted | |||||||||||
Weighted average basic shares outstanding | 83,292 | 83,480 | 86,247 | ||||||||
Dilutive securities including stock options, warrants and RSUs (in shares) | 5,266 | 3,262 | 6,842 | ||||||||
Denominator for earnings per share-weighted average shares (in shares) | 88,558 | 86,742 | 93,089 | ||||||||
Earnings per share attributable to IAC shareholders: Basic | |||||||||||
Earnings per share from continuing operations (in dollars per share) | $0.83 | $1.81 | ($0.21) | $0.44 | $0.93 | $1.12 | $0.71 | $0.65 | $2.88 | $3.40 | $1.95 |
Discontinued operations, net of tax (in dollars per share) | $2.10 | $0.02 | ($0.10) | ||||||||
Earnings per share (in dollars per share) | $0.84 | $3.91 | ($0.22) | $0.44 | $0.93 | $1.17 | $0.70 | $0.64 | $4.98 | $3.42 | $1.85 |
Earnings (loss) per share attributable to IAC shareholders: Diluted | |||||||||||
Earnings per share from continuing operations (in dollars per share) | $0.78 | $1.70 | ($0.21) | $0.42 | $0.88 | $1.08 | $0.69 | $0.62 | $2.71 | $3.27 | $1.81 |
Discontinued operations, net of tax (in dollars per share) | $1.97 | $0.02 | ($0.10) | ||||||||
Earnings per share (in dollars per share) | $0.78 | $3.68 | ($0.22) | $0.41 | $0.88 | $1.13 | $0.67 | $0.61 | $4.68 | $3.29 | $1.71 |
EARNINGS_PER_SHARE_Details_2
EARNINGS PER SHARE (Details 2) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Dilutive Securities: | |||
Dilutive securities (less than 0.1 million for performance shares) | 5,266,000 | 3,262,000 | 6,842,000 |
RSUs | |||
Anti-dilutive weighted average common shares | |||
Potentially dilutive securities excluded from calculation of diluted earnings per share (in shares) | 300,000 | 400,000 | 800,000 |
PSUs | |||
Anti-dilutive weighted average common shares | |||
Potentially dilutive securities excluded from calculation of diluted earnings per share (in shares) | 100,000 | 100,000 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock-based compensation | ||||
Number of active plans | 3 | |||
Shares available for grant | 9,100,000 | |||
Stated term (in years) | 10 years | |||
Unrecognized compensation cost, net of estimated forfeitures | $113,200,000 | |||
Weighted average period over which cost is expected to be recognized (in years) | 2 years 4 months 24 days | |||
Tax benefit recognized related to stock-based compensation | 22,200,000 | 19,300,000 | 31,300,000 | |
Additional disclosures | ||||
Intrinsic value of stock options exercised | 63,300,000 | 65,600,000 | 84,800,000 | |
Non-cash compensation expense | 59,634,000 | 53,005,000 | 85,625,000 | |
Stock Options | ||||
Stock-based compensation | ||||
Vesting period | 4 years | |||
Shares | ||||
Outstanding at January 1, 2014 | 8,074,000 | 8,074,000 | ||
Granted | 747,000 | 700,000 | 3,600,000 | |
Exercised | -1,790,000 | |||
Forfeited | -496,000 | |||
Expired | -15,000 | |||
Outstanding at December 31, 2014 | 6,520,000 | 8,074,000 | ||
Options exercisable | 3,647,000 | |||
Weighted Average Exercise Price | ||||
Outstanding at January 1, 2014 | $36.98 | $36.98 | ||
Granted | $67.95 | |||
Exercised | $31.88 | |||
Forfeited | $46.85 | |||
Expired | $31.13 | |||
Outstanding at December 31, 2014 | $41.19 | $36.98 | ||
Options exercisable | $33.50 | |||
Weighted Average Remaining Contractual Term | ||||
Outstanding at December 31, 2014 | 6 years | |||
Options exercisable | 4 years 8 months 12 days | |||
Aggregate Intrinsic Value | ||||
Outstanding at December 31, 2014 | 133,077,000 | |||
Options exercisable | 99,523,000 | |||
Weighted average assumptions used in Black-Scholes option pricing model | ||||
Expected volatility | 31.00% | 29.00% | 31.00% | |
Risk-free interest rate | 1.50% | 1.00% | 0.60% | |
Expected term | 4 years 9 months 18 days | 6 years 2 months 12 days | 4 years 4 months 24 days | |
Dividend yield | 1.50% | 2.00% | 1.20% | |
Additional disclosures | ||||
Weighted average fair value of stock options granted with exercise price equal to market price of common stock (in dollars per share) | $16.67 | $10.67 | $10.69 | |
Weighted exercise price value of stock options granted with exercise price greater than market price of common stock (in dollars per share) | $60 | |||
Weighted average fair value of stock options granted with exercise price greater than market price of common stock (in dollars per share) | $7.61 | |||
Cash received from stock option exercises | 39,100,000 | 40,700,000 | 58,200,000 | |
Tax benefit realized from stock option exercises | 25,500,000 | 17,200,000 | 28,200,000 | |
Non-cash compensation expense | 7,400,000 | |||
RSUs | Minimum | ||||
Stock-based compensation | ||||
Vesting period | 3 years | |||
RSUs | Maximum | ||||
Stock-based compensation | ||||
Vesting period | 4 years | |||
PSUs | Minimum | ||||
Stock-based compensation | ||||
Vesting period | 2 years | |||
PSUs | Maximum | ||||
Stock-based compensation | ||||
Vesting period | 2 years | |||
Former Chief Executive Officer [Member] | ||||
Shares | ||||
Exercised | -500,000 | |||
Additional disclosures | ||||
Stock Option Exercises Settled in Cash | $9,200,000 |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 2) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 |
Information about stock options outstanding and exercisable | ||
Common stock | $11,700 | |
Options Outstanding (in shares) | 6,520 | |
Weighted-Average Remaining Contractual Life (in years) | 6 years | |
Weighted-Average Exercise Price (in dollars per share) | $41.19 | |
Options Exercisable (in shares) | 3,647 | |
Weighted Average Remaining Contractual Life (in years) | 4 years 8 months 12 days | |
Weighted-Average Exercise Price (in dollars per share) | $33.50 | |
$10.01 to $20.00 | ||
Information about stock options outstanding and exercisable | ||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | $10.01 | |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $20 | |
Options Outstanding (in shares) | 431 | |
Weighted-Average Remaining Contractual Life (in years) | 4 years 6 months | |
Weighted-Average Exercise Price (in dollars per share) | $17.91 | |
Options Exercisable (in shares) | 431 | |
Weighted Average Remaining Contractual Life (in years) | 4 years 6 months | |
Weighted-Average Exercise Price (in dollars per share) | $17.91 | |
$20.01 to $30.00 | ||
Information about stock options outstanding and exercisable | ||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | $20.01 | |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $30 | |
Options Outstanding (in shares) | 905 | |
Weighted-Average Remaining Contractual Life (in years) | 4 years 3 months 18 days | |
Weighted-Average Exercise Price (in dollars per share) | $22.14 | |
Options Exercisable (in shares) | 905 | |
Weighted Average Remaining Contractual Life (in years) | 4 years 3 months 18 days | |
Weighted-Average Exercise Price (in dollars per share) | $22.14 | |
$30.01 to $40.00 | ||
Information about stock options outstanding and exercisable | ||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | $30.01 | |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $40 | |
Options Outstanding (in shares) | 1,148 | |
Weighted-Average Remaining Contractual Life (in years) | 6 years 3 months 18 days | |
Weighted-Average Exercise Price (in dollars per share) | $31.84 | |
Options Exercisable (in shares) | 749 | |
Weighted Average Remaining Contractual Life (in years) | 6 years 2 months 12 days | |
Weighted-Average Exercise Price (in dollars per share) | $31.60 | |
$40.01 to $50.00 | ||
Information about stock options outstanding and exercisable | ||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | $40.01 | |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $50 | |
Options Outstanding (in shares) | 2,913 | |
Weighted-Average Remaining Contractual Life (in years) | 5 years 8 months 12 days | |
Weighted-Average Exercise Price (in dollars per share) | $45.16 | |
Options Exercisable (in shares) | 1,426 | |
Weighted Average Remaining Contractual Life (in years) | 4 years | |
Weighted-Average Exercise Price (in dollars per share) | $44.05 | |
$50.01 to $60.00 | ||
Information about stock options outstanding and exercisable | ||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | $50.01 | |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $60 | |
Options Outstanding (in shares) | 381 | |
Weighted-Average Remaining Contractual Life (in years) | 7 years 3 months 18 days | |
Weighted-Average Exercise Price (in dollars per share) | $58.51 | |
Options Exercisable (in shares) | 136 | |
Weighted Average Remaining Contractual Life (in years) | 7 years 3 months 18 days | |
Weighted-Average Exercise Price (in dollars per share) | $58.44 | |
$60.01 to $70.00 | ||
Information about stock options outstanding and exercisable | ||
Options Outstanding (in shares) | 492 | |
Weighted-Average Remaining Contractual Life (in years) | 9 years 3 months 18 days | |
Weighted-Average Exercise Price (in dollars per share) | $66.14 | |
Options Exercisable (in shares) | 0 | |
Weighted Average Remaining Contractual Life (in years) | 0 months | |
Weighted-Average Exercise Price (in dollars per share) | $0 | |
$70.01 to $80.00 | ||
Information about stock options outstanding and exercisable | ||
Options Outstanding (in shares) | 250 | |
Weighted-Average Remaining Contractual Life (in years) | 9 years 3 months 18 days | |
Weighted-Average Exercise Price (in dollars per share) | $71.55 | |
Options Exercisable (in shares) | 0 | |
Weighted Average Remaining Contractual Life (in years) | 0 months | |
Weighted-Average Exercise Price (in dollars per share) | $0 |
STOCKBASED_COMPENSATION_Detail2
STOCK-BASED COMPENSATION (Details 3) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Additional disclosures | |||
Number of Company's shares required to settle interests held by subsidiaries' management | 5,800,000 | 1,800,000 | |
RSUs | |||
Number of shares | |||
Unvested at January 1, 2014 | 692,000 | ||
Granted | 257,000 | ||
Vested | -199,000 | ||
Unvested at December 31, 2014 | 750,000 | ||
Weighted Average Grant Date Fair Value | |||
Unvested at January 1, 2014 | $43.50 | ||
Granted | $67.69 | ||
Vested | $36.70 | ||
Unvested at December 31, 2014 | $53.61 | ||
RSUs | Minimum | |||
Additional disclosures | |||
Vesting period | 3 years | ||
RSUs | Maximum | |||
Additional disclosures | |||
Vesting period | 4 years | ||
PSUs | |||
Number of shares | |||
Unvested at January 1, 2014 | 322,000 | ||
Granted | 35,000 | ||
Vested | -102,000 | ||
Forfeited | -220,000 | ||
Unvested at December 31, 2014 | 35,000 | ||
Weighted Average Grant Date Fair Value | |||
Unvested at January 1, 2014 | $31.27 | ||
Granted | $71.39 | ||
Vested | $31.15 | ||
Forfeited | $31.32 | ||
Unvested at December 31, 2014 | $71.39 | ||
PSUs | Minimum | |||
Additional disclosures | |||
Vesting period | 2 years | ||
PSUs | Maximum | |||
Additional disclosures | |||
Vesting period | 2 years | ||
Restricted stock, RSUs and PSUs | |||
Weighted Average Grant Date Fair Value | |||
Granted | $68.13 | $42.32 | $46.24 |
Additional disclosures | |||
Fair value of shares vested during period | $20.40 | $14.50 | $139 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment reporting information | |||||||||||
Revenue | $830,754 | $782,231 | $756,315 | $740,247 | $724,455 | $756,872 | $799,411 | $742,249 | $3,109,547 | $3,022,987 | $2,800,933 |
Adjusted EBITDA | 544,076 | 598,303 | 497,445 | ||||||||
Segment Assets | 2,028,016 | 2,114,025 | 2,028,016 | 2,114,025 | |||||||
Capital expenditures | 57,233 | 80,311 | 51,201 | ||||||||
Reconciliation of Adjusted EBITDA to operating income (loss) for the entity's reportable segments [Abstract] | |||||||||||
Non-Cash Compensation Expense | -59,634 | -53,005 | -85,625 | ||||||||
Depreciation | -61,156 | -58,909 | -52,481 | ||||||||
Amortization of Intangibles | -57,926 | -59,843 | -35,771 | ||||||||
Acquisition-related contingent consideration fair value adjustments | 13,367 | -343 | 0 | ||||||||
Operating income | 110,372 | 100,953 | 95,690 | 71,712 | 112,952 | 122,004 | 106,696 | 84,551 | 378,727 | 426,203 | 323,568 |
Reconciliation of segment assets to total assets | |||||||||||
Segment Assets | 2,028,016 | 2,114,025 | 2,028,016 | 2,114,025 | |||||||
Goodwill | 1,754,926 | 1,675,323 | 1,754,926 | 1,675,323 | 1,616,154 | ||||||
Indefinite-Lived Intangible Assets | 405,234 | 376,329 | 405,234 | 376,329 | |||||||
Definite-Lived Intangible Assets | 86,702 | 69,007 | 86,702 | 69,007 | |||||||
TOTAL ASSETS | 4,274,878 | 4,234,684 | 4,274,878 | 4,234,684 | |||||||
Search & Applications | |||||||||||
Segment reporting information | |||||||||||
Revenue | 1,596,251 | 1,604,950 | 1,465,795 | ||||||||
Adjusted EBITDA | 362,029 | 385,851 | 328,141 | ||||||||
Segment Assets | 341,886 | 409,116 | 341,886 | 409,116 | |||||||
Capital expenditures | 17,701 | 22,215 | 15,320 | ||||||||
Reconciliation of Adjusted EBITDA to operating income (loss) for the entity's reportable segments [Abstract] | |||||||||||
Non-Cash Compensation Expense | -3 | -34 | |||||||||
Depreciation | -16,461 | -18,177 | -14,995 | ||||||||
Amortization of Intangibles | -33,902 | -27,554 | -7,468 | ||||||||
Acquisition-related contingent consideration fair value adjustments | -326 | ||||||||||
Operating income | 311,340 | 340,117 | 305,644 | ||||||||
Reconciliation of segment assets to total assets | |||||||||||
Segment Assets | 341,886 | 409,116 | 341,886 | 409,116 | |||||||
Goodwill | 774,822 | 738,062 | 774,822 | 738,062 | 723,650 | ||||||
Indefinite-Lived Intangible Assets | 211,095 | 195,805 | 211,095 | 195,805 | |||||||
Definite-Lived Intangible Assets | 44,355 | 40,550 | 44,355 | 40,550 | |||||||
TOTAL ASSETS | 1,372,158 | 1,383,533 | 1,372,158 | 1,383,533 | |||||||
The Match Group | |||||||||||
Segment reporting information | |||||||||||
Revenue | 897,245 | 805,390 | 714,222 | ||||||||
Adjusted EBITDA | 264,736 | 266,949 | 236,778 | ||||||||
Segment Assets | 297,166 | 341,377 | 297,166 | 341,377 | |||||||
Capital expenditures | 22,105 | 19,997 | 19,853 | ||||||||
Reconciliation of Adjusted EBITDA to operating income (loss) for the entity's reportable segments [Abstract] | |||||||||||
Non-Cash Compensation Expense | 287 | -1,122 | -2,818 | ||||||||
Depreciation | -25,628 | -20,203 | -16,339 | ||||||||
Amortization of Intangibles | -11,395 | -17,126 | -17,455 | ||||||||
Acquisition-related contingent consideration fair value adjustments | 12,912 | -343 | |||||||||
Operating income | 240,912 | 228,155 | 200,166 | ||||||||
Reconciliation of segment assets to total assets | |||||||||||
Segment Assets | 297,166 | 341,377 | 297,166 | 341,377 | |||||||
Goodwill | 798,797 | 775,403 | 798,797 | 775,403 | 718,736 | ||||||
Indefinite-Lived Intangible Assets | 180,558 | 167,544 | 180,558 | 167,544 | |||||||
Definite-Lived Intangible Assets | 27,055 | 11,818 | 27,055 | 11,818 | |||||||
TOTAL ASSETS | 1,303,576 | 1,296,142 | 1,303,576 | 1,296,142 | |||||||
Media | |||||||||||
Segment reporting information | |||||||||||
Revenue | 181,780 | 191,434 | 164,051 | ||||||||
Adjusted EBITDA | -36,720 | -16,976 | -38,555 | ||||||||
Segment Assets | 87,448 | 92,500 | 87,448 | 92,500 | |||||||
Capital expenditures | 1,566 | 1,197 | 1,178 | ||||||||
Reconciliation of Adjusted EBITDA to operating income (loss) for the entity's reportable segments [Abstract] | |||||||||||
Non-Cash Compensation Expense | -647 | -633 | -770 | ||||||||
Depreciation | -927 | -2,124 | -1,398 | ||||||||
Amortization of Intangibles | -2,098 | -1,070 | -6,179 | ||||||||
Acquisition-related contingent consideration fair value adjustments | 215 | ||||||||||
Operating income | -40,177 | -20,803 | -46,902 | ||||||||
Reconciliation of segment assets to total assets | |||||||||||
Segment Assets | 87,448 | 92,500 | 87,448 | 92,500 | |||||||
Goodwill | 8,267 | 8,267 | 8,267 | 8,267 | |||||||
Indefinite-Lived Intangible Assets | 1,800 | 1,800 | 1,800 | 1,800 | |||||||
Definite-Lived Intangible Assets | 4,900 | 944 | 4,900 | 944 | |||||||
TOTAL ASSETS | 102,415 | 103,511 | 102,415 | 103,511 | |||||||
Total eCommerce | |||||||||||
Segment reporting information | |||||||||||
Revenue | 435,361 | 422,066 | 457,182 | ||||||||
Adjusted EBITDA | 17,282 | 22,890 | 31,200 | ||||||||
Segment Assets | 50,133 | 41,827 | 50,133 | 41,827 | |||||||
Capital expenditures | 9,620 | 8,921 | 8,485 | ||||||||
Reconciliation of Adjusted EBITDA to operating income (loss) for the entity's reportable segments [Abstract] | |||||||||||
Non-Cash Compensation Expense | -559 | 29 | 2 | ||||||||
Depreciation | -8,015 | -8,887 | -11,210 | ||||||||
Amortization of Intangibles | -10,531 | -14,093 | -4,669 | ||||||||
Acquisition-related contingent consideration fair value adjustments | 566 | ||||||||||
Operating income | -1,257 | -61 | 15,323 | ||||||||
Reconciliation of segment assets to total assets | |||||||||||
Segment Assets | 50,133 | 41,827 | 50,133 | 41,827 | |||||||
Goodwill | 173,040 | 153,591 | 173,040 | 153,591 | 165,501 | ||||||
Indefinite-Lived Intangible Assets | 11,781 | 11,180 | 11,781 | 11,180 | |||||||
Definite-Lived Intangible Assets | 10,392 | 15,695 | 10,392 | 15,695 | |||||||
TOTAL ASSETS | 245,346 | 222,293 | 245,346 | 222,293 | |||||||
Eliminations | |||||||||||
Segment reporting information | |||||||||||
Revenue | -1,090 | -853 | -317 | ||||||||
Corporate | |||||||||||
Segment reporting information | |||||||||||
Adjusted EBITDA | -63,251 | -60,411 | -60,119 | ||||||||
Segment Assets | 1,251,383 | 1,229,205 | 1,251,383 | 1,229,205 | |||||||
Capital expenditures | 6,241 | 27,981 | 6,365 | ||||||||
Reconciliation of Adjusted EBITDA to operating income (loss) for the entity's reportable segments [Abstract] | |||||||||||
Non-Cash Compensation Expense | -58,715 | -51,276 | -82,005 | ||||||||
Depreciation | -10,125 | -9,518 | -8,539 | ||||||||
Acquisition-related contingent consideration fair value adjustments | 0 | ||||||||||
Operating income | -132,091 | -121,205 | -150,663 | ||||||||
Reconciliation of segment assets to total assets | |||||||||||
Segment Assets | 1,251,383 | 1,229,205 | 1,251,383 | 1,229,205 | |||||||
TOTAL ASSETS | $1,251,383 | $1,229,205 | $1,251,383 | $1,229,205 |
SEGMENT_INFORMATION_Details_2
SEGMENT INFORMATION (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue and long-lived assets by geography | |||||||||||
Revenue | $830,754 | $782,231 | $756,315 | $740,247 | $724,455 | $756,872 | $799,411 | $742,249 | $3,109,547 | $3,022,987 | $2,800,933 |
Long-lived assets (excluding goodwill and intangible assets) | 302,459 | 293,964 | 302,459 | 293,964 | |||||||
United States | |||||||||||
Revenue and long-lived assets by geography | |||||||||||
Revenue | 2,146,189 | 2,081,485 | 1,966,383 | ||||||||
Long-lived assets (excluding goodwill and intangible assets) | 281,879 | 271,916 | 281,879 | 271,916 | |||||||
All other countries | |||||||||||
Revenue and long-lived assets by geography | |||||||||||
Revenue | 963,358 | 941,502 | 834,550 | ||||||||
Long-lived assets (excluding goodwill and intangible assets) | $20,580 | $22,048 | $20,580 | $22,048 |
COMMITMENTS_Details
COMMITMENTS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Future minimum payments under operating lease agreements | |||
2015 | $32,255,000 | ||
2016 | 31,105,000 | ||
2017 | 26,723,000 | ||
2018 | 23,338,000 | ||
2019 | 17,775,000 | ||
Thereafter | 191,108,000 | ||
Total | 322,304,000 | ||
Expenses charged to operations under operating lease agreements | $41,200,000 | $36,700,000 | $30,600,000 |
Period of most significant operating leases (in years) | 77 years | ||
Percentage of most significant operating leases | 55.00% |
COMMITMENTS_Details_2
COMMITMENTS (Details 2) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Amount of Commitment Expiration Per Period | |
Less Than 1 Year | $11,986 |
1-3 Years | 521 |
3-5 Years | 73 |
More Than 5 Years | 1,437 |
Total Amounts Committed | 14,017 |
Purchase obligations | |
Amount of Commitment Expiration Per Period | |
Less Than 1 Year | 10,710 |
1-3 Years | 521 |
3-5 Years | 0 |
More Than 5 Years | 0 |
Total Amounts Committed | 11,231 |
Letters of credit and surety bonds | |
Amount of Commitment Expiration Per Period | |
Less Than 1 Year | 1,276 |
1-3 Years | 0 |
3-5 Years | 73 |
More Than 5 Years | 1,437 |
Total Amounts Committed | $2,786 |
CONTINGENCIES_Details
CONTINGENCIES (Details) | 12 Months Ended |
Dec. 31, 2014 | |
lawsuit | |
Contingencies Disclosure | |
Minimum number of lawsuits that could have material impact on the liquidity, results of operations, or financial condition | 1 |
SUPPLEMENTAL_CASH_FLOW_INFORMA2
SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Supplemental Cash Flow Information [Abstract] | |||
Fair Value Of Contingent Consideration At Date Of Acquisition | $8,800,000 | $41,400,000 | |
Cash paid (received) during the year for: | |||
Interest | 54,027,000 | 28,705,000 | 5,214,000 |
Income tax payments | 63,521,000 | 112,087,000 | 43,316,000 |
Income tax refunds | ($10,477,000) | ($17,683,000) | ($8,187,000) |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 |
Related Party Transactions [Abstract] | ||
Ownership interest held by each of the Company and Expedia in aircraft (as a percent) | 50.00% | |
IAC's total purchase price and refurbish costs in another aircraft | $25 | |
Ownership interest held by each of the Company and Expedia in an entity employing aircraft flight crew (as a percent) | 50.00% |
BENEFIT_PLANS_Details
BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Employee contribution limit per calendar year (as a percent of pre-tax earnings) | 50.00% | 50.00% | 50.00% |
Employer contribution limit per calendar year (as a percent of compensation) | 3.00% | 3.00% | 3.00% |
UNITED STATES | |||
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Defined Benefit Plan, Contributions by Employer | 7.5 | 6.5 | 6.5 |
All Other Countries [Member] | |||
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Defined Benefit Plan, Contributions by Employer | 2.5 | 2.9 | 2.3 |
CONSOLIDATED_FINANCIAL_STATEME2
CONSOLIDATED FINANCIAL STATEMENT DETAILS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other current assets: | ||
Prepaid expenses | $39,311 | $23,942 |
Capitalized downloadable search toolbar costs, net | 29,608 | 21,171 |
Production costs | 24,599 | 17,717 |
Deferred income taxes | 17,993 | 34,381 |
Income taxes receivable | 4,505 | 12,242 |
Other | 50,726 | 52,077 |
Other current assets | 166,742 | 161,530 |
Property and equipment, net: | ||
Property and equipment, gross | 581,993 | 559,262 |
Accumulated depreciation and amortization | -279,534 | -265,298 |
Property and equipment, net | 302,459 | 293,964 |
Other non-current assets: | ||
Production Costs | 11,586 | 22,423 |
Income taxes receivable | 1,478 | 19,217 |
Restricted cash - funds held in escrow for Meetic tender offer | 0 | 71,512 |
Other | 43,629 | 51,533 |
Other non-current assets | 56,693 | 164,685 |
Accrued expenses and other current liabilities: | ||
Accrued employee compensation and benefits | 101,830 | 85,006 |
Accrued advertising expense | 87,485 | 63,406 |
Accrued revenue share expense | 50,624 | 72,274 |
Income taxes payable | 41,157 | 16,159 |
Other | 116,707 | 114,193 |
Accrued Liabilities, Current | 397,803 | 351,038 |
Buildings and leasehold improvements | ||
Property and equipment, net: | ||
Property and equipment, gross | 230,577 | 246,283 |
Computer equipment and capitalized software | ||
Property and equipment, net: | ||
Property and equipment, gross | 238,960 | 208,426 |
Furniture and other equipment | ||
Property and equipment, net: | ||
Property and equipment, gross | 87,788 | 84,787 |
Projects in progress | ||
Property and equipment, net: | ||
Property and equipment, gross | 19,551 | 14,649 |
Land | ||
Property and equipment, net: | ||
Property and equipment, gross | $5,117 | $5,117 |
CONSOLIDATED_FINANCIAL_STATEME3
CONSOLIDATED FINANCIAL STATEMENT DETAILS (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue | |||||||||||
Service revenue | $2,957,735 | $2,869,822 | $2,639,409 | ||||||||
Product revenue | 151,812 | 153,165 | 161,524 | ||||||||
Revenue | 830,754 | 782,231 | 756,315 | 740,247 | 724,455 | 756,872 | 799,411 | 742,249 | 3,109,547 | 3,022,987 | 2,800,933 |
Cost of revenue | |||||||||||
Cost of service revenue | 757,194 | 884,189 | 833,374 | ||||||||
Cost of product revenue | 125,982 | 119,532 | 158,314 | ||||||||
Cost of revenue | $238,517 | $224,695 | $210,730 | $209,234 | $222,421 | $249,888 | $273,938 | $257,474 | $883,176 | $1,003,721 | $991,688 |
CONSOLIDATED_FINANCIAL_STATEME4
CONSOLIDATED FINANCIAL STATEMENT DETAILS (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other income (expense), net | |||
Impairment of long-term investments | ($66,601) | ($5,268) | ($8,685) |
Foreign currency exchange losses, net | -1,558 | -2,883 | -1,050 |
Gains on sales of long-term investments and a business | 21,946 | 35,856 | 3,326 |
Interest income | 4,352 | 2,608 | 3,462 |
Other | -926 | -4 | -65 |
Other (expense) income, net | ($42,787) | $30,309 | ($3,012) |
GUARANTOR_AND_NONGUARANTOR_FIN2
GUARANTOR AND NONGUARANTOR FINANCIAL INFORMATION (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $990,405 | $1,100,444 | $749,977 | $704,153 |
Marketable securities | 160,648 | 6,004 | ||
Accounts receivable | 236,086 | 207,408 | ||
Other current assets | 166,742 | 161,530 | ||
Property and equipment, net | 302,459 | 293,964 | ||
Goodwill | 1,754,926 | 1,675,323 | 1,616,154 | |
Intangible assets, net | 491,936 | 445,336 | ||
Other non-current assets | 56,693 | 164,685 | ||
TOTAL ASSETS | 4,274,878 | 4,234,684 | ||
Accounts payable, trade | 81,163 | 77,653 | ||
Long-term debt | 1,080,000 | 1,080,000 | ||
Income taxes payable | 32,635 | 416,384 | ||
Other long-term liabilities | 45,191 | 58,393 | ||
Redeemable noncontrolling interests | 40,427 | 42,861 | ||
Total IAC shareholders' equity | 1,991,953 | 1,686,736 | ||
Noncontrolling interests | 1,189 | 42,665 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,274,878 | 4,234,684 | ||
IAC | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 766,076 | 782,022 | 501,075 | 545,222 |
Marketable securities | 159,197 | 1,007 | ||
Accounts receivable | 13 | 38 | ||
Other current assets | 23,923 | 45,111 | ||
Intercompany receivables | 0 | 0 | ||
Property and equipment, net | 4,950 | 5,316 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Equity Method Investments | 5,035,304 | 3,833,751 | ||
Other non-current assets | 44,610 | 83,207 | ||
TOTAL ASSETS | 6,034,073 | 4,750,452 | ||
Accounts payable, trade | 3,059 | 4,310 | ||
Other current liabilities | 73,491 | 41,623 | ||
Long-term debt | 1,000,000 | 1,000,000 | ||
Income taxes payable | 2,240 | 383,926 | ||
Intercompany liabilities | 2,659,213 | 1,416,453 | ||
Other long-term liabilities | 304,117 | 217,404 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Total IAC shareholders' equity | 1,991,953 | 1,686,736 | ||
Noncontrolling interests | 0 | 0 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 6,034,073 | 4,750,452 | ||
Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 1,021 | 0 | 0 | 0 |
Marketable securities | 0 | 0 | ||
Accounts receivable | 155,262 | 135,651 | ||
Other current assets | 91,105 | 76,572 | ||
Intercompany receivables | 1,688,403 | 569,030 | ||
Property and equipment, net | 232,819 | 221,386 | ||
Goodwill | 1,249,807 | 1,180,159 | ||
Intangible assets, net | 325,771 | 302,082 | ||
Equity Method Investments | 930,443 | 782,840 | ||
Other non-current assets | 20,682 | 15,521 | ||
TOTAL ASSETS | 4,695,313 | 3,283,241 | ||
Accounts payable, trade | 55,320 | 51,525 | ||
Other current liabilities | 328,920 | 280,549 | ||
Long-term debt | 80,000 | 80,000 | ||
Income taxes payable | 4,771 | 6,768 | ||
Intercompany liabilities | 0 | 0 | ||
Other long-term liabilities | 104,219 | 96,239 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Total IAC shareholders' equity | 4,122,083 | 2,768,160 | ||
Noncontrolling interests | 0 | 0 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,695,313 | 3,283,241 | ||
Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 223,308 | 318,422 | 248,902 | 158,931 |
Marketable securities | 1,451 | 4,997 | ||
Accounts receivable | 80,811 | 71,719 | ||
Other current assets | 57,487 | 40,661 | ||
Intercompany receivables | 970,810 | 847,423 | ||
Property and equipment, net | 64,690 | 67,262 | ||
Goodwill | 505,119 | 495,164 | ||
Intangible assets, net | 166,165 | 143,254 | ||
Equity Method Investments | 0 | 0 | ||
Other non-current assets | 109,372 | 252,576 | ||
TOTAL ASSETS | 2,179,213 | 2,241,478 | ||
Accounts payable, trade | 22,784 | 21,818 | ||
Other current liabilities | 191,197 | 187,072 | ||
Long-term debt | 0 | 0 | ||
Income taxes payable | 25,624 | 25,690 | ||
Intercompany liabilities | 0 | 0 | ||
Other long-term liabilities | 54,328 | 72,941 | ||
Redeemable noncontrolling interests | 40,427 | 42,861 | ||
Total IAC shareholders' equity | 1,843,664 | 1,848,431 | ||
Noncontrolling interests | 1,189 | 42,665 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 2,179,213 | 2,241,478 | ||
IAC Consolidated | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 990,405 | 1,100,444 | 749,977 | 704,153 |
Marketable securities | 160,648 | 6,004 | ||
Accounts receivable | 236,086 | 207,408 | ||
Other current assets | 166,742 | 161,530 | ||
Intercompany receivables | 0 | 0 | ||
Property and equipment, net | 302,459 | 293,964 | ||
Goodwill | 1,754,926 | 1,675,323 | ||
Intangible assets, net | 491,936 | 445,336 | ||
Equity Method Investments | 0 | 0 | ||
Other non-current assets | 171,676 | 344,675 | ||
TOTAL ASSETS | 4,274,878 | 4,234,684 | ||
Accounts payable, trade | 81,163 | 77,653 | ||
Other current liabilities | 592,791 | 509,244 | ||
Long-term debt | 1,080,000 | 1,080,000 | ||
Income taxes payable | 32,635 | 416,384 | ||
Intercompany liabilities | 0 | 0 | ||
Other long-term liabilities | 454,720 | 379,141 | ||
Redeemable noncontrolling interests | 40,427 | 42,861 | ||
Total IAC shareholders' equity | 1,991,953 | 1,686,736 | ||
Noncontrolling interests | 1,189 | 42,665 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,274,878 | 4,234,684 | ||
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Marketable securities | 0 | 0 | ||
Accounts receivable | 0 | 0 | ||
Other current assets | -5,773 | -814 | ||
Intercompany receivables | -2,659,213 | -1,416,453 | ||
Property and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Equity Method Investments | -5,965,747 | -4,616,591 | ||
Other non-current assets | -2,988 | -6,629 | ||
TOTAL ASSETS | -8,633,721 | -6,040,487 | ||
Accounts payable, trade | 0 | 0 | ||
Other current liabilities | -817 | 0 | ||
Long-term debt | 0 | 0 | ||
Income taxes payable | 0 | 0 | ||
Intercompany liabilities | -2,659,213 | -1,416,453 | ||
Other long-term liabilities | -7,944 | -7,443 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Total IAC shareholders' equity | -5,965,747 | -4,616,591 | ||
Noncontrolling interests | 0 | 0 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | ($8,633,721) | ($6,040,487) |
GUARANTOR_AND_NONGUARANTOR_FIN3
GUARANTOR AND NONGUARANTOR FINANCIAL INFORMATION (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenue | $830,754 | $782,231 | $756,315 | $740,247 | $724,455 | $756,872 | $799,411 | $742,249 | $3,109,547 | $3,022,987 | $2,800,933 |
Cost of revenue | 238,517 | 224,695 | 210,730 | 209,234 | 222,421 | 249,888 | 273,938 | 257,474 | 883,176 | 1,003,721 | 991,688 |
Selling and marketing expense | 1,124,437 | 956,410 | 894,438 | ||||||||
General and administrative expense | 443,610 | 378,142 | 386,461 | ||||||||
Product development expense | 160,515 | 139,759 | 116,526 | ||||||||
Depreciation | 61,156 | 58,909 | 52,481 | ||||||||
Amortization of intangibles | 57,926 | 59,843 | 35,771 | ||||||||
Total operating costs and expenses | 2,730,820 | 2,596,784 | 2,477,365 | ||||||||
Operating income | 110,372 | 100,953 | 95,690 | 71,712 | 112,952 | 122,004 | 106,696 | 84,551 | 378,727 | 426,203 | 323,568 |
Equity in losses of unconsolidated affiliates | -9,697 | -6,615 | -25,345 | ||||||||
Interest expense | -56,314 | -33,596 | -6,149 | ||||||||
Other (expense) income, net | -42,787 | 30,309 | -3,012 | ||||||||
Earnings from continuing operations before income taxes | 269,929 | 416,301 | 289,062 | ||||||||
Income tax provision | -35,372 | -134,502 | -119,215 | ||||||||
Earnings from continuing operations | 67,986 | 150,261 | -17,995 | 34,305 | 78,829 | 91,721 | 58,540 | 52,709 | 234,557 | 281,799 | 169,847 |
Less: earnings (loss) from discontinued operations, net of tax | 625 | 175,730 | -868 | -814 | 24 | 3,914 | -1,068 | -944 | 174,673 | 1,926 | -9,051 |
Net earnings | 68,611 | 325,991 | -18,863 | 33,491 | 78,853 | 95,635 | 57,472 | 51,765 | 409,230 | 283,725 | 160,796 |
Net loss (earnings) attributable to noncontrolling interests | 5,643 | 2,059 | -1,530 | ||||||||
Net earnings attributable to IAC shareholders | 70,172 | 326,812 | -17,996 | 35,885 | 76,917 | 96,940 | 58,290 | 53,637 | 414,873 | 285,784 | 159,266 |
Comprehensive income attributable to IAC shareholders | 340,219 | 304,907 | 139,540 | ||||||||
IAC | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Cost of revenue | 998 | 2,456 | 5,194 | ||||||||
Selling and marketing expense | 2,138 | 2,563 | 4,081 | ||||||||
General and administrative expense | 105,221 | 97,025 | 121,919 | ||||||||
Product development expense | 6,496 | 4,685 | 5,611 | ||||||||
Depreciation | 1,426 | 1,386 | 832 | ||||||||
Amortization of intangibles | 0 | 0 | 0 | ||||||||
Total operating costs and expenses | 116,279 | 108,115 | 137,637 | ||||||||
Operating income | -116,279 | -108,115 | -137,637 | ||||||||
Equity in losses of unconsolidated affiliates | 253,582 | 439,925 | 309,639 | ||||||||
Interest expense | -51,988 | -29,417 | -1,835 | ||||||||
Other (expense) income, net | 2,688 | -35,331 | -82,900 | ||||||||
Earnings from continuing operations before income taxes | 88,003 | 267,062 | 87,267 | ||||||||
Income tax provision | 152,197 | 16,796 | 81,050 | ||||||||
Earnings from continuing operations | 240,200 | 283,858 | 168,317 | ||||||||
Less: earnings (loss) from discontinued operations, net of tax | 174,673 | 1,926 | -9,051 | ||||||||
Net earnings | 414,873 | 285,784 | 159,266 | ||||||||
Net loss (earnings) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net earnings attributable to IAC shareholders | 414,873 | 285,784 | 159,266 | ||||||||
Comprehensive income attributable to IAC shareholders | 340,219 | 304,907 | 139,540 | ||||||||
Guarantor Subsidiaries | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenue | 2,286,621 | 2,183,969 | 1,986,527 | ||||||||
Cost of revenue | 525,185 | 600,511 | 597,588 | ||||||||
Selling and marketing expense | 904,221 | 769,115 | 669,448 | ||||||||
General and administrative expense | 211,293 | 164,173 | 152,166 | ||||||||
Product development expense | 110,375 | 100,350 | 83,008 | ||||||||
Depreciation | 40,645 | 38,938 | 35,544 | ||||||||
Amortization of intangibles | 37,661 | 40,277 | 10,958 | ||||||||
Total operating costs and expenses | 1,829,380 | 1,713,364 | 1,548,712 | ||||||||
Operating income | 457,241 | 470,605 | 437,815 | ||||||||
Equity in losses of unconsolidated affiliates | 34,613 | 62,402 | 37,866 | ||||||||
Interest expense | -4,246 | -3,979 | -4,174 | ||||||||
Other (expense) income, net | -3,315 | -35,040 | -3,733 | ||||||||
Earnings from continuing operations before income taxes | 484,293 | 493,988 | 467,774 | ||||||||
Income tax provision | -172,128 | -156,170 | -146,333 | ||||||||
Earnings from continuing operations | 312,165 | 337,818 | 321,441 | ||||||||
Less: earnings (loss) from discontinued operations, net of tax | 0 | 0 | 0 | ||||||||
Net earnings | 312,165 | 337,818 | 321,441 | ||||||||
Net loss (earnings) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net earnings attributable to IAC shareholders | 312,165 | 337,818 | 321,441 | ||||||||
Comprehensive income attributable to IAC shareholders | 303,976 | 338,683 | 322,212 | ||||||||
Non-Guarantor Subsidiaries | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenue | 834,765 | 843,133 | 820,759 | ||||||||
Cost of revenue | 359,746 | 403,614 | 393,811 | ||||||||
Selling and marketing expense | 226,381 | 185,865 | 222,374 | ||||||||
General and administrative expense | 127,051 | 117,066 | 112,359 | ||||||||
Product development expense | 44,472 | 34,724 | 27,907 | ||||||||
Depreciation | 19,085 | 18,585 | 16,105 | ||||||||
Amortization of intangibles | 20,265 | 19,566 | 24,813 | ||||||||
Total operating costs and expenses | 797,000 | 779,420 | 797,369 | ||||||||
Operating income | 37,765 | 63,713 | 23,390 | ||||||||
Equity in losses of unconsolidated affiliates | 452 | -303 | -22,548 | ||||||||
Interest expense | -80 | -200 | -140 | ||||||||
Other (expense) income, net | -42,160 | 100,680 | 83,621 | ||||||||
Earnings from continuing operations before income taxes | -4,023 | 163,890 | 84,323 | ||||||||
Income tax provision | -15,441 | 4,872 | -53,932 | ||||||||
Earnings from continuing operations | -19,464 | 168,762 | 30,391 | ||||||||
Less: earnings (loss) from discontinued operations, net of tax | 570 | -39 | 842 | ||||||||
Net earnings | -18,894 | 168,723 | 31,233 | ||||||||
Net loss (earnings) attributable to noncontrolling interests | 5,643 | 2,059 | -1,530 | ||||||||
Net earnings attributable to IAC shareholders | -13,251 | 170,782 | 29,703 | ||||||||
Comprehensive income attributable to IAC shareholders | -84,767 | 181,481 | 29,828 | ||||||||
IAC Consolidated | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenue | 3,109,547 | 3,022,987 | 2,800,933 | ||||||||
Cost of revenue | 883,176 | 1,003,721 | 991,688 | ||||||||
Selling and marketing expense | 1,124,437 | 956,410 | 894,438 | ||||||||
General and administrative expense | 443,610 | 378,142 | 386,461 | ||||||||
Product development expense | 160,515 | 139,759 | 116,526 | ||||||||
Depreciation | 61,156 | 58,909 | 52,481 | ||||||||
Amortization of intangibles | 57,926 | 59,843 | 35,771 | ||||||||
Total operating costs and expenses | 2,730,820 | 2,596,784 | 2,477,365 | ||||||||
Operating income | 378,727 | 426,203 | 323,568 | ||||||||
Equity in losses of unconsolidated affiliates | -9,697 | -6,615 | -25,345 | ||||||||
Interest expense | -56,314 | -33,596 | -6,149 | ||||||||
Other (expense) income, net | -42,787 | 30,309 | -3,012 | ||||||||
Earnings from continuing operations before income taxes | 269,929 | 416,301 | 289,062 | ||||||||
Income tax provision | -35,372 | -134,502 | -119,215 | ||||||||
Earnings from continuing operations | 234,557 | 281,799 | 169,847 | ||||||||
Less: earnings (loss) from discontinued operations, net of tax | 174,673 | 1,926 | -9,051 | ||||||||
Net earnings | 409,230 | 283,725 | 160,796 | ||||||||
Net loss (earnings) attributable to noncontrolling interests | 5,643 | 2,059 | -1,530 | ||||||||
Net earnings attributable to IAC shareholders | 414,873 | 285,784 | 159,266 | ||||||||
Comprehensive income attributable to IAC shareholders | 340,219 | 304,907 | 139,540 | ||||||||
Eliminations | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenue | -11,839 | -4,115 | -6,353 | ||||||||
Cost of revenue | -2,753 | -2,860 | -4,905 | ||||||||
Selling and marketing expense | -8,303 | -1,133 | -1,465 | ||||||||
General and administrative expense | 45 | -122 | 17 | ||||||||
Product development expense | -828 | 0 | 0 | ||||||||
Depreciation | 0 | 0 | 0 | ||||||||
Amortization of intangibles | 0 | 0 | 0 | ||||||||
Total operating costs and expenses | -11,839 | -4,115 | -6,353 | ||||||||
Operating income | 0 | 0 | 0 | ||||||||
Equity in losses of unconsolidated affiliates | -298,344 | -508,639 | -350,302 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Other (expense) income, net | 0 | 0 | 0 | ||||||||
Earnings from continuing operations before income taxes | -298,344 | -508,639 | -350,302 | ||||||||
Income tax provision | 0 | 0 | 0 | ||||||||
Earnings from continuing operations | -298,344 | -508,639 | -350,302 | ||||||||
Less: earnings (loss) from discontinued operations, net of tax | -570 | 39 | -842 | ||||||||
Net earnings | -298,914 | -508,600 | -351,144 | ||||||||
Net loss (earnings) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net earnings attributable to IAC shareholders | -298,914 | -508,600 | -351,144 | ||||||||
Comprehensive income attributable to IAC shareholders | ($219,209) | ($520,164) | ($352,040) |
GUARANTOR_AND_NONGUARANTOR_FIN4
GUARANTOR AND NONGUARANTOR FINANCIAL INFORMATION (Details 3) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities attributable to continuing operations | $424,048 | $410,961 | $354,527 |
Acquisitions, net of cash acquired | -259,391 | -40,434 | -400,254 |
Capital expenditures | -57,233 | -80,311 | -51,201 |
Proceeds from maturities and sales of marketable debt securities | 21,644 | 12,502 | 195,501 |
Purchases of marketable debt securities | -175,826 | -53,952 | |
Proceeds from sales of long-term investments, assets and a business | 58,388 | 83,091 | 14,616 |
Purchases of long-term investments | -24,334 | -51,080 | -36,094 |
Other, net | -3,042 | -3,529 | -9,923 |
Net cash used in investing activities attributable to continuing operations | -439,794 | -79,761 | -341,307 |
Proceeds from issuance of long-term debt | 500,000 | 500,000 | |
Principal payments on long-term debt | 0 | -15,844 | 0 |
Purchase of treasury stock | -264,214 | -691,830 | |
Dividends | -97,338 | -79,189 | -68,163 |
Proceeds from Issuance or Sale of Equity | 1,609 | -5,077 | 262,841 |
Excess tax benefits from stock-based awards | 44,957 | 32,891 | 57,101 |
Purchase of noncontrolling Interests | -33,165 | -67,947 | -4,891 |
Funds returned from (transferred to) escrow for Meetic tender offer | 12,354 | -71,512 | 0 |
Acquisition-related contingent consideration payments | -8,109 | -256 | -10,781 |
Debt issuance Costs | -383 | -7,399 | -11,001 |
Other, net | -905 | -3,787 | 244 |
Net cash (used in) provided by financing activities attributable to continuing operations | -80,980 | 17,666 | 33,520 |
Total cash (used in) provided by continuing operations | -96,726 | 348,866 | 46,740 |
Total cash used in discontinued operations | -145 | -1,877 | -3,472 |
Effect of exchange rate changes on cash and cash equivalents | -13,168 | 3,478 | 2,556 |
Net (decrease) increase in cash and cash equivalents | -110,039 | 350,467 | 45,824 |
Cash and cash equivalents at beginning of period | 1,100,444 | 749,977 | 704,153 |
Cash and cash equivalents at end of period | 990,405 | 1,100,444 | 749,977 |
IAC | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities attributable to continuing operations | -114,773 | -95,081 | -116,353 |
Acquisitions, net of cash acquired | 0 | 0 | -35,159 |
Capital expenditures | -1,843 | -1,387 | -3,969 |
Proceeds from maturities and sales of marketable debt securities | 21,644 | 12,502 | 195,501 |
Purchases of marketable debt securities | -175,826 | -53,952 | |
Proceeds from sales of long-term investments, assets and a business | 0 | 7,839 | 14,194 |
Purchases of long-term investments | -4,800 | -17,814 | -27,187 |
Other, net | -2,000 | 0 | -351 |
Net cash used in investing activities attributable to continuing operations | -162,825 | 1,140 | 89,077 |
Proceeds from issuance of long-term debt | 500,000 | 500,000 | |
Principal payments on long-term debt | -15,844 | ||
Purchase of treasury stock | -264,214 | -691,830 | |
Dividends | -97,338 | -79,189 | -68,163 |
Proceeds from Issuance or Sale of Equity | 1,609 | -5,077 | 262,841 |
Excess tax benefits from stock-based awards | 34,214 | 32,081 | 52,209 |
Purchase of noncontrolling Interests | 0 | 0 | -1,936 |
Funds returned from (transferred to) escrow for Meetic tender offer | 0 | 0 | |
Acquisition-related contingent consideration payments | 0 | 0 | 0 |
Debt issuance Costs | -383 | -7,399 | -11,001 |
Intercompany | 323,666 | 216,359 | -55,020 |
Other, net | 0 | ||
Net cash (used in) provided by financing activities attributable to continuing operations | 261,768 | 376,717 | -12,900 |
Total cash (used in) provided by continuing operations | -15,830 | 282,776 | -40,176 |
Total cash used in discontinued operations | -116 | -1,829 | -3,971 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | -15,946 | 280,947 | -44,147 |
Cash and cash equivalents at beginning of period | 782,022 | 501,075 | 545,222 |
Cash and cash equivalents at end of period | 766,076 | 782,022 | 501,075 |
Guarantor Subsidiaries | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities attributable to continuing operations | 543,087 | 537,116 | 453,692 |
Acquisitions, net of cash acquired | -191,238 | -6,382 | -331,182 |
Capital expenditures | -40,422 | -63,931 | -29,550 |
Proceeds from maturities and sales of marketable debt securities | 0 | 0 | 0 |
Purchases of marketable debt securities | 0 | 0 | |
Proceeds from sales of long-term investments, assets and a business | 0 | 50,850 | 272 |
Purchases of long-term investments | -7,043 | 0 | -724 |
Other, net | 11 | -1,725 | -155 |
Net cash used in investing activities attributable to continuing operations | -238,692 | -21,188 | -361,339 |
Principal payments on long-term debt | 0 | ||
Dividends | 0 | ||
Proceeds from Issuance or Sale of Equity | 0 | ||
Excess tax benefits from stock-based awards | 0 | 4,892 | |
Purchase of noncontrolling Interests | -30,000 | 0 | 0 |
Funds returned from (transferred to) escrow for Meetic tender offer | 0 | 0 | |
Acquisition-related contingent consideration payments | -736 | -256 | -10,781 |
Debt issuance Costs | 0 | 0 | 0 |
Intercompany | -271,309 | -514,464 | -86,446 |
Other, net | -1,365 | -1,225 | |
Net cash (used in) provided by financing activities attributable to continuing operations | -303,410 | -515,945 | -92,335 |
Total cash (used in) provided by continuing operations | 985 | -17 | 18 |
Total cash used in discontinued operations | 0 | ||
Effect of exchange rate changes on cash and cash equivalents | 36 | 17 | -18 |
Net (decrease) increase in cash and cash equivalents | 1,021 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | 1,021 | 0 | 0 |
Non-Guarantor Subsidiaries | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities attributable to continuing operations | -4,266 | -31,074 | 17,188 |
Acquisitions, net of cash acquired | -68,153 | -34,052 | -33,913 |
Capital expenditures | -14,968 | -14,993 | -17,682 |
Proceeds from maturities and sales of marketable debt securities | 0 | 0 | 0 |
Purchases of marketable debt securities | 0 | 0 | |
Proceeds from sales of long-term investments, assets and a business | 58,388 | 24,402 | 150 |
Purchases of long-term investments | -12,491 | -33,266 | -8,183 |
Other, net | -1,053 | -1,804 | -9,417 |
Net cash used in investing activities attributable to continuing operations | -38,277 | -59,713 | -69,045 |
Principal payments on long-term debt | 0 | ||
Dividends | 0 | ||
Proceeds from Issuance or Sale of Equity | 0 | ||
Excess tax benefits from stock-based awards | 10,743 | 810 | |
Purchase of noncontrolling Interests | -3,165 | -67,947 | -2,955 |
Funds returned from (transferred to) escrow for Meetic tender offer | 12,354 | -71,512 | |
Acquisition-related contingent consideration payments | -7,373 | 0 | 0 |
Debt issuance Costs | 0 | 0 | 0 |
Intercompany | -52,357 | 298,105 | 141,466 |
Other, net | 460 | -2,562 | 244 |
Net cash (used in) provided by financing activities attributable to continuing operations | -39,338 | 156,894 | 138,755 |
Total cash (used in) provided by continuing operations | -81,881 | 66,107 | 86,898 |
Total cash used in discontinued operations | -29 | -48 | 499 |
Effect of exchange rate changes on cash and cash equivalents | -13,204 | 3,461 | 2,574 |
Net (decrease) increase in cash and cash equivalents | -95,114 | 69,520 | 89,971 |
Cash and cash equivalents at beginning of period | 318,422 | 248,902 | 158,931 |
Cash and cash equivalents at end of period | 223,308 | 318,422 | 248,902 |
IAC Consolidated | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities attributable to continuing operations | 424,048 | 410,961 | 354,527 |
Acquisitions, net of cash acquired | -259,391 | -40,434 | -400,254 |
Capital expenditures | -57,233 | -80,311 | -51,201 |
Proceeds from maturities and sales of marketable debt securities | 21,644 | 12,502 | 195,501 |
Purchases of marketable debt securities | -175,826 | -53,952 | |
Proceeds from sales of long-term investments, assets and a business | 58,388 | 83,091 | 14,616 |
Purchases of long-term investments | -24,334 | -51,080 | -36,094 |
Other, net | -3,042 | -3,529 | -9,923 |
Net cash used in investing activities attributable to continuing operations | -439,794 | -79,761 | -341,307 |
Proceeds from issuance of long-term debt | 500,000 | 500,000 | |
Principal payments on long-term debt | -15,844 | ||
Purchase of treasury stock | -264,214 | -691,830 | |
Dividends | -97,338 | -79,189 | -68,163 |
Proceeds from Issuance or Sale of Equity | 1,609 | -5,077 | 262,841 |
Excess tax benefits from stock-based awards | 44,957 | 32,891 | 57,101 |
Purchase of noncontrolling Interests | -33,165 | -67,947 | -4,891 |
Funds returned from (transferred to) escrow for Meetic tender offer | 12,354 | -71,512 | |
Acquisition-related contingent consideration payments | -8,109 | -256 | -10,781 |
Debt issuance Costs | -383 | -7,399 | -11,001 |
Intercompany | 0 | 0 | 0 |
Other, net | -905 | -3,787 | 244 |
Net cash (used in) provided by financing activities attributable to continuing operations | -80,980 | 17,666 | 33,520 |
Total cash (used in) provided by continuing operations | -96,726 | 348,866 | 46,740 |
Total cash used in discontinued operations | -145 | -1,877 | -3,472 |
Effect of exchange rate changes on cash and cash equivalents | -13,168 | 3,478 | 2,556 |
Net (decrease) increase in cash and cash equivalents | -110,039 | 350,467 | 45,824 |
Cash and cash equivalents at beginning of period | 1,100,444 | 749,977 | 704,153 |
Cash and cash equivalents at end of period | $990,405 | $1,100,444 | $749,977 |
QUARTERLY_RESULTS_UNAUDITED_De
QUARTERLY RESULTS (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $830,754,000 | $782,231,000 | $756,315,000 | $740,247,000 | $724,455,000 | $756,872,000 | $799,411,000 | $742,249,000 | $3,109,547,000 | $3,022,987,000 | $2,800,933,000 |
Cost of revenue | 238,517,000 | 224,695,000 | 210,730,000 | 209,234,000 | 222,421,000 | 249,888,000 | 273,938,000 | 257,474,000 | 883,176,000 | 1,003,721,000 | 991,688,000 |
Operating income | 110,372,000 | 100,953,000 | 95,690,000 | 71,712,000 | 112,952,000 | 122,004,000 | 106,696,000 | 84,551,000 | 378,727,000 | 426,203,000 | 323,568,000 |
Earnings from continuing operations | 67,986,000 | 150,261,000 | -17,995,000 | 34,305,000 | 78,829,000 | 91,721,000 | 58,540,000 | 52,709,000 | 234,557,000 | 281,799,000 | 169,847,000 |
(Loss) earnings from discontinued operations, net of tax | 625,000 | 175,730,000 | -868,000 | -814,000 | 24,000 | 3,914,000 | -1,068,000 | -944,000 | 174,673,000 | 1,926,000 | -9,051,000 |
Net earnings | 68,611,000 | 325,991,000 | -18,863,000 | 33,491,000 | 78,853,000 | 95,635,000 | 57,472,000 | 51,765,000 | 409,230,000 | 283,725,000 | 160,796,000 |
Net earnings (loss) attributable to IAC shareholders | 70,172,000 | 326,812,000 | -17,996,000 | 35,885,000 | 76,917,000 | 96,940,000 | 58,290,000 | 53,637,000 | 414,873,000 | 285,784,000 | 159,266,000 |
Cost method investment, Other-than-temporary impairment | $63,600,000 | $66,600,000 | $5,000,000 | ||||||||
Per share information attributable to IAC shareholders: | |||||||||||
Basic earnings per share from continuing operations (in dollars per share) | $0.83 | $1.81 | ($0.21) | $0.44 | $0.93 | $1.12 | $0.71 | $0.65 | $2.88 | $3.40 | $1.95 |
Diluted earnings per share from continuing operations (in dollars per share) | $0.78 | $1.70 | ($0.21) | $0.42 | $0.88 | $1.08 | $0.69 | $0.62 | $2.71 | $3.27 | $1.81 |
Basic earnings per share (in dollars per share) | $0.84 | $3.91 | ($0.22) | $0.44 | $0.93 | $1.17 | $0.70 | $0.64 | $4.98 | $3.42 | $1.85 |
Diluted earnings per share (in dollars per share) | $0.78 | $3.68 | ($0.22) | $0.41 | $0.88 | $1.13 | $0.67 | $0.61 | $4.68 | $3.29 | $1.71 |
Schedule_II_VALUATION_AND_QUAL1
Schedule II - VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for doubtful accounts and revenue reserves | ||||
Description | ||||
Balance at Beginning of Period | $8,540 | $8,775 | $7,309 | |
Charges to Earnings | 15,226 | 12,275 | 12,237 | |
Charges to Other Accounts | -116 | 564 | 654 | |
Deductions | -11,213 | -13,074 | -11,425 | |
Balance at End of Period | 12,437 | 8,540 | 8,775 | |
Magazine publishing allowance for newsstand returns | ||||
Description | ||||
Balance at Beginning of Period | 2,313 | 0 | ||
Charges to Earnings | 164 | 10,426 | ||
Charges to Other Accounts | 45 | 33 | ||
Deductions | -2,522 | -8,146 | ||
Balance at End of Period | 0 | 2,313 | ||
Sales returns accrual | ||||
Description | ||||
Balance at Beginning of Period | 1,208 | 1,244 | 1,020 | |
Charges to Earnings | 19,743 | 19,176 | 17,728 | |
Charges to Other Accounts | 0 | 0 | 0 | |
Deductions | -19,832 | -19,212 | -17,504 | |
Balance at End of Period | 1,119 | 1,208 | 1,244 | |
Deferred tax valuation allowance | ||||
Description | ||||
Balance at Beginning of Period | 62,353 | 60,783 | 45,084 | |
Charges to Earnings | 34,133 | 8,864 | 9,320 | |
Charges to Other Accounts | 1,864 | -7,294 | 6,379 | |
Deductions | 0 | 0 | 0 | |
Balance at End of Period | 98,350 | 62,353 | 60,783 | |
Other reserves | ||||
Description | ||||
Balance at Beginning of Period | 2,119 | |||
Balance at End of Period | $2,204 | $2,518 | $1,925 | $2,119 |