DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 3 Months Ended | |
Mar. 31, 2018 | May 04, 2018 | |
Entity Registrant Name | IAC/INTERACTIVECORP | |
Entity Central Index Key | 891,103 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Class A | ||
Entity Common Stock, Shares Outstanding | 77,896,436 | |
Class B Convertible Common Stock | ||
Entity Common Stock, Shares Outstanding | 5,789,499 |
CONSOLIDATED BALANCE SHEET (Una
CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 1,657,537 | $ 1,630,809 |
Marketable securities | 5,630 | 4,995 |
Accounts receivable, net of allowance of $14,239 and $11,489, respectively | 325,263 | 304,027 |
Other current assets | 234,502 | 185,374 |
Total current assets | 2,222,932 | 2,125,205 |
Property and equipment, net of accumulated depreciation and amortization of $287,526 and $271,811, respectively | 301,865 | 315,170 |
Goodwill | 2,601,210 | 2,559,066 |
Intangible assets, net of accumulated amortization of $94,027 and $74,957, respectively | 653,205 | 663,737 |
Long-term investments | 81,912 | 64,977 |
Deferred income taxes | 84,108 | 66,321 |
Other non-current assets | 85,742 | 73,334 |
TOTAL ASSETS | 6,030,974 | 5,867,810 |
LIABILITIES: | ||
Current portion of long-term debt | 14,120 | 13,750 |
Accounts payable, trade | 79,588 | 76,571 |
Deferred revenue | 374,339 | 342,483 |
Accrued expenses and other current liabilities | 361,446 | 366,924 |
Total current liabilities | 829,493 | 799,728 |
Long-term debt, net | 1,980,579 | 1,979,469 |
Income taxes payable | 24,076 | 25,624 |
Deferred income taxes | 35,938 | 35,070 |
Other long-term liabilities | 31,398 | 38,229 |
Redeemable noncontrolling interests | 47,099 | 42,867 |
Commitments and contingencies | ||
SHAREHOLDERS' EQUITY: | ||
Additional paid-in capital | 12,093,006 | 12,165,002 |
Retained earnings | 702,915 | 595,038 |
Accumulated other comprehensive loss | (74,950) | (103,568) |
Treasury stock 194,163 shares, respectively | (10,226,721) | (10,226,721) |
Total IAC shareholders' equity | 2,494,527 | 2,430,028 |
Noncontrolling interests | 587,864 | 516,795 |
Total shareholders' equity | 3,082,391 | 2,946,823 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 6,030,974 | 5,867,810 |
Common stock $.001 par value; authorized 1,600,000 shares; issued 261,396 and 260,624 shares, respectively, and outstanding 77,601 and 76,829 shares, respectively | ||
SHAREHOLDERS' EQUITY: | ||
Common stock | 261 | 261 |
Class B convertible common stock $.001 par value; authorized 400,000 shares; issued 16,157 shares and outstanding 5,789 shares | ||
SHAREHOLDERS' EQUITY: | ||
Common stock | $ 16 | $ 16 |
CONSOLIDATED BALANCE SHEET (Un3
CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Allowance for accounts receivable | $ 14,239 | $ 11,489 |
Accumulated depreciation and amortization of property and equipment | 287,526 | 271,811 |
Accumulated amortization of intangible assets | $ 94,027 | $ 74,957 |
Treasury stock (shares) | 194,163,000 | 194,163,000 |
Common stock $.001 par value; authorized 1,600,000 shares; issued 261,396 and 260,624 shares, respectively, and outstanding 77,601 and 76,829 shares, respectively | ||
Par value of common stock (USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (shares) | 1,600,000,000 | 1,600,000,000 |
Common stock issued (shares) | 261,936,000 | 260,624,000 |
Common stock outstanding (shares) | 77,601,000 | 76,829,000 |
Class B convertible common stock $.001 par value; authorized 400,000 shares; issued 16,157 shares and outstanding 5,789 shares | ||
Par value of common stock (USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (shares) | 400,000,000 | 400,000,000 |
Common stock issued (shares) | 16,157,000 | 16,157,000 |
Common stock outstanding (shares) | 5,789,000 | 5,789,000 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue | $ 995,075 | $ 760,833 |
Operating costs and expenses: | ||
Cost of revenue (exclusive of depreciation shown separately below) | 201,962 | 145,958 |
Selling and marketing expense | 402,832 | 350,411 |
General and administrative expense | 184,184 | 143,595 |
Product development expense | 76,937 | 54,760 |
Depreciation | 19,257 | 19,888 |
Amortization of intangibles | 19,953 | 9,161 |
Total operating costs and expenses | 905,125 | 723,773 |
Operating income | 89,950 | 37,060 |
Interest expense | (26,505) | (24,792) |
Other expense, net | (4,619) | (7,714) |
Earnings before income taxes | 58,826 | 4,554 |
Income tax benefit | 29,013 | 23,909 |
Net earnings | 87,839 | 28,463 |
Net earnings attributable to noncontrolling interests | (16,757) | (2,254) |
Net earnings attributable to IAC shareholders | $ 71,082 | $ 26,209 |
Per share information attributable to IAC shareholders: | ||
Basic earnings per share (USD per share) | $ 0.86 | $ 0.34 |
Diluted earnings per share (USD per share) | $ 0.71 | $ 0.29 |
Stock-based compensation expense by function: | ||
Stock-based compensation expense | $ 59,082 | $ 33,975 |
Cost of revenue | ||
Stock-based compensation expense by function: | ||
Stock-based compensation expense | 710 | 502 |
Selling and marketing expense | ||
Stock-based compensation expense by function: | ||
Stock-based compensation expense | 1,765 | 1,807 |
General and administrative expense | ||
Stock-based compensation expense by function: | ||
Stock-based compensation expense | 45,626 | 26,940 |
Product development expense | ||
Stock-based compensation expense by function: | ||
Stock-based compensation expense | $ 10,981 | $ 4,726 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 87,839 | $ 28,463 |
Other comprehensive income, net of tax: | ||
Change in foreign currency translation adjustment | 35,393 | 21,910 |
Change in unrealized gains and losses of available-for-sale securities (no tax benefit in 2017) | 0 | 2 |
Total other comprehensive income | 35,393 | 21,912 |
Comprehensive income, net of tax | 123,232 | 50,375 |
Components of comprehensive income attributable to noncontrolling interests: | ||
Net earnings attributable to noncontrolling interests | (16,757) | (2,254) |
Change in foreign currency translation adjustment attributable to noncontrolling interests | (7,036) | (3,134) |
Comprehensive income attributable to noncontrolling interests | (23,793) | (5,388) |
Comprehensive income attributable to IAC shareholders | $ 99,439 | $ 44,987 |
CONSOLIDATED STATEMENT OF COMP6
CONSOLIDATED STATEMENT OF COMPREHENSIVE OPERATIONS (Unaudited) (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Statement of Comprehensive Income [Abstract] | |
Tax benefit related to change in unrealized gains and losses of available-for-sale securities | $ 0 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Total IAC Shareholders' Equity | Common StockCommon Stock $.001 Par Value | Common StockClass B Convertible Common Stock $.001 Par Value | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interests | Redeemable Noncontrolling Interests | Match Group | Match GroupTotal IAC Shareholders' Equity | Match GroupAdditional Paid-in Capital | Match GroupAccumulated Other Comprehensive Loss | Match GroupNoncontrolling Interests | ANGI Homeservices | ANGI HomeservicesTotal IAC Shareholders' Equity | ANGI HomeservicesAdditional Paid-in Capital | ANGI HomeservicesAccumulated Other Comprehensive Loss | ANGI HomeservicesNoncontrolling Interests |
Increase (Decrease) in Shareholders' Equity | ||||||||||||||||||||
Cumulative effect of adoption of ASU No. 2014-09 | $ 40,205 | $ 36,795 | $ 36,795 | $ 3,410 | ||||||||||||||||
Balance at beginning of period at Dec. 31, 2017 | 42,867 | $ 42,867 | ||||||||||||||||||
Increase (Decrease) in Redeemable Noncontrolling Interests | ||||||||||||||||||||
Net (loss) earnings | (959) | |||||||||||||||||||
Other comprehensive income, net of tax | 579 | |||||||||||||||||||
Stock-based compensation expense | 410 | |||||||||||||||||||
Adjustment of redeemable noncontrolling interests to fair value | 3,403 | |||||||||||||||||||
Noncontrolling interests created in acquisitions | 787 | |||||||||||||||||||
Other | (12) | |||||||||||||||||||
Balance at end of period at Mar. 31, 2018 | 47,099 | $ 47,099 | ||||||||||||||||||
Balance at beginning of period at Dec. 31, 2017 | 2,946,823 | 2,430,028 | $ 261 | $ 16 | $ 12,165,002 | 595,038 | $ (103,568) | $ (10,226,721) | 516,795 | |||||||||||
Balance at beginning of period (shares) at Dec. 31, 2017 | 260,624,000 | 16,157,000 | ||||||||||||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||||||||||||
Net (loss) earnings | 88,798 | 71,082 | 71,082 | 17,716 | ||||||||||||||||
Other comprehensive income, net of tax | 34,814 | 28,357 | 28,357 | 6,457 | ||||||||||||||||
Stock-based compensation expense | 58,672 | 17,214 | 17,214 | 41,458 | ||||||||||||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes (in shares) | 772,000 | |||||||||||||||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes | 25,275 | 25,275 | 25,275 | |||||||||||||||||
Purchase of noncontrolling interests | (269) | (269) | ||||||||||||||||||
Adjustment of redeemable noncontrolling interests to fair value | (3,403) | (3,403) | (3,403) | |||||||||||||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes, and impact to noncontrolling interests | $ (110,043) | $ (111,457) | $ (111,721) | $ 264 | $ 1,414 | $ (1,143) | $ (1,941) | $ (1,938) | $ (3) | $ 798 | ||||||||||
Other | 2,662 | 2,577 | 2,577 | 85 | ||||||||||||||||
Balance at end of period at Mar. 31, 2018 | $ 3,082,391 | $ 2,494,527 | $ 261 | $ 16 | $ 12,093,006 | $ 702,915 | $ (74,950) | $ (10,226,721) | $ 587,864 | |||||||||||
Balance at end of period (shares) at Mar. 31, 2018 | 261,396,000 | 16,157,000 |
CONSOLIDATED STATEMENT OF SHAR8
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) | Mar. 31, 2018$ / shares |
Common Stock $.001 Par Value | |
Par value of common stock (USD per share) | $ 0.001 |
Class B Convertible Common Stock $.001 Par Value | |
Par value of common stock (USD per share) | 0.001 |
Common Stock | Common Stock $.001 Par Value | |
Par value of common stock (USD per share) | 0.01 |
Common Stock | Class B Convertible Common Stock $.001 Par Value | |
Par value of common stock (USD per share) | $ 0.01 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net earnings | $ 87,839 | $ 28,463 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Stock-based compensation expense | 59,082 | 33,975 |
Depreciation | 19,257 | 19,888 |
Amortization of intangibles | 19,953 | 9,161 |
Deferred income taxes | (31,895) | 3,717 |
Bad debt expense | 9,528 | 6,241 |
Other adjustments, net | 13,726 | 10,038 |
Changes in assets and liabilities, net of effects of acquisitions and dispositions: | ||
Accounts receivable | (29,901) | (13,924) |
Other assets | (22,680) | (15,873) |
Accounts payable and other liabilities | (7,592) | 14,872 |
Income taxes payable and receivable | (7,034) | (38,610) |
Deferred revenue | 41,725 | 9,915 |
Net cash provided by operating activities | 152,008 | 67,863 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | (21,295) | (52,365) |
Capital expenditures | (14,801) | (11,157) |
Proceeds from maturities and sales of marketable debt securities | 5,000 | 75,350 |
Purchases of marketable debt securities | (4,975) | (19,926) |
Purchases of investments | (18,180) | (29) |
Net proceeds from the sale of businesses and investments | 15 | 97,496 |
Other, net | 9,347 | 213 |
Net cash (used in) provided by investing activities | (44,889) | 89,582 |
Cash flows from financing activities: | ||
Purchase of noncontrolling interests | (234) | (12,259) |
Acquisition-related contingent consideration payments | (185) | (3,860) |
Other, net | 2,476 | 250 |
Net cash used in financing activities | (83,150) | (119,180) |
Total cash provided | 23,969 | 38,265 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 2,746 | 4,002 |
Net increase in cash, cash equivalents, and restricted cash | 26,715 | 42,267 |
Cash, cash equivalents, and restricted cash at beginning of period | 1,633,682 | 1,360,199 |
Cash, cash equivalents, and restricted cash at end of period | 1,660,397 | 1,402,466 |
ANGI Homeservices | ||
Cash flows from financing activities: | ||
Principal payment on debt | (3,438) | 0 |
Match Group | ||
Cash flows from financing activities: | ||
Purchase of treasury stock | (32,465) | 0 |
IAC/InterActiveCorp | ||
Cash flows from financing activities: | ||
Principal payment on debt | 0 | (26,590) |
Purchase of treasury stock | (56,424) | |
Proceeds from the exercise of stock options | 24,254 | 13,252 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | (282) | (38,579) |
Match Group and ANGI Homeservices | ||
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 1,752 | 7,111 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | $ (75,028) | $ (2,081) |
THE COMPANY AND SUMMARY OF SIGN
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations IAC is a leading media and Internet company composed of widely known consumer brands, such as Match, Tinder, PlentyOfFish and OkCupid, which are part of Match Group's online dating portfolio, and HomeAdvisor and Angie's List, which are operated by ANGI Homeservices, as well as Vimeo, Dotdash, Dictionary.com, The Daily Beast and Investopedia. All references to "IAC," the "Company," "we," "our" or "us" in this report are to IAC/InterActiveCorp. As of March 31, 2018 , IAC’s economic and voting interest in Match Group were 80.9% , and 97.6% , respectively. All references to "Match Group" or "MTCH" are to Match Group, Inc. As of March 31, 2018 , IAC’s economic and voting interest in ANGI Homeservices were 86.8% , and 98.5% , respectively. All reference to "ANGI Homeservices" or "ANGI" in this report are to ANGI Homeservices Inc. 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 and are included in "Long-term investments" in the accompanying consolidated balance sheet. In management's opinion, the unaudited interim consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect all adjustments, consisting of normal and recurring adjustments, necessary for the fair presentation of our financial position, results of operations and cash flows for the periods presented. Interim results are not necessarily indicative of the results that may be expected for the full year. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. Accounting Estimates Management of the Company is required to make certain estimates, judgments and assumptions during the preparation of its consolidated financial statements in accordance with GAAP. These estimates, judgments and assumptions impact the reported amounts of assets, liabilities, revenue and expenses and the related disclosure of contingent assets and liabilities. Actual results could differ from these estimates. On an ongoing basis, the Company evaluates its estimates and judgments including those related to: the recoverability of goodwill and indefinite-lived intangible assets; the useful lives and recoverability of definite-lived intangible assets and property and equipment; the fair values of marketable securities and long-term investments; the carrying value of accounts receivable, including the determination of the allowance for doubtful accounts; the determination of revenue reserves; the fair value of acquisition-related contingent consideration arrangements; 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. Certain Risks and Concentrations A meaningful 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 Inc. ("Google"). For the three months ended March 31, 2018 and 2017 , revenue from Google represents 21% and 25% , respectively, of the Company's consolidated revenue. The services agreement became effective on April 1, 2016, following the expiration of the previous services agreement, and expires on March 31, 2020; however, the Company may choose to terminate the agreement effective March 31, 2019. The services agreement requires that the Company comply with certain guidelines promulgated by Google. Google may generally unilaterally update its policies and guidelines without advance notice, which could in turn 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 three months ended March 31, 2018 and 2017 , revenue earned from Google was $211.3 million and $187.8 million , respectively. This revenue is earned principally by the businesses comprising the Applications and Publishing segments. For the three months ended March 31, 2018 and 2017 , revenue earned from Google represents 82% and 84% , respectively, of Applications revenue and 76% and 70% , respectively, of Publishing revenue. Accounts receivable related to revenue earned from Google totaled $79.2 million and $72.4 million at March 31, 2018 and December 31, 2017 , respectively. Recent Accounting Pronouncements Accounting Pronouncements adopted by the Company In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers . ASU No. 2014-09 supersedes nearly all existing revenue recognition guidance under GAAP. The Company adopted ASU No. 2014-09 effective January 1, 2018 using the modified retrospective transition method for open contracts as of the date of initial application. The cumulative impact to the Company's retained earnings at January 1, 2018 was $40.2 million , of which $3.4 million was related to the Company's noncontrolling interest in ANGI; the adjustment to retained earnings was principally related to the Company’s ANGI Homeservices and Applications segments. • Within ANGI, the effect of the adoption of ASU No. 2014-09 is that commissions paid to employees pursuant to certain sales incentive programs, which represent the incremental direct costs of obtaining a service professional contract, are now capitalized and amortized over the estimated life of a service professional (also referred to as the estimated customer relationship period). These costs were expensed as incurred prior to January 1, 2018. The cumulative effect of the adoption of ASU No. 2014-09 was the establishment of a current and non-current asset for capitalized sales commissions of $29.7 million and $4.2 million , respectively, and a related deferred tax liability of $8.0 million , resulting in a net increase to retained earnings of $25.9 million on January 1, 2018. • Within Applications, the primary effect of the adoption of ASU No. 2014-09 is to accelerate the recognition of the portion of the revenue of certain desktop applications sold by SlimWare that qualifies as functional intellectual property ("functional IP") under ASU No. 2014-09. This revenue was previously deferred and recognized over the applicable subscription term. The cumulative effect of the adoption of ASU No. 2014-09 for SlimWare was a reduction in deferred revenue of $20.3 million and the establishment of a deferred tax liability of $4.9 million , resulting in a net increase to retained earnings of $15.5 million on January 1, 2018. The adoption of ASU No. 2014-09 will not have a material effect on the Company’s results of operations for the year ending December 31, 2018. See " Note 2—Revenue Recognition " for additional information on the impact to the Company. The Company's disaggregated revenue disclosures are presented in " Note 10—Segment information ." The following tables provide the impact of the adoption of ASU No. 2014-09 by segment under Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers , as reported, and ASC 605, Revenue Recognition . Three Months Ended March 31, 2018 Under ASC 606 (as reported) Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Revenue by segment: Match Group $ 407,367 $ 407,367 $ — ANGI Homeservices 255,311 255,311 — Video 66,162 66,591 (429 ) Applications 131,987 131,517 470 Publishing 134,322 134,322 — Inter-segment eliminations (74 ) (74 ) — Total $ 995,075 $ 995,034 $ 41 Three Months Ended March 31, 2018 Under ASC 606 (as reported) Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Operating expense by segment: Match Group $ 295,134 $ 295,134 $ — ANGI Homeservices 266,067 272,160 (6,093 ) Video 82,037 82,264 (227 ) Applications 106,526 106,007 519 Publishing 118,511 118,511 — Corporate 36,850 36,850 — Total $ 905,125 $ 910,926 $ (5,801 ) Three Months Ended March 31, 2018 Under ASC 606 (as reported) Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Operating income (loss) by segment: Match Group $ 112,233 $ 112,233 $ — ANGI Homeservices (10,756 ) (16,849 ) 6,093 Video (15,875 ) (15,673 ) (202 ) Applications 25,461 25,510 (49 ) Publishing 15,811 15,811 — Corporate (36,924 ) (36,924 ) — Total $ 89,950 $ 84,108 $ 5,842 Three Months Ended March 31, 2018 Under ASC 606 (as reported) Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Net earnings $ 87,839 $ 83,517 $ 4,322 In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments, which updates certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Under ASU No. 2016-01, equity securities, other than equity method investments and investments in consolidated subsidiaries, will be measured at fair value with changes in fair value recognized in the statement of operations each reporting period. ASU No. 2016-01 is effective for reporting periods beginning after December 15, 2017. The Company's adoption of ASU No. 2016-01 effective January 1, 2018 did not have a material effect on its consolidated financial statements. The adoption of ASU No. 2016-01 may increase the volatility of the Company's results of operations as the result of the remeasurement of these instruments. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash , which requires companies to explain the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. Therefore, amounts generally described as restricted cash or restricted cash equivalents are combined with unrestricted cash and cash equivalents when reconciling the beginning and end of period balances on the statement of cash flows. ASU No. 2016-18 also requires companies to disclose the nature of their restricted cash and restricted cash equivalents balances. Additionally, when cash, cash equivalents, restricted cash, and restricted cash equivalents are presented within different captions on the balance sheet, a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet is required. ASU No. 2016-18 is effective for reporting periods beginning after December 15, 2017. The Company's adoption of ASU No. 2016-18 effective January 1, 2018, on a retrospective basis, did not have a material effect on its consolidated financial statements. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows: March 31, 2018 December 31, 2017 March 31, 2017 December 31, 2016 (In thousands) Cash and cash equivalents $ 1,657,537 $ 1,630,809 $ 1,397,038 $ 1,329,187 Restricted cash included in other current assets 2,860 2,873 5,428 20,464 Restricted cash included in other assets — — — 10,548 Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flows $ 1,660,397 $ 1,633,682 $ 1,402,466 $ 1,360,199 Restricted cash at March 31, 2018 and December 31, 2017 primarily supports a letter of credit to a supplier. Restricted cash at March 31, 2017 primarily included funds held in escrow for the redemption and repurchase of IAC Senior Notes, which settled in the second quarter of 2017. Restricted cash at December 31, 2016 primarily included funds held in escrow for the redemption and repurchase of IAC Senior Notes and the MyHammer tender offer. The Senior Notes were redeemed and repurchased and the funds held in escrow for the MyHammer tender offer were returned to the Company in the first quarter of 2017. Accounting Pronouncement not yet adopted by the Company In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which supersedes existing guidance on accounting for leases in "Leases (Topic 840)" and generally requires all leases to be recognized in the statement of financial position. The provisions of ASU No. 2016-02 are effective for reporting periods beginning after December 15, 2018; early adoption is permitted. The provisions of ASU No. 2016-02 are to be applied using a modified retrospective approach. The Company will adopt ASU No. 2016-02 effective January 1, 2019. In March 2018, the FASB affirmed its proposal to provide transition relief under the new lease standard. The effective date of the transition guidance is expected to coincide with the effective date of ASU No. 2016-02. Companies that elect the new transition option will not have to adjust their comparative period financial statements for the effects of the new lease standard, or make the new required lease disclosures for periods before the effective date. The Company is not a lessor, has no capitalized leases and does not expect to enter into any capitalized leases prior to the adoption of ASU No. 2016-02. Accordingly, the Company does not expect the amount or classification of rent expense in its statement of operations to be affected by the adoption of ASU No. 2016-02. The primary effect of the adoption of ASU No. 2016-02 will be the recognition of a right of use asset and related liability to reflect the Company's rights and obligations under its operating leases. The Company will also be required to provide the additional disclosures stipulated in ASU No. 2016-02. The adoption of ASU No. 2016-02 will not have an impact on the leverage calculation set forth in any of the agreements governing the outstanding debt of the Company or its MTCH and ANGI subsidiaries, or our credit agreement or the credit agreement of MTCH because, in each circumstance, the leverage calculations are not affected by the liability that will be recorded upon adoption of the new standard. While the Company's evaluation of the impact of the adoption of ASU No. 2016-02 on its consolidated financial statements continues, outlined below is a summary of the status of the Company's progress: • the Company has selected a software package to assist in the determination of the right of use asset and related liability as of January 1, 2019 and to provide the required information following the adoption; • the Company has prepared summaries of its leases for input into the software package; • the Company is assessing the other inputs required in connection with the adoption of ASU No. 2016-02; and • the Company is developing its accounting policy, procedures and controls related to the new standard. The Company does not expect to have a preliminary estimate of the right of use asset and related liability as of the adoption date until the third quarter of 2018. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION General Revenue Recognition The Company accounts for a contract when it has approval and commitment from all parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when control of the promised services or goods is transferred to our customers, and in an amount that reflects the consideration the Company is contractually due in exchange for those services or goods. Match Group Match Group’s revenue is primarily derived directly from users in the form of recurring subscriptions. Subscription revenue is presented net of credits and credit card chargebacks. Subscribers pay in advance, primarily by credit card or through mobile app stores, and, subject to certain conditions identified in our terms and conditions, generally all purchases are final and nonrefundable. Revenue is initially deferred and is recognized using the straight-line method over the term of the applicable subscription period, which primarily range from one to six months. Revenue is also earned from online advertising, the purchase of à la carte features and offline events. Online advertising revenue is recognized when an advertisement is displayed. Revenue from the purchase of à la carte features is recognized based on usage. Revenue associated with offline events is recognized when each event occurs. ANGI Homeservices ANGI revenue is primarily derived from (i) consumer connection revenue, which comprises fees paid by service professionals for consumer matches (regardless of whether the professional ultimately provides the requested service), and (ii) membership subscription fees paid by service professionals. Consumer connection revenue varies based upon several factors, including the service requested, type of match and geographic location of service. The Company’s consumer connection revenue is generated and recognized when an in-network service professional is delivered a consumer match. Membership subscription revenue from service professionals is initially deferred and is recognized using the straight-line method over the applicable subscription period, which is typically one year. Consumer connection revenue is generally billed one week following a consumer match; with payment due upon receipt of invoice. ANGI revenue is also derived from Angie's List (i) sales of time-based website, mobile and call center advertising to service professionals and (ii) membership subscription fees from consumers. Angie's List service professionals generally pay for advertisements in advance on a monthly or annual basis at the option of the service professional, with the average advertising contract term being approximately one year. Angie's List website, mobile and call center advertising revenue is recognized ratably over the contract term. Revenue from the sale of advertising in the Angie’s List Magazine is recognized in the period in which the publication is distributed. Angie's List prepaid consumer membership subscription fees are recognized as revenue using the straight-line method over the term of the applicable subscription period, which is typically one year. Video Revenue of businesses in this segment is generated primarily through subscriptions, media production and distribution, and advertising. Subscription fee revenue is recognized over the terms of the applicable subscription period, which are one month or one year, production revenue is recognized when control is transferred to the customer to broadcast or exhibit, and advertising revenue is recognized when an advertisement is displayed or over the advertising period. Applications Substantially all of Applications' revenue consists of advertising revenue generated principally through the display of paid listings in response to search queries. The substantial majority of the paid listings displayed by our Applications businesses are supplied to us by Google pursuant to our services agreement with Google. Pursuant to this agreement, those of our Applications businesses that provide search services transmit search queries to Google, which in turn transmits a set of relevant and responsive paid listings back to these businesses for display in search results. This ad-serving process occurs independently of, but concurrently with, the generation of algorithmic search results for the same search queries. Google paid listings are displayed separately from algorithmic search results and are identified as sponsored listings on search results pages. Paid listings are priced on a price per click basis and when a user submits a search query through one of our Applications businesses 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 us. 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, we recognize the amount due from Google as revenue and record a revenue share or other payment obligation to the third-party distributor as traffic acquisition costs. To a significantly lesser extent, Applications' revenue also consists of fees related to subscription downloadable desktop and mobile applications as well as display advertisements. Fees related to subscription downloadable desktop and paid mobile applications are generally recognized at the time of the sale when the software license is delivered. To the extent updates or maintenance is required or expected, revenue is recognized over the term of the applicable subscription period, which is primarily one or two years. Fees related to display advertisements are recognized when an advertisement is displayed. Publishing Publishing's revenue consists principally of advertising revenue, which is generated primarily through the display of paid listings in response to search queries and display advertisements (sold directly and through programmatic ad sales). The majority of the paid listings that our Publishing businesses display are supplied to us by Google in the manner and pursuant to the services agreement with Google, which is described above under " Applications. " Transaction Price The objective of determining the transaction price is to estimate the amount of consideration the Company is due in exchange for its services or goods, including amounts that are variable. The Company determines the total transaction price, including an estimate of any variable consideration, at contract inception and reassesses this estimate each reporting period. The Company excludes from the measurement of transaction price all taxes assessed by governmental authorities that are both (i) imposed on and concurrent with a specific revenue-producing transaction and (ii) collected from customers. Accordingly, such tax amounts are not included as a component of revenue or cost of revenue. For contracts that have an original duration of one year or less, the Company uses the practical expedient available under ASU No. 2014-09 applicable to such contracts and does not consider the time value of money. Accounts Receivables, net of allowance for doubtful accounts and revenue reserves Accounts receivable include amounts billed and currently due from customers. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of accounts receivables that will not be collected. The allowance for doubtful accounts is based upon a number of factors, including the length of time accounts receivable are past due, the Company’s previous loss history, the specific customer’s ability to pay its obligation and the condition of the general economy and the customer’s industry. Customer payments that are not collected in advance of the transfer of promised services or goods are generally due no later than 30 days from invoice date. The term between the Company issuance of an invoice and payment due date is not significant. The Company also maintains allowances to reserve for potential credits issued to consumers or other revenue adjustments. The amounts of these reserves are based primarily upon historical experience. Deferred Revenue Deferred revenue consists of advance payments that are received or due in advance of the Company's performance. The Company’s liabilities are reported on a contract by contract basis at the end of each reporting period. The Company generally classifies deferred revenue as current when the term of the applicable subscription period or expected completion of our performance obligation is one year or less. The deferred revenue balance as of January 1, 2018 is $332.2 million . During the three months ended March 31, 2018 , the Company recognized $217.8 million of revenue that was included in the deferred revenue balance as of January 1, 2018. The current and non-current deferred revenue balances at March 31, 2018 are $374.3 million and $1.8 million , respectively. Arrangements with Multiple Performance Obligations The Company’s contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. The Company generally determines standalone selling prices based on the prices charged to customers, which are directly observable or based on an estimate if not directly observable. For our multiple performance obligation arrangements that include functional intellectual property ("IP"), which comprise the downloadable apps and software of the Applications segment, the Company uses a residual approach to determine standalone selling prices for the functional IP. Assets Recognized from the Costs to Obtain a Contract with a Customer The Company has determined that certain costs, primarily commissions paid to employees pursuant to certain sales incentive programs and mobile app store fees, meet the requirements to be capitalized as a cost of obtaining a contract. Commissions paid to employees pursuant to certain sales incentive programs are amortized over the estimated customer relationship period. The Company calculates the estimated customer relationship period as the average customer life, which is based on historical data. When customer renewals are expected and the renewal commission is not commensurate with the initial commission, the average customer life includes renewal periods. For sales incentive programs where the customer relationship period is one year or less, the Company has elected the practical expedient to expense the costs as incurred. The Company generally capitalizes and amortizes mobile app store fees over the term of the applicable subscription. During the three months ended March 31, 2018 , the Company recognized expense of $75.1 million related to the amortization of these costs. The contract asset balance at March 31, 2018 is $68.0 million . Performance Obligations As permitted under the practical expedient available under ASU No. 2014-09, the Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts with variable consideration that is allocated entirely to unsatisfied performance obligations or to a wholly unsatisfied promise accounted for under the series guidance, and (iii) contracts for which the Company recognizes revenue at the amount which we have the right to invoice for services performed. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES At the end of each interim period, the Company makes its best estimate of the annual expected effective income tax rate and applies that rate to its ordinary year-to-date earnings or loss. The income tax provision or benefit related to significant, unusual, or extraordinary items, if applicable, that will be separately reported or reported net of their related tax effects are individually computed and recognized in the interim period in which they occur. In addition, the effect of changes in enacted tax laws or rates, tax status, judgment on the realizability of a beginning-of-the-year deferred tax asset in future years or the liabilities for uncertain tax positions is recognized in the interim period in which the change occurs. The computation of the annual expected effective income tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected pre-tax income (or loss) for the year, projections of the proportion of income (and/or loss) earned and taxed in foreign jurisdictions, permanent and temporary differences, and the likelihood of the realization of deferred tax assets generated in the current year. The accounting estimates used to compute the provision or benefit for income taxes may change as new events occur, more experience is acquired, additional information is obtained or our tax environment changes. To the extent that the expected annual effective income tax rate changes during a quarter, the effect of the change on prior quarters is included in income tax provision in the quarter in which the change occurs. For the three months ended March 31, 2018 and 2017 , the Company recorded an income tax benefit of $29.0 million and $23.9 million , respectively. The income tax benefits for the three months ended March 31, 2018 and 2017 are due primarily to excess tax benefits generated by the settlement and exercise of stock-based awards. On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act subjected to U.S. taxation certain previously deferred earnings of foreign subsidiaries as of December 31, 2017 (“Transition Tax”) and implemented a number of changes that took effect on January 1, 2018, including but not limited to, a reduction of the U.S. federal corporate tax rate from 35% to 21% and a new minimum tax on global intangible low-taxed income (“GILTI”) earned by foreign subsidiaries. The Company was able to make a reasonable estimate of the Transition Tax and recorded a provisional tax expense in the fourth quarter of 2017. The Company was also able to make a reasonable estimate of the impact of GILTI on the expected annual effective income tax rate and recorded a provisional tax expense in the first quarter of 2018. Any adjustment of the Company’s provisional tax expense will be reflected as a change in estimate in its results in the period in which the change in estimate is made in accordance with Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act , which is also included in the FASB issued ASU No. 2018-05, Income Taxes (Topic 740), Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, which was issued and adopted by the Company in March 2018. The Company is continuing to gather additional information to more precisely compute the amount of the Transition Tax and expects to finalize its calculation prior to the filing of its U.S. federal tax return, which is due on October 15, 2018. The additional information includes, but is not limited to, the allocation and sourcing of income and deductions in 2017 for purposes of calculating the utilization of foreign tax credits. In addition, our estimates may also be impacted and adjusted as the law is clarified and additional guidance is issued at the federal and state levels. No adjustment was made in the three months ended March 31, 2018 to the Company’s provisional tax expense as a result of the issuance of Treasury Notices 2018-26 and 2018-28 as we continue to assess their impact, which we believe is immaterial. The Company recognizes interest and, if applicable, penalties related to unrecognized tax benefits in the income tax provision. Accruals for interest and penalties are not material. 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. The statute of limitations for the years 2010 through 2012 has been extended to June 30, 2019, and the statute of limitations for the year 2013 has been extended to March 31, 2019. Various other jurisdictions are open to examination for tax years beginning with 2009. Income taxes payable include reserves considered sufficient to pay assessments that may result from examination of prior year tax returns. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. Although management currently believes changes to reserves from period to period and differences between amounts paid, if any, upon resolution of issues raised in audits and amounts previously provided will not have a material impact on the liquidity, results of operations, or financial condition of the Company, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. At March 31, 2018 and December 31, 2017 , unrecognized tax benefits, including interest and penalties, are $38.4 million and $39.7 million , respectively. If unrecognized tax benefits at March 31, 2018 are subsequently recognized, $35.9 million , net of related deferred tax assets and interest, would reduce income tax expense. The comparable amount as of December 31, 2017 was $37.2 million . The Company believes that it is reasonably possible that its unrecognized tax benefits could decrease by $2.0 million by March 31, 2019, due to expirations of statutes of limitations; all of which would reduce the income tax provision. The Company regularly assesses the realizability of deferred tax assets considering all available evidence including, among other things, the nature, frequency and severity of prior cumulative losses, forecasts of future taxable income, the duration of statutory carryforward periods, available tax planning and historical experience, to the extent these items are applicable. As of March 31, 2018 , the Company has a gross deferred tax asset of $147.5 million that the Company expects to fully utilize on a more likely than not basis. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | BUSINESS COMBINATION On September 29, 2017, the Company completed the combination of the businesses in the Company's HomeAdvisor segment and Angie's List under a new publicly traded company called ANGI Homeservices (the "Combination"). Through the Combination, ANGI acquired 100% of the common stock of Angie's List on September 29, 2017 for a total purchase price valued at $781.4 million . The unaudited pro forma financial information in the table below presents the combined results of the Company and Angie's List as if the Combination had occurred on January 1, 2016. The unaudited pro forma financial information includes adjustments required under the acquisition method of accounting and is presented for informational purposes only and is not necessarily indicative of the results that would have been achieved had the Combination actually occurred on January 1, 2016. For the three months ended March 31, 2017 , pro forma adjustments include increases in stock-based compensation expense of $14.7 million and amortization of intangibles of $11.5 million . Three Months Ended March 31, 2017 (In thousands, except per share data) Revenue $ 833,294 Net earnings attributable to IAC shareholders $ 13,339 Basic earnings per share attributable to IAC shareholders $ 0.17 Diluted earnings per share attributable to IAC shareholders $ 0.13 |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 3 Months Ended |
Mar. 31, 2018 | |
Marketable Securities [Abstract] | |
MARKETABLE SECURITIES | MARKETABLE SECURITIES At March 31, 2018 and December 31, 2017 , the fair value of marketable securities are as follows: March 31, 2018 December 31, 2017 (In thousands) Available-for-sale marketable debt securities $ 4,990 $ 4,995 Equity security with a readily determinable fair value 640 — Total marketable securities $ 5,630 $ 4,995 At March 31, 2018, current available-for-sale marketable debt securities are as follows: Amortized Gross Gross Fair Value (In thousands) Commercial paper $ 4,990 $ — $ — $ 4,990 Total available-for-sale marketable debt securities $ 4,990 $ — $ — $ 4,990 The contractual maturities of debt securities classified as current available-for-sale at March 31, 2018 are due within one year . There are no investments in available-for-sale marketable debt securities that are in an unrealized loss position as of March 31, 2018 . At March 31, 2018 , the cost basis of the equity security with a readily determinable fair value was $0.3 million . With the adoption of ASU No. 2016-01 on January 1, 2018, the unrealized gain of $0.3 million is included in "Other expense, net" in the accompanying consolidated statement of operations. At December 31, 2017 , current available-for-sale marketable debt securities are as follows: Amortized Gross Gross Fair Value (In thousands) Commercial paper $ 4,995 $ — $ — $ 4,995 Total available-for-sale marketable debt securities $ 4,995 $ — $ — $ 4,995 The following table presents the proceeds from maturities and sales of available-for-sale marketable debt securities: March 31, 2018 2017 (In thousands) Proceeds from maturities and sales of available-for-sale marketable debt securities $ 5,000 $ 75,350 The specific-identification method is used to determine the cost of available-for-sale marketable debt securities sold and the amount of unrealized gains and losses reclassified out of accumulated other comprehensive income (loss) into earnings. There were no gross realized gains or losses from the maturities and sales of available-for-sale marketable debt securities for the three months ended March 31, 2018 and 2017 . |
FAIR VALUE MEASUREMENTS AND FIN
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS | FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS The Company categorizes its financial instruments measured at fair value into a fair value hierarchy that prioritizes the inputs used in pricing the asset or liability. The three levels of the fair value hierarchy are: • Level 1: Observable inputs obtained from independent sources, such as quoted market prices for identical assets and liabilities in active markets. • Level 2: Other inputs, which are observable directly or indirectly, such as quoted market prices for similar assets or liabilities in active markets, quoted market prices for identical or similar assets or liabilities in markets that are not active and inputs that are derived principally from or corroborated by observable market data. The fair values of the Company's Level 2 financial assets are primarily obtained from observable market prices for identical underlying securities that may not be actively traded. Certain of these securities may have different market prices from multiple market data sources, in which case an average market price is used. • Level 3: Unobservable inputs for which there is little or no market data and require the Company to develop its own assumptions, based on the best information available in the circumstances, about the assumptions market participants would use in pricing the assets or liabilities. See below for a discussion of fair value measurements made using Level 3 inputs. The following tables present the Company's financial instruments that are measured at fair value on a recurring basis: March 31, 2018 Quoted Market Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Measurements (In thousands) Assets: Cash equivalents: Money market funds $ 762,064 $ — $ — $ 762,064 Time deposits — 85,038 — 85,038 Treasury discount notes 149,908 — — 149,908 Commercial paper — 217,342 — 217,342 Certificates of deposit — 4,797 — 4,797 Marketable securities: Commercial paper — 4,990 — 4,990 Equity security with a readily determinable fair value 640 — $ — 640 Total $ 912,612 $ 312,167 $ — $ 1,224,779 Liabilities: Contingent consideration arrangements $ — $ — $ (1,965 ) $ (1,965 ) December 31, 2017 Quoted Market Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Measurements (In thousands) Assets: Cash equivalents: Money market funds $ 780,425 $ — $ — $ 780,425 Time deposits — 60,000 — 60,000 Treasury discount notes 100,457 — — 100,457 Commercial paper — 215,325 — 215,325 Certificates of deposit — 6,195 — 6,195 Marketable securities: Commercial paper — 4,995 — 4,995 Total $ 880,882 $ 286,515 $ — $ 1,167,397 Liabilities: Contingent consideration arrangements $ — $ — $ (2,647 ) $ (2,647 ) 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): Contingent Consideration Arrangements Three Months Ended March 31, 2018 2017 (In thousands) Balance at January 1 $ (2,647 ) $ (33,871 ) Total net losses: Included in earnings: Fair value adjustments (156 ) (1,891 ) Included in other comprehensive loss (110 ) (1,059 ) Settlements 948 15,000 Balance at March 31 $ (1,965 ) $ (21,821 ) Contingent Consideration Arrangements As of March 31, 2018 , there are three contingent consideration arrangements related to business acquisitions. Two 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 $32.1 million and the gross fair value of these arrangements, before the unamortized discount, at March 31, 2018 is $2.1 million . No payment is expected for the one contingent consideration arrangement without a limit on the maximum earnout. The contingent consideration arrangements are based upon earnings performance and/or operating metrics. The Company generally determines the fair value of the contingent consideration arrangements by using probability-weighted analyses to determine the amounts of the gross liability, and, because the arrangements were initially long-term in nature, applying a discount rate that appropriately captures the risks associated with the obligation to determine the net amount reflected in the consolidated financial statements. The fair values of the contingent consideration arrangements at both March 31, 2018 and December 31, 2017 reflect discount rates of 12% . The fair value of contingent consideration arrangements is 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, including the accretion of the discount, if applicable, and changes are recognized in “General and administrative expense” in the accompanying consolidated statement of operations. The contingent consideration arrangement liability at March 31, 2018 and December 31, 2017 includes a current portion of $2.0 million and $0.6 million , respectively, and non-current portion of $2.0 million at December 31, 2017 , which are included in “Accrued expenses and other current liabilities” and “Other long-term liabilities,” respectively, in the accompanying consolidated balance sheet. At March 31, 2018 , there is no non-current portion of the contingent consideration arrangement liability. Assets measured at fair value on a nonrecurring basis The Company's non-financial assets, such as goodwill, intangible assets and property and equipment, as well as equity method investments, are adjusted to fair value only when an impairment charge is recognized. Equity securities without readily determinable fair values are adjusted to fair value for observable price changes in orderly transactions for an identical or similar investment of the same issuer. Such fair value measurements are based predominantly on Level 3 inputs. Equity securities without readily determinable fair values At March 31, 2018 and December 31, 2017 , the carrying values of the Company's investments in equity securities without readily determinable fair values totaled $81.0 million and $63.4 million , respectively, and are included in "Long-term investments" in the accompanying consolidated balance sheet. The Company exercises reasonable effort to determine whether any observable price changes in orderly transactions for identical or similar investments in the same issuer have occurred. A similar investment will be considered identical or similar if it has identical or similar rights and obligations to the equity investments held by the Company. If such an orderly transaction has occurred, the Company will adjust the value of the equity investment in accordance with ASC 321, Investments — Equity Securities . During the three months ended March 31, 2018, the Company did not identify any transactions that resulted in adjustment to the carrying value of its equity securities without readily determinable fair values. 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: March 31, 2018 December 31, 2017 Carrying Fair Carrying Fair (In thousands) Current portion of long-term debt $ (14,120 ) $ (14,199 ) $ (13,750 ) $ (13,802 ) Long-term debt, net (1,980,579 ) (2,211,769 ) (1,979,469 ) (2,168,108 ) The fair value of long-term debt, including the current portion, is estimated using observable market prices or indices for similar liabilities, which are Level 2 inputs. |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consists of: March 31, 2018 December 31, 2017 (In thousands) MTCH Debt: MTCH Term Loan due November 16, 2022 $ 425,000 $ 425,000 6.375% Senior Notes due June 1, 2024 (the "6.375% MTCH Senior Notes"); interest payable each June 1 and December 1 400,000 400,000 5.00% Senior Notes due December 15, 2027 (the "5.00% MTCH Senior Notes"); interest payable each June 15 and December 15, which commences on June 15, 2018 450,000 450,000 Total MTCH long-term debt 1,275,000 1,275,000 Less: unamortized original issue discount 8,339 8,668 Less: unamortized debt issuance costs 13,219 13,636 Total MTCH debt, net 1,253,442 1,252,696 ANGI Debt: ANGI Term Loan due November 1, 2022 271,563 275,000 Less: current portion of ANGI Term Loan 13,750 13,750 Less: unamortized debt issuance costs 2,786 2,938 Total ANGI debt, net 255,027 258,312 IAC Debt: 0.875% Exchangeable Senior Notes due October 1, 2022 (the "Exchangeable Notes"); interest payable each April 1 and October 1, which commences on April 1, 2018 517,500 517,500 4.75% Senior Notes due December 15, 2022 (the "4.75% Senior Notes"); interest payable each June 15 and December 15 34,859 34,859 Total IAC long-term debt 552,359 552,359 Less: current portion of IAC long-term debt 370 — Less: unamortized original issue discount 63,922 67,158 Less: unamortized debt issuance costs 15,957 16,740 Total IAC debt, net 472,110 468,461 Total long-term debt, net $ 1,980,579 $ 1,979,469 MTCH Senior Notes The 6.375% MTCH Senior Notes were issued on June 1, 2016. The proceeds of $400 million were used to prepay a portion of indebtedness outstanding under the MTCH Term Loan. At any time prior to June 1, 2019, these notes may be redeemed at a redemption price equal to the sum of the principal amount thereof, plus accrued and unpaid interest and a make-whole premium. Thereafter, these notes may be redeemed at redemption prices set forth in the indenture governing the notes, together with accrued and unpaid interest thereon to the applicable redemption date. On December 4, 2017, MTCH issued $450 million aggregate principal amount of its 5.00% Senior Notes due December 15, 2027. The proceeds from these notes, along with cash on hand, were used to redeem the $445 million outstanding balance of the 6.75% MTCH Senior Notes, which were due on December 15, 2022, and pay the related call premium. At any time prior to December 15, 2022, the 5.00% MTCH Senior Notes may be redeemed at a redemption price equal to the sum of the principal amount thereof, plus accrued and unpaid interest and a make-whole premium. Thereafter, these notes may be redeemed at redemption prices set forth in the indenture governing the notes, together with accrued and unpaid interest thereon to the applicable redemption date. The indentures governing the 6.375% and 5.00% MTCH Senior Notes (i) contain covenants that would limit MTCH's ability to pay dividends or to make distributions and repurchase or redeem MTCH stock in the event a default has occurred or MTCH's leverage ratio (as defined in the indentures) exceeds 5.0 to 1.0 and (ii) are ranked equally with each other. At March 31, 2018, there were no limitations pursuant thereto. There are additional covenants that limit MTCH's ability and the ability of its subsidiaries to, among other things, (i) incur indebtedness, make investments, or sell assets in the event MTCH is not in compliance with certain ratios set forth in the indentures, and (ii) incur liens, enter into agreements restricting MTCH subsidiaries' ability to pay dividends, enter into transactions with affiliates and consolidate, merge or sell substantially all of their assets. MTCH Term Loan and MTCH Credit Facility At March 31, 2018 , the outstanding balance on the MTCH Term Loan was $425 million and the loan bears interest at 4.29% (LIBOR plus 2.50% ). The MTCH Term Loan provides for annual principal payments as part of an excess cash flow sweep provision, the amount of which, if any, is governed by the secured net leverage ratio contained in the credit agreement. Interest payments are due at least quarterly through the term of the loan. MTCH has a $500 million revolving credit facility (the "MTCH Credit Facility") that expires on October 7, 2020. At March 31, 2018 and December 31, 2017 , there were no outstanding borrowings under the MTCH Credit Facility. The annual commitment fee on undrawn funds based on the current leverage ratio is 30 basis points. Borrowings under the MTCH Credit Facility bear interest, at MTCH's option, at a base rate or LIBOR, in each case plus an applicable margin, which is determined by reference to a pricing grid based on MTCH's consolidated net leverage ratio. The terms of the MTCH Credit Facility require MTCH to maintain a consolidated net leverage ratio of not more than 5.0 to 1.0 and a minimum interest coverage ratio of not less than 2.5 to 1.0 (in each case as defined in the agreement). There are additional covenants under the MTCH Credit Facility and the MTCH Term Loan that limit the ability of MTCH and its subsidiaries to, among other things, incur indebtedness, pay dividends or make distributions. While the MTCH Term Loan remains outstanding, these same covenants under its credit agreement are generally more restrictive than the covenants that are applicable to the MTCH Credit Facility. Obligations under the MTCH Credit Facility and MTCH Term Loan are unconditionally guaranteed by certain MTCH wholly-owned domestic subsidiaries, and are also secured by the stock of certain MTCH domestic and foreign subsidiaries. The MTCH Term Loan and outstanding borrowings, if any, under the MTCH Credit Facility rank equally with each other, and have priority over the 6.375% and 5.00% MTCH Senior Notes to the extent of the value of the assets securing the borrowings under the MTCH credit agreement. ANGI Term Loan: At March 31, 2018 , the outstanding balance on the ANGI Term Loan was $271.6 million and the loan bears interest at LIBOR plus 2.00% , which is subject to change in future periods based on ANGI's consolidated net leverage ratio, or 3.78% . Interest payments are due at least quarterly through the term of the loan and quarterly principal payments of 1.25% of the original principal amount in the first three years, 2.5% in the fourth year and 3.75% in the fifth year are required. The terms of the ANGI Term Loan require ANGI to maintain a consolidated net leverage ratio of not more than 4.5 to 1.0 and a minimum interest coverage ratio of not less than 2.5 to 1.0 (in each case as defined in the credit agreement). There are additional covenants under the ANGI Term Loan that limit the ability of ANGI and its subsidiaries to, among other things, incur indebtedness, pay dividends or make distributions. The ANGI Term Loan is guaranteed by ANGI's wholly-owned material domestic subsidiaries and is secured by substantially all assets of ANGI and the guarantors, subject to certain exceptions. IAC Exchangeable Notes: On October 2, 2017, IAC FinanceCo, Inc., a direct, wholly-owned subsidiary of the Company, issued $517.5 million aggregate principal amount of its 0.875% Exchangeable Senior Notes due October 1, 2022 (the “Exchangeable Notes”). The Exchangeable Notes are guaranteed by the Company. Each $1,000 of principal of the Exchangeable Notes is exchangeable for 6.5713 shares of the Company's common stock, which is equivalent to an exchange price of approximately $152.18 per share, subject to adjustment upon the occurrence of specified events. Upon exchange, the Company has the right to settle the principal amount of Exchangeable Notes with any of the three following alternatives: (1) shares of our common stock, (2) cash or (3) a combination of cash and shares of our common stock. The Exchangeable Notes are exchangeable at any time prior to the close of business on the business day immediately preceding July 1, 2022 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on December 31, 2017 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days during the period of 30 consecutive trading days during the immediately preceding calendar quarter is greater than or equal to 130% of the exchange price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the exchange rate on each such trading day; (3) if the issuer calls the notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events as further described under the Indenture. On or after July 1, 2022 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may exchange all or any portion of their Exchangeable Notes regardless of the foregoing conditions. A portion of the net proceeds from the sale of the Exchangeable Notes of $499.5 million , after deducting fees and expenses, was used to pay the net premium of $50.7 million on the Exchangeable Note Hedge and Warrant (defined below). We separately account for the debt and the equity components of the Exchangeable Notes. Accordingly, the Company recorded a debt discount and corresponding increase to additional paid-in capital of $70.4 million , which is the fair value attributed to the exchange feature or equity component of the debt, on the date of issuance. The Company is amortizing the debt discount utilizing the effective interest method over the life of the Exchangeable Notes which increases the effective interest rate from its coupon rate of 0.875% to 3.88% . In connection with the debt offering, the Company purchased call options allowing the Company to purchase initially (subject to adjustment upon the occurrence of specified events) the entire 3.4 million shares that would be issuable upon the exchange of the Exchangeable Notes at approximately $152.18 per share (the "Exchangeable Note Hedge"), and sold warrants allowing the holder to purchase initially (subject to adjustment upon the occurrence of specified events) 3.4 million shares at $229.70 per share (the "Warrant"). The Exchangeable Note Hedge is expected to reduce the potential dilutive effect of the Company's common stock upon any exchange of notes and/or offset any cash payment IAC FinanceCo, Inc. is required to make in excess of the principal amount of the exchanged notes. The Warrants would separately have a dilutive effect on the Company's common stock to the extent that the market price per share of the Company common stock exceeds the applicable strike price of the Warrants. As of March 31, 2018 , the if-converted value of the Exchangeable Notes exceeds its principal amount by $14.3 million based on the Company's stock price on March 31, 2018 . The Company incurred cash and non-cash interest expense of $5.2 million for the three months ended March 31, 2018 , which includes amortization of debt issuance costs of $0.9 million . As of March 31, 2018 , the unamortized discount is $63.9 million resulting in a net carrying value of the liability component of $453.6 million . IAC Senior Notes The 4.75% Senior Notes were issued by IAC on December 21, 2012. These Notes are unconditionally guaranteed by certain wholly-owned domestic subsidiaries, which are designated as guarantor subsidiaries. See " Note 12—Guarantor and Non-Guarantor Financial Information " for financial information relating to guarantor and non-guarantor subsidiaries. The 4.75% Senior Notes may be redeemed at redemption prices set forth in the indenture governing the notes, together with accrued and unpaid interest thereon to the applicable redemption date. IAC Credit Facility IAC has a $300 million revolving credit facility (the "IAC Credit Facility") that expires October 7, 2020. At March 31, 2018 and December 31, 2017 , there were no outstanding borrowings under the IAC Credit Facility. The annual commitment fee on undrawn funds is currently 25 basis points, and is based on the leverage ratio (as defined in the agreement) most recently reported. Borrowings under the IAC Credit Facility bear interest, at the Company's option, at a base rate or LIBOR, in each case, plus an applicable margin, which is determined by reference to a pricing grid based on the Company's leverage ratio. The terms of the IAC Credit Facility require that the Company maintains a leverage ratio of not more than 3.25 to 1.0 and restrict our ability to incur additional indebtedness. Borrowings under the IAC Credit Facility are unconditionally guaranteed by substantially the same domestic subsidiaries that guarantee the 4.75% Senior Notes and are also secured by the stock of certain of our domestic and foreign subsidiaries. The 4.75% Senior Notes are subordinate to the outstanding borrowings under the IAC Credit Facility to the extent of the value of the assets securing such borrowings. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables present the components of accumulated other comprehensive (loss) income and items reclassified out of accumulated other comprehensive loss into earnings: For the three months ended March 31, 2018 , the Company's accumulated other comprehensive loss relates to foreign currency translation adjustments. Three Months Ended March 31, 2018 Accumulated Other Comprehensive (Loss) Income Balance as of January 1 $ (103,568 ) Other comprehensive income before reclassifications 28,479 Amounts reclassified to earnings 139 Net current period other comprehensive income 28,618 Balance as of March 31 $ (74,950 ) Three Months Ended March 31, 2017 Foreign Currency Translation Adjustment Unrealized Gains On Available-For-Sale Securities Accumulated Other Comprehensive (Loss) Income (In thousands) Balance as of January 1 $ (170,149 ) $ 4,026 $ (166,123 ) Other comprehensive income before reclassifications 18,062 2 18,064 Amounts reclassified to earnings 714 — 714 Net current period other comprehensive income 18,776 2 18,778 Balance as of March 31 $ (151,373 ) $ 4,028 $ (147,345 ) The amounts reclassified out of accumulated other comprehensive loss into earnings for the three months ended March 31, 2018 and 2017 relate to the liquidation of international subsidiaries. At March 31, 2018 and 2017 , there was no tax benefit or provision on the accumulated other comprehensive loss. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2018 | |
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: Three Months Ended March 31, 2018 2017 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator: Net earnings $ 87,839 $ 87,839 $ 28,463 $ 28,463 Net earnings attributable to noncontrolling interests (16,757 ) (16,757 ) (2,254 ) (2,254 ) Impact from public subsidiaries' dilutive securities (a) — (7,442 ) — (2,430 ) Net earnings attributable to IAC shareholders $ 71,082 $ 63,640 $ 26,209 $ 23,779 Denominator: Weighted average basic shares outstanding 82,983 82,983 78,193 78,193 Dilutive securities (a) (b) (c) (d) — 6,086 — 4,311 Denominator for earnings per share—weighted average shares (a) (b) (c) (d) 82,983 89,069 78,193 82,504 Earnings per share attributable to IAC shareholders: Earnings per share $ 0.86 $ 0.71 $ 0.34 $ 0.29 ________________________ (a) For the three months ended March 31, 2018, it is more dilutive for IAC to settle certain ANGI equity awards and MTCH to settle certain MTCH equity awards. For the three months ended March 31, 2017, it is more dilutive for MTCH to settle certain MTCH equity awards. The impact from ANGI’s dilutive securities is not applicable for periods prior to the Combination. (b) 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, warrants and subsidiary denominated equity, exchange of the Company's Exchangeable Notes and vesting of restricted stock units ("RSUs"). For the three months ended March 31, 2018 and 2017 , 6.8 million and 2.0 million potentially dilutive securities, respectively, are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. (c) Market-based awards and performance-based stock units (“PSUs”) are considered contingently issuable shares. Shares issuable upon exercise or vesting of market-based awards and PSUs are included in the denominator for earnings per share if (i) the applicable market or performance condition(s) has been met and (ii) the inclusion of the market-based awards and PSUs is dilutive for the respective reporting periods. For the three months ended March 31, 2018 and 2017 , 0.2 million and 0.4 million shares, respectively, underlying market-based awards and PSUs were excluded from the calculation of diluted earnings per share because the market or performance conditions had not been met. (d) It is the Company's intention to settle the Exchangeable Notes through a combination of cash, equal to the face amount of the notes, and shares; the Exchangeable Notes are only dilutive once the average price of IAC common stock for the period exceeds the approximate $152.18 per share exchange price per $1,000 principal amount of the Exchangeable Notes. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2018 | |
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. Three Months Ended March 31, 2018 2017 (In thousands) Revenue: Match Group $ 407,367 $ 298,764 ANGI Homeservices 255,311 150,745 Video 66,162 50,577 Applications 131,987 158,897 Publishing 134,322 78,080 Other (a) — 23,980 Inter-segment eliminations (74 ) (210 ) Total $ 995,075 $ 760,833 ___________________ (a) The 2017 results at the Other segment consists of the results of The Princeton Review prior its sale, which occurred on March 31, 2017. Three Months Ended March 31, 2018 2017 (In thousands) Operating Income (Loss): Match Group $ 112,233 $ 58,871 ANGI Homeservices (10,756 ) 1,388 Video (15,875 ) (15,589 ) Applications 25,461 32,768 Publishing 15,811 (5,788 ) Other — (5,621 ) Corporate (36,924 ) (28,969 ) Total $ 89,950 $ 37,060 Three Months Ended March 31, 2018 2017 (In thousands) Adjusted EBITDA: (b) Match Group $ 137,741 $ 86,231 ANGI Homeservices 36,640 10,212 Video (12,940 ) (14,732 ) Applications 26,752 34,933 Publishing 17,213 1,179 Other — (1,532 ) Corporate (17,008 ) (14,315 ) Total $ 188,398 $ 101,976 ________________________ (b) The Company's primary financial measure is Adjusted EBITDA, which is defined as operating income excluding: (1) stock-based compensation expense; (2) depreciation; and (3) acquisition-related items consisting of (i) amortization of intangible assets and impairments of goodwill and intangible assets, if applicable, 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, and this measure is one of the primary metrics on which our internal budgets are based and by which management is compensated. The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature. Adjusted EBITDA has certain limitations in that it does not take into account the impact to IAC's statement of operations of certain expenses. The following table presents the revenue of the Company's segments disaggregated by type of service: Three Months Ended March 31, 2018 2017 (In thousands) Match Group Direct revenue: North America $ 211,357 $ 175,328 International 181,380 112,424 Direct revenue 392,737 287,752 Indirect revenue (principally advertising revenue) 14,630 11,012 Total Match Group revenue $ 407,367 $ 298,764 ANGI Homeservices Marketplace: Consumer connection revenue (c) $ 149,060 $ 116,000 Membership subscription revenue 15,627 12,752 Other revenue 921 892 Marketplace revenue 165,608 129,644 Advertising & Other revenue (d) 70,418 8,428 North America 236,026 138,072 Consumer connection revenue (c) 14,367 8,465 Membership subscription revenue 4,671 4,006 Advertising and other revenue 247 202 Europe 19,285 12,673 Total ANGI Homeservices revenue $ 255,311 $ 150,745 Video Subscription revenue $ 34,343 $ 24,817 Media production and distribution revenue 20,048 20,933 Advertising and other revenue 11,771 4,827 Total Video revenue $ 66,162 $ 50,577 Applications Advertising revenue: Google advertising revenue $ 87,431 $ 105,098 Other 6,354 6,313 Advertising revenue 93,785 111,411 Subscription and other revenue 16,289 18,921 Consumer 110,074 130,332 Advertising revenue: Google advertising revenue 21,146 27,709 Other 731 783 Advertising revenue 21,877 28,492 Other revenue 36 73 Partnerships 21,913 28,565 Total Applications revenue $ 131,987 $ 158,897 Publishing Advertising revenue: Google advertising revenue $ 13,638 $ 9,789 Other 23,947 15,866 Advertising revenue 37,585 25,655 Other revenue 1,223 345 Premium Brands 38,808 26,000 Advertising revenue: Google advertising revenue 88,692 44,687 Other 6,613 7,205 Advertising revenue 95,305 51,892 Other revenue 209 188 Ask & Other 95,514 52,080 Total Publishing revenue $ 134,322 $ 78,080 _______________________________________________________________________________ (c) Fees paid by service professionals for consumer matches. (d) Includes Angie's List revenue from service professionals under contract for advertising and Angie's List membership subscription fees from consumers, as well as revenue from mHelpDesk, HomeStars and Felix. Revenue by geography is based on where the customer is located. Geographic information about revenue and long-lived assets is presented below: Three Months Ended March 31, 2018 2017 (In thousands) Revenue: United States $ 657,580 $ 548,598 All other countries 337,495 212,235 Total $ 995,075 $ 760,833 March 31, December 31, (In thousands) Long-lived assets (excluding goodwill and intangible assets): United States $ 272,881 $ 286,541 All other countries 28,984 28,629 Total $ 301,865 $ 315,170 The following tables reconcile operating income (loss) for the Company's reportable segments and net earnings attributable to IAC shareholders to Adjusted EBITDA: Three Months Ended March 31, 2018 Operating Income (Loss) Stock-Based Compensation Expense Depreciation Amortization of Intangibles Acquisition-related Contingent Consideration Fair Value Adjustments Adjusted EBITDA (In thousands) Match Group $ 112,233 $ 16,963 $ 8,147 $ 242 $ 156 $ 137,741 ANGI Homeservices (10,756 ) $ 24,906 $ 6,184 $ 16,306 $ — $ 36,640 Video (15,875 ) $ 131 $ 675 $ 2,129 $ — $ (12,940 ) Applications 25,461 $ — $ 755 $ 536 $ — $ 26,752 Publishing 15,811 $ — $ 662 $ 740 $ — $ 17,213 Other — $ — $ — $ — $ — $ — Corporate (36,924 ) $ 17,082 $ 2,834 $ — $ — $ (17,008 ) Operating income 89,950 Interest expense (26,505 ) Other expense, net (4,619 ) Earnings before income taxes 58,826 Income tax benefit 29,013 Net earnings 87,839 Net earnings attributable to noncontrolling interests (16,757 ) Net earnings attributable to IAC shareholders $ 71,082 Three Months Ended March 31, 2017 Operating Income (Loss) Stock-Based Compensation Expense Depreciation Amortization of Intangibles Acquisition-related Contingent Consideration Fair Value Adjustments Adjusted EBITDA (In thousands) Match Group $ 58,871 $ 18,024 $ 7,589 $ 403 $ 1,344 $ 86,231 ANGI Homeservices 1,388 $ 4,461 $ 2,996 $ 1,367 $ — $ 10,212 Video (15,589 ) $ — $ 544 $ 313 $ — $ (14,732 ) Applications 32,768 $ — $ 1,011 $ 606 $ 548 $ 34,933 Publishing (5,788 ) $ — $ 2,019 $ 4,948 $ — $ 1,179 Other (5,621 ) $ 1,729 $ 836 $ 1,524 $ — $ (1,532 ) Corporate (28,969 ) $ 9,761 $ 4,893 $ — $ — $ (14,315 ) Operating income 37,060 Interest expense (24,792 ) Other expense, net (7,714 ) Earnings before income taxes 4,554 Income tax benefit 23,909 Net earnings 28,463 Net earnings attributable to noncontrolling interests (2,254 ) Net earnings attributable to IAC shareholders $ 26,209 |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2018 | |
Loss Contingency [Abstract] | |
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—Income Taxes " for additional information related to income tax contingencies. |
GUARANTOR AND NON-GUARANTOR FIN
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION | 3 Months Ended |
Mar. 31, 2018 | |
Guarantor and Nonguarantor Financial Statements [Abstract] | |
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION | GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION The 4.75% 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 March 31, 2018 and December 31, 2017 and for the three months ended March 31, 2018 and 2017 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 March 31, 2018: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Cash and cash equivalents $ 895,406 $ — $ 762,131 $ — $ 1,657,537 Marketable securities 4,990 — 640 — 5,630 Accounts receivable, net of allowance — 113,977 211,286 — 325,263 Other current assets 46,576 26,567 161,359 — 234,502 Intercompany receivables — 994,153 — (994,153 ) — Property and equipment, net of accumulated depreciation and amortization 2,457 171,681 127,727 — 301,865 Goodwill — 412,010 2,189,200 — 2,601,210 Intangible assets, net of accumulated amortization — 74,343 578,862 — 653,205 Investment in subsidiaries 1,789,479 300,030 — (2,089,509 ) — Other non-current assets 226,063 87,067 84,436 (145,804 ) 251,762 Total assets $ 2,964,971 $ 2,179,828 $ 4,115,641 $ (3,229,466 ) $ 6,030,974 Current portion of long-term debt $ 370 $ — $ 13,750 $ — $ 14,120 Accounts payable, trade 1,509 35,916 42,163 — 79,588 Other current liabilities 22,053 88,329 625,403 — 735,785 Long-term debt, net 34,216 — 1,946,363 — 1,980,579 Income taxes payable 12 1,528 22,536 — 24,076 Intercompany liabilities 411,831 — 582,322 (994,153 ) — Other long-term liabilities 453 17,432 195,255 (145,804 ) 67,336 Redeemable noncontrolling interests — — 47,099 — 47,099 IAC shareholders' equity 2,494,527 2,036,623 52,886 (2,089,509 ) 2,494,527 Noncontrolling interests — — 587,864 — 587,864 Total liabilities and shareholders' equity $ 2,964,971 $ 2,179,828 $ 4,115,641 $ (3,229,466 ) $ 6,030,974 Balance sheet at December 31, 2017: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Cash and cash equivalents $ 585,639 $ — $ 1,045,170 $ — $ 1,630,809 Marketable securities 4,995 — — — 4,995 Accounts receivable, net of allowance 31 109,289 194,707 — 304,027 Other current assets 49,159 33,387 102,828 — 185,374 Intercompany receivables — 668,703 — (668,703 ) — Property and equipment, net of accumulated depreciation and amortization 2,811 174,323 138,036 — 315,170 Goodwill — 412,010 2,147,056 — 2,559,066 Intangible assets, net of accumulated amortization — 74,852 588,885 — 663,737 Investment in subsidiaries 2,076,004 554,998 — (2,631,002 ) — Other non-current assets 170,073 87,306 79,688 (132,435 ) 204,632 Total assets $ 2,888,712 $ 2,114,868 $ 4,296,370 $ (3,432,140 ) $ 5,867,810 Current portion of long-term debt $ — $ — $ 13,750 $ — $ 13,750 Accounts payable, trade 5,163 30,469 40,939 — 76,571 Other current liabilities 29,489 88,050 591,868 — 709,407 Long-term debt, net 34,572 — 1,944,897 — 1,979,469 Income taxes payable 16 1,605 24,003 — 25,624 Intercompany liabilities 388,933 — 279,770 (668,703 ) — Other long-term liabilities 511 18,613 186,610 (132,435 ) 73,299 Redeemable noncontrolling interests — — 42,867 — 42,867 IAC shareholders' equity 2,430,028 1,976,131 654,871 (2,631,002 ) 2,430,028 Noncontrolling interests — — 516,795 — 516,795 Total liabilities and shareholders' equity $ 2,888,712 $ 2,114,868 $ 4,296,370 $ (3,432,140 ) $ 5,867,810 Statement of operations for the three months ended March 31, 2018: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Revenue $ — $ 212,889 $ 782,260 $ (74 ) $ 995,075 Operating costs and expenses: Cost of revenue (exclusive of depreciation shown separately below) 76 56,224 145,712 (50 ) 201,962 Selling and marketing expense 213 90,138 312,526 (45 ) 402,832 General and administrative expense 31,409 15,381 137,373 21 184,184 Product development expense 652 14,269 62,016 — 76,937 Depreciation 266 3,340 15,651 — 19,257 Amortization of intangibles — 509 19,444 — 19,953 Total operating costs and expenses 32,616 179,861 692,722 (74 ) 905,125 Operating (loss) income (32,616 ) 33,028 89,538 — 89,950 Equity in earnings of unconsolidated affiliates 102,750 (327 ) — (102,423 ) — Interest expense (429 ) — (26,076 ) — (26,505 ) Other (expense) income, net (a) (16,847 ) 286,883 2,190 (276,845 ) (4,619 ) Earnings before income taxes 52,858 319,584 65,652 (379,268 ) 58,826 Income tax benefit (provision) 18,224 (10,966 ) 21,755 — 29,013 Net earnings 71,082 308,618 87,407 (379,268 ) 87,839 Net earnings attributable to noncontrolling interests — — (16,757 ) — (16,757 ) Net earnings attributable to IAC shareholders 71,082 $ 308,618 $ 70,650 $ (379,268 ) $ 71,082 Comprehensive income attributable to IAC shareholders $ 99,439 $ 308,961 $ 105,327 $ (414,288 ) $ 99,439 (a) During the three months ended March 31, 2018, foreign cash of $276 million was repatriated to the U.S. Statement of operations for the three months ended March 31, 2017: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Revenue $ — $ 181,572 $ 579,474 $ (213 ) $ 760,833 Operating costs and expenses: Cost of revenue (exclusive of depreciation shown separately below) 113 32,708 113,310 (173 ) 145,958 Selling and marketing expense 326 91,950 258,189 (54 ) 350,411 General and administrative expense 26,136 15,590 101,855 14 143,595 Product development expense 570 15,387 38,803 — 54,760 Depreciation 438 7,133 12,317 — 19,888 Amortization of intangibles — 5,085 4,076 — 9,161 Total operating costs and expenses 27,583 167,853 528,550 (213 ) 723,773 Operating (loss) income (27,583 ) 13,719 50,924 — 37,060 Equity in earnings (losses) of unconsolidated affiliates 51,456 (2,683 ) — (48,773 ) — Interest expense (5,828 ) — (18,964 ) — (24,792 ) Other (expense) income, net (5,805 ) 6,091 (8,000 ) — (7,714 ) Earnings before income taxes 12,240 17,127 23,960 (48,773 ) 4,554 Income tax benefit (provision) 13,969 (9,689 ) 19,629 — 23,909 Net earnings 26,209 7,438 43,589 (48,773 ) 28,463 Net earnings attributable to noncontrolling interests — — (2,254 ) — (2,254 ) Net earnings attributable to IAC shareholders $ 26,209 $ 7,438 $ 41,335 $ (48,773 ) $ 26,209 Comprehensive income attributable to IAC shareholders $ 44,987 $ 11,491 $ 63,768 $ (75,259 ) $ 44,987 Statement of cash flows for the three months ended March 31, 2018: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Net cash provided by (used in) operating activities $ 1,562 $ 319,686 $ 107,605 $ (276,845 ) $ 152,008 Cash flows from investing activities: Acquisitions, net of cash acquired (4,134 ) — (17,161 ) — (21,295 ) Capital expenditures — (570 ) (14,231 ) — (14,801 ) Proceeds from maturities and sales of marketable debt securities 5,000 — — — 5,000 Purchases of marketable debt securities (4,975 ) — — — (4,975 ) Purchases of investments (18,180 ) — — — (18,180 ) Net proceeds from the sale of businesses and investments — — 15 — 15 Other, net (5,000 ) 3,884 10,463 — 9,347 Net cash (used in) provided by investing activities (27,289 ) 3,314 (20,914 ) — (44,889 ) Cash flows from financing activities: Principal payment on ANGI Homeservices debt — — (3,438 ) — (3,438 ) Purchase of Match Group treasury stock — — (32,465 ) — (32,465 ) Proceeds from the exercise of IAC stock options 24,254 — — — 24,254 Proceeds from the exercise of Match Group and ANGI Homeservices stock options — — 1,752 — 1,752 Withholding taxes paid on behalf of IAC employees on net settled stock-based awards (282 ) — — — (282 ) Withholding taxes paid on behalf of Match Group and ANGI Homeservices employees on net settled stock-based awards — — (75,028 ) — (75,028 ) Purchase of noncontrolling interests — — (234 ) — (234 ) Acquisition-related contingent consideration payments — — (185 ) — (185 ) Intercompany 308,822 (323,000 ) (262,667 ) 276,845 — Other, net 2,674 — (198 ) — 2,476 Net cash provided by (used in) financing activities 335,468 (323,000 ) (372,463 ) 276,845 (83,150 ) Total cash provided (used) 309,741 — (285,772 ) — 23,969 Effect of exchange rate changes on cash, cash equivalents, and restricted cash 26 — 2,720 — 2,746 Net increase (decrease) in cash, cash equivalents, and restricted cash 309,767 — (283,052 ) — 26,715 Cash, cash equivalents, and restricted cash at beginning of period 585,639 — 1,048,043 — 1,633,682 Cash, cash equivalents, and restricted cash at end of period $ 895,406 $ — $ 764,991 $ — $ 1,660,397 Statement of cash flows for the three months ended March 31, 2017: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Net cash (used in) provided by operating activities $ (18,973 ) $ 18,406 $ 68,430 $ — $ 67,863 Cash flows from investing activities: Acquisitions, net of cash acquired — — (52,365 ) — (52,365 ) Capital expenditures (87 ) (852 ) (10,218 ) — (11,157 ) Proceeds from maturities and sales of marketable debt securities 75,350 — — — 75,350 Purchases of marketable debt securities (19,926 ) — — — (19,926 ) Purchases of investments — — (29 ) — (29 ) Net proceeds from the sale of businesses and investments — — 97,496 — 97,496 Intercompany (10,671 ) — — 10,671 — Other, net — 31 182 — 213 Net cash provided by (used in) investing activities 44,666 (821 ) 35,066 10,671 89,582 Cash flows from financing activities: Principal payments on IAC debt (26,590 ) — — — (26,590 ) Purchase of IAC treasury stock (56,424 ) — — — (56,424 ) Proceeds from the exercise of IAC stock options 13,252 — — — 13,252 Proceeds from the exercise of Match Group stock options — — 7,111 — 7,111 Withholding taxes paid on behalf of IAC employees on net settled stock-based awards (38,579 ) — — — (38,579 ) Withholding taxes paid on behalf of Match Group employees on net settled stock-based awards — — (2,081 ) — (2,081 ) Purchase of noncontrolling interests — — (12,259 ) — (12,259 ) Acquisition-related contingent consideration payments — — (3,860 ) — (3,860 ) Intercompany 17,585 (17,585 ) 10,671 (10,671 ) — Other, net 251 — (1 ) — 250 Net cash used in financing activities (90,505 ) (17,585 ) (419 ) (10,671 ) (119,180 ) Total cash (used) provided (64,812 ) — 103,077 — 38,265 Effect of exchange rate changes on cash, cash equivalents, and restricted cash 10 — 3,992 — 4,002 Net (decrease) increase in cash, cash equivalents, and restricted cash (64,802 ) — 107,069 — 42,267 Cash, cash equivalents, and restricted cash at beginning of period 573,784 — 786,415 — 1,360,199 Cash, cash equivalents, and restricted cash at end of period $ 508,982 $ — $ 893,484 $ — $ 1,402,466 |
THE COMPANY AND SUMMARY OF SI22
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 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 | 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 and are included in "Long-term investments" in the accompanying consolidated balance sheet. In management's opinion, the unaudited interim consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect all adjustments, consisting of normal and recurring adjustments, necessary for the fair presentation of our financial position, results of operations and cash flows for the periods presented. Interim results are not necessarily indicative of the results that may be expected for the full year. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. |
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 these estimates. On an ongoing basis, the Company evaluates its estimates and judgments including those related to: the recoverability of goodwill and indefinite-lived intangible assets; the useful lives and recoverability of definite-lived intangible assets and property and equipment; the fair values of marketable securities and long-term investments; the carrying value of accounts receivable, including the determination of the allowance for doubtful accounts; the determination of revenue reserves; the fair value of acquisition-related contingent consideration arrangements; 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. |
Certain Risks and Concentrations | Certain Risks and Concentrations A meaningful 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 Inc. ("Google"). For the three months ended March 31, 2018 and 2017 , revenue from Google represents 21% and 25% , respectively, of the Company's consolidated revenue. The services agreement became effective on April 1, 2016, following the expiration of the previous services agreement, and expires on March 31, 2020; however, the Company may choose to terminate the agreement effective March 31, 2019. The services agreement requires that the Company comply with certain guidelines promulgated by Google. Google may generally unilaterally update its policies and guidelines without advance notice, which could in turn 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements adopted by the Company In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers . ASU No. 2014-09 supersedes nearly all existing revenue recognition guidance under GAAP. The Company adopted ASU No. 2014-09 effective January 1, 2018 using the modified retrospective transition method for open contracts as of the date of initial application. The cumulative impact to the Company's retained earnings at January 1, 2018 was $40.2 million , of which $3.4 million was related to the Company's noncontrolling interest in ANGI; the adjustment to retained earnings was principally related to the Company’s ANGI Homeservices and Applications segments. • Within ANGI, the effect of the adoption of ASU No. 2014-09 is that commissions paid to employees pursuant to certain sales incentive programs, which represent the incremental direct costs of obtaining a service professional contract, are now capitalized and amortized over the estimated life of a service professional (also referred to as the estimated customer relationship period). These costs were expensed as incurred prior to January 1, 2018. The cumulative effect of the adoption of ASU No. 2014-09 was the establishment of a current and non-current asset for capitalized sales commissions of $29.7 million and $4.2 million , respectively, and a related deferred tax liability of $8.0 million , resulting in a net increase to retained earnings of $25.9 million on January 1, 2018. • Within Applications, the primary effect of the adoption of ASU No. 2014-09 is to accelerate the recognition of the portion of the revenue of certain desktop applications sold by SlimWare that qualifies as functional intellectual property ("functional IP") under ASU No. 2014-09. This revenue was previously deferred and recognized over the applicable subscription term. The cumulative effect of the adoption of ASU No. 2014-09 for SlimWare was a reduction in deferred revenue of $20.3 million and the establishment of a deferred tax liability of $4.9 million , resulting in a net increase to retained earnings of $15.5 million on January 1, 2018. The adoption of ASU No. 2014-09 will not have a material effect on the Company’s results of operations for the year ending December 31, 2018. See " Note 2—Revenue Recognition " for additional information on the impact to the Company. The Company's disaggregated revenue disclosures are presented in " Note 10—Segment information ." The following tables provide the impact of the adoption of ASU No. 2014-09 by segment under Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers , as reported, and ASC 605, Revenue Recognition . Three Months Ended March 31, 2018 Under ASC 606 (as reported) Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Revenue by segment: Match Group $ 407,367 $ 407,367 $ — ANGI Homeservices 255,311 255,311 — Video 66,162 66,591 (429 ) Applications 131,987 131,517 470 Publishing 134,322 134,322 — Inter-segment eliminations (74 ) (74 ) — Total $ 995,075 $ 995,034 $ 41 Three Months Ended March 31, 2018 Under ASC 606 (as reported) Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Operating expense by segment: Match Group $ 295,134 $ 295,134 $ — ANGI Homeservices 266,067 272,160 (6,093 ) Video 82,037 82,264 (227 ) Applications 106,526 106,007 519 Publishing 118,511 118,511 — Corporate 36,850 36,850 — Total $ 905,125 $ 910,926 $ (5,801 ) Three Months Ended March 31, 2018 Under ASC 606 (as reported) Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Operating income (loss) by segment: Match Group $ 112,233 $ 112,233 $ — ANGI Homeservices (10,756 ) (16,849 ) 6,093 Video (15,875 ) (15,673 ) (202 ) Applications 25,461 25,510 (49 ) Publishing 15,811 15,811 — Corporate (36,924 ) (36,924 ) — Total $ 89,950 $ 84,108 $ 5,842 Three Months Ended March 31, 2018 Under ASC 606 (as reported) Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Net earnings $ 87,839 $ 83,517 $ 4,322 In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments, which updates certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Under ASU No. 2016-01, equity securities, other than equity method investments and investments in consolidated subsidiaries, will be measured at fair value with changes in fair value recognized in the statement of operations each reporting period. ASU No. 2016-01 is effective for reporting periods beginning after December 15, 2017. The Company's adoption of ASU No. 2016-01 effective January 1, 2018 did not have a material effect on its consolidated financial statements. The adoption of ASU No. 2016-01 may increase the volatility of the Company's results of operations as the result of the remeasurement of these instruments. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash , which requires companies to explain the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. Therefore, amounts generally described as restricted cash or restricted cash equivalents are combined with unrestricted cash and cash equivalents when reconciling the beginning and end of period balances on the statement of cash flows. ASU No. 2016-18 also requires companies to disclose the nature of their restricted cash and restricted cash equivalents balances. Additionally, when cash, cash equivalents, restricted cash, and restricted cash equivalents are presented within different captions on the balance sheet, a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet is required. ASU No. 2016-18 is effective for reporting periods beginning after December 15, 2017. The Company's adoption of ASU No. 2016-18 effective January 1, 2018, on a retrospective basis, did not have a material effect on its consolidated financial statements. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows: March 31, 2018 December 31, 2017 March 31, 2017 December 31, 2016 (In thousands) Cash and cash equivalents $ 1,657,537 $ 1,630,809 $ 1,397,038 $ 1,329,187 Restricted cash included in other current assets 2,860 2,873 5,428 20,464 Restricted cash included in other assets — — — 10,548 Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flows $ 1,660,397 $ 1,633,682 $ 1,402,466 $ 1,360,199 Restricted cash at March 31, 2018 and December 31, 2017 primarily supports a letter of credit to a supplier. Restricted cash at March 31, 2017 primarily included funds held in escrow for the redemption and repurchase of IAC Senior Notes, which settled in the second quarter of 2017. Restricted cash at December 31, 2016 primarily included funds held in escrow for the redemption and repurchase of IAC Senior Notes and the MyHammer tender offer. The Senior Notes were redeemed and repurchased and the funds held in escrow for the MyHammer tender offer were returned to the Company in the first quarter of 2017. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. |
THE COMPANY AND SUMMARY OF SI23
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following tables provide the impact of the adoption of ASU No. 2014-09 by segment under Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers , as reported, and ASC 605, Revenue Recognition . Three Months Ended March 31, 2018 Under ASC 606 (as reported) Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Revenue by segment: Match Group $ 407,367 $ 407,367 $ — ANGI Homeservices 255,311 255,311 — Video 66,162 66,591 (429 ) Applications 131,987 131,517 470 Publishing 134,322 134,322 — Inter-segment eliminations (74 ) (74 ) — Total $ 995,075 $ 995,034 $ 41 Three Months Ended March 31, 2018 Under ASC 606 (as reported) Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Operating expense by segment: Match Group $ 295,134 $ 295,134 $ — ANGI Homeservices 266,067 272,160 (6,093 ) Video 82,037 82,264 (227 ) Applications 106,526 106,007 519 Publishing 118,511 118,511 — Corporate 36,850 36,850 — Total $ 905,125 $ 910,926 $ (5,801 ) Three Months Ended March 31, 2018 Under ASC 606 (as reported) Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Operating income (loss) by segment: Match Group $ 112,233 $ 112,233 $ — ANGI Homeservices (10,756 ) (16,849 ) 6,093 Video (15,875 ) (15,673 ) (202 ) Applications 25,461 25,510 (49 ) Publishing 15,811 15,811 — Corporate (36,924 ) (36,924 ) — Total $ 89,950 $ 84,108 $ 5,842 Three Months Ended March 31, 2018 Under ASC 606 (as reported) Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Net earnings $ 87,839 $ 83,517 $ 4,322 |
Schedule of Cash, Cash Equivalents, and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows: March 31, 2018 December 31, 2017 March 31, 2017 December 31, 2016 (In thousands) Cash and cash equivalents $ 1,657,537 $ 1,630,809 $ 1,397,038 $ 1,329,187 Restricted cash included in other current assets 2,860 2,873 5,428 20,464 Restricted cash included in other assets — — — 10,548 Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flows $ 1,660,397 $ 1,633,682 $ 1,402,466 $ 1,360,199 |
Schedule of Cash, Cash Equivalents, and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows: March 31, 2018 December 31, 2017 March 31, 2017 December 31, 2016 (In thousands) Cash and cash equivalents $ 1,657,537 $ 1,630,809 $ 1,397,038 $ 1,329,187 Restricted cash included in other current assets 2,860 2,873 5,428 20,464 Restricted cash included in other assets — — — 10,548 Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flows $ 1,660,397 $ 1,633,682 $ 1,402,466 $ 1,360,199 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Pro Forma Financial Information | The unaudited pro forma financial information in the table below presents the combined results of the Company and Angie's List as if the Combination had occurred on January 1, 2016. The unaudited pro forma financial information includes adjustments required under the acquisition method of accounting and is presented for informational purposes only and is not necessarily indicative of the results that would have been achieved had the Combination actually occurred on January 1, 2016. For the three months ended March 31, 2017 , pro forma adjustments include increases in stock-based compensation expense of $14.7 million and amortization of intangibles of $11.5 million . Three Months Ended March 31, 2017 (In thousands, except per share data) Revenue $ 833,294 Net earnings attributable to IAC shareholders $ 13,339 Basic earnings per share attributable to IAC shareholders $ 0.17 Diluted earnings per share attributable to IAC shareholders $ 0.13 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Marketable Securities [Abstract] | |
Schedule of Fair Value of Marketable Securities | At March 31, 2018 and December 31, 2017 , the fair value of marketable securities are as follows: March 31, 2018 December 31, 2017 (In thousands) Available-for-sale marketable debt securities $ 4,990 $ 4,995 Equity security with a readily determinable fair value 640 — Total marketable securities $ 5,630 $ 4,995 |
Schedule of Current Available-for-sale Marketable Securities | At December 31, 2017 , current available-for-sale marketable debt securities are as follows: Amortized Gross Gross Fair Value (In thousands) Commercial paper $ 4,995 $ — $ — $ 4,995 Total available-for-sale marketable debt securities $ 4,995 $ — $ — $ 4,995 At March 31, 2018, current available-for-sale marketable debt securities are as follows: Amortized Gross Gross Fair Value (In thousands) Commercial paper $ 4,990 $ — $ — $ 4,990 Total available-for-sale marketable debt securities $ 4,990 $ — $ — $ 4,990 |
Schedule of Proceeds from Maturities and Sales of Current Available-for-sale Marketable Securities | The following table presents the proceeds from maturities and sales of available-for-sale marketable debt securities: March 31, 2018 2017 (In thousands) Proceeds from maturities and sales of available-for-sale marketable debt securities $ 5,000 $ 75,350 |
FAIR VALUE MEASUREMENTS AND F26
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the Company's financial instruments that are measured at fair value on a recurring basis: March 31, 2018 Quoted Market Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Measurements (In thousands) Assets: Cash equivalents: Money market funds $ 762,064 $ — $ — $ 762,064 Time deposits — 85,038 — 85,038 Treasury discount notes 149,908 — — 149,908 Commercial paper — 217,342 — 217,342 Certificates of deposit — 4,797 — 4,797 Marketable securities: Commercial paper — 4,990 — 4,990 Equity security with a readily determinable fair value 640 — $ — 640 Total $ 912,612 $ 312,167 $ — $ 1,224,779 Liabilities: Contingent consideration arrangements $ — $ — $ (1,965 ) $ (1,965 ) December 31, 2017 Quoted Market Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Measurements (In thousands) Assets: Cash equivalents: Money market funds $ 780,425 $ — $ — $ 780,425 Time deposits — 60,000 — 60,000 Treasury discount notes 100,457 — — 100,457 Commercial paper — 215,325 — 215,325 Certificates of deposit — 6,195 — 6,195 Marketable securities: Commercial paper — 4,995 — 4,995 Total $ 880,882 $ 286,515 $ — $ 1,167,397 Liabilities: Contingent consideration arrangements $ — $ — $ (2,647 ) $ (2,647 ) |
Schedule of Changes in Assets 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): Contingent Consideration Arrangements Three Months Ended March 31, 2018 2017 (In thousands) Balance at January 1 $ (2,647 ) $ (33,871 ) Total net losses: Included in earnings: Fair value adjustments (156 ) (1,891 ) Included in other comprehensive loss (110 ) (1,059 ) Settlements 948 15,000 Balance at March 31 $ (1,965 ) $ (21,821 ) |
Schedule of Changes in 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): Contingent Consideration Arrangements Three Months Ended March 31, 2018 2017 (In thousands) Balance at January 1 $ (2,647 ) $ (33,871 ) Total net losses: Included in earnings: Fair value adjustments (156 ) (1,891 ) Included in other comprehensive loss (110 ) (1,059 ) Settlements 948 15,000 Balance at March 31 $ (1,965 ) $ (21,821 ) |
Schedule of Carrying Value and the Fair Value of 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: March 31, 2018 December 31, 2017 Carrying Fair Carrying Fair (In thousands) Current portion of long-term debt $ (14,120 ) $ (14,199 ) $ (13,750 ) $ (13,802 ) Long-term debt, net (1,980,579 ) (2,211,769 ) (1,979,469 ) (2,168,108 ) |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of: March 31, 2018 December 31, 2017 (In thousands) MTCH Debt: MTCH Term Loan due November 16, 2022 $ 425,000 $ 425,000 6.375% Senior Notes due June 1, 2024 (the "6.375% MTCH Senior Notes"); interest payable each June 1 and December 1 400,000 400,000 5.00% Senior Notes due December 15, 2027 (the "5.00% MTCH Senior Notes"); interest payable each June 15 and December 15, which commences on June 15, 2018 450,000 450,000 Total MTCH long-term debt 1,275,000 1,275,000 Less: unamortized original issue discount 8,339 8,668 Less: unamortized debt issuance costs 13,219 13,636 Total MTCH debt, net 1,253,442 1,252,696 ANGI Debt: ANGI Term Loan due November 1, 2022 271,563 275,000 Less: current portion of ANGI Term Loan 13,750 13,750 Less: unamortized debt issuance costs 2,786 2,938 Total ANGI debt, net 255,027 258,312 IAC Debt: 0.875% Exchangeable Senior Notes due October 1, 2022 (the "Exchangeable Notes"); interest payable each April 1 and October 1, which commences on April 1, 2018 517,500 517,500 4.75% Senior Notes due December 15, 2022 (the "4.75% Senior Notes"); interest payable each June 15 and December 15 34,859 34,859 Total IAC long-term debt 552,359 552,359 Less: current portion of IAC long-term debt 370 — Less: unamortized original issue discount 63,922 67,158 Less: unamortized debt issuance costs 15,957 16,740 Total IAC debt, net 472,110 468,461 Total long-term debt, net $ 1,980,579 $ 1,979,469 |
ACCUMULATED OTHER COMPREHENSI28
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive (Loss) Income | For the three months ended March 31, 2018 , the Company's accumulated other comprehensive loss relates to foreign currency translation adjustments. Three Months Ended March 31, 2018 Accumulated Other Comprehensive (Loss) Income Balance as of January 1 $ (103,568 ) Other comprehensive income before reclassifications 28,479 Amounts reclassified to earnings 139 Net current period other comprehensive income 28,618 Balance as of March 31 $ (74,950 ) Three Months Ended March 31, 2017 Foreign Currency Translation Adjustment Unrealized Gains On Available-For-Sale Securities Accumulated Other Comprehensive (Loss) Income (In thousands) Balance as of January 1 $ (170,149 ) $ 4,026 $ (166,123 ) Other comprehensive income before reclassifications 18,062 2 18,064 Amounts reclassified to earnings 714 — 714 Net current period other comprehensive income 18,776 2 18,778 Balance as of March 31 $ (151,373 ) $ 4,028 $ (147,345 ) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings (Loss) Per Share | The following table sets forth the computation of basic and diluted earnings per share attributable to IAC shareholders: Three Months Ended March 31, 2018 2017 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator: Net earnings $ 87,839 $ 87,839 $ 28,463 $ 28,463 Net earnings attributable to noncontrolling interests (16,757 ) (16,757 ) (2,254 ) (2,254 ) Impact from public subsidiaries' dilutive securities (a) — (7,442 ) — (2,430 ) Net earnings attributable to IAC shareholders $ 71,082 $ 63,640 $ 26,209 $ 23,779 Denominator: Weighted average basic shares outstanding 82,983 82,983 78,193 78,193 Dilutive securities (a) (b) (c) (d) — 6,086 — 4,311 Denominator for earnings per share—weighted average shares (a) (b) (c) (d) 82,983 89,069 78,193 82,504 Earnings per share attributable to IAC shareholders: Earnings per share $ 0.86 $ 0.71 $ 0.34 $ 0.29 ________________________ (a) For the three months ended March 31, 2018, it is more dilutive for IAC to settle certain ANGI equity awards and MTCH to settle certain MTCH equity awards. For the three months ended March 31, 2017, it is more dilutive for MTCH to settle certain MTCH equity awards. The impact from ANGI’s dilutive securities is not applicable for periods prior to the Combination. (b) 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, warrants and subsidiary denominated equity, exchange of the Company's Exchangeable Notes and vesting of restricted stock units ("RSUs"). For the three months ended March 31, 2018 and 2017 , 6.8 million and 2.0 million potentially dilutive securities, respectively, are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. (c) Market-based awards and performance-based stock units (“PSUs”) are considered contingently issuable shares. Shares issuable upon exercise or vesting of market-based awards and PSUs are included in the denominator for earnings per share if (i) the applicable market or performance condition(s) has been met and (ii) the inclusion of the market-based awards and PSUs is dilutive for the respective reporting periods. For the three months ended March 31, 2018 and 2017 , 0.2 million and 0.4 million shares, respectively, underlying market-based awards and PSUs were excluded from the calculation of diluted earnings per share because the market or performance conditions had not been met. (d) It is the Company's intention to settle the Exchangeable Notes through a combination of cash, equal to the face amount of the notes, and shares; the Exchangeable Notes are only dilutive once the average price of IAC common stock for the period exceeds the approximate $152.18 per share exchange price per $1,000 principal amount of the Exchangeable Notes. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Operating segments are combined for reporting purposes if they meet certain aggregation criteria, which principally relate to the similarity of their economic characteristics. Three Months Ended March 31, 2018 2017 (In thousands) Revenue: Match Group $ 407,367 $ 298,764 ANGI Homeservices 255,311 150,745 Video 66,162 50,577 Applications 131,987 158,897 Publishing 134,322 78,080 Other (a) — 23,980 Inter-segment eliminations (74 ) (210 ) Total $ 995,075 $ 760,833 ___________________ (a) The 2017 results at the Other segment consists of the results of The Princeton Review prior its sale, which occurred on March 31, 2017. Three Months Ended March 31, 2018 2017 (In thousands) Operating Income (Loss): Match Group $ 112,233 $ 58,871 ANGI Homeservices (10,756 ) 1,388 Video (15,875 ) (15,589 ) Applications 25,461 32,768 Publishing 15,811 (5,788 ) Other — (5,621 ) Corporate (36,924 ) (28,969 ) Total $ 89,950 $ 37,060 Three Months Ended March 31, 2018 2017 (In thousands) Adjusted EBITDA: (b) Match Group $ 137,741 $ 86,231 ANGI Homeservices 36,640 10,212 Video (12,940 ) (14,732 ) Applications 26,752 34,933 Publishing 17,213 1,179 Other — (1,532 ) Corporate (17,008 ) (14,315 ) Total $ 188,398 $ 101,976 ________________________ (b) The Company's primary financial measure is Adjusted EBITDA, which is defined as operating income excluding: (1) stock-based compensation expense; (2) depreciation; and (3) acquisition-related items consisting of (i) amortization of intangible assets and impairments of goodwill and intangible assets, if applicable, 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, and this measure is one of the primary metrics on which our internal budgets are based and by which management is compensated. The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature. Adjusted EBITDA has certain limitations in that it does not take into account the impact to IAC's statement of operations of certain expenses. The following table presents the revenue of the Company's segments disaggregated by type of service: Three Months Ended March 31, 2018 2017 (In thousands) Match Group Direct revenue: North America $ 211,357 $ 175,328 International 181,380 112,424 Direct revenue 392,737 287,752 Indirect revenue (principally advertising revenue) 14,630 11,012 Total Match Group revenue $ 407,367 $ 298,764 ANGI Homeservices Marketplace: Consumer connection revenue (c) $ 149,060 $ 116,000 Membership subscription revenue 15,627 12,752 Other revenue 921 892 Marketplace revenue 165,608 129,644 Advertising & Other revenue (d) 70,418 8,428 North America 236,026 138,072 Consumer connection revenue (c) 14,367 8,465 Membership subscription revenue 4,671 4,006 Advertising and other revenue 247 202 Europe 19,285 12,673 Total ANGI Homeservices revenue $ 255,311 $ 150,745 Video Subscription revenue $ 34,343 $ 24,817 Media production and distribution revenue 20,048 20,933 Advertising and other revenue 11,771 4,827 Total Video revenue $ 66,162 $ 50,577 Applications Advertising revenue: Google advertising revenue $ 87,431 $ 105,098 Other 6,354 6,313 Advertising revenue 93,785 111,411 Subscription and other revenue 16,289 18,921 Consumer 110,074 130,332 Advertising revenue: Google advertising revenue 21,146 27,709 Other 731 783 Advertising revenue 21,877 28,492 Other revenue 36 73 Partnerships 21,913 28,565 Total Applications revenue $ 131,987 $ 158,897 Publishing Advertising revenue: Google advertising revenue $ 13,638 $ 9,789 Other 23,947 15,866 Advertising revenue 37,585 25,655 Other revenue 1,223 345 Premium Brands 38,808 26,000 Advertising revenue: Google advertising revenue 88,692 44,687 Other 6,613 7,205 Advertising revenue 95,305 51,892 Other revenue 209 188 Ask & Other 95,514 52,080 Total Publishing revenue $ 134,322 $ 78,080 _______________________________________________________________________________ (c) Fees paid by service professionals for consumer matches. (d) Includes Angie's List revenue from service professionals under contract for advertising and Angie's List membership subscription fees from consumers, as well as revenue from mHelpDesk, HomeStars and Felix. |
Schedule of Revenue and Long-lived Assets, Excluding Goodwill and Intangible Assets, by Geography | Revenue by geography is based on where the customer is located. Geographic information about revenue and long-lived assets is presented below: Three Months Ended March 31, 2018 2017 (In thousands) Revenue: United States $ 657,580 $ 548,598 All other countries 337,495 212,235 Total $ 995,075 $ 760,833 March 31, December 31, (In thousands) Long-lived assets (excluding goodwill and intangible assets): United States $ 272,881 $ 286,541 All other countries 28,984 28,629 Total $ 301,865 $ 315,170 |
Schedule of Reconciliation of Operating Income to Adjusted EBITDA | The following tables reconcile operating income (loss) for the Company's reportable segments and net earnings attributable to IAC shareholders to Adjusted EBITDA: Three Months Ended March 31, 2018 Operating Income (Loss) Stock-Based Compensation Expense Depreciation Amortization of Intangibles Acquisition-related Contingent Consideration Fair Value Adjustments Adjusted EBITDA (In thousands) Match Group $ 112,233 $ 16,963 $ 8,147 $ 242 $ 156 $ 137,741 ANGI Homeservices (10,756 ) $ 24,906 $ 6,184 $ 16,306 $ — $ 36,640 Video (15,875 ) $ 131 $ 675 $ 2,129 $ — $ (12,940 ) Applications 25,461 $ — $ 755 $ 536 $ — $ 26,752 Publishing 15,811 $ — $ 662 $ 740 $ — $ 17,213 Other — $ — $ — $ — $ — $ — Corporate (36,924 ) $ 17,082 $ 2,834 $ — $ — $ (17,008 ) Operating income 89,950 Interest expense (26,505 ) Other expense, net (4,619 ) Earnings before income taxes 58,826 Income tax benefit 29,013 Net earnings 87,839 Net earnings attributable to noncontrolling interests (16,757 ) Net earnings attributable to IAC shareholders $ 71,082 Three Months Ended March 31, 2017 Operating Income (Loss) Stock-Based Compensation Expense Depreciation Amortization of Intangibles Acquisition-related Contingent Consideration Fair Value Adjustments Adjusted EBITDA (In thousands) Match Group $ 58,871 $ 18,024 $ 7,589 $ 403 $ 1,344 $ 86,231 ANGI Homeservices 1,388 $ 4,461 $ 2,996 $ 1,367 $ — $ 10,212 Video (15,589 ) $ — $ 544 $ 313 $ — $ (14,732 ) Applications 32,768 $ — $ 1,011 $ 606 $ 548 $ 34,933 Publishing (5,788 ) $ — $ 2,019 $ 4,948 $ — $ 1,179 Other (5,621 ) $ 1,729 $ 836 $ 1,524 $ — $ (1,532 ) Corporate (28,969 ) $ 9,761 $ 4,893 $ — $ — $ (14,315 ) Operating income 37,060 Interest expense (24,792 ) Other expense, net (7,714 ) Earnings before income taxes 4,554 Income tax benefit 23,909 Net earnings 28,463 Net earnings attributable to noncontrolling interests (2,254 ) Net earnings attributable to IAC shareholders $ 26,209 |
GUARANTOR AND NON-GUARANTOR F31
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Guarantor and Nonguarantor Financial Statements [Abstract] | |
Schedule of Condensed Balance Sheet | Balance sheet at March 31, 2018: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Cash and cash equivalents $ 895,406 $ — $ 762,131 $ — $ 1,657,537 Marketable securities 4,990 — 640 — 5,630 Accounts receivable, net of allowance — 113,977 211,286 — 325,263 Other current assets 46,576 26,567 161,359 — 234,502 Intercompany receivables — 994,153 — (994,153 ) — Property and equipment, net of accumulated depreciation and amortization 2,457 171,681 127,727 — 301,865 Goodwill — 412,010 2,189,200 — 2,601,210 Intangible assets, net of accumulated amortization — 74,343 578,862 — 653,205 Investment in subsidiaries 1,789,479 300,030 — (2,089,509 ) — Other non-current assets 226,063 87,067 84,436 (145,804 ) 251,762 Total assets $ 2,964,971 $ 2,179,828 $ 4,115,641 $ (3,229,466 ) $ 6,030,974 Current portion of long-term debt $ 370 $ — $ 13,750 $ — $ 14,120 Accounts payable, trade 1,509 35,916 42,163 — 79,588 Other current liabilities 22,053 88,329 625,403 — 735,785 Long-term debt, net 34,216 — 1,946,363 — 1,980,579 Income taxes payable 12 1,528 22,536 — 24,076 Intercompany liabilities 411,831 — 582,322 (994,153 ) — Other long-term liabilities 453 17,432 195,255 (145,804 ) 67,336 Redeemable noncontrolling interests — — 47,099 — 47,099 IAC shareholders' equity 2,494,527 2,036,623 52,886 (2,089,509 ) 2,494,527 Noncontrolling interests — — 587,864 — 587,864 Total liabilities and shareholders' equity $ 2,964,971 $ 2,179,828 $ 4,115,641 $ (3,229,466 ) $ 6,030,974 Balance sheet at December 31, 2017: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Cash and cash equivalents $ 585,639 $ — $ 1,045,170 $ — $ 1,630,809 Marketable securities 4,995 — — — 4,995 Accounts receivable, net of allowance 31 109,289 194,707 — 304,027 Other current assets 49,159 33,387 102,828 — 185,374 Intercompany receivables — 668,703 — (668,703 ) — Property and equipment, net of accumulated depreciation and amortization 2,811 174,323 138,036 — 315,170 Goodwill — 412,010 2,147,056 — 2,559,066 Intangible assets, net of accumulated amortization — 74,852 588,885 — 663,737 Investment in subsidiaries 2,076,004 554,998 — (2,631,002 ) — Other non-current assets 170,073 87,306 79,688 (132,435 ) 204,632 Total assets $ 2,888,712 $ 2,114,868 $ 4,296,370 $ (3,432,140 ) $ 5,867,810 Current portion of long-term debt $ — $ — $ 13,750 $ — $ 13,750 Accounts payable, trade 5,163 30,469 40,939 — 76,571 Other current liabilities 29,489 88,050 591,868 — 709,407 Long-term debt, net 34,572 — 1,944,897 — 1,979,469 Income taxes payable 16 1,605 24,003 — 25,624 Intercompany liabilities 388,933 — 279,770 (668,703 ) — Other long-term liabilities 511 18,613 186,610 (132,435 ) 73,299 Redeemable noncontrolling interests — — 42,867 — 42,867 IAC shareholders' equity 2,430,028 1,976,131 654,871 (2,631,002 ) 2,430,028 Noncontrolling interests — — 516,795 — 516,795 Total liabilities and shareholders' equity $ 2,888,712 $ 2,114,868 $ 4,296,370 $ (3,432,140 ) $ 5,867,810 |
Schedule of Condensed Income Statement | Statement of operations for the three months ended March 31, 2018: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Revenue $ — $ 212,889 $ 782,260 $ (74 ) $ 995,075 Operating costs and expenses: Cost of revenue (exclusive of depreciation shown separately below) 76 56,224 145,712 (50 ) 201,962 Selling and marketing expense 213 90,138 312,526 (45 ) 402,832 General and administrative expense 31,409 15,381 137,373 21 184,184 Product development expense 652 14,269 62,016 — 76,937 Depreciation 266 3,340 15,651 — 19,257 Amortization of intangibles — 509 19,444 — 19,953 Total operating costs and expenses 32,616 179,861 692,722 (74 ) 905,125 Operating (loss) income (32,616 ) 33,028 89,538 — 89,950 Equity in earnings of unconsolidated affiliates 102,750 (327 ) — (102,423 ) — Interest expense (429 ) — (26,076 ) — (26,505 ) Other (expense) income, net (a) (16,847 ) 286,883 2,190 (276,845 ) (4,619 ) Earnings before income taxes 52,858 319,584 65,652 (379,268 ) 58,826 Income tax benefit (provision) 18,224 (10,966 ) 21,755 — 29,013 Net earnings 71,082 308,618 87,407 (379,268 ) 87,839 Net earnings attributable to noncontrolling interests — — (16,757 ) — (16,757 ) Net earnings attributable to IAC shareholders 71,082 $ 308,618 $ 70,650 $ (379,268 ) $ 71,082 Comprehensive income attributable to IAC shareholders $ 99,439 $ 308,961 $ 105,327 $ (414,288 ) $ 99,439 (a) During the three months ended March 31, 2018, foreign cash of $276 million was repatriated to the U.S. Statement of operations for the three months ended March 31, 2017: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Revenue $ — $ 181,572 $ 579,474 $ (213 ) $ 760,833 Operating costs and expenses: Cost of revenue (exclusive of depreciation shown separately below) 113 32,708 113,310 (173 ) 145,958 Selling and marketing expense 326 91,950 258,189 (54 ) 350,411 General and administrative expense 26,136 15,590 101,855 14 143,595 Product development expense 570 15,387 38,803 — 54,760 Depreciation 438 7,133 12,317 — 19,888 Amortization of intangibles — 5,085 4,076 — 9,161 Total operating costs and expenses 27,583 167,853 528,550 (213 ) 723,773 Operating (loss) income (27,583 ) 13,719 50,924 — 37,060 Equity in earnings (losses) of unconsolidated affiliates 51,456 (2,683 ) — (48,773 ) — Interest expense (5,828 ) — (18,964 ) — (24,792 ) Other (expense) income, net (5,805 ) 6,091 (8,000 ) — (7,714 ) Earnings before income taxes 12,240 17,127 23,960 (48,773 ) 4,554 Income tax benefit (provision) 13,969 (9,689 ) 19,629 — 23,909 Net earnings 26,209 7,438 43,589 (48,773 ) 28,463 Net earnings attributable to noncontrolling interests — — (2,254 ) — (2,254 ) Net earnings attributable to IAC shareholders $ 26,209 $ 7,438 $ 41,335 $ (48,773 ) $ 26,209 Comprehensive income attributable to IAC shareholders $ 44,987 $ 11,491 $ 63,768 $ (75,259 ) $ 44,987 |
Schedule of Condensed Cash Flow Statement | Statement of cash flows for the three months ended March 31, 2018: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Net cash provided by (used in) operating activities $ 1,562 $ 319,686 $ 107,605 $ (276,845 ) $ 152,008 Cash flows from investing activities: Acquisitions, net of cash acquired (4,134 ) — (17,161 ) — (21,295 ) Capital expenditures — (570 ) (14,231 ) — (14,801 ) Proceeds from maturities and sales of marketable debt securities 5,000 — — — 5,000 Purchases of marketable debt securities (4,975 ) — — — (4,975 ) Purchases of investments (18,180 ) — — — (18,180 ) Net proceeds from the sale of businesses and investments — — 15 — 15 Other, net (5,000 ) 3,884 10,463 — 9,347 Net cash (used in) provided by investing activities (27,289 ) 3,314 (20,914 ) — (44,889 ) Cash flows from financing activities: Principal payment on ANGI Homeservices debt — — (3,438 ) — (3,438 ) Purchase of Match Group treasury stock — — (32,465 ) — (32,465 ) Proceeds from the exercise of IAC stock options 24,254 — — — 24,254 Proceeds from the exercise of Match Group and ANGI Homeservices stock options — — 1,752 — 1,752 Withholding taxes paid on behalf of IAC employees on net settled stock-based awards (282 ) — — — (282 ) Withholding taxes paid on behalf of Match Group and ANGI Homeservices employees on net settled stock-based awards — — (75,028 ) — (75,028 ) Purchase of noncontrolling interests — — (234 ) — (234 ) Acquisition-related contingent consideration payments — — (185 ) — (185 ) Intercompany 308,822 (323,000 ) (262,667 ) 276,845 — Other, net 2,674 — (198 ) — 2,476 Net cash provided by (used in) financing activities 335,468 (323,000 ) (372,463 ) 276,845 (83,150 ) Total cash provided (used) 309,741 — (285,772 ) — 23,969 Effect of exchange rate changes on cash, cash equivalents, and restricted cash 26 — 2,720 — 2,746 Net increase (decrease) in cash, cash equivalents, and restricted cash 309,767 — (283,052 ) — 26,715 Cash, cash equivalents, and restricted cash at beginning of period 585,639 — 1,048,043 — 1,633,682 Cash, cash equivalents, and restricted cash at end of period $ 895,406 $ — $ 764,991 $ — $ 1,660,397 Statement of cash flows for the three months ended March 31, 2017: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Net cash (used in) provided by operating activities $ (18,973 ) $ 18,406 $ 68,430 $ — $ 67,863 Cash flows from investing activities: Acquisitions, net of cash acquired — — (52,365 ) — (52,365 ) Capital expenditures (87 ) (852 ) (10,218 ) — (11,157 ) Proceeds from maturities and sales of marketable debt securities 75,350 — — — 75,350 Purchases of marketable debt securities (19,926 ) — — — (19,926 ) Purchases of investments — — (29 ) — (29 ) Net proceeds from the sale of businesses and investments — — 97,496 — 97,496 Intercompany (10,671 ) — — 10,671 — Other, net — 31 182 — 213 Net cash provided by (used in) investing activities 44,666 (821 ) 35,066 10,671 89,582 Cash flows from financing activities: Principal payments on IAC debt (26,590 ) — — — (26,590 ) Purchase of IAC treasury stock (56,424 ) — — — (56,424 ) Proceeds from the exercise of IAC stock options 13,252 — — — 13,252 Proceeds from the exercise of Match Group stock options — — 7,111 — 7,111 Withholding taxes paid on behalf of IAC employees on net settled stock-based awards (38,579 ) — — — (38,579 ) Withholding taxes paid on behalf of Match Group employees on net settled stock-based awards — — (2,081 ) — (2,081 ) Purchase of noncontrolling interests — — (12,259 ) — (12,259 ) Acquisition-related contingent consideration payments — — (3,860 ) — (3,860 ) Intercompany 17,585 (17,585 ) 10,671 (10,671 ) — Other, net 251 — (1 ) — 250 Net cash used in financing activities (90,505 ) (17,585 ) (419 ) (10,671 ) (119,180 ) Total cash (used) provided (64,812 ) — 103,077 — 38,265 Effect of exchange rate changes on cash, cash equivalents, and restricted cash 10 — 3,992 — 4,002 Net (decrease) increase in cash, cash equivalents, and restricted cash (64,802 ) — 107,069 — 42,267 Cash, cash equivalents, and restricted cash at beginning of period 573,784 — 786,415 — 1,360,199 Cash, cash equivalents, and restricted cash at end of period $ 508,982 $ — $ 893,484 $ — $ 1,402,466 |
THE COMPANY AND SUMMARY OF SI32
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue and Other [Line Items] | ||||
Retained earnings | $ 702,915 | $ 595,038 | ||
Revenue | 995,075 | $ 760,833 | ||
Accounts receivable, net of allowance | 325,263 | 304,027 | ||
Google Inc. | ||||
Revenue and Other [Line Items] | ||||
Accounts receivable, net of allowance | 79,200 | 72,400 | ||
Google Inc. | Publishing and Applications | ||||
Revenue and Other [Line Items] | ||||
Revenue | $ 211,300 | $ 187,800 | ||
Google Inc. | Revenue | Customer concentration risk | ||||
Revenue and Other [Line Items] | ||||
Concentration risk (as a percent) | 21.00% | 25.00% | ||
Google Inc. | Revenue | Customer concentration risk | Operating segments | Publishing | ||||
Revenue and Other [Line Items] | ||||
Concentration risk (as a percent) | 76.00% | 70.00% | ||
Google Inc. | Revenue | Customer concentration risk | Operating segments | Applications | ||||
Revenue and Other [Line Items] | ||||
Concentration risk (as a percent) | 82.00% | 84.00% | ||
Match Group, Inc. | ||||
Revenue and Other [Line Items] | ||||
Economic interest (as a percent) | 80.90% | |||
Voting interest (as a percent) | 97.60% | |||
ANGI Homeservices | ||||
Revenue and Other [Line Items] | ||||
Economic interest (as a percent) | 86.80% | |||
Voting interest (as a percent) | 98.50% | |||
Accounting Standards Update 2014-09 | ||||
Revenue and Other [Line Items] | ||||
Retained earnings | $ 40,200 | $ 3,400 | ||
Accounting Standards Update 2014-09 | Applications | ||||
Revenue and Other [Line Items] | ||||
Retained earnings | $ 15,500 |
THE COMPANY AND SUMMARY OF SI33
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 702,915 | $ 595,038 | |
Deferred tax liability | 35,938 | 35,070 | |
Deferred revenue | $ 374,339 | 342,483 | |
Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 40,200 | $ 3,400 | |
ANGI Homeservices | Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | 25,900 | ||
Current capitalized contract costs | 29,700 | ||
Noncurrent capitalized contract costs | 4,200 | ||
Deferred tax liability | 8,000 | ||
Applications | Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | 15,500 | ||
Deferred tax liability | 4,900 | ||
Deferred revenue | $ 20,300 |
THE COMPANY AND SUMMARY OF SI34
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Adoption of ASU 2014-09 (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | $ 995,075 | $ 760,833 |
Operating costs and expenses | 905,125 | 723,773 |
Operating income (loss) | 89,950 | 37,060 |
Net earnings | 87,839 | 28,463 |
Under ASC 605 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | 995,034 | |
Operating costs and expenses | 910,926 | |
Operating income (loss) | 84,108 | |
Net earnings | 83,517 | |
Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | 41 | |
Operating costs and expenses | (5,801) | |
Operating income (loss) | 5,842 | |
Net earnings | 4,322 | |
Operating segments | Match Group | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | 407,367 | 298,764 |
Operating costs and expenses | 295,134 | |
Operating income (loss) | 112,233 | 58,871 |
Operating segments | Match Group | Under ASC 605 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | 407,367 | |
Operating costs and expenses | 295,134 | |
Operating income (loss) | 112,233 | |
Operating segments | Match Group | Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | 0 | |
Operating costs and expenses | 0 | |
Operating income (loss) | 0 | |
Operating segments | ANGI Homeservices | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | 255,311 | 150,745 |
Operating costs and expenses | 266,067 | |
Operating income (loss) | (10,756) | 1,388 |
Operating segments | ANGI Homeservices | Under ASC 605 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | 255,311 | |
Operating costs and expenses | 272,160 | |
Operating income (loss) | (16,849) | |
Operating segments | ANGI Homeservices | Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | 0 | |
Operating costs and expenses | (6,093) | |
Operating income (loss) | 6,093 | |
Operating segments | Video | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | 66,162 | 50,577 |
Operating costs and expenses | 82,037 | |
Operating income (loss) | (15,875) | (15,589) |
Operating segments | Video | Under ASC 605 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | 66,591 | |
Operating costs and expenses | 82,264 | |
Operating income (loss) | (15,673) | |
Operating segments | Video | Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | (429) | |
Operating costs and expenses | (227) | |
Operating income (loss) | (202) | |
Operating segments | Applications | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | 131,987 | 158,897 |
Operating costs and expenses | 106,526 | |
Operating income (loss) | 25,461 | 32,768 |
Operating segments | Applications | Under ASC 605 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | 131,517 | |
Operating costs and expenses | 106,007 | |
Operating income (loss) | 25,510 | |
Operating segments | Applications | Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | 470 | |
Operating costs and expenses | 519 | |
Operating income (loss) | (49) | |
Operating segments | Publishing | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | 134,322 | 78,080 |
Operating costs and expenses | 118,511 | |
Operating income (loss) | 15,811 | (5,788) |
Operating segments | Publishing | Under ASC 605 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | 134,322 | |
Operating costs and expenses | 118,511 | |
Operating income (loss) | 15,811 | |
Operating segments | Publishing | Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | 0 | |
Operating costs and expenses | 0 | |
Operating income (loss) | 0 | |
Operating segments | Other | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | 23,980 | |
Operating income (loss) | 0 | (5,621) |
Inter-segment eliminations | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | (74) | (210) |
Inter-segment eliminations | Under ASC 605 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | (74) | |
Inter-segment eliminations | Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | 0 | |
Corporate | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Operating costs and expenses | 36,850 | |
Operating income (loss) | (36,924) | $ (28,969) |
Corporate | Under ASC 605 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Operating costs and expenses | 36,850 | |
Operating income (loss) | (36,924) | |
Corporate | Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Operating costs and expenses | 0 | |
Operating income (loss) | $ 0 |
THE COMPANY AND SUMMARY OF SI35
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 1,657,537 | $ 1,630,809 | $ 1,397,038 | $ 1,329,187 |
Restricted cash included in other current assets | 2,860 | 2,873 | 5,428 | 20,464 |
Restricted cash included in other assets | 0 | 0 | 0 | 10,548 |
Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flows | $ 1,660,397 | $ 1,633,682 | $ 1,402,466 | $ 1,360,199 |
REVENUE RECOGNITION - Narrative
REVENUE RECOGNITION - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Jan. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue | $ 332.2 | |
Deferred revenue recognized during period | $ 217.8 | |
Current deferred revenue | 374.3 | |
Noncurrent deferred revenue | 1.8 | |
Amortization expense recognized related to contract cost assets | 75.1 | |
Capitalization of costs incurred to obtain contract | $ 68 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax provision (benefit) | $ (29,013) | $ (23,909) | |
Total unrecognized tax benefits including interest and penalties | 38,400 | $ 39,700 | |
Unrecognized tax benefit, if subsequently recognized would reduce income tax expense | 35,900 | $ 37,200 | |
Decrease in unrecognized tax benefit, reasonably possible within twelve months | 2,000 | ||
Decrease in unrecognized tax benefit which would reduce the income tax provision | $ 147,500 |
BUSINESS COMBINATION - Narrativ
BUSINESS COMBINATION - Narrative (Details) - USD ($) $ in Millions | Sep. 29, 2017 | Mar. 31, 2018 |
Business Acquisition [Line Items] | ||
Pro-forma adjustment to increase share-based compensation | $ 14.7 | |
Pro-forma adjustment to increase amortization of intangibles | $ 11.5 | |
Angie's List | ||
Business Acquisition [Line Items] | ||
Percentage of interest acquired | 100.00% | |
Purchase price | $ 781.4 |
BUSINESS COMBINATION - Pro Form
BUSINESS COMBINATION - Pro Forma Financial Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)$ / shares | |
Business Combinations [Abstract] | |
Revenue | $ | $ 833,294 |
Net earnings attributable to IAC shareholders | $ | $ 13,339 |
Basic earnings per share attributable to IAC shareholders (USD per share) | $ / shares | $ 0.17 |
Diluted earnings per share attributable to IAC shareholders (USD per share) | $ / shares | $ 0.13 |
MARKETABLE SECURITIES - Narrati
MARKETABLE SECURITIES - Narrative (Details) - USD ($) | Jan. 01, 2018 | Mar. 31, 2018 | Mar. 31, 2017 |
Marketable Securities [Abstract] | |||
Contractual maturity of current available-for-sale securities | 1 year | ||
Available-for-sale securities in an unrealized loss position | $ 0 | ||
Cost basis of equity securities | 300,000 | ||
Unrealized gain on equity securities | $ 300,000 | ||
Gross realized gains | 0 | $ 0 | |
Gross realized losses | $ 0 | $ 0 |
MARKETABLE SECURITIES - Fair Va
MARKETABLE SECURITIES - Fair Value of Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Marketable Securities [Abstract] | ||
Available-for-sale marketable debt securities | $ 4,990 | $ 4,995 |
Equity security with a readily determinable fair value | 640 | 0 |
Total marketable securities | $ 5,630 | $ 4,995 |
MARKETABLE SECURITIES - Schedul
MARKETABLE SECURITIES - Schedule of Current Available-for-Sale Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Marketable Securities | ||
Amortized Cost | $ 4,990 | $ 4,995 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Available-for-sale marketable debt securities | 4,990 | 4,995 |
Commercial paper | ||
Schedule of Available-for-sale Marketable Securities | ||
Amortized Cost | 4,990 | 4,995 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Available-for-sale marketable debt securities | $ 4,990 | $ 4,995 |
MARKETABLE SECURITIES - Sched43
MARKETABLE SECURITIES - Schedule of Proceeds from Maturities and Sales of Current Available-for-Sale Marketable Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Marketable Securities [Abstract] | ||
Proceeds from maturities and sales of available-for-sale marketable securities | $ 5,000 | $ 75,350 |
FAIR VALUE MEASUREMENTS AND F44
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Contingent Consideration Arrangements | ||
Contingent consideration, maximum amount at balance sheet date | $ 32.1 | |
Contingent consideration, fair value at balance sheet date with a maximum limit | 2.1 | |
Contingent consideration, at fair value, current | 2 | $ 0.6 |
Contingent consideration, at fair value, noncurrent | 2 | |
Assets measured at fair value on a nonrecurring basis | ||
Cost method investments | $ 81 | $ 63.4 |
Contingent Consideration Arrangements | ||
Contingent Consideration Arrangements | ||
Contingent consideration, discount rates (as a percent) | 12.00% | 12.00% |
FAIR VALUE MEASUREMENTS AND F45
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value on a Recurring Basis - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Total | $ 1,224,779 | $ 1,167,397 |
Liabilities: | ||
Contingent consideration arrangements | (1,965) | (2,647) |
Money market funds | ||
Assets: | ||
Cash equivalents: | 762,064 | 780,425 |
Time deposits | ||
Assets: | ||
Cash equivalents: | 85,038 | 60,000 |
Treasury discount notes | ||
Assets: | ||
Cash equivalents: | 149,908 | 100,457 |
Commercial paper | ||
Assets: | ||
Cash equivalents: | 217,342 | 215,325 |
Certificates of deposit | ||
Assets: | ||
Cash equivalents: | 4,797 | 6,195 |
Commercial paper | ||
Assets: | ||
Marketable securities: | 4,990 | 4,995 |
Equity security with a readily determinable fair value | ||
Assets: | ||
Marketable securities: | 640 | |
Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Total | 912,612 | 880,882 |
Liabilities: | ||
Contingent consideration arrangements | 0 | 0 |
Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Assets: | ||
Cash equivalents: | 762,064 | 780,425 |
Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Time deposits | ||
Assets: | ||
Cash equivalents: | 0 | 0 |
Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Treasury discount notes | ||
Assets: | ||
Cash equivalents: | 149,908 | 100,457 |
Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | ||
Assets: | ||
Cash equivalents: | 0 | 0 |
Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Certificates of deposit | ||
Assets: | ||
Cash equivalents: | 0 | 0 |
Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | ||
Assets: | ||
Marketable securities: | 0 | 0 |
Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Equity security with a readily determinable fair value | ||
Assets: | ||
Marketable securities: | 640 | |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total | 312,167 | 286,515 |
Liabilities: | ||
Contingent consideration arrangements | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Money market funds | ||
Assets: | ||
Cash equivalents: | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Time deposits | ||
Assets: | ||
Cash equivalents: | 85,038 | 60,000 |
Significant Other Observable Inputs (Level 2) | Treasury discount notes | ||
Assets: | ||
Cash equivalents: | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Commercial paper | ||
Assets: | ||
Cash equivalents: | 217,342 | 215,325 |
Significant Other Observable Inputs (Level 2) | Certificates of deposit | ||
Assets: | ||
Cash equivalents: | 4,797 | 6,195 |
Significant Other Observable Inputs (Level 2) | Commercial paper | ||
Assets: | ||
Marketable securities: | 4,990 | 4,995 |
Significant Other Observable Inputs (Level 2) | Equity security with a readily determinable fair value | ||
Assets: | ||
Marketable securities: | 0 | |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Total | 0 | 0 |
Liabilities: | ||
Contingent consideration arrangements | (1,965) | (2,647) |
Significant Unobservable Inputs (Level 3) | Money market funds | ||
Assets: | ||
Cash equivalents: | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Time deposits | ||
Assets: | ||
Cash equivalents: | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Treasury discount notes | ||
Assets: | ||
Cash equivalents: | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commercial paper | ||
Assets: | ||
Cash equivalents: | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Certificates of deposit | ||
Assets: | ||
Cash equivalents: | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commercial paper | ||
Assets: | ||
Marketable securities: | 0 | $ 0 |
Significant Unobservable Inputs (Level 3) | Equity security with a readily determinable fair value | ||
Assets: | ||
Marketable securities: | $ 0 |
FAIR VALUE MEASUREMENTS AND F46
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Schedule of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Contingent Consideration Arrangements - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Contingent Consideration Arrangements | ||
Balance at beginning of period | $ (2,647) | $ (33,871) |
Fair value adjustments | (156) | (1,891) |
Included in other comprehensive loss | (110) | (1,059) |
Settlements | 948 | 15,000 |
Balance at end of period | $ (1,965) | $ (21,821) |
FAIR VALUE MEASUREMENTS AND F47
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Carrying Value and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Current portion of long-term debt | $ (14,120) | $ (13,750) |
Long-term debt, net of current portion | (1,980,579) | (1,979,469) |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Current portion of long-term debt | (14,120) | (13,750) |
Long-term debt, net of current portion | (1,980,579) | (1,979,469) |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Current portion of long-term debt | (14,199) | (13,802) |
Long-term debt, net of current portion | $ (2,211,769) | $ (2,168,108) |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long-Term Debt (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 04, 2017 | Jun. 01, 2016 |
Debt Instrument [Line Items] | ||||
Less: current portion of long-term debt | $ 14,120,000 | $ 13,750,000 | ||
Long-term debt, net | 1,980,579,000 | 1,979,469,000 | ||
Match Group, Inc. | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 1,275,000,000 | 1,275,000,000 | ||
Less: unamortized original issue discount | 8,339,000 | 8,668,000 | ||
Less: unamortized debt issuance costs | 13,219,000 | 13,636,000 | ||
Long-term debt, net | 1,253,442,000 | 1,252,696,000 | ||
Match Group, Inc. | Senior Notes | 6.375% Senior Notes due June 1, 2024 (the Match Group 6.375% Senior Notes) | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 400,000,000 | $ 400,000,000 | ||
Stated interest rate (as a percent) | 6.375% | 6.375% | 6.375% | |
Match Group, Inc. | Senior Notes | Match Group Senior Notes, 5.00% December 15, 2027 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 450,000,000 | $ 450,000,000 | $ 450,000,000 | |
Stated interest rate (as a percent) | 5.00% | 5.00% | ||
Match Group, Inc. | Term Loan | Term Loan due November 16, 2022 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 425,000,000 | 425,000,000 | ||
ANGI Homeservices | ||||
Debt Instrument [Line Items] | ||||
Less: current portion of long-term debt | 13,750,000 | 13,750,000 | ||
Less: unamortized debt issuance costs | 2,786,000 | 2,938,000 | ||
Long-term debt, net | 255,027,000 | 258,312,000 | ||
ANGI Homeservices | Term Loan | Term Loan due November 01, 2022 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 271,563,000 | 275,000,000 | ||
IAC/InterActiveCorp | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 552,359,000 | 552,359,000 | ||
Less: unamortized original issue discount | 63,922,000 | 67,158,000 | ||
Less: current portion of long-term debt | 370,000 | 0 | ||
Less: unamortized debt issuance costs | 15,957,000 | 16,740,000 | ||
Long-term debt, net | 472,110,000 | 468,461,000 | ||
IAC/InterActiveCorp | Senior Notes | Senior Notes, 0.875% due October 1, 2022 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 517,500,000 | 517,500,000 | ||
Stated interest rate (as a percent) | 0.875% | |||
IAC/InterActiveCorp | Senior Notes | Senior Notes, 4.75% Due December 15, 2022 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 34,859,000 | $ 34,859,000 | ||
Stated interest rate (as a percent) | 4.75% |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) | Mar. 29, 2018USD ($) | Oct. 02, 2017USD ($)$ / sharesshares | Mar. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | Dec. 04, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 01, 2016USD ($) |
Debt Instrument [Line Items] | |||||||
Exchange price per share (USD per share) | $ / shares | $ 152.18 | ||||||
IAC Credit Facility | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 300,000,000 | ||||||
Borrowings outstanding of credit facility | $ 0 | $ 0 | |||||
Annual commitment fee on undrawn funds, basis points | 0.25% | ||||||
IAC Credit Facility | Maximum | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum leverage ratio | 3.25 | ||||||
Match Group, Inc. | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding balance of debt instrument | $ 1,275,000,000 | 1,275,000,000 | |||||
Net unamortized discount (premium) | 8,339,000 | 8,668,000 | |||||
Match Group, Inc. | Match Group Credit Agreement | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 500,000,000 | ||||||
Borrowings outstanding of credit facility | $ 0 | $ 0 | |||||
Annual commitment fee on undrawn funds, basis points | 0.30% | ||||||
Match Group, Inc. | Match Group Credit Agreement | Maximum | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum leverage ratio | 5 | ||||||
Match Group, Inc. | Match Group Credit Agreement | Minimum | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Minimum interest coverage ratio | 2.5 | ||||||
Senior Notes | IAC | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding balance of debt instrument | $ 517,500,000 | $ 453,600,000 | |||||
Exchangeable stock (shares) | shares | 6.5713 | ||||||
Exchange price per share (USD per share) | $ / shares | $ 152.18 | $ 152.18 | |||||
Period of reported sale price of common stock (trading days) | 20 days | ||||||
Period of consecutive reported sale price of common stock (trading days) | 30 days | ||||||
Exchange price on applicable trading day (as a percent) | 130.00% | ||||||
Amount of product relative to last reported price (as a percent) | 98.00% | ||||||
Proceeds from issuance of debt | $ 499,500,000 | ||||||
Repayment of net premium on exchangeable note hedge and warrants | 50,700,000 | ||||||
Amount of debt discount and increase to additional paid in capital | $ 70,400,000 | ||||||
Outstanding stock (shares) | shares | 3,400,000 | ||||||
Outstanding warrants (shares) | shares | 3,400,000 | ||||||
Exercise price of warrants (USD per share) | $ / shares | $ 229.70 | ||||||
If-converted value in excess of principal | $ 14,300,000 | ||||||
Cash and non-cash interest expense | $ 5,200,000 | ||||||
Amortization of debt issuance costs | 900,000 | ||||||
Net unamortized discount (premium) | $ 63,900,000 | ||||||
Senior Notes | 6.375% Senior Notes due June 1, 2024 (the Match Group 6.375% Senior Notes) | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Maximum leverage ratio | 5 | ||||||
Senior Notes | Senior Notes, 0.875% due October 1, 2022 | IAC | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate (as a percent) | 0.875% | ||||||
Senior Notes | Senior Notes, 0.875% due October 1, 2022 | Maximum | IAC | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate (as a percent) | 3.88% | ||||||
Senior Notes | Senior Notes, 0.875% due October 1, 2022 | Minimum | IAC | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate (as a percent) | 0.875% | ||||||
Senior Notes | Senior Notes, 4.75% Due December 15, 2022 | IAC | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate (as a percent) | 4.75% | ||||||
Senior Notes | Match Group, Inc. | 6.375% Senior Notes due June 1, 2024 (the Match Group 6.375% Senior Notes) | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate (as a percent) | 6.375% | 6.375% | 6.375% | ||||
Face amount of debt instrument | $ 400,000,000 | ||||||
Outstanding balance of debt instrument | $ 400,000,000 | $ 400,000,000 | |||||
Senior Notes | Match Group, Inc. | Match Group Senior Notes, 5.00% December 15, 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate (as a percent) | 5.00% | 5.00% | |||||
Outstanding balance of debt instrument | $ 450,000,000 | 450,000,000 | $ 450,000,000 | ||||
Senior Notes | Match Group, Inc. | 6.75% Senior Notes due December 15, 2022 (the Match Group 6.75% Senior Notes) | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate (as a percent) | 6.75% | ||||||
Outstanding balance of debt instrument | $ 445,000,000 | ||||||
Term Loan | Match Group, Inc. | Term Loan due November 16, 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding balance of debt instrument | $ 425,000,000 | 425,000,000 | |||||
Term Loan | Match Group, Inc. | Match Group Term Loan due November 16, 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate of debt instrument (as a percent) | 4.29% | ||||||
Term Loan | Match Group, Inc. | Match Group Term Loan due November 16, 2022 | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate of debt instrument (as a percent) | 2.50% | ||||||
Term Loan | ANGI Homeservices | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate (as a percent) | 3.78% | ||||||
Term Loan | ANGI Homeservices | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate (as a percent) | 2.00% | ||||||
Term Loan | ANGI Homeservices | Term Loan due November 01, 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding balance of debt instrument | $ 271,563,000 | $ 275,000,000 | |||||
Term Loan | ANGI Homeservices | Term Loan due November 01, 2022 | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Maximum leverage ratio | 4.5 | ||||||
Term Loan | ANGI Homeservices | Term Loan due November 01, 2022 | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Minimum interest coverage ratio | 2.5 | ||||||
Term Loan | ANGI Homeservices | Quarterly Payments for First Three Years | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate (as a percent) | 1.25% | ||||||
Term Loan | ANGI Homeservices | Quarterly Payments in Fourth Year | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate (as a percent) | 2.50% | ||||||
Term Loan | ANGI Homeservices | Quarterly Payments in Fifth Year | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate (as a percent) | 3.75% |
ACCUMULATED OTHER COMPREHENSI50
ACCUMULATED OTHER COMPREHENSIVE LOSS - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | $ 2,430,028,000 | |
Other comprehensive income before reclassifications | 28,479,000 | $ 18,064,000 |
Amounts reclassified to earnings | 139,000 | 714,000 |
Net current period other comprehensive income | 28,618,000 | 18,778,000 |
Balance at end of period | 2,494,527,000 | |
Tax provision (benefit) on accumulated other comprehensive income | 0 | 0 |
Accumulated Other Comprehensive (Loss) Income | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | (103,568,000) | (166,123,000) |
Balance at end of period | $ (74,950,000) | (147,345,000) |
Foreign Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | (170,149,000) | |
Other comprehensive income before reclassifications | 18,062,000 | |
Amounts reclassified to earnings | 714,000 | |
Net current period other comprehensive income | 18,776,000 | |
Balance at end of period | (151,373,000) | |
Unrealized Gains On Available-For-Sale Securities | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | 4,026,000 | |
Other comprehensive income before reclassifications | 2,000 | |
Amounts reclassified to earnings | 0 | |
Net current period other comprehensive income | 2,000 | |
Balance at end of period | $ 4,028,000 |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator: Basic | ||
Net earnings | $ 87,839 | $ 28,463 |
Net earnings attributable to noncontrolling interests | (16,757) | (2,254) |
Net earnings (loss) attributable to IAC shareholders | 71,082 | 26,209 |
Numerator: Diluted | ||
Net earnings | 87,839 | 28,463 |
Net earnings attributable to noncontrolling interests | (16,757) | (2,254) |
Impact from public subsidiaries' dilutive securities | (7,442) | (2,430) |
Net earnings (loss) attributable to IAC shareholders | $ 63,640 | $ 23,779 |
Denominator: Basic | ||
Weighted average basic shares outstanding (shares) | 82,983 | 78,193 |
Denominator: Diluted | ||
Weighted average basic shares outstanding (shares) | 82,983 | 78,193 |
Dilutive securities including stock options and RSUs and subsidiary denominated equity awards (shares) | 6,086 | 4,311 |
Denominator for earnings per share - weighted average shares (shares) | 89,069 | 82,504 |
Earnings (loss) per share attributable to IAC shareholders: Basic | ||
Basic earnings per share (USD per share) | $ 0.86 | $ 0.34 |
Earnings (loss) per share attributable to IAC shareholders: Diluted | ||
Diluted earnings per share (USD per share) | 0.71 | $ 0.29 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Exchange price per share (USD per share) | $ 152.18 | |
Subsidiary Denominated Equity, Stock Options, and RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from calculation of diluted earnings per share (less than or equal to) (shares) | 6,800 | 2,000 |
Market-based awards and PSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from calculation of diluted earnings per share (less than or equal to) (shares) | 200 | 400 |
SEGMENT INFORMATION - Financial
SEGMENT INFORMATION - Financial Data by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 995,075 | $ 760,833 |
Operating income (loss) | 89,950 | 37,060 |
Adjusted EBITDA | 188,398 | 101,976 |
Operating segments | Match Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 407,367 | 298,764 |
Operating income (loss) | 112,233 | 58,871 |
Adjusted EBITDA | 137,741 | 86,231 |
Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 255,311 | 150,745 |
Operating income (loss) | (10,756) | 1,388 |
Adjusted EBITDA | 36,640 | 10,212 |
Operating segments | Video | ||
Segment Reporting Information [Line Items] | ||
Revenue | 66,162 | 50,577 |
Operating income (loss) | (15,875) | (15,589) |
Adjusted EBITDA | (12,940) | (14,732) |
Operating segments | Applications | ||
Segment Reporting Information [Line Items] | ||
Revenue | 131,987 | 158,897 |
Operating income (loss) | 25,461 | 32,768 |
Adjusted EBITDA | 26,752 | 34,933 |
Operating segments | Publishing | ||
Segment Reporting Information [Line Items] | ||
Revenue | 134,322 | 78,080 |
Operating income (loss) | 15,811 | (5,788) |
Adjusted EBITDA | 17,213 | 1,179 |
Operating segments | Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | 23,980 | |
Operating income (loss) | 0 | (5,621) |
Adjusted EBITDA | 0 | (1,532) |
Inter-segment eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenue | (74) | (210) |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | (36,924) | (28,969) |
Adjusted EBITDA | $ (17,008) | $ (14,315) |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Revenue Disaggregated by Service (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 995,075 | $ 760,833 |
Operating segments | Match Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 407,367 | 298,764 |
Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 255,311 | 150,745 |
Operating segments | Video | ||
Segment Reporting Information [Line Items] | ||
Revenue | 66,162 | 50,577 |
Operating segments | Applications | ||
Segment Reporting Information [Line Items] | ||
Revenue | 131,987 | 158,897 |
Operating segments | Publishing | ||
Segment Reporting Information [Line Items] | ||
Revenue | 134,322 | 78,080 |
North America | Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 236,026 | 138,072 |
International | ||
Segment Reporting Information [Line Items] | ||
Revenue | 337,495 | 212,235 |
Europe | Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 19,285 | 12,673 |
Direct revenue | Operating segments | Match Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 392,737 | 287,752 |
Direct revenue | North America | Operating segments | Match Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 211,357 | 175,328 |
Direct revenue | International | Operating segments | Match Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 181,380 | 112,424 |
Indirect revenue | Operating segments | Match Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 14,630 | 11,012 |
Marketplace revenue | North America | Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 165,608 | 129,644 |
Consumer connection revenue | North America | Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 149,060 | 116,000 |
Membership subscription revenue | North America | Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 15,627 | 12,752 |
Other revenue | North America | Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 921 | 892 |
Advertising and other revenue | Operating segments | Video | ||
Segment Reporting Information [Line Items] | ||
Revenue | 11,771 | 4,827 |
Advertising and other revenue | North America | Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 70,418 | 8,428 |
Advertising and other revenue | Europe | Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 247 | 202 |
Consumer connection revenue | Europe | Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 14,367 | 8,465 |
Membership subscription revenue | Europe | Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 4,671 | 4,006 |
Subscription revenue | Operating segments | Video | ||
Segment Reporting Information [Line Items] | ||
Revenue | 34,343 | 24,817 |
Media production and distribution revenue | Operating segments | Video | ||
Segment Reporting Information [Line Items] | ||
Revenue | 20,048 | 20,933 |
Consumer | Operating segments | Applications | ||
Segment Reporting Information [Line Items] | ||
Revenue | 110,074 | 130,332 |
Advertising revenue | Operating segments | Applications | ||
Segment Reporting Information [Line Items] | ||
Revenue | 93,785 | 111,411 |
Total ANGI Homeservices revenue | Operating segments | Applications | ||
Segment Reporting Information [Line Items] | ||
Revenue | 87,431 | 105,098 |
Other | Operating segments | Applications | ||
Segment Reporting Information [Line Items] | ||
Revenue | 6,354 | 6,313 |
Subscription and other revenue | Operating segments | Applications | ||
Segment Reporting Information [Line Items] | ||
Revenue | 16,289 | 18,921 |
Partnerships | Operating segments | Applications | ||
Segment Reporting Information [Line Items] | ||
Revenue | 21,913 | 28,565 |
Advertising revenue | Operating segments | Applications | ||
Segment Reporting Information [Line Items] | ||
Revenue | 21,877 | 28,492 |
Google advertising revenue | Operating segments | Applications | ||
Segment Reporting Information [Line Items] | ||
Revenue | 21,146 | 27,709 |
Other | Operating segments | Applications | ||
Segment Reporting Information [Line Items] | ||
Revenue | 731 | 783 |
Other revenue | Operating segments | Applications | ||
Segment Reporting Information [Line Items] | ||
Revenue | 36 | 73 |
Premium Brands | Operating segments | Publishing | ||
Segment Reporting Information [Line Items] | ||
Revenue | 38,808 | 26,000 |
Advertising revenue | Operating segments | Publishing | ||
Segment Reporting Information [Line Items] | ||
Revenue | 37,585 | 25,655 |
Google advertising revenue | Operating segments | Publishing | ||
Segment Reporting Information [Line Items] | ||
Revenue | 13,638 | 9,789 |
Other | Operating segments | Publishing | ||
Segment Reporting Information [Line Items] | ||
Revenue | 23,947 | 15,866 |
Other revenue | Operating segments | Publishing | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,223 | 345 |
Ask & Other | Operating segments | Publishing | ||
Segment Reporting Information [Line Items] | ||
Revenue | 95,514 | 52,080 |
Advertising revenue | Operating segments | Publishing | ||
Segment Reporting Information [Line Items] | ||
Revenue | 95,305 | 51,892 |
Google advertising revenue | Operating segments | Publishing | ||
Segment Reporting Information [Line Items] | ||
Revenue | 88,692 | 44,687 |
Other | Operating segments | Publishing | ||
Segment Reporting Information [Line Items] | ||
Revenue | 6,613 | 7,205 |
Other revenue | Operating segments | Publishing | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 209 | $ 188 |
SEGMENT INFORMATION - Schedul54
SEGMENT INFORMATION - Schedule of Geographic Information About Revenue and Long-Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Revenue and long-lived assets by geography | |||
Revenue | $ 995,075 | $ 760,833 | |
Property and equipment, net of accumulated depreciation and amortization | 301,865 | $ 315,170 | |
United States | |||
Revenue and long-lived assets by geography | |||
Revenue | 657,580 | 548,598 | |
Property and equipment, net of accumulated depreciation and amortization | 272,881 | 286,541 | |
All other countries | |||
Revenue and long-lived assets by geography | |||
Revenue | 337,495 | $ 212,235 | |
Property and equipment, net of accumulated depreciation and amortization | $ 28,984 | $ 28,629 |
SEGMENT INFORMATION - Schedul55
SEGMENT INFORMATION - Schedule of Reconciliation of Operating Income (Loss) to Adjusted EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Operating income | $ 89,950 | $ 37,060 |
Stock-based compensation expense | 59,082 | 33,975 |
Depreciation | 19,257 | 19,888 |
Amortization of intangibles | 19,953 | 9,161 |
Adjusted EBITDA | 188,398 | 101,976 |
Interest expense | (26,505) | (24,792) |
Other expense, net | (4,619) | (7,714) |
Earnings before income taxes | 58,826 | 4,554 |
Income tax benefit (provision) | 29,013 | 23,909 |
Net earnings | 87,839 | 28,463 |
Net earnings attributable to noncontrolling interests | (16,757) | (2,254) |
Net earnings attributable to IAC shareholders | 71,082 | 26,209 |
Operating segments | Match Group | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Operating income | 112,233 | 58,871 |
Stock-based compensation expense | 16,963 | 18,024 |
Depreciation | 8,147 | 7,589 |
Amortization of intangibles | 242 | 403 |
Acquisition-related Contingent Consideration Fair Value Adjustments | 156 | 1,344 |
Adjusted EBITDA | 137,741 | 86,231 |
Operating segments | ANGI Homeservices | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Operating income | (10,756) | 1,388 |
Stock-based compensation expense | 24,906 | 4,461 |
Depreciation | 6,184 | 2,996 |
Amortization of intangibles | 16,306 | 1,367 |
Acquisition-related Contingent Consideration Fair Value Adjustments | 0 | 0 |
Adjusted EBITDA | 36,640 | 10,212 |
Operating segments | Video | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Operating income | (15,875) | (15,589) |
Stock-based compensation expense | 131 | 0 |
Depreciation | 675 | 544 |
Amortization of intangibles | 2,129 | 313 |
Acquisition-related Contingent Consideration Fair Value Adjustments | 0 | 0 |
Adjusted EBITDA | (12,940) | (14,732) |
Operating segments | Applications | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Operating income | 25,461 | 32,768 |
Stock-based compensation expense | 0 | 0 |
Depreciation | 755 | 1,011 |
Amortization of intangibles | 536 | 606 |
Acquisition-related Contingent Consideration Fair Value Adjustments | 0 | 548 |
Adjusted EBITDA | 26,752 | 34,933 |
Operating segments | Publishing | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Operating income | 15,811 | (5,788) |
Stock-based compensation expense | 0 | 0 |
Depreciation | 662 | 2,019 |
Amortization of intangibles | 740 | 4,948 |
Acquisition-related Contingent Consideration Fair Value Adjustments | 0 | 0 |
Adjusted EBITDA | 17,213 | 1,179 |
Operating segments | Other | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Operating income | 0 | (5,621) |
Stock-based compensation expense | 0 | 1,729 |
Depreciation | 836 | |
Amortization of intangibles | 0 | 1,524 |
Acquisition-related Contingent Consideration Fair Value Adjustments | 0 | 0 |
Adjusted EBITDA | 0 | (1,532) |
Corporate | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Operating income | (36,924) | (28,969) |
Stock-based compensation expense | 17,082 | 9,761 |
Depreciation | 2,834 | 4,893 |
Amortization of intangibles | 0 | 0 |
Acquisition-related Contingent Consideration Fair Value Adjustments | 0 | 0 |
Adjusted EBITDA | $ (17,008) | $ (14,315) |
GUARANTOR AND NON-GUARANTOR F56
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Narrative (Details) | Mar. 31, 2018 |
4.75% Senior Notes due December 15, 2022 | Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate (as a percent) | 4.75% |
GUARANTOR AND NON-GUARANTOR F57
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Cash and cash equivalents | $ 1,657,537 | $ 1,630,809 | $ 1,397,038 | $ 1,329,187 |
Marketable securities | 5,630 | 4,995 | ||
Accounts receivable, net of allowance | 325,263 | 304,027 | ||
Other current assets | 234,502 | 185,374 | ||
Intercompany receivables | 0 | 0 | ||
Property and equipment, net of accumulated depreciation and amortization | 301,865 | 315,170 | ||
Goodwill | 2,601,210 | 2,559,066 | ||
Intangible assets, net of accumulated amortization | 653,205 | 663,737 | ||
Investment in subsidiaries | 0 | 0 | ||
Other non-current assets | 251,762 | 204,632 | ||
TOTAL ASSETS | 6,030,974 | 5,867,810 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current portion of long-term debt | 14,120 | 13,750 | ||
Accounts payable, trade | 79,588 | 76,571 | ||
Other current liabilities | 735,785 | 709,407 | ||
Long-term debt, net | 1,980,579 | 1,979,469 | ||
Income taxes payable | 24,076 | 25,624 | ||
Intercompany liabilities | 0 | 0 | ||
Other long-term liabilities | 67,336 | 73,299 | ||
Redeemable noncontrolling interests | 47,099 | 42,867 | ||
IAC shareholders' equity | 2,494,527 | 2,430,028 | ||
Noncontrolling interests | 587,864 | 516,795 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 6,030,974 | 5,867,810 | ||
IAC | ||||
ASSETS | ||||
Cash and cash equivalents | 895,406 | 585,639 | ||
Marketable securities | 4,990 | 4,995 | ||
Accounts receivable, net of allowance | 0 | 31 | ||
Other current assets | 46,576 | 49,159 | ||
Intercompany receivables | 0 | 0 | ||
Property and equipment, net of accumulated depreciation and amortization | 2,457 | 2,811 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net of accumulated amortization | 0 | 0 | ||
Investment in subsidiaries | 1,789,479 | 2,076,004 | ||
Other non-current assets | 226,063 | 170,073 | ||
TOTAL ASSETS | 2,964,971 | 2,888,712 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current portion of long-term debt | 370 | 0 | ||
Accounts payable, trade | 1,509 | 5,163 | ||
Other current liabilities | 22,053 | 29,489 | ||
Long-term debt, net | 34,216 | 34,572 | ||
Income taxes payable | 12 | 16 | ||
Intercompany liabilities | 411,831 | 388,933 | ||
Other long-term liabilities | 453 | 511 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
IAC shareholders' equity | 2,494,527 | 2,430,028 | ||
Noncontrolling interests | 0 | 0 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 2,964,971 | 2,888,712 | ||
Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | ||
Marketable securities | 0 | 0 | ||
Accounts receivable, net of allowance | 113,977 | 109,289 | ||
Other current assets | 26,567 | 33,387 | ||
Intercompany receivables | 994,153 | 668,703 | ||
Property and equipment, net of accumulated depreciation and amortization | 171,681 | 174,323 | ||
Goodwill | 412,010 | 412,010 | ||
Intangible assets, net of accumulated amortization | 74,343 | 74,852 | ||
Investment in subsidiaries | 300,030 | 554,998 | ||
Other non-current assets | 87,067 | 87,306 | ||
TOTAL ASSETS | 2,179,828 | 2,114,868 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable, trade | 35,916 | 30,469 | ||
Other current liabilities | 88,329 | 88,050 | ||
Long-term debt, net | 0 | 0 | ||
Income taxes payable | 1,528 | 1,605 | ||
Intercompany liabilities | 0 | 0 | ||
Other long-term liabilities | 17,432 | 18,613 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
IAC shareholders' equity | 2,036,623 | 1,976,131 | ||
Noncontrolling interests | 0 | 0 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 2,179,828 | 2,114,868 | ||
Non-Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 762,131 | 1,045,170 | ||
Marketable securities | 640 | 0 | ||
Accounts receivable, net of allowance | 211,286 | 194,707 | ||
Other current assets | 161,359 | 102,828 | ||
Intercompany receivables | 0 | 0 | ||
Property and equipment, net of accumulated depreciation and amortization | 127,727 | 138,036 | ||
Goodwill | 2,189,200 | 2,147,056 | ||
Intangible assets, net of accumulated amortization | 578,862 | 588,885 | ||
Investment in subsidiaries | 0 | 0 | ||
Other non-current assets | 84,436 | 79,688 | ||
TOTAL ASSETS | 4,115,641 | 4,296,370 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current portion of long-term debt | 13,750 | 13,750 | ||
Accounts payable, trade | 42,163 | 40,939 | ||
Other current liabilities | 625,403 | 591,868 | ||
Long-term debt, net | 1,946,363 | 1,944,897 | ||
Income taxes payable | 22,536 | 24,003 | ||
Intercompany liabilities | 582,322 | 279,770 | ||
Other long-term liabilities | 195,255 | 186,610 | ||
Redeemable noncontrolling interests | 47,099 | 42,867 | ||
IAC shareholders' equity | 52,886 | 654,871 | ||
Noncontrolling interests | 587,864 | 516,795 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,115,641 | 4,296,370 | ||
Eliminations | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | ||
Marketable securities | 0 | 0 | ||
Accounts receivable, net of allowance | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Intercompany receivables | (994,153) | (668,703) | ||
Property and equipment, net of accumulated depreciation and amortization | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net of accumulated amortization | 0 | 0 | ||
Investment in subsidiaries | (2,089,509) | (2,631,002) | ||
Other non-current assets | (145,804) | (132,435) | ||
TOTAL ASSETS | (3,229,466) | (3,432,140) | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable, trade | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Long-term debt, net | 0 | 0 | ||
Income taxes payable | 0 | 0 | ||
Intercompany liabilities | (994,153) | (668,703) | ||
Other long-term liabilities | (145,804) | (132,435) | ||
Redeemable noncontrolling interests | 0 | 0 | ||
IAC shareholders' equity | (2,089,509) | (2,631,002) | ||
Noncontrolling interests | 0 | 0 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ (3,229,466) | $ (3,432,140) |
GUARANTOR AND NON-GUARANTOR F58
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Guarantor and Nonguarantor Financial Statements [Abstract] | ||
Foreign earnings repatriated | $ 276,000 | |
Condensed Financial Statements, Captions [Line Items] | ||
Revenue | 995,075 | $ 760,833 |
Operating costs and expenses: | ||
Cost of revenue (exclusive of depreciation shown separately below) | 201,962 | 145,958 |
Selling and marketing expense | 402,832 | 350,411 |
General and administrative expense | 184,184 | 143,595 |
Product development expense | 76,937 | 54,760 |
Depreciation | 19,257 | 19,888 |
Amortization of intangibles | 19,953 | 9,161 |
Total operating costs and expenses | 905,125 | 723,773 |
Operating income | 89,950 | 37,060 |
Equity in earnings of unconsolidated affiliates | 0 | 0 |
Interest expense | (26,505) | (24,792) |
Other (expense) income, net (a) | (4,619) | (7,714) |
Earnings before income taxes | 58,826 | 4,554 |
Income tax benefit (provision) | 29,013 | 23,909 |
Net earnings | 87,839 | 28,463 |
Net earnings attributable to noncontrolling interests | (16,757) | (2,254) |
Net earnings attributable to IAC shareholders | 71,082 | 26,209 |
Comprehensive income (loss) attributable to IAC shareholders | 99,439 | 44,987 |
IAC | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenue | 0 | 0 |
Operating costs and expenses: | ||
Cost of revenue (exclusive of depreciation shown separately below) | 76 | 113 |
Selling and marketing expense | 213 | 326 |
General and administrative expense | 31,409 | 26,136 |
Product development expense | 652 | 570 |
Depreciation | 266 | 438 |
Amortization of intangibles | 0 | 0 |
Total operating costs and expenses | 32,616 | 27,583 |
Operating income | (32,616) | (27,583) |
Equity in earnings of unconsolidated affiliates | 102,750 | 51,456 |
Interest expense | (429) | (5,828) |
Other (expense) income, net (a) | (16,847) | (5,805) |
Earnings before income taxes | 52,858 | 12,240 |
Income tax benefit (provision) | 18,224 | 13,969 |
Net earnings | 71,082 | 26,209 |
Net earnings attributable to noncontrolling interests | 0 | 0 |
Net earnings attributable to IAC shareholders | 71,082 | 26,209 |
Comprehensive income (loss) attributable to IAC shareholders | 99,439 | 44,987 |
Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenue | 212,889 | 181,572 |
Operating costs and expenses: | ||
Cost of revenue (exclusive of depreciation shown separately below) | 56,224 | 32,708 |
Selling and marketing expense | 90,138 | 91,950 |
General and administrative expense | 15,381 | 15,590 |
Product development expense | 14,269 | 15,387 |
Depreciation | 3,340 | 7,133 |
Amortization of intangibles | 509 | 5,085 |
Total operating costs and expenses | 179,861 | 167,853 |
Operating income | 33,028 | 13,719 |
Equity in earnings of unconsolidated affiliates | (327) | (2,683) |
Interest expense | 0 | 0 |
Other (expense) income, net (a) | 286,883 | 6,091 |
Earnings before income taxes | 319,584 | 17,127 |
Income tax benefit (provision) | (10,966) | (9,689) |
Net earnings | 308,618 | 7,438 |
Net earnings attributable to noncontrolling interests | 0 | 0 |
Net earnings attributable to IAC shareholders | 308,618 | 7,438 |
Comprehensive income (loss) attributable to IAC shareholders | 308,961 | 11,491 |
Non-Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenue | 782,260 | 579,474 |
Operating costs and expenses: | ||
Cost of revenue (exclusive of depreciation shown separately below) | 145,712 | 113,310 |
Selling and marketing expense | 312,526 | 258,189 |
General and administrative expense | 137,373 | 101,855 |
Product development expense | 62,016 | 38,803 |
Depreciation | 15,651 | 12,317 |
Amortization of intangibles | 19,444 | 4,076 |
Total operating costs and expenses | 692,722 | 528,550 |
Operating income | 89,538 | 50,924 |
Equity in earnings of unconsolidated affiliates | 0 | 0 |
Interest expense | (26,076) | (18,964) |
Other (expense) income, net (a) | 2,190 | (8,000) |
Earnings before income taxes | 65,652 | 23,960 |
Income tax benefit (provision) | 21,755 | 19,629 |
Net earnings | 87,407 | 43,589 |
Net earnings attributable to noncontrolling interests | (16,757) | (2,254) |
Net earnings attributable to IAC shareholders | 70,650 | 41,335 |
Comprehensive income (loss) attributable to IAC shareholders | 105,327 | 63,768 |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenue | (74) | (213) |
Operating costs and expenses: | ||
Cost of revenue (exclusive of depreciation shown separately below) | (50) | (173) |
Selling and marketing expense | (45) | (54) |
General and administrative expense | 21 | 14 |
Product development expense | 0 | 0 |
Depreciation | 0 | 0 |
Amortization of intangibles | 0 | 0 |
Total operating costs and expenses | (74) | (213) |
Operating income | 0 | 0 |
Equity in earnings of unconsolidated affiliates | (102,423) | (48,773) |
Interest expense | 0 | 0 |
Other (expense) income, net (a) | (276,845) | 0 |
Earnings before income taxes | (379,268) | (48,773) |
Income tax benefit (provision) | 0 | 0 |
Net earnings | (379,268) | (48,773) |
Net earnings attributable to noncontrolling interests | 0 | 0 |
Net earnings attributable to IAC shareholders | (379,268) | (48,773) |
Comprehensive income (loss) attributable to IAC shareholders | $ (414,288) | $ (75,259) |
GUARANTOR AND NON-GUARANTOR F59
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | $ 152,008 | $ 67,863 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | (21,295) | (52,365) |
Capital expenditures | (14,801) | (11,157) |
Proceeds from maturities and sales of marketable debt securities | 5,000 | 75,350 |
Purchases of marketable debt securities | (4,975) | (19,926) |
Purchases of investments | (18,180) | (29) |
Net cash (used in) provided by investing activities | 15 | 97,496 |
Intercompany | 0 | |
Other, net | 9,347 | 213 |
Net cash (used in) provided by investing activities | (44,889) | 89,582 |
Cash flows from financing activities: | ||
Purchase of noncontrolling interests | (234) | (12,259) |
Acquisition-related contingent consideration payments | (185) | (3,860) |
Intercompany | 0 | 0 |
Other, net | 2,476 | 250 |
Net cash used in financing activities | (83,150) | (119,180) |
Total cash provided | 23,969 | 38,265 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 2,746 | 4,002 |
Net increase in cash, cash equivalents, and restricted cash | 26,715 | 42,267 |
Cash, cash equivalents, and restricted cash at beginning of period | 1,633,682 | 1,360,199 |
Cash, cash equivalents, and restricted cash at end of period | 1,660,397 | 1,402,466 |
IAC | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 1,562 | (18,973) |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | (4,134) | 0 |
Capital expenditures | 0 | (87) |
Proceeds from maturities and sales of marketable debt securities | 5,000 | 75,350 |
Purchases of marketable debt securities | (4,975) | (19,926) |
Purchases of investments | (18,180) | 0 |
Net cash (used in) provided by investing activities | 0 | 0 |
Intercompany | (10,671) | |
Other, net | (5,000) | 0 |
Net cash (used in) provided by investing activities | (27,289) | 44,666 |
Cash flows from financing activities: | ||
Purchase of noncontrolling interests | 0 | 0 |
Acquisition-related contingent consideration payments | 0 | 0 |
Intercompany | 308,822 | 17,585 |
Other, net | 2,674 | 251 |
Net cash used in financing activities | 335,468 | (90,505) |
Total cash provided | 309,741 | (64,812) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 26 | 10 |
Net increase in cash, cash equivalents, and restricted cash | 309,767 | (64,802) |
Cash, cash equivalents, and restricted cash at beginning of period | 585,639 | 573,784 |
Cash, cash equivalents, and restricted cash at end of period | 895,406 | 508,982 |
Guarantor Subsidiaries | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 319,686 | 18,406 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | 0 | 0 |
Capital expenditures | (570) | (852) |
Proceeds from maturities and sales of marketable debt securities | 0 | 0 |
Purchases of marketable debt securities | 0 | 0 |
Purchases of investments | 0 | 0 |
Net cash (used in) provided by investing activities | 0 | 0 |
Intercompany | 0 | |
Other, net | 3,884 | 31 |
Net cash (used in) provided by investing activities | 3,314 | (821) |
Cash flows from financing activities: | ||
Purchase of noncontrolling interests | 0 | 0 |
Acquisition-related contingent consideration payments | 0 | 0 |
Intercompany | (323,000) | (17,585) |
Net cash used in financing activities | (323,000) | (17,585) |
Net increase in cash, cash equivalents, and restricted cash | 0 | 0 |
Cash, cash equivalents, and restricted cash at end of period | 0 | 0 |
Non-Guarantor Subsidiaries | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 107,605 | 68,430 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | (17,161) | (52,365) |
Capital expenditures | (14,231) | (10,218) |
Proceeds from maturities and sales of marketable debt securities | 0 | 0 |
Purchases of marketable debt securities | 0 | 0 |
Purchases of investments | 0 | (29) |
Net cash (used in) provided by investing activities | 15 | 97,496 |
Intercompany | 0 | |
Other, net | 10,463 | 182 |
Net cash (used in) provided by investing activities | (20,914) | 35,066 |
Cash flows from financing activities: | ||
Purchase of noncontrolling interests | (234) | (12,259) |
Acquisition-related contingent consideration payments | (185) | (3,860) |
Intercompany | (262,667) | 10,671 |
Other, net | (198) | (1) |
Net cash used in financing activities | (372,463) | (419) |
Total cash provided | (285,772) | 103,077 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 2,720 | 3,992 |
Net increase in cash, cash equivalents, and restricted cash | (283,052) | 107,069 |
Cash, cash equivalents, and restricted cash at beginning of period | 1,048,043 | 786,415 |
Cash, cash equivalents, and restricted cash at end of period | 764,991 | 893,484 |
Eliminations | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | (276,845) | 0 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | 0 | 0 |
Capital expenditures | 0 | 0 |
Proceeds from maturities and sales of marketable debt securities | 0 | 0 |
Purchases of marketable debt securities | 0 | 0 |
Purchases of investments | 0 | 0 |
Net cash (used in) provided by investing activities | 0 | 0 |
Intercompany | 10,671 | |
Other, net | 0 | 0 |
Net cash (used in) provided by investing activities | 0 | 10,671 |
Cash flows from financing activities: | ||
Purchase of noncontrolling interests | 0 | 0 |
Acquisition-related contingent consideration payments | 0 | 0 |
Intercompany | 276,845 | (10,671) |
Net cash used in financing activities | 276,845 | (10,671) |
Net increase in cash, cash equivalents, and restricted cash | 0 | 0 |
Cash, cash equivalents, and restricted cash at end of period | 0 | 0 |
ANGI Homeservices | ||
Cash flows from financing activities: | ||
Principal payment on ANGI Homeservices debt | (3,438) | 0 |
ANGI Homeservices | IAC | ||
Cash flows from financing activities: | ||
Principal payment on ANGI Homeservices debt | 0 | |
ANGI Homeservices | Guarantor Subsidiaries | ||
Cash flows from financing activities: | ||
Principal payment on ANGI Homeservices debt | 0 | |
ANGI Homeservices | Non-Guarantor Subsidiaries | ||
Cash flows from financing activities: | ||
Principal payment on ANGI Homeservices debt | (3,438) | |
ANGI Homeservices | Eliminations | ||
Cash flows from financing activities: | ||
Principal payment on ANGI Homeservices debt | 0 | |
IAC/InterActiveCorp | ||
Cash flows from financing activities: | ||
Principal payment on ANGI Homeservices debt | 0 | (26,590) |
Purchase of treasury stock | (56,424) | |
Proceeds from the exercise of stock options | 24,254 | 13,252 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | (282) | (38,579) |
IAC/InterActiveCorp | IAC | ||
Cash flows from financing activities: | ||
Principal payment on ANGI Homeservices debt | (26,590) | |
Purchase of treasury stock | (56,424) | |
Proceeds from the exercise of stock options | 24,254 | 13,252 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | (282) | (38,579) |
IAC/InterActiveCorp | Guarantor Subsidiaries | ||
Cash flows from financing activities: | ||
Principal payment on ANGI Homeservices debt | 0 | |
Proceeds from the exercise of stock options | 0 | 0 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | 0 | 0 |
IAC/InterActiveCorp | Non-Guarantor Subsidiaries | ||
Cash flows from financing activities: | ||
Principal payment on ANGI Homeservices debt | 0 | |
Proceeds from the exercise of stock options | 0 | 0 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | 0 | 0 |
IAC/InterActiveCorp | Eliminations | ||
Cash flows from financing activities: | ||
Principal payment on ANGI Homeservices debt | 0 | |
Proceeds from the exercise of stock options | 0 | 0 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | 0 | 0 |
Match Group | ||
Cash flows from financing activities: | ||
Purchase of treasury stock | (32,465) | 0 |
Match Group | Non-Guarantor Subsidiaries | ||
Cash flows from financing activities: | ||
Purchase of treasury stock | (32,465) | |
Match Group and ANGI Homeservices | ||
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 1,752 | 7,111 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | (75,028) | (2,081) |
Match Group and ANGI Homeservices | IAC | ||
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 0 | 0 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | 0 | 0 |
Match Group and ANGI Homeservices | Guarantor Subsidiaries | ||
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 0 | 0 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | 0 | 0 |
Match Group and ANGI Homeservices | Non-Guarantor Subsidiaries | ||
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 1,752 | 7,111 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | (75,028) | (2,081) |
Match Group and ANGI Homeservices | Eliminations | ||
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 0 | 0 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | $ 0 | $ 0 |