DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 06, 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 | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Class A | ||
Entity Common Stock, Shares Outstanding | 77,427,724 | |
Class B Convertible Common Stock | ||
Entity Common Stock, Shares Outstanding | 5,789,499 |
CONSOLIDATED BALANCE SHEET (Una
CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 1,644,829 | $ 1,630,809 |
Marketable securities | 120,410 | 4,995 |
Accounts receivable, net of allowance of $17,960 and $11,489, respectively | 343,576 | 304,027 |
Other current assets | 237,957 | 185,374 |
Total current assets | 2,346,772 | 2,125,205 |
Property and equipment, net of accumulated depreciation and amortization of $285,482 and $271,811, respectively | 306,602 | 315,170 |
Goodwill | 2,578,296 | 2,559,066 |
Intangible assets, net of accumulated amortization of $113,117 and $74,957, respectively | 636,351 | 663,737 |
Long-term investments | 217,357 | 64,977 |
Deferred income taxes | 62,245 | 66,321 |
Other non-current assets | 87,661 | 73,334 |
TOTAL ASSETS | 6,235,284 | 5,867,810 |
LIABILITIES: | ||
Current portion of long-term debt | 13,750 | 13,750 |
Accounts payable, trade | 79,107 | 76,571 |
Deferred revenue | 375,138 | 342,483 |
Accrued expenses and other current liabilities | 377,685 | 366,924 |
Total current liabilities | 845,680 | 799,728 |
Long-term debt, net | 1,982,271 | 1,979,469 |
Income taxes payable | 23,942 | 25,624 |
Deferred income taxes | 35,550 | 35,070 |
Other long-term liabilities | 35,174 | 38,229 |
Redeemable noncontrolling interests | 75,719 | 42,867 |
Commitments and contingencies | ||
SHAREHOLDERS' EQUITY: | ||
Additional paid-in capital | 12,008,684 | 12,165,002 |
Retained earnings | 921,268 | 595,038 |
Accumulated other comprehensive loss | (112,717) | (103,568) |
Treasury stock 194,261 and 194,163 shares, respectively | (10,241,434) | (10,226,721) |
Total IAC shareholders' equity | 2,576,079 | 2,430,028 |
Noncontrolling interests | 660,869 | 516,795 |
Total shareholders' equity | 3,236,948 | 2,946,823 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 6,235,284 | 5,867,810 |
Common stock $.001 par value; authorized 1,600,000 shares; issued 261,757 and 260,624 shares, respectively, and outstanding 77,865 and 76,829 shares, respectively | ||
SHAREHOLDERS' EQUITY: | ||
Common stock | 262 | 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 | Jun. 30, 2018 | Dec. 31, 2017 |
Allowance for accounts receivable | $ 17,960 | $ 11,489 |
Accumulated depreciation and amortization of property and equipment | 285,482 | 271,811 |
Accumulated amortization of intangible assets | $ 113,117 | $ 74,957 |
Treasury stock (shares) | 194,261,000 | 194,163,000 |
Common stock $.001 par value; authorized 1,600,000 shares; issued 261,757 and 260,624 shares, respectively, and outstanding 77,865 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) | 261,757,000 | 260,624,000 |
Common stock outstanding (shares) | 77,865,000 | 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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue | $ 1,059,122 | $ 767,387 | $ 2,054,197 | $ 1,528,220 |
Operating costs and expenses: | ||||
Cost of revenue (exclusive of depreciation shown separately below) | 218,224 | 139,033 | 420,186 | 284,991 |
Selling and marketing expense | 369,660 | 320,104 | 772,492 | 670,515 |
General and administrative expense | 188,363 | 150,222 | 372,547 | 293,817 |
Product development expense | 75,445 | 55,430 | 152,382 | 110,190 |
Depreciation | 18,805 | 18,339 | 38,062 | 38,227 |
Amortization of intangibles | 20,188 | 8,624 | 40,141 | 17,785 |
Total operating costs and expenses | 890,685 | 691,752 | 1,795,810 | 1,415,525 |
Operating income | 168,437 | 75,635 | 258,387 | 112,695 |
Interest expense | (27,356) | (24,728) | (53,861) | (49,520) |
Other income, net | 171,141 | 10,230 | 166,522 | 2,516 |
Earnings before income taxes | 312,222 | 61,137 | 371,048 | 65,691 |
Income tax (provision) benefit | (31,368) | 19,420 | (2,355) | 43,329 |
Net earnings | 280,854 | 80,557 | 368,693 | 109,020 |
Net earnings attributable to noncontrolling interests | (62,501) | (14,289) | (79,258) | (16,543) |
Net earnings attributable to IAC shareholders | $ 218,353 | $ 66,268 | $ 289,435 | $ 92,477 |
Per share information attributable to IAC shareholders: | ||||
Basic earnings per share (USD per share) | $ 2.61 | $ 0.84 | $ 3.47 | $ 1.18 |
Diluted earnings per share (USD per share) | $ 2.32 | $ 0.70 | $ 3.05 | $ 0.99 |
Stock-based compensation expense by function: | ||||
Stock-based compensation expense | $ 57,561 | $ 38,915 | $ 116,643 | $ 72,890 |
Cost of revenue | ||||
Stock-based compensation expense by function: | ||||
Stock-based compensation expense | 715 | 473 | 1,425 | 975 |
Selling and marketing expense | ||||
Stock-based compensation expense by function: | ||||
Stock-based compensation expense | 2,077 | 1,643 | 3,842 | 3,450 |
General and administrative expense | ||||
Stock-based compensation expense by function: | ||||
Stock-based compensation expense | 44,875 | 31,751 | 90,501 | 58,691 |
Product development expense | ||||
Stock-based compensation expense by function: | ||||
Stock-based compensation expense | $ 9,894 | $ 5,048 | $ 20,875 | $ 9,774 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 280,854 | $ 80,557 | $ 368,693 | $ 109,020 |
Other comprehensive income, net of tax: | ||||
Change in foreign currency translation adjustment | (46,576) | 18,788 | (11,183) | 40,698 |
Change in unrealized gains and losses of available-for-sale securities (net of tax provision of $4 for both the three and six months ended June 30, 2018, and net of tax benefit of $3,846 for both the three and six months ended June 30, 2017) | 13 | (4,028) | 13 | (4,026) |
Total other comprehensive (loss) income | (46,563) | 14,760 | (11,170) | 36,672 |
Comprehensive income, net of tax | 234,291 | 95,317 | 357,523 | 145,692 |
Components of comprehensive income attributable to noncontrolling interests: | ||||
Net earnings attributable to noncontrolling interests | (62,501) | (14,289) | (79,258) | (16,543) |
Change in foreign currency translation adjustment attributable to noncontrolling interests | 9,119 | (4,153) | 2,083 | (7,287) |
Comprehensive income attributable to noncontrolling interests | (53,382) | (18,442) | (77,175) | (23,830) |
Comprehensive income attributable to IAC shareholders | $ 180,909 | $ 76,875 | $ 280,348 | $ 121,862 |
CONSOLIDATED STATEMENT OF COMP6
CONSOLIDATED STATEMENT OF COMPREHENSIVE OPERATIONS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax provision (benefit) of change in unrealized gains and losses of available-for-sale securities | $ 4 | $ (3,846) | $ 4 | $ (3,846) |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Redeemable Noncontrolling Interests | 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 | 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 earnings | 34,756 | |||||||||||||||||||
Other comprehensive loss, net of tax | (286) | |||||||||||||||||||
Stock-based compensation expense | 800 | |||||||||||||||||||
Purchase of redeemable noncontrolling interests | (59) | |||||||||||||||||||
Adjustment of redeemable noncontrolling interests to fair value | 1,849 | |||||||||||||||||||
Noncontrolling interests created in acquisitions | 2,261 | $ 14,246 | $ 14,246 | |||||||||||||||||
Other | (6,469) | |||||||||||||||||||
Balance at end of period at Jun. 30, 2018 | 75,719 | 75,719 | ||||||||||||||||||
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 earnings | 333,937 | 289,435 | 289,435 | 44,502 | ||||||||||||||||
Other comprehensive loss, net of tax | (10,884) | (9,087) | (9,087) | (1,797) | ||||||||||||||||
Stock-based compensation expense | 115,843 | 36,015 | 36,015 | 79,828 | ||||||||||||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes | 25,891 | 25,891 | $ 1 | 25,890 | ||||||||||||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes (in shares) | 1,133,000 | |||||||||||||||||||
Purchase of treasury stock | (14,713) | (14,713) | (14,713) | |||||||||||||||||
Purchase of noncontrolling interests | (818) | (818) | ||||||||||||||||||
Adjustment of redeemable noncontrolling interests to fair value | (1,849) | (1,849) | (1,849) | |||||||||||||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes, and impact to noncontrolling interests | $ (195,094) | $ (194,809) | $ (194,764) | $ (45) | $ (285) | (19,290) | $ (24,019) | $ (24,002) | $ (17) | 4,729 | ||||||||||
Noncontrolling interests created in acquisitions | $ 2,261 | $ 14,246 | $ 14,246 | |||||||||||||||||
Other | 2,651 | 2,392 | 2,392 | 259 | ||||||||||||||||
Balance at end of period at Jun. 30, 2018 | $ 3,236,948 | $ 2,576,079 | $ 262 | $ 16 | $ 12,008,684 | $ 921,268 | $ (112,717) | $ (10,241,434) | $ 660,869 | |||||||||||
Balance at end of period (shares) at Jun. 30, 2018 | 261,757,000 | 16,157,000 |
CONSOLIDATED STATEMENT OF SHAR8
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) | Jun. 30, 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) | 0.001 |
Common Stock | Class B Convertible Common Stock $.001 Par Value | |
Par value of common stock (USD per share) | $ 0.001 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net earnings | $ 368,693 | $ 109,020 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Stock-based compensation expense | 116,643 | 72,890 |
Depreciation | 38,062 | 38,227 |
Amortization of intangibles | 40,141 | 17,785 |
Bad debt expense | 20,865 | 14,024 |
Deferred income taxes | (11,258) | 6,580 |
Unrealized gains on equity securities, net | (126,559) | 0 |
Gains from the sale of investments and businesses, net | (27,172) | (19,663) |
Other adjustments, net | 8,591 | 18,283 |
Changes in assets and liabilities, net of effects of acquisitions and dispositions: | ||
Accounts receivable | (60,185) | (22,799) |
Other assets | (38,195) | (18,482) |
Accounts payable and other liabilities | 1,063 | (13,650) |
Income taxes payable and receivable | 3,467 | (59,735) |
Deferred revenue | 45,646 | 15,234 |
Net cash provided by operating activities | 379,802 | 157,714 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | (17,513) | (49,164) |
Capital expenditures | (39,696) | (41,821) |
Proceeds from maturities and sales of marketable debt securities | 10,000 | 99,350 |
Purchases of marketable debt securities | (124,397) | (24,909) |
Purchases of investments | (31,180) | (5,105) |
Net proceeds from the sale of investments and businesses | 27,540 | 119,697 |
Other, net | 9,599 | 1,076 |
Net cash (used in) provided by investing activities | (165,647) | 99,124 |
Cash flows from financing activities: | ||
Purchase of noncontrolling interests | (877) | (12,361) |
Acquisition-related contingent consideration payments | (185) | (3,860) |
Other, net | (4,813) | (4,873) |
Net cash used in financing activities | (202,705) | (99,880) |
Total cash provided | 11,450 | 156,958 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 44 | 5,474 |
Net increase in cash, cash equivalents, and restricted cash | 11,494 | 162,432 |
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 | 1,645,176 | 1,522,631 |
Match Group and ANGI Homeservices | ||
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 2,125 | 39,403 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | (136,727) | (28,421) |
ANGI Homeservices | ||
Cash flows from financing activities: | ||
Principal payments on ANGI Homeservices debt | (6,875) | 0 |
Match Group | ||
Cash flows from financing activities: | ||
Purchase of treasury stock | (73,943) | 0 |
IAC/InterActiveCorp | ||
Cash flows from financing activities: | ||
Repurchases of IAC debt | (363) | (31,590) |
Purchase of treasury stock | (7,869) | (56,424) |
Proceeds from the exercise of stock options | 27,317 | 48,146 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | $ (495) | $ (49,900) |
THE COMPANY AND SUMMARY OF SIGN
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 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 Tinder, Match, 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 June 30, 2018 , IAC’s economic and voting interest in Match Group were 81.2% , and 97.6% , respectively. All references to "Match Group" or "MTCH" in this report are to Match Group, Inc. As of June 30, 2018 , IAC’s economic and voting interest in ANGI Homeservices were 86.4% , and 98.5% , respectively. All reference to "ANGI Homeservices" or "ANGI" in this report are to ANGI Homeservices Inc. Basis of Consolidation and Accounting for Investments The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP"). The consolidated financial statements include the accounts of the Company, all entities that are wholly-owned by the Company and all entities in which the Company has a controlling financial interest. 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. Investments in equity securities, other than those of our consolidated subsidiaries and those accounted for under the equity method, are accounted for at fair value or under the measurement alternative upon the adoption of Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , on January 1, 2018, with changes recognized within other income (expense), net each reporting period. Under the measurement alternative, equity investments without readily determinable fair values are carried at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Under the measurement alternative, the value of our equity securities without determinable fair values is generally determined based on a market approach as of the transaction date. An investment will be considered identical or similar if it has identical or similar rights to the equity investments held by the Company. The Company reviews impairment of our equity securities each reporting period when there are qualitative indicators that may indicate impairment. Once the qualitative indicators are identified and the fair value of the security is less than its carrying value, the Company will write down the security to its fair value and record the corresponding charge within other income (expense), net. See " Accounting Pronouncements adopted by the Company" below for further information. 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 debt securities and equity securities without readily determinable fair values; the carrying value of accounts receivable, including the determination of the allowance for doubtful accounts; the determination of revenue reserves; the fair value of acquisition-related contingent consideration arrangements; unrecognized tax benefits; the valuation allowance for deferred income tax assets; and the fair value of and forfeiture rates for stock-based awards, among others. The Company bases its estimates and judgments on historical experience, its forecasts and budgets and other factors that the Company considers relevant. 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"). 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. Google recently announced policy changes related to its Chrome browser, effective in September 2018, which could hurt the distribution of our desktop products through the Chrome Web Store and could impact revenue and profits of some of the businesses within our Applications segment. For the three and six months ended June 30, 2018 , revenue earned from Google was $204.9 million and $416.2 million , representing 19% and 20% , respectively, of the Company's consolidated revenue. For the three and six months ended June 30, 2017 , revenue earned from Google was $174.6 million and $362.4 million , representing 23% and 24% , respectively, of the Company's consolidated revenue. This revenue is earned principally by the businesses comprising the Applications and Publishing segments. For the three and six months ended June 30, 2018 , revenue earned from Google represents 75% and 79% , respectively, of Applications revenue and 71% and 73% , respectively, of Publishing revenue. For both the three and six months ended June 30, 2017, revenue earned from Google represented 83% of Applications revenue and 70% of Publishing revenue. Accounts receivable related to revenue earned from Google totaled $73.4 million and $72.4 million at June 30, 2018 and December 31, 2017 , respectively. Recent Accounting Pronouncements Accounting Pronouncements adopted by the Company In May 2014, the FASB 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 present 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 , for the three and six months ended June 30, 2018. Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Revenue by segment: Match Group $ 421,196 $ 421,196 $ — $ 828,563 $ 828,563 $ — ANGI Homeservices 294,822 294,822 — 550,133 550,133 — Video 62,757 63,018 (261 ) 128,919 129,609 (690 ) Applications 143,074 144,842 (1,768 ) 275,061 276,359 (1,298 ) Publishing 137,355 137,355 — 271,677 271,677 — Inter-segment eliminations (82 ) (82 ) — (156 ) (156 ) — Total $ 1,059,122 $ 1,061,151 $ (2,029 ) $ 2,054,197 $ 2,056,185 $ (1,988 ) Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Operating costs and expenses by segment: Match Group $ 271,031 $ 271,031 $ — $ 566,165 $ 566,165 $ — ANGI Homeservices 271,560 273,678 (2,118 ) 537,627 545,838 (8,211 ) Video 77,739 77,739 — 159,776 160,003 (227 ) Applications 109,997 109,291 706 216,523 215,298 1,225 Publishing 124,548 124,548 — 243,059 243,059 — Corporate 35,810 35,810 — 72,660 72,660 — Total $ 890,685 $ 892,097 $ (1,412 ) $ 1,795,810 $ 1,803,023 $ (7,213 ) Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Operating income (loss) by segment: Match Group $ 150,165 $ 150,165 $ — $ 262,398 $ 262,398 $ — ANGI Homeservices 23,262 21,144 2,118 12,506 4,295 8,211 Video (14,982 ) (14,721 ) (261 ) (30,857 ) (30,394 ) (463 ) Applications 33,077 35,551 (2,474 ) 58,538 61,061 (2,523 ) Publishing 12,807 12,807 — 28,618 28,618 — Corporate (35,892 ) (35,892 ) — (72,816 ) (72,816 ) — Total $ 168,437 $ 169,054 $ (617 ) $ 258,387 $ 253,162 $ 5,225 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Net earnings $ 280,854 $ 281,269 $ (415 ) $ 368,693 $ 364,786 $ 3,907 In January 2016, the FASB issued ASU No. 2016-01, which updates certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Under ASU No. 2016-01, equity securities, other than those of our consolidated subsidiaries and those accounted for under the equity method, 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. There was no cumulative impact to the Company's consolidated financial statements upon adoption of ASU No. 2016-01 on January 1, 2018. The adoption of ASU No. 2016-01 increases the volatility of the Company's other income (expense), net as a result of the remeasurement of these instruments. For the three and six months ended June 30, 2018 , other income, net includes net unrealized gains related to certain equity securities that were adjusted to fair value in accordance with ASU No. 2016-01 of $126.4 million and $126.6 million , respectively. See " Note 6—Fair Value Measurements and Financial Instruments " for additional information. 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: June 30, 2018 December 31, 2017 June 30, 2017 December 31, 2016 (In thousands) Cash and cash equivalents $ 1,644,829 $ 1,630,809 $ 1,522,300 $ 1,329,187 Restricted cash included in other current assets 347 2,873 331 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 $ 1,645,176 $ 1,633,682 $ 1,522,631 $ 1,360,199 Restricted cash at December 31, 2017 primarily supports a letter of credit to a supplier, which was released to the Company in the second quarter of 2018. 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. In the first quarter of 2017, the Senior Notes were redeemed and repurchased and the funds held in escrow for the MyHammer tender offer were returned to the Company. In June 2018, the FASB issued ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting , which largely aligns the measurement and classification guidance for share-based payments granted to non-employees with the guidance for share-based payments granted to employees. The new guidance supersedes Subtopic 505-50, Equity - Equity-Based payments to Nonemployees . ASU No. 2018-07 is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The Company adopted ASU No. 2018-07 effective April 1, 2018 and its adoption did not have a material effect on its consolidated financial statements. The effect of the adoption of ASU No. 2018-07 will be to minimize the volatility of expense related to stock-based awards to non-employees in the future. Accounting Pronouncement not yet adopted by the Company In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which supersedes existing guidance on accounting for leases in "Leases (Topic 840)" and generally requires all leases to be recognized in the statement of financial position. The provisions of ASU No. 2016-02 are effective for reporting periods beginning after December 15, 2018; early adoption is permitted. In July 2018, the FASB issued ASU No. 2018-11, which provides the option of an additional transition method that allows entities to initially apply the new lease guidance at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company expects to implement the transition method option provided by ASU No. 2018-11. The Company will adopt the new lease guidance effective January 1, 2019. The Company is not a lessor, 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 fourth quarter of 2018. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | 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 Applications' revenue largely 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, 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 and the specific customer’s ability to pay its obligation. The time between the Company issuance of an invoice and payments due date is not significant; 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 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 June 30, 2018 , the Company recognized $224.0 million of revenue that was included in the deferred revenue balance as of April 1, 2018. During the six months ended June 30, 2018 , the Company recognized $278.8 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 June 30, 2018 are $375.1 million and $2.0 million , respectively. Non-current deferred revenue is included in “Other long-term liabilities” in the accompanying consolidated balance sheet. 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 and six months ended June 30, 2018 , the Company recognized expense of $84.7 million and $159.8 million , respectively, related to the amortization of these costs. The contract asset balance at June 30, 2018 is $72.8 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 | 6 Months Ended |
Jun. 30, 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 unrecognized tax benefits is recognized in the interim period in which the change occurs. The computation of the annual expected effective income tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected pre-tax income (or loss) for the year, projections of the proportion of income (and/or loss) earned and taxed in foreign jurisdictions, permanent and temporary differences, and the likelihood of the realization of deferred tax assets generated in the current year. The accounting estimates used to compute the provision or benefit for income taxes may change as new events occur, more experience is acquired, additional information is obtained or our tax environment changes. To the extent that the expected annual effective income tax rate changes during a quarter, the effect of the change on prior quarters is included in income tax provision in the quarter in which the change occurs. For the three months ended June 30, 2018, the Company recorded an income tax provision of $31.4 million , which represents an effective income tax rate of 10% . The effective tax rate is lower than the statutory rate of 21% due primarily to excess tax benefits generated by the exercise and vesting of stock-based awards. For the six months ended June 30, 2018 , the Company recorded an income tax provision of $2.4 million , which represents an effective income tax rate of 1% . The effective tax rate is lower than the statutory rate of 21% due primarily to excess tax benefits generated by the exercise and vesting of stock-based awards. For the three and six months ended June 30, 2017, the Company recorded an income tax benefit, despite pre-tax income, of $19.4 million and $43.3 million , respectively, due primarily to excess tax benefits generated by the exercise and vesting 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 tax expense for the three and six months ended June 30, 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 and six months ended June 30, 2018 to the Company’s previously recorded provisional tax expense, including for the impact of the issuance of Treasury Notices 2018-26 and 2018-28 as we continue to assess their impact, which we believe is immaterial. The Company recognizes interest and, if applicable, penalties related to unrecognized tax benefits in the income tax provision. Accruals for interest and penalties are not material. 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 2016. The statute of limitations for the years 2010 through 2012 has been extended to June 30, 2019, and the statute of limitations for the years 2013 and 2014 has been extended to March 31, 2019. Various other jurisdictions are open to examination for tax years beginning with 2009. Income taxes payable include unrecognized tax benefits considered sufficient to pay assessments that may result from examination of prior year tax returns. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. Although management currently believes changes in unrecognized tax benefits from period to period and differences between amounts paid, if any, upon resolution of issues raised in audits and amounts previously provided will not have a material impact on the liquidity, results of operations, or financial condition of the Company, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. At June 30, 2018 and December 31, 2017 , unrecognized tax benefits, including interest and penalties, are $40.5 million and $39.7 million , respectively. If unrecognized tax benefits at June 30, 2018 are subsequently recognized, $37.6 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 $12.7 million by June 30, 2019, due to expirations of statutes of limitations; $12.4 million of which would reduce the income tax provision. The Company regularly assesses the realizability of deferred tax assets considering all available evidence including, among other things, the nature, frequency and severity of prior cumulative losses, forecasts of future taxable income, the duration of statutory carryforward periods, available tax planning and historical experience, to the extent these items are applicable. As of June 30, 2018 , the Company has a gross deferred tax asset of $125.0 million that the Company expects to fully utilize on a more likely than not basis. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2017 , pro forma adjustments include increases in stock-based compensation expense of $11.6 million and $26.3 million , respectively, and amortization of intangibles of $11.5 million and $23.1 million , respectively. Three Months Ended Six Months Ended (In thousands, except per share data) Revenue $ 839,729 $ 1,673,023 Net earnings attributable to IAC shareholders $ 53,996 $ 67,335 Basic earnings per share attributable to IAC shareholders $ 0.68 $ 0.86 Diluted earnings per share attributable to IAC shareholders $ 0.55 $ 0.69 |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 6 Months Ended |
Jun. 30, 2018 | |
Marketable Securities [Abstract] | |
MARKETABLE SECURITIES | MARKETABLE SECURITIES At June 30, 2018 and December 31, 2017 , the fair value of marketable securities are as follows: June 30, 2018 December 31, 2017 (In thousands) Available-for-sale marketable debt securities $ 119,746 $ 4,995 Marketable equity security 664 — Total marketable securities $ 120,410 $ 4,995 At June 30, 2018 , current available-for-sale marketable debt securities are as follows: Amortized Gross Gross Fair Value (In thousands) Treasury discount notes $ 99,795 $ 6 $ — $ 99,801 Commercial paper 19,945 — — 19,945 Total available-for-sale marketable debt securities $ 119,740 $ 6 $ — $ 119,746 The contractual maturities of debt securities classified as current available-for-sale at June 30, 2018 are within one year . There are no investments in available-for-sale marketable debt securities that are in an unrealized loss position as of June 30, 2018 . 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: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) Proceeds from maturities and sales of available-for-sale marketable debt securities $ 5,000 $ 24,000 $ 10,000 $ 99,350 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 and six months ended June 30, 2018 and 2017 . |
FAIR VALUE MEASUREMENTS AND FIN
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS | FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS The Company categorizes its financial instruments measured at fair value into a fair value hierarchy that prioritizes the inputs used in pricing the asset or liability. The three levels of the fair value hierarchy are: • Level 1: Observable inputs obtained from independent sources, such as quoted market prices for identical assets and liabilities in active markets. • Level 2: Other inputs, which are observable directly or indirectly, such as quoted market prices for similar assets or liabilities in active markets, quoted market prices for identical or similar assets or liabilities in markets that are not active and inputs that are derived principally from or corroborated by observable market data. The fair values of the Company's Level 2 financial assets are primarily obtained from observable market prices for identical underlying securities that may not be actively traded. Certain of these securities may have different market prices from multiple market data sources, in which case an average market price is used. • Level 3: Unobservable inputs for which there is little or no market data and require the Company to develop its own assumptions, based on the best information available in the circumstances, about the assumptions market participants would use in pricing the assets or liabilities. See below for a discussion of fair value measurements made using Level 3 inputs. The following tables present the Company's financial instruments that are measured at fair value on a recurring basis: June 30, 2018 Quoted Market 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 $ 726,865 $ — $ — $ 726,865 Commercial paper — 191,852 — 191,852 Treasury discount notes 162,322 — — 162,322 Time deposits — 80,037 — 80,037 Certificates of deposit — 960 — 960 Marketable securities: Treasury discount notes — 99,801 $ — 99,801 Commercial paper — 19,945 — 19,945 Marketable equity security 664 — — 664 Total $ 889,851 $ 392,595 $ — $ 1,282,446 Liabilities: Contingent consideration arrangements $ — $ — $ (1,910 ) $ (1,910 ) December 31, 2017 Quoted Market Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Measurements (In thousands) Assets: Cash equivalents: Money market funds $ 780,425 $ — $ — $ 780,425 Commercial paper — 215,325 — 215,325 Treasury discount notes 100,457 — — 100,457 Time deposits — 60,000 — 60,000 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 Company's financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are its contingent consideration arrangements. Contingent Consideration Arrangements Three Months Ended June 30, 2018 2017 (In thousands) Balance at April 1 $ (1,965 ) $ (21,821 ) Total net losses: Included in earnings: Fair value adjustments (54 ) (2,994 ) Included in other comprehensive income (loss) 109 (14 ) Balance at June 30 $ (1,910 ) $ (24,829 ) Contingent Consideration Arrangements Six Months Ended June 30, 2018 2017 (In thousands) Balance at January 1 $ (2,647 ) $ (33,871 ) Total net losses: Included in earnings: Fair value adjustments (210 ) (4,885 ) Included in other comprehensive loss (1 ) (1,073 ) Settlements 948 15,000 Balance at June 30 $ (1,910 ) $ (24,829 ) Contingent Consideration Arrangements As of June 30, 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 $32.0 million and the gross fair value of these arrangements, before the unamortized discount, at June 30, 2018 is $2.0 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 June 30, 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 June 30, 2018 and December 31, 2017 includes a current portion of $1.9 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 June 30, 2018 , there is no non-current portion of the contingent consideration arrangement liability. Equity securities without readily determinable fair values At June 30, 2018 and December 31, 2017 , the carrying values of the Company's investments in equity securities without readily determinable fair values totaled $216.2 million and $63.4 million , respectively, and are included in "Long-term investments" in the accompanying consolidated balance sheet. Following the adoption of the measurement alternative under ASU No. 2016-01 on January 1, 2018, the Company's equity securities without readily determinable fair values are carried at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. All gains and losses on equity securities without readily determinable fair values, realized and unrealized, are recognized in "other income, net" in the accompanying consolidated statement of operations. The following table presents a summary of realized and unrealized gains and losses recorded in other income (expense), net, as adjustments to the carrying value of equity securities without readily determinable fair values held as of June 30, 2018. The gross unrealized gains relate to the Company's remaining investments in an investee following the sale of a portion of the Company's investment during the second quarter of 2018. Three Months Ended Six Months Ended (In thousands) Upward adjustments (gross unrealized gains) $ 128,786 $ 128,786 Downward adjustments (including impairment) (gross unrealized losses) (2,396 ) (2,588 ) Total $ 126,390 $ 126,198 Realized and unrealized gains and losses for the Company's marketable equity security and investments without a readily determinable fair value for the three and six months ended June 30, 2018 are as follows: Three Months Ended Six Months Ended (In thousands) Realized gains, net, for equity securities sold $ 27,275 $ 27,172 Unrealized gains, net, on equity securities held 126,414 126,559 Total gains recognized, net, in other income, net $ 153,689 $ 153,731 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. The Company's financial assets, comprising equity securities without readily determinable fair values, are adjusted to fair value when observable price changes are identified or an impairment charge is recognized. Such fair value measurements are based predominantly on Level 3 inputs. Financial instruments measured at fair value only for disclosure purposes The following table presents the carrying value and the fair value of financial instruments measured at fair value only for disclosure purposes: June 30, 2018 December 31, 2017 Carrying Fair Carrying Fair (In thousands) Current portion of long-term debt $ (13,750 ) $ (13,613 ) $ (13,750 ) $ (13,802 ) Long-term debt, net (1,982,271 ) (2,156,890 ) (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 | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consists of: June 30, 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 15 450,000 450,000 Total MTCH long-term debt 1,275,000 1,275,000 Less: unamortized original issue discount 8,010 8,668 Less: unamortized debt issuance costs 12,725 13,636 Total MTCH debt, net 1,254,265 1,252,696 ANGI Debt: ANGI Term Loan due November 1, 2022 268,125 275,000 Less: current portion of ANGI Term Loan 13,750 13,750 Less: unamortized debt issuance costs 2,635 2,938 Total ANGI debt, net 251,740 258,312 IAC Debt: 0.875% Exchangeable Senior Notes due October 1, 2022 (the "Exchangeable Notes"); interest payable each April 1 and October 1 517,500 517,500 4.75% Senior Notes due December 15, 2022 (the "4.75% Senior Notes"); interest payable each June 15 and December 15 34,489 34,859 Total IAC long-term debt 551,989 552,359 Less: unamortized original issue discount 60,654 67,158 Less: unamortized debt issuance costs 15,069 16,740 Total IAC debt, net 476,266 468,461 Total long-term debt, net $ 1,982,271 $ 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. The proceeds from these notes, along with cash on hand, were used to redeem the $445.2 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 June 30, 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 both June 30, 2018 and December 31, 2017 , the outstanding balance on the MTCH Term Loan was $425 million and the loan bears interest at LIBOR plus 2.50% . The interest rate of the MTCH Term Loan was 4.59% and 3.85% at June 30, 2018 and December 31, 2017 , respectively. 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 June 30, 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 June 30, 2018 and December 31, 2017 , the outstanding balance on the ANGI Term Loan was $268.1 million and $275.0 million respectively. The ANGI Term Loan bears interest at LIBOR plus 2.00% , which is subject to change in future periods based on ANGI's consolidated net leverage ratio, and was 4.36% and 3.38% at June 30, 2018 and December 31, 2017 , respectively. 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 (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 (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 governing the Exchangeable Notes. 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 June 30, 2018 , the if-converted value of the Exchangeable Notes exceeds its principal amount by $1.1 million based on the Company's stock price on June 30, 2018 . For the three and six months ended June 30, 2018 , the Company incurred interest expense of $5.3 million and $10.5 million , which includes amortization of original issue discount of $3.3 million and $6.5 million , and debt issuance costs of $0.8 million and $1.7 million , respectively. As of June 30, 2018 , the unamortized discount is $60.7 million resulting in a net carrying value of the liability component of $456.8 million . IAC Senior Notes The 4.75% Senior Notes were issued by IAC on December 21, 2012. These Notes are unconditionally guaranteed by certain of our wholly-owned domestic subsidiaries, which are designated as guarantor subsidiaries. See " Note 13—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 June 30, 2018 and December 31, 2017 , there were no outstanding borrowings under the IAC Credit Facility. The annual commitment fee on undrawn funds is 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 | 6 Months Ended |
Jun. 30, 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: Three Months Ended June 30, 2018 Foreign Currency Translation Adjustment Unrealized Gains On Available-For-Sale Securities Accumulated Other Comprehensive Loss (In thousands) Balance as of April 1 $ (74,950 ) $ — $ (74,950 ) Other comprehensive (loss) income before reclassifications (37,589 ) 13 (37,576 ) Amounts reclassified to earnings (191 ) — (191 ) Net current period other comprehensive (loss) income (37,780 ) 13 (37,767 ) Balance as of June 30 $ (112,730 ) $ 13 $ (112,717 ) Three Months Ended June 30, 2017 Foreign Currency Translation Adjustment Unrealized Gains On Available-For-Sale Securities Accumulated Other Comprehensive (Loss) Income (In thousands) Balance as of April 1 $ (151,373 ) $ 4,028 $ (147,345 ) Other comprehensive income before reclassifications 14,664 5 14,669 Amounts reclassified to earnings (29 ) (4,033 ) (a) (4,062 ) Net current period other comprehensive income (loss) 14,635 (4,028 ) 10,607 Balance as of June 30 $ (136,738 ) $ — $ (136,738 ) ___________________________________________________________________________________________ (a) Amount includes a tax benefit of $3.8 million . Six Months Ended June 30, 2018 Foreign Currency Translation Adjustment Unrealized Gains On Available-For-Sale Securities Accumulated Other Comprehensive (Loss) Income (In thousands) Balance as of January 1 $ (103,568 ) $ — $ (103,568 ) Other comprehensive (loss) income before reclassifications (9,110 ) 13 (9,097 ) Amounts reclassified to earnings (52 ) — (52 ) Net current period other comprehensive (loss) income (9,162 ) 13 (9,149 ) Balance as of June 30 $ (112,730 ) $ 13 $ (112,717 ) Six Months Ended June 30, 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 32,726 7 32,733 Amounts reclassified to earnings 685 (4,033 ) (b) (3,348 ) Net current period other comprehensive income (loss) 33,411 (4,026 ) 29,385 Balance as of June 30 $ (136,738 ) $ — $ (136,738 ) ___________________________________________________________________________________________ (b) Amount includes a tax benefit of $3.8 million . The amounts reclassified out of foreign currency translation adjustment into earnings for both the three and six months ended June 30, 2018 and 2017 relate to the liquidation of international subsidiaries. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 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 June 30, 2018 2017 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator: Net earnings $ 280,854 $ 280,854 $ 80,557 $ 80,557 Net earnings attributable to noncontrolling interests (62,501 ) (62,501 ) (14,289 ) (14,289 ) Impact from public subsidiaries' dilutive securities (a) — (6,994 ) — (7,925 ) Net earnings attributable to IAC shareholders $ 218,353 $ 211,359 $ 66,268 $ 58,343 Denominator: Weighted average basic shares outstanding 83,604 83,604 79,067 79,067 Dilutive securities (a) (b) (c) (d) — 7,330 — 4,711 Denominator for earnings per share—weighted average shares (a) (b) (c) (d) 83,604 90,934 79,067 83,778 Earnings per share attributable to IAC shareholders: Earnings per share $ 2.61 $ 2.32 $ 0.84 $ 0.70 Six Months Ended June 30, 2018 2017 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator: Net earnings $ 368,693 $ 368,693 $ 109,020 $ 109,020 Net earnings attributable to noncontrolling interests (79,258 ) (79,258 ) (16,543 ) (16,543 ) Impact from public subsidiaries' dilutive securities (a) — (12,569 ) — (10,355 ) Net earnings attributable to IAC shareholders $ 289,435 $ 276,866 $ 92,477 $ 82,122 Denominator: Weighted average basic shares outstanding 83,296 83,296 78,633 78,633 Dilutive securities (a) (b) (c) (d) — 7,438 — 4,510 Denominator for earnings per share—weighted average shares (a) (b) (c) (d) 83,296 90,734 78,633 83,143 Earnings per share attributable to IAC shareholders: Earnings per share $ 3.47 $ 3.05 $ 1.18 $ 0.99 ________________________ (a) For the three and six months ended June 30, 2018 , it is more dilutive for IAC to settle certain MTCH and ANGI equity awards. For the three and six months ended June 30, 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 and six months ended June 30, 2018 , 3.4 million and 6.9 million potentially dilutive securities, respectively, are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. For the three and six months ended June 30, 2017, less than 0.1 million and 0.5 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 both the three and six months ended June 30, 2018 , 0.2 million shares 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. For both the three and six months ended June 30, 2017, 0.4 million shares 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; therefore, the Exchangeable Notes are only dilutive for periods during which the average price of IAC common stock exceeds the approximate $152.18 per share exchange price per $1,000 principal amount of the Exchangeable Notes. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) Revenue: Match Group $ 421,196 $ 309,572 $ 828,563 $ 608,336 ANGI Homeservices 294,822 180,711 550,133 331,456 Video 62,757 55,182 128,919 105,759 Applications 143,074 143,969 275,061 302,866 Publishing 137,355 78,124 271,677 156,204 Other (a) — — — 23,980 Inter-segment eliminations (82 ) (171 ) (156 ) (381 ) Total $ 1,059,122 $ 767,387 $ 2,054,197 $ 1,528,220 ___________________ (a) The 2017 results at the Other segment consists of the results of The Princeton Review prior to its sale on March 31, 2017. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) Operating Income (Loss): Match Group $ 150,165 $ 82,975 $ 262,398 $ 141,846 ANGI Homeservices 23,262 (4,141 ) 12,506 (2,753 ) Video (14,982 ) (7,829 ) (30,857 ) (23,418 ) Applications 33,077 39,134 58,538 71,902 Publishing 12,807 (2,857 ) 28,618 (8,645 ) Other — — — (5,621 ) Corporate (35,892 ) (31,647 ) (72,816 ) (60,616 ) Total $ 168,437 $ 75,635 $ 258,387 $ 112,695 Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) Adjusted EBITDA: (b) Match Group $ 175,561 $ 109,910 $ 313,302 $ 196,141 ANGI Homeservices $ 66,979 $ 13,666 $ 103,619 $ 23,878 Video $ (11,102 ) $ (6,832 ) $ (24,042 ) $ (21,564 ) Applications $ 35,404 $ 40,546 $ 62,156 $ 75,479 Publishing $ 13,755 $ 2,740 $ 30,968 $ 3,919 Other $ — $ — $ — $ (1,532 ) Corporate $ (15,552 ) $ (15,523 ) $ (32,560 ) $ (29,838 ) ________________________ (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 businesses, 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) Match Group Direct revenue: North America $ 222,163 $ 178,505 $ 433,520 $ 353,833 International 185,564 120,918 366,944 233,342 Direct revenue 407,727 299,423 800,464 587,175 Indirect revenue (principally advertising revenue) 13,469 10,149 28,099 21,161 Total Match Group revenue $ 421,196 $ 309,572 $ 828,563 $ 608,336 ANGI Homeservices Marketplace: Consumer connection revenue $ 187,172 $ 141,163 $ 336,232 $ 257,163 Membership subscription revenue 16,565 13,704 32,192 26,456 Other revenue 998 888 1,919 1,780 Marketplace revenue 204,735 155,755 370,343 285,399 Advertising & Other revenue 72,770 9,736 143,188 18,164 North America 277,505 165,491 513,531 303,563 Consumer connection revenue 12,496 11,170 26,863 19,635 Membership subscription revenue 4,517 3,872 9,188 7,878 Other revenue 304 178 551 380 Europe 17,317 15,220 36,602 27,893 Total ANGI Homeservices revenue $ 294,822 $ 180,711 $ 550,133 $ 331,456 Video Subscription revenue $ 32,724 $ 26,782 $ 67,067 $ 51,599 Media production and distribution revenue 16,267 23,744 36,315 44,677 Advertising and other revenue 13,766 4,656 25,537 9,483 Total Video revenue $ 62,757 $ 55,182 $ 128,919 $ 105,759 Applications Advertising revenue: Google advertising revenue $ 88,821 $ 94,130 $ 176,252 $ 199,228 Other 6,482 8,678 12,836 14,991 Advertising revenue 95,303 102,808 189,088 214,219 Subscription and other revenue 28,262 15,075 44,551 33,996 Consumer 123,565 117,883 233,639 248,215 Advertising revenue: Google advertising revenue 18,746 25,329 39,892 53,038 Other 741 695 1,472 1,478 Advertising revenue 19,487 26,024 41,364 54,516 Other revenue 22 62 58 135 Partnerships 19,509 26,086 41,422 54,651 Total Applications revenue $ 143,074 $ 143,969 $ 275,061 $ 302,866 Publishing Advertising revenue: Google advertising revenue $ 12,353 $ 10,808 $ 25,991 $ 20,597 Other 26,223 17,234 50,170 33,100 Advertising revenue 38,576 28,042 76,161 53,697 Other revenue 1,183 304 2,406 649 Premium Brands 39,759 28,346 78,567 54,346 Advertising revenue: Google advertising revenue 84,563 43,794 173,255 88,481 Other 9,662 5,786 16,275 12,991 Advertising revenue 94,225 49,580 189,530 101,472 Other revenue 3,371 198 3,580 386 Ask & Other 97,596 49,778 193,110 101,858 Total Publishing revenue $ 137,355 $ 78,124 $ 271,677 $ 156,204 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) Revenue: United States $ 708,571 $ 545,020 $ 1,366,151 $ 1,093,618 All other countries 350,551 222,367 688,046 434,602 Total $ 1,059,122 $ 767,387 $ 2,054,197 $ 1,528,220 June 30, December 31, (In thousands) Long-lived assets (excluding goodwill and intangible assets): United States $ 277,566 $ 286,541 All other countries 29,036 28,629 Total $ 306,602 $ 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 June 30, 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 $ 150,165 $ 16,706 $ 8,399 $ 237 $ 54 $ 175,561 ANGI Homeservices 23,262 $ 22,053 $ 5,886 $ 15,778 $ — $ 66,979 Video (14,982 ) $ 1,293 $ 447 $ 2,140 $ — $ (11,102 ) Applications 33,077 $ — $ 773 $ 1,554 $ — $ 35,404 Publishing 12,807 $ — $ 469 $ 479 $ — $ 13,755 Other — $ — $ — $ — $ — $ — Corporate (35,892 ) $ 17,509 $ 2,831 $ — $ — $ (15,552 ) Operating income 168,437 Interest expense (27,356 ) Other income, net 171,141 Earnings before income taxes 312,222 Income tax provision (31,368 ) Net earnings 280,854 Net earnings attributable to noncontrolling interests (62,501 ) Net earnings attributable to IAC shareholders $ 218,353 Three Months Ended June 30, 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 $ 82,975 $ 15,654 $ 7,883 $ 404 $ 2,994 $ 109,910 ANGI Homeservices (4,141 ) $ 11,839 $ 3,218 $ 2,750 $ — $ 13,666 Video (7,829 ) $ 133 $ 552 $ 312 $ — $ (6,832 ) Applications 39,134 $ — $ 921 $ 491 $ — $ 40,546 Publishing (2,857 ) $ — $ 930 $ 4,667 $ — $ 2,740 Other — $ — $ — $ — $ — $ — Corporate (31,647 ) $ 11,289 $ 4,835 $ — $ — $ (15,523 ) Operating income 75,635 Interest expense (24,728 ) Other income, net 10,230 Earnings before income taxes 61,137 Income tax benefit 19,420 Net earnings 80,557 Net earnings attributable to noncontrolling interests (14,289 ) Net earnings attributable to IAC shareholders $ 66,268 Six Months Ended June 30, 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 $ 262,398 $ 33,669 $ 16,546 $ 479 $ 210 $ 313,302 ANGI Homeservices 12,506 $ 46,959 $ 12,070 $ 32,084 $ — $ 103,619 Video (30,857 ) $ 1,424 $ 1,122 $ 4,269 $ — $ (24,042 ) Applications 58,538 $ — $ 1,528 $ 2,090 $ — $ 62,156 Publishing 28,618 $ — $ 1,131 $ 1,219 $ — $ 30,968 Other — $ — $ — $ — $ — $ — Corporate (72,816 ) $ 34,591 $ 5,665 $ — $ — $ (32,560 ) Operating income 258,387 Interest expense (53,861 ) Other income, net 166,522 Earnings before income taxes 371,048 Income tax provision (2,355 ) Net earnings 368,693 Net earnings attributable to noncontrolling interests (79,258 ) Net earnings attributable to IAC shareholders $ 289,435 Six Months Ended June 30, 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 $ 141,846 $ 33,678 $ 15,472 $ 807 $ 4,338 $ 196,141 ANGI Homeservices (2,753 ) $ 16,300 $ 6,214 $ 4,117 $ — $ 23,878 Video (23,418 ) $ 133 $ 1,096 $ 625 $ — $ (21,564 ) Applications 71,902 $ — $ 1,932 $ 1,097 $ 548 $ 75,479 Publishing (8,645 ) $ — $ 2,949 $ 9,615 $ — $ 3,919 Other (5,621 ) $ 1,729 $ 836 $ 1,524 $ — $ (1,532 ) Corporate (60,616 ) $ 21,050 $ 9,728 $ — $ — $ (29,838 ) Operating income 112,695 Interest expense (49,520 ) Other income, net 2,516 Earnings before income taxes 65,691 Income tax benefit 43,329 Net earnings 109,020 Net earnings attributable to noncontrolling interests (16,543 ) Net earnings attributable to IAC shareholders $ 92,477 |
OTHER INCOME, NET
OTHER INCOME, NET | 6 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME, NET | OTHER INCOME, NET Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) Other income, net $171,141 $10,230 $166,522 $2,516 Other income, net consists of: Three months ended June 30, 2018 and 2017 Other income, net in 2018 includes: $126.4 million of net unrealized gains related to certain equity investments that were adjusted to fair value in accordance with ASU No. 2016-01, which was adopted on January 1, 2018; $27.3 million in realized gains related to the sale of certain equity investments; $10.0 million in net foreign currency exchange gains due primarily to the strengthening of the dollar relative to the British Pound and Euro; and interest income of $7.0 million . Other income, net in 2017 includes: $21.2 million in realized gains related to the sales of certain investments; $2.5 million of interest income; $8.0 million mark-to-market charge pertaining to a subsidiary denominated equity award held by a non-employee; $3.6 million in net foreign currency exchange losses due primarily to the weakening of the dollar relative to the British Pound and Euro; and a $1.4 million other-than-temporary impairment charge related to a cost method investment. Six months ended June 30, 2018 and 2017 Other income, net in 2018 includes: $126.6 million of net unrealized gains related to certain equity investments as described above in the three-month discussion; $27.2 million in realized gains related to the sale of certain equity investments; $12.2 million of interest income; and $2.1 million in net foreign currency exchange gains due primarily to the strengthening of the dollar relative to the British Pound and Euro. Other income, net in 2017 includes: $21.3 million in realized gains related to the sale of certain investments; $4.1 million of interest income; $10.6 million mark-to-market charge pertaining to a subsidiary denominated equity award held by a non-employee; $6.2 million in net foreign currency exchange losses due primarily to the weakening of the dollar relative to the British Pound and Euro; and $4.8 million in other-than-temporary impairment charges related to certain cost method investments. |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2018 and December 31, 2017 and for the three and six months ended June 30, 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 June 30, 2018: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Cash and cash equivalents $ 813,872 $ — $ 830,957 $ — $ 1,644,829 Marketable securities 119,746 — 664 — 120,410 Accounts receivable, net of allowance — 118,672 224,904 — 343,576 Other current assets 45,720 26,123 166,114 — 237,957 Intercompany receivables — 1,129,828 — (1,129,828 ) — Property and equipment, net of accumulated depreciation and amortization 4,306 168,685 133,611 — 306,602 Goodwill — 412,010 2,166,286 — 2,578,296 Intangible assets, net of accumulated amortization — 73,933 562,418 — 636,351 Investment in subsidiaries 1,828,822 202,616 — (2,031,438 ) — Other non-current assets 227,459 83,005 222,638 (165,839 ) 367,263 Total assets $ 3,039,925 $ 2,214,872 $ 4,307,592 $ (3,327,105 ) $ 6,235,284 Current portion of long-term debt $ — $ — $ 13,750 $ — $ 13,750 Accounts payable, trade 642 37,027 41,438 — 79,107 Other current liabilities 28,128 89,902 634,793 — 752,823 Long-term debt, net 34,233 — 1,948,038 — 1,982,271 Income taxes payable — 1,434 22,508 — 23,942 Intercompany liabilities 400,448 — 729,380 (1,129,828 ) — Other long-term liabilities 395 18,779 217,389 (165,839 ) 70,724 Redeemable noncontrolling interests — — 75,719 — 75,719 Shareholders' equity (deficit) 2,576,079 2,067,730 (36,292 ) (2,031,438 ) 2,576,079 Noncontrolling interests — — 660,869 — 660,869 Total liabilities and shareholders' equity $ 3,039,925 $ 2,214,872 $ 4,307,592 $ (3,327,105 ) $ 6,235,284 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 2,077,898 554,998 — (2,632,896 ) — Other non-current assets 170,073 87,306 79,688 (132,435 ) 204,632 Total assets $ 2,890,606 $ 2,114,868 $ 4,296,370 $ (3,434,034 ) $ 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 390,827 — 277,876 (668,703 ) — Other long-term liabilities 511 18,613 186,610 (132,435 ) 73,299 Redeemable noncontrolling interests — — 42,867 — 42,867 Shareholders' equity 2,430,028 1,976,131 656,765 (2,632,896 ) 2,430,028 Noncontrolling interests — — 516,795 — 516,795 Total liabilities and shareholders' equity $ 2,890,606 $ 2,114,868 $ 4,296,370 $ (3,434,034 ) $ 5,867,810 Statement of operations for the three months ended June 30, 2018: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Revenue $ — $ 207,964 $ 851,240 $ (82 ) $ 1,059,122 Operating costs and expenses: Cost of revenue (exclusive of depreciation shown separately below) 75 61,215 156,991 (57 ) 218,224 Selling and marketing expense 189 80,302 289,205 (36 ) 369,660 General and administrative expense 31,652 14,259 142,441 11 188,363 Product development expense 564 14,151 60,730 — 75,445 Depreciation 266 3,126 15,413 — 18,805 Amortization of intangibles — 410 19,778 — 20,188 Total operating costs and expenses 32,746 173,463 684,558 (82 ) 890,685 Operating (loss) income (32,746 ) 34,501 166,682 — 168,437 Equity in earnings of unconsolidated affiliates 233,980 8,630 — (242,610 ) — Interest expense (423 ) — (26,933 ) — (27,356 ) Other income, net (a) 6,436 62,204 153,770 (51,269 ) 171,141 Earnings before income taxes 207,247 105,335 293,519 (293,879 ) 312,222 Income tax benefit (provision) 11,106 (27,557 ) (14,917 ) — (31,368 ) Net earnings 218,353 77,778 278,602 (293,879 ) 280,854 Net earnings attributable to noncontrolling interests — — (62,501 ) — (62,501 ) Net earnings attributable to IAC shareholders 218,353 $ 77,778 $ 216,101 $ (293,879 ) $ 218,353 Comprehensive income attributable to IAC shareholders $ 180,909 $ 77,482 $ 170,613 $ (248,095 ) $ 180,909 (a) During the three months ended June 30, 2018, foreign cash of $50 million was repatriated to the U.S. Statement of operations for the three months ended June 30, 2017: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Revenue $ — $ 169,831 $ 597,724 $ (168 ) $ 767,387 Operating costs and expenses: Cost of revenue (exclusive of depreciation shown separately below) 47 30,131 108,989 (134 ) 139,033 Selling and marketing expense 613 82,268 237,269 (46 ) 320,104 General and administrative expense 35,778 14,785 99,647 12 150,222 Product development expense 936 13,792 40,702 — 55,430 Depreciation 445 5,884 12,010 — 18,339 Amortization of intangibles — 4,667 3,957 — 8,624 Total operating costs and expenses 37,819 151,527 502,574 (168 ) 691,752 Operating (loss) income (37,819 ) 18,304 95,150 — 75,635 Equity in earnings of unconsolidated affiliates 91,382 4,706 — (96,088 ) — Interest expense (5,648 ) — (19,080 ) — (24,728 ) Other (expense) income, net (6,821 ) 6,807 10,244 — 10,230 Earnings before income taxes 41,094 29,817 86,314 (96,088 ) 61,137 Income tax benefit (provision) 25,174 (1,139 ) (4,615 ) — 19,420 Net earnings 66,268 28,678 81,699 (96,088 ) 80,557 Net earnings attributable to noncontrolling interests — — (14,289 ) — (14,289 ) Net earnings attributable to IAC shareholders $ 66,268 $ 28,678 $ 67,410 $ (96,088 ) $ 66,268 Comprehensive income attributable to IAC shareholders $ 76,875 $ 30,852 $ 85,140 $ (115,992 ) $ 76,875 Statement of operations for the six months ended June 30, 2018: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Revenue $ — $ 420,853 $ 1,633,500 $ (156 ) $ 2,054,197 Operating costs and expenses: Cost of revenue (exclusive of depreciation shown separately below) 151 117,439 302,703 (107 ) 420,186 Selling and marketing expense 402 170,440 601,731 (81 ) 772,492 General and administrative expense 63,061 29,640 279,814 32 372,547 Product development expense 1,216 28,420 122,746 — 152,382 Depreciation 532 6,466 31,064 — 38,062 Amortization of intangibles — 919 39,222 — 40,141 Total operating costs and expenses 65,362 353,324 1,377,280 (156 ) 1,795,810 Operating (loss) income (65,362 ) 67,529 256,220 — 258,387 Equity in earnings of unconsolidated affiliates 336,730 8,303 — (345,033 ) — Interest expense (852 ) — (53,009 ) — (53,861 ) Other (expense) income, net (a) (10,411 ) 349,087 155,960 (328,114 ) 166,522 Earnings before income taxes 260,105 424,919 359,171 (673,147 ) 371,048 Income tax benefit (provision) 29,330 (38,523 ) 6,838 — (2,355 ) Net earnings 289,435 386,396 366,009 (673,147 ) 368,693 Net earnings attributable to noncontrolling interests — — (79,258 ) — (79,258 ) Net earnings attributable to IAC shareholders 289,435 $ 386,396 $ 286,751 $ (673,147 ) $ 289,435 Comprehensive income attributable to IAC shareholders $ 280,348 $ 386,443 $ 275,940 $ (662,383 ) $ 280,348 (a) During the six months ended June 30, 2018, foreign cash of $326 million was repatriated to the U.S. Statement of operations for the six months ended June 30, 2017: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Revenue $ — $ 351,403 $ 1,177,198 $ (381 ) $ 1,528,220 Operating costs and expenses: Cost of revenue (exclusive of depreciation shown separately below) 160 62,839 222,299 (307 ) 284,991 Selling and marketing expense 939 174,218 495,458 (100 ) 670,515 General and administrative expense 61,914 30,375 201,502 26 293,817 Product development expense 1,506 29,179 79,505 — 110,190 Depreciation 883 13,017 24,327 — 38,227 Amortization of intangibles — 9,752 8,033 — 17,785 Total operating costs and expenses 65,402 319,380 1,031,124 (381 ) 1,415,525 Operating (loss) income (65,402 ) 32,023 146,074 — 112,695 Equity in earnings of unconsolidated affiliates 142,838 2,023 — (144,861 ) — Interest expense (11,476 ) — (38,044 ) — (49,520 ) Other (expense) income, net (12,626 ) 12,898 2,244 — 2,516 Earnings before income taxes 53,334 46,944 110,274 (144,861 ) 65,691 Income tax benefit (provision) 39,143 (10,828 ) 15,014 — 43,329 Net earnings 92,477 36,116 125,288 (144,861 ) 109,020 Net earnings attributable to noncontrolling interests — — (16,543 ) — (16,543 ) Net earnings attributable to IAC shareholders $ 92,477 $ 36,116 $ 108,745 $ (144,861 ) $ 92,477 Comprehensive income attributable to IAC shareholders $ 121,862 $ 42,343 $ 148,908 $ (191,251 ) $ 121,862 Statement of cash flows for the six months ended June 30, 2018: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Net cash (used in) provided by operating activities $ (24,698 ) $ 418,153 $ 314,884 $ (328,537 ) $ 379,802 Cash flows from investing activities: Acquisitions, net of cash acquired (4,142 ) — (13,371 ) — (17,513 ) Capital expenditures (2,200 ) (847 ) (36,649 ) — (39,696 ) Proceeds from maturities and sales of marketable debt securities 10,000 — — — 10,000 Purchases of marketable debt securities (124,397 ) — — — (124,397 ) Purchases of investments (18,180 ) — (13,000 ) — (31,180 ) Net proceeds from the sale of investments and businesses 408 — 27,132 — 27,540 Other, net (5,000 ) 3,884 10,715 — 9,599 Net cash (used in) provided by investing activities (143,511 ) 3,037 (25,173 ) — (165,647 ) Cash flows from financing activities: Repurchases of IAC debt (363 ) — — — (363 ) Principal payments on ANGI Homeservices debt — — (6,875 ) — (6,875 ) Purchase of IAC treasury stock (7,869 ) — — — (7,869 ) Purchase of Match Group treasury stock — — (73,943 ) — (73,943 ) Proceeds from the exercise of IAC stock options 27,317 — — — 27,317 Proceeds from the exercise of Match Group and ANGI Homeservices stock options — — 2,125 — 2,125 Withholding taxes paid on behalf of IAC employees on net settled stock-based awards (495 ) — — — (495 ) Withholding taxes paid on behalf of Match Group and ANGI Homeservices employees on net settled stock-based awards — — (136,727 ) — (136,727 ) Purchase of noncontrolling interests — — (877 ) — (877 ) Acquisition-related contingent consideration payments — — (185 ) — (185 ) Intercompany 375,167 (421,190 ) (282,514 ) 328,537 — Other, net 2,674 — (7,487 ) — (4,813 ) Net cash provided by (used in) financing activities 396,431 (421,190 ) (506,483 ) 328,537 (202,705 ) Total cash provided (used) 228,222 — (216,772 ) — 11,450 Effect of exchange rate changes on cash, cash equivalents, and restricted cash 11 — 33 — 44 Net increase (decrease) in cash, cash equivalents, and restricted cash 228,233 — (216,739 ) — 11,494 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 $ 813,872 $ — $ 831,304 $ — $ 1,645,176 Statement of cash flows for the six months ended June 30, 2017: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries IAC Consolidated (In thousands) Net cash (used in) provided by operating activities $ (40,671 ) $ 40,314 $ 158,071 $ 157,714 Cash flows from investing activities: Acquisitions, net of cash acquired — (2,200 ) (46,964 ) (49,164 ) Capital expenditures (216 ) (657 ) (40,948 ) (41,821 ) Proceeds from maturities and sales of marketable debt securities 99,350 — — 99,350 Purchases of marketable debt securities (24,909 ) — — (24,909 ) Purchases of investments — — (5,105 ) (5,105 ) Net proceeds from the sale of businesses and investments — — 119,697 119,697 Other, net — 120 956 1,076 Net cash provided by (used in) investing activities 74,225 (2,737 ) 27,636 99,124 Cash flows from financing activities: Repurchases of IAC debt (31,590 ) — — (31,590 ) Purchase of IAC treasury stock (56,424 ) — — (56,424 ) Proceeds from the exercise of IAC stock options 48,146 — — 48,146 Proceeds from the exercise of Match Group stock options — — 39,403 39,403 Withholding taxes paid on behalf of IAC employees on net settled stock-based awards (49,900 ) — — (49,900 ) Withholding taxes paid on behalf of Match Group employees on net settled stock-based awards — — (28,421 ) (28,421 ) Purchase of noncontrolling interests — — (12,361 ) (12,361 ) Acquisition-related contingent consideration payments — — (3,860 ) (3,860 ) Intercompany 54,316 (37,577 ) (16,739 ) — Other, net 251 — (5,124 ) (4,873 ) Net cash used in financing activities (35,201 ) (37,577 ) (27,102 ) (99,880 ) Total cash (used) provided (1,647 ) — 158,605 156,958 Effect of exchange rate changes on cash, cash equivalents, and restricted cash 36 — 5,438 5,474 Net (decrease) increase in cash, cash equivalents, and restricted cash (1,611 ) — 164,043 162,432 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 $ 572,173 $ — $ 950,458 $ 1,522,631 |
THE COMPANY AND SUMMARY OF SI23
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | IAC is a leading media and Internet company composed of widely known consumer brands, such as Tinder, Match, 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. |
Basis of Presentation | The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP"). The consolidated financial statements include the accounts of the Company, all entities that are wholly-owned by the Company and all entities in which the Company has a controlling financial interest. 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. Investments in equity securities, other than those of our consolidated subsidiaries and those accounted for under the equity method, are accounted for at fair value or under the measurement alternative upon the adoption of Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , on January 1, 2018, with changes recognized within other income (expense), net each reporting period. Under the measurement alternative, equity investments without readily determinable fair values are carried at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Under the measurement alternative, the value of our equity securities without determinable fair values is generally determined based on a market approach as of the transaction date. An investment will be considered identical or similar if it has identical or similar rights to the equity investments held by the Company. The Company reviews impairment of our equity securities each reporting period when there are qualitative indicators that may indicate impairment. Once the qualitative indicators are identified and the fair value of the security is less than its carrying value, the Company will write down the security to its fair value and record the corresponding charge within other income (expense), net. See " Accounting Pronouncements adopted by the Company" below for further information. 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 for Investments | The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP"). The consolidated financial statements include the accounts of the Company, all entities that are wholly-owned by the Company and all entities in which the Company has a controlling financial interest. 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. Investments in equity securities, other than those of our consolidated subsidiaries and those accounted for under the equity method, are accounted for at fair value or under the measurement alternative upon the adoption of Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , on January 1, 2018, with changes recognized within other income (expense), net each reporting period. Under the measurement alternative, equity investments without readily determinable fair values are carried at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Under the measurement alternative, the value of our equity securities without determinable fair values is generally determined based on a market approach as of the transaction date. An investment will be considered identical or similar if it has identical or similar rights to the equity investments held by the Company. The Company reviews impairment of our equity securities each reporting period when there are qualitative indicators that may indicate impairment. Once the qualitative indicators are identified and the fair value of the security is less than its carrying value, the Company will write down the security to its fair value and record the corresponding charge within other income (expense), net. See " Accounting Pronouncements adopted by the Company" below for further information. 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 debt securities and equity securities without readily determinable fair values; the carrying value of accounts receivable, including the determination of the allowance for doubtful accounts; the determination of revenue reserves; the fair value of acquisition-related contingent consideration arrangements; unrecognized tax benefits; the valuation allowance for deferred income tax assets; and the fair value of and forfeiture rates for stock-based awards, among others. The Company bases its estimates and judgments on historical experience, its forecasts and budgets and other factors that the Company considers relevant. |
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"). 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. Google recently announced policy changes related to its Chrome browser, effective in September 2018, which could hurt the distribution of our desktop products through the Chrome Web Store and could impact revenue and profits of some of the businesses within our Applications segment. |
Recent Accounting Pronouncements | Accounting Pronouncements adopted by the Company In May 2014, the FASB 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 present 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 , for the three and six months ended June 30, 2018. Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Revenue by segment: Match Group $ 421,196 $ 421,196 $ — $ 828,563 $ 828,563 $ — ANGI Homeservices 294,822 294,822 — 550,133 550,133 — Video 62,757 63,018 (261 ) 128,919 129,609 (690 ) Applications 143,074 144,842 (1,768 ) 275,061 276,359 (1,298 ) Publishing 137,355 137,355 — 271,677 271,677 — Inter-segment eliminations (82 ) (82 ) — (156 ) (156 ) — Total $ 1,059,122 $ 1,061,151 $ (2,029 ) $ 2,054,197 $ 2,056,185 $ (1,988 ) Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Operating costs and expenses by segment: Match Group $ 271,031 $ 271,031 $ — $ 566,165 $ 566,165 $ — ANGI Homeservices 271,560 273,678 (2,118 ) 537,627 545,838 (8,211 ) Video 77,739 77,739 — 159,776 160,003 (227 ) Applications 109,997 109,291 706 216,523 215,298 1,225 Publishing 124,548 124,548 — 243,059 243,059 — Corporate 35,810 35,810 — 72,660 72,660 — Total $ 890,685 $ 892,097 $ (1,412 ) $ 1,795,810 $ 1,803,023 $ (7,213 ) Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Operating income (loss) by segment: Match Group $ 150,165 $ 150,165 $ — $ 262,398 $ 262,398 $ — ANGI Homeservices 23,262 21,144 2,118 12,506 4,295 8,211 Video (14,982 ) (14,721 ) (261 ) (30,857 ) (30,394 ) (463 ) Applications 33,077 35,551 (2,474 ) 58,538 61,061 (2,523 ) Publishing 12,807 12,807 — 28,618 28,618 — Corporate (35,892 ) (35,892 ) — (72,816 ) (72,816 ) — Total $ 168,437 $ 169,054 $ (617 ) $ 258,387 $ 253,162 $ 5,225 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Net earnings $ 280,854 $ 281,269 $ (415 ) $ 368,693 $ 364,786 $ 3,907 In January 2016, the FASB issued ASU No. 2016-01, which updates certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Under ASU No. 2016-01, equity securities, other than those of our consolidated subsidiaries and those accounted for under the equity method, 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. There was no cumulative impact to the Company's consolidated financial statements upon adoption of ASU No. 2016-01 on January 1, 2018. The adoption of ASU No. 2016-01 increases the volatility of the Company's other income (expense), net as a result of the remeasurement of these instruments. For the three and six months ended June 30, 2018 , other income, net includes net unrealized gains related to certain equity securities that were adjusted to fair value in accordance with ASU No. 2016-01 of $126.4 million and $126.6 million , respectively. See " Note 6—Fair Value Measurements and Financial Instruments " for additional information. 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: June 30, 2018 December 31, 2017 June 30, 2017 December 31, 2016 (In thousands) Cash and cash equivalents $ 1,644,829 $ 1,630,809 $ 1,522,300 $ 1,329,187 Restricted cash included in other current assets 347 2,873 331 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 $ 1,645,176 $ 1,633,682 $ 1,522,631 $ 1,360,199 Restricted cash at December 31, 2017 primarily supports a letter of credit to a supplier, which was released to the Company in the second quarter of 2018. 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. In the first quarter of 2017, the Senior Notes were redeemed and repurchased and the funds held in escrow for the MyHammer tender offer were returned to the Company. In June 2018, the FASB issued ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting , which largely aligns the measurement and classification guidance for share-based payments granted to non-employees with the guidance for share-based payments granted to employees. The new guidance supersedes Subtopic 505-50, Equity - Equity-Based payments to Nonemployees . ASU No. 2018-07 is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The Company adopted ASU No. 2018-07 effective April 1, 2018 and its adoption did not have a material effect on its consolidated financial statements. The effect of the adoption of ASU No. 2018-07 will be to minimize the volatility of expense related to stock-based awards to non-employees in the future. Accounting Pronouncement not yet adopted by the Company In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which supersedes existing guidance on accounting for leases in "Leases (Topic 840)" and generally requires all leases to be recognized in the statement of financial position. The provisions of ASU No. 2016-02 are effective for reporting periods beginning after December 15, 2018; early adoption is permitted. In July 2018, the FASB issued ASU No. 2018-11, which provides the option of an additional transition method that allows entities to initially apply the new lease guidance at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company expects to implement the transition method option provided by ASU No. 2018-11. The Company will adopt the new lease guidance effective January 1, 2019. The Company is not a lessor, 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 fourth quarter of 2018. |
Reclassifications | Certain prior year amounts have been reclassified to conform to the current year presentation. |
General 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 Applications' revenue largely 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, 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 and the specific customer’s ability to pay its obligation. The time between the Company issuance of an invoice and payments due date is not significant; 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 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 June 30, 2018 , the Company recognized $224.0 million of revenue that was included in the deferred revenue balance as of April 1, 2018. During the six months ended June 30, 2018 , the Company recognized $278.8 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 June 30, 2018 are $375.1 million and $2.0 million , respectively. Non-current deferred revenue is included in “Other long-term liabilities” in the accompanying consolidated balance sheet. 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 and six months ended June 30, 2018 , the Company recognized expense of $84.7 million and $159.8 million , respectively, related to the amortization of these costs. The contract asset balance at June 30, 2018 is $72.8 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. |
THE COMPANY AND SUMMARY OF SI24
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following tables present 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 , for the three and six months ended June 30, 2018. Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Revenue by segment: Match Group $ 421,196 $ 421,196 $ — $ 828,563 $ 828,563 $ — ANGI Homeservices 294,822 294,822 — 550,133 550,133 — Video 62,757 63,018 (261 ) 128,919 129,609 (690 ) Applications 143,074 144,842 (1,768 ) 275,061 276,359 (1,298 ) Publishing 137,355 137,355 — 271,677 271,677 — Inter-segment eliminations (82 ) (82 ) — (156 ) (156 ) — Total $ 1,059,122 $ 1,061,151 $ (2,029 ) $ 2,054,197 $ 2,056,185 $ (1,988 ) Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Operating costs and expenses by segment: Match Group $ 271,031 $ 271,031 $ — $ 566,165 $ 566,165 $ — ANGI Homeservices 271,560 273,678 (2,118 ) 537,627 545,838 (8,211 ) Video 77,739 77,739 — 159,776 160,003 (227 ) Applications 109,997 109,291 706 216,523 215,298 1,225 Publishing 124,548 124,548 — 243,059 243,059 — Corporate 35,810 35,810 — 72,660 72,660 — Total $ 890,685 $ 892,097 $ (1,412 ) $ 1,795,810 $ 1,803,023 $ (7,213 ) Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Operating income (loss) by segment: Match Group $ 150,165 $ 150,165 $ — $ 262,398 $ 262,398 $ — ANGI Homeservices 23,262 21,144 2,118 12,506 4,295 8,211 Video (14,982 ) (14,721 ) (261 ) (30,857 ) (30,394 ) (463 ) Applications 33,077 35,551 (2,474 ) 58,538 61,061 (2,523 ) Publishing 12,807 12,807 — 28,618 28,618 — Corporate (35,892 ) (35,892 ) — (72,816 ) (72,816 ) — Total $ 168,437 $ 169,054 $ (617 ) $ 258,387 $ 253,162 $ 5,225 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Net earnings $ 280,854 $ 281,269 $ (415 ) $ 368,693 $ 364,786 $ 3,907 |
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: June 30, 2018 December 31, 2017 June 30, 2017 December 31, 2016 (In thousands) Cash and cash equivalents $ 1,644,829 $ 1,630,809 $ 1,522,300 $ 1,329,187 Restricted cash included in other current assets 347 2,873 331 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 $ 1,645,176 $ 1,633,682 $ 1,522,631 $ 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: June 30, 2018 December 31, 2017 June 30, 2017 December 31, 2016 (In thousands) Cash and cash equivalents $ 1,644,829 $ 1,630,809 $ 1,522,300 $ 1,329,187 Restricted cash included in other current assets 347 2,873 331 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 $ 1,645,176 $ 1,633,682 $ 1,522,631 $ 1,360,199 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2017 , pro forma adjustments include increases in stock-based compensation expense of $11.6 million and $26.3 million , respectively, and amortization of intangibles of $11.5 million and $23.1 million , respectively. Three Months Ended Six Months Ended (In thousands, except per share data) Revenue $ 839,729 $ 1,673,023 Net earnings attributable to IAC shareholders $ 53,996 $ 67,335 Basic earnings per share attributable to IAC shareholders $ 0.68 $ 0.86 Diluted earnings per share attributable to IAC shareholders $ 0.55 $ 0.69 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Marketable Securities [Abstract] | |
Schedule of Fair Value of Marketable Securities | At June 30, 2018 and December 31, 2017 , the fair value of marketable securities are as follows: June 30, 2018 December 31, 2017 (In thousands) Available-for-sale marketable debt securities $ 119,746 $ 4,995 Marketable equity security 664 — Total marketable securities $ 120,410 $ 4,995 |
Schedule of Current Available-for-sale Marketable Securities | At June 30, 2018 , current available-for-sale marketable debt securities are as follows: Amortized Gross Gross Fair Value (In thousands) Treasury discount notes $ 99,795 $ 6 $ — $ 99,801 Commercial paper 19,945 — — 19,945 Total available-for-sale marketable debt securities $ 119,740 $ 6 $ — $ 119,746 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 |
Schedule of Proceeds from Maturities and Sales of Available-for-sale Marketable Debt Securities | The following table presents the proceeds from maturities and sales of available-for-sale marketable debt securities: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) Proceeds from maturities and sales of available-for-sale marketable debt securities $ 5,000 $ 24,000 $ 10,000 $ 99,350 |
FAIR VALUE MEASUREMENTS AND F27
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the Company's financial instruments that are measured at fair value on a recurring basis: June 30, 2018 Quoted Market 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 $ 726,865 $ — $ — $ 726,865 Commercial paper — 191,852 — 191,852 Treasury discount notes 162,322 — — 162,322 Time deposits — 80,037 — 80,037 Certificates of deposit — 960 — 960 Marketable securities: Treasury discount notes — 99,801 $ — 99,801 Commercial paper — 19,945 — 19,945 Marketable equity security 664 — — 664 Total $ 889,851 $ 392,595 $ — $ 1,282,446 Liabilities: Contingent consideration arrangements $ — $ — $ (1,910 ) $ (1,910 ) December 31, 2017 Quoted Market Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Measurements (In thousands) Assets: Cash equivalents: Money market funds $ 780,425 $ — $ — $ 780,425 Commercial paper — 215,325 — 215,325 Treasury discount notes 100,457 — — 100,457 Time deposits — 60,000 — 60,000 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 Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The Company's financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are its contingent consideration arrangements. Contingent Consideration Arrangements Three Months Ended June 30, 2018 2017 (In thousands) Balance at April 1 $ (1,965 ) $ (21,821 ) Total net losses: Included in earnings: Fair value adjustments (54 ) (2,994 ) Included in other comprehensive income (loss) 109 (14 ) Balance at June 30 $ (1,910 ) $ (24,829 ) Contingent Consideration Arrangements Six Months Ended June 30, 2018 2017 (In thousands) Balance at January 1 $ (2,647 ) $ (33,871 ) Total net losses: Included in earnings: Fair value adjustments (210 ) (4,885 ) Included in other comprehensive loss (1 ) (1,073 ) Settlements 948 15,000 Balance at June 30 $ (1,910 ) $ (24,829 ) |
Schedule of Changes in Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The Company's financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are its contingent consideration arrangements. Contingent Consideration Arrangements Three Months Ended June 30, 2018 2017 (In thousands) Balance at April 1 $ (1,965 ) $ (21,821 ) Total net losses: Included in earnings: Fair value adjustments (54 ) (2,994 ) Included in other comprehensive income (loss) 109 (14 ) Balance at June 30 $ (1,910 ) $ (24,829 ) Contingent Consideration Arrangements Six Months Ended June 30, 2018 2017 (In thousands) Balance at January 1 $ (2,647 ) $ (33,871 ) Total net losses: Included in earnings: Fair value adjustments (210 ) (4,885 ) Included in other comprehensive loss (1 ) (1,073 ) Settlements 948 15,000 Balance at June 30 $ (1,910 ) $ (24,829 ) |
Schedule of Realized and Unrealized Gains and Losses | The following table presents a summary of realized and unrealized gains and losses recorded in other income (expense), net, as adjustments to the carrying value of equity securities without readily determinable fair values held as of June 30, 2018. The gross unrealized gains relate to the Company's remaining investments in an investee following the sale of a portion of the Company's investment during the second quarter of 2018. Three Months Ended Six Months Ended (In thousands) Upward adjustments (gross unrealized gains) $ 128,786 $ 128,786 Downward adjustments (including impairment) (gross unrealized losses) (2,396 ) (2,588 ) Total $ 126,390 $ 126,198 Realized and unrealized gains and losses for the Company's marketable equity security and investments without a readily determinable fair value for the three and six months ended June 30, 2018 are as follows: Three Months Ended Six Months Ended (In thousands) Realized gains, net, for equity securities sold $ 27,275 $ 27,172 Unrealized gains, net, on equity securities held 126,414 126,559 Total gains recognized, net, in other income, net $ 153,689 $ 153,731 |
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: June 30, 2018 December 31, 2017 Carrying Fair Carrying Fair (In thousands) Current portion of long-term debt $ (13,750 ) $ (13,613 ) $ (13,750 ) $ (13,802 ) Long-term debt, net (1,982,271 ) (2,156,890 ) (1,979,469 ) (2,168,108 ) |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of: June 30, 2018 December 31, 2017 (In thousands) 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 15 450,000 450,000 Total MTCH long-term debt 1,275,000 1,275,000 Less: unamortized original issue discount 8,010 8,668 Less: unamortized debt issuance costs 12,725 13,636 Total MTCH debt, net 1,254,265 1,252,696 ANGI Debt: ANGI Term Loan due November 1, 2022 268,125 275,000 Less: current portion of ANGI Term Loan 13,750 13,750 Less: unamortized debt issuance costs 2,635 2,938 Total ANGI debt, net 251,740 258,312 IAC Debt: 0.875% Exchangeable Senior Notes due October 1, 2022 (the "Exchangeable Notes"); interest payable each April 1 and October 1 517,500 517,500 4.75% Senior Notes due December 15, 2022 (the "4.75% Senior Notes"); interest payable each June 15 and December 15 34,489 34,859 Total IAC long-term debt 551,989 552,359 Less: unamortized original issue discount 60,654 67,158 Less: unamortized debt issuance costs 15,069 16,740 Total IAC debt, net 476,266 468,461 Total long-term debt, net $ 1,982,271 $ 1,979,469 |
ACCUMULATED OTHER COMPREHENSI29
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive (Loss) Income | The following tables present the components of accumulated other comprehensive (loss) income and items reclassified out of accumulated other comprehensive loss into earnings: Three Months Ended June 30, 2018 Foreign Currency Translation Adjustment Unrealized Gains On Available-For-Sale Securities Accumulated Other Comprehensive Loss (In thousands) Balance as of April 1 $ (74,950 ) $ — $ (74,950 ) Other comprehensive (loss) income before reclassifications (37,589 ) 13 (37,576 ) Amounts reclassified to earnings (191 ) — (191 ) Net current period other comprehensive (loss) income (37,780 ) 13 (37,767 ) Balance as of June 30 $ (112,730 ) $ 13 $ (112,717 ) Three Months Ended June 30, 2017 Foreign Currency Translation Adjustment Unrealized Gains On Available-For-Sale Securities Accumulated Other Comprehensive (Loss) Income (In thousands) Balance as of April 1 $ (151,373 ) $ 4,028 $ (147,345 ) Other comprehensive income before reclassifications 14,664 5 14,669 Amounts reclassified to earnings (29 ) (4,033 ) (a) (4,062 ) Net current period other comprehensive income (loss) 14,635 (4,028 ) 10,607 Balance as of June 30 $ (136,738 ) $ — $ (136,738 ) ___________________________________________________________________________________________ (a) Amount includes a tax benefit of $3.8 million . Six Months Ended June 30, 2018 Foreign Currency Translation Adjustment Unrealized Gains On Available-For-Sale Securities Accumulated Other Comprehensive (Loss) Income (In thousands) Balance as of January 1 $ (103,568 ) $ — $ (103,568 ) Other comprehensive (loss) income before reclassifications (9,110 ) 13 (9,097 ) Amounts reclassified to earnings (52 ) — (52 ) Net current period other comprehensive (loss) income (9,162 ) 13 (9,149 ) Balance as of June 30 $ (112,730 ) $ 13 $ (112,717 ) Six Months Ended June 30, 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 32,726 7 32,733 Amounts reclassified to earnings 685 (4,033 ) (b) (3,348 ) Net current period other comprehensive income (loss) 33,411 (4,026 ) 29,385 Balance as of June 30 $ (136,738 ) $ — $ (136,738 ) ___________________________________________________________________________________________ (b) Amount includes a tax benefit of $3.8 million . |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings (Loss) Per Share | The following table sets forth the computation of basic and diluted earnings per share attributable to IAC shareholders: Three Months Ended June 30, 2018 2017 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator: Net earnings $ 280,854 $ 280,854 $ 80,557 $ 80,557 Net earnings attributable to noncontrolling interests (62,501 ) (62,501 ) (14,289 ) (14,289 ) Impact from public subsidiaries' dilutive securities (a) — (6,994 ) — (7,925 ) Net earnings attributable to IAC shareholders $ 218,353 $ 211,359 $ 66,268 $ 58,343 Denominator: Weighted average basic shares outstanding 83,604 83,604 79,067 79,067 Dilutive securities (a) (b) (c) (d) — 7,330 — 4,711 Denominator for earnings per share—weighted average shares (a) (b) (c) (d) 83,604 90,934 79,067 83,778 Earnings per share attributable to IAC shareholders: Earnings per share $ 2.61 $ 2.32 $ 0.84 $ 0.70 Six Months Ended June 30, 2018 2017 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator: Net earnings $ 368,693 $ 368,693 $ 109,020 $ 109,020 Net earnings attributable to noncontrolling interests (79,258 ) (79,258 ) (16,543 ) (16,543 ) Impact from public subsidiaries' dilutive securities (a) — (12,569 ) — (10,355 ) Net earnings attributable to IAC shareholders $ 289,435 $ 276,866 $ 92,477 $ 82,122 Denominator: Weighted average basic shares outstanding 83,296 83,296 78,633 78,633 Dilutive securities (a) (b) (c) (d) — 7,438 — 4,510 Denominator for earnings per share—weighted average shares (a) (b) (c) (d) 83,296 90,734 78,633 83,143 Earnings per share attributable to IAC shareholders: Earnings per share $ 3.47 $ 3.05 $ 1.18 $ 0.99 ________________________ (a) For the three and six months ended June 30, 2018 , it is more dilutive for IAC to settle certain MTCH and ANGI equity awards. For the three and six months ended June 30, 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 and six months ended June 30, 2018 , 3.4 million and 6.9 million potentially dilutive securities, respectively, are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. For the three and six months ended June 30, 2017, less than 0.1 million and 0.5 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 both the three and six months ended June 30, 2018 , 0.2 million shares 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. For both the three and six months ended June 30, 2017, 0.4 million shares 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; therefore, the Exchangeable Notes are only dilutive for periods during which the average price of IAC common stock exceeds the approximate $152.18 per share exchange price per $1,000 principal amount of the Exchangeable Notes. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) Revenue: Match Group $ 421,196 $ 309,572 $ 828,563 $ 608,336 ANGI Homeservices 294,822 180,711 550,133 331,456 Video 62,757 55,182 128,919 105,759 Applications 143,074 143,969 275,061 302,866 Publishing 137,355 78,124 271,677 156,204 Other (a) — — — 23,980 Inter-segment eliminations (82 ) (171 ) (156 ) (381 ) Total $ 1,059,122 $ 767,387 $ 2,054,197 $ 1,528,220 ___________________ (a) The 2017 results at the Other segment consists of the results of The Princeton Review prior to its sale on March 31, 2017. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) Operating Income (Loss): Match Group $ 150,165 $ 82,975 $ 262,398 $ 141,846 ANGI Homeservices 23,262 (4,141 ) 12,506 (2,753 ) Video (14,982 ) (7,829 ) (30,857 ) (23,418 ) Applications 33,077 39,134 58,538 71,902 Publishing 12,807 (2,857 ) 28,618 (8,645 ) Other — — — (5,621 ) Corporate (35,892 ) (31,647 ) (72,816 ) (60,616 ) Total $ 168,437 $ 75,635 $ 258,387 $ 112,695 Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) Adjusted EBITDA: (b) Match Group $ 175,561 $ 109,910 $ 313,302 $ 196,141 ANGI Homeservices $ 66,979 $ 13,666 $ 103,619 $ 23,878 Video $ (11,102 ) $ (6,832 ) $ (24,042 ) $ (21,564 ) Applications $ 35,404 $ 40,546 $ 62,156 $ 75,479 Publishing $ 13,755 $ 2,740 $ 30,968 $ 3,919 Other $ — $ — $ — $ (1,532 ) Corporate $ (15,552 ) $ (15,523 ) $ (32,560 ) $ (29,838 ) ________________________ (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 businesses, 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) Match Group Direct revenue: North America $ 222,163 $ 178,505 $ 433,520 $ 353,833 International 185,564 120,918 366,944 233,342 Direct revenue 407,727 299,423 800,464 587,175 Indirect revenue (principally advertising revenue) 13,469 10,149 28,099 21,161 Total Match Group revenue $ 421,196 $ 309,572 $ 828,563 $ 608,336 ANGI Homeservices Marketplace: Consumer connection revenue $ 187,172 $ 141,163 $ 336,232 $ 257,163 Membership subscription revenue 16,565 13,704 32,192 26,456 Other revenue 998 888 1,919 1,780 Marketplace revenue 204,735 155,755 370,343 285,399 Advertising & Other revenue 72,770 9,736 143,188 18,164 North America 277,505 165,491 513,531 303,563 Consumer connection revenue 12,496 11,170 26,863 19,635 Membership subscription revenue 4,517 3,872 9,188 7,878 Other revenue 304 178 551 380 Europe 17,317 15,220 36,602 27,893 Total ANGI Homeservices revenue $ 294,822 $ 180,711 $ 550,133 $ 331,456 Video Subscription revenue $ 32,724 $ 26,782 $ 67,067 $ 51,599 Media production and distribution revenue 16,267 23,744 36,315 44,677 Advertising and other revenue 13,766 4,656 25,537 9,483 Total Video revenue $ 62,757 $ 55,182 $ 128,919 $ 105,759 Applications Advertising revenue: Google advertising revenue $ 88,821 $ 94,130 $ 176,252 $ 199,228 Other 6,482 8,678 12,836 14,991 Advertising revenue 95,303 102,808 189,088 214,219 Subscription and other revenue 28,262 15,075 44,551 33,996 Consumer 123,565 117,883 233,639 248,215 Advertising revenue: Google advertising revenue 18,746 25,329 39,892 53,038 Other 741 695 1,472 1,478 Advertising revenue 19,487 26,024 41,364 54,516 Other revenue 22 62 58 135 Partnerships 19,509 26,086 41,422 54,651 Total Applications revenue $ 143,074 $ 143,969 $ 275,061 $ 302,866 Publishing Advertising revenue: Google advertising revenue $ 12,353 $ 10,808 $ 25,991 $ 20,597 Other 26,223 17,234 50,170 33,100 Advertising revenue 38,576 28,042 76,161 53,697 Other revenue 1,183 304 2,406 649 Premium Brands 39,759 28,346 78,567 54,346 Advertising revenue: Google advertising revenue 84,563 43,794 173,255 88,481 Other 9,662 5,786 16,275 12,991 Advertising revenue 94,225 49,580 189,530 101,472 Other revenue 3,371 198 3,580 386 Ask & Other 97,596 49,778 193,110 101,858 Total Publishing revenue $ 137,355 $ 78,124 $ 271,677 $ 156,204 |
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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) Revenue: United States $ 708,571 $ 545,020 $ 1,366,151 $ 1,093,618 All other countries 350,551 222,367 688,046 434,602 Total $ 1,059,122 $ 767,387 $ 2,054,197 $ 1,528,220 June 30, December 31, (In thousands) Long-lived assets (excluding goodwill and intangible assets): United States $ 277,566 $ 286,541 All other countries 29,036 28,629 Total $ 306,602 $ 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 June 30, 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 $ 150,165 $ 16,706 $ 8,399 $ 237 $ 54 $ 175,561 ANGI Homeservices 23,262 $ 22,053 $ 5,886 $ 15,778 $ — $ 66,979 Video (14,982 ) $ 1,293 $ 447 $ 2,140 $ — $ (11,102 ) Applications 33,077 $ — $ 773 $ 1,554 $ — $ 35,404 Publishing 12,807 $ — $ 469 $ 479 $ — $ 13,755 Other — $ — $ — $ — $ — $ — Corporate (35,892 ) $ 17,509 $ 2,831 $ — $ — $ (15,552 ) Operating income 168,437 Interest expense (27,356 ) Other income, net 171,141 Earnings before income taxes 312,222 Income tax provision (31,368 ) Net earnings 280,854 Net earnings attributable to noncontrolling interests (62,501 ) Net earnings attributable to IAC shareholders $ 218,353 Three Months Ended June 30, 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 $ 82,975 $ 15,654 $ 7,883 $ 404 $ 2,994 $ 109,910 ANGI Homeservices (4,141 ) $ 11,839 $ 3,218 $ 2,750 $ — $ 13,666 Video (7,829 ) $ 133 $ 552 $ 312 $ — $ (6,832 ) Applications 39,134 $ — $ 921 $ 491 $ — $ 40,546 Publishing (2,857 ) $ — $ 930 $ 4,667 $ — $ 2,740 Other — $ — $ — $ — $ — $ — Corporate (31,647 ) $ 11,289 $ 4,835 $ — $ — $ (15,523 ) Operating income 75,635 Interest expense (24,728 ) Other income, net 10,230 Earnings before income taxes 61,137 Income tax benefit 19,420 Net earnings 80,557 Net earnings attributable to noncontrolling interests (14,289 ) Net earnings attributable to IAC shareholders $ 66,268 Six Months Ended June 30, 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 $ 262,398 $ 33,669 $ 16,546 $ 479 $ 210 $ 313,302 ANGI Homeservices 12,506 $ 46,959 $ 12,070 $ 32,084 $ — $ 103,619 Video (30,857 ) $ 1,424 $ 1,122 $ 4,269 $ — $ (24,042 ) Applications 58,538 $ — $ 1,528 $ 2,090 $ — $ 62,156 Publishing 28,618 $ — $ 1,131 $ 1,219 $ — $ 30,968 Other — $ — $ — $ — $ — $ — Corporate (72,816 ) $ 34,591 $ 5,665 $ — $ — $ (32,560 ) Operating income 258,387 Interest expense (53,861 ) Other income, net 166,522 Earnings before income taxes 371,048 Income tax provision (2,355 ) Net earnings 368,693 Net earnings attributable to noncontrolling interests (79,258 ) Net earnings attributable to IAC shareholders $ 289,435 Six Months Ended June 30, 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 $ 141,846 $ 33,678 $ 15,472 $ 807 $ 4,338 $ 196,141 ANGI Homeservices (2,753 ) $ 16,300 $ 6,214 $ 4,117 $ — $ 23,878 Video (23,418 ) $ 133 $ 1,096 $ 625 $ — $ (21,564 ) Applications 71,902 $ — $ 1,932 $ 1,097 $ 548 $ 75,479 Publishing (8,645 ) $ — $ 2,949 $ 9,615 $ — $ 3,919 Other (5,621 ) $ 1,729 $ 836 $ 1,524 $ — $ (1,532 ) Corporate (60,616 ) $ 21,050 $ 9,728 $ — $ — $ (29,838 ) Operating income 112,695 Interest expense (49,520 ) Other income, net 2,516 Earnings before income taxes 65,691 Income tax benefit 43,329 Net earnings 109,020 Net earnings attributable to noncontrolling interests (16,543 ) Net earnings attributable to IAC shareholders $ 92,477 |
OTHER INCOME, NET (Tables)
OTHER INCOME, NET (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income, Net | Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands) Other income, net $171,141 $10,230 $166,522 $2,516 |
GUARANTOR AND NON-GUARANTOR F33
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Guarantor and Nonguarantor Financial Statements [Abstract] | |
Schedule of Condensed Balance Sheet | Balance sheet at June 30, 2018: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Cash and cash equivalents $ 813,872 $ — $ 830,957 $ — $ 1,644,829 Marketable securities 119,746 — 664 — 120,410 Accounts receivable, net of allowance — 118,672 224,904 — 343,576 Other current assets 45,720 26,123 166,114 — 237,957 Intercompany receivables — 1,129,828 — (1,129,828 ) — Property and equipment, net of accumulated depreciation and amortization 4,306 168,685 133,611 — 306,602 Goodwill — 412,010 2,166,286 — 2,578,296 Intangible assets, net of accumulated amortization — 73,933 562,418 — 636,351 Investment in subsidiaries 1,828,822 202,616 — (2,031,438 ) — Other non-current assets 227,459 83,005 222,638 (165,839 ) 367,263 Total assets $ 3,039,925 $ 2,214,872 $ 4,307,592 $ (3,327,105 ) $ 6,235,284 Current portion of long-term debt $ — $ — $ 13,750 $ — $ 13,750 Accounts payable, trade 642 37,027 41,438 — 79,107 Other current liabilities 28,128 89,902 634,793 — 752,823 Long-term debt, net 34,233 — 1,948,038 — 1,982,271 Income taxes payable — 1,434 22,508 — 23,942 Intercompany liabilities 400,448 — 729,380 (1,129,828 ) — Other long-term liabilities 395 18,779 217,389 (165,839 ) 70,724 Redeemable noncontrolling interests — — 75,719 — 75,719 Shareholders' equity (deficit) 2,576,079 2,067,730 (36,292 ) (2,031,438 ) 2,576,079 Noncontrolling interests — — 660,869 — 660,869 Total liabilities and shareholders' equity $ 3,039,925 $ 2,214,872 $ 4,307,592 $ (3,327,105 ) $ 6,235,284 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 2,077,898 554,998 — (2,632,896 ) — Other non-current assets 170,073 87,306 79,688 (132,435 ) 204,632 Total assets $ 2,890,606 $ 2,114,868 $ 4,296,370 $ (3,434,034 ) $ 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 390,827 — 277,876 (668,703 ) — Other long-term liabilities 511 18,613 186,610 (132,435 ) 73,299 Redeemable noncontrolling interests — — 42,867 — 42,867 Shareholders' equity 2,430,028 1,976,131 656,765 (2,632,896 ) 2,430,028 Noncontrolling interests — — 516,795 — 516,795 Total liabilities and shareholders' equity $ 2,890,606 $ 2,114,868 $ 4,296,370 $ (3,434,034 ) $ 5,867,810 |
Schedule of Condensed Income Statement | Statement of operations for the three months ended June 30, 2018: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Revenue $ — $ 207,964 $ 851,240 $ (82 ) $ 1,059,122 Operating costs and expenses: Cost of revenue (exclusive of depreciation shown separately below) 75 61,215 156,991 (57 ) 218,224 Selling and marketing expense 189 80,302 289,205 (36 ) 369,660 General and administrative expense 31,652 14,259 142,441 11 188,363 Product development expense 564 14,151 60,730 — 75,445 Depreciation 266 3,126 15,413 — 18,805 Amortization of intangibles — 410 19,778 — 20,188 Total operating costs and expenses 32,746 173,463 684,558 (82 ) 890,685 Operating (loss) income (32,746 ) 34,501 166,682 — 168,437 Equity in earnings of unconsolidated affiliates 233,980 8,630 — (242,610 ) — Interest expense (423 ) — (26,933 ) — (27,356 ) Other income, net (a) 6,436 62,204 153,770 (51,269 ) 171,141 Earnings before income taxes 207,247 105,335 293,519 (293,879 ) 312,222 Income tax benefit (provision) 11,106 (27,557 ) (14,917 ) — (31,368 ) Net earnings 218,353 77,778 278,602 (293,879 ) 280,854 Net earnings attributable to noncontrolling interests — — (62,501 ) — (62,501 ) Net earnings attributable to IAC shareholders 218,353 $ 77,778 $ 216,101 $ (293,879 ) $ 218,353 Comprehensive income attributable to IAC shareholders $ 180,909 $ 77,482 $ 170,613 $ (248,095 ) $ 180,909 (a) During the three months ended June 30, 2018, foreign cash of $50 million was repatriated to the U.S. Statement of operations for the three months ended June 30, 2017: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Revenue $ — $ 169,831 $ 597,724 $ (168 ) $ 767,387 Operating costs and expenses: Cost of revenue (exclusive of depreciation shown separately below) 47 30,131 108,989 (134 ) 139,033 Selling and marketing expense 613 82,268 237,269 (46 ) 320,104 General and administrative expense 35,778 14,785 99,647 12 150,222 Product development expense 936 13,792 40,702 — 55,430 Depreciation 445 5,884 12,010 — 18,339 Amortization of intangibles — 4,667 3,957 — 8,624 Total operating costs and expenses 37,819 151,527 502,574 (168 ) 691,752 Operating (loss) income (37,819 ) 18,304 95,150 — 75,635 Equity in earnings of unconsolidated affiliates 91,382 4,706 — (96,088 ) — Interest expense (5,648 ) — (19,080 ) — (24,728 ) Other (expense) income, net (6,821 ) 6,807 10,244 — 10,230 Earnings before income taxes 41,094 29,817 86,314 (96,088 ) 61,137 Income tax benefit (provision) 25,174 (1,139 ) (4,615 ) — 19,420 Net earnings 66,268 28,678 81,699 (96,088 ) 80,557 Net earnings attributable to noncontrolling interests — — (14,289 ) — (14,289 ) Net earnings attributable to IAC shareholders $ 66,268 $ 28,678 $ 67,410 $ (96,088 ) $ 66,268 Comprehensive income attributable to IAC shareholders $ 76,875 $ 30,852 $ 85,140 $ (115,992 ) $ 76,875 Statement of operations for the six months ended June 30, 2018: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Revenue $ — $ 420,853 $ 1,633,500 $ (156 ) $ 2,054,197 Operating costs and expenses: Cost of revenue (exclusive of depreciation shown separately below) 151 117,439 302,703 (107 ) 420,186 Selling and marketing expense 402 170,440 601,731 (81 ) 772,492 General and administrative expense 63,061 29,640 279,814 32 372,547 Product development expense 1,216 28,420 122,746 — 152,382 Depreciation 532 6,466 31,064 — 38,062 Amortization of intangibles — 919 39,222 — 40,141 Total operating costs and expenses 65,362 353,324 1,377,280 (156 ) 1,795,810 Operating (loss) income (65,362 ) 67,529 256,220 — 258,387 Equity in earnings of unconsolidated affiliates 336,730 8,303 — (345,033 ) — Interest expense (852 ) — (53,009 ) — (53,861 ) Other (expense) income, net (a) (10,411 ) 349,087 155,960 (328,114 ) 166,522 Earnings before income taxes 260,105 424,919 359,171 (673,147 ) 371,048 Income tax benefit (provision) 29,330 (38,523 ) 6,838 — (2,355 ) Net earnings 289,435 386,396 366,009 (673,147 ) 368,693 Net earnings attributable to noncontrolling interests — — (79,258 ) — (79,258 ) Net earnings attributable to IAC shareholders 289,435 $ 386,396 $ 286,751 $ (673,147 ) $ 289,435 Comprehensive income attributable to IAC shareholders $ 280,348 $ 386,443 $ 275,940 $ (662,383 ) $ 280,348 (a) During the six months ended June 30, 2018, foreign cash of $326 million was repatriated to the U.S. Statement of operations for the six months ended June 30, 2017: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Revenue $ — $ 351,403 $ 1,177,198 $ (381 ) $ 1,528,220 Operating costs and expenses: Cost of revenue (exclusive of depreciation shown separately below) 160 62,839 222,299 (307 ) 284,991 Selling and marketing expense 939 174,218 495,458 (100 ) 670,515 General and administrative expense 61,914 30,375 201,502 26 293,817 Product development expense 1,506 29,179 79,505 — 110,190 Depreciation 883 13,017 24,327 — 38,227 Amortization of intangibles — 9,752 8,033 — 17,785 Total operating costs and expenses 65,402 319,380 1,031,124 (381 ) 1,415,525 Operating (loss) income (65,402 ) 32,023 146,074 — 112,695 Equity in earnings of unconsolidated affiliates 142,838 2,023 — (144,861 ) — Interest expense (11,476 ) — (38,044 ) — (49,520 ) Other (expense) income, net (12,626 ) 12,898 2,244 — 2,516 Earnings before income taxes 53,334 46,944 110,274 (144,861 ) 65,691 Income tax benefit (provision) 39,143 (10,828 ) 15,014 — 43,329 Net earnings 92,477 36,116 125,288 (144,861 ) 109,020 Net earnings attributable to noncontrolling interests — — (16,543 ) — (16,543 ) Net earnings attributable to IAC shareholders $ 92,477 $ 36,116 $ 108,745 $ (144,861 ) $ 92,477 Comprehensive income attributable to IAC shareholders $ 121,862 $ 42,343 $ 148,908 $ (191,251 ) $ 121,862 |
Schedule of Condensed Cash Flow Statement | Statement of cash flows for the six months ended June 30, 2018: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Net cash (used in) provided by operating activities $ (24,698 ) $ 418,153 $ 314,884 $ (328,537 ) $ 379,802 Cash flows from investing activities: Acquisitions, net of cash acquired (4,142 ) — (13,371 ) — (17,513 ) Capital expenditures (2,200 ) (847 ) (36,649 ) — (39,696 ) Proceeds from maturities and sales of marketable debt securities 10,000 — — — 10,000 Purchases of marketable debt securities (124,397 ) — — — (124,397 ) Purchases of investments (18,180 ) — (13,000 ) — (31,180 ) Net proceeds from the sale of investments and businesses 408 — 27,132 — 27,540 Other, net (5,000 ) 3,884 10,715 — 9,599 Net cash (used in) provided by investing activities (143,511 ) 3,037 (25,173 ) — (165,647 ) Cash flows from financing activities: Repurchases of IAC debt (363 ) — — — (363 ) Principal payments on ANGI Homeservices debt — — (6,875 ) — (6,875 ) Purchase of IAC treasury stock (7,869 ) — — — (7,869 ) Purchase of Match Group treasury stock — — (73,943 ) — (73,943 ) Proceeds from the exercise of IAC stock options 27,317 — — — 27,317 Proceeds from the exercise of Match Group and ANGI Homeservices stock options — — 2,125 — 2,125 Withholding taxes paid on behalf of IAC employees on net settled stock-based awards (495 ) — — — (495 ) Withholding taxes paid on behalf of Match Group and ANGI Homeservices employees on net settled stock-based awards — — (136,727 ) — (136,727 ) Purchase of noncontrolling interests — — (877 ) — (877 ) Acquisition-related contingent consideration payments — — (185 ) — (185 ) Intercompany 375,167 (421,190 ) (282,514 ) 328,537 — Other, net 2,674 — (7,487 ) — (4,813 ) Net cash provided by (used in) financing activities 396,431 (421,190 ) (506,483 ) 328,537 (202,705 ) Total cash provided (used) 228,222 — (216,772 ) — 11,450 Effect of exchange rate changes on cash, cash equivalents, and restricted cash 11 — 33 — 44 Net increase (decrease) in cash, cash equivalents, and restricted cash 228,233 — (216,739 ) — 11,494 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 $ 813,872 $ — $ 831,304 $ — $ 1,645,176 Statement of cash flows for the six months ended June 30, 2017: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries IAC Consolidated (In thousands) Net cash (used in) provided by operating activities $ (40,671 ) $ 40,314 $ 158,071 $ 157,714 Cash flows from investing activities: Acquisitions, net of cash acquired — (2,200 ) (46,964 ) (49,164 ) Capital expenditures (216 ) (657 ) (40,948 ) (41,821 ) Proceeds from maturities and sales of marketable debt securities 99,350 — — 99,350 Purchases of marketable debt securities (24,909 ) — — (24,909 ) Purchases of investments — — (5,105 ) (5,105 ) Net proceeds from the sale of businesses and investments — — 119,697 119,697 Other, net — 120 956 1,076 Net cash provided by (used in) investing activities 74,225 (2,737 ) 27,636 99,124 Cash flows from financing activities: Repurchases of IAC debt (31,590 ) — — (31,590 ) Purchase of IAC treasury stock (56,424 ) — — (56,424 ) Proceeds from the exercise of IAC stock options 48,146 — — 48,146 Proceeds from the exercise of Match Group stock options — — 39,403 39,403 Withholding taxes paid on behalf of IAC employees on net settled stock-based awards (49,900 ) — — (49,900 ) Withholding taxes paid on behalf of Match Group employees on net settled stock-based awards — — (28,421 ) (28,421 ) Purchase of noncontrolling interests — — (12,361 ) (12,361 ) Acquisition-related contingent consideration payments — — (3,860 ) (3,860 ) Intercompany 54,316 (37,577 ) (16,739 ) — Other, net 251 — (5,124 ) (4,873 ) Net cash used in financing activities (35,201 ) (37,577 ) (27,102 ) (99,880 ) Total cash (used) provided (1,647 ) — 158,605 156,958 Effect of exchange rate changes on cash, cash equivalents, and restricted cash 36 — 5,438 5,474 Net (decrease) increase in cash, cash equivalents, and restricted cash (1,611 ) — 164,043 162,432 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 $ 572,173 $ — $ 950,458 $ 1,522,631 |
THE COMPANY AND SUMMARY OF SI34
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue and Other [Line Items] | ||||||
Retained earnings | $ 921,268 | $ 921,268 | $ 595,038 | |||
Revenue | 1,059,122 | $ 767,387 | 2,054,197 | $ 1,528,220 | ||
Accounts receivable, net of allowance | 343,576 | 343,576 | 304,027 | |||
Operating segments | Publishing | ||||||
Revenue and Other [Line Items] | ||||||
Revenue | 137,355 | 78,124 | 271,677 | 156,204 | ||
Operating segments | Applications | ||||||
Revenue and Other [Line Items] | ||||||
Revenue | 143,074 | 143,969 | 275,061 | 302,866 | ||
Operating segments | Match Group | ||||||
Revenue and Other [Line Items] | ||||||
Revenue | 421,196 | 309,572 | 828,563 | 608,336 | ||
Google Inc. | ||||||
Revenue and Other [Line Items] | ||||||
Accounts receivable, net of allowance | 73,400 | 73,400 | 72,400 | |||
Google Inc. | Publishing and Applications | ||||||
Revenue and Other [Line Items] | ||||||
Revenue | $ 204,900 | $ 174,600 | $ 416,200 | $ 362,400 | ||
Google Inc. | Revenue | Customer concentration risk | ||||||
Revenue and Other [Line Items] | ||||||
Concentration risk (as a percent) | 19.00% | 23.00% | 20.00% | 24.00% | ||
Google Inc. | Revenue | Customer concentration risk | Operating segments | Publishing | ||||||
Revenue and Other [Line Items] | ||||||
Concentration risk (as a percent) | 71.00% | 70.00% | 73.00% | 70.00% | ||
Google Inc. | Revenue | Customer concentration risk | Operating segments | Applications | ||||||
Revenue and Other [Line Items] | ||||||
Concentration risk (as a percent) | 75.00% | 83.00% | 79.00% | 83.00% | ||
Match Group, Inc. | ||||||
Revenue and Other [Line Items] | ||||||
Economic interest (as a percent) | 81.20% | 81.20% | ||||
Voting interest (as a percent) | 97.60% | 97.60% | ||||
ANGI Homeservices | ||||||
Revenue and Other [Line Items] | ||||||
Economic interest (as a percent) | 86.40% | 86.40% | ||||
Voting interest (as a percent) | 98.50% | 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 SI35
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Retained earnings | $ 921,268 | $ 921,268 | $ 595,038 | |||
Deferred tax liability | 35,550 | 35,550 | 35,070 | |||
Deferred revenue | 375,138 | 375,138 | 342,483 | |||
Unrealized gains, net, on equity securities held | 126,414 | $ 8,000 | 126,559 | $ 10,600 | ||
Accounting Standards Update 2014-09 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Retained earnings | $ 40,200 | $ 3,400 | ||||
Accounting Standards Update 2016-01 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Unrealized gains, net, on equity securities held | $ 126,400 | $ 126,600 | ||||
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 SI36
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Adoption of ASU 2014-09 (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | $ 1,059,122 | $ 767,387 | $ 2,054,197 | $ 1,528,220 |
Operating costs and expenses | 890,685 | 691,752 | 1,795,810 | 1,415,525 |
Operating income (loss) | 168,437 | 75,635 | 258,387 | 112,695 |
Net earnings | 280,854 | 80,557 | 368,693 | 109,020 |
Under ASC 605 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 1,061,151 | 2,056,185 | ||
Operating costs and expenses | 892,097 | 1,803,023 | ||
Operating income (loss) | 169,054 | 253,162 | ||
Net earnings | 281,269 | 364,786 | ||
Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | (2,029) | (1,988) | ||
Operating costs and expenses | (1,412) | (7,213) | ||
Operating income (loss) | (617) | 5,225 | ||
Net earnings | (415) | 3,907 | ||
Operating segments | Match Group | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 421,196 | 309,572 | 828,563 | 608,336 |
Operating costs and expenses | 271,031 | 566,165 | ||
Operating income (loss) | 150,165 | 82,975 | 262,398 | 141,846 |
Operating segments | Match Group | Under ASC 605 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 421,196 | 828,563 | ||
Operating costs and expenses | 271,031 | 566,165 | ||
Operating income (loss) | 150,165 | 262,398 | ||
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 | 0 | ||
Operating costs and expenses | 0 | 0 | ||
Operating income (loss) | 0 | 0 | ||
Operating segments | ANGI Homeservices | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 294,822 | 180,711 | 550,133 | 331,456 |
Operating costs and expenses | 271,560 | 537,627 | ||
Operating income (loss) | 23,262 | (4,141) | 12,506 | (2,753) |
Operating segments | ANGI Homeservices | Under ASC 605 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 294,822 | 550,133 | ||
Operating costs and expenses | 273,678 | 545,838 | ||
Operating income (loss) | 21,144 | 4,295 | ||
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 | 0 | ||
Operating costs and expenses | (2,118) | (8,211) | ||
Operating income (loss) | 2,118 | 8,211 | ||
Operating segments | Video | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 62,757 | 55,182 | 128,919 | 105,759 |
Operating costs and expenses | 77,739 | 159,776 | ||
Operating income (loss) | (14,982) | (7,829) | (30,857) | (23,418) |
Operating segments | Video | Under ASC 605 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 63,018 | 129,609 | ||
Operating costs and expenses | 77,739 | 160,003 | ||
Operating income (loss) | (14,721) | (30,394) | ||
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 | (261) | (690) | ||
Operating costs and expenses | 0 | (227) | ||
Operating income (loss) | (261) | (463) | ||
Operating segments | Applications | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 143,074 | 143,969 | 275,061 | 302,866 |
Operating costs and expenses | 109,997 | 216,523 | ||
Operating income (loss) | 33,077 | 39,134 | 58,538 | 71,902 |
Operating segments | Applications | Under ASC 605 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 144,842 | 276,359 | ||
Operating costs and expenses | 109,291 | 215,298 | ||
Operating income (loss) | 35,551 | 61,061 | ||
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 | (1,768) | (1,298) | ||
Operating costs and expenses | 706 | 1,225 | ||
Operating income (loss) | (2,474) | (2,523) | ||
Operating segments | Publishing | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 137,355 | 78,124 | 271,677 | 156,204 |
Operating costs and expenses | 124,548 | 243,059 | ||
Operating income (loss) | 12,807 | (2,857) | 28,618 | (8,645) |
Operating segments | Publishing | Under ASC 605 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 137,355 | 271,677 | ||
Operating costs and expenses | 124,548 | 243,059 | ||
Operating income (loss) | 12,807 | 28,618 | ||
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 | 0 | ||
Operating costs and expenses | 0 | 0 | ||
Operating income (loss) | 0 | 0 | ||
Operating segments | Other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 23,980 | |||
Operating income (loss) | 0 | 0 | 0 | (5,621) |
Inter-segment eliminations | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | (82) | (171) | (156) | (381) |
Inter-segment eliminations | Under ASC 605 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | (82) | (156) | ||
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 | 0 | ||
Corporate | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Operating costs and expenses | 35,810 | 72,660 | ||
Operating income (loss) | (35,892) | $ (31,647) | (72,816) | $ (60,616) |
Corporate | Under ASC 605 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Operating costs and expenses | 35,810 | 72,660 | ||
Operating income (loss) | (35,892) | (72,816) | ||
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 | 0 | ||
Operating income (loss) | $ 0 | $ 0 |
THE COMPANY AND SUMMARY OF SI37
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 1,644,829 | $ 1,630,809 | $ 1,522,300 | $ 1,329,187 |
Restricted cash included in other current assets | 347 | 2,873 | 331 | 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 | $ 1,645,176 | $ 1,633,682 | $ 1,522,631 | $ 1,360,199 |
REVENUE RECOGNITION - Narrative
REVENUE RECOGNITION - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | ||||
Deferred revenue | $ 332,200 | |||
Deferred revenue recognized during period | $ 224,000 | $ 278,800 | ||
Deferred revenue | 375,138 | 375,138 | $ 342,483 | |
Noncurrent deferred revenue | 2,000 | 2,000 | ||
Amortization expense recognized related to contract cost assets | 84,700 | 159,800 | ||
Capitalization of costs incurred to obtain contract | $ 72,800 | $ 72,800 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Income tax provision (benefit) | $ 31,368 | $ (19,420) | $ 2,355 | $ (43,329) | |
Effective income tax rate (as a percent) | 10.00% | 1.00% | |||
Total unrecognized tax benefits including interest and penalties | $ 40,500 | $ 40,500 | $ 39,700 | ||
Unrecognized tax benefit, if subsequently recognized would reduce income tax expense | 37,600 | 37,600 | $ 37,200 | ||
Decrease in unrecognized tax benefit, reasonably possible within twelve months | 12,700 | 12,700 | |||
Decrease in unrecognized tax benefit, reasonably possible within twelve months which would reduce the income tax provision | 12,400 | 12,400 | |||
Decrease in unrecognized tax benefit which would reduce the income tax provision | $ 125,000 | $ 125,000 |
BUSINESS COMBINATION - Narrativ
BUSINESS COMBINATION - Narrative (Details) - USD ($) $ in Millions | Sep. 29, 2017 | Jun. 30, 2017 | Jun. 30, 2017 |
Business Acquisition [Line Items] | |||
Pro-forma adjustment to increase share-based compensation | $ 11.6 | $ 26.3 | |
Pro-forma adjustment to increase amortization of intangibles | $ 11.5 | $ 23.1 | |
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) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Business Combinations [Abstract] | ||
Revenue | $ 839,729 | $ 1,673,023 |
Net earnings attributable to IAC shareholders | $ 53,996 | $ 67,335 |
Basic earnings per share attributable to IAC shareholders (USD per share) | $ 0.68 | $ 0.86 |
Diluted earnings per share attributable to IAC shareholders (USD per share) | $ 0.55 | $ 0.69 |
MARKETABLE SECURITIES - Narrati
MARKETABLE SECURITIES - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Marketable Securities [Abstract] | ||||
Contractual maturity of current available-for-sale securities | 1 year | |||
Available-for-sale securities in an unrealized loss position | $ 0 | $ 0 | ||
Unrealized gains, net, on equity securities held | 126,414,000 | $ 8,000,000 | 126,559,000 | $ 10,600,000 |
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 | Jun. 30, 2018 | Dec. 31, 2017 |
Marketable Securities [Abstract] | ||
Available-for-sale marketable debt securities | $ 119,746 | $ 4,995 |
Marketable equity security | 664 | 0 |
Total marketable securities | $ 120,410 | $ 4,995 |
MARKETABLE SECURITIES - Schedul
MARKETABLE SECURITIES - Schedule of Current Available-for-Sale Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Marketable Securities | ||
Amortized Cost | $ 119,740 | $ 4,995 |
Gross Unrealized Gains | 6 | 0 |
Gross Unrealized Losses | 0 | 0 |
Available-for-sale marketable debt securities | 119,746 | 4,995 |
Treasury discount notes | ||
Schedule of Available-for-sale Marketable Securities | ||
Amortized Cost | 99,795 | |
Gross Unrealized Gains | 6 | |
Gross Unrealized Losses | 0 | |
Available-for-sale marketable debt securities | 99,801 | |
Commercial paper | ||
Schedule of Available-for-sale Marketable Securities | ||
Amortized Cost | 19,945 | 4,995 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Available-for-sale marketable debt securities | $ 19,945 | $ 4,995 |
MARKETABLE SECURITIES - Sched45
MARKETABLE SECURITIES - Schedule of Proceeds from Maturities and Sales of Current Available-for-Sale Marketable Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Marketable Securities [Abstract] | ||||
Proceeds from maturities and sales of available-for-sale marketable debt securities | $ 5,000 | $ 24,000 | $ 10,000 | $ 99,350 |
FAIR VALUE MEASUREMENTS AND F46
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Narrative (Details) $ in Millions | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Contingent Consideration Arrangements | ||
Contingent consideration, maximum amount at balance sheet date | $ 32 | |
Contingent consideration, fair value at balance sheet date with a maximum limit | 2 | |
Contingent consideration, at fair value, current | 1.9 | $ 0.6 |
Contingent consideration, at fair value, noncurrent | 2 | |
Assets measured at fair value on a nonrecurring basis | ||
Equity securities without readily determinable fair values | $ 216.2 | $ 63.4 |
Measurement Input, Discount Rate | Contingent Consideration Arrangements | ||
Contingent Consideration Arrangements | ||
Contingent consideration, discount rates (as a percent) | 0.12 | 0.12 |
FAIR VALUE MEASUREMENTS AND F47
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Marketable securities | $ 119,746 | $ 4,995 |
Marketable equity security | 664 | 0 |
Total | 1,282,446 | 1,167,397 |
Liabilities: | ||
Contingent consideration arrangements | (1,910) | (2,647) |
Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Total | 889,851 | 880,882 |
Liabilities: | ||
Contingent consideration arrangements | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total | 392,595 | 286,515 |
Liabilities: | ||
Contingent consideration arrangements | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Total | 0 | 0 |
Liabilities: | ||
Contingent consideration arrangements | (1,910) | (2,647) |
Money market funds | ||
Assets: | ||
Cash equivalents | 726,865 | 780,425 |
Money market funds | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash equivalents | 726,865 | 780,425 |
Money market funds | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Money market funds | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Commercial paper | ||
Assets: | ||
Cash equivalents | 191,852 | 215,325 |
Marketable securities | 19,945 | 4,995 |
Commercial paper | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Commercial paper | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash equivalents | 191,852 | 215,325 |
Marketable securities | 19,945 | 4,995 |
Commercial paper | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Treasury discount notes | ||
Assets: | ||
Cash equivalents | 162,322 | 100,457 |
Marketable securities | 99,801 | |
Treasury discount notes | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash equivalents | 162,322 | 100,457 |
Marketable securities | 0 | |
Treasury discount notes | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Marketable securities | 99,801 | |
Treasury discount notes | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | |
Time deposits | ||
Assets: | ||
Cash equivalents | 80,037 | 60,000 |
Time deposits | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Time deposits | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash equivalents | 80,037 | 60,000 |
Time deposits | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Certificates of deposit | ||
Assets: | ||
Cash equivalents | 960 | 6,195 |
Certificates of deposit | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Certificates of deposit | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash equivalents | 960 | 6,195 |
Certificates of deposit | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash equivalents | 0 | $ 0 |
Marketable equity security | ||
Assets: | ||
Marketable equity security | 664 | |
Marketable equity security | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Marketable equity security | 664 | |
Marketable equity security | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Marketable equity security | 0 | |
Marketable equity security | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Marketable equity security | $ 0 |
FAIR VALUE MEASUREMENTS AND F48
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - 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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Contingent Consideration Arrangements | ||||
Balance at beginning of period | $ (1,965) | $ (21,821) | $ (2,647) | $ (33,871) |
Fair value adjustments | (54) | (2,994) | (210) | (4,885) |
Included in other comprehensive income (loss) | 109 | (14) | (1) | (1,073) |
Settlements | 948 | 15,000 | ||
Balance at end of period | $ (1,910) | $ (24,829) | $ (1,910) | $ (24,829) |
FAIR VALUE MEASUREMENTS AND F49
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Realized and Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Equity Securities, FV-NI, Unrealized Gain (Loss) [Abstract] | ||||
Upward adjustments (gross unrealized gains) | $ 128,786 | $ 128,786 | ||
Downward adjustments (including impairment) (gross unrealized losses) | (2,396) | (2,588) | ||
Total | 126,390 | 126,198 | ||
Equity Securities, FV-NI, Gain (Loss) [Abstract] | ||||
Realized gains, net, for equity securities sold | 27,275 | 27,172 | ||
Unrealized gains, net, on equity securities held | 126,414 | $ 8,000 | 126,559 | $ 10,600 |
Total gains recognized, net, in other income, net | $ 153,689 | $ 153,731 |
FAIR VALUE MEASUREMENTS AND F50
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Carrying Value and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Current portion of long-term debt | $ (13,750) | $ (13,750) |
Long-term debt, net of current portion | (1,982,271) | (1,979,469) |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Current portion of long-term debt | (13,750) | (13,750) |
Long-term debt, net of current portion | (1,982,271) | (1,979,469) |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Current portion of long-term debt | (13,613) | (13,802) |
Long-term debt, net of current portion | $ (2,156,890) | $ (2,168,108) |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) | Oct. 02, 2017USD ($)$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | Dec. 04, 2017USD ($) | 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 | $ 300,000,000 | ||||
Borrowings outstanding of credit facility | 0 | $ 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 | 1,275,000,000 | |||
Net unamortized discount (premium) | 8,010,000 | 8,010,000 | 8,668,000 | |||
Match Group, Inc. | Match Group Credit Agreement | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 500,000,000 | 500,000,000 | ||||
Borrowings outstanding of credit facility | 0 | $ 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 | $ 456,800,000 | $ 456,800,000 | |||
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 | 3,400,000 | ||||
Outstanding warrants (shares) | shares | 3,400,000 | 3,400,000 | ||||
Exercise price of warrants (USD per share) | $ / shares | $ 229.70 | $ 229.70 | ||||
Interest Expense, Debt | $ 5,300,000 | $ 10,500,000 | ||||
Amortization of Debt Discount (Premium) | 3,300,000 | 6,500,000 | ||||
Amortization of debt issuance costs | 800,000 | 1,700,000 | ||||
Net unamortized discount (premium) | $ 60,700,000 | $ 60,700,000 | ||||
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% | 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% | 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% | 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% | 6.375% | ||
Face amount of debt instrument | $ 400,000,000 | |||||
Outstanding balance of debt instrument | $ 400,000,000 | $ 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% | 5.00% | |||
Outstanding balance of debt instrument | $ 450,000,000 | $ 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 | $ 445,200,000 | |||||
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 | $ 425,000,000 | |||
Term Loan | Match Group, Inc. | Match Group Term Loan due November 16, 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 4.59% | 3.85% | ||||
Term Loan | Match Group, Inc. | Match Group Term Loan due November 16, 2022 | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 2.50% | |||||
Term Loan | ANGI Homeservices | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 4.36% | 3.38% | ||||
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 | $ 268,125,000 | $ 268,125,000 | $ 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% | 1.25% | ||||
Term Loan | ANGI Homeservices | Quarterly Payments in Fourth Year | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (as a percent) | 2.50% | 2.50% | ||||
Term Loan | ANGI Homeservices | Quarterly Payments in Fifth Year | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (as a percent) | 3.75% | 3.75% |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long-Term Debt (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 04, 2017 | Jun. 01, 2016 |
Debt Instrument [Line Items] | ||||
Less: current portion of long-term debt | $ 13,750,000 | $ 13,750,000 | ||
Long-term debt, net | 1,982,271,000 | 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 | 8,010,000 | 8,668,000 | ||
Less: unamortized debt issuance costs | 12,725,000 | 13,636,000 | ||
Long-term debt, net | 1,254,265,000 | 1,252,696,000 | ||
Match Group, Inc. | Term Loan | Term Loan due November 16, 2022 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 425,000,000 | 425,000,000 | ||
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% | ||
ANGI Homeservices | ||||
Debt Instrument [Line Items] | ||||
Less: current portion of long-term debt | $ 13,750,000 | 13,750,000 | ||
Less: unamortized debt issuance costs | 2,635,000 | 2,938,000 | ||
Long-term debt, net | 251,740,000 | 258,312,000 | ||
ANGI Homeservices | Term Loan | Term Loan due November 01, 2022 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 268,125,000 | 275,000,000 | ||
IAC/InterActiveCorp | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 551,989,000 | 552,359,000 | ||
Less: unamortized original issue discount | 60,654,000 | 67,158,000 | ||
Less: unamortized debt issuance costs | 15,069,000 | 16,740,000 | ||
Long-term debt, net | 476,266,000 | 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 | $ 34,489,000 | $ 34,859,000 | ||
Stated interest rate (as a percent) | 4.75% |
ACCUMULATED OTHER COMPREHENSI53
ACCUMULATED OTHER COMPREHENSIVE LOSS - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | $ 2,430,028 | |||
Other comprehensive income before reclassifications | $ (37,576) | $ 14,669 | (9,097) | $ 32,733 |
Amounts reclassified to earnings | (191) | (4,062) | (52) | (3,348) |
Net current period other comprehensive income (loss) | (37,767) | 10,607 | (9,149) | 29,385 |
Balance at end of period | 2,576,079 | 2,576,079 | ||
Tax provision (benefit) on accumulated other comprehensive income | (3,800) | (3,800) | ||
Accumulated Other Comprehensive (Loss) Income | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | (74,950) | (147,345) | (103,568) | (166,123) |
Balance at end of period | (112,717) | (136,738) | (112,717) | (136,738) |
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | (74,950) | (151,373) | (103,568) | (170,149) |
Other comprehensive income before reclassifications | (37,589) | 14,664 | (9,110) | 32,726 |
Amounts reclassified to earnings | (191) | (29) | (52) | 685 |
Net current period other comprehensive income (loss) | (37,780) | 14,635 | (9,162) | 33,411 |
Balance at end of period | (112,730) | (136,738) | (112,730) | (136,738) |
Unrealized Gains On Available-For-Sale Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | 0 | 4,028 | 0 | 4,026 |
Other comprehensive income before reclassifications | 13 | 5 | 13 | 7 |
Amounts reclassified to earnings | 0 | (4,033) | 0 | (4,033) |
Net current period other comprehensive income (loss) | 13 | (4,028) | 13 | (4,026) |
Balance at end of period | $ 13 | $ 0 | $ 13 | $ 0 |
EARNINGS PER SHARE - Summary (D
EARNINGS PER SHARE - Summary (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator: Basic | ||||
Net earnings | $ 280,854 | $ 80,557 | $ 368,693 | $ 109,020 |
Net earnings attributable to noncontrolling interests | (62,501) | (14,289) | (79,258) | (16,543) |
Net earnings (loss) attributable to IAC shareholders | 218,353 | 66,268 | 289,435 | 92,477 |
Numerator: Diluted | ||||
Net earnings | 280,854 | 80,557 | 368,693 | 109,020 |
Net earnings attributable to noncontrolling interests | (62,501) | (14,289) | (79,258) | (16,543) |
Impact from public subsidiaries' dilutive securities | (6,994) | (7,925) | (12,569) | (10,355) |
Net earnings (loss) attributable to IAC shareholders | $ 211,359 | $ 58,343 | $ 276,866 | $ 82,122 |
Denominator: Basic | ||||
Weighted average basic shares outstanding (shares) | 83,604 | 79,067 | 83,296 | 78,633 |
Denominator: Diluted | ||||
Weighted average basic shares outstanding (shares) | 83,604 | 79,067 | 83,296 | 78,633 |
Dilutive securities including stock options and RSUs and subsidiary denominated equity awards (shares) | 7,330 | 4,711 | 7,438 | 4,510 |
Denominator for earnings per share - weighted average shares (shares) | 90,934 | 83,778 | 90,734 | 83,143 |
Earnings (loss) per share attributable to IAC shareholders: Basic | ||||
Basic earnings per share (USD per share) | $ 2.61 | $ 0.84 | $ 3.47 | $ 1.18 |
Earnings (loss) per share attributable to IAC shareholders: Diluted | ||||
Diluted earnings per share (USD per share) | 2.32 | $ 0.70 | $ 3.05 | $ 0.99 |
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) | 3,400 | 100 | 6,900 | 500 |
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 | 200 | 400 |
SEGMENT INFORMATION - Financial
SEGMENT INFORMATION - Financial Data by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 1,059,122 | $ 767,387 | $ 2,054,197 | $ 1,528,220 |
Operating income (loss) | 168,437 | 75,635 | 258,387 | 112,695 |
Operating segments | Match Group | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 421,196 | 309,572 | 828,563 | 608,336 |
Operating income (loss) | 150,165 | 82,975 | 262,398 | 141,846 |
Adjusted EBITDA | 175,561 | 109,910 | 313,302 | 196,141 |
Operating segments | ANGI Homeservices | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 294,822 | 180,711 | 550,133 | 331,456 |
Operating income (loss) | 23,262 | (4,141) | 12,506 | (2,753) |
Adjusted EBITDA | 66,979 | 13,666 | 103,619 | 23,878 |
Operating segments | Video | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 62,757 | 55,182 | 128,919 | 105,759 |
Operating income (loss) | (14,982) | (7,829) | (30,857) | (23,418) |
Adjusted EBITDA | (11,102) | (6,832) | (24,042) | (21,564) |
Operating segments | Applications | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 143,074 | 143,969 | 275,061 | 302,866 |
Operating income (loss) | 33,077 | 39,134 | 58,538 | 71,902 |
Adjusted EBITDA | 35,404 | 40,546 | 62,156 | 75,479 |
Operating segments | Publishing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 137,355 | 78,124 | 271,677 | 156,204 |
Operating income (loss) | 12,807 | (2,857) | 28,618 | (8,645) |
Adjusted EBITDA | 13,755 | 2,740 | 30,968 | 3,919 |
Operating segments | Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 23,980 | |||
Operating income (loss) | 0 | 0 | 0 | (5,621) |
Adjusted EBITDA | 0 | 0 | 0 | (1,532) |
Inter-segment eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | (82) | (171) | (156) | (381) |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | (35,892) | (31,647) | (72,816) | (60,616) |
Adjusted EBITDA | $ (15,552) | $ (15,523) | $ (32,560) | $ (29,838) |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Revenue Disaggregated by Service (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 1,059,122 | $ 767,387 | $ 2,054,197 | $ 1,528,220 |
Operating segments | Match Group | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 421,196 | 309,572 | 828,563 | 608,336 |
Operating segments | ANGI Homeservices | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 294,822 | 180,711 | 550,133 | 331,456 |
Operating segments | Video | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 62,757 | 55,182 | 128,919 | 105,759 |
Operating segments | Applications | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 143,074 | 143,969 | 275,061 | 302,866 |
Operating segments | Publishing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 137,355 | 78,124 | 271,677 | 156,204 |
North America | Operating segments | ANGI Homeservices | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 277,505 | 165,491 | 513,531 | 303,563 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 350,551 | 222,367 | 688,046 | 434,602 |
Europe | Operating segments | ANGI Homeservices | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 17,317 | 15,220 | 36,602 | 27,893 |
Direct revenue | Operating segments | Match Group | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 407,727 | 299,423 | 800,464 | 587,175 |
Direct revenue | North America | Operating segments | Match Group | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 222,163 | 178,505 | 433,520 | 353,833 |
Direct revenue | International | Operating segments | Match Group | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 185,564 | 120,918 | 366,944 | 233,342 |
Indirect revenue | Operating segments | Match Group | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 13,469 | 10,149 | 28,099 | 21,161 |
Marketplace revenue | North America | Operating segments | ANGI Homeservices | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 204,735 | 155,755 | 370,343 | 285,399 |
Consumer connection revenue | North America | Operating segments | ANGI Homeservices | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 187,172 | 141,163 | 336,232 | 257,163 |
Membership subscription revenue | North America | Operating segments | ANGI Homeservices | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 16,565 | 13,704 | 32,192 | 26,456 |
Other revenue | North America | Operating segments | ANGI Homeservices | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 998 | 888 | 1,919 | 1,780 |
Other revenue | Operating segments | Video | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 13,766 | 4,656 | 25,537 | 9,483 |
Other revenue | North America | Operating segments | ANGI Homeservices | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 72,770 | 9,736 | 143,188 | 18,164 |
Other revenue | Europe | Operating segments | ANGI Homeservices | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 304 | 178 | 551 | 380 |
Consumer connection revenue | Europe | Operating segments | ANGI Homeservices | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 12,496 | 11,170 | 26,863 | 19,635 |
Membership subscription revenue | Europe | Operating segments | ANGI Homeservices | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 4,517 | 3,872 | 9,188 | 7,878 |
Subscription revenue | Operating segments | Video | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 32,724 | 26,782 | 67,067 | 51,599 |
Media production and distribution revenue | Operating segments | Video | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 16,267 | 23,744 | 36,315 | 44,677 |
Consumer | Operating segments | Applications | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 123,565 | 117,883 | 233,639 | 248,215 |
Advertising revenue | Operating segments | Applications | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 95,303 | 102,808 | 189,088 | 214,219 |
Google advertising revenue | Operating segments | Applications | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 88,821 | 94,130 | 176,252 | 199,228 |
Other | Operating segments | Applications | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 6,482 | 8,678 | 12,836 | 14,991 |
Subscription and other revenue | Operating segments | Applications | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 28,262 | 15,075 | 44,551 | 33,996 |
Partnerships | Operating segments | Applications | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 19,509 | 26,086 | 41,422 | 54,651 |
Advertising revenue | Operating segments | Applications | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 19,487 | 26,024 | 41,364 | 54,516 |
Google advertising revenue | Operating segments | Applications | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 18,746 | 25,329 | 39,892 | 53,038 |
Other | Operating segments | Applications | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 741 | 695 | 1,472 | 1,478 |
Other revenue | Operating segments | Applications | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 22 | 62 | 58 | 135 |
Premium Brands | Operating segments | Publishing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 39,759 | 28,346 | 78,567 | 54,346 |
Advertising revenue | Operating segments | Publishing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 38,576 | 28,042 | 76,161 | 53,697 |
Google advertising revenue | Operating segments | Publishing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 12,353 | 10,808 | 25,991 | 20,597 |
Other | Operating segments | Publishing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 26,223 | 17,234 | 50,170 | 33,100 |
Other revenue | Operating segments | Publishing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,183 | 304 | 2,406 | 649 |
Ask & Other | Operating segments | Publishing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 97,596 | 49,778 | 193,110 | 101,858 |
Advertising revenue | Operating segments | Publishing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 94,225 | 49,580 | 189,530 | 101,472 |
Google advertising revenue | Operating segments | Publishing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 84,563 | 43,794 | 173,255 | 88,481 |
Other | Operating segments | Publishing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 9,662 | 5,786 | 16,275 | 12,991 |
Other revenue | Operating segments | Publishing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 3,371 | $ 198 | $ 3,580 | $ 386 |
SEGMENT INFORMATION - Schedul57
SEGMENT INFORMATION - Schedule of Geographic Information About Revenue and Long-Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Revenue and long-lived assets by geography | |||||
Revenue | $ 1,059,122 | $ 767,387 | $ 2,054,197 | $ 1,528,220 | |
Property and equipment, net of accumulated depreciation and amortization | 306,602 | 306,602 | $ 315,170 | ||
United States | |||||
Revenue and long-lived assets by geography | |||||
Revenue | 708,571 | 545,020 | 1,366,151 | 1,093,618 | |
Property and equipment, net of accumulated depreciation and amortization | 277,566 | 277,566 | 286,541 | ||
All other countries | |||||
Revenue and long-lived assets by geography | |||||
Revenue | 350,551 | $ 222,367 | 688,046 | $ 434,602 | |
Property and equipment, net of accumulated depreciation and amortization | $ 29,036 | $ 29,036 | $ 28,629 |
SEGMENT INFORMATION - Schedul58
SEGMENT INFORMATION - Schedule of Reconciliation of Operating Income (Loss) to Adjusted EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Operating income | $ 168,437 | $ 75,635 | $ 258,387 | $ 112,695 |
Stock-based compensation expense | 57,561 | 38,915 | 116,643 | 72,890 |
Depreciation | 18,805 | 18,339 | 38,062 | 38,227 |
Amortization of intangibles | 20,188 | 8,624 | 40,141 | 17,785 |
Interest expense | (27,356) | (24,728) | (53,861) | (49,520) |
Other income, net | 171,141 | 10,230 | 166,522 | 2,516 |
Earnings before income taxes | 312,222 | 61,137 | 371,048 | 65,691 |
Income tax benefit (provision) | (31,368) | 19,420 | (2,355) | 43,329 |
Net earnings | 280,854 | 80,557 | 368,693 | 109,020 |
Net earnings attributable to noncontrolling interests | (62,501) | (14,289) | (79,258) | (16,543) |
Net earnings attributable to IAC shareholders | 218,353 | 66,268 | 289,435 | 92,477 |
Operating segments | Match Group | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Operating income | 150,165 | 82,975 | 262,398 | 141,846 |
Stock-based compensation expense | 16,706 | 15,654 | 33,669 | 33,678 |
Depreciation | 8,399 | 7,883 | 16,546 | 15,472 |
Amortization of intangibles | 237 | 404 | 479 | 807 |
Acquisition-related Contingent Consideration Fair Value Adjustments | 54 | 2,994 | 210 | 4,338 |
Adjusted EBITDA | 175,561 | 109,910 | 313,302 | 196,141 |
Operating segments | ANGI Homeservices | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Operating income | 23,262 | (4,141) | 12,506 | (2,753) |
Stock-based compensation expense | 22,053 | 11,839 | 46,959 | 16,300 |
Depreciation | 5,886 | 3,218 | 12,070 | 6,214 |
Amortization of intangibles | 15,778 | 2,750 | 32,084 | 4,117 |
Acquisition-related Contingent Consideration Fair Value Adjustments | 0 | 0 | 0 | 0 |
Adjusted EBITDA | 66,979 | 13,666 | 103,619 | 23,878 |
Operating segments | Video | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Operating income | (14,982) | (7,829) | (30,857) | (23,418) |
Stock-based compensation expense | 1,293 | 133 | 1,424 | 133 |
Depreciation | 447 | 552 | 1,122 | 1,096 |
Amortization of intangibles | 2,140 | 312 | 4,269 | 625 |
Acquisition-related Contingent Consideration Fair Value Adjustments | 0 | 0 | 0 | 0 |
Adjusted EBITDA | (11,102) | (6,832) | (24,042) | (21,564) |
Operating segments | Applications | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Operating income | 33,077 | 39,134 | 58,538 | 71,902 |
Stock-based compensation expense | 0 | 0 | 0 | 0 |
Depreciation | 773 | 921 | 1,528 | 1,932 |
Amortization of intangibles | 1,554 | 491 | 2,090 | 1,097 |
Acquisition-related Contingent Consideration Fair Value Adjustments | 0 | 0 | 0 | 548 |
Adjusted EBITDA | 35,404 | 40,546 | 62,156 | 75,479 |
Operating segments | Publishing | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Operating income | 12,807 | (2,857) | 28,618 | (8,645) |
Stock-based compensation expense | 0 | 0 | 0 | 0 |
Depreciation | 469 | 930 | 1,131 | 2,949 |
Amortization of intangibles | 479 | 4,667 | 1,219 | 9,615 |
Acquisition-related Contingent Consideration Fair Value Adjustments | 0 | 0 | 0 | 0 |
Adjusted EBITDA | 13,755 | 2,740 | 30,968 | 3,919 |
Operating segments | Other | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Operating income | 0 | 0 | 0 | (5,621) |
Stock-based compensation expense | 0 | 0 | 0 | 1,729 |
Depreciation | 836 | |||
Amortization of intangibles | 0 | 0 | 0 | 1,524 |
Acquisition-related Contingent Consideration Fair Value Adjustments | 0 | 0 | 0 | 0 |
Adjusted EBITDA | 0 | 0 | 0 | (1,532) |
Corporate | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Operating income | (35,892) | (31,647) | (72,816) | (60,616) |
Stock-based compensation expense | 17,509 | 11,289 | 34,591 | 21,050 |
Depreciation | 2,831 | 4,835 | 5,665 | 9,728 |
Amortization of intangibles | 0 | 0 | 0 | 0 |
Acquisition-related Contingent Consideration Fair Value Adjustments | 0 | 0 | 0 | 0 |
Adjusted EBITDA | $ (15,552) | $ (15,523) | $ (32,560) | $ (29,838) |
OTHER INCOME, NET - Narrative (
OTHER INCOME, NET - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | ||||
Net unrealized mark-to-market gains on equity investments | $ 126,414 | $ 8,000 | $ 126,559 | $ 10,600 |
Realized gains on equity investments | 27,300 | 27,200 | ||
Net foreign currency exchange gains (losses) | 10,000 | (3,600) | 2,100 | (6,200) |
Interest income | $ 7,000 | 2,500 | $ 12,200 | 4,100 |
Realized gains (losses) on investments | 21,200 | 21,300 | ||
Other-than-temporary impairment charge | $ 1,400 | $ 4,800 |
OTHER INCOME, NET - Summary (De
OTHER INCOME, NET - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | ||||
Other income, net | $ 171,141 | $ 10,230 | $ 166,522 | $ 2,516 |
GUARANTOR AND NON-GUARANTOR F61
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Narrative (Details) | Jun. 30, 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 F62
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Cash and cash equivalents | $ 1,644,829 | $ 1,630,809 | $ 1,522,300 | $ 1,329,187 |
Marketable securities | 120,410 | 4,995 | ||
Accounts receivable, net of allowance | 343,576 | 304,027 | ||
Other current assets | 237,957 | 185,374 | ||
Intercompany receivables | 0 | 0 | ||
Property and equipment, net of accumulated depreciation and amortization | 306,602 | 315,170 | ||
Goodwill | 2,578,296 | 2,559,066 | ||
Intangible assets, net of accumulated amortization | 636,351 | 663,737 | ||
Investment in subsidiaries | 0 | 0 | ||
Other non-current assets | 367,263 | 204,632 | ||
TOTAL ASSETS | 6,235,284 | 5,867,810 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current portion of long-term debt | 13,750 | 13,750 | ||
Accounts payable, trade | 79,107 | 76,571 | ||
Other current liabilities | 752,823 | 709,407 | ||
Long-term debt, net | 1,982,271 | 1,979,469 | ||
Income taxes payable | 23,942 | 25,624 | ||
Intercompany liabilities | 0 | 0 | ||
Other long-term liabilities | 70,724 | 73,299 | ||
Redeemable noncontrolling interests | 75,719 | 42,867 | ||
Shareholders' equity (deficit) | 2,576,079 | 2,430,028 | ||
Noncontrolling interests | 660,869 | 516,795 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 6,235,284 | 5,867,810 | ||
Reportable Legal Entities | IAC | ||||
ASSETS | ||||
Cash and cash equivalents | 813,872 | 585,639 | ||
Marketable securities | 119,746 | 4,995 | ||
Accounts receivable, net of allowance | 0 | 31 | ||
Other current assets | 45,720 | 49,159 | ||
Intercompany receivables | 0 | 0 | ||
Property and equipment, net of accumulated depreciation and amortization | 4,306 | 2,811 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net of accumulated amortization | 0 | 0 | ||
Investment in subsidiaries | 1,828,822 | 2,077,898 | ||
Other non-current assets | 227,459 | 170,073 | ||
TOTAL ASSETS | 3,039,925 | 2,890,606 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable, trade | 642 | 5,163 | ||
Other current liabilities | 28,128 | 29,489 | ||
Long-term debt, net | 34,233 | 34,572 | ||
Income taxes payable | 0 | 16 | ||
Intercompany liabilities | 400,448 | 390,827 | ||
Other long-term liabilities | 395 | 511 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Shareholders' equity (deficit) | 2,576,079 | 2,430,028 | ||
Noncontrolling interests | 0 | 0 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 3,039,925 | 2,890,606 | ||
Reportable Legal Entities | Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | ||
Marketable securities | 0 | 0 | ||
Accounts receivable, net of allowance | 118,672 | 109,289 | ||
Other current assets | 26,123 | 33,387 | ||
Intercompany receivables | 1,129,828 | 668,703 | ||
Property and equipment, net of accumulated depreciation and amortization | 168,685 | 174,323 | ||
Goodwill | 412,010 | 412,010 | ||
Intangible assets, net of accumulated amortization | 73,933 | 74,852 | ||
Investment in subsidiaries | 202,616 | 554,998 | ||
Other non-current assets | 83,005 | 87,306 | ||
TOTAL ASSETS | 2,214,872 | 2,114,868 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable, trade | 37,027 | 30,469 | ||
Other current liabilities | 89,902 | 88,050 | ||
Long-term debt, net | 0 | 0 | ||
Income taxes payable | 1,434 | 1,605 | ||
Intercompany liabilities | 0 | 0 | ||
Other long-term liabilities | 18,779 | 18,613 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Shareholders' equity (deficit) | 2,067,730 | 1,976,131 | ||
Noncontrolling interests | 0 | 0 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 2,214,872 | 2,114,868 | ||
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 830,957 | 1,045,170 | ||
Marketable securities | 664 | 0 | ||
Accounts receivable, net of allowance | 224,904 | 194,707 | ||
Other current assets | 166,114 | 102,828 | ||
Intercompany receivables | 0 | 0 | ||
Property and equipment, net of accumulated depreciation and amortization | 133,611 | 138,036 | ||
Goodwill | 2,166,286 | 2,147,056 | ||
Intangible assets, net of accumulated amortization | 562,418 | 588,885 | ||
Investment in subsidiaries | 0 | 0 | ||
Other non-current assets | 222,638 | 79,688 | ||
TOTAL ASSETS | 4,307,592 | 4,296,370 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current portion of long-term debt | 13,750 | 13,750 | ||
Accounts payable, trade | 41,438 | 40,939 | ||
Other current liabilities | 634,793 | 591,868 | ||
Long-term debt, net | 1,948,038 | 1,944,897 | ||
Income taxes payable | 22,508 | 24,003 | ||
Intercompany liabilities | 729,380 | 277,876 | ||
Other long-term liabilities | 217,389 | 186,610 | ||
Redeemable noncontrolling interests | 75,719 | 42,867 | ||
Shareholders' equity (deficit) | (36,292) | 656,765 | ||
Noncontrolling interests | 660,869 | 516,795 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,307,592 | 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 | (1,129,828) | (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 | (2,031,438) | (2,632,896) | ||
Other non-current assets | (165,839) | (132,435) | ||
TOTAL ASSETS | (3,327,105) | (3,434,034) | ||
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 | (1,129,828) | (668,703) | ||
Other long-term liabilities | (165,839) | (132,435) | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Shareholders' equity (deficit) | (2,031,438) | (2,632,896) | ||
Noncontrolling interests | 0 | 0 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ (3,327,105) | $ (3,434,034) |
GUARANTOR AND NON-GUARANTOR F63
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Guarantor and Nonguarantor Financial Statements [Abstract] | ||||
Foreign earnings repatriated | $ 50,000 | |||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenue | $ 1,059,122 | $ 767,387 | 2,054,197 | $ 1,528,220 |
Operating costs and expenses: | ||||
Cost of revenue (exclusive of depreciation shown separately below) | 218,224 | 139,033 | 420,186 | 284,991 |
Selling and marketing expense | 369,660 | 320,104 | 772,492 | 670,515 |
General and administrative expense | 188,363 | 150,222 | 372,547 | 293,817 |
Product development expense | 75,445 | 55,430 | 152,382 | 110,190 |
Depreciation | 18,805 | 18,339 | 38,062 | 38,227 |
Amortization of intangibles | 20,188 | 8,624 | 40,141 | 17,785 |
Total operating costs and expenses | 890,685 | 691,752 | 1,795,810 | 1,415,525 |
Operating income | 168,437 | 75,635 | 258,387 | 112,695 |
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 |
Interest expense | (27,356) | (24,728) | (53,861) | (49,520) |
Other income, net | 171,141 | 10,230 | 166,522 | 2,516 |
Earnings before income taxes | 312,222 | 61,137 | 371,048 | 65,691 |
Income tax benefit (provision) | (31,368) | 19,420 | (2,355) | 43,329 |
Net earnings | 280,854 | 80,557 | 368,693 | 109,020 |
Net earnings attributable to noncontrolling interests | (62,501) | (14,289) | (79,258) | (16,543) |
Net earnings attributable to IAC shareholders | 218,353 | 66,268 | 289,435 | 92,477 |
Comprehensive income (loss) attributable to IAC shareholders | 180,909 | 76,875 | 280,348 | 121,862 |
Reportable Legal Entities | IAC | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating costs and expenses: | ||||
Cost of revenue (exclusive of depreciation shown separately below) | 75 | 47 | 151 | 160 |
Selling and marketing expense | 189 | 613 | 402 | 939 |
General and administrative expense | 31,652 | 35,778 | 63,061 | 61,914 |
Product development expense | 564 | 936 | 1,216 | 1,506 |
Depreciation | 266 | 445 | 532 | 883 |
Amortization of intangibles | 0 | 0 | 0 | 0 |
Total operating costs and expenses | 32,746 | 37,819 | 65,362 | 65,402 |
Operating income | (32,746) | (37,819) | (65,362) | (65,402) |
Equity in earnings of unconsolidated affiliates | 233,980 | 91,382 | 336,730 | 142,838 |
Interest expense | (423) | (5,648) | (852) | (11,476) |
Other income, net | 6,436 | (6,821) | (10,411) | (12,626) |
Earnings before income taxes | 207,247 | 41,094 | 260,105 | 53,334 |
Income tax benefit (provision) | 11,106 | 25,174 | 29,330 | 39,143 |
Net earnings | 218,353 | 66,268 | 289,435 | 92,477 |
Net earnings attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings attributable to IAC shareholders | 218,353 | 66,268 | 289,435 | 92,477 |
Comprehensive income (loss) attributable to IAC shareholders | 180,909 | 76,875 | 280,348 | 121,862 |
Reportable Legal Entities | Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenue | 207,964 | 169,831 | 420,853 | 351,403 |
Operating costs and expenses: | ||||
Cost of revenue (exclusive of depreciation shown separately below) | 61,215 | 30,131 | 117,439 | 62,839 |
Selling and marketing expense | 80,302 | 82,268 | 170,440 | 174,218 |
General and administrative expense | 14,259 | 14,785 | 29,640 | 30,375 |
Product development expense | 14,151 | 13,792 | 28,420 | 29,179 |
Depreciation | 3,126 | 5,884 | 6,466 | 13,017 |
Amortization of intangibles | 410 | 4,667 | 919 | 9,752 |
Total operating costs and expenses | 173,463 | 151,527 | 353,324 | 319,380 |
Operating income | 34,501 | 18,304 | 67,529 | 32,023 |
Equity in earnings of unconsolidated affiliates | 8,630 | 4,706 | 8,303 | 2,023 |
Interest expense | 0 | 0 | 0 | 0 |
Other income, net | 62,204 | 6,807 | 349,087 | 12,898 |
Earnings before income taxes | 105,335 | 29,817 | 424,919 | 46,944 |
Income tax benefit (provision) | (27,557) | (1,139) | (38,523) | (10,828) |
Net earnings | 77,778 | 28,678 | 386,396 | 36,116 |
Net earnings attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings attributable to IAC shareholders | 77,778 | 28,678 | 386,396 | 36,116 |
Comprehensive income (loss) attributable to IAC shareholders | 77,482 | 30,852 | 386,443 | 42,343 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenue | 851,240 | 597,724 | 1,633,500 | 1,177,198 |
Operating costs and expenses: | ||||
Cost of revenue (exclusive of depreciation shown separately below) | 156,991 | 108,989 | 302,703 | 222,299 |
Selling and marketing expense | 289,205 | 237,269 | 601,731 | 495,458 |
General and administrative expense | 142,441 | 99,647 | 279,814 | 201,502 |
Product development expense | 60,730 | 40,702 | 122,746 | 79,505 |
Depreciation | 15,413 | 12,010 | 31,064 | 24,327 |
Amortization of intangibles | 19,778 | 3,957 | 39,222 | 8,033 |
Total operating costs and expenses | 684,558 | 502,574 | 1,377,280 | 1,031,124 |
Operating income | 166,682 | 95,150 | 256,220 | 146,074 |
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 |
Interest expense | (26,933) | (19,080) | (53,009) | (38,044) |
Other income, net | 153,770 | 10,244 | 155,960 | 2,244 |
Earnings before income taxes | 293,519 | 86,314 | 359,171 | 110,274 |
Income tax benefit (provision) | (14,917) | (4,615) | 6,838 | 15,014 |
Net earnings | 278,602 | 81,699 | 366,009 | 125,288 |
Net earnings attributable to noncontrolling interests | (62,501) | (14,289) | (79,258) | (16,543) |
Net earnings attributable to IAC shareholders | 216,101 | 67,410 | 286,751 | 108,745 |
Comprehensive income (loss) attributable to IAC shareholders | 170,613 | 85,140 | 275,940 | 148,908 |
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenue | (82) | (168) | (156) | (381) |
Operating costs and expenses: | ||||
Cost of revenue (exclusive of depreciation shown separately below) | (57) | (134) | (107) | (307) |
Selling and marketing expense | (36) | (46) | (81) | (100) |
General and administrative expense | 11 | 12 | 32 | 26 |
Product development expense | 0 | 0 | 0 | 0 |
Depreciation | 0 | 0 | 0 | 0 |
Amortization of intangibles | 0 | 0 | 0 | 0 |
Total operating costs and expenses | (82) | (168) | (156) | (381) |
Operating income | 0 | 0 | 0 | 0 |
Equity in earnings of unconsolidated affiliates | (242,610) | (96,088) | (345,033) | (144,861) |
Interest expense | 0 | 0 | 0 | 0 |
Other income, net | (51,269) | 0 | (328,114) | 0 |
Earnings before income taxes | (293,879) | (96,088) | (673,147) | (144,861) |
Income tax benefit (provision) | 0 | 0 | 0 | 0 |
Net earnings | (293,879) | (96,088) | (673,147) | (144,861) |
Net earnings attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings attributable to IAC shareholders | (293,879) | (96,088) | (673,147) | (144,861) |
Comprehensive income (loss) attributable to IAC shareholders | $ (248,095) | $ (115,992) | $ (662,383) | $ (191,251) |
GUARANTOR AND NON-GUARANTOR F64
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | $ 379,802 | $ 157,714 | ||
Cash flows from investing activities: | ||||
Acquisitions, net of cash acquired | (17,513) | (49,164) | ||
Capital expenditures | (39,696) | (41,821) | ||
Proceeds from maturities and sales of marketable debt securities | $ 5,000 | $ 24,000 | 10,000 | 99,350 |
Purchases of marketable debt securities | (124,397) | (24,909) | ||
Purchases of investments | (31,180) | (5,105) | ||
Net cash (used in) provided by investing activities | 27,540 | 119,697 | ||
Other, net | 9,599 | 1,076 | ||
Net cash (used in) provided by investing activities | (165,647) | 99,124 | ||
Cash flows from financing activities: | ||||
Purchase of noncontrolling interests | (877) | (12,361) | ||
Acquisition-related contingent consideration payments | (185) | (3,860) | ||
Intercompany | 0 | 0 | ||
Other, net | (4,813) | (4,873) | ||
Net cash used in financing activities | (202,705) | (99,880) | ||
Total cash provided | 11,450 | 156,958 | ||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 44 | 5,474 | ||
Net increase in cash, cash equivalents, and restricted cash | 11,494 | 162,432 | ||
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 | 1,645,176 | 1,522,631 | 1,645,176 | 1,522,631 |
Reportable Legal Entities | IAC | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | (24,698) | (40,671) | ||
Cash flows from investing activities: | ||||
Acquisitions, net of cash acquired | (4,142) | 0 | ||
Capital expenditures | (2,200) | (216) | ||
Proceeds from maturities and sales of marketable debt securities | 10,000 | 99,350 | ||
Purchases of marketable debt securities | (124,397) | (24,909) | ||
Purchases of investments | (18,180) | 0 | ||
Net cash (used in) provided by investing activities | 408 | 0 | ||
Other, net | (5,000) | 0 | ||
Net cash (used in) provided by investing activities | (143,511) | 74,225 | ||
Cash flows from financing activities: | ||||
Purchase of noncontrolling interests | 0 | 0 | ||
Acquisition-related contingent consideration payments | 0 | 0 | ||
Intercompany | 375,167 | 54,316 | ||
Other, net | 2,674 | 251 | ||
Net cash used in financing activities | 396,431 | (35,201) | ||
Total cash provided | 228,222 | (1,647) | ||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 11 | 36 | ||
Net increase in cash, cash equivalents, and restricted cash | 228,233 | (1,611) | ||
Cash, cash equivalents, and restricted cash at beginning of period | 585,639 | 573,784 | ||
Cash, cash equivalents, and restricted cash at end of period | 813,872 | 572,173 | 813,872 | 572,173 |
Reportable Legal Entities | Guarantor Subsidiaries | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | 418,153 | 40,314 | ||
Cash flows from investing activities: | ||||
Acquisitions, net of cash acquired | 0 | (2,200) | ||
Capital expenditures | (847) | (657) | ||
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 | ||
Other, net | 3,884 | 120 | ||
Net cash (used in) provided by investing activities | 3,037 | (2,737) | ||
Cash flows from financing activities: | ||||
Purchase of noncontrolling interests | 0 | 0 | ||
Acquisition-related contingent consideration payments | 0 | 0 | ||
Intercompany | (421,190) | (37,577) | ||
Net cash used in financing activities | (421,190) | (37,577) | ||
Net increase in cash, cash equivalents, and restricted cash | 0 | 0 | ||
Cash, cash equivalents, and restricted cash at end of period | 0 | 0 | 0 | 0 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | 314,884 | 158,071 | ||
Cash flows from investing activities: | ||||
Acquisitions, net of cash acquired | (13,371) | (46,964) | ||
Capital expenditures | (36,649) | (40,948) | ||
Proceeds from maturities and sales of marketable debt securities | 0 | 0 | ||
Purchases of marketable debt securities | 0 | 0 | ||
Purchases of investments | (13,000) | (5,105) | ||
Net cash (used in) provided by investing activities | 27,132 | 119,697 | ||
Other, net | 10,715 | 956 | ||
Net cash (used in) provided by investing activities | (25,173) | 27,636 | ||
Cash flows from financing activities: | ||||
Purchase of noncontrolling interests | (877) | (12,361) | ||
Acquisition-related contingent consideration payments | (185) | (3,860) | ||
Intercompany | (282,514) | (16,739) | ||
Other, net | (7,487) | (5,124) | ||
Net cash used in financing activities | (506,483) | (27,102) | ||
Total cash provided | (216,772) | 158,605 | ||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 33 | 5,438 | ||
Net increase in cash, cash equivalents, and restricted cash | (216,739) | 164,043 | ||
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 | 831,304 | $ 950,458 | 831,304 | 950,458 |
Eliminations | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | (328,537) | |||
Cash flows from investing activities: | ||||
Acquisitions, net of cash acquired | 0 | |||
Capital expenditures | 0 | |||
Proceeds from maturities and sales of marketable debt securities | 0 | |||
Purchases of marketable debt securities | 0 | |||
Purchases of investments | 0 | |||
Net cash (used in) provided by investing activities | 0 | |||
Other, net | 0 | |||
Net cash (used in) provided by investing activities | 0 | |||
Cash flows from financing activities: | ||||
Purchase of noncontrolling interests | 0 | |||
Acquisition-related contingent consideration payments | 0 | |||
Intercompany | 328,537 | |||
Net cash used in financing activities | 328,537 | |||
Net increase in cash, cash equivalents, and restricted cash | 0 | |||
Cash, cash equivalents, and restricted cash at end of period | $ 0 | 0 | ||
ANGI Homeservices | ||||
Cash flows from financing activities: | ||||
Principal payments on ANGI Homeservices debt | (6,875) | 0 | ||
ANGI Homeservices | Reportable Legal Entities | IAC | ||||
Cash flows from financing activities: | ||||
Principal payments on ANGI Homeservices debt | 0 | |||
ANGI Homeservices | Reportable Legal Entities | Guarantor Subsidiaries | ||||
Cash flows from financing activities: | ||||
Principal payments on ANGI Homeservices debt | 0 | |||
ANGI Homeservices | Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Cash flows from financing activities: | ||||
Principal payments on ANGI Homeservices debt | (6,875) | |||
ANGI Homeservices | Eliminations | ||||
Cash flows from financing activities: | ||||
Principal payments on ANGI Homeservices debt | 0 | |||
IAC/InterActiveCorp | ||||
Cash flows from financing activities: | ||||
Repurchases of IAC debt | (363) | (31,590) | ||
Purchase of treasury stock | (7,869) | (56,424) | ||
Proceeds from the exercise of stock options | 27,317 | 48,146 | ||
Withholding taxes paid on behalf of employees on net settled stock-based awards | (495) | (49,900) | ||
IAC/InterActiveCorp | Reportable Legal Entities | IAC | ||||
Cash flows from financing activities: | ||||
Repurchases of IAC debt | (363) | (31,590) | ||
Purchase of treasury stock | (7,869) | (56,424) | ||
Proceeds from the exercise of stock options | 27,317 | 48,146 | ||
Withholding taxes paid on behalf of employees on net settled stock-based awards | (495) | (49,900) | ||
IAC/InterActiveCorp | Reportable Legal Entities | Guarantor Subsidiaries | ||||
Cash flows from financing activities: | ||||
Repurchases of IAC debt | 0 | 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 | Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Cash flows from financing activities: | ||||
Repurchases of IAC debt | 0 | 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: | ||||
Repurchases of IAC debt | 0 | |||
Proceeds from the exercise of stock options | 0 | |||
Withholding taxes paid on behalf of employees on net settled stock-based awards | 0 | |||
Match Group | ||||
Cash flows from financing activities: | ||||
Purchase of treasury stock | (73,943) | 0 | ||
Match Group | Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Cash flows from financing activities: | ||||
Purchase of treasury stock | (73,943) | |||
Match Group and ANGI Homeservices | ||||
Cash flows from financing activities: | ||||
Proceeds from the exercise of stock options | 2,125 | 39,403 | ||
Withholding taxes paid on behalf of employees on net settled stock-based awards | (136,727) | (28,421) | ||
Match Group and ANGI Homeservices | Reportable Legal Entities | 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 | Reportable Legal Entities | 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 | Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Cash flows from financing activities: | ||||
Proceeds from the exercise of stock options | 2,125 | 39,403 | ||
Withholding taxes paid on behalf of employees on net settled stock-based awards | (136,727) | $ (28,421) | ||
Match Group and ANGI Homeservices | Eliminations | ||||
Cash flows from financing activities: | ||||
Proceeds from the exercise of stock options | 0 | |||
Withholding taxes paid on behalf of employees on net settled stock-based awards | $ 0 |