DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 3 Months Ended | |
Mar. 31, 2019 | May 03, 2019 | |
Entity Registrant Name | IAC/INTERACTIVECORP | |
Entity Central Index Key | 0000891103 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Class A | ||
Entity Common Stock, Shares Outstanding | 78,308,663 | |
Class B Convertible Common Stock | ||
Entity Common Stock, Shares Outstanding | 5,789,499 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 2,217,337 | $ 2,131,632 |
Marketable securities | 40,401 | 123,665 |
Accounts receivable, net of allowance and reserves of $19,913 and $18,860, respectively | 345,686 | 279,189 |
Other current assets | 226,474 | 228,253 |
Total current assets | 2,829,898 | 2,762,739 |
Right of use assets | 172,558 | 0 |
Property and equipment, net of accumulated depreciation and amortization of $295,917 and $286,798, respectively | 325,888 | 318,800 |
Goodwill | 2,745,788 | 2,726,859 |
Intangible assets, net of accumulated amortization of $155,945 and $136,405, respectively | 608,109 | 631,422 |
Long-term investments | 234,596 | 235,055 |
Deferred income taxes | 129,304 | 64,786 |
Other non-current assets | 113,761 | 134,924 |
TOTAL ASSETS | 7,159,902 | 6,874,585 |
LIABILITIES: | ||
Current portion of long-term debt | 13,750 | 13,750 |
Accounts payable, trade | 83,535 | 74,907 |
Deferred revenue | 386,943 | 360,015 |
Accrued expenses and other current liabilities | 423,592 | 434,886 |
Total current liabilities | 907,820 | 883,558 |
Long-term debt, net | 2,332,234 | 2,245,548 |
Income taxes payable | 36,176 | 37,584 |
Deferred income taxes | 22,903 | 23,600 |
Other long-term liabilities | 217,519 | 66,807 |
Redeemable noncontrolling interests | 71,914 | 65,687 |
Commitments and contingencies | ||
SHAREHOLDERS' EQUITY: | ||
Additional paid-in capital | 11,868,424 | 12,022,387 |
Retained earnings | 1,347,489 | 1,258,794 |
Accumulated other comprehensive loss | (126,719) | (128,722) |
Treasury stock 194,708 shares, respectively | (10,309,612) | (10,309,612) |
Total IAC shareholders' equity | 2,779,861 | 2,843,125 |
Noncontrolling interests | 791,475 | 708,676 |
Total shareholders' equity | 3,571,336 | 3,551,801 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 7,159,902 | 6,874,585 |
Common stock $.001 par value; authorized 1,600,000 shares; issued 262,629 and 262,303 shares, respectively, and outstanding 78,289 and 77,963 shares, respectively | ||
SHAREHOLDERS' EQUITY: | ||
Common stock | 263 | 262 |
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 (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Allowance for accounts receivable | $ 19,913 | $ 18,860 |
Accumulated depreciation and amortization of property and equipment | 295,917 | 286,798 |
Accumulated amortization of intangible assets | $ 155,945 | $ 136,405 |
Treasury stock (shares) | 194,708,000 | 194,708,000 |
Common stock $.001 par value; authorized 1,600,000 shares; issued 262,629 and 262,303 shares, respectively, and outstanding 78,289 and 77,963 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) | 262,629,000 | 262,303,000 |
Common stock outstanding (shares) | 78,289,000 | 77,963,000 |
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 - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue | $ 1,105,843 | $ 995,075 |
Operating costs and expenses: | ||
Cost of revenue (exclusive of depreciation shown separately below) | 260,071 | 201,962 |
Selling and marketing expense | 421,860 | 402,832 |
General and administrative expense | 213,616 | 184,184 |
Product development expense | 88,700 | 76,937 |
Depreciation | 18,971 | 19,257 |
Amortization of intangibles | 22,752 | 19,953 |
Total operating costs and expenses | 1,025,970 | 905,125 |
Operating income | 79,873 | 89,950 |
Interest expense | (31,143) | (26,505) |
Other income (expense), net | 651 | (4,619) |
Earnings before income taxes | 49,381 | 58,826 |
Income tax benefit | 63,604 | 29,013 |
Net earnings | 112,985 | 87,839 |
Net earnings attributable to noncontrolling interests | (24,290) | (16,757) |
Net earnings attributable to IAC shareholders | $ 88,695 | $ 71,082 |
Per share information attributable to IAC shareholders: | ||
Basic earnings per share (USD per share) | $ 1.06 | $ 0.86 |
Diluted earnings per share (USD per share) | $ 0.91 | $ 0.71 |
Stock-based compensation expense by function: | ||
Stock-based compensation expense | $ 67,444 | $ 59,082 |
Cost of revenue | ||
Stock-based compensation expense by function: | ||
Stock-based compensation expense | 1,289 | 710 |
Selling and marketing expense | ||
Stock-based compensation expense by function: | ||
Stock-based compensation expense | 2,717 | 1,765 |
General and administrative expense | ||
Stock-based compensation expense by function: | ||
Stock-based compensation expense | 45,010 | 45,626 |
Product development expense | ||
Stock-based compensation expense by function: | ||
Stock-based compensation expense | $ 18,428 | $ 10,981 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 112,985 | $ 87,839 |
Other comprehensive income, net of tax: | ||
Change in foreign currency translation adjustment | 1,309 | 35,393 |
Change in unrealized gains and losses of available-for-sale debt securities | 1 | 0 |
Total other comprehensive income | 1,310 | 35,393 |
Comprehensive income, net of tax | 114,295 | 123,232 |
Components of comprehensive income attributable to noncontrolling interests: | ||
Net earnings attributable to noncontrolling interests | (24,290) | (16,757) |
Change in foreign currency translation adjustment attributable to noncontrolling interests | (316) | (7,036) |
Change in unrealized gains and losses of available-for-sale debt securities attributable to noncontrolling interests | 1 | 0 |
Comprehensive income attributable to noncontrolling interests | (24,605) | (23,793) |
Comprehensive income attributable to IAC shareholders | $ 89,690 | $ 99,439 |
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 |
Balance at beginning of period at Dec. 31, 2017 | $ 42,867 | |||||||||||||||||||
Increase (Decrease) in Redeemable Noncontrolling Interests | ||||||||||||||||||||
Net (loss) earnings | (959) | |||||||||||||||||||
Other comprehensive loss, net of tax | 579 | |||||||||||||||||||
Stock-based compensation expense | 410 | |||||||||||||||||||
Purchase of noncontrolling interests | 0 | |||||||||||||||||||
Adjustment of redeemable noncontrolling interests to fair value | 3,403 | |||||||||||||||||||
Noncontrolling interests created in acquisitions | $ 0 | 787 | $ 0 | |||||||||||||||||
Other | 12 | |||||||||||||||||||
Balance at end of period at Mar. 31, 2018 | 47,099 | |||||||||||||||||||
Balance at beginning of period at Dec. 31, 2017 | 2,946,823 | $ 2,430,028 | $ 261 | $ 16 | $ 12,165,002 | $ 595,038 | $ (103,568) | $ (10,226,721) | 516,795 | |||||||||||
Balance at beginning of period (shares) at Dec. 31, 2017 | 260,624,000 | 16,157,000 | ||||||||||||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||||||||||||
Net (loss) earnings | 88,798 | 71,082 | 71,082 | 17,716 | ||||||||||||||||
Other comprehensive loss, net of tax | 34,814 | 28,357 | 28,357 | 6,457 | ||||||||||||||||
Stock-based compensation expense | 58,672 | 17,214 | 17,214 | 41,458 | ||||||||||||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes | 25,275 | 25,275 | 25,275 | |||||||||||||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes (shares) | 772,000 | |||||||||||||||||||
Purchase of noncontrolling interests | (269) | (269) | ||||||||||||||||||
Adjustment of redeemable noncontrolling interests to fair value | (3,403) | (3,403) | (3,403) | |||||||||||||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes, and impact to noncontrolling interests | $ (110,043) | $ (111,457) | $ (111,721) | $ 264 | $ 1,414 | $ (1,143) | $ (1,941) | $ (1,938) | $ (3) | $ 798 | ||||||||||
Noncontrolling interests created in acquisitions | 0 | 787 | 0 | |||||||||||||||||
Other | 2,662 | 2,577 | 2,577 | 85 | ||||||||||||||||
Balance at end of period at Mar. 31, 2018 | 3,082,391 | 2,494,527 | $ 261 | $ 16 | 12,093,006 | 702,915 | (74,950) | (10,226,721) | 587,864 | |||||||||||
Balance at end of period (shares) at Mar. 31, 2018 | 261,396,000 | 16,157,000 | ||||||||||||||||||
Balance at beginning of period at Dec. 31, 2018 | 65,687 | 65,687 | ||||||||||||||||||
Increase (Decrease) in Redeemable Noncontrolling Interests | ||||||||||||||||||||
Net (loss) earnings | (1,051) | |||||||||||||||||||
Other comprehensive loss, net of tax | 186 | |||||||||||||||||||
Stock-based compensation expense | 42 | |||||||||||||||||||
Purchase of noncontrolling interests | (3,182) | |||||||||||||||||||
Adjustment of redeemable noncontrolling interests to fair value | 10,242 | |||||||||||||||||||
Other | (10) | |||||||||||||||||||
Balance at end of period at Mar. 31, 2019 | 71,914 | $ 71,914 | ||||||||||||||||||
Balance at beginning of period at Dec. 31, 2018 | 3,551,801 | 2,843,125 | $ 262 | $ 16 | 12,022,387 | 1,258,794 | (128,722) | (10,309,612) | 708,676 | |||||||||||
Balance at beginning of period (shares) at Dec. 31, 2018 | 262,303,000 | 16,157,000 | ||||||||||||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||||||||||||
Net (loss) earnings | 114,036 | 88,695 | 88,695 | 25,341 | ||||||||||||||||
Other comprehensive loss, net of tax | 1,124 | 995 | 995 | 129 | ||||||||||||||||
Stock-based compensation expense | 67,402 | 20,165 | 20,165 | 47,237 | ||||||||||||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes | (4,910) | (4,910) | $ 1 | (4,911) | ||||||||||||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes (shares) | 326,000 | |||||||||||||||||||
Purchase of noncontrolling interests | 0 | 0 | ||||||||||||||||||
Adjustment of redeemable noncontrolling interests to fair value | (10,242) | (10,242) | (10,242) | |||||||||||||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes, and impact to noncontrolling interests | $ (131,876) | $ (132,860) | $ (133,861) | $ 1,001 | $ 984 | $ (15,982) | $ (25,090) | $ (25,097) | $ 7 | $ 9,108 | ||||||||||
Other | (17) | (17) | (17) | 0 | ||||||||||||||||
Balance at end of period at Mar. 31, 2019 | $ 3,571,336 | $ 2,779,861 | $ 263 | $ 16 | $ 11,868,424 | $ 1,347,489 | $ (126,719) | $ (10,309,612) | $ 791,475 | |||||||||||
Balance at end of period (shares) at Mar. 31, 2019 | 262,629,000 | 16,157,000 |
CONSOLIDATED STATEMENT OF SHA_2
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) | Mar. 31, 2019$ / 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 - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net earnings | $ 112,985 | $ 87,839 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Stock-based compensation expense | 67,444 | 59,082 |
Amortization of intangibles | 22,752 | 19,953 |
Depreciation | 18,971 | 19,257 |
Bad debt expense | 15,005 | 9,528 |
Deferred income taxes | (65,107) | (31,895) |
Other adjustments, net | 18,741 | 13,726 |
Changes in assets and liabilities, net of effects of acquisitions and dispositions: | ||
Accounts receivable | (88,367) | (29,901) |
Other assets | 6,730 | (22,680) |
Accounts payable and other liabilities | (26,829) | (7,592) |
Income taxes payable and receivable | (6,154) | (7,034) |
Deferred revenue | 26,770 | 41,725 |
Net cash provided by operating activities | 102,941 | 152,008 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | (21,555) | (21,295) |
Capital expenditures | (25,855) | (14,801) |
Proceeds from maturities of marketable debt securities | 123,500 | 5,000 |
Purchases of marketable debt securities | (39,740) | (4,975) |
Net proceeds from the sale of businesses and investments | 20,472 | 15 |
Purchases of investments | 0 | (18,180) |
Other, net | (1,215) | 9,347 |
Net cash provided by (used in) investing activities | 55,607 | (44,889) |
Cash flows from financing activities: | ||
Debt issuance costs | (5,542) | (193) |
Purchase of noncontrolling interests | (3,182) | (234) |
Acquisition-related contingent consideration payments | 0 | (185) |
Other, net | 27 | 2,669 |
Net cash used in financing activities | (73,660) | (83,150) |
Total cash provided | 84,888 | 23,969 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 815 | 2,746 |
Net increase in cash, cash equivalents, and restricted cash | 85,703 | 26,715 |
Cash, cash equivalents, and restricted cash at beginning of period | 2,133,685 | 1,633,682 |
Cash, cash equivalents, and restricted cash at end of period | 2,219,388 | 1,660,397 |
Match Group and ANGI Homeservices | ||
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 573 | 1,752 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | (123,148) | (75,028) |
ANGI Homeservices | ||
Cash flows from financing activities: | ||
Principal payments on debt | (3,438) | (3,438) |
Debt issuance costs | (193) | |
Match Group | ||
Cash flows from financing activities: | ||
Borrowings under Match Group Credit Facility | 40,000 | 0 |
Proceeds from Match Group 2019 Senior Notes offering | 350,000 | 0 |
Principal payments on debt | (300,000) | 0 |
Purchase of Match Group treasury stock | (24,186) | (32,465) |
IAC/InterActiveCorp | ||
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 9,298 | 24,254 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | $ (14,062) | $ (282) |
THE COMPANY AND SUMMARY OF SIGN
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2019 | |
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 has majority ownership of both Match Group, which includes Tinder, Match, PlentyOfFish and OkCupid, and ANGI Homeservices, which includes HomeAdvisor, Angie’s List and Handy, and also operates Vimeo and Dotdash, among many other online businesses. As used herein, "IAC," the "Company," "we," "our" or "us" and similar terms refer to IAC/InterActiveCorp and its subsidiaries (unless the context requires otherwise). As of March 31, 2019 , IAC’s economic and voting interest in: • Match Group were 80.4% , and 97.5% , respectively. All references to "Match Group" or "MTCH" in this report are to Match Group, Inc. • ANGI Homeservices were 83.3% , and 98.0% , respectively. All reference to "ANGI Homeservices" or "ANGI" in this report are to ANGI Homeservices Inc. Basis of Presentation and Consolidation The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP"). The consolidated financial statements include the accounts of the Company, all entities that are wholly-owned by the Company and all entities in which the Company has a controlling financial interest. Intercompany transactions and accounts have been eliminated. 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, 2018 . Accounting for Investments and Equity Securities 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 of the Financial Accounting Standards Board's ("FASB") issued Accounting Standards Update ("ASU") No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , following its adoption on January 1, 2018, with any changes to fair value 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 identical or similar investments of the same issuer; value 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 its equity securities for impairment each reporting period when there are qualitative factors or events that indicate possible impairment. Factors we consider in making this determination include negative changes in industry and market conditions, financial performance, business prospects, and other relevant events and factors. When indicators of impairment exist, the Company prepares quantitative assessments of the fair value of our equity securities, which require judgment and the use of estimates. When our assessment indicates that the fair value of the security is below the carrying value, the Company writes down the security to its fair value and records the corresponding charge within other income (expense), net. 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. At March 31, 2019 and December 31, 2018 , the Company did not have any investments accounted for using the equity method. 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: contingencies; 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 cash equivalents and marketable debt securities; 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"). For the three months ended March 31, 2019 and 2018 , consolidated revenue earned from Google was $195.8 million and $211.3 million , representing 18% and 21% , respectively, of the Company's consolidated revenue. A meaningful portion of this revenue is attributable to the services agreement with Google and earned by the Desktop business within the Applications segment and the Ask Media Group within the Emerging & Other segment. For the three months ended March 31, 2019 and 2018, revenue from Google of $88.1 million and $108.6 million was earned within the Applications segment and $96.3 million and $92.8 million within the Emerging & Other segment, respectively. Accounts receivable related to revenue earned from Google totaled $71.6 million and $69.1 million at March 31, 2019 and December 31, 2018 , respectively. The services agreement became effective on April 1, 2016, following the expiration of the previous services agreement, and expires on March 31, 2020. 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. On February 11, 2019, the Company and Google amended the services agreement, effective as of April 1, 2020. The amendment extends the expiration date of the agreement to March 31, 2023; provided, that beginning September 2020 and each September thereafter, either party may, after discussion with the other party, terminate the services agreement, effective on September 30 of the year following the year such notice is given. The Company believes that the amended agreement, taken as a whole, is comparable to the Company’s previously existing agreement with Google. Adoption of ASU No. 2016-02, Leases (Topic 842) The Company adopted ASU No. 2016-02, Leases (Topic 842) ("ASC 842") effective January 1, 2019. ASC 842 superseded previously existing guidance on accounting for leases and generally requires all leases to be recognized in the statement of financial position. The adoption of ASC 842 resulted in the recognition of $154.7 million of right of use assets ("ROU assets") and related lease liabilities as of January 1, 2019, with no cumulative effect adjustment. The adoption of ASC 842 had no impact on the Company’s consolidated statement of operations and consolidated statement of cash flows. In addition, the adoption of ASC 842 did not impact the leverage calculations set forth in the agreements governing the outstanding debt or credit agreements of the Company or its subsidiaries, because, in each circumstance, the leverage calculations are not affected by the lease liabilities that were recorded upon adoption of ASC 842. The Company adopted ASC 842 prospectively and, therefore, did not revise comparative period information or disclosure. In addition, the Company elected the package of practical expedients permitted under ASC 842. See " Note 3—Leases " for additional information on the adoption of ASC 842. Reclassifications |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION General Revenue Recognition 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 expects to be entitled to in exchange for those services or goods. The Company's disaggregated revenue disclosures are presented in " Note 9—Segment Information ." Deferred Revenue Deferred revenue consists of advance payments that are received or are contractually due in advance of the Company's performance. The Company’s deferred revenue is reported on a contract by contract basis at the end of each reporting period. The Company 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 current and non-current deferred revenue balances at December 31, 2018 are $360.0 million and $1.7 million , respectively. During the three months ended March 31, 2019 , the Company recognized $234.8 million of revenue that was included in the deferred revenue balance as of December 31, 2018. The current and non-current deferred revenue balances at March 31, 2019 are $386.9 million and $1.5 million , respectively. Non-current deferred revenue is included in “Other long-term liabilities” in the accompanying consolidated balance sheet. Practical Expedients and Exemptions As permitted under the practical expedient available under ASU No. 2014-09, Revenue from Contracts with Customers, 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. 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 amount of capitalized sales commissions where the customer relationship period is greater than one year is $42.3 million and $40.5 million |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases land, office space, data center facilities and equipment used in connection with its operations under various operating leases, the majority of which contain escalation clauses. The Company does not have any financing leases. ROU assets represent the Company’s right to use the underlying assets for the lease term and lease liabilities represent the present value of the Company’s obligation to make payments arising from leases. ROU assets and related lease liabilities are based on the present value of fixed lease payments over the lease term using the Company's and its publicly traded subsidiaries' respective incremental borrowing rates on the lease commencement date or January 1, 2019 for leases that commenced prior to that date. The Company combines the lease and non-lease components of lease payments in determining ROU assets and related lease liabilities. If the lease includes one or more options to extend the term of the lease, the renewal option is considered in the lease term if it is reasonably certain the Company will exercise the option. Leases with an initial term of twelve months or less ("short-term leases") are not recorded on the accompanying consolidated balance sheet. Lease expense is recognized on a straight-line basis over the term of the lease. Variable lease payments consist primarily of common area maintenance, utilities and taxes, which are not included in the recognition of ROU assets and related lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leases Balance Sheet Classification March 31, 2019 (In thousands) Assets: Right of use assets Right of use assets $ 172,558 Liabilities: Current lease liabilities Accrued expenses and other current liabilities 31,215 Long-term lease liabilities Other long-term liabilities 185,752 Total lease liabilities $ 216,967 Lease Cost Income Statement Classification Three Months Ended March 31, 2019 (In thousands) Fixed lease cost Cost of revenue $ 1,075 Fixed lease cost Selling and marketing expense 1,909 Fixed lease cost General and administrative expense 7,190 Fixed lease cost Product development expense 318 Total fixed lease cost (a) 10,492 Variable lease cost Cost of revenue 157 Variable lease cost Selling and marketing expense 304 Variable lease cost General and administrative expense 1,804 Variable lease cost Product development expense 54 Total variable lease cost 2,319 Net lease cost $ 12,811 _____________________ (a) Includes approximately $1.3 million of short-term lease cost and $0.5 million of sublease income. Maturities of lease liabilities (b) : March 31, 2019 (In thousands) 2019 30,727 2020 41,238 2021 35,037 2022 28,211 2023 25,022 After 2023 230,683 Total 390,918 Less: Interest 173,951 Present value of lease liabilities $ 216,967 _____________________ (b) Lease payments exclude $54.5 million of legally binding minimum lease payments for leases signed but not yet commenced. The following are the weighted average assumptions used for lease term and discount rate: March 31, 2019 Remaining lease term 15.8 years Discount rate 5.99 % Three Months Ended March 31, 2019 (In thousands) Other Information: Right of use assets obtained in exchange for lease liabilities $ 28,270 Cash paid for amounts included in the measurement of lease liabilities $ 13,175 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and 2018, the Company recorded an income tax benefit, despite pre-tax income, of $63.6 million and $29.0 million , respectively, due primarily to excess tax benefits generated by the exercise and vesting of stock-based awards. 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 2015 has been extended to December 31, 2019. Returns filed in 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 not accurately anticipate actual outcomes and, therefore, may require periodic adjustment. 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 March 31, 2019 and December 31, 2018 , unrecognized tax benefits, including interest and penalties, are $51.3 million and $52.3 million , respectively. If unrecognized tax benefits at March 31, 2019 are subsequently recognized, $48.0 million , net of related deferred tax assets and interest, would reduce income tax expense. The comparable amount as of December 31, 2018 was $49.1 million . The Company believes that it is reasonably possible that its unrecognized tax benefits could decrease by $24.0 million by March 31, 2019 , due to expirations of statutes of limitations or other settlements; $23.5 million |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Marketable Securities At March 31, 2019 and December 31, 2018 , the fair value of marketable securities are as follows: March 31, 2019 December 31, 2018 (In thousands) Available-for-sale marketable debt securities $ 39,954 $ 123,246 Marketable equity security 447 419 Total marketable securities $ 40,401 $ 123,665 At March 31, 2019 , current available-for-sale marketable debt securities are as follows: Amortized Gross Gross Fair Value (In thousands) Treasury discount notes $ 24,983 $ — $ — $ 24,983 Commercial paper 14,971 — — 14,971 Total available-for-sale marketable debt securities $ 39,954 $ — $ — $ 39,954 The contractual maturities of debt securities classified as current available-for-sale at March 31, 2019 are within one year . There are no investments in available-for-sale marketable debt securities that have been in a continuous unrealized loss position for longer than twelve months as of March 31, 2019 . At December 31, 2018 , current available-for-sale marketable debt securities were as follows: Amortized Gross Gross Fair Value (In thousands) Treasury discount notes $ 112,291 $ 3 $ (3 ) $ 112,291 Commercial paper 10,955 — — 10,955 Total available-for-sale marketable debt securities $ 123,246 $ 3 $ (3 ) $ 123,246 The following table presents the proceeds from maturities of available-for-sale marketable debt securities: Three Months Ended March 31, 2019 2018 (In thousands) Proceeds from maturities of available-for-sale marketable debt securities $ 123,500 $ 5,000 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 of available-for-sale marketable debt securities for the three months ended March 31, 2019 and 2018 . Equity securities without readily determinable fair values At March 31, 2019 and December 31, 2018 , the carrying values of the Company's investments in equity securities without readily determinable fair values totaled $234.6 million and $235.1 million , respectively, and are included in "Long-term investments" in the accompanying consolidated balance sheet. All gains and losses on equity securities without readily determinable fair values, realized and unrealized, are recognized in "other income (expense), 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 March 31, 2019 and 2018 . Three Months Ended March 31, 2019 2018 (In thousands) Upward adjustments (gross unrealized gains) $ — $ — Downward adjustments including impairment (gross unrealized losses) (150 ) (192 ) Total $ (150 ) $ (192 ) The cumulative upward and downward adjustments (including impairments) to the carrying value of equity securities without readily determinable fair values since the adoption of ASU 2016-01, on January 1, 2018, through March 31, 2019 were $129.0 million and $(2.6) million , respectively. Realized and unrealized gains and losses for the Company's marketable equity security and investments without readily determinable fair values for the three months ended March 31, 2019 and 2018 are as follows: Three Months Ended March 31, 2019 2018 (In thousands) Realized gains (losses), net, for equity securities sold $ 78 $ (103 ) Unrealized (losses) gains, net, on equity securities held (122 ) 145 Total (losses) gains recognized, net, in other income (expense), net $ (44 ) $ 42 Fair Value Measurements The Company categorizes its financial instruments measured at fair value into a fair value hierarchy that prioritizes the inputs used in pricing the asset or liability. The three levels of the fair value hierarchy are: • Level 1: Observable inputs obtained from independent sources, such as quoted 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. The following tables present the Company's financial instruments that are measured at fair value on a recurring basis: March 31, 2019 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 $ 733,882 $ — $ — $ 733,882 Treasury discount notes — 771,604 — 771,604 Commercial paper — 118,740 — 118,740 Time deposits — 110,036 — 110,036 Marketable securities: Treasury discount notes — 24,983 — 24,983 Commercial paper — 14,971 — 14,971 Marketable equity security 447 — — 447 Total $ 734,329 $ 1,040,334 $ — $ 1,774,663 Liabilities: Contingent consideration arrangement $ — $ — $ (28,186 ) $ (28,186 ) December 31, 2018 Quoted Market Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Measurements (In thousands) Assets: Cash equivalents: Money market funds $ 880,815 $ — $ — $ 880,815 Treasury discount notes — 561,733 — 561,733 Commercial paper — 162,417 — 162,417 Time deposits — 90,036 — 90,036 Marketable securities: Treasury discount notes — 112,291 — 112,291 Commercial paper — 10,955 — 10,955 Marketable equity security 419 — — 419 Total $ 881,234 $ 937,432 $ — $ 1,818,666 Liabilities: Contingent consideration arrangements $ — $ — $ (28,631 ) $ (28,631 ) 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 March 31, 2019 2018 (In thousands) Balance at January 1 $ (28,631 ) $ (2,647 ) Total net losses: Included in earnings: Fair value adjustments (1,529 ) (156 ) Included in other comprehensive loss (14 ) (110 ) Settlements 1,988 948 Balance at March 31 $ (28,186 ) $ (1,965 ) Contingent Consideration Arrangements At March 31, 2019 , the Company has one contingent consideration arrangement outstanding related to a business acquisition. The arrangement has a total maximum contingent payment of $45.0 million . At March 31, 2019 , the gross fair value of this arrangement, before unamortized discount, is $44.0 million . During the first quarter of 2019, the Company paid $2.0 million to settle a contingent consideration arrangement that was outstanding at December 31, 2018. 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 arrangement at March 31, 2019 reflect a discount rate of 25% . The fair value of the contingent consideration arrangements at December 31, 2018 reflect discount rates ranging from 12% to 25% . The fair value of contingent consideration arrangements is sensitive to changes in the forecasts of earnings and/or the relevant operating metrics and changes in discount rates. The Company remeasures the fair value of the contingent consideration arrangements each reporting period, including the accretion of the discount, if applicable, and changes are recognized in "General and administrative expense" in the accompanying consolidated statement of operations. The contingent consideration arrangement liability at March 31, 2019 and December 31, 2018 includes a non-current portion of $28.2 million and $26.6 million , respectively, and at December 31, 2018 a current portion of $2.0 million . At March 31, 2019 , there is no current portion of the contingent consideration arrangement liability. Current and non-current portions of the contingent consideration liability are included in “Accrued expenses and other current liabilities” and “Other long-term liabilities,” respectively, in the accompanying consolidated balance sheet. Assets measured at fair value on a nonrecurring basis The Company's non-financial assets, such as goodwill, intangible assets and property and equipment are adjusted to fair value only when an impairment 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 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: March 31, 2019 December 31, 2018 Carrying Fair Carrying Fair (In thousands) Current portion of long-term debt $ (13,750 ) $ (13,243 ) $ (13,750 ) $ (12,753 ) Long-term debt, net (a) (2,332,234 ) (2,683,980 ) (2,245,548 ) (2,460,204 ) _____________________ (a) At March 31, 2019 and December 31, 2018 , the carrying value of long-term debt, net includes unamortized original issue discount and debt issuance costs of $88.8 million and $88.9 million , respectively . At March 31, 2019 and December 31, 2018 , 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. At December 31, 2018, the Company considered the outstanding borrowings under the MTCH Credit Facility, which has a variable interest rate, to have a fair value equal to its carrying value. The outstanding borrowings under the MTCH Credit Facility were repaid with a portion of the net proceeds from the 5.625% MTCH Senior Notes issued on February 15, 2019. See " Note 6—Long-term Debt |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consists of: March 31, 2019 December 31, 2018 (In thousands) MTCH Debt: MTCH Term Loan due November 16, 2022 $ 425,000 $ 425,000 MTCH Credit Facility due December 7, 2023 — 260,000 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 5.625% Senior Notes due February 15, 2029 (the "5.625% MTCH Senior Notes"); interest payable each February 15 and August 15, commencing on August 15, 2019 350,000 — Total MTCH long-term debt 1,625,000 1,535,000 Less: unamortized original issue discount 7,023 7,352 Less: unamortized debt issuance costs 16,321 11,737 Total MTCH debt, net 1,601,656 1,515,911 ANGI Debt: ANGI Term Loan due November 5, 2023 257,813 261,250 Less: current portion of ANGI Term Loan 13,750 13,750 Less: unamortized debt issuance costs 2,399 2,529 Total ANGI debt, net 241,664 244,971 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 34,489 Total IAC long-term debt 551,989 551,989 Less: unamortized original issue discount 50,661 54,025 Less: unamortized debt issuance costs 12,414 13,298 Total IAC debt, net 488,914 484,666 Total long-term debt, net $ 2,332,234 $ 2,245,548 MTCH Senior Notes The 6.375% MTCH Senior Notes were issued on June 1, 2016. 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 set forth in the indenture governing the notes. 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. 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 set forth in the indenture governing the notes. 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 February 15, 2019, MTCH issued $350 million aggregate principal amount of its 5.625% Senior Notes. The proceeds were used to repay outstanding borrowings under the MTCH Credit Facility, to pay expenses associated with the offering, and for general corporate purposes. At any time prior to February 15, 2024, 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 set forth in the indenture governing the notes. 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 contain covenants that would limit MTCH's ability to pay dividends, make distributions or repurchase MTCH stock in the event a default has occurred or MTCH's consolidated leverage ratio (as defined in the indentures) exceeds 5.0 to 1.0 . At March 31, 2019 , there were no limitations pursuant thereto. There are additional covenants in those indentures 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. The indenture governing the 5.625% MTCH Senior Notes is less restrictive than the indentures governing the 6.375% and 5.00% MTCH Senior Notes and generally only limits MTCH's ability and the ability of its subsidiaries to, among other things, create liens on assets and limits MTCH's ability to consolidate, merge, sell or otherwise dispose of all or substantially all of its assets. All of MTCH's Senior Notes are ranked equally with each other. MTCH Term Loan and MTCH Credit Facility At both March 31, 2019 and December 31, 2018 , the outstanding balance on the MTCH Term Loan was $425 million . The MTCH Term Loan bears interest at LIBOR plus 2.50% , and was 5.08% and 5.09% at March 31, 2019 and December 31, 2018 , 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. As of March 31, 2019 , MTCH has a $500 million revolving credit facility (the "MTCH Credit Facility") that expires on December 7, 2023. At March 31, 2019 , there were no outstanding borrowings under the MTCH Credit Facility. At December 31, 2018, the outstanding borrowings under the MTCH Credit Facility were $260.0 million , which bore interest at LIBOR plus 1.50% , or approximately 4.00% , and were repaid with a portion of the net proceeds from the 5.625% MTCH Senior Notes, described above. The annual commitment fee on undrawn funds based on the current consolidated net leverage ratio is 25 basis points at both March 31, 2019 and December 31, 2018 . 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 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 2.0 to 1.0 (in each case as defined in the agreement). The MTCH Term Loan and MTCH Credit Facility contain covenants that would limit MTCH’s ability to pay dividends, make distributions or repurchase MTCH stock in the event MTCH’s secured net leverage ratio exceeds 2.0 to 1.0 , while the MTCH Term Loan remains outstanding and, thereafter, if the consolidated net leverage ratio exceeds 4.0 to 1.0 , or in the event a default has occurred. There are additional covenants under these MTCH debt agreements that limit the ability of MTCH and its subsidiaries to, among other things, incur indebtedness, pay dividends or make distributions. Obligations under the MTCH Credit Facility and MTCH Term Loan are unconditionally guaranteed by certain MTCH wholly-owned domestic subsidiaries and are 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% , 5.00% and 5.625% MTCH Senior Notes to the extent of the value of the assets securing the borrowings under the MTCH credit agreement. ANGI Term Loan and ANGI Credit Facility At March 31, 2019 and December 31, 2018 , the outstanding balance on the ANGI Term Loan was $257.8 million and $261.3 million , respectively. At both March 31, 2019 and December 31, 2018 , the ANGI Term Loan bears interest at LIBOR plus 1.50% . The spread over LIBOR is subject to change in future periods based on ANGI's consolidated net leverage ratio. The interest rate was approximately 4.00% at both March 31, 2019 and December 31, 2018 . Interest payments are due at least quarterly through the term of the loan. Additionally, there are quarterly principal payments of $3.4 million through December 31, 2021, $6.9 million for the one year period ending December 31, 2022 and $10.3 million through maturity of the loan when the final amount of $161.6 million is due. 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 2.0 to 1.0 (in each case as defined in the credit agreement). The ANGI Term Loan also contains covenants that would limit ANGI’s ability to pay dividends, make distributions or repurchase ANGI stock in the event a default has occurred or ANGI’s consolidated net leverage ratio exceeds 4.25 to 1.0 . 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. On November 5, 2018, ANGI entered into a five -year $250 million revolving credit facility (the "ANGI Credit Facility"). At March 31, 2019 and December 31, 2018, there were no outstanding borrowings under the ANGI Credit Facility. The annual commitment fee on undrawn funds is based on ANGI's consolidated net leverage ratio most recently reported, and is 25 basis points at both March 31, 2019 and December 31, 2018 . Borrowings under the ANGI Credit Facility bear interest, at ANGI's option, at either a base rate or LIBOR, in each case plus an applicable margin, which is determined based on ANGI's consolidated net leverage ratio. The financial and other covenants are the same as those for the ANGI Term Loan. The ANGI Term Loan and ANGI Credit Facility are guaranteed by ANGI's wholly-owned material domestic subsidiaries and are 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, which occurred in the third quarter of 2018 and in the first quarter of 2019; (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. We separately account for the debt and the equity components of the Exchangeable Notes, and therefore, the Company recorded an original issue discount and corresponding increase to additional paid-in capital of $70.4 million , which is the fair value attributed to the exchange feature of the debt upon issuance. The Company is amortizing the original issue 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% . For the three months ended March 31, 2019 and 2018, the Company incurred interest expense of $5.4 million and $5.2 million , which includes amortization of original issue discount of $3.4 million and $3.2 million , and debt issuance costs of $0.9 million and $0.9 million , respectively. As of March 31, 2019 and December 31, 2018 , the unamortized original issue discount is $50.7 million and $54.0 million , resulting in a net carrying value of the liability component of $466.8 million and $463.5 million , respectively. 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 "Warrants"). The if-converted value of the Exchangeable Notes exceeded its principal amount by $197.0 million and $105.0 million based on the Company's stock price on March 31, 2019 and December 31, 2018 , respectively. The Exchangeable Note Hedge is expected to reduce the potential dilutive effect on 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 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 strike price of the Warrants. 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 12—Guarantor and Non-Guarantor Financial Information " for financial information relating to guarantor and non-guarantor subsidiaries. The 4.75% Senior Notes may be redeemed at redemption prices set forth in the indenture governing the notes, together with accrued and unpaid interest thereon to the applicable redemption date. IAC Credit Facility As of March 31, 2019 , IAC has a $250 million revolving credit facility (the "IAC Credit Facility"), under which IAC Group, LLC, a subsidiary of the Company, is the borrower ("Borrower"), that expires on November 5, 2023. At March 31, 2019 and December 31, 2018 , there were no outstanding borrowings under the IAC Credit Facility. The annual commitment fee on undrawn funds is based on the consolidated net leverage ratio (as defined in the agreement) most recently reported, and is 20 basis points at both March 31, 2019 and December 31, 2018 . Borrowings under the IAC Credit Facility bear interest, at the Borrower'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 Borrower's consolidated net leverage ratio. The terms of the IAC Credit Facility require that the Borrower maintain a consolidated net leverage ratio of not more than 3.25 to 1.0 before the date on which the Borrower no longer holds majority of the outstanding voting stock of each of ANGI and MTCH ("Trigger Date") and no greater than 2.75 to 1.0 on or after the Trigger Date. The terms of the IAC Credit Facility also restrict the Borrower's 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, including the shares of MTCH and ANGI owned by the Borrower. The 4.75% |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 Foreign Currency Translation Adjustment Unrealized Gains On Available-For-Sale Debt Securities Accumulated Other Comprehensive (Loss) Income (In thousands) Balance as of January 1 $ (128,726 ) $ 4 $ (128,722 ) Other comprehensive income 993 2 995 Net current period other comprehensive income 993 2 995 Allocation of accumulated other comprehensive income related to the noncontrolling interests 1,008 — 1,008 Balance as of March 31 $ (126,725 ) $ 6 $ (126,719 ) Three Months Ended March 31, 2018 Foreign Currency Translation Adjustment Accumulated Other Comprehensive (Loss) Income (In thousands) Balance as of January 1 $ (103,568 ) $ (103,568 ) Other comprehensive income before reclassifications 28,218 28,218 Amounts reclassified to earnings 139 139 Net current period other comprehensive income 28,357 28,357 Allocation of accumulated other comprehensive income related to the noncontrolling interests 261 261 Balance as of March 31 $ (74,950 ) $ (74,950 ) The amount reclassified out of foreign currency translation adjustment into earnings for the three months ended March 31, 2018 relates to the liquidation of an international subsidiary. At both March 31, 2019 and 2018 , there was no |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share attributable to IAC shareholders: Three Months Ended March 31, 2019 2018 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator: Net earnings $ 112,985 $ 112,985 $ 87,839 $ 87,839 Net earnings attributable to noncontrolling interests (24,290 ) (24,290 ) (16,757 ) (16,757 ) Impact from public subsidiaries' dilutive securities (a) — (6,696 ) — (7,442 ) Net earnings attributable to IAC shareholders $ 88,695 $ 81,999 $ 71,082 $ 63,640 Denominator: Weighted average basic shares outstanding 83,905 83,905 82,983 82,983 Dilutive securities (a) (b) (c) (d) — 6,435 — 6,086 Denominator for earnings per share—weighted average shares (a) (b) (c) (d) 83,905 90,340 82,983 89,069 Earnings per share attributable to IAC shareholders: Earnings per share $ 1.06 $ 0.91 $ 0.86 $ 0.71 _____________________ (a) IAC has the option to settle certain MTCH and ANGI stock-based awards in its shares. For the three months ended March 31, 2019 and 2018 , it is more dilutive for IAC to settle certain ANGI equity awards and MTCH to settle certain MTCH equity awards. (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. For the three months ended March 31, 2019 and 2018, 3.4 million and 6.8 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 three months ended March 31, 2019 and 2018, 0.3 million and 0.2 million shares, respectively, underlying market-based awards and PSUs were excluded from the calculation of diluted earnings per share because the market or performance conditions had not been met. (d) It is the Company's intention to settle the Exchangeable Notes through a combination of cash, equal to the face amount of the notes, and shares; 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. For the three months ended March 31, 2019 , the average price of IAC common stock exceeded $152.18 and the dilutive impact of the Exchangeable Notes was 0.9 million shares. For the three months ended March 31, 2018 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The overall concept that the Company employs in determining its operating segments is to present the financial information in a manner consistent with: how the chief operating decision maker views the businesses; how the businesses are organized as to segment management; and the focus of the businesses with regards to the types of services or products offered or the target market. Operating segments are combined for reporting purposes if they meet certain aggregation criteria, which principally relate to the similarity of their economic characteristics or, in the case of the Emerging & Other reportable segment, do not meet the quantitative thresholds that require presentation as separate reportable segments. The following table presents revenue by reportable segment: Three Months Ended March 31, 2019 2018 (In thousands) Revenue: Match Group $ 464,625 $ 407,367 ANGI Homeservices 303,443 255,311 Vimeo 43,581 35,568 Dotdash 33,961 30,031 Applications 143,549 131,987 Emerging & Other 116,748 134,885 Inter-segment eliminations (64 ) (74 ) Total $ 1,105,843 $ 995,075 The following table presents the revenue of the Company's segments disaggregated by type of service: Three Months Ended March 31, 2019 2018 (In thousands) Match Group Direct revenue: North America $ 237,773 $ 211,357 International 216,189 181,380 Total Direct revenue 453,962 392,737 Indirect revenue (principally advertising revenue) 10,663 14,630 Total Match Group revenue $ 464,625 $ 407,367 ANGI Homeservices Marketplace: Consumer connection revenue $ 201,582 $ 149,060 Membership subscription revenue 16,517 15,627 Other revenue 1,826 921 Marketplace revenue 219,925 165,608 Advertising and other revenue 62,069 70,418 Total North America 281,994 236,026 Consumer connection revenue 17,123 14,367 Membership subscription revenue 3,742 4,671 Advertising and other revenue 584 247 Total Europe 21,449 19,285 Total ANGI Homeservices revenue $ 303,443 $ 255,311 Vimeo Platform revenue $ 41,302 $ 32,932 Hardware revenue 2,279 2,636 Total Vimeo revenue $ 43,581 $ 35,568 Dotdash Advertising revenue $ 28,919 $ 25,744 Affiliate commerce commission and other revenue 5,042 4,287 Three Months Ended March 31, 2019 2018 (In thousands) Total Dotdash revenue $ 33,961 $ 30,031 Applications Desktop Advertising revenue: Google advertising revenue $ 88,050 $ 108,577 Other 3,348 1,695 Advertising revenue 91,398 110,272 Subscription and other revenue 4,588 7,316 Total Desktop 95,986 117,588 Mosaic Group Subscription and other revenue 45,148 9,009 Advertising revenue 2,415 5,390 Total Mosaic Group 47,563 14,399 Total Applications revenue $ 143,549 $ 131,987 Emerging & Other Advertising revenue: Google advertising revenue $ 96,273 $ 92,751 Other 6,977 13,269 Advertising revenue 103,250 106,020 Other revenue 13,498 28,865 Total Emerging & Other revenue $ 116,748 $ 134,885 Revenue by geography is based on where the customer is located. Geographic information about revenue and long-lived assets is presented below: Three Months Ended March 31, 2019 2018 (In thousands) Revenue: United States $ 712,381 $ 657,580 All other countries 393,462 337,495 Total $ 1,105,843 $ 995,075 March 31, December 31, (In thousands) Long-lived assets (excluding goodwill and intangible assets): United States $ 298,534 $ 289,756 All other countries 27,354 29,044 Total $ 325,888 $ 318,800 The following tables present operating income (loss) and Adjusted EBTIDA by reportable segment: Three Months Ended March 31, 2019 2018 (In thousands) Operating Income (Loss): Match Group $ 118,828 $ 112,233 ANGI Homeservices (3,641 ) (10,756 ) Vimeo (17,784 ) (9,748 ) Dotdash 3,047 3,191 Applications 25,356 25,461 Emerging & Other (2,520 ) 6,493 Corporate (43,413 ) (36,924 ) Total $ 79,873 $ 89,950 Three Months Ended March 31, 2019 2018 (In thousands) Adjusted EBITDA (a) : Match Group $ 155,067 $ 137,741 ANGI Homeservices $ 37,179 $ 36,640 Vimeo $ (16,200 ) $ (7,784 ) Dotdash $ 7,150 $ 3,849 Applications $ 29,688 $ 26,752 Emerging & Other $ (2,095 ) $ 8,208 Corporate $ (20,220 ) $ (17,008 ) _____________________ (a) 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 because it excludes the impact of these expenses. The following tables reconcile operating income (loss) for the Company's reportable segments and net earnings attributable to IAC shareholders to Adjusted EBITDA: Three Months Ended March 31, 2019 Operating Income (Loss) Stock-Based Compensation Expense Depreciation Amortization of Intangibles Acquisition-related Contingent Consideration Fair Value Adjustments Adjusted EBITDA (In thousands) Match Group $ 118,828 $ 27,997 $ 7,831 $ 411 $ — $ 155,067 ANGI Homeservices (3,641 ) $ 19,282 $ 6,999 $ 14,539 $ — $ 37,179 Vimeo (17,784 ) $ — $ 193 $ 1,391 $ — $ (16,200 ) Dotdash 3,047 $ — $ 226 $ 3,877 $ — $ 7,150 Applications 25,356 $ — $ 419 $ 2,384 $ 1,529 $ 29,688 Emerging & Other (2,520 ) $ — $ 275 $ 150 $ — $ (2,095 ) Corporate (43,413 ) $ 20,165 $ 3,028 $ — $ — $ (20,220 ) Operating income 79,873 Interest expense (31,143 ) Other income, net 651 Earnings before income taxes 49,381 Income tax benefit 63,604 Net earnings 112,985 Net earnings attributable to noncontrolling interests (24,290 ) Net earnings attributable to IAC shareholders $ 88,695 Three Months Ended March 31, 2018 Operating Income (Loss) Stock-Based Compensation Expense Depreciation Amortization of Intangibles Acquisition-related Contingent Consideration Fair Value Adjustments Adjusted EBITDA (In thousands) Match Group $ 112,233 $ 16,963 $ 8,147 $ 242 $ 156 $ 137,741 ANGI Homeservices (10,756 ) $ 24,906 $ 6,184 $ 16,306 $ — $ 36,640 Vimeo (9,748 ) $ — $ 335 $ 1,629 $ — $ (7,784 ) Dotdash 3,191 $ — $ 249 $ 409 $ — $ 3,849 Applications 25,461 $ — $ 755 $ 536 $ — $ 26,752 Emerging & Other 6,493 $ 131 $ 753 $ 831 $ — $ 8,208 Corporate (36,924 ) $ 17,082 $ 2,834 $ — $ — $ (17,008 ) Operating income 89,950 Interest expense (26,505 ) Other expense, net (4,619 ) Earnings before income taxes 58,826 Income tax benefit 29,013 Net earnings 87,839 Net earnings attributable to noncontrolling interests (16,757 ) Net earnings attributable to IAC shareholders $ 71,082 |
CONSOLIDATED FINANCIAL STATEMEN
CONSOLIDATED FINANCIAL STATEMENT DETAILS | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONSOLIDATED FINANCIAL STATEMENT DETAILS | CONSOLIDATED FINANCIAL STATEMENT DETAILS Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows: March 31, 2019 December 31, 2018 March 31, 2018 December 31, 2017 (In thousands) Cash and cash equivalents $ 2,217,337 $ 2,131,632 $ 1,657,537 $ 1,630,809 Restricted cash included in other current assets 1,635 1,633 2,860 2,873 Restricted cash included in other assets 416 420 — — Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flows $ 2,219,388 $ 2,133,685 $ 1,660,397 $ 1,633,682 Restricted cash at March 31, 2019 and December 31, 2018 primarily consist of a cash collateralized letter of credit and a deposit related to corporate credit cards. Restricted cash at March 31, 2018 and December 31, 2017 primarily supports a letter of credit to a supplier, which was released to the Company in the second quarter of 2018. Other income (expense), net Three Months Ended March 31, 2019 2018 (In thousands) Other income (expense), net $651 $(4,619) Other income, net in 2019 includes: $12.4 million of interest income; $8.1 million loss related to the sale of a business; and $1.9 million in net foreign currency exchange losses due primarily to the weakening of the U.S. dollar and the Euro relative to the British Pound during the three months ended March 31, 2019 . Other expense, net in 2018 includes: $7.9 million in net foreign currency exchange losses due primarily to the weakening of the U.S. dollar relative to the British Pound and Euro during the three months ended March 31, 2018 ; and $5.2 million |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [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 4—Income Taxes " for additional information related to income tax contingencies. On August 14, 2018, ten then-current and former employees of Match Group, LLC or Tinder, Inc. ("Tinder"), an operating business of Match Group, filed a lawsuit in New York state court against IAC and Match Group. See Sean Rad et al. v. IAC/InterActiveCorp and Match Group, Inc. , No. 654038/2018 (Supreme Court, New York County). The complaint alleges that in 2017, the defendants: (i) wrongfully interfered with a contractually established process for the independent valuation of Tinder by certain investment banks, resulting in a substantial undervaluation of Tinder and a consequent underpayment to the plaintiffs upon exercise of their Tinder stock options, and (ii) then wrongfully merged Tinder into Match Group, thereby depriving one of the plaintiffs (Mr. Rad) of his contractual right to later valuations of Tinder on a stand-alone basis. The complaint asserts claims for breach of contract, breach of the implied covenant of good faith and fair dealing, unjust enrichment, interference with contractual relations (as against Match Group only), and interference with prospective economic advantage, and seeks compensatory damages in the amount of at least $2 billion |
GUARANTOR AND NON-GUARANTOR FIN
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION | GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION The 4.75% Senior Notes are unconditionally guaranteed, jointly and severally, by certain domestic subsidiaries which are 100% owned by the Company. The following tables present condensed consolidating financial information at March 31, 2019 and December 31, 2018 and for the three months ended March 31, 2019 and 2018 for: IAC, on a stand-alone basis; the combined guarantor subsidiaries of IAC; the combined non-guarantor subsidiaries of IAC; and IAC on a consolidated basis. Balance sheet at March 31, 2019: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Cash and cash equivalents $ 1,113,281 $ — $ 1,104,056 $ — $ 2,217,337 Marketable securities 39,954 — 447 — 40,401 Accounts receivable, net of allowance and reserves — 89,587 256,099 — 345,686 Other current assets 27,074 32,254 167,891 (745 ) 226,474 Intercompany receivables — 1,445,130 — (1,445,130 ) — Right of use assets 561 41,185 147,816 (17,004 ) 172,558 Property and equipment, net of accumulated depreciation and amortization 6,598 160,419 158,871 — 325,888 Goodwill — 412,009 2,333,779 — 2,745,788 Intangible assets, net of accumulated amortization — 40,037 568,072 — 608,109 Investment in subsidiaries 1,753,945 231,897 — (1,985,842 ) — Other non-current assets 285,842 94,691 233,400 (136,272 ) 477,661 Total assets $ 3,227,255 $ 2,547,209 $ 4,970,431 $ (3,584,993 ) $ 7,159,902 Current portion of long-term debt $ — $ — $ 13,750 $ — $ 13,750 Accounts payable, trade 790 33,600 49,145 — 83,535 Other current liabilities 22,158 83,816 709,213 (4,652 ) 810,535 Long-term debt, net 34,277 — 2,297,957 — 2,332,234 Income taxes payable — 1,660 34,516 — 36,176 Intercompany liabilities 389,873 — 1,055,257 (1,445,130 ) — Other long-term liabilities 296 55,644 333,851 (149,369 ) 240,422 Redeemable noncontrolling interests — — 71,914 — 71,914 Shareholders' equity (deficit) 2,779,861 2,372,489 (386,647 ) (1,985,842 ) 2,779,861 Noncontrolling interests — — 791,475 — 791,475 Total liabilities and shareholders' equity $ 3,227,255 $ 2,547,209 $ 4,970,431 $ (3,584,993 ) $ 7,159,902 Balance sheet at December 31, 2018: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Cash and cash equivalents $ 1,018,082 $ — $ 1,113,550 $ — $ 2,131,632 Marketable securities 98,299 — 25,366 — 123,665 Accounts receivable, net of allowance and reserves — 99,970 179,219 — 279,189 Other current assets 39,449 29,222 171,682 (12,100 ) 228,253 Intercompany receivables — 1,423,456 — (1,423,456 ) — Property and equipment, net of accumulated depreciation and amortization 6,526 163,281 148,993 — 318,800 Goodwill — 412,009 2,314,850 — 2,726,859 Intangible assets, net of accumulated amortization — 43,914 587,508 — 631,422 Investment in subsidiaries 1,897,699 214,519 — (2,112,218 ) — Other non-current assets 274,789 94,290 251,315 (185,629 ) 434,765 Total assets $ 3,334,844 $ 2,480,661 $ 4,792,483 $ (3,733,403 ) $ 6,874,585 Current portion of long-term debt $ — $ — $ 13,750 $ — $ 13,750 Accounts payable, trade 1,304 36,293 37,310 — 74,907 Other current liabilities 41,721 95,405 669,875 (12,100 ) 794,901 Long-term debt, net 34,262 — 2,211,286 — 2,245,548 Income taxes payable 15 1,707 35,862 — 37,584 Intercompany liabilities 414,156 — 1,009,300 (1,423,456 ) — Other long-term liabilities 261 18,181 257,594 (185,629 ) 90,407 Redeemable noncontrolling interests — — 65,687 — 65,687 Shareholders' equity (deficit) 2,843,125 2,329,075 (216,857 ) (2,112,218 ) 2,843,125 Noncontrolling interests — — 708,676 — 708,676 Total liabilities and shareholders' equity $ 3,334,844 $ 2,480,661 $ 4,792,483 $ (3,733,403 ) $ 6,874,585 Statement of operations for the three months ended March 31, 2019: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Revenue $ — $ 198,930 $ 906,978 $ (65 ) $ 1,105,843 Operating costs and expenses: Cost of revenue (exclusive of depreciation shown separately below) 24 82,146 177,966 (65 ) 260,071 Selling and marketing expense 362 57,966 363,562 (30 ) 421,860 General and administrative expense 38,259 10,534 164,793 30 213,616 Product development expense 647 12,037 76,016 — 88,700 Depreciation 378 2,922 15,671 — 18,971 Amortization of intangibles — 3,877 18,875 — 22,752 Total operating costs and expenses 39,670 169,482 816,883 (65 ) 1,025,970 Operating (loss) income (39,670 ) 29,448 90,095 — 79,873 Equity in earnings of unconsolidated affiliates 115,440 1,068 — (116,508 ) — Interest expense (424 ) — (30,719 ) — (31,143 ) Other (expense) income, net (1,897 ) 13,851 420 (11,723 ) 651 Earnings before income taxes 73,449 44,367 59,796 (128,231 ) 49,381 Income tax benefit (provision) 15,246 (5,123 ) 53,481 — 63,604 Net earnings 88,695 39,244 113,277 (128,231 ) 112,985 Net earnings attributable to noncontrolling interests — — (24,290 ) — (24,290 ) Net earnings attributable to IAC shareholders $ 88,695 $ 39,244 $ 88,987 $ (128,231 ) $ 88,695 Comprehensive income attributable to IAC shareholders $ 89,690 $ 39,455 $ 90,100 $ (129,555 ) $ 89,690 Statement of operations for the three months ended March 31, 2018: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Revenue $ — $ 212,889 $ 782,260 $ (74 ) $ 995,075 Operating costs and expenses: Cost of revenue (exclusive of depreciation shown separately below) 76 56,224 145,712 (50 ) 201,962 Selling and marketing expense 213 90,138 312,526 (45 ) 402,832 General and administrative expense 31,409 15,381 137,373 21 184,184 Product development expense 652 14,269 62,016 — 76,937 Depreciation 266 3,340 15,651 — 19,257 Amortization of intangibles — 509 19,444 — 19,953 Total operating costs and expenses 32,616 179,861 692,722 (74 ) 905,125 Operating (loss) income (32,616 ) 33,028 89,538 — 89,950 Equity in earnings (losses) of unconsolidated affiliates 102,750 (327 ) — (102,423 ) — Interest expense (429 ) — (26,076 ) — (26,505 ) Other (expense) income, net (a) (16,847 ) 286,883 2,190 (276,845 ) (4,619 ) Earnings before income taxes 52,858 319,584 65,652 (379,268 ) 58,826 Income tax benefit (provision) 18,224 (10,966 ) 21,755 — 29,013 Net earnings 71,082 308,618 87,407 (379,268 ) 87,839 Net earnings attributable to noncontrolling interests — — (16,757 ) — (16,757 ) Net earnings attributable to IAC shareholders $ 71,082 $ 308,618 $ 70,650 $ (379,268 ) $ 71,082 Comprehensive income attributable to IAC shareholders $ 99,439 $ 308,961 $ 105,327 $ (414,288 ) $ 99,439 _____________________ (a) During the three months ended March 31, 2018 , foreign cash of $276.0 million was repatriated to the U.S. Statement of cash flows for the three months ended March 31, 2019: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Net cash (used in) provided by operating activities $ (40,242 ) $ 40,574 $ 114,332 $ (11,723 ) $ 102,941 Cash flows from investing activities: Acquisitions, net of cash acquired — (1,214 ) (20,341 ) — (21,555 ) Capital expenditures (531 ) (39 ) (25,285 ) — (25,855 ) Proceeds from maturities of marketable debt securities 98,500 — 25,000 — 123,500 Purchases of marketable debt securities (39,740 ) — — — (39,740 ) Net proceeds from the sale of businesses and investments — 39 20,433 — 20,472 Other, net — (2,034 ) 819 — (1,215 ) Net cash provided by (used in) investing activities 58,229 (3,248 ) 626 — 55,607 Cash flows from financing activities: Borrowings under Match Group Credit Facility — — 40,000 — 40,000 Proceeds from Match Group 2019 Senior Notes offering — — 350,000 — 350,000 Principal payments on Match Group Credit Facility — — (300,000 ) — (300,000 ) Principal payment on ANGI Homeservices Term Loan — — (3,438 ) — (3,438 ) Debt issuance costs — — (5,542 ) — (5,542 ) Purchase of Match Group treasury stock — — (24,186 ) — (24,186 ) Proceeds from the exercise of IAC stock options 9,298 — — — 9,298 Proceeds from the exercise of Match Group and ANGI Homeservices stock options — — 573 — 573 Withholding taxes paid on behalf of IAC employees on net settled stock-based awards (14,062 ) — — — (14,062 ) Withholding taxes paid on behalf of Match Group and ANGI Homeservices employees on net settled stock-based awards — — (123,148 ) — (123,148 ) Purchase of noncontrolling interests (3,182 ) — — — (3,182 ) Distribution to IAC pursuant to the ANGI tax sharing agreement 11,355 — (11,355 ) — — Intercompany 73,803 (37,326 ) (48,200 ) 11,723 — Other, net — — 27 — 27 Net cash provided by (used in) financing activities 77,212 (37,326 ) (125,269 ) 11,723 (73,660 ) Total cash provided (used) 95,199 — (10,311 ) — 84,888 Effect of exchange rate changes on cash, cash equivalents, and restricted cash — — 815 — 815 Net increase (decrease) in cash, cash equivalents, and restricted cash 95,199 — (9,496 ) — 85,703 Cash, cash equivalents, and restricted cash at beginning of period 1,018,082 — 1,115,603 — 2,133,685 Cash, cash equivalents, and restricted cash at end of period $ 1,113,281 $ — $ 1,106,107 $ — $ 2,219,388 Statement of cash flows for the three months ended March 31, 2018: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Net cash provided by operating activities $ 1,562 $ 319,686 $ 107,605 $ (276,845 ) $ 152,008 Cash flows from investing activities: Acquisitions, net of cash acquired (4,134 ) — (17,161 ) — (21,295 ) Capital expenditures — (570 ) (14,231 ) — (14,801 ) Proceeds from maturities of marketable debt securities 5,000 — — — 5,000 Purchases of marketable debt securities (4,975 ) — — — (4,975 ) Net proceeds from the sale of investments — — 15 — 15 Purchases of investments (18,180 ) — — — (18,180 ) Other, net (5,000 ) 3,884 10,463 — 9,347 Net cash (used in) provided by investing activities (27,289 ) 3,314 (20,914 ) — (44,889 ) Cash flows from financing activities: Principal payment on ANGI Homeservices Term Loan — — (3,438 ) — (3,438 ) Debt issuance costs — — (193 ) — (193 ) Purchase of Match Group treasury stock — — (32,465 ) — (32,465 ) Proceeds from the exercise of IAC stock options 24,254 — — — 24,254 Proceeds from the exercise of Match Group and ANGI Homeservices stock options — 1,752 — 1,752 Withholding taxes paid on behalf of IAC employees on net settled stock-based awards (282 ) — — — (282 ) Withholding taxes paid on behalf of Match Group and ANGI Homeservices employees on net settled stock-based awards — — (75,028 ) — (75,028 ) Purchase of noncontrolling interests — — (234 ) — (234 ) Acquisition-related contingent consideration payments — — (185 ) — (185 ) Intercompany 308,822 (323,000 ) (262,667 ) 276,845 — Other, net 2,674 — (5 ) — 2,669 Net cash provided by (used in) financing activities 335,468 (323,000 ) (372,463 ) 276,845 (83,150 ) Total cash provided (used) 309,741 — (285,772 ) — 23,969 Effect of exchange rate changes on cash, cash equivalents, and restricted cash 26 — 2,720 — 2,746 Net increase (decrease) in cash, cash equivalents, and restricted cash 309,767 — (283,052 ) — 26,715 Cash, cash equivalents, and restricted cash at beginning of period 585,639 — 1,048,043 — 1,633,682 Cash, cash equivalents, and restricted cash at end of period $ 895,406 $ — $ 764,991 $ — $ 1,660,397 |
THE COMPANY AND SUMMARY OF SI_2
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations IAC has majority ownership of both Match Group, which includes Tinder, Match, PlentyOfFish and OkCupid, and ANGI Homeservices, which includes HomeAdvisor, Angie’s List and Handy, and also operates Vimeo and Dotdash, among many other online businesses. |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP"). |
Accounting for Investments and Equity Securities | Accounting for Investments and Equity Securities 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 of the Financial Accounting Standards Board's ("FASB") issued Accounting Standards Update ("ASU") No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , following its adoption on January 1, 2018, with any changes to fair value 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 identical or similar investments of the same issuer; value 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 its equity securities for impairment each reporting period when there are qualitative factors or events that indicate possible impairment. Factors we consider in making this determination include negative changes in industry and market conditions, financial performance, business prospects, and other relevant events and factors. When indicators of impairment exist, the Company prepares quantitative assessments of the fair value of our equity securities, which require judgment and the use of estimates. When our assessment indicates that the fair value of the security is below the carrying value, the Company writes down the security to its fair value and records the corresponding charge within other income (expense), net. Investments in the common stock or in-substance common stock of entities in which the Company has the ability to |
Accounting Estimates | Accounting Estimates Management of the Company is required to make certain estimates, judgments and assumptions during the preparation of its consolidated financial statements in accordance with GAAP. These estimates, judgments and assumptions impact the reported amounts of assets, liabilities, revenue and expenses and the related disclosure of contingent assets and liabilities. Actual results could differ from these estimates. On an ongoing basis, the Company evaluates its estimates and judgments, including those related to: contingencies; 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 cash equivalents and marketable debt securities; 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 | Certain Risks and ConcentrationsA 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"). |
Adoption of ASU No. 2016-02, Leases (Topic 842) | Adoption of ASU No. 2016-02, Leases (Topic 842) The Company adopted ASU No. 2016-02, Leases (Topic 842) ("ASC 842") effective January 1, 2019. ASC 842 superseded previously existing guidance on accounting for leases and generally requires all leases to be recognized in the statement of financial position. The adoption of ASC 842 resulted in the recognition of $154.7 million of right of use assets ("ROU assets") and related lease liabilities as of January 1, 2019, with no cumulative effect adjustment. The adoption of ASC 842 had no impact on the Company’s consolidated statement of operations and consolidated statement of cash flows. In addition, the adoption of ASC 842 did not impact the leverage calculations set forth in the agreements governing the outstanding debt or credit agreements of the Company or its subsidiaries, because, in each circumstance, the leverage calculations are not affected by the lease liabilities that were recorded upon adoption of ASC 842. The Company adopted ASC 842 prospectively and, therefore, did not revise comparative period information or disclosure. In addition, the Company elected the package of practical expedients permitted under ASC 842. See " Note 3—Leases |
Reclassifications | ReclassificationsCertain prior year amounts have been reclassified to conform to the current year presentation. |
General Revenue Recognition | General Revenue RecognitionRevenue 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 expects to be entitled to in exchange for those services or goods. |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information of Leases | Leases Balance Sheet Classification March 31, 2019 (In thousands) Assets: Right of use assets Right of use assets $ 172,558 Liabilities: Current lease liabilities Accrued expenses and other current liabilities 31,215 Long-term lease liabilities Other long-term liabilities 185,752 Total lease liabilities $ 216,967 |
Schedule of Lease Cost and Other Information | Lease Cost Income Statement Classification Three Months Ended March 31, 2019 (In thousands) Fixed lease cost Cost of revenue $ 1,075 Fixed lease cost Selling and marketing expense 1,909 Fixed lease cost General and administrative expense 7,190 Fixed lease cost Product development expense 318 Total fixed lease cost (a) 10,492 Variable lease cost Cost of revenue 157 Variable lease cost Selling and marketing expense 304 Variable lease cost General and administrative expense 1,804 Variable lease cost Product development expense 54 Total variable lease cost 2,319 Net lease cost $ 12,811 _____________________ (a) Includes approximately $1.3 million of short-term lease cost and $0.5 million Three Months Ended March 31, 2019 (In thousands) Other Information: Right of use assets obtained in exchange for lease liabilities $ 28,270 Cash paid for amounts included in the measurement of lease liabilities $ 13,175 |
Schedule of Maturities of Operating Lease Liabilities | Maturities of lease liabilities (b) : March 31, 2019 (In thousands) 2019 30,727 2020 41,238 2021 35,037 2022 28,211 2023 25,022 After 2023 230,683 Total 390,918 Less: Interest 173,951 Present value of lease liabilities $ 216,967 _____________________ (b) Lease payments exclude $54.5 million of legally binding minimum lease payments for leases signed but not yet commenced. |
Schedule of Weighted-Average Lease Term and Discount Rate of Leases | The following are the weighted average assumptions used for lease term and discount rate: March 31, 2019 Remaining lease term 15.8 years Discount rate 5.99 % |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Marketable Securities | At March 31, 2019 and December 31, 2018 , the fair value of marketable securities are as follows: March 31, 2019 December 31, 2018 (In thousands) Available-for-sale marketable debt securities $ 39,954 $ 123,246 Marketable equity security 447 419 Total marketable securities $ 40,401 $ 123,665 |
Schedule of Current Available-for-sale Marketable Securities | At December 31, 2018 , current available-for-sale marketable debt securities were as follows: Amortized Gross Gross Fair Value (In thousands) Treasury discount notes $ 112,291 $ 3 $ (3 ) $ 112,291 Commercial paper 10,955 — — 10,955 Total available-for-sale marketable debt securities $ 123,246 $ 3 $ (3 ) $ 123,246 March 31, 2019 , current available-for-sale marketable debt securities are as follows: Amortized Gross Gross Fair Value (In thousands) Treasury discount notes $ 24,983 $ — $ — $ 24,983 Commercial paper 14,971 — — 14,971 Total available-for-sale marketable debt securities $ 39,954 $ — $ — $ 39,954 |
Schedule of Proceeds from Maturities and Sales of Available-for-sale Marketable Debt Securities | The following table presents the proceeds from maturities of available-for-sale marketable debt securities: Three Months Ended March 31, 2019 2018 (In thousands) Proceeds from maturities of available-for-sale marketable debt securities $ 123,500 $ 5,000 |
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 March 31, 2019 and 2018 . Three Months Ended March 31, 2019 2018 (In thousands) Upward adjustments (gross unrealized gains) $ — $ — Downward adjustments including impairment (gross unrealized losses) (150 ) (192 ) Total $ (150 ) $ (192 ) The cumulative upward and downward adjustments (including impairments) to the carrying value of equity securities without readily determinable fair values since the adoption of ASU 2016-01, on January 1, 2018, through March 31, 2019 were $129.0 million and $(2.6) million , respectively. Realized and unrealized gains and losses for the Company's marketable equity security and investments without readily determinable fair values for the three months ended March 31, 2019 and 2018 are as follows: Three Months Ended March 31, 2019 2018 (In thousands) Realized gains (losses), net, for equity securities sold $ 78 $ (103 ) Unrealized (losses) gains, net, on equity securities held (122 ) 145 Total (losses) gains recognized, net, in other income (expense), net $ (44 ) $ 42 |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the Company's financial instruments that are measured at fair value on a recurring basis: March 31, 2019 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 $ 733,882 $ — $ — $ 733,882 Treasury discount notes — 771,604 — 771,604 Commercial paper — 118,740 — 118,740 Time deposits — 110,036 — 110,036 Marketable securities: Treasury discount notes — 24,983 — 24,983 Commercial paper — 14,971 — 14,971 Marketable equity security 447 — — 447 Total $ 734,329 $ 1,040,334 $ — $ 1,774,663 Liabilities: Contingent consideration arrangement $ — $ — $ (28,186 ) $ (28,186 ) December 31, 2018 Quoted Market Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Measurements (In thousands) Assets: Cash equivalents: Money market funds $ 880,815 $ — $ — $ 880,815 Treasury discount notes — 561,733 — 561,733 Commercial paper — 162,417 — 162,417 Time deposits — 90,036 — 90,036 Marketable securities: Treasury discount notes — 112,291 — 112,291 Commercial paper — 10,955 — 10,955 Marketable equity security 419 — — 419 Total $ 881,234 $ 937,432 $ — $ 1,818,666 Liabilities: Contingent consideration arrangements $ — $ — $ (28,631 ) $ (28,631 ) |
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 March 31, 2019 2018 (In thousands) Balance at January 1 $ (28,631 ) $ (2,647 ) Total net losses: Included in earnings: Fair value adjustments (1,529 ) (156 ) Included in other comprehensive loss (14 ) (110 ) Settlements 1,988 948 Balance at March 31 $ (28,186 ) $ (1,965 ) |
Schedule of Carrying Value and the Fair Value of Financial Instruments Measured at Fair Value Only for Disclosure Purposes | The following table presents the carrying value and the fair value of financial instruments measured at fair value only for disclosure purposes: March 31, 2019 December 31, 2018 Carrying Fair Carrying Fair (In thousands) Current portion of long-term debt $ (13,750 ) $ (13,243 ) $ (13,750 ) $ (12,753 ) Long-term debt, net (a) (2,332,234 ) (2,683,980 ) (2,245,548 ) (2,460,204 ) _____________________ (a) At March 31, 2019 and December 31, 2018 , the carrying value of long-term debt, net includes unamortized original issue discount and debt issuance costs of $88.8 million and $88.9 million , respectively |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of: March 31, 2019 December 31, 2018 (In thousands) MTCH Debt: MTCH Term Loan due November 16, 2022 $ 425,000 $ 425,000 MTCH Credit Facility due December 7, 2023 — 260,000 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 5.625% Senior Notes due February 15, 2029 (the "5.625% MTCH Senior Notes"); interest payable each February 15 and August 15, commencing on August 15, 2019 350,000 — Total MTCH long-term debt 1,625,000 1,535,000 Less: unamortized original issue discount 7,023 7,352 Less: unamortized debt issuance costs 16,321 11,737 Total MTCH debt, net 1,601,656 1,515,911 ANGI Debt: ANGI Term Loan due November 5, 2023 257,813 261,250 Less: current portion of ANGI Term Loan 13,750 13,750 Less: unamortized debt issuance costs 2,399 2,529 Total ANGI debt, net 241,664 244,971 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 34,489 Total IAC long-term debt 551,989 551,989 Less: unamortized original issue discount 50,661 54,025 Less: unamortized debt issuance costs 12,414 13,298 Total IAC debt, net 488,914 484,666 Total long-term debt, net $ 2,332,234 $ 2,245,548 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 Foreign Currency Translation Adjustment Unrealized Gains On Available-For-Sale Debt Securities Accumulated Other Comprehensive (Loss) Income (In thousands) Balance as of January 1 $ (128,726 ) $ 4 $ (128,722 ) Other comprehensive income 993 2 995 Net current period other comprehensive income 993 2 995 Allocation of accumulated other comprehensive income related to the noncontrolling interests 1,008 — 1,008 Balance as of March 31 $ (126,725 ) $ 6 $ (126,719 ) Three Months Ended March 31, 2018 Foreign Currency Translation Adjustment Accumulated Other Comprehensive (Loss) Income (In thousands) Balance as of January 1 $ (103,568 ) $ (103,568 ) Other comprehensive income before reclassifications 28,218 28,218 Amounts reclassified to earnings 139 139 Net current period other comprehensive income 28,357 28,357 Allocation of accumulated other comprehensive income related to the noncontrolling interests 261 261 Balance as of March 31 $ (74,950 ) $ (74,950 ) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings (Loss) Per Share | The following table sets forth the computation of basic and diluted earnings per share attributable to IAC shareholders: Three Months Ended March 31, 2019 2018 Basic Diluted Basic Diluted (In thousands, except per share data) Numerator: Net earnings $ 112,985 $ 112,985 $ 87,839 $ 87,839 Net earnings attributable to noncontrolling interests (24,290 ) (24,290 ) (16,757 ) (16,757 ) Impact from public subsidiaries' dilutive securities (a) — (6,696 ) — (7,442 ) Net earnings attributable to IAC shareholders $ 88,695 $ 81,999 $ 71,082 $ 63,640 Denominator: Weighted average basic shares outstanding 83,905 83,905 82,983 82,983 Dilutive securities (a) (b) (c) (d) — 6,435 — 6,086 Denominator for earnings per share—weighted average shares (a) (b) (c) (d) 83,905 90,340 82,983 89,069 Earnings per share attributable to IAC shareholders: Earnings per share $ 1.06 $ 0.91 $ 0.86 $ 0.71 _____________________ (a) IAC has the option to settle certain MTCH and ANGI stock-based awards in its shares. For the three months ended March 31, 2019 and 2018 , it is more dilutive for IAC to settle certain ANGI equity awards and MTCH to settle certain MTCH equity awards. (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. For the three months ended March 31, 2019 and 2018, 3.4 million and 6.8 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 three months ended March 31, 2019 and 2018, 0.3 million and 0.2 million shares, respectively, underlying market-based awards and PSUs were excluded from the calculation of diluted earnings per share because the market or performance conditions had not been met. (d) It is the Company's intention to settle the Exchangeable Notes through a combination of cash, equal to the face amount of the notes, and shares; 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. For the three months ended March 31, 2019 , the average price of IAC common stock exceeded $152.18 and the dilutive impact of the Exchangeable Notes was 0.9 million shares. For the three months ended March 31, 2018 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following table presents revenue by reportable segment: Three Months Ended March 31, 2019 2018 (In thousands) Revenue: Match Group $ 464,625 $ 407,367 ANGI Homeservices 303,443 255,311 Vimeo 43,581 35,568 Dotdash 33,961 30,031 Applications 143,549 131,987 Emerging & Other 116,748 134,885 Inter-segment eliminations (64 ) (74 ) Total $ 1,105,843 $ 995,075 Three Months Ended March 31, 2019 2018 (In thousands) Operating Income (Loss): Match Group $ 118,828 $ 112,233 ANGI Homeservices (3,641 ) (10,756 ) Vimeo (17,784 ) (9,748 ) Dotdash 3,047 3,191 Applications 25,356 25,461 Emerging & Other (2,520 ) 6,493 Corporate (43,413 ) (36,924 ) Total $ 79,873 $ 89,950 Three Months Ended March 31, 2019 2018 (In thousands) Adjusted EBITDA (a) : Match Group $ 155,067 $ 137,741 ANGI Homeservices $ 37,179 $ 36,640 Vimeo $ (16,200 ) $ (7,784 ) Dotdash $ 7,150 $ 3,849 Applications $ 29,688 $ 26,752 Emerging & Other $ (2,095 ) $ 8,208 Corporate $ (20,220 ) $ (17,008 ) _____________________ (a) 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 because it excludes the impact of these expenses. |
Schedule of Disaggregation of Revenue | The following table presents the revenue of the Company's segments disaggregated by type of service: Three Months Ended March 31, 2019 2018 (In thousands) Match Group Direct revenue: North America $ 237,773 $ 211,357 International 216,189 181,380 Total Direct revenue 453,962 392,737 Indirect revenue (principally advertising revenue) 10,663 14,630 Total Match Group revenue $ 464,625 $ 407,367 ANGI Homeservices Marketplace: Consumer connection revenue $ 201,582 $ 149,060 Membership subscription revenue 16,517 15,627 Other revenue 1,826 921 Marketplace revenue 219,925 165,608 Advertising and other revenue 62,069 70,418 Total North America 281,994 236,026 Consumer connection revenue 17,123 14,367 Membership subscription revenue 3,742 4,671 Advertising and other revenue 584 247 Total Europe 21,449 19,285 Total ANGI Homeservices revenue $ 303,443 $ 255,311 Vimeo Platform revenue $ 41,302 $ 32,932 Hardware revenue 2,279 2,636 Total Vimeo revenue $ 43,581 $ 35,568 Dotdash Advertising revenue $ 28,919 $ 25,744 Affiliate commerce commission and other revenue 5,042 4,287 Three Months Ended March 31, 2019 2018 (In thousands) Total Dotdash revenue $ 33,961 $ 30,031 Applications Desktop Advertising revenue: Google advertising revenue $ 88,050 $ 108,577 Other 3,348 1,695 Advertising revenue 91,398 110,272 Subscription and other revenue 4,588 7,316 Total Desktop 95,986 117,588 Mosaic Group Subscription and other revenue 45,148 9,009 Advertising revenue 2,415 5,390 Total Mosaic Group 47,563 14,399 Total Applications revenue $ 143,549 $ 131,987 Emerging & Other Advertising revenue: Google advertising revenue $ 96,273 $ 92,751 Other 6,977 13,269 Advertising revenue 103,250 106,020 Other revenue 13,498 28,865 Total Emerging & Other revenue $ 116,748 $ 134,885 |
Schedule of Revenue and Long-lived Assets, Excluding Goodwill and Intangible Assets, by Geography | Revenue by geography is based on where the customer is located. Geographic information about revenue and long-lived assets is presented below: Three Months Ended March 31, 2019 2018 (In thousands) Revenue: United States $ 712,381 $ 657,580 All other countries 393,462 337,495 Total $ 1,105,843 $ 995,075 March 31, December 31, (In thousands) Long-lived assets (excluding goodwill and intangible assets): United States $ 298,534 $ 289,756 All other countries 27,354 29,044 Total $ 325,888 $ 318,800 |
Schedule of Reconciliation of Operating Income to Adjusted EBITDA | The following tables reconcile operating income (loss) for the Company's reportable segments and net earnings attributable to IAC shareholders to Adjusted EBITDA: Three Months Ended March 31, 2019 Operating Income (Loss) Stock-Based Compensation Expense Depreciation Amortization of Intangibles Acquisition-related Contingent Consideration Fair Value Adjustments Adjusted EBITDA (In thousands) Match Group $ 118,828 $ 27,997 $ 7,831 $ 411 $ — $ 155,067 ANGI Homeservices (3,641 ) $ 19,282 $ 6,999 $ 14,539 $ — $ 37,179 Vimeo (17,784 ) $ — $ 193 $ 1,391 $ — $ (16,200 ) Dotdash 3,047 $ — $ 226 $ 3,877 $ — $ 7,150 Applications 25,356 $ — $ 419 $ 2,384 $ 1,529 $ 29,688 Emerging & Other (2,520 ) $ — $ 275 $ 150 $ — $ (2,095 ) Corporate (43,413 ) $ 20,165 $ 3,028 $ — $ — $ (20,220 ) Operating income 79,873 Interest expense (31,143 ) Other income, net 651 Earnings before income taxes 49,381 Income tax benefit 63,604 Net earnings 112,985 Net earnings attributable to noncontrolling interests (24,290 ) Net earnings attributable to IAC shareholders $ 88,695 Three Months Ended March 31, 2018 Operating Income (Loss) Stock-Based Compensation Expense Depreciation Amortization of Intangibles Acquisition-related Contingent Consideration Fair Value Adjustments Adjusted EBITDA (In thousands) Match Group $ 112,233 $ 16,963 $ 8,147 $ 242 $ 156 $ 137,741 ANGI Homeservices (10,756 ) $ 24,906 $ 6,184 $ 16,306 $ — $ 36,640 Vimeo (9,748 ) $ — $ 335 $ 1,629 $ — $ (7,784 ) Dotdash 3,191 $ — $ 249 $ 409 $ — $ 3,849 Applications 25,461 $ — $ 755 $ 536 $ — $ 26,752 Emerging & Other 6,493 $ 131 $ 753 $ 831 $ — $ 8,208 Corporate (36,924 ) $ 17,082 $ 2,834 $ — $ — $ (17,008 ) Operating income 89,950 Interest expense (26,505 ) Other expense, net (4,619 ) Earnings before income taxes 58,826 Income tax benefit 29,013 Net earnings 87,839 Net earnings attributable to noncontrolling interests (16,757 ) Net earnings attributable to IAC shareholders $ 71,082 |
CONSOLIDATED FINANCIAL STATEM_2
CONSOLIDATED FINANCIAL STATEMENT DETAILS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows: March 31, 2019 December 31, 2018 March 31, 2018 December 31, 2017 (In thousands) Cash and cash equivalents $ 2,217,337 $ 2,131,632 $ 1,657,537 $ 1,630,809 Restricted cash included in other current assets 1,635 1,633 2,860 2,873 Restricted cash included in other assets 416 420 — — Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flows $ 2,219,388 $ 2,133,685 $ 1,660,397 $ 1,633,682 |
Schedule of Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows: March 31, 2019 December 31, 2018 March 31, 2018 December 31, 2017 (In thousands) Cash and cash equivalents $ 2,217,337 $ 2,131,632 $ 1,657,537 $ 1,630,809 Restricted cash included in other current assets 1,635 1,633 2,860 2,873 Restricted cash included in other assets 416 420 — — Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flows $ 2,219,388 $ 2,133,685 $ 1,660,397 $ 1,633,682 |
Schedule of Other (Expense) Income, Net | Other income (expense), net Three Months Ended March 31, 2019 2018 (In thousands) Other income (expense), net $651 $(4,619) |
GUARANTOR AND NON-GUARANTOR F_2
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet | Balance sheet at March 31, 2019: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Cash and cash equivalents $ 1,113,281 $ — $ 1,104,056 $ — $ 2,217,337 Marketable securities 39,954 — 447 — 40,401 Accounts receivable, net of allowance and reserves — 89,587 256,099 — 345,686 Other current assets 27,074 32,254 167,891 (745 ) 226,474 Intercompany receivables — 1,445,130 — (1,445,130 ) — Right of use assets 561 41,185 147,816 (17,004 ) 172,558 Property and equipment, net of accumulated depreciation and amortization 6,598 160,419 158,871 — 325,888 Goodwill — 412,009 2,333,779 — 2,745,788 Intangible assets, net of accumulated amortization — 40,037 568,072 — 608,109 Investment in subsidiaries 1,753,945 231,897 — (1,985,842 ) — Other non-current assets 285,842 94,691 233,400 (136,272 ) 477,661 Total assets $ 3,227,255 $ 2,547,209 $ 4,970,431 $ (3,584,993 ) $ 7,159,902 Current portion of long-term debt $ — $ — $ 13,750 $ — $ 13,750 Accounts payable, trade 790 33,600 49,145 — 83,535 Other current liabilities 22,158 83,816 709,213 (4,652 ) 810,535 Long-term debt, net 34,277 — 2,297,957 — 2,332,234 Income taxes payable — 1,660 34,516 — 36,176 Intercompany liabilities 389,873 — 1,055,257 (1,445,130 ) — Other long-term liabilities 296 55,644 333,851 (149,369 ) 240,422 Redeemable noncontrolling interests — — 71,914 — 71,914 Shareholders' equity (deficit) 2,779,861 2,372,489 (386,647 ) (1,985,842 ) 2,779,861 Noncontrolling interests — — 791,475 — 791,475 Total liabilities and shareholders' equity $ 3,227,255 $ 2,547,209 $ 4,970,431 $ (3,584,993 ) $ 7,159,902 Balance sheet at December 31, 2018: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Cash and cash equivalents $ 1,018,082 $ — $ 1,113,550 $ — $ 2,131,632 Marketable securities 98,299 — 25,366 — 123,665 Accounts receivable, net of allowance and reserves — 99,970 179,219 — 279,189 Other current assets 39,449 29,222 171,682 (12,100 ) 228,253 Intercompany receivables — 1,423,456 — (1,423,456 ) — Property and equipment, net of accumulated depreciation and amortization 6,526 163,281 148,993 — 318,800 Goodwill — 412,009 2,314,850 — 2,726,859 Intangible assets, net of accumulated amortization — 43,914 587,508 — 631,422 Investment in subsidiaries 1,897,699 214,519 — (2,112,218 ) — Other non-current assets 274,789 94,290 251,315 (185,629 ) 434,765 Total assets $ 3,334,844 $ 2,480,661 $ 4,792,483 $ (3,733,403 ) $ 6,874,585 Current portion of long-term debt $ — $ — $ 13,750 $ — $ 13,750 Accounts payable, trade 1,304 36,293 37,310 — 74,907 Other current liabilities 41,721 95,405 669,875 (12,100 ) 794,901 Long-term debt, net 34,262 — 2,211,286 — 2,245,548 Income taxes payable 15 1,707 35,862 — 37,584 Intercompany liabilities 414,156 — 1,009,300 (1,423,456 ) — Other long-term liabilities 261 18,181 257,594 (185,629 ) 90,407 Redeemable noncontrolling interests — — 65,687 — 65,687 Shareholders' equity (deficit) 2,843,125 2,329,075 (216,857 ) (2,112,218 ) 2,843,125 Noncontrolling interests — — 708,676 — 708,676 Total liabilities and shareholders' equity $ 3,334,844 $ 2,480,661 $ 4,792,483 $ (3,733,403 ) $ 6,874,585 |
Schedule of Condensed Income Statement | Statement of operations for the three months ended March 31, 2019: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Revenue $ — $ 198,930 $ 906,978 $ (65 ) $ 1,105,843 Operating costs and expenses: Cost of revenue (exclusive of depreciation shown separately below) 24 82,146 177,966 (65 ) 260,071 Selling and marketing expense 362 57,966 363,562 (30 ) 421,860 General and administrative expense 38,259 10,534 164,793 30 213,616 Product development expense 647 12,037 76,016 — 88,700 Depreciation 378 2,922 15,671 — 18,971 Amortization of intangibles — 3,877 18,875 — 22,752 Total operating costs and expenses 39,670 169,482 816,883 (65 ) 1,025,970 Operating (loss) income (39,670 ) 29,448 90,095 — 79,873 Equity in earnings of unconsolidated affiliates 115,440 1,068 — (116,508 ) — Interest expense (424 ) — (30,719 ) — (31,143 ) Other (expense) income, net (1,897 ) 13,851 420 (11,723 ) 651 Earnings before income taxes 73,449 44,367 59,796 (128,231 ) 49,381 Income tax benefit (provision) 15,246 (5,123 ) 53,481 — 63,604 Net earnings 88,695 39,244 113,277 (128,231 ) 112,985 Net earnings attributable to noncontrolling interests — — (24,290 ) — (24,290 ) Net earnings attributable to IAC shareholders $ 88,695 $ 39,244 $ 88,987 $ (128,231 ) $ 88,695 Comprehensive income attributable to IAC shareholders $ 89,690 $ 39,455 $ 90,100 $ (129,555 ) $ 89,690 Statement of operations for the three months ended March 31, 2018: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Revenue $ — $ 212,889 $ 782,260 $ (74 ) $ 995,075 Operating costs and expenses: Cost of revenue (exclusive of depreciation shown separately below) 76 56,224 145,712 (50 ) 201,962 Selling and marketing expense 213 90,138 312,526 (45 ) 402,832 General and administrative expense 31,409 15,381 137,373 21 184,184 Product development expense 652 14,269 62,016 — 76,937 Depreciation 266 3,340 15,651 — 19,257 Amortization of intangibles — 509 19,444 — 19,953 Total operating costs and expenses 32,616 179,861 692,722 (74 ) 905,125 Operating (loss) income (32,616 ) 33,028 89,538 — 89,950 Equity in earnings (losses) of unconsolidated affiliates 102,750 (327 ) — (102,423 ) — Interest expense (429 ) — (26,076 ) — (26,505 ) Other (expense) income, net (a) (16,847 ) 286,883 2,190 (276,845 ) (4,619 ) Earnings before income taxes 52,858 319,584 65,652 (379,268 ) 58,826 Income tax benefit (provision) 18,224 (10,966 ) 21,755 — 29,013 Net earnings 71,082 308,618 87,407 (379,268 ) 87,839 Net earnings attributable to noncontrolling interests — — (16,757 ) — (16,757 ) Net earnings attributable to IAC shareholders $ 71,082 $ 308,618 $ 70,650 $ (379,268 ) $ 71,082 Comprehensive income attributable to IAC shareholders $ 99,439 $ 308,961 $ 105,327 $ (414,288 ) $ 99,439 _____________________ (a) During the three months ended March 31, 2018 , foreign cash of $276.0 million |
Schedule of Condensed Cash Flow Statement | Statement of cash flows for the three months ended March 31, 2019: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Net cash (used in) provided by operating activities $ (40,242 ) $ 40,574 $ 114,332 $ (11,723 ) $ 102,941 Cash flows from investing activities: Acquisitions, net of cash acquired — (1,214 ) (20,341 ) — (21,555 ) Capital expenditures (531 ) (39 ) (25,285 ) — (25,855 ) Proceeds from maturities of marketable debt securities 98,500 — 25,000 — 123,500 Purchases of marketable debt securities (39,740 ) — — — (39,740 ) Net proceeds from the sale of businesses and investments — 39 20,433 — 20,472 Other, net — (2,034 ) 819 — (1,215 ) Net cash provided by (used in) investing activities 58,229 (3,248 ) 626 — 55,607 Cash flows from financing activities: Borrowings under Match Group Credit Facility — — 40,000 — 40,000 Proceeds from Match Group 2019 Senior Notes offering — — 350,000 — 350,000 Principal payments on Match Group Credit Facility — — (300,000 ) — (300,000 ) Principal payment on ANGI Homeservices Term Loan — — (3,438 ) — (3,438 ) Debt issuance costs — — (5,542 ) — (5,542 ) Purchase of Match Group treasury stock — — (24,186 ) — (24,186 ) Proceeds from the exercise of IAC stock options 9,298 — — — 9,298 Proceeds from the exercise of Match Group and ANGI Homeservices stock options — — 573 — 573 Withholding taxes paid on behalf of IAC employees on net settled stock-based awards (14,062 ) — — — (14,062 ) Withholding taxes paid on behalf of Match Group and ANGI Homeservices employees on net settled stock-based awards — — (123,148 ) — (123,148 ) Purchase of noncontrolling interests (3,182 ) — — — (3,182 ) Distribution to IAC pursuant to the ANGI tax sharing agreement 11,355 — (11,355 ) — — Intercompany 73,803 (37,326 ) (48,200 ) 11,723 — Other, net — — 27 — 27 Net cash provided by (used in) financing activities 77,212 (37,326 ) (125,269 ) 11,723 (73,660 ) Total cash provided (used) 95,199 — (10,311 ) — 84,888 Effect of exchange rate changes on cash, cash equivalents, and restricted cash — — 815 — 815 Net increase (decrease) in cash, cash equivalents, and restricted cash 95,199 — (9,496 ) — 85,703 Cash, cash equivalents, and restricted cash at beginning of period 1,018,082 — 1,115,603 — 2,133,685 Cash, cash equivalents, and restricted cash at end of period $ 1,113,281 $ — $ 1,106,107 $ — $ 2,219,388 Statement of cash flows for the three months ended March 31, 2018: IAC Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations IAC Consolidated (In thousands) Net cash provided by operating activities $ 1,562 $ 319,686 $ 107,605 $ (276,845 ) $ 152,008 Cash flows from investing activities: Acquisitions, net of cash acquired (4,134 ) — (17,161 ) — (21,295 ) Capital expenditures — (570 ) (14,231 ) — (14,801 ) Proceeds from maturities of marketable debt securities 5,000 — — — 5,000 Purchases of marketable debt securities (4,975 ) — — — (4,975 ) Net proceeds from the sale of investments — — 15 — 15 Purchases of investments (18,180 ) — — — (18,180 ) Other, net (5,000 ) 3,884 10,463 — 9,347 Net cash (used in) provided by investing activities (27,289 ) 3,314 (20,914 ) — (44,889 ) Cash flows from financing activities: Principal payment on ANGI Homeservices Term Loan — — (3,438 ) — (3,438 ) Debt issuance costs — — (193 ) — (193 ) Purchase of Match Group treasury stock — — (32,465 ) — (32,465 ) Proceeds from the exercise of IAC stock options 24,254 — — — 24,254 Proceeds from the exercise of Match Group and ANGI Homeservices stock options — 1,752 — 1,752 Withholding taxes paid on behalf of IAC employees on net settled stock-based awards (282 ) — — — (282 ) Withholding taxes paid on behalf of Match Group and ANGI Homeservices employees on net settled stock-based awards — — (75,028 ) — (75,028 ) Purchase of noncontrolling interests — — (234 ) — (234 ) Acquisition-related contingent consideration payments — — (185 ) — (185 ) Intercompany 308,822 (323,000 ) (262,667 ) 276,845 — Other, net 2,674 — (5 ) — 2,669 Net cash provided by (used in) financing activities 335,468 (323,000 ) (372,463 ) 276,845 (83,150 ) Total cash provided (used) 309,741 — (285,772 ) — 23,969 Effect of exchange rate changes on cash, cash equivalents, and restricted cash 26 — 2,720 — 2,746 Net increase (decrease) in cash, cash equivalents, and restricted cash 309,767 — (283,052 ) — 26,715 Cash, cash equivalents, and restricted cash at beginning of period 585,639 — 1,048,043 — 1,633,682 Cash, cash equivalents, and restricted cash at end of period $ 895,406 $ — $ 764,991 $ — $ 1,660,397 |
THE COMPANY AND SUMMARY OF SI_3
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Revenue and Other [Line Items] | ||||
Revenue | $ 1,105,843 | $ 995,075 | ||
Accounts receivable, net of allowance and reserves | 345,686 | $ 279,189 | ||
Right of use operating lease assets | 172,558 | 0 | ||
Lease liability | 216,967 | |||
Operating segments | Applications | ||||
Revenue and Other [Line Items] | ||||
Revenue | 143,549 | 131,987 | ||
Operating segments | Emerging & Other | ||||
Revenue and Other [Line Items] | ||||
Revenue | 116,748 | 134,885 | ||
Google Inc. | Revenue | Customer concentration risk | ||||
Revenue and Other [Line Items] | ||||
Revenue | $ 195,800 | $ 211,300 | ||
Concentration risk (as a percent) | 18.00% | 21.00% | ||
Google Inc. | Revenue | Customer concentration risk | Operating segments | Applications | ||||
Revenue and Other [Line Items] | ||||
Revenue | $ 88,100 | $ 108,600 | ||
Google Inc. | Revenue | Customer concentration risk | Operating segments | Emerging & Other | ||||
Revenue and Other [Line Items] | ||||
Revenue | 96,300 | $ 92,800 | ||
Google Inc. | Accounts Receivable | Customer concentration risk | ||||
Revenue and Other [Line Items] | ||||
Accounts receivable, net of allowance and reserves | $ 71,600 | $ 69,100 | ||
Accounting Standards Update 2016-02 | ||||
Revenue and Other [Line Items] | ||||
Right of use operating lease assets | $ 154,700 | |||
Lease liability | $ 154,700 | |||
Match Group | ||||
Revenue and Other [Line Items] | ||||
Economic interest (as a percent) | 80.40% | |||
Voting interest (as a percent) | 97.50% | |||
ANGI Homeservices | ||||
Revenue and Other [Line Items] | ||||
Economic interest (as a percent) | 83.30% | |||
Voting interest (as a percent) | 98.00% |
REVENUE RECOGNITION - Narrative
REVENUE RECOGNITION - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Current deferred revenue | $ 386,943 | $ 360,000 | $ 360,015 |
Noncurrent deferred revenue | 1,500 | $ 1,700 | |
Deferred revenue recognized during period | 234,800 | ||
Noncurrent capitalized sales commissions | $ 42,300 | $ 40,500 |
LEASES - Balance Sheet Informat
LEASES - Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Right of use assets | $ 172,558 | $ 0 |
Liabilities: | ||
Current lease liabilities | 31,215 | |
Long-term lease liabilities | 185,752 | |
Total lease liabilities | $ 216,967 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Fixed lease cost | $ 10,492 |
Variable lease cost | 2,319 |
Net lease cost | 12,811 |
Short-term lease cost | 1,300 |
Sublease income | 500 |
Cost of revenue | |
Lessee, Lease, Description [Line Items] | |
Fixed lease cost | 1,075 |
Variable lease cost | 157 |
Selling and marketing expense | |
Lessee, Lease, Description [Line Items] | |
Fixed lease cost | 1,909 |
Variable lease cost | 304 |
General and administrative expense | |
Lessee, Lease, Description [Line Items] | |
Fixed lease cost | 7,190 |
Variable lease cost | 1,804 |
Product development expense | |
Lessee, Lease, Description [Line Items] | |
Fixed lease cost | 318 |
Variable lease cost | $ 54 |
LEASES - Operating Lease Liabil
LEASES - Operating Lease Liabilities Maturities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 30,727 |
2020 | 41,238 |
2021 | 35,037 |
2022 | 28,211 |
2023 | 25,022 |
After 2023 | 230,683 |
Total | 390,918 |
Less: Interest | 173,951 |
Present value of lease liabilities | 216,967 |
Leases signed but not yet commenced | $ 54,500 |
LEASES - Weighted-Average Remai
LEASES - Weighted-Average Remaining Term and Discount Rate (Details) | Mar. 31, 2019 |
Leases [Abstract] | |
Remaining lease term | 15 years 9 months 18 days |
Discount rate (as a percent) | 5.99% |
LEASES - Other Information (Det
LEASES - Other Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Other Information: | |
Right of use assets obtained in exchange for lease liabilities | $ 28,270 |
Cash paid for amounts included in the measurement of lease liabilities | $ 13,175 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) | $ (63,604) | $ (29,013) | |
Unrecognized tax benefits including interest and penalties | 51,300 | $ 52,300 | |
Unrecognized tax benefit, if subsequently recognized would reduce income tax expense | 48,000 | $ 49,100 | |
Decrease in unrecognized tax benefit, reasonably possible within twelve months | 24,000 | ||
Decrease in unrecognized tax benefit, reasonably possible within twelve months which would reduce the income tax provision | $ 23,500 |
FINANCIAL INSTRUMENTS - Narrati
FINANCIAL INSTRUMENTS - Narrative (Details) | 3 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Feb. 15, 2019 | Dec. 31, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contractual maturity of current available-for-sale securities (equal to or less than) | 1 year | |||
Available-for-sale debt securities in an unrealized loss position for longer than twelve months | $ 0 | |||
Gross realized gains | 0 | $ 0 | ||
Gross realized losses | 0 | $ 0 | ||
Assets measured at fair value on a nonrecurring basis | ||||
Equity securities without readily determinable fair values | 234,600,000 | $ 235,100,000 | ||
Total upward adjustments to equity securities without readily determinable fair value | 129,000,000 | |||
Total downward adjustments to equity securities without readily determinable fair value | (2,600,000) | |||
Contingent Consideration Arrangements | ||||
Contingent consideration, maximum amount at balance sheet date | 45,000,000 | |||
Contingent consideration, fair value at balance sheet date with a maximum limit | 44,000,000 | |||
Payment for contingent consideration arrangement | 2,000,000 | |||
Contingent consideration, at fair value, noncurrent | 28,200,000 | 26,600,000 | ||
Contingent consideration, at fair value, current | $ 0 | $ 2,000,000 | ||
Match Group | Senior Notes | 5.625% MTCH Senior Notes | ||||
Contingent Consideration Arrangements | ||||
Stated interest rate (as a percent) | 5.625% | 5.625% | ||
Measurement Input, Discount Rate | Contingent Consideration Arrangements | ||||
Contingent Consideration Arrangements | ||||
Contingent consideration, discount rates (as a percent) | 0.25 | |||
Minimum | Measurement Input, Discount Rate | Contingent Consideration Arrangements | ||||
Contingent Consideration Arrangements | ||||
Contingent consideration, discount rates (as a percent) | 0.12 | |||
Maximum | Measurement Input, Discount Rate | Contingent Consideration Arrangements | ||||
Contingent Consideration Arrangements | ||||
Contingent consideration, discount rates (as a percent) | 0.25 |
FINANCIAL INSTRUMENTS - Fair Va
FINANCIAL INSTRUMENTS - Fair Value of Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Available-for-sale marketable debt securities | $ 39,954 | $ 123,246 |
Marketable equity security | 447 | 419 |
Total marketable securities | $ 40,401 | $ 123,665 |
FINANCIAL INSTRUMENTS - Current
FINANCIAL INSTRUMENTS - Current Available-for-Sale Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Marketable Securities | ||
Amortized Cost | $ 39,954 | $ 123,246 |
Gross Unrealized Gains | 0 | 3 |
Gross Unrealized Losses | 0 | (3) |
Fair Value | 39,954 | 123,246 |
Treasury discount notes | ||
Schedule of Available-for-sale Marketable Securities | ||
Amortized Cost | 24,983 | 112,291 |
Gross Unrealized Gains | 0 | 3 |
Gross Unrealized Losses | 0 | (3) |
Fair Value | 24,983 | 112,291 |
Commercial paper | ||
Schedule of Available-for-sale Marketable Securities | ||
Amortized Cost | 14,971 | 10,955 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 14,971 | $ 10,955 |
FINANCIAL INSTRUMENTS - Proceed
FINANCIAL INSTRUMENTS - Proceeds from Maturities and Sales of Current Available-for-Sale Marketable Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Proceeds from maturities of available-for-sale marketable debt securities | $ 123,500 | $ 5,000 |
FINANCIAL INSTRUMENTS - Realize
FINANCIAL INSTRUMENTS - Realized and Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Adjustments to Carrying Value of Non-Marketable Equity Securities [Abstract] | ||
Upward adjustments (gross unrealized gains) | $ 0 | $ 0 |
Downward adjustments including impairment (gross unrealized losses) | (150) | (192) |
Total | (150) | (192) |
Adjustments to Carrying Value of Non-Marketable Equity Securities [Abstract] | ||
Realized gains (losses), net, for equity securities sold | 78 | (103) |
Unrealized (losses) gains, net, on equity securities held | (122) | 145 |
Total (losses) gains recognized, net, in other income (expense), net | $ (44) | $ 42 |
FINANCIAL INSTRUMENTS - Assets
FINANCIAL INSTRUMENTS - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Marketable securities | $ 39,954 | $ 123,246 |
Marketable equity security | 447 | 419 |
Assets, Fair Value Disclosure | 1,774,663 | 1,818,666 |
Liabilities: | ||
Contingent consideration arrangement | (28,186) | (28,631) |
Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Assets, Fair Value Disclosure | 734,329 | 881,234 |
Liabilities: | ||
Contingent consideration arrangement | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Assets, Fair Value Disclosure | 1,040,334 | 937,432 |
Liabilities: | ||
Contingent consideration arrangement | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Assets, Fair Value Disclosure | 0 | 0 |
Liabilities: | ||
Contingent consideration arrangement | (28,186) | (28,631) |
Money market funds | ||
Assets: | ||
Cash equivalents | 733,882 | 880,815 |
Money market funds | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash equivalents | 733,882 | 880,815 |
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 |
Treasury discount notes | ||
Assets: | ||
Cash equivalents | 771,604 | 561,733 |
Marketable securities | 24,983 | 112,291 |
Treasury discount notes | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Treasury discount notes | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash equivalents | 771,604 | 561,733 |
Marketable securities | 24,983 | 112,291 |
Treasury discount notes | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Commercial paper | ||
Assets: | ||
Cash equivalents | 118,740 | 162,417 |
Marketable securities | 14,971 | 10,955 |
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 | 118,740 | 162,417 |
Marketable securities | 14,971 | 10,955 |
Commercial paper | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Time deposits | ||
Assets: | ||
Cash equivalents | 110,036 | 90,036 |
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 | 110,036 | 90,036 |
Time deposits | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Marketable equity security | ||
Assets: | ||
Marketable equity security | 447 | 419 |
Marketable equity security | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Marketable equity security | 447 | 419 |
Marketable equity security | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Marketable equity security | 0 | 0 |
Marketable equity security | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Marketable equity security | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS - Changes
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Contingent Consideration Arrangements | ||
Balance at beginning of period | $ (28,631) | $ (2,647) |
Fair value adjustments | (1,529) | (156) |
Included in other comprehensive loss | (14) | (110) |
Settlements | 1,988 | 948 |
Balance at end of period | $ (28,186) | $ (1,965) |
FINANCIAL INSTRUMENTS - Carryin
FINANCIAL INSTRUMENTS - Carrying Value and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
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 | (2,332,234) | (2,245,548) |
Unamortized original issue discount and debt issuance costs | 88,800 | 88,900 |
Carrying 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 | (2,332,234) | (2,245,548) |
Fair Value | ||
Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Current portion of long-term debt | (13,243) | (12,753) |
Long-term debt, net of current portion | $ (2,683,980) | $ (2,460,204) |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) | Dec. 31, 2018USD ($) | Nov. 05, 2018USD ($) | Oct. 02, 2017USD ($)$ / sharesshares | Mar. 31, 2019USD ($)$ / sharesshares | Mar. 31, 2018USD ($) | Nov. 05, 2023USD ($) | Nov. 05, 2022USD ($) | Dec. 31, 2018USD ($) | Nov. 05, 2021USD ($) | Feb. 15, 2019USD ($) | Dec. 04, 2017USD ($) | Jun. 01, 2016 |
Debt Instrument [Line Items] | ||||||||||||
Exchange price per share (USD per share) | $ / shares | $ 152.18 | |||||||||||
IAC | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding balance of debt instrument | $ 551,989,000 | $ 551,989,000 | $ 551,989,000 | |||||||||
Net unamortized discount (premium) | 54,025,000 | 50,661,000 | 54,025,000 | |||||||||
IAC Credit Facility | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | 250,000,000 | |||||||||||
Borrowings outstanding of credit facility | $ 0 | $ 0 | $ 0 | |||||||||
Annual commitment fee on undrawn funds, basis points (as a percent) | 0.20% | 0.20% | ||||||||||
IAC Credit Facility | Maximum | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum leverage ratio | 2.75 | 3.25 | ||||||||||
Match Group | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding balance of debt instrument | $ 1,535,000,000 | $ 1,625,000,000 | $ 1,535,000,000 | |||||||||
Net unamortized discount (premium) | 7,352,000 | $ 7,023,000 | $ 7,352,000 | |||||||||
Match Group | MTCH Term Loan due November 16, 2022 | Maximum | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Leverage ratio limiting ability to pay dividends, make distributions, or repurchase stock | 4 | |||||||||||
Match Group | MTCH Credit Facility due December 7, 2023 | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Annual commitment fee on undrawn funds, basis points (as a percent) | 0.25% | 0.25% | ||||||||||
Match Group | MTCH Credit Facility due December 7, 2023 | Maximum | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Leverage ratio limiting ability to pay dividends, make distributions, or repurchase stock | 2 | |||||||||||
ANGI Homeservices | ANGI Homeservices Credit Facility | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | $ 250,000,000 | |||||||||||
Borrowings outstanding of credit facility | 0 | $ 0 | $ 0 | |||||||||
Annual commitment fee on undrawn funds, basis points (as a percent) | 0.25% | 0.25% | ||||||||||
Debt instrument term | 5 years | |||||||||||
Senior Notes | IAC | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding balance of debt instrument | 463,500,000 | $ 517,500,000 | $ 466,800,000 | $ 463,500,000 | ||||||||
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 | 5 days | ||||||||||
Period of consecutive reported sale price of common stock (trading days) | 30 days | 5 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% | |||||||||||
Amount of debt discount and increase to additional paid in capital | $ 70,400,000 | |||||||||||
Outstanding stock (shares) | shares | 3,400,000 | |||||||||||
Outstanding warrants (shares) | shares | 3,400,000 | |||||||||||
Exercise price of warrants (USD per share) | $ / shares | $ 229.70 | |||||||||||
If-converted value in excess of principal | $ 197,000,000 | 105,000,000 | ||||||||||
Interest expense | 5,400,000 | $ 5,200,000 | ||||||||||
Amortization of debt discount (premium) | 3,400,000 | 3,200,000 | ||||||||||
Amortization of debt issuance costs | 900,000 | $ 900,000 | ||||||||||
Net unamortized discount (premium) | 54,000,000 | $ 50,700,000 | 54,000,000 | |||||||||
Senior Notes | 6.375% MTCH Senior Notes | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum leverage ratio | 5 | |||||||||||
Senior Notes | Exchangeable Notes | IAC | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate (as a percent) | 0.875% | 0.875% | ||||||||||
Outstanding balance of debt instrument | 517,500,000 | $ 517,500,000 | 517,500,000 | |||||||||
Senior Notes | Exchangeable Notes | Maximum | IAC | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate (as a percent) | 3.88% | |||||||||||
Senior Notes | Exchangeable Notes | Minimum | IAC | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate (as a percent) | 0.875% | |||||||||||
Senior Notes | 4.75% Senior Notes | IAC | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate (as a percent) | 4.75% | |||||||||||
Outstanding balance of debt instrument | 34,489,000 | $ 34,489,000 | 34,489,000 | |||||||||
Senior Notes | Match Group | 6.375% MTCH Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate (as a percent) | 6.375% | 6.375% | ||||||||||
Outstanding balance of debt instrument | 400,000,000 | $ 400,000,000 | 400,000,000 | |||||||||
Senior Notes | Match Group | 5.00% MTCH Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate (as a percent) | 5.00% | 5.00% | ||||||||||
Outstanding balance of debt instrument | 450,000,000 | $ 450,000,000 | 450,000,000 | $ 450,000,000 | ||||||||
Senior Notes | Match Group | 5.625% MTCH Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate (as a percent) | 5.625% | 5.625% | ||||||||||
Outstanding balance of debt instrument | 0 | $ 350,000,000 | 0 | $ 350,000,000 | ||||||||
Term Loan | Match Group | MTCH Term Loan due November 16, 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding balance of debt instrument | 425,000,000 | $ 425,000,000 | $ 425,000,000 | |||||||||
Basis spread on variable rate (as a percent) | 5.08% | 5.09% | ||||||||||
Term Loan | Match Group | MTCH 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 | ANGI Term Loan due November 5, 2023 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding balance of debt instrument | 261,250,000 | $ 257,813,000 | $ 261,250,000 | |||||||||
Basis spread on variable rate (as a percent) | 4.00% | 4.00% | ||||||||||
Term Loan | ANGI Homeservices | ANGI Term Loan due November 5, 2023 | Forecast | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Quarterly repayments of principal | $ 10,300,000 | $ 6,900,000 | $ 3,400,000 | |||||||||
Final principal payment | $ 161,600,000 | |||||||||||
Term Loan | ANGI Homeservices | ANGI Term Loan due November 5, 2023 | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate (as a percent) | 1.50% | 1.50% | ||||||||||
Term Loan | ANGI Homeservices | ANGI Term Loan due November 5, 2023 | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum leverage ratio | 4.5 | |||||||||||
Leverage ratio limiting ability to pay dividends, make distributions, or repurchase stock | 4.25 | |||||||||||
Term Loan | ANGI Homeservices | ANGI Term Loan due November 5, 2023 | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Minimum interest coverage ratio | 2 | |||||||||||
Credit Facility | Match Group | MTCH Credit Facility due December 7, 2023 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding balance of debt instrument | $ 260,000,000 | $ 0 | $ 260,000,000 | |||||||||
Maximum borrowing capacity | 500,000,000 | |||||||||||
Borrowings outstanding of credit facility | $ 0 | |||||||||||
Effective interest rate (as a percent) | 4.00% | 4.00% | ||||||||||
Credit Facility | Match Group | MTCH Credit Facility due December 7, 2023 | LIBOR | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate (as a percent) | 1.50% | |||||||||||
Credit Facility | Match Group | MTCH Credit Facility due December 7, 2023 | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum leverage ratio | 5 | |||||||||||
Credit Facility | Match Group | MTCH Credit Facility due December 7, 2023 | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Minimum interest coverage ratio | 2 |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long-Term Debt (Details) - USD ($) | Mar. 31, 2019 | Feb. 15, 2019 | Dec. 31, 2018 | Dec. 04, 2017 | Oct. 02, 2017 | Jun. 01, 2016 |
Debt Instrument [Line Items] | ||||||
Current portion of long-term debt | $ 13,750,000 | $ 13,750,000 | ||||
Long-term debt, net | 2,332,234,000 | 2,245,548,000 | ||||
Match Group | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 1,625,000,000 | 1,535,000,000 | ||||
Less: unamortized original issue discount | 7,023,000 | 7,352,000 | ||||
Less: unamortized debt issuance costs | 16,321,000 | 11,737,000 | ||||
Long-term debt, net | 1,601,656,000 | 1,515,911,000 | ||||
Match Group | Term Loan | MTCH Term Loan due November 16, 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 425,000,000 | 425,000,000 | ||||
Match Group | Credit Facility | MTCH Credit Facility due December 7, 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 0 | 260,000,000 | ||||
Match Group | Senior Notes | 6.375% MTCH 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% | ||||
Match Group | Senior Notes | 5.00% MTCH Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 450,000,000 | 450,000,000 | $ 450,000,000 | |||
Stated interest rate (as a percent) | 5.00% | 5.00% | ||||
Match Group | Senior Notes | 5.625% MTCH Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 350,000,000 | $ 350,000,000 | 0 | |||
Stated interest rate (as a percent) | 5.625% | 5.625% | ||||
ANGI Homeservices | ||||||
Debt Instrument [Line Items] | ||||||
Current portion of long-term debt | $ 13,750,000 | 13,750,000 | ||||
Less: unamortized debt issuance costs | 2,399,000 | 2,529,000 | ||||
Long-term debt, net | 241,664,000 | 244,971,000 | ||||
ANGI Homeservices | Term Loan | ANGI Term Loan due November 5, 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 257,813,000 | 261,250,000 | ||||
IAC | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 551,989,000 | 551,989,000 | ||||
Less: unamortized original issue discount | 50,661,000 | 54,025,000 | ||||
Less: unamortized debt issuance costs | 12,414,000 | 13,298,000 | ||||
Long-term debt, net | 488,914,000 | 484,666,000 | ||||
IAC | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 466,800,000 | 463,500,000 | $ 517,500,000 | |||
Less: unamortized original issue discount | 50,700,000 | 54,000,000 | ||||
IAC | Senior Notes | Exchangeable Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 517,500,000 | 517,500,000 | ||||
Stated interest rate (as a percent) | 0.875% | 0.875% | ||||
IAC | Senior Notes | 4.75% Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 34,489,000 | $ 34,489,000 | ||||
Stated interest rate (as a percent) | 4.75% |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Summary (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | $ 3,551,801,000 | $ 2,946,823,000 |
Total other comprehensive income | 1,310,000 | 35,393,000 |
Balance at end of period | 3,571,336,000 | 3,082,391,000 |
Tax provision (benefit) on accumulated other comprehensive loss | 0 | 0 |
Foreign Currency Translation Adjustment Attributable To Parent | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | (128,726,000) | (103,568,000) |
Balance at end of period | (126,725,000) | (74,950,000) |
Unrealized Gains On Available-For-Sale Debt Securities Attributable To Parent | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | 4,000 | |
Balance at end of period | 6,000 | |
Accumulated Other Comprehensive (Loss) Income Attributable To Parent | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | (128,722,000) | (103,568,000) |
Balance at end of period | (126,719,000) | (74,950,000) |
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Other comprehensive income before reclassifications | 28,218,000 | |
Amounts reclassified to earnings | 139,000 | |
Total other comprehensive income | 993,000 | 28,357,000 |
Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Total other comprehensive income | 2,000 | |
AOCI Including Portion Attributable to Noncontrolling Interest | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Other comprehensive income before reclassifications | 28,218,000 | |
Amounts reclassified to earnings | 139,000 | |
Total other comprehensive income | 995,000 | 28,357,000 |
Accumulated Foreign Currency Adjustment Attributable to Noncontrolling Interest | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Total other comprehensive income | 1,008,000 | 261,000 |
Accumulated Net Investment Gain (Loss) Attributable to Noncontrolling Interest | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Total other comprehensive income | 0 | |
AOCI Attributable to Noncontrolling Interest | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Total other comprehensive income | $ 1,008,000 | $ 261,000 |
EARNINGS PER SHARE - Summary (D
EARNINGS PER SHARE - Summary (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: Basic | ||
Net earnings | $ 112,985 | $ 87,839 |
Net earnings attributable to noncontrolling interests | (24,290) | (16,757) |
Net earnings attributable to IAC shareholders | 88,695 | 71,082 |
Numerator: Diluted | ||
Net earnings | 112,985 | 87,839 |
Net earnings attributable to noncontrolling interests | (24,290) | (16,757) |
Impact from public subsidiaries' dilutive securities | (6,696) | (7,442) |
Net earnings attributable to IAC shareholders | $ 81,999 | $ 63,640 |
Denominator: Basic | ||
Weighted average basic shares outstanding (shares) | 83,905 | 82,983 |
Denominator: Diluted | ||
Weighted average basic shares outstanding (shares) | 83,905 | 82,983 |
Dilutive securities (shares) | 6,435 | 6,086 |
Denominator for earnings per share - weighted average shares (shares) | 90,340 | 89,069 |
Earnings per share attributable to IAC shareholders: Basic | ||
Basic earnings per share (USD per share) | $ 1.06 | $ 0.86 |
Earnings per share attributable to IAC shareholders: Diluted | ||
Diluted earnings per share (USD per share) | 0.91 | $ 0.71 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Exchange price per share (USD per share) | $ 152.18 | |
Stock options, warrants, and subsidiary denominated equity exchange of Exchangeable Notes and vesting of 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 | 6,800 |
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) | 300 | 200 |
Exchangeable Notes | ||
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) | 900 |
SEGMENT INFORMATION - Financial
SEGMENT INFORMATION - Financial Data by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 1,105,843 | $ 995,075 |
Operating income (loss) | 79,873 | 89,950 |
Operating segments | Match Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 464,625 | 407,367 |
Operating income (loss) | 118,828 | 112,233 |
Adjusted EBITDA | 155,067 | 137,741 |
Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 303,443 | 255,311 |
Operating income (loss) | (3,641) | (10,756) |
Adjusted EBITDA | 37,179 | 36,640 |
Operating segments | Vimeo | ||
Segment Reporting Information [Line Items] | ||
Revenue | 43,581 | 35,568 |
Operating income (loss) | (17,784) | (9,748) |
Adjusted EBITDA | (16,200) | (7,784) |
Operating segments | Dotdash | ||
Segment Reporting Information [Line Items] | ||
Revenue | 33,961 | 30,031 |
Operating income (loss) | 3,047 | 3,191 |
Adjusted EBITDA | 7,150 | 3,849 |
Operating segments | Applications | ||
Segment Reporting Information [Line Items] | ||
Revenue | 143,549 | 131,987 |
Operating income (loss) | 25,356 | 25,461 |
Adjusted EBITDA | 29,688 | 26,752 |
Operating segments | Emerging & Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | 116,748 | 134,885 |
Operating income (loss) | (2,520) | 6,493 |
Adjusted EBITDA | (2,095) | 8,208 |
Inter-segment eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenue | (64) | (74) |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | (43,413) | (36,924) |
Adjusted EBITDA | $ (20,220) | $ (17,008) |
SEGMENT INFORMATION - Revenue D
SEGMENT INFORMATION - Revenue Disaggregated by Service (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 1,105,843 | $ 995,075 |
Operating segments | Match Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 464,625 | 407,367 |
Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 303,443 | 255,311 |
Operating segments | Vimeo | ||
Segment Reporting Information [Line Items] | ||
Revenue | 43,581 | 35,568 |
Operating segments | Dotdash | ||
Segment Reporting Information [Line Items] | ||
Revenue | 33,961 | 30,031 |
Operating segments | Applications | ||
Segment Reporting Information [Line Items] | ||
Revenue | 143,549 | 131,987 |
Operating segments | Emerging & Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | 116,748 | 134,885 |
North America | Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 281,994 | 236,026 |
International | ||
Segment Reporting Information [Line Items] | ||
Revenue | 393,462 | 337,495 |
Europe | Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 21,449 | 19,285 |
Direct revenue | Operating segments | Match Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 453,962 | 392,737 |
Direct revenue | North America | Operating segments | Match Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 237,773 | 211,357 |
Direct revenue | International | Operating segments | Match Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 216,189 | 181,380 |
Indirect revenue | Operating segments | Match Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 10,663 | 14,630 |
Marketplace revenue | North America | Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 219,925 | 165,608 |
Consumer connection revenue | North America | Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 201,582 | 149,060 |
Membership subscription revenue | North America | Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 16,517 | 15,627 |
Other revenue | North America | Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,826 | 921 |
Consumer connection revenue | Europe | Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 17,123 | 14,367 |
Membership subscription revenue | Europe | Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 3,742 | 4,671 |
Advertising and other revenue | North America | Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 62,069 | 70,418 |
Advertising and other revenue | Europe | Operating segments | ANGI Homeservices | ||
Segment Reporting Information [Line Items] | ||
Revenue | 584 | 247 |
Platform revenue | Operating segments | Vimeo | ||
Segment Reporting Information [Line Items] | ||
Revenue | 41,302 | 32,932 |
Hardware revenue | Operating segments | Vimeo | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,279 | 2,636 |
Advertising revenue | Operating segments | Dotdash | ||
Segment Reporting Information [Line Items] | ||
Revenue | 28,919 | 25,744 |
Advertising revenue | Operating segments | Emerging & Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | 103,250 | 106,020 |
Google advertising revenue | Operating segments | Emerging & Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | 96,273 | 92,751 |
Other | Operating segments | Emerging & Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | 6,977 | 13,269 |
Affiliate commerce commission and other revenue | Operating segments | Dotdash | ||
Segment Reporting Information [Line Items] | ||
Revenue | 5,042 | 4,287 |
Other revenue | Operating segments | Emerging & Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | 13,498 | 28,865 |
Desktop | Operating segments | Applications | ||
Segment Reporting Information [Line Items] | ||
Revenue | 95,986 | 117,588 |
Advertising revenue | Operating segments | Applications | ||
Segment Reporting Information [Line Items] | ||
Revenue | 91,398 | 110,272 |
Google advertising revenue | Operating segments | Applications | ||
Segment Reporting Information [Line Items] | ||
Revenue | 88,050 | 108,577 |
Other | Operating segments | Applications | ||
Segment Reporting Information [Line Items] | ||
Revenue | 3,348 | 1,695 |
Subscription and other revenue | Operating segments | Applications | ||
Segment Reporting Information [Line Items] | ||
Revenue | 4,588 | 7,316 |
Mosaic Group | Operating segments | Applications | ||
Segment Reporting Information [Line Items] | ||
Revenue | 47,563 | 14,399 |
Mosaic Group | Advertising revenue | Operating segments | Applications | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,415 | 5,390 |
Mosaic Group | Subscription and other revenue | Operating segments | Applications | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 45,148 | $ 9,009 |
SEGMENT INFORMATION - Geographi
SEGMENT INFORMATION - Geographic Information about Revenue and Long-Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Revenue and long-lived assets by geography | |||
Revenue | $ 1,105,843 | $ 995,075 | |
Property and equipment, net of accumulated depreciation and amortization | 325,888 | $ 318,800 | |
United States | |||
Revenue and long-lived assets by geography | |||
Revenue | 712,381 | 657,580 | |
Property and equipment, net of accumulated depreciation and amortization | 298,534 | 289,756 | |
All other countries | |||
Revenue and long-lived assets by geography | |||
Revenue | 393,462 | $ 337,495 | |
Property and equipment, net of accumulated depreciation and amortization | $ 27,354 | $ 29,044 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Operating Income (Loss) to Adjusted EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Operating income | $ 79,873 | $ 89,950 |
Stock-based compensation expense | 67,444 | 59,082 |
Depreciation | 18,971 | 19,257 |
Amortization of intangibles | 22,752 | 19,953 |
Interest expense | (31,143) | (26,505) |
Other income (expense), net | 651 | (4,619) |
Earnings before income taxes | 49,381 | 58,826 |
Income tax benefit (provision) | 63,604 | 29,013 |
Net earnings | 112,985 | 87,839 |
Net earnings attributable to noncontrolling interests | (24,290) | (16,757) |
Net earnings attributable to IAC shareholders | 88,695 | 71,082 |
Operating segments | Match Group | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Operating income | 118,828 | 112,233 |
Stock-based compensation expense | 27,997 | 16,963 |
Depreciation | 7,831 | 8,147 |
Amortization of intangibles | 411 | 242 |
Acquisition-related Contingent Consideration Fair Value Adjustments | 0 | 156 |
Adjusted EBITDA | 155,067 | 137,741 |
Operating segments | ANGI Homeservices | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Operating income | (3,641) | (10,756) |
Stock-based compensation expense | 19,282 | 24,906 |
Depreciation | 6,999 | 6,184 |
Amortization of intangibles | 14,539 | 16,306 |
Acquisition-related Contingent Consideration Fair Value Adjustments | 0 | 0 |
Adjusted EBITDA | 37,179 | 36,640 |
Operating segments | Vimeo | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Operating income | (17,784) | (9,748) |
Stock-based compensation expense | 0 | 0 |
Depreciation | 193 | 335 |
Amortization of intangibles | 1,391 | 1,629 |
Acquisition-related Contingent Consideration Fair Value Adjustments | 0 | 0 |
Adjusted EBITDA | (16,200) | (7,784) |
Operating segments | Dotdash | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Operating income | 3,047 | 3,191 |
Stock-based compensation expense | 0 | 0 |
Depreciation | 226 | 249 |
Amortization of intangibles | 3,877 | 409 |
Acquisition-related Contingent Consideration Fair Value Adjustments | 0 | 0 |
Adjusted EBITDA | 7,150 | 3,849 |
Operating segments | Applications | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Operating income | 25,356 | 25,461 |
Stock-based compensation expense | 0 | 0 |
Depreciation | 419 | 755 |
Amortization of intangibles | 2,384 | 536 |
Acquisition-related Contingent Consideration Fair Value Adjustments | 1,529 | 0 |
Adjusted EBITDA | 29,688 | 26,752 |
Operating segments | Emerging & Other | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Operating income | (2,520) | 6,493 |
Stock-based compensation expense | 0 | 131 |
Depreciation | 275 | 753 |
Amortization of intangibles | 150 | 831 |
Acquisition-related Contingent Consideration Fair Value Adjustments | 0 | 0 |
Adjusted EBITDA | (2,095) | 8,208 |
Corporate | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Operating income | (43,413) | (36,924) |
Stock-based compensation expense | 20,165 | 17,082 |
Depreciation | 3,028 | 2,834 |
Amortization of intangibles | 0 | 0 |
Acquisition-related Contingent Consideration Fair Value Adjustments | 0 | 0 |
Adjusted EBITDA | $ (20,220) | $ (17,008) |
CONSOLIDATED FINANCIAL STATEM_3
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Interest income | $ 12.4 | $ 5.2 |
Gain (loss) on sale of business | (8.1) | |
Net foreign currency exchange gains (losses) | $ (1.9) | $ (7.9) |
CONSOLIDATED FINANCIAL STATEM_4
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 2,217,337 | $ 2,131,632 | $ 1,657,537 | $ 1,630,809 |
Restricted cash included in other current assets | 1,635 | 1,633 | 2,860 | 2,873 |
Restricted cash included in other assets | 416 | 420 | 0 | 0 |
Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flows | $ 2,219,388 | $ 2,133,685 | $ 1,660,397 | $ 1,633,682 |
CONSOLIDATED FINANCIAL STATEM_5
CONSOLIDATED FINANCIAL STATEMENT DETAILS - Other (Expense) Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other income (expense), net: | ||
Other income (expense), net | $ 651 | $ (4,619) |
CONTINGENCIES - Narrative (Deta
CONTINGENCIES - Narrative (Details) | Aug. 14, 2018USD ($)plaintiff | Mar. 31, 2019USD ($)lawsuit |
Loss Contingencies [Line Items] | ||
Loss contingency reserve | $ 0 | |
Number of lawsuits with possible material impact (one or more) | lawsuit | 1 | |
Tinder Optionholder Litigation | ||
Loss Contingencies [Line Items] | ||
Number of plaintiffs | plaintiff | 10 | |
Tinder Optionholder Litigation | Pending Litigation | ||
Loss Contingencies [Line Items] | ||
Damages sought | $ 2,000,000,000 |
GUARANTOR AND NON-GUARANTOR F_3
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Narrative (Details) | Mar. 31, 2019 |
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 F_4
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||||
Cash and cash equivalents | $ 2,217,337 | $ 2,131,632 | $ 1,657,537 | $ 1,630,809 |
Marketable securities | 40,401 | 123,665 | ||
Accounts receivable, net of allowance and reserves | 345,686 | 279,189 | ||
Other current assets | 226,474 | 228,253 | ||
Intercompany receivables | 0 | 0 | ||
Right of use assets | 172,558 | 0 | ||
Property and equipment, net of accumulated depreciation and amortization | 325,888 | 318,800 | ||
Goodwill | 2,745,788 | 2,726,859 | ||
Intangible assets, net of accumulated amortization | 608,109 | 631,422 | ||
Investment in subsidiaries | 0 | 0 | ||
Other non-current assets | 477,661 | 434,765 | ||
TOTAL ASSETS | 7,159,902 | 6,874,585 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current portion of long-term debt | 13,750 | 13,750 | ||
Accounts payable, trade | 83,535 | 74,907 | ||
Other current liabilities | 810,535 | 794,901 | ||
Long-term debt, net | 2,332,234 | 2,245,548 | ||
Income taxes payable | 36,176 | 37,584 | ||
Intercompany liabilities | 0 | 0 | ||
Other long-term liabilities | 240,422 | 90,407 | ||
Redeemable noncontrolling interests | 71,914 | 65,687 | ||
Shareholders' equity (deficit) | 2,779,861 | 2,843,125 | ||
Noncontrolling interests | 791,475 | 708,676 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 7,159,902 | 6,874,585 | ||
IAC | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Long-term debt, net | 488,914 | 484,666 | ||
Reportable Legal Entities | IAC | ||||
ASSETS | ||||
Cash and cash equivalents | 1,113,281 | 1,018,082 | ||
Marketable securities | 39,954 | 98,299 | ||
Accounts receivable, net of allowance and reserves | 0 | 0 | ||
Other current assets | 27,074 | 39,449 | ||
Intercompany receivables | 0 | 0 | ||
Right of use assets | 561 | |||
Property and equipment, net of accumulated depreciation and amortization | 6,598 | 6,526 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net of accumulated amortization | 0 | 0 | ||
Investment in subsidiaries | 1,753,945 | 1,897,699 | ||
Other non-current assets | 285,842 | 274,789 | ||
TOTAL ASSETS | 3,227,255 | 3,334,844 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable, trade | 790 | 1,304 | ||
Other current liabilities | 22,158 | 41,721 | ||
Long-term debt, net | 34,277 | 34,262 | ||
Income taxes payable | 0 | 15 | ||
Intercompany liabilities | 389,873 | 414,156 | ||
Other long-term liabilities | 296 | 261 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Shareholders' equity (deficit) | 2,779,861 | 2,843,125 | ||
Noncontrolling interests | 0 | 0 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 3,227,255 | 3,334,844 | ||
Reportable Legal Entities | Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | ||
Marketable securities | 0 | 0 | ||
Accounts receivable, net of allowance and reserves | 89,587 | 99,970 | ||
Other current assets | 32,254 | 29,222 | ||
Intercompany receivables | 1,445,130 | 1,423,456 | ||
Right of use assets | 41,185 | |||
Property and equipment, net of accumulated depreciation and amortization | 160,419 | 163,281 | ||
Goodwill | 412,009 | 412,009 | ||
Intangible assets, net of accumulated amortization | 40,037 | 43,914 | ||
Investment in subsidiaries | 231,897 | 214,519 | ||
Other non-current assets | 94,691 | 94,290 | ||
TOTAL ASSETS | 2,547,209 | 2,480,661 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable, trade | 33,600 | 36,293 | ||
Other current liabilities | 83,816 | 95,405 | ||
Long-term debt, net | 0 | 0 | ||
Income taxes payable | 1,660 | 1,707 | ||
Intercompany liabilities | 0 | 0 | ||
Other long-term liabilities | 55,644 | 18,181 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Shareholders' equity (deficit) | 2,372,489 | 2,329,075 | ||
Noncontrolling interests | 0 | 0 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 2,547,209 | 2,480,661 | ||
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 1,104,056 | 1,113,550 | ||
Marketable securities | 447 | 25,366 | ||
Accounts receivable, net of allowance and reserves | 256,099 | 179,219 | ||
Other current assets | 167,891 | 171,682 | ||
Intercompany receivables | 0 | 0 | ||
Right of use assets | 147,816 | |||
Property and equipment, net of accumulated depreciation and amortization | 158,871 | 148,993 | ||
Goodwill | 2,333,779 | 2,314,850 | ||
Intangible assets, net of accumulated amortization | 568,072 | 587,508 | ||
Investment in subsidiaries | 0 | 0 | ||
Other non-current assets | 233,400 | 251,315 | ||
TOTAL ASSETS | 4,970,431 | 4,792,483 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current portion of long-term debt | 13,750 | 13,750 | ||
Accounts payable, trade | 49,145 | 37,310 | ||
Other current liabilities | 709,213 | 669,875 | ||
Long-term debt, net | 2,297,957 | 2,211,286 | ||
Income taxes payable | 34,516 | 35,862 | ||
Intercompany liabilities | 1,055,257 | 1,009,300 | ||
Other long-term liabilities | 333,851 | 257,594 | ||
Redeemable noncontrolling interests | 71,914 | 65,687 | ||
Shareholders' equity (deficit) | (386,647) | (216,857) | ||
Noncontrolling interests | 791,475 | 708,676 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,970,431 | 4,792,483 | ||
Eliminations | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | ||
Marketable securities | 0 | 0 | ||
Accounts receivable, net of allowance and reserves | 0 | 0 | ||
Other current assets | (745) | (12,100) | ||
Intercompany receivables | (1,445,130) | (1,423,456) | ||
Right of use assets | (17,004) | |||
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 | (1,985,842) | (2,112,218) | ||
Other non-current assets | (136,272) | (185,629) | ||
TOTAL ASSETS | (3,584,993) | (3,733,403) | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable, trade | 0 | 0 | ||
Other current liabilities | (4,652) | (12,100) | ||
Long-term debt, net | 0 | 0 | ||
Income taxes payable | 0 | 0 | ||
Intercompany liabilities | (1,445,130) | (1,423,456) | ||
Other long-term liabilities | (149,369) | (185,629) | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Shareholders' equity (deficit) | (1,985,842) | (2,112,218) | ||
Noncontrolling interests | 0 | 0 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ (3,584,993) | $ (3,733,403) |
GUARANTOR AND NON-GUARANTOR F_5
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||
Revenue | $ 1,105,843 | $ 995,075 |
Operating costs and expenses: | ||
Cost of revenue (exclusive of depreciation shown separately below) | 260,071 | 201,962 |
Selling and marketing expense | 421,860 | 402,832 |
General and administrative expense | 213,616 | 184,184 |
Product development expense | 88,700 | 76,937 |
Depreciation | 18,971 | 19,257 |
Amortization of intangibles | 22,752 | 19,953 |
Total operating costs and expenses | 1,025,970 | 905,125 |
Operating income | 79,873 | 89,950 |
Equity in earnings of unconsolidated affiliates | 0 | 0 |
Interest expense | (31,143) | (26,505) |
Other (expense) income, net | 651 | (4,619) |
Earnings before income taxes | 49,381 | 58,826 |
Income tax benefit (provision) | 63,604 | 29,013 |
Net earnings | 112,985 | 87,839 |
Net earnings attributable to noncontrolling interests | (24,290) | (16,757) |
Net earnings attributable to IAC shareholders | 88,695 | 71,082 |
Comprehensive income (loss) attributable to IAC shareholders | 89,690 | 99,439 |
Foreign earnings repatriated | 276,000 | |
Reportable Legal Entities | IAC | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenue | 0 | 0 |
Operating costs and expenses: | ||
Cost of revenue (exclusive of depreciation shown separately below) | 24 | 76 |
Selling and marketing expense | 362 | 213 |
General and administrative expense | 38,259 | 31,409 |
Product development expense | 647 | 652 |
Depreciation | 378 | 266 |
Amortization of intangibles | 0 | 0 |
Total operating costs and expenses | 39,670 | 32,616 |
Operating income | (39,670) | (32,616) |
Equity in earnings of unconsolidated affiliates | 115,440 | 102,750 |
Interest expense | (424) | (429) |
Other (expense) income, net | (1,897) | (16,847) |
Earnings before income taxes | 73,449 | 52,858 |
Income tax benefit (provision) | 15,246 | 18,224 |
Net earnings | 88,695 | 71,082 |
Net earnings attributable to noncontrolling interests | 0 | 0 |
Net earnings attributable to IAC shareholders | 88,695 | 71,082 |
Comprehensive income (loss) attributable to IAC shareholders | 89,690 | 99,439 |
Reportable Legal Entities | Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenue | 198,930 | 212,889 |
Operating costs and expenses: | ||
Cost of revenue (exclusive of depreciation shown separately below) | 82,146 | 56,224 |
Selling and marketing expense | 57,966 | 90,138 |
General and administrative expense | 10,534 | 15,381 |
Product development expense | 12,037 | 14,269 |
Depreciation | 2,922 | 3,340 |
Amortization of intangibles | 3,877 | 509 |
Total operating costs and expenses | 169,482 | 179,861 |
Operating income | 29,448 | 33,028 |
Equity in earnings of unconsolidated affiliates | 1,068 | (327) |
Interest expense | 0 | 0 |
Other (expense) income, net | 13,851 | 286,883 |
Earnings before income taxes | 44,367 | 319,584 |
Income tax benefit (provision) | (5,123) | (10,966) |
Net earnings | 39,244 | 308,618 |
Net earnings attributable to noncontrolling interests | 0 | 0 |
Net earnings attributable to IAC shareholders | 39,244 | 308,618 |
Comprehensive income (loss) attributable to IAC shareholders | 39,455 | 308,961 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenue | 906,978 | 782,260 |
Operating costs and expenses: | ||
Cost of revenue (exclusive of depreciation shown separately below) | 177,966 | 145,712 |
Selling and marketing expense | 363,562 | 312,526 |
General and administrative expense | 164,793 | 137,373 |
Product development expense | 76,016 | 62,016 |
Depreciation | 15,671 | 15,651 |
Amortization of intangibles | 18,875 | 19,444 |
Total operating costs and expenses | 816,883 | 692,722 |
Operating income | 90,095 | 89,538 |
Equity in earnings of unconsolidated affiliates | 0 | 0 |
Interest expense | (30,719) | (26,076) |
Other (expense) income, net | 420 | 2,190 |
Earnings before income taxes | 59,796 | 65,652 |
Income tax benefit (provision) | 53,481 | 21,755 |
Net earnings | 113,277 | 87,407 |
Net earnings attributable to noncontrolling interests | (24,290) | (16,757) |
Net earnings attributable to IAC shareholders | 88,987 | 70,650 |
Comprehensive income (loss) attributable to IAC shareholders | 90,100 | 105,327 |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenue | (65) | (74) |
Operating costs and expenses: | ||
Cost of revenue (exclusive of depreciation shown separately below) | (65) | (50) |
Selling and marketing expense | (30) | (45) |
General and administrative expense | 30 | 21 |
Product development expense | 0 | 0 |
Depreciation | 0 | 0 |
Amortization of intangibles | 0 | 0 |
Total operating costs and expenses | (65) | (74) |
Operating income | 0 | 0 |
Equity in earnings of unconsolidated affiliates | (116,508) | (102,423) |
Interest expense | 0 | 0 |
Other (expense) income, net | (11,723) | (276,845) |
Earnings before income taxes | (128,231) | (379,268) |
Income tax benefit (provision) | 0 | 0 |
Net earnings | (128,231) | (379,268) |
Net earnings attributable to noncontrolling interests | 0 | 0 |
Net earnings attributable to IAC shareholders | (128,231) | (379,268) |
Comprehensive income (loss) attributable to IAC shareholders | $ (129,555) | $ (414,288) |
GUARANTOR AND NON-GUARANTOR F_6
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | $ 102,941 | $ 152,008 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | (21,555) | (21,295) |
Capital expenditures | (25,855) | (14,801) |
Proceeds from maturities of marketable debt securities | 123,500 | 5,000 |
Purchases of marketable debt securities | (39,740) | (4,975) |
Net proceeds from the sale of businesses and investments | 20,472 | 15 |
Purchases of investments | 0 | (18,180) |
Other, net | (1,215) | 9,347 |
Net cash provided by (used in) investing activities | 55,607 | (44,889) |
Cash flows from financing activities: | ||
Debt issuance costs | (5,542) | (193) |
Purchase of noncontrolling interests | (3,182) | (234) |
Distribution to IAC pursuant to the ANGI tax sharing agreement | 0 | |
Acquisition-related contingent consideration payments | 0 | (185) |
Intercompany | 0 | 0 |
Other, net | 27 | 2,669 |
Net cash used in financing activities | (73,660) | (83,150) |
Total cash provided | 84,888 | 23,969 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 815 | 2,746 |
Net increase in cash, cash equivalents, and restricted cash | 85,703 | 26,715 |
Cash, cash equivalents, and restricted cash at beginning of period | 2,133,685 | 1,633,682 |
Cash, cash equivalents, and restricted cash at end of period | 2,219,388 | 1,660,397 |
Reportable Legal Entities | IAC | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | (40,242) | 1,562 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | 0 | (4,134) |
Capital expenditures | (531) | 0 |
Proceeds from maturities of marketable debt securities | 98,500 | 5,000 |
Purchases of marketable debt securities | (39,740) | (4,975) |
Net proceeds from the sale of businesses and investments | 0 | 0 |
Purchases of investments | (18,180) | |
Other, net | 0 | (5,000) |
Net cash provided by (used in) investing activities | 58,229 | (27,289) |
Cash flows from financing activities: | ||
Purchase of noncontrolling interests | (3,182) | 0 |
Distribution to IAC pursuant to the ANGI tax sharing agreement | 11,355 | |
Acquisition-related contingent consideration payments | 0 | |
Intercompany | 73,803 | 308,822 |
Other, net | 2,674 | |
Net cash used in financing activities | 77,212 | 335,468 |
Total cash provided | 95,199 | 309,741 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 26 | |
Net increase in cash, cash equivalents, and restricted cash | 95,199 | 309,767 |
Cash, cash equivalents, and restricted cash at beginning of period | 1,018,082 | 585,639 |
Cash, cash equivalents, and restricted cash at end of period | 1,113,281 | 895,406 |
Reportable Legal Entities | Guarantor Subsidiaries | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 40,574 | 319,686 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | (1,214) | 0 |
Capital expenditures | (39) | (570) |
Proceeds from maturities of marketable debt securities | 0 | 0 |
Purchases of marketable debt securities | 0 | 0 |
Net proceeds from the sale of businesses and investments | 39 | 0 |
Purchases of investments | 0 | |
Other, net | (2,034) | 3,884 |
Net cash provided by (used in) investing activities | (3,248) | 3,314 |
Cash flows from financing activities: | ||
Purchase of noncontrolling interests | 0 | 0 |
Distribution to IAC pursuant to the ANGI tax sharing agreement | 0 | |
Acquisition-related contingent consideration payments | 0 | |
Intercompany | (37,326) | (323,000) |
Net cash used in financing activities | (37,326) | (323,000) |
Net increase in cash, cash equivalents, and restricted cash | 0 | 0 |
Cash, cash equivalents, and restricted cash at end of period | 0 | 0 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 114,332 | 107,605 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | (20,341) | (17,161) |
Capital expenditures | (25,285) | (14,231) |
Proceeds from maturities of marketable debt securities | 25,000 | 0 |
Purchases of marketable debt securities | 0 | 0 |
Net proceeds from the sale of businesses and investments | 20,433 | 15 |
Purchases of investments | 0 | |
Other, net | 819 | 10,463 |
Net cash provided by (used in) investing activities | 626 | (20,914) |
Cash flows from financing activities: | ||
Debt issuance costs | (5,542) | |
Purchase of noncontrolling interests | 0 | (234) |
Distribution to IAC pursuant to the ANGI tax sharing agreement | (11,355) | |
Acquisition-related contingent consideration payments | (185) | |
Intercompany | (48,200) | (262,667) |
Other, net | 27 | (5) |
Net cash used in financing activities | (125,269) | (372,463) |
Total cash provided | (10,311) | (285,772) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 815 | 2,720 |
Net increase in cash, cash equivalents, and restricted cash | (9,496) | (283,052) |
Cash, cash equivalents, and restricted cash at beginning of period | 1,115,603 | 1,048,043 |
Cash, cash equivalents, and restricted cash at end of period | 1,106,107 | 764,991 |
Eliminations | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | (11,723) | (276,845) |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | 0 | 0 |
Capital expenditures | 0 | 0 |
Proceeds from maturities of marketable debt securities | 0 | 0 |
Purchases of marketable debt securities | 0 | 0 |
Net proceeds from the sale of businesses and investments | 0 | 0 |
Purchases of investments | 0 | |
Other, net | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Purchase of noncontrolling interests | 0 | 0 |
Distribution to IAC pursuant to the ANGI tax sharing agreement | 0 | |
Acquisition-related contingent consideration payments | 0 | |
Intercompany | 11,723 | 276,845 |
Net cash used in financing activities | 11,723 | 276,845 |
Net increase in cash, cash equivalents, and restricted cash | 0 | 0 |
Cash, cash equivalents, and restricted cash at end of period | 0 | 0 |
IAC/InterActiveCorp | ||
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 9,298 | 24,254 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | (14,062) | (282) |
IAC/InterActiveCorp | Reportable Legal Entities | IAC | ||
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 9,298 | 24,254 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | (14,062) | (282) |
IAC/InterActiveCorp | 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 |
IAC/InterActiveCorp | Reportable Legal Entities | Non-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 |
IAC/InterActiveCorp | Eliminations | ||
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 0 | 0 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | 0 | 0 |
Match Group and ANGI Homeservices | ||
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 573 | 1,752 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | (123,148) | (75,028) |
Match Group and ANGI Homeservices | Reportable Legal Entities | IAC | ||
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 | 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 | 573 | 1,752 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | (123,148) | (75,028) |
Match Group and ANGI Homeservices | Eliminations | ||
Cash flows from financing activities: | ||
Proceeds from the exercise of stock options | 0 | 0 |
Withholding taxes paid on behalf of employees on net settled stock-based awards | 0 | 0 |
Match Group | ||
Cash flows from financing activities: | ||
Borrowings under Match Group Credit Facility | 40,000 | 0 |
Proceeds from Match Group 2019 Senior Notes offering | 350,000 | 0 |
Principal payments on debt | (300,000) | 0 |
Purchase of Match Group treasury stock | (24,186) | (32,465) |
Match Group | Reportable Legal Entities | IAC | ||
Cash flows from financing activities: | ||
Borrowings under Match Group Credit Facility | 0 | |
Proceeds from Match Group 2019 Senior Notes offering | 0 | |
Principal payments on debt | 0 | |
Match Group | Reportable Legal Entities | Guarantor Subsidiaries | ||
Cash flows from financing activities: | ||
Borrowings under Match Group Credit Facility | 0 | |
Proceeds from Match Group 2019 Senior Notes offering | 0 | |
Principal payments on debt | 0 | |
Match Group | Reportable Legal Entities | Non-Guarantor Subsidiaries | ||
Cash flows from financing activities: | ||
Borrowings under Match Group Credit Facility | 40,000 | |
Proceeds from Match Group 2019 Senior Notes offering | 350,000 | |
Principal payments on debt | (300,000) | |
Purchase of Match Group treasury stock | (24,186) | (32,465) |
Match Group | Eliminations | ||
Cash flows from financing activities: | ||
Borrowings under Match Group Credit Facility | 0 | |
Proceeds from Match Group 2019 Senior Notes offering | 0 | |
Principal payments on debt | 0 | |
ANGI Homeservices | ||
Cash flows from financing activities: | ||
Principal payments on debt | (3,438) | (3,438) |
Debt issuance costs | (193) | |
ANGI Homeservices | Reportable Legal Entities | IAC | ||
Cash flows from financing activities: | ||
Principal payments on debt | 0 | 0 |
Debt issuance costs | 0 | |
ANGI Homeservices | Reportable Legal Entities | Guarantor Subsidiaries | ||
Cash flows from financing activities: | ||
Principal payments on debt | 0 | 0 |
Debt issuance costs | 0 | |
ANGI Homeservices | Reportable Legal Entities | Non-Guarantor Subsidiaries | ||
Cash flows from financing activities: | ||
Principal payments on debt | (3,438) | (3,438) |
Debt issuance costs | (193) | |
ANGI Homeservices | Eliminations | ||
Cash flows from financing activities: | ||
Principal payments on debt | $ 0 | 0 |
Debt issuance costs | $ 0 |
Uncategorized Items - iac-20193
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 40,205,000 |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 36,795,000 |
Noncontrolling Interest [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 3,410,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 36,795,000 |