v2.4.0.8
GUARANTOR AND NONGUARANTOR FINANCIAL INFORMATION
12 Months Ended
Dec. 31, 2013
Guarantor and Nonguarantor Financial Statements [Abstract]  
Condensed Financial Statements [Text Block]
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION
The 2013 and 2012 Senior Notes are unconditionally guaranteed, jointly and severally, by certain domestic subsidiaries which are 100% owned by the Company. The following tables present condensed consolidating financial information at December 31, 2013 and December 31, 2012 and for the years ended December 31, 2013, 2012 and 2011 for: IAC, on a stand-alone basis; the combined guarantor subsidiaries of IAC; the combined non-guarantor subsidiaries of IAC; and IAC on a consolidated basis.
Balance sheet at December 31, 2013:
 
IAC
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Total Eliminations
 
IAC Consolidated
 
(In thousands)
Cash and cash equivalents
$
782,022

 
$

 
$
318,422

 
$

 
$
1,100,444

Marketable securities
1,007

 

 
4,997

 

 
6,004

Accounts receivable, net
38

 
135,651

 
71,719

 

 
207,408

Other current assets
45,111

 
76,572

 
40,661

 
(814
)
 
161,530

Intercompany receivables

 
569,030

 
847,423

 
(1,416,453
)
 

Property and equipment, net
5,316

 
221,386

 
67,262

 

 
293,964

Goodwill

 
1,180,159

 
495,164

 

 
1,675,323

Intangible assets, net

 
302,082

 
143,254

 

 
445,336

Investment in subsidiaries
3,833,751

 
782,840

 

 
(4,616,591
)
 

Other non-current assets
83,207

 
15,521

 
252,576

 
(6,629
)
 
344,675

Total assets
$
4,750,452

 
$
3,283,241

 
$
2,241,478

 
$
(6,040,487
)
 
$
4,234,684

 
 
 
 
 
 
 
 
 
 
Accounts payable, trade
$
4,310

 
$
51,525

 
$
21,818

 
$

 
$
77,653

Other current liabilities
41,623

 
280,549

 
187,072

 

 
509,244

Long-term debt, net of current maturities
1,000,000

 
80,000

 

 

 
1,080,000

Income taxes payable
383,926

 
6,768

 
25,690

 

 
416,384

Intercompany liabilities
1,416,453

 

 

 
(1,416,453
)
 

Other long-term liabilities
217,404

 
96,239

 
72,941

 
(7,443
)
 
379,141

Redeemable noncontrolling interests

 

 
42,861

 

 
42,861

IAC shareholders' equity
1,686,736

 
2,768,160

 
1,848,431

 
(4,616,591
)
 
1,686,736

Noncontrolling interests

 

 
42,665

 

 
42,665

Total liabilities and shareholders' equity
$
4,750,452

 
$
3,283,241

 
$
2,241,478

 
$
(6,040,487
)
 
$
4,234,684


Balance sheet at December 31, 2012:
 
IAC
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Total Eliminations
 
IAC Consolidated
 
(In thousands)
Cash and cash equivalents
$
501,075

 
$

 
$
248,902

 
$

 
$
749,977

Marketable securities
20,604

 

 

 

 
20,604

Accounts receivable, net
43

 
145,375

 
84,412

 

 
229,830

Other current assets
58,452

 
55,002

 
43,922

 
(1,037
)
 
156,339

Intercompany receivables

 
482,552

 
10,276,552

 
(10,759,104
)
 

Property and equipment, net
4,116

 
196,240

 
70,156

 

 
270,512

Goodwill

 
1,190,949

 
425,205

 

 
1,616,154

Intangible assets, net

 
341,309

 
141,595

 

 
482,904

Investment in subsidiaries
12,913,694

 
608,656

 

 
(13,522,350
)
 

Other non-current assets
153,155

 
16,557

 
109,864

 
(68
)
 
279,508

Total assets
$
13,651,139

 
$
3,036,640

 
$
11,400,608

 
$
(24,282,559
)
 
$
3,805,828

 
 
 
 
 
 
 
 
 
 
Accounts payable, trade
$
4,366

 
$
65,786

 
$
28,162

 
$

 
$
98,314

Other current liabilities
74,214

 
231,270

 
222,743

 
(1,652
)
 
526,575

Long-term debt, net of current maturities
500,000

 
80,000

 

 

 
580,000

Income taxes payable
440,110

 
26,389

 
13,446

 

 
479,945

Intercompany liabilities
10,759,104

 

 

 
(10,759,104
)
 

Other long-term liabilities
217,617

 
91,437

 
45,632

 
547

 
355,233

Redeemable noncontrolling interests

 
1,388

 
56,738

 

 
58,126

IAC shareholders' equity
1,655,728

 
2,540,370

 
10,981,980

 
(13,522,350
)
 
1,655,728

Noncontrolling interests

 

 
51,907

 

 
51,907

Total liabilities and shareholders' equity
$
13,651,139

 
$
3,036,640

 
$
11,400,608

 
$
(24,282,559
)
 
$
3,805,828



Statement of operations for the year ended December 31, 2013:
 
IAC
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Total Eliminations
 
IAC Consolidated
 
(In thousands)
Revenue
$

 
$
2,183,969

 
$
843,133

 
$
(4,115
)
 
$
3,022,987

Costs and expenses:
 
 
 
 
 
 
 
 
 
Cost of revenue (exclusive of depreciation shown separately below)
2,456

 
597,350

 
403,155

 
(2,860
)
 
1,000,101

Selling and marketing expense
2,563

 
768,270

 
194,431

 
(1,133
)
 
964,131

General and administrative expense
97,025

 
167,795

 
107,772

 
(122
)
 
372,470

Product development expense
4,685

 
100,734

 
35,911

 

 
141,330

Depreciation
1,386

 
38,938

 
18,585

 

 
58,909

Amortization of intangibles

 
40,277

 
19,566

 

 
59,843

Total costs and expenses
108,115

 
1,713,364

 
779,420

 
(4,115
)
 
2,596,784

Operating (loss) income
(108,115
)
 
470,605

 
63,713

 

 
426,203

Equity in earnings (losses) of unconsolidated affiliates
439,925

 
62,402

 
(303
)
 
(508,639
)
 
(6,615
)
Interest expense
(29,417
)
 
(3,979
)
 
(200
)
 

 
(33,596
)
Other (expense) income, net
(35,331
)
 
(35,040
)
 
100,680

 

 
30,309

Earnings from continuing operations before income taxes
267,062

 
493,988

 
163,890

 
(508,639
)
 
416,301

Income tax benefit (provision)
16,796

 
(156,170
)
 
4,872

 

 
(134,502
)
Earnings from continuing operations
283,858

 
337,818

 
168,762

 
(508,639
)
 
281,799

Earnings (losses) from discontinued operations, net of tax
1,926

 

 
(39
)
 
39

 
1,926

Net earnings
285,784

 
337,818

 
168,723

 
(508,600
)
 
283,725

Net loss attributable to noncontrolling interests

 
411

 
1,648

 

 
2,059

Net earnings attributable to IAC shareholders
$
285,784

 
$
338,229

 
$
170,371

 
$
(508,600
)
 
$
285,784

Comprehensive income attributable to IAC shareholders
$
304,907

 
$
339,094

 
$
181,070

 
$
(520,164
)
 
$
304,907


Statement of operations for the year ended December 31, 2012:
 
IAC
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Total Eliminations
 
IAC Consolidated
 
(In thousands)
Revenue
$

 
$
1,986,527

 
$
820,759

 
$
(6,353
)
 
$
2,800,933

Costs and expenses:
 
 
 
 
 
 
 
 
 
Cost of revenue (exclusive of depreciation shown separately below)
5,194

 
594,631

 
395,877

 
(4,905
)
 
990,797

Selling and marketing expense
4,081

 
669,448

 
222,481

 
(1,465
)
 
894,545

General and administrative expense
121,919

 
155,123

 
109,029

 
17

 
386,088

Product development expense
5,611

 
83,008

 
29,064

 

 
117,683

Depreciation
832

 
35,544

 
16,105

 

 
52,481

Amortization of intangibles

 
10,958

 
24,813

 

 
35,771

Total costs and expenses
137,637

 
1,548,712

 
797,369

 
(6,353
)
 
2,477,365

Operating (loss) income
(137,637
)
 
437,815

 
23,390

 

 
323,568

Equity in earnings (losses) of unconsolidated affiliates
309,639

 
37,866

 
(22,548
)
 
(350,302
)
 
(25,345
)
Interest expense
(1,835
)
 
(4,174
)
 
(140
)
 

 
(6,149
)
Other (expense) income, net
(82,900
)
 
(3,733
)
 
83,621

 

 
(3,012
)
Earnings from continuing operations before income taxes
87,267

 
467,774

 
84,323

 
(350,302
)
 
289,062

Income tax benefit (provision)
81,050

 
(146,333
)
 
(53,932
)
 

 
(119,215
)
Earnings from continuing operations
168,317

 
321,441

 
30,391

 
(350,302
)
 
169,847

(Loss) earnings from discontinued operations, net of tax
(9,051
)
 

 
842

 
(842
)
 
(9,051
)
Net earnings
159,266

 
321,441

 
31,233

 
(351,144
)
 
160,796

Net loss (earnings) attributable to noncontrolling interests

 
206

 
(1,736
)
 

 
(1,530
)
Net earnings attributable to IAC shareholders
$
159,266

 
$
321,647

 
$
29,497

 
$
(351,144
)
 
$
159,266

Comprehensive income attributable to IAC shareholders
$
139,540

 
$
322,418

 
$
29,622

 
$
(352,040
)
 
$
139,540


Statement of operations for the year ended December 31, 2011:
 
IAC
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Total Eliminations
 
IAC Consolidated
 
(In thousands)
Revenue
$
413

 
$
1,552,508

 
$
509,270

 
$
(2,747
)
 
$
2,059,444

Costs and expenses:
 
 
 
 
 
 
 
 
 
Cost of revenue (exclusive of depreciation shown separately below)
4,763

 
493,480

 
256,800

 
(1,154
)
 
753,889

Selling and marketing expense
4,385

 
500,118

 
114,310

 
(1,615
)
 
617,198

General and administrative expense
120,908

 
136,511

 
63,621

 
22

 
321,062

Product development expense
7,299

 
70,219

 
13,239

 

 
90,757

Depreciation
799

 
44,940

 
10,980

 

 
56,719

Amortization of intangibles

 
3,593

 
18,464

 

 
22,057

Total costs and expenses
138,154

 
1,248,861

 
477,414

 
(2,747
)
 
1,861,682

Operating (loss) income
(137,741
)
 
303,647

 
31,856

 

 
197,762

Equity in earnings (losses) of unconsolidated affiliates
696,250

 
29,607

 
(32,866
)
 
(729,291
)
 
(36,300
)
Interest expense
(1,111
)
 
(4,259
)
 
(60
)
 

 
(5,430
)
Other (expense) income, net
(732,588
)
 
2,689

 
745,389

 

 
15,490

(Loss) earnings from continuing operations before income taxes
(175,190
)
 
331,684

 
744,319

 
(729,291
)
 
171,522

Income tax benefit (provision)
353,415

 
(126,196
)
 
(223,172
)
 

 
4,047

Earnings from continuing operations
178,225

 
205,488

 
521,147

 
(729,291
)
 
175,569

(Loss) earnings from discontinued operations, net of tax
(3,992
)
 

 
4,877

 
(4,877
)
 
(3,992
)
Net earnings
174,233

 
205,488

 
526,024

 
(734,168
)
 
171,577

Net loss attributable to noncontrolling interests

 
60

 
2,596

 

 
2,656

Net earnings attributable to IAC shareholders
$
174,233

 
$
205,548

 
$
528,620

 
$
(734,168
)
 
$
174,233

Comprehensive income attributable to IAC shareholders
$
144,244

 
$
205,895

 
$
484,333

 
$
(690,228
)
 
$
144,244



Statement of cash flows for the year ended December 31, 2013:
 
IAC
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Total Eliminations
 
IAC Consolidated
 
(In thousands)
Net cash (used in) provided by operating activities attributable to continuing operations
$
(95,081
)
 
$
537,116

 
$
(31,074
)
 
$

 
$
410,961

Cash flows from investing activities attributable to continuing operations:
 
 
 
 
 
 
 
 
 
Acquisitions, net of cash acquired

 
(6,638
)
 
(34,052
)
 

 
(40,690
)
Capital expenditures
(1,387
)
 
(63,931
)
 
(14,993
)
 

 
(80,311
)
Proceeds from maturities and sales of marketable debt securities
12,502

 

 

 

 
12,502

Proceeds from sales of long-term investments
7,839

 
50,850

 
11,279

 

 
69,968

Purchases of long-term investments
(17,814
)
 

 
(33,266
)
 

 
(51,080
)
Other, net

 
(1,725
)
 
11,319

 

 
9,594

Net cash provided by (used in) investing activities attributable to continuing operations
1,140

 
(21,444
)
 
(59,713
)
 

 
(80,017
)
Cash flows from financing activities attributable to continuing operations:
 
 
 
 
 
 
 
 
 
Proceeds from issuance of long-term debt
500,000

 

 

 

 
500,000

Principal payments on long-term debt
(15,844
)
 

 

 

 
(15,844
)
Purchase of treasury stock
(264,214
)
 

 

 

 
(264,214
)
Dividends
(79,189
)
 

 

 

 
(79,189
)
Issuance of common stock, net of withholding taxes
(5,077
)
 

 

 

 
(5,077
)
Excess tax benefits from stock-based awards
32,081

 

 
810

 

 
32,891

Purchase of noncontrolling interests

 

 
(67,947
)
 

 
(67,947
)
Funds transferred to escrow for Meetic tender offer

 

 
(71,512
)
 

 
(71,512
)
Debt issuance costs
(7,399
)
 

 

 

 
(7,399
)
Intercompany
216,359

 
(514,464
)
 
298,105

 

 

Other, net

 
(1,225
)
 
(2,562
)
 

 
(3,787
)
Net cash provided by (used in) financing activities attributable to continuing operations
376,717

 
(515,689
)
 
156,894

 

 
17,922

Total cash provided by (used in) continuing operations
282,776

 
(17
)
 
66,107

 

 
348,866

Total cash used in discontinued operations
(1,829
)
 

 
(48
)
 

 
(1,877
)
Effect of exchange rate changes on cash and cash equivalents

 
17

 
3,461

 

 
3,478

Net increase in cash and cash equivalents
280,947

 

 
69,520

 

 
350,467

Cash and cash equivalents at beginning of period
501,075

 

 
248,902

 

 
749,977

Cash and cash equivalents at end of period
$
782,022

 
$

 
$
318,422

 
$

 
$
1,100,444

Statement of cash flows for the year ended December 31, 2012:
 
IAC
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Total Eliminations
 
IAC Consolidated
 
(In thousands)
Net cash (used in) provided by operating activities attributable to continuing operations
$
(116,353
)
 
$
453,692

 
$
17,188

 
$

 
$
354,527

Cash flows from investing activities attributable to continuing operations:
 
 
 
 
 
 
 
 
 
Acquisitions, net of cash acquired
(35,159
)
 
(341,963
)
 
(33,913
)
 

 
(411,035
)
Capital expenditures
(3,969
)
 
(29,550
)
 
(17,682
)
 

 
(51,201
)
Proceeds from maturities and sales of marketable debt securities
195,501

 

 

 

 
195,501

Purchases of marketable debt securities
(53,952
)
 

 

 

 
(53,952
)
Proceeds from sales of long-term investments
14,194

 

 

 

 
14,194

Purchases of long-term investments
(27,187
)
 
(724
)
 
(8,183
)
 

 
(36,094
)
Other, net
(351
)
 
117

 
(9,267
)
 

 
(9,501
)
Net cash provided by (used in) investing activities attributable to continuing operations
89,077

 
(372,120
)
 
(69,045
)
 

 
(352,088
)
Cash flows from financing activities attributable to continuing operations:
 
 
 
 
 
 
 
 
 
Proceeds from issuance of long-term debt
500,000

 

 

 

 
500,000

Purchase of treasury stock
(691,830
)
 

 

 

 
(691,830
)
Dividends
(68,163
)
 

 

 

 
(68,163
)
Issuance of common stock, net of withholding taxes
262,841

 

 

 

 
262,841

Excess tax benefits from stock-based awards
52,209

 
4,892

 

 

 
57,101

Purchase of noncontrolling interests
(1,936
)
 

 
(2,955
)
 

 
(4,891
)
Debt issuance costs
(11,001
)
 

 

 

 
(11,001
)
Intercompany
(55,020
)
 
(86,446
)
 
141,466

 

 

Other, net

 

 
244

 

 
244

Net cash (used in) provided by financing activities attributable to continuing operations
(12,900
)
 
(81,554
)
 
138,755

 

 
44,301

Total cash (used in) provided by continuing operations
(40,176
)
 
18

 
86,898

 

 
46,740

Total cash (used in) provided by discontinued operations
(3,971
)
 

 
499

 

 
(3,472
)
Effect of exchange rate changes on cash and cash equivalents

 
(18
)
 
2,574

 

 
2,556

Net (decrease) increase in cash and cash equivalents
(44,147
)
 

 
89,971

 

 
45,824

Cash and cash equivalents at beginning of period
545,222

 

 
158,931

 

 
704,153

Cash and cash equivalents at end of period
$
501,075

 
$

 
$
248,902

 
$

 
$
749,977


Statement of cash flows for the year ended December 31, 2011:
 
IAC
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Total Eliminations
 
IAC Consolidated
 
(In thousands)
Net cash (used in) provided by operating activities attributable to continuing operations
$
(75,300
)
 
$
367,719

 
$
79,967

 
$

 
$
372,386

Cash flows from investing activities attributable to continuing operations:
 
 
 
 
 
 
 
 
 
Acquisitions, net of cash acquired

 
(80,998
)
 
(197,471
)
 

 
(278,469
)
Capital expenditures
(798
)
 
(29,542
)
 
(9,614
)
 

 
(39,954
)
Proceeds from maturities and sales of marketable debt securities
267,635

 

 
317,300

 

 
584,935

Purchases of marketable debt securities
(74,240
)
 

 
(129,730
)
 

 
(203,970
)
Proceeds from sales of long-term investments
10,214

 

 
5,000

 

 
15,214

Purchases of long-term investments
(35,263
)
 
(51,008
)
 
(3,974
)
 

 
(90,245
)
Other, net

 
1,886

 
(14,583
)
 

 
(12,697
)
Net cash provided by (used in) investing activities attributable to continuing operations
167,548

 
(159,662
)
 
(33,072
)
 

 
(25,186
)
Cash flows from financing activities attributable to continuing operations:
 
 
 
 
 
 
 
 
 
Purchase of treasury stock
(507,765
)
 

 

 

 
(507,765
)
Dividends
(10,668
)
 

 

 

 
(10,668
)
Issuance of common stock, net of withholding taxes
132,785

 

 

 

 
132,785

Excess tax benefits from stock-based awards
22,166

 

 

 

 
22,166

Purchase of noncontrolling interests
(3,843
)
 

 

 

 
(3,843
)
Intercompany
824,194

 
(207,950
)
 
(616,244
)
 

 

Other, net

 
(249
)
 
(4,659
)
 

 
(4,908
)
Net cash provided by (used in) financing activities attributable to continuing operations
456,869

 
(208,199
)
 
(620,903
)
 

 
(372,233
)
Total cash provided by (used in) continuing operations
549,117

 
(142
)
 
(574,008
)
 

 
(25,033
)
Total cash used in discontinued operations
(7,166
)
 

 
(1,251
)
 

 
(8,417
)
Effect of exchange rate changes on cash and cash equivalents
3,271

 
142

 
(7,909
)
 

 
(4,496
)
Net increase (decrease) in cash and cash equivalents
545,222

 

 
(583,168
)
 

 
(37,946
)
Cash and cash equivalents at beginning of period

 

 
742,099

 

 
742,099

Cash and cash equivalents at end of period
$
545,222

 
$

 
$
158,931

 
$

 
$
704,153