Schedule II

IAC/INTERACTIVECORP AND SUBSIDIARIES

VALUATION AND QUALIFYING ACCOUNTS



Description	Balance at Beginning of Period		Charges to Earnings			Charges to Other Accounts				Deductions				Balance at End of Period
	(In thousands)
2014
Allowance for doubtful accounts and revenue reserves	$	8,540	$	15,226	⁽¹⁾	$	(116	)		$	(11,213	)	⁽⁴⁾	$	12,437
Sales returns accrual	1,208		19,743			—				(19,832		)		1,119
Deferred tax valuation allowance	62,353		34,133		⁽²⁾	1,864			⁽³⁾	—				98,350
Other reserves	2,518													2,204
2013
Allowance for doubtful accounts and revenue reserves	$	8,775	$	12,275	⁽¹⁾	$	564			$	(13,074	)	⁽⁴⁾	$	8,540
Magazine publishing allowance for newsstand returns	2,313		164		⁽⁵⁾	45				(2,522		)	⁽⁶⁾	—
Sales returns accrual	1,244		19,176			—				(19,212		)		1,208
Deferred tax valuation allowance	60,783		8,864		⁽⁷⁾	(7,294		)	⁽⁸⁾	—				62,353
Other reserves	1,925													2,518
2012
Allowance for doubtful accounts and revenue reserves	$	7,309	$	12,237	⁽¹⁾	$	654			$	(11,425	)	⁽⁴⁾	$	8,775
Magazine publishing allowance for newsstand returns	—		10,426		⁽⁵⁾	33				(8,146		)	⁽⁶⁾	2,313
Sales returns accrual	1,020		17,728			—				(17,504		)		1,244
Deferred tax valuation allowance	45,084		9,320		⁽⁹⁾	6,379			⁽³⁾	—				60,783
Other reserves	2,119													1,925

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⁽¹⁾	Additions to the allowance for doubtful accounts are charged to expense. Additions to the revenue reserves are charged against revenue.


⁽²⁾	Amount is primarily related to other-than-temporary impairment charges for certain cost method investments and an increase in federal net operating losses, foreign tax credits, and state tax credits.


⁽³⁾	Amount is primarily related to unbenefited unrealized losses on available-for-sale marketable equity securities included in accumulated other comprehensive income.


⁽⁴⁾	Write-off of fully reserved accounts receivable.


⁽⁵⁾	Additions to the magazine publishing allowance for newsstand returns are related to magazine publishing at Newsweek and are charged against revenue. The Newsweek print business was transitioned to a digital only publication in December 2012 (and was subsequently sold in August 2013).


⁽⁶⁾	Amount represents returns of magazines at Newsweek. The Newsweek print business was transitioned to a digital only publication in December 2012 (and was subsequently sold in August 2013).


⁽⁷⁾	Amount is primarily related to foreign and federal net operating losses, partially offset by a decrease in deferred tax assets for investments in subsidiaries and available-for-sale securities.


⁽⁸⁾	Amount is primary related to the release of a valuation allowance on unrealized gains on available-for-sale securities included in accumulated other comprehensive income.


⁽⁹⁾	Amount is primarily related to an unbenefited other-than-temporary impairment charge related to a long-term marketable equity security, an increase in deferred tax assets for investments in subsidiaries and an increase in federal net operating losses.