XML 56 R11.htm IDEA: XBRL DOCUMENT
v3.20.1

GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended
--- | ---
Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill and intangible assets, net are as follows:
| March 31, |  | December 31,
| 2020 |  | 2019
| (In thousands)
Goodwill | $ | 3,042,139 |  |  | $ | 2,854,462 |
Intangible assets with indefinite lives | 473,208 |  |  | 446,495 |
Intangible assets with definite lives, net of accumulated amortization | 198,259 |  |  | 131,979 |
Total goodwill and intangible assets, net | $ | 3,713,606 |  |  | $ | 3,432,936 |
The following table presents the balance of goodwill by reportable segment, including the changes in the carrying value of goodwill, for the year ended March 31, 2020:
| Balance at December 31, 2019 |  | Additions |  | (Deductions) |  | Impairment |  | Foreign Exchange Translation |  | Balance at March 31, 2020
| (In thousands)
Match Group | $ | 1,239,840 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (12,108 | ) |  | $ | 1,227,732 |
ANGI Homeservices | 882,051 |  |  | — |  |  | — |  |  | — |  |  | (4,867 | ) |  | 877,184 |
Vimeo | 219,374 |  |  | — |  |  | (38 | ) |  | — |  |  | — |  |  | 219,336 |
Applications: |  |  |  |  |  |  |  |  |  |  |
Desktop | 265,146 |  |  | — |  |  | — |  |  | (211,973 | ) |  | — |  |  | 53,173 |
Mosaic Group | 239,602 |  |  | — |  |  | — |  |  | — |  |  | (134 | ) |  | 239,468 |
Total Applications | 504,748 |  |  | — |  |  | — |  |  | (211,973 | ) |  | (134 | ) |  | 292,641 |
Emerging & Other | 8,449 |  |  | 416,797 |  |  | — |  |  | — |  |  | — |  |  | 425,246 |
Total | $ | 2,854,462 |  |  | $ | 416,797 |  |  | $ | (38 | ) |  | $ | (211,973 | ) |  | $ | (17,109 | ) |  | $ | 3,042,139 |
Additions are related to the acquisition of Care.com (included in Emerging & Other Segment). In connection with the first quarter close of its books, the Company determined that the effects of COVID-19 were an indicator of possible impairment for certain of its reporting units and indefinite-lived intangible assets. The Company determined the fair value of these reporting units and indefinite-lived intangible assets as of March 31, 2020 and identified the following impairments:
• | a $212.0 million impairment related to the goodwill of the Desktop reporting unit;
• | a $21.4 million impairment related to certain indefinite-lived intangible assets of the Desktop reporting unit; and
• | a $4.6 million impairment related to certain indefinite-lived intangible assets of the Match Group reporting unit.
In addition, the updated valuation of the Mosaic Group reporting unit indicates that the fair value of this reporting unit approximates its carrying value. The goodwill of the Desktop and Mosaic Group reporting units is $53.2 million and $239.5 million, respectively, as of March 31, 2020. To the extent there is a decline in the fair value of these reporting units, a goodwill impairment would be recorded to the extent the carrying value exceeds the fair value. The fair value of the Desktop and Mosaic Group reporting units was determined using both an income approach based on discounted cash flows ("DCF") and a market approach. Determining fair value using a DCF analysis requires the exercise of significant judgment with respect to several items, including the amount and timing of expected future cash flows and appropriate discount rates. The expected cash flows used in the DCF analyses were based on the most recent forecasts for Desktop and Mosaic Group for 2020 and each of the years in the forecast period, which were updated in light of COVID-19. For years beyond the forecast period, Desktop and Mosaic Group estimates were based, in part, on forecasted growth rates. The discount rates used in the DCF analyses were intended to reflect the risks inherent in the expected future cash flows of the Desktop and Mosaic Group reporting units. The discount rate used for determining the fair value of both the Desktop and Mosaic Group reporting units was 15.0%. Determining fair value using a market approach considers multiples of financial metrics based on both acquisitions and trading multiples of a selected peer group of companies. From the comparable companies, a representative market multiple is determined, which is applied to financial metrics to estimate the fair value of the Desktop and Mosaic Group reporting units. To determine a peer group of companies for Desktop and Mosaic Group, the Company considered companies relevant in terms of consumer use, monetization model, margin and growth characteristics, and brand strength operating in their respective sectors. The aggregate carrying value of goodwill for which the most recent estimate of the excess of fair value over carrying value is less than 20% is approximately $709.4 million. The following table presents the balance of goodwill by reportable segment, including the changes in the carrying value of goodwill, for the year ended December 31, 2019:
| Balance at December 31, 2018 |  | Additions |  | (Deductions) |  | Impairment |  | Foreign Exchange Translation |  | Balance at December 31, 2019
| (In thousands)
Match Group | $ | 1,245,013 |  |  | $ | 3,553 |  |  | $ | — |  |  | $ | — |  |  | $ | (8,726 | ) |  | $ | 1,239,840 |
ANGI Homeservices | 892,800 |  |  | 18,326 |  |  | (29,267 | ) |  | — |  |  | 192 |  |  | 882,051 |
Vimeo | 77,152 |  |  | 142,222 |  |  | — |  |  | — |  |  | — |  |  | 219,374 |
Applications: |  |  |  |  |  |  |  |  |  |  |
Desktop | 265,146 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 265,146 |
Mosaic Group | 239,746 |  |  | — |  |  | — |  |  | — |  |  | (144 | ) |  | 239,602 |
Total Applications | 504,892 |  |  | — |  |  | — |  |  | — |  |  | (144 | ) |  | 504,748 |
Emerging & Other | 7,002 |  |  | 4,765 |  |  | — |  |  | (3,318 | ) |  | — |  |  | 8,449 |
Total | $ | 2,726,859 |  |  | $ | 168,866 |  |  | $ | (29,267 | ) |  | $ | (3,318 | ) |  | $ | (8,678 | ) |  | $ | 2,854,462 |
Additions primarily relate to the acquisitions of Magisto (included in the Vimeo segment) and Fixd Repair (included in the ANGI Homeservices segment). Deductions primarily relate to tax benefits of acquired attributes related to the acquisition of Handy (included in the ANGI Homeservices segment). During the fourth quarter of 2019, the Company recorded an impairment charge of $3.3 million related to the goodwill of the College Humor Media business (included in the Emerging & Other Segment). The March 31, 2020 and December 31, 2019 goodwill balances reflect accumulated impairment losses of $741.1 million and $529.1 million, respectively, at Applications. The March 31, 2020 and December 31, 2019 goodwill balances also reflect accumulated impairment losses of $399.7 million, $198.3 million, and $14.9 million at the businesses previously included in the IAC Publishing segment (excluding Dotdash, included in the Emerging & Other segment), Dotdash and College Humor Media (included in the Emerging & Other segment), respectively. As described above, since the effects of COVID-19 were an indicator of impairment, the Company updated its calculations of the fair value of its indefinite-lived intangible assets as of March 31, 2020. The Company recorded impairment charges of $21.4 million and $4.6 million at Desktop and MTCH, respectively, related to indefinite-lived trade names. The impairment of indefinite-lived intangible assets is included in “Amortization of intangibles” in the accompanying consolidated statement of operations. The Company determines the fair value of indefinite-lived intangible assets using an avoided royalty DCF valuation analysis. Significant judgments inherent in this analysis include the selection of appropriate royalty and discount rates and estimating the amount and timing of expected future cash flows. The discount rates used in the DCF analyses were intended to reflect the risks inherent in the expected future cash flows generated by the respective intangible assets. The royalty rates used in the DCF analyses were based upon an estimate of the royalty rates that a market participant would pay to license the Company's trade names and trademarks. The discount rates used to value the trade names, including those that were impaired, in the first quarter of 2020 ranged from 10.5% to 15.0% and the royalty rates used ranged from 1.0% to 6.0%. The aggregate carrying value of indefinite-lived intangible assets for which the most recent estimate of the excess of fair value over carrying value is less than 20% is approximately $162.5 million. At March 31, 2020 and December 31, 2019, intangible assets with definite lives are as follows:
| March 31, 2020
| Gross Carrying Amount |  | Accumulated Amortization |  | Net |  | Weighted-Average Useful Life (Years)
| (In thousands) |  |
Technology | $ | 203,737 |  |  | $ | (87,442 | ) |  | $ | 116,295 |  |  | 4.7
Service professional relationships | 99,850 |  |  | (83,560 | ) |  | 16,290 |  |  | 3.0
Customer lists and user base | 79,768 |  |  | (26,804 | ) |  | 52,964 |  |  | 4.0
Trade names | 21,868 |  |  | (15,544 | ) |  | 6,324 |  |  | 2.7
Memberships | 15,900 |  |  | (13,264 | ) |  | 2,636 |  |  | 3.0
Other | 14,703 |  |  | (10,953 | ) |  | 3,750 |  |  | 3.7
Total | $ | 435,826 |  |  | $ | (237,567 | ) |  | $ | 198,259 |  |  | 4.0
| December 31, 2019
| Gross Carrying Amount |  | Accumulated Amortization |  | Net |  | Weighted-Average Useful Life (Years)
| (In thousands) |  |
Technology | $ | 154,052 |  |  | $ | (79,358 | ) |  | $ | 74,694 |  |  | 4.6
Service professional relationships | 99,651 |  |  | (76,445 | ) |  | 23,206 |  |  | 2.9
Customer lists and user base | 44,548 |  |  | (24,488 | ) |  | 20,060 |  |  | 3.3
Trade names | 19,074 |  |  | (13,068 | ) |  | 6,006 |  |  | 3.2
Memberships | 15,900 |  |  | (11,940 | ) |  | 3,960 |  |  | 3.0
Other | 13,952 |  |  | (9,899 | ) |  | 4,053 |  |  | 3.7
Total | $ | 347,177 |  |  | $ | (215,198 | ) |  | $ | 131,979 |  |  | 3.8
At March 31, 2020, amortization of intangible assets with definite lives is estimated to be as follows:
| (In thousands)
Remainder of 2020 | $ | 60,498 |
2021 | 45,014 |
2022 | 39,859 |
2023 | 30,119 |
2024 | 15,841 |
Thereafter | 6,928 |
Total | $ | 198,259 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration