Cover Page
Cover Page | Oct. 05, 2020 |
Cover [Abstract] | |
Entity Central Index Key | 0001800227 |
Amendment Flag | false |
Document Type | 8-K |
Document Period End Date | Oct. 5, 2020 |
Entity Registrant Name | IAC/INTERACTIVECORP |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-39356 |
Entity Tax Identification Number | 84-3727412 |
Entity Address, Address Line One | 555 West 18th Street, |
Entity Address, City or Town | New York, |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10011 |
City Area Code | 212 |
Local Phone Number | 314-7300 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, par value $0.001 |
Trading Symbol | IAC |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | Schedule II IAC HOLDINGS, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS Description Balance at Charges to Charges to Deductions Balance at (In thousands) 2019 Allowance for doubtful accounts and revenue reserves $ 18,136 $ 65,723 (a) $ 247 $ (59,958) (b) $ 24,148 Deferred tax valuation allowance $ 86,778 $ 7,813 (c) $ (1,601) (d) $ — $ 92,990 Other reserves $ 4,726 $ 5,060 2018 Allowance for doubtful accounts and revenue reserves $ 10,710 $ 48,362 (a) $ (557) $ (40,379) (b) $ 18,136 Deferred tax valuation allowance $ 91,040 $ (2,056) (e) $ (2,206) (d) $ — $ 86,778 Other reserves $ — $ 4,726 2017 Allowance for doubtful accounts and revenue reserves $ 15,474 $ 28,460 (a) $ (723) $ (32,501) (b) $ 10,710 Deferred tax valuation allowance $ 55,680 $ 29,721 (f) $ 5,639 (g) $ — $ 91,040 _________________________________________________________ (a) Additions to the allowance for doubtful accounts are charged to expense. (b) Write-off of fully reserved accounts receivable. (c) Amount is primarily related to an increase in foreign NOLs partially offset by a net decrease in unbenefited capital losses. (d) Amount is primarily related to currency translation adjustments on foreign NOLs. (e) Amount is primarily related to an expiring tax credit. (f) Amount is due primarily to the establishment of foreign NOLs related to an acquisition. (g) Amount is primarily related to acquired state NOLs, acquired foreign tax credits and currency translation adjustments on foreign NOLs. |
COMBINED BALANCE SHEET
COMBINED BALANCE SHEET - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 839,796 | $ 884,975 |
Marketable securities | 25,366 | |
Accounts receivable, net of allowance and reserves of $24,148 and $18,136, respectively | 181,875 | 180,137 |
Notes receivable—related party | 55,251 | 0 |
Other current assets | 152,334 | 167,459 |
Total current assets | 1,229,256 | 1,257,937 |
Right-of-use assets, net | 138,608 | 0 |
Property and equipment, net | 305,414 | 260,448 |
Goodwill | 1,616,867 | 1,484,117 |
Intangible assets, net | 350,150 | 393,782 |
Long-term investments | 347,975 | 225,979 |
Other non-current assets | 109,138 | 109,918 |
TOTAL ASSETS | 4,097,408 | 3,732,181 |
LIABILITIES: | ||
Current portion of long-term debt | 13,750 | 13,750 |
Accounts payable, trade | 72,452 | 64,075 |
Deferred revenue | 178,647 | 150,080 |
Accrued expenses and other current liabilities | 320,473 | 299,565 |
Total current liabilities | 585,322 | 527,470 |
Long-term debt, net | 231,946 | 244,971 |
Long-term debt—related party | 0 | 2,500 |
Income taxes payable | 6,410 | 6,534 |
Deferred income taxes | 44,459 | 137,642 |
Other long-term liabilities | 180,307 | 62,977 |
Redeemable noncontrolling interests | 43,818 | 65,687 |
Commitments and contingencies | ||
PARENT'S EQUITY: | ||
Invested capital | 2,547,251 | 2,296,583 |
Accumulated other comprehensive loss | (12,226) | (12,541) |
Old IAC equity in IAC Holdings, Inc. and subsidiaries | 2,535,025 | 2,284,042 |
Noncontrolling interests | 470,121 | 400,358 |
Total parent's equity | 3,005,146 | 2,684,400 |
TOTAL LIABILITIES AND PARENT'S EQUITY | $ 4,097,408 | $ 3,732,181 |
COMBINED BALANCE SHEET (Parenth
COMBINED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance and reserves of accounts receivable | $ 24,148 | $ 18,136 |
COMBINED STATEMENT OF OPERATION
COMBINED STATEMENT OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | $ 2,705,801 | $ 2,533,048 | $ 1,952,607 |
Operating costs and expenses: | |||
Cost of revenue (exclusive of depreciation shown separately below) | 600,240 | 501,152 | 362,627 |
Selling and marketing expense | 1,202,183 | 1,099,487 | 998,305 |
General and administrative expense | 617,235 | 569,802 | 528,326 |
Product development expense | 193,457 | 177,298 | 148,015 |
Depreciation | 55,949 | 42,393 | 40,816 |
Amortization of intangibles | 83,868 | 107,081 | 39,150 |
Goodwill impairment | 3,318 | 0 | 0 |
Total operating costs and expenses | 2,756,250 | 2,497,213 | 2,117,239 |
Operating (loss) income | (50,449) | 35,835 | (164,632) |
Interest expense—third party | (11,904) | (13,059) | (2,181) |
Interest income, net—related party | 420 | 325 | 23,656 |
Other income, net | 33,627 | 282,470 | 12,363 |
(Loss) earnings before income taxes | (28,306) | 305,571 | (130,794) |
Income tax benefit (provision) | 60,489 | (13,200) | 155,402 |
Net earnings | 32,183 | 292,371 | 24,608 |
Net (earnings) loss attributable to noncontrolling interests | (9,288) | (45,599) | 12,398 |
Net earnings attributable to Old IAC equity in IAC Holdings, Inc. | 22,895 | 246,772 | 37,006 |
Stock-based compensation expense by function: | |||
Stock-based compensation expense | 134,338 | 148,405 | 192,005 |
Cost of revenue | |||
Stock-based compensation expense by function: | |||
Stock-based compensation expense | 74 | 195 | 180 |
Selling and marketing expense | |||
Stock-based compensation expense by function: | |||
Stock-based compensation expense | 5,185 | 4,345 | 26,654 |
General and administrative expense | |||
Stock-based compensation expense by function: | |||
Stock-based compensation expense | 118,709 | 132,180 | 146,963 |
Product development expense | |||
Stock-based compensation expense by function: | |||
Stock-based compensation expense | $ 10,370 | $ 11,685 | $ 18,208 |
COMBINED STATEMENT OF COMPREHEN
COMBINED STATEMENT OF COMPREHENSIVE OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 32,183 | $ 292,371 | $ 24,608 |
Other comprehensive income (loss), net of income taxes: | |||
Change in foreign currency translation adjustment | 311 | (6,444) | 15,677 |
Change in unrealized gains and losses on available-for-sale marketable debt securities | (3) | 3 | |
Total other comprehensive income (loss), net of income taxes | 308 | (6,441) | 15,677 |
Comprehensive income, net of income taxes | 32,491 | 285,930 | 40,285 |
Components of comprehensive (income) loss attributable to noncontrolling interests: | |||
Net (earnings) loss attributable to noncontrolling interests | (9,288) | (45,599) | 12,398 |
Change in foreign currency translation adjustment attributable to noncontrolling interests | 26 | 1,416 | (1,310) |
Change in unrealized gains and losses of available-for-sale securities attributable to noncontrolling interests | 1 | (1) | 0 |
Comprehensive (income) loss attributable to noncontrolling interests | (9,261) | (44,184) | 11,088 |
Comprehensive income attributable to Old IAC equity in IAC Holdings, Inc. | $ 23,230 | $ 241,746 | $ 51,373 |
COMBINED STATEMENT OF PARENT'S
COMBINED STATEMENT OF PARENT'S EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Redeemable Noncontrolling Interests | Total Old IAC equity in IAC Holdings, Inc. | Total Old IAC equity in IAC Holdings, Inc.Cumulative Effect, Period of Adoption, Adjustment | Invested Capital | Invested CapitalCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interests | Noncontrolling InterestsCumulative Effect, Period of Adoption, Adjustment |
Balance at beginning of period at Dec. 31, 2016 | $ 26,764 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||
Net earnings (loss) | 3,442 | |||||||||
Other comprehensive income (loss), net of income taxes | 769 | |||||||||
Stock-based compensation expense | 2,017 | |||||||||
Distributions to and purchases of redeemable noncontrolling interests | (20,025) | |||||||||
Adjustment of redeemable noncontrolling interests to fair value | 6,448 | |||||||||
Noncontrolling interests created in acquisitions | 17,758 | |||||||||
Other | (362) | |||||||||
Balance at end of period at Dec. 31, 2017 | 36,811 | |||||||||
Balance at beginning of period at Dec. 31, 2016 | $ 1,250,920 | $ 1,241,439 | $ 1,263,303 | $ (21,864) | $ 9,481 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||||||
Net earnings (loss) | 21,166 | 37,006 | 37,006 | (15,840) | ||||||
Other comprehensive income (loss), net of income taxes | 14,908 | 14,367 | 14,367 | 541 | ||||||
Stock-based compensation expense | 189,988 | 64,539 | 64,539 | 125,449 | ||||||
Distributions to and purchases of noncontrolling interests | (848) | (848) | ||||||||
Adjustment of redeemable noncontrolling interests to fair value | (6,448) | (6,448) | (6,448) | |||||||
Acquisition of Angie's List and creation of noncontrolling interests in ANGI Homeservices | 779,471 | 645,475 | 645,475 | 133,996 | ||||||
Issuance of ANGI Homeservices common stock pursuant to stock-based awards, net of withholding taxes | (8,493) | (11,223) | (11,216) | (7) | 2,730 | |||||
Net increase (decrease) in IAC/InterActiveCorp's investment in IAC Holdings, Inc. | 14,784 | 14,784 | 14,784 | |||||||
Other | 872 | 872 | ||||||||
Balance at end of period at Dec. 31, 2017 | 2,256,320 | $ 40,337 | 1,999,939 | $ 36,927 | 2,007,443 | $ 36,927 | (7,504) | 256,381 | $ 3,410 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||
Net earnings (loss) | 33,788 | |||||||||
Other comprehensive income (loss), net of income taxes | (582) | |||||||||
Stock-based compensation expense | 1,138 | |||||||||
Distributions to and purchases of redeemable noncontrolling interests | (11,282) | |||||||||
Adjustment of redeemable noncontrolling interests to fair value | 6,640 | |||||||||
Noncontrolling interests created in acquisitions | 2,261 | |||||||||
Other | (3,087) | |||||||||
Balance at end of period at Dec. 31, 2018 | 65,687 | 65,687 | ||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||
Net earnings (loss) | 258,583 | 246,772 | 246,772 | 11,811 | ||||||
Other comprehensive income (loss), net of income taxes | (5,859) | (5,026) | (5,026) | (833) | ||||||
Stock-based compensation expense | 147,267 | 51,327 | 51,327 | 95,940 | ||||||
Distributions to and purchases of noncontrolling interests | (1,236) | (1,236) | ||||||||
Adjustment of redeemable noncontrolling interests to fair value | (6,640) | (6,640) | (6,640) | |||||||
Issuance of ANGI Homeservices common stock pursuant to stock-based awards, net of withholding taxes | 140,706 | 106,204 | 106,215 | (11) | 34,502 | |||||
Net increase (decrease) in IAC/InterActiveCorp's investment in IAC Holdings, Inc. | (145,461) | (145,461) | (145,461) | |||||||
Other | 383 | 383 | ||||||||
Balance at end of period at Dec. 31, 2018 | 2,684,400 | 2,284,042 | 2,296,583 | (12,541) | 400,358 | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||
Net earnings (loss) | 3,168 | |||||||||
Other comprehensive income (loss), net of income taxes | 39 | |||||||||
Stock-based compensation expense | 148 | |||||||||
Distributions to and purchases of redeemable noncontrolling interests | (40,432) | |||||||||
Adjustment of redeemable noncontrolling interests to fair value | 11,554 | |||||||||
Noncontrolling interests created in acquisitions | 3,739 | |||||||||
Other | (85) | |||||||||
Balance at end of period at Dec. 31, 2019 | 43,818 | $ 43,818 | ||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||
Net earnings (loss) | 29,015 | 22,895 | 22,895 | 6,120 | ||||||
Other comprehensive income (loss), net of income taxes | 269 | 335 | 335 | (66) | ||||||
Stock-based compensation expense | 131,708 | 65,893 | 65,893 | 65,815 | ||||||
Adjustment of redeemable noncontrolling interests to fair value | (11,554) | (11,554) | (11,554) | |||||||
Issuance of ANGI Homeservices common stock pursuant to stock-based awards, net of withholding taxes | (34,722) | (32,616) | (32,596) | (20) | (2,106) | |||||
Purchase of treasury stock | (57,949) | (57,949) | (57,949) | |||||||
Net increase (decrease) in IAC/InterActiveCorp's investment in IAC Holdings, Inc. | 263,979 | 263,979 | 263,979 | |||||||
Balance at end of period at Dec. 31, 2019 | $ 3,005,146 | $ 2,535,025 | $ 2,547,251 | $ (12,226) | $ 470,121 |
COMBINED STATEMENT OF CASH FLOW
COMBINED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net earnings | $ 32,183 | $ 292,371 | $ 24,608 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Stock-based compensation expense | 134,338 | 148,405 | 192,005 |
Amortization of intangibles | 83,868 | 107,081 | 39,150 |
Depreciation | 55,949 | 42,393 | 40,816 |
Bad debt expense | 65,723 | 48,362 | 28,460 |
Goodwill impairment | 3,318 | 0 | 0 |
Deferred income taxes | (62,770) | 8,765 | (126,735) |
Gains on equity securities, net | (41,385) | (153,429) | (25,797) |
Losses (gains) from the sale of businesses, net | 8,239 | (121,312) | 70 |
Other adjustments, net | 6,085 | 2,410 | 19,180 |
Changes in assets and liabilities, net of effects of acquisitions and dispositions: | |||
Accounts receivable | (73,574) | (52,131) | (62,205) |
Other assets | 10,605 | (29,802) | 17,867 |
Accounts payable and other liabilities | 889 | 35,611 | (4,142) |
Income taxes payable and receivable | 196 | 4,302 | (7,358) |
Deferred revenue | 28,136 | 36,409 | 4,498 |
Net cash provided by operating activities | 251,800 | 369,435 | 140,417 |
Cash flows from investing activities: | |||
Acquisitions, net of cash acquired | (201,967) | (65,632) | (146,273) |
Capital expenditures | (97,898) | (54,680) | (46,153) |
Proceeds from maturities of marketable debt securities | 25,000 | 35,000 | |
Purchases of marketable debt securities | (59,671) | 0 | |
Net proceeds from the sale of businesses and investments | 164,828 | 136,311 | 28,561 |
Purchases of investments | (253,663) | (49,180) | (29) |
Increase in notes receivable—related party | (54,828) | 0 | 0 |
Other, net | (3,340) | 13,170 | 2,857 |
Net cash used in investing activities | (421,868) | (44,682) | (161,037) |
Cash flows from financing activities: | |||
Borrowing under ANGI Homeservices Term Loan | 275,000 | ||
Principal payments on ANGI Homeservices Term Loan | (13,750) | (13,750) | 0 |
Proceeds from issuance of related-party debt | 0 | 2,500 | 0 |
Principal payments on related-party debt | (2,500) | 0 | 0 |
Debt issuance costs | 0 | (3,709) | (3,803) |
Purchase of ANGI Homeservices treasury stock | (56,905) | 0 | 0 |
Proceeds from the exercise of ANGI Homeservices stock options | 573 | 4,693 | 1,653 |
Withholding taxes paid on behalf of ANGI Homeservices employees on net settled stock-based awards | (35,284) | (29,844) | (10,113) |
Distributions to and purchases of noncontrolling interests | (27,534) | (12,518) | (19,748) |
Acquisition-related contingent consideration payments | 0 | 0 | (3,860) |
Transfers from (to) Old IAC | 263,281 | (144,069) | 8,015 |
Other, net | (3,795) | (1,041) | (340) |
Net cash provided by (used in) financing activities | 124,086 | (197,738) | 246,804 |
Total cash (used) provided | (45,982) | 127,015 | 226,184 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (122) | (118) | 1,587 |
Net (decrease) increase in cash and cash equivalents and restricted cash | (46,104) | 126,897 | 227,771 |
Cash and cash equivalents and restricted cash at beginning of period | 886,836 | 759,939 | 532,168 |
Cash and cash equivalents and restricted cash at end of period | $ 840,732 | $ 886,836 | $ 759,939 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION Separation On December 19, 2019, IAC/InterActiveCorp (“Old IAC”) entered into a Transaction Agreement (the “Transaction Agreement”) with Match Group, Inc., a Delaware corporation in which Old IAC owns a majority equity stake (“Match”), IAC Holdings, Inc., a Delaware corporation and a direct wholly owned subsidiary of Old IAC (“New IAC”), and Valentine Merger Sub LLC, a Delaware limited liability company and an indirect wholly owned subsidiary of Old IAC. Subject to the terms and conditions set forth in the Transaction Agreement, the businesses of Match will be separated from the remaining businesses of Old IAC through a series of transactions that will result in the pre‑transaction stockholders of Old IAC owning shares in two, separate public companies—(1) Old IAC, which will be renamed “Match Group, Inc.” and which will own the businesses of Match and certain IAC financing subsidiaries (and which we refer to as “New Match”), and (2) New IAC, which will be renamed “IAC/InterActiveCorp” and which will own Old IAC’s other businesses—and the pre‑transaction stockholders of Match (other than Old IAC) owning shares in New Match. Completion of the Separation, which is expected to occur in the second quarter of 2020, is subject to the satisfaction (or, to the extent permitted by law, waiver) of a number of conditions. We refer to this transaction as the “Separation". On June 30, 2020, the Separation was completed. Basis of Presentation and Combination In connection with the Separation, IAC Holdings, Inc. was incorporated as a Delaware corporation in November 2019. IAC Holdings, Inc. currently does not have any material assets or liabilities, nor does it engage in any business or other activities and, other than in connection with the Separation, will not acquire or incur any material assets or liabilities, nor will it engage in any business or other activities. The historical combined financial statements of IAC Holdings, Inc. and subsidiaries have been prepared on a standalone basis and are derived from the consolidated financial statements and accounting records of Old IAC. The combined financial statements reflect the historical financial position, results of operations and cash flows of the businesses comprising New IAC since their respective dates of acquisition by Old IAC and the allocation to New IAC of certain Old IAC corporate expenses relating to New IAC based on the historical financial statements and accounting records of Old IAC. For the purpose of these financial statements, income taxes have been computed as if the entities comprising New IAC filed tax returns on a standalone, separate basis. The financial statements have been prepared on a combined, rather than consolidated, basis as the final steps of the legal reorganization, which will result in the contribution of all the entities that will comprise New IAC as of the date of the Separation, are not yet complete. As used herein, "New IAC," "we," "our" or "us" and similar terms in these historical combined financial statements refer to IAC Holdings, Inc. and its subsidiaries (unless the context requires otherwise). New IAC prepares its combined financial statements in accordance with U.S. generally accepted accounting principles ("GAAP"). All intercompany transactions and balances between and among New IAC, its subsidiaries and the entities comprising New IAC have been eliminated. All intercompany transactions between (i) New IAC and (ii) Old IAC and its subsidiaries are considered to be effectively settled for cash at the time the transaction is recorded. The total net effect of the settlement of these intercompany transactions is reflected in the combined statement of cash flows as a financing activity and in the combined balance sheet as “Invested capital.” In management's opinion, the assumptions underlying the historical combined financial statements of New IAC, including the basis on which the expenses have been allocated from Old IAC, are reasonable. However, the allocations may not reflect the expenses that we may have incurred as an independent, stand-alone company for the periods presented. Company overview New IAC operates Vimeo and Dotdash, among many other online businesses, and also has majority ownership of ANGI Homeservices, which includes HomeAdvisor, Angie’s List and Handy. ANGI Homeservices Our ANGI Homeservices segment includes the North American (United States and Canada) and European businesses and operations of ANGI Homeservices Inc. ("ANGI"). On September 29, 2017, New IAC's HomeAdvisor business and Angie's List Inc. ("Angie's List") combined under a new publicly traded company called ANGI Homeservices Inc. (the "Combination"). At December 31, 2019, New IAC's economic interest and voting interest in ANGI were 84.1% and 98.1%, respectively. ANGI Homeservices Inc. connects quality home service professionals across 500 different categories, from repairing and remodeling to cleaning and landscaping, with consumers. Over 250,000 domestic service professionals find work through ANGI and consumers turn to at least one of our brands to find a professional for more than 25 million projects each year. ANGI has established category-transforming products with brands such as HomeAdvisor, Angie’s List, Handy and Fixd Repair. On January 25, 2019, ANGI completed the acquisition of Fixd Repair, a home warranty and service company. On October 19, 2018, ANGI acquired Handy, a leading platform in the United States for connecting individuals looking for household services (primarily cleaning and handyman services) with top-quality, pre-screened independent service professionals. ANGI also owns and operates mHelpDesk, a provider of cloud-based field service software for small to mid-size businesses. Prior to its sale on December 31, 2018, ANGI also operated Felix, a pay-per-call advertising service business. In addition to its market-leading U.S. operations, ANGI owns leading home services online marketplaces in France (Travaux), Germany (MyHammer), Netherlands (Werkspot), United Kingdom (MyBuilder Limited or "MyBuilder," which we acquired a controlling interest in on March 24, 2017), Canada (HomeStars Inc. or "HomeStars," which we acquired a controlling interest in on February 8, 2017) and Italy (Instapro), as well as operations in Austria (MyHammer). Vimeo Vimeo operates a global video platform for creative professionals, small and medium businesses ("SMBs"), organizations and enterprises to connect with their audiences, customers and employees. Vimeo provides cloud-based Software-as-a-Service ("SaaS") offerings that allow customers to create, host, stream, monetize, analyze and distribute videos online and across devices. Vimeo also sold live streaming accessories through its hardware business, which was sold on March 29, 2019. On May 28, 2019, Vimeo completed the acquisition of Magisto, a video creation service enabling consumers and businesses to create short-form videos. Dotdash Dotdash is a portfolio of digital publishing brands providing expert information and inspiration in select vertical content categories. Search Our Search segment consists of our Desktop business and Ask Media Group. Through our Desktop business, we are a leading provider of global, advertising-driven desktop applications. We own and operate a portfolio of desktop browser applications that provide users with access to a wide variety of online content, tools and services. We provide users who download our desktop browser applications with new tab search services, as well as the option of default browser search services. We distribute our desktop browser applications to consumers free of charge on an opt-in basis directly through direct to consumer (primarily Chrome Web Store) and partnership distribution channels. Ask Media Group is a collection of websites providing general search services, and to a lesser extent, content that help users find the information they need. Emerging & Other Our Emerging & Other segment primarily includes: • Mosaic Group, a leading provider of global subscription mobile applications. Mosaic Group's products are developed by the following owned and operated businesses: ◦ Apalon, a leading mobile development company with one of the largest and most popular application portfolios worldwide. ◦ iTranslate, a developer and distributor of some of the world's most downloaded mobile translation applications, enabling users to read, write, speak and learn foreign languages anywhere in the world, acquired in March 2018. ◦ TelTech, a developer and distributor of unique and innovative mobile communications applications that help protect consumer privacy, acquired in October 2018. ◦ Daily Burn, a health and fitness business that provides streaming fitness and workout videos across a variety of platforms (including mobile, web and other Internet-enabled television platforms). • Bluecrew, a technology driven staffing platform exclusively for flexible W-2 work, which we acquired a controlling interest in on February 26, 2018; • NurseFly, a platform to efficiently connect healthcare professionals with job opportunities, which we acquired a controlling interest in on June 26, 2019; • The Daily Beast, a website dedicated to news, commentary, culture and entertainment that publishes original reporting and opinion from its roster of full-time journalists and contributors; • College Humor Media, a provider of digital content, including its subscription only property, Dropout.tv; • IAC Films, a provider of production and producer services for feature films, primarily for initial sale and distribution through theatrical releases and video-on-demand services in the United States and internationally; and • For periods prior to their sales: ◦ CityGrid, an advertising network that integrated local content and advertising for distribution to affiliated and third-party publishers across web and mobile platforms, sold December 31, 2018. ◦ Dictionary.com, an online and mobile dictionary and thesaurus service, sold November 13, 2018. ◦ Electus, including Notional, a provider of production and producer services for both unscripted and scripted television and digital content, primarily for initial sale and distribution in the United States, sold October 29, 2018. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting for Investments in Equity Securities Investments in equity securities, other than those of our combined subsidiaries and those accounted for under the equity method, if applicable, are accounted for at fair value or under the measurement alternative of Financial Accounting Standards Board ("FASB") 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 securities of the same issuer; value is generally determined based on a market approach as of the transaction date. A security will be considered identical or similar if it has identical or similar rights to the equity securities held by New IAC. New IAC reviews its investments in equity securities without readily determinable fair values 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, New IAC prepares quantitative assessments of the fair value of our investments in equity securities, which require judgment and the use of estimates. When our assessment indicates that the fair value of the investment is below the carrying value, New IAC writes down the investment to its fair value and records the corresponding charge within other income (expense), net. In the event New IAC has investments in the common stock or in-substance common stock of entities in which we have the ability to exercise significant influence over the operating and financial matters of the investee, but do not have a controlling financial interest, these would be accounted for using the equity method and included in "Long-term investments" in the accompanying combined balance sheet. At December 31, 2019 and 2018, New IAC did not have any investments accounted for using the equity method. Accounting Estimates Management of New IAC is required to make certain estimates, judgments and assumptions during the preparation of its combined 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, New IAC evaluates its estimates and judgments, including those related to: the fair values of cash equivalents and marketable debt securities; the carrying value of accounts receivable, including the determination of the allowance for doubtful accounts; the determination of revenue reserves; the carrying value of right-of-use assets ("ROU assets"); the useful lives and recoverability of definite-lived intangible assets and property and equipment; the recoverability of goodwill and indefinite-lived intangible assets; the fair value of equity securities without readily determinable fair values; contingencies; 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. New IAC bases its estimates and judgments on historical experience, its forecasts and budgets and other factors that New IAC considers relevant. Revenue Recognition New IAC adopted ASU No. 2014-09, Revenue from Contracts with Customers, effective January 1, 2018 using the modified retrospective transition method for open contracts as of the date of initial application. The cumulative effect to New IAC's retained earnings at January 1, 2018 was an increase of $40.3 million, of which $3.4 million was related to the noncontrolling interest in ANGI; the adjustment to retained earnings was principally related to New IAC’s ANGI segment and the Desktop business. • Within ANGI, the effect of the adoption of ASU No. 2014-09 was that commissions paid to employees pursuant to certain sales incentive programs, which represent the incremental direct costs of obtaining a service professional contract, are now capitalized and amortized over the estimated life of a service professional (also referred to as the estimated customer relationship period). These costs were expensed as incurred prior to January 1, 2018. The cumulative effect of the adoption of ASU No. 2014-09 was the establishment of a current and non-current asset for capitalized sales commissions of $29.7 million and $4.2 million, respectively, and a related deferred tax liability of $8.0 million, resulting in a net increase to retained earnings of $25.9 million on January 1, 2018. • Within the Desktop business, the primary effect of the adoption of ASU No. 2014-09 was to accelerate the recognition of the portion of the revenue of certain desktop applications sold by SlimWare that qualify as functional intellectual property ("functional IP") under ASU No. 2014-09. This revenue was previously deferred and recognized over the applicable subscription term. The cumulative effect of the adoption of ASU No. 2014-09 for SlimWare was a reduction in deferred revenue of $20.3 million and the establishment of a deferred tax liability of $4.9 million, resulting in a net increase to retained earnings of $15.5 million on January 1, 2018. New IAC's disaggregated revenue disclosures are presented in " Note 10—Segment Information ." The following table presents the impact of the adoption of ASU No. 2014-09 by segment under Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers , as reported, and ASC 605, Revenue Recognition , for the year ended December 31, 2018. Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Revenue by segment: ANGI Homeservices $ 1,132,241 $ 1,132,241 $ — Vimeo 159,641 160,931 (1,290) Dotdash 130,991 130,991 — Search 823,950 830,447 (6,497) Emerging & Other 286,586 279,294 7,292 Inter-segment eliminations (361) (361) — Total $ 2,533,048 $ 2,533,543 $ (495) Operating costs and expenses by segment: ANGI Homeservices $ 1,068,335 $ 1,073,275 $ (4,940) Vimeo 195,235 196,212 (977) Dotdash 112,213 112,213 — Search 672,525 672,525 — Emerging & Other 313,213 310,404 2,809 Corporate 135,692 135,692 — Total $ 2,497,213 $ 2,500,321 $ (3,108) Operating income (loss) by segment: ANGI Homeservices $ 63,906 $ 58,966 $ 4,940 Vimeo (35,594) (35,281) (313) Dotdash 18,778 18,778 — Search 151,425 157,922 (6,497) Emerging & Other (26,627) (31,110) 4,483 Corporate (136,053) (136,053) — Total $ 35,835 $ 33,222 $ 2,613 Net earnings $ 292,371 $ 290,487 $ 1,884 New IAC accounts for a contract with a customer when it has approval and commitment from all parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when control of the promised services or goods is transferred to our customers and in an amount that reflects the consideration New IAC expects to be entitled to in exchange for those services or goods. Transaction Price The objective of determining the transaction price is to estimate the amount of consideration New IAC is due in exchange for its services or goods, including amounts that are variable. New IAC determines the total transaction price, including an estimate of any variable consideration, at contract inception and reassesses this estimate each reporting period. New IAC excludes from the measurement of transaction price all taxes assessed by governmental authorities that are both (i) imposed on and concurrent with a specific revenue-producing transaction and (ii) collected from customers. Accordingly, such tax amounts are not included as a component of revenue or cost of revenue. For contracts that have an original duration of one year or less, New IAC uses the practical expedient available under ASU No. 2014-09, applicable to such contracts and does not consider the time value of money. Arrangements with Multiple Performance Obligations New IAC’s contracts with customers may include multiple performance obligations. For such arrangements, New IAC allocates revenue to each performance obligation based on its relative standalone selling price. New IAC generally determines standalone selling prices based on the prices charged to customers, which are directly observable or based on an estimate if not directly observable. For our multiple performance obligation arrangements that include functional intellectual property ("IP"), which comprise the downloadable apps and software of th e Desktop business , New IAC uses a residual approach to determine standalone selling prices for the functional IP. Assets Recognized from the Costs to Obtain a Contract with a Customer New IAC has determined that certain costs, primarily commissions paid to employees pursuant to certain sales incentive programs and mobile app store fees, meet the requirements to be capitalized as a cost of obtaining a contract. Commissions paid to employees pursuant to certain sales incentive programs are amortized over the estimated customer relationship period. New IAC calculates the estimated customer relationship period as the average customer life, which is based on historical data. When customer renewals are expected and the renewal commission is not commensurate with the initial commission, the average customer life includes renewal periods. For sales incentive programs where the customer relationship period is one year or less, New IAC has elected the practical expedient to expense the costs as incurred. New IAC generally capitalizes and amortizes mobile app store fees over the term of the applicable subscription. During the years ended December 31, 2019 and 2018, New IAC recognized expense of $99.8 million and $70.6 million related to the amortization of these costs. The current contract asset balances are $43.1 million, $40.6 million and $30.9 million at December 31, 2019 and 2018, and January 1, 2018, respectively. The non-current contract asset balances are $6.2 million, $4.5 million and $4.7 million at December 31, 2019 and 2018, and January 1, 2018, respectively. The current and non-current contract assets are included in "Other current assets" and "Other non-current assets," respectively, in the accompanying combined balance sheet. Performance Obligations As permitted under the practical expedient available under ASU No. 2014-09, New IAC 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 New IAC recognizes revenue at the amount which we have the right to invoice for services performed. ANGI Homeservices ANGI revenue is primarily derived from (i) consumer connection revenue, which comprises fees paid by HomeAdvisor service professionals for consumer matches (regardless of whether the service professional ultimately provides the requested service) and fees from completed jobs sourced through the HomeAdvisor and Handy platforms, and (ii) HomeAdvisor service professional membership subscription fees. Consumer connection revenue varies based upon several factors, including the service requested, product experience offered and geographic location of service. Consumer connection revenue is generated and recognized when an in-network service professional has delivered a consumer match or when a job sourced through the HomeAdvisor and Handy platforms is completed. Service professional membership subscription revenue is initially deferred and is recognized using the straight-line method over the applicable subscription period, which is typically one year. Consumer connection revenue is generally billed one week following a consumer match, with payment due upon receipt of invoice or collected when a consumer schedules a job through the HomeAdvisor and Handy platforms. ANGI maintains revenue reserves for potential credits for services provided by Handy service professionals to consumers. ANGI revenue is also derived from (i) sales of time-based website, mobile and call center advertising to service professionals, (ii) membership subscription fees from consumers and (iii) service warranty subscription and other services. Angie's List service professionals generally pay for advertisements in advance on a monthly or annual basis at the option of the service professional, with the average advertising contract term being approximately one year. Angie's List website, mobile and call center advertising revenue is recognized ratably over the contract term. Revenue from the sale of advertising in the Angie’s List Magazine is recognized in the period in which the publication is distributed. Angie's List prepaid consumer membership subscription fees are recognized as revenue using the straight-line method over the term of the applicable subscription period, which is typically one year. Prior to January 1, 2020, Handy recorded revenue on a net basis. Effective January 1, 2020, we modified the Handy terms and conditions so that Handy, rather than the service professional, has the contractual relationship with the consumer to deliver the service and Handy, rather than the consumer, has the contractual relationship with the service professional. Consumers request services and pay for such services directly through the Handy platform and then Handy fulfills the request with independently established home services providers engaged in a trade, occupation and/or business that customarily provides such services. This change in contractual terms requires gross revenue accounting treatment effective January 1, 2020. Also, in the case of certain tasks, HomeAdvisor provides a pre-priced product offering, pursuant to which consumers can request services through a HomeAdvisor platform and pay HomeAdvisor for the services directly. HomeAdvisor then fulfills the request with independently established home services providers engaged in a trade, occupation and/or business that customarily provides such services. Revenue from HomeAdvisor’s pre-priced product offering is also recorded on a gross basis effective January 1, 2020. In addition to changing the presentation of revenue to gross from net, the timing of revenue recognition will change for pre-priced jobs and will be later than the timing of existing consumer connection revenue for HomeAdvisor because we will not be able to record revenue, generally, until the service professional completes the job on our behalf. Vimeo Vimeo revenue is derived primarily from annual and monthly SaaS subscription fees paid by subscribers for self-serve and enterprise subscription plans. Subscription revenue is recognized over the terms of the applicable subscription period, which are typically one month or one year. Dotdash Dotdash revenue consists principally of display advertising revenue and performance marketing revenue. Display advertising revenue is generated primarily through digital display advertisements sold directly by our sales team and through programmatic advertising networks. Performance marketing revenue includes affiliate commerce and performance marketing commissions. Affiliate commerce commission revenue is generated when Dotdash refers users to commerce partner websites resulting in a purchase or transaction. Performance marketing commissions are generated on a cost-per-click or cost-per-new account basis. Search Desktop revenue largely consists of advertising revenue generated principally through the display of paid listings in response to search queries. Paid listings are advertisements displayed on search results pages that generally contain a link to advertiser websites. The substantial majority of the paid listings displayed by our Desktop businesses is supplied to us by Google Inc. ("Google") pursuant to our services agreement with Google. Pursuant to this agreement, Desktop businesses that provide search services transmit search queries to Google, which in turn transmits a set of relevant and responsive paid listings back to these businesses for display in search results. This ad-serving process occurs independently of, but concurrently with, the generation of algorithmic search results for the same search queries. Google paid listings are displayed separately from algorithmic search results and are identified as sponsored listings on search results pages. Paid listings are priced on a price per click basis and when a user submits a search query through a Desktop business and then clicks on a Google paid listing displayed in response to the query, Google bills the advertiser that purchased the paid listing and shares a portion of the fee charged to the advertiser with the Desktop business. New IAC recognizes paid listing revenue from Google when it delivers the user's click. In cases where the user’s click is generated due to the efforts of a third-party distributor, we recognize the amount due from Google as revenue and record a revenue share or other payment obligation to the third-party distributor as traffic acquisition costs. To a lesser extent, Desktop revenue also includes fees related to subscription-based downloadable desktop applications as well as display advertisements. Fees related to subscription downloadable desktop applications are generally recognized over the term of the applicable subscription period, which is primarily one Ask Media Group revenue consists principally of advertising revenue generated principally through the display of paid listings in response to search queries, as well as from display advertisements appearing alongside content on its various websites and, to a lesser extent, affiliate commerce commission revenue. The majority of the paid listings displayed are supplied to us by Google in the manner, and pursuant to the services agreement with Google, described above. Revenue from display advertising is generated through advertisements sold through programmatic advertising networks. Affiliate commerce commission revenue is generated when an Ask Media Group property refers users to commerce partner websites resulting in a purchase or transaction. Emerging & Other Mosaic Group revenue consists primarily of fees related to subscription downloadable mobile applications distributed through the Apple App Store and Google Play Store, as well as display advertisements. Fees related to subscription downloadable mobile applications are recognized either over the term of the subscription period, which is up to one year, for those applications that must be connected to our servers to function, or at the time of the sale when the software is delivered. Fees related to display advertisements are recognized when an advertisement is displayed. Bluecrew revenue consists of service revenue, which is generated through staffing workers and recognized as control of the promised services is transferred to our customers. NurseFly revenue consists of subscription revenue, which is generated through recruiting agencies that seek access to qualified healthcare professionals and is recognized at the earlier of the full delivery of the promised services or the length of the subscription period. The Daily Beast revenue consists of advertising revenue, which is generated primarily through display advertisements (sold directly and through programmatic ad sales), and to a lesser extent, affiliate commerce commission revenue. Revenue of College Humor Media and IAC Films is generated primarily through media production and distribution and advertising. Production revenue is recognized when control is transferred to the customer to broadcast or exhibit, and advertising revenue is recognized when an advertisement is displayed or over the advertising period. Accounts Receivables, Net of Allowance for Doubtful Accounts and Revenue Reserves Accounts receivable include amounts billed and currently due from customers. New IAC maintains an allowance for doubtful accounts to provide for the estimated amount of accounts receivable that will not be collected. The allowance for doubtful accounts is based upon a number of factors, including the length of time accounts receivable are past due, New IAC’s previous loss history and the specific customer’s ability to pay its obligation. The time between New IAC issuance of an invoice and payment due date is not significant; customer payments that are not collected in advance of the transfer of promised services or goods are generally due no later than 30 days from invoice date. New IAC also maintains allowances to reserve for potential credits issued to consumers or other revenue adjustments. The amounts of these reserves are based primarily upon historical experience. Deferred Revenue Deferred revenue consists of advance payments that are received or are contractually due in advance of New IAC's performance. New IAC’s deferred revenue is reported on a contract by contract basis at the end of each reporting period. New IAC classifies deferred revenue as current when the term of the applicable subscription period or expected completion of our performance obligation is one year or less. The deferred revenue balance is $179.9 million, $151.8 million and $133.9 million at December 31, 2019 and 2018, and January 1, 2018, respectively. During the years ended December 31, 2019 and 2018, New IAC recognized $146.5 million and $131.9 million of revenue that was included in the deferred revenue balance as of December 31, 2018 and January 1, 2018, respectively. The current deferred revenue balances are $178.6 million and $150.1 million at December 31, 2019 and 2018, respectively. The non-current deferred revenue balances are $1.3 million and $1.7 million at December 31, 2019 and 2018, respectively. Non-current deferred revenue is included in "Other long-term liabilities" in the accompanying combined balance sheet. Cash and Cash Equivalents Cash and cash equivalents include cash and short-term investments, with maturities of less than 91 days from the date of purchase. Domestically, cash equivalents primarily consist of AAA rated government money market funds, treasury discount notes, time deposits and commercial paper rated A1/P1 or better. Internationally, cash equivalents primarily consist of AAA rated government money market funds and time deposits. Investments in Debt Securities New IAC invests in marketable debt securities with active secondary or resale markets to ensure portfolio liquidity to fund current operations or satisfy other cash requirements as needed. Marketable debt securities are adjusted to fair value each quarter, and the unrealized gains and losses, net of tax, are included in accumulated other comprehensive income (loss) as a separate component of parent's equity. The specific-identification method is used to determine the cost of debt securities sold and the amount of unrealized gains and losses reclassified out of accumulated other comprehensive income (loss) into earnings. New IAC also invests in non-marketable debt securities as part of its investment strategy. We review our debt securities for impairment each reporting period. New IAC recognizes an unrealized loss on debt securities in net earnings when the impairment is determined to be other-than-temporary. Factors we consider in making such determination include the duration, severity and reason for the decline in value and the potential recovery and our intent to sell the debt security. We also consider whether we will be required to sell the security before recovery of its amortized cost basis and whether the amortized cost basis cannot be recovered because of credit losses. If an impairment is considered to be other-than-temporary, the debt security will be written down to its fair value and the loss will be recognized within other income (expense), net. New IAC has no marketable securities at December 31, 2019. At December 31, 2018, marketable debt securities consist of treasury discount notes. Certain Risks and Concentrations Services Agreement with Google Old IAC and Google are party to a services agreement (the “Services Agreement”). If the Separation is consummated, Old IAC shall assign the Services Agreement to New IAC. A meaningful portion of New IAC's revenue is attributable to the Services Agreement. In addition, New IAC earns certain other advertising revenue from Google that is not attributable to the Services Agreement. For the years ended December 31, 2019, 2018 and 2017, total revenue earned from Google was $733.5 million, $825.2 million and $740.7 million, respectively, representing 27%, 33% and 38%, respectively, of New IAC's combined revenue. Accounts receivable related to revenue earned from Google totaled $53.0 million and $69.1 million at December 31, 2019 and 2018, respectively. Revenue attributable to the Services Agreement is earned by the Desktop business and Ask Media Group within the Search segment. For the years ended December 31, 2019, 2018 and 2017, revenue earned from the Services Agreement was $291.1 million, $426.5 million and $480.6 million, respectively, within the Desktop business and $385.9 million, $339.0 million and $203.5 million, respectively, within Ask Media Group. The current Services Agreement expires on March 31, 2020. On February 11, 2019, Old IAC 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 during September 2020 and during 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. New IAC believes that the amended agreement, taken as a whole, is comparable to Old IAC’s currently existing agreement with Google. The Services Agreement requires that New IAC comply with certain guidelines promulgated by Google. Google may generally unilaterally update its policies and guidelines without advance notice. These updates may be specific to the Services Agreement or could be more general and thereby impact New IAC as well as other companies. These policy and guideline updates 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 combined financial condition and results of operations, particularly our Desktop business and Ask Media Group. As described below, Google has made changes to the policies under the Services Agreement and has also made industry‑wide changes that have negatively impacted the Desktop business during both 2018 and 2019. Google’s policy changes related to its Chrome browser, which became effective on September 12, 2018, negatively impacted the distribution of our B2C downloadable desktop products. The resultant reduction in projected profits and revenues of this business resulted in a $27.7 million impairment of the B2C trade name, which was recorded in the fourth quarter of 2018. On May 31, 2019, Google announced industry-wide policy changes, which became effective on July 1, 2019, related to all extensions distributed through the Chrome Web Store. These industry-wide changes, combined with other changes to polices under the Services Agreement during the second half of 2019, have had a negative impact on the historical and expected future results of operations of the Desktop business. As of December 31, 2019, the goodwill balance of the Desktop reporting unit and the carrying value of the related intangible asset are $265.1 million and $28.9 million, respectively. The fair values of the Desktop reporting unit and the related intangible asset approximate their carrying values; therefore, a modest reduction in the fair values of the Desktop reporting unit or the related intangible asset would result in an impairment charge, which would be equal to the excess of the carrying value over the fair value of such assets. Credit Risk Financial instruments, which potentially subject New IAC to concentration of credit risk, consist primarily of cash and cash equivalents. Cash and cash equivalents are maintained with financial institutions and are in excess of Federal Deposit Insurance Corporation insurance limits. Other Risks New IAC's business is subject to certain risks and concentrations including dependence on third-party technology providers, exposure to risks associated with online commerce security and credit card fraud. Property and Equipment Property and equipment, including significant improvements, are recorded at cost. Repairs and maintenance costs are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, or, in the case of leasehold improvements, the lease term, if shorter. Asset Category Estimated Buildings and leasehold improvements 3 to 39 Years Capitalized software and computer equipment 2 to 3 Years Furniture and other equipment 3 to 12 Years New IAC capitalizes certain internal use software costs including external direct costs utilized in developing or obtaining the software and compensation for personnel directly associated with the development of the software. Capitalization of such costs begins when the preliminary project stage is complete and ceases when the project is substantially complete and ready for its intended purpose. The net book value of capitalized internal use software is $56.3 million and $38.6 million at December 31, 2019 and 2018, respectively. Business Combinations The purchase price of each acquisition is attributed to the assets acquired and liabilities assumed based on their fair values at the date of acquisition, including identifiable intangible assets that either arise from a contractual or legal right or are separable from goodwill. New IAC usually uses the assistance of outside valuation experts to assist in the allocation of purchase price to the identifiable intangible assets acquired. While outside valuation experts may be used, management has ultimate responsibility for the valuation methods, models and inputs used and the resulting purchase price allocation. The excess purchase price over the net tangible and identifiable intangible assets is recorded as goodwill and is assigned to the reporting unit(s) that is expected to benefit from the combination as of the acquisition date. In connection with certain business combinations, New IAC has entered into contingent consideration arrangements that are determined to be part of the purchase price. Each of these arrangements is initially recorded at its fair value at the time of the acquisition and reflected at current fair value for each subsequent reporting period thereafter until settled. Generally, our contingent consideration arrangements are based upon financial performance and/or operating metric targets. New IAC generally determines the fair value of the contingent consideration arrangements by using probability-weighted analyses to determine the amounts of the gross liability, and, if the arrangement is long-term in nature, applying a discount rate that appropriately captures the risk associated with the obligation to determine the net amount reflected in the combined financial statements. Significant changes in forecasted earnings or operating metrics would result in a significantly higher or lower fair value measurement. The changes in the remeasured fair value of the contingent consideration arrangements during each reporting period, including the accretion of the discount, if applicable, are recognized in "General and administrative expense" in the accompanying combined statement of operations. See " Note 6—Financial Instruments and Fair Value Measurements " for a discussion of contingent consideration arrangements. Goodwill and Indefinite-Lived Intangible Assets New IAC assesses goodwill and indefinite-li |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES New IAC is included within Old IAC’s tax group for purposes of federal and consolidated state income tax return filings. In all periods presented, current and deferred income tax provision/benefit have been computed for the entities comprising New IAC on an as if standalone, separate return basis. New IAC’s payments to Old IAC for its share of Old IAC’s consolidated federal and state tax return liabilities have been reflected within cash flows from operating activities in the accompanying combined statements of cash flows. U.S. and foreign (loss) earnings before income taxes and noncontrolling interests are as follows: Years Ended December 31, 2019 2018 2017 (In thousands) U.S. $ (74,360) $ 269,267 $ (141,519) Foreign 46,054 36,304 10,725 Total $ (28,306) $ 305,571 $ (130,794) The components of the income tax (benefit) provision are as follows: Years Ended December 31, 2019 2018 2017 (In thousands) Current income tax provision (benefit): Federal $ (1,117) $ (1,187) $ (29,754) State 197 1,514 2,262 Foreign 3,201 4,108 (1,175) Current income tax provision (benefit) 2,281 4,435 (28,667) Deferred income tax (benefit) provision: Federal (51,952) 20,156 (118,744) State (10,645) (7,272) (6,755) Foreign (173) (4,119) (1,236) Deferred income tax (benefit) provision (62,770) 8,765 (126,735) Income tax (benefit) provision $ (60,489) $ 13,200 $ (155,402) The tax effects of cumulative temporary differences that give rise to significant deferred tax assets and deferred tax liabilities are presented below. The valuation allowance relates to deferred tax assets for which it is more likely than not that the tax benefit will not be realized. December 31, 2019 2018 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 201,766 $ 129,500 Stock-based compensation 62,566 64,776 Long-term lease liabilities 42,486 — Tax credit carryforwards 38,066 34,065 Accrued expenses 12,911 17,577 Other 21,039 16,713 Total deferred tax assets 378,834 262,631 Less: valuation allowance (92,990) (86,778) Net deferred tax assets 285,844 175,853 Deferred tax liabilities: Investment in subsidiaries (240,420) (240,590) Right-of-use assets (29,654) — Intangible assets (28,488) (35,380) Investment in Pinterest — (23,018) Other (31,534) (14,120) Total deferred tax liabilities (330,096) (313,108) Net deferred tax liabilities $ (44,252) $ (137,255) Upon the Separation, Old IAC's consolidated federal and state tax attributes will be allocated between New IAC and New Match; these tax attributes will be allocated pursuant to the Internal Revenue Code ("IRC") and applicable state law. This allocation will result in the adjustment of New IAC’s net deferred tax liability, which is $44.3 million on an as if standalone, separate return basis to be adjusted as of the effective date of the Separation with a corresponding adjustment to additional paid-in capital. If the Separation had occurred on December 31, 2019, New IAC’s net deferred tax liability would have increased by approximately $10.1 million. The final allocation of tax attributes and resulting adjustment of New IAC’s deferred taxes will be impacted by multiple factors, including, but not limited to, the ultimate date of the Separation and the amount of taxable income or loss generated by the Old IAC consolidated tax group in 2020, the expected year of the Separation. At December 31, 2019, New IAC has federal and state net operating losses ("NOLs") of $506.3 million and $552.8 million, respectively. These NOLs have been computed on an as if standalone, separate return basis and will be adjusted upon the Separation pursuant to applicable law. If not utilized, the federal NOLs will expire at various times between 2026 and 2037, and the state NOLs, if not utilized, will expire at various times between 2022 and 2039. Federal and state NOLs of $200.9 million and $248.5 million, respectively, can be used against future taxable income without restriction and the remaining NOLs will be subject to limitations under Section 382 of the IRC, separate return limitations, and applicable law. At December 31, 2019, New IAC has foreign NOLs of $337.9 million available to offset future income. Of these foreign NOLs, $311.7 million can be carried forward indefinitely and $26.2 million will expire at various times between 2020 and 2039. During 2019, New IAC recognized tax benefits related to NOLs of $70.8 million. Included in this amount is $26.9 million of tax benefits of acquired attributes, which was recorded as a reduction to goodwill. At December 31, 2019, New IAC has tax credit carryforwards of $50.2 million. Of this amount, $34.2 million relates to credits for research activities, $13.6 million relates to credits for foreign taxes and $2.4 million relates to various other credits. Of these credit carryforwards, $12.8 million can be carried forward indefinitely and $37.4 million will expire between 2020 and 2039. New IAC regularly assesses the realizability of deferred tax assets considering all available evidence including, to the extent applicable, the nature, frequency and severity of prior cumulative losses, forecasts of future taxable income, tax filing status, the duration of statutory carryforward periods, available tax planning and historical experience. At December 31, 2019, New IAC has a U.S. gross deferred tax asset of $277.4 million that New IAC expects to fully utilize on a more likely than not basis. Of this amount, $31.5 million will be utilized upon the reversal of deferred tax liabilities and the remaining net deferred tax asset of $245.9 million will be utilized based on forecasts of future taxable income. During 2019, New IAC's valuation allowance increased by $6.2 million primarily due to an increase in foreign NOLs, partially offset by a net decrease in unbenefited capital losses. At December 31, 2019, New IAC has a valuation allowance of $93.0 million related to the portion of tax loss carryforwards, foreign tax credits and other items for which it is more likely than not that the tax benefit will not be realized. A reconciliation of the income tax (benefit) provision to the amounts computed by applying the statutory federal income tax rate to earnings before income taxes is shown as follows: Years Ended December 31, 2019 2018 2017 (In thousands) Income tax (benefit) provision at the federal statutory rate of 21% (35% for 2017) $ (5,944) $ 64,170 $ (45,778) State income taxes, net of effect of federal tax benefit (277) 5,188 (4,856) Stock-based compensation (56,871) (39,326) (75,895) Non-deductible executive compensation 7,409 2,983 123 Change in valuation allowance on capital losses (5,815) (1,280) (825) Non-deductible expenses 5,460 1,727 5,211 Research credit (5,105) (3,167) (4,593) Withholding taxes 1,008 703 510 Deferred tax adjustment for enacted changes in tax laws and rates (687) (13,646) (68,513) Foreign income taxed at a different statutory tax rate (672) (866) (6,087) Transition tax — — 46,003 Other, net 1,005 (3,286) (702) Income tax (benefit) provision $ (60,489) $ 13,200 $ (155,402) A reconciliation of the beginning and ending amount of unrecognized tax benefits, including penalties but excluding interest, is as follows: December 31, 2019 2018 2017 (In thousands) Balance at January 1 $ 15,451 $ 14,528 $ 12,766 Additions based on tax positions related to the current year 2,781 1,455 1,399 Additions for tax positions of prior years 238 235 870 Expiration of applicable statutes of limitations (410) (767) (507) Balance at December 31 $ 18,060 $ 15,451 $ 14,528 New IAC is routinely under audit by federal, state, local and foreign authorities in the area of income tax as a result of previously filed separate company and consolidated tax returns with Old IAC. 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 ("IRS") is currently auditing Old IAC’s federal income tax returns for the years ended December 31, 2010 through 2016, which includes the operations of New IAC. The statute of limitations for the years 2010 through 2012 has been extended to November 30, 2020 and the statute of limitations for the years 2013 through 2015 has been extended to December 31, 2020. Various other jurisdictions are open to examination for tax years beginning with 2009. Income taxes payable include unrecognized tax benefits that are considered to be sufficient to pay assessments that may result from the 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 New IAC, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. New IAC recognizes interest and, if applicable, penalties related to unrecognized tax benefits in the income tax provision. Included in the income tax provision for the years ended December 31, 2019, 2018 and 2017 is a $0.1 million expense for all three respective years, net of related deferred taxes of less than $0.1 million for all three respective years, for interest on unrecognized tax benefits. At December 31, 2019 and 2018, New IAC has accrued $2.3 million and $1.8 million, respectively, for the payment of interest. At both December 31, 2019 and 2018, New IAC has accrued $0.2 million for penalties. At December 31, 2019 and 2018, unrecognized tax benefits, including interest and penalties, were $20.3 million and $17.2 million, respectively. Included in unrecognized tax benefits at December 31, 2019 and 2018, is $11.6 million and $9.0 million, respectively, for tax positions included in Old IAC’s consolidated tax return filings. If unrecognized tax benefits at December 31, 2019 are subsequently recognized, $18.9 million, net of related deferred tax assets and interest, would reduce income tax expense. The comparable amount as of December 31, 2018 was $16.1 million. New IAC believes that it is reasonably possible that its unrecognized tax benefits could decrease by $10.6 million by December 31, 2019, due to expirations of statutes of limitations or other settlements; $10.3 million of which would reduce the income tax provision. On December 22, 2017, the U.S. enacted the Tax Act. The Tax Act subjected to U.S. taxation certain previously deferred earnings of foreign subsidiaries as of December 31, 2017 ("Transition Tax") and implemented a number of changes that took effect on January 1, 2018, including but not limited to, a reduction of the U.S. federal corporate tax rate from 35% to 21% and a new minimum tax on GILTI earned by foreign subsidiaries. New IAC was able to make a reasonable estimate of the Transition Tax and recorded a provisional tax expense in the fourth quarter of 2017. In 2018, New IAC finalized this calculation, which resulted in no adjustment to the Transition Tax. At December 31, 2019, all of New IAC’s international cash can be repatriated without significant tax consequences. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | BUSINESS COMBINATION Through the Combination, ANGI acquired 100% of the common stock of Angie's List on September 29, 2017 for a total purchase price valued at $781.4 million. The purchase price of $781.4 million was determined based on the sum of (i) the fair value of the 61.3 million shares of Angie's List common stock outstanding immediately prior to the Combination based on the closing stock price of Angie's List common stock on the NASDAQ on September 29, 2017 of $12.46 per share; (ii) the cash consideration of $1.9 million paid to holders of Angie's List common stock who elected to receive $8.50 in cash per share; and (iii) the fair value of vested equity awards (including the pro rata portion of unvested awards attributable to pre-combination services) outstanding under Angie's List stock plans on September 29, 2017. Each stock option to purchase shares of Angie's List common stock that was outstanding immediately prior to the effective time of the Combination was, as of the effective time of the Combination, converted into an option to purchase (i) that number of Class A shares of ANGI Homeservices equal to the total number of shares of Angie's List common stock subject to such Angie's List option immediately prior to the effective time of the Combination, (ii) at a per-share exercise price equal to the exercise price per share of Angie's List common stock at which such Angie's List option was exercisable immediately prior to the effective time of the Combination. Each award of Angie's List restricted stock units that was outstanding immediately prior to the effective time of the Combination was, as of the effective time of the Combination, converted into an ANGI Homeservices restricted stock unit award with respect to a number of Class A shares of ANGI Homeservices equal to the total number of shares of Angie's List common stock subject to such Angie's List restricted stock unit award immediately prior to the effective time of the Combination. The table below summarizes the purchase price: Angie's List (In thousands) Class A common stock $ 763,684 Cash consideration for holders who elected to receive $8.50 in cash per share of Angie's List common stock 1,913 Fair value of vested and pro rata portion of unvested stock options attributable to pre-combination services 11,749 Fair value of the pro rata portion of unvested restricted stock units attributable to pre-combination services 4,038 Total purchase price $ 781,384 The financial results of Angie's List are included in New IAC's combined financial statements, within the ANGI Homeservices segment, beginning September 29, 2017. For the year ended December 31, 2017, New IAC included $58.9 million of revenue and $21.8 million of net loss in its combined statement of operations related to Angie's List. The net loss of Angie's List reflects $28.7 million in stock-based compensation expense related to (i) the acceleration of previously issued Angie's List equity awards held by employees terminated in connection with the Combination and (ii) the expense related to previously issued Angie's List equity awards, severance and retention costs of $19.8 million related to the Combination and a reduction in revenue of $7.8 million due to the write-off of deferred revenue related to the Combination. The table below summarizes the fair values of the assets acquired and liabilities assumed at the date of Combination: Angie's List (In thousands) Cash and cash equivalents $ 44,270 Other current assets 11,280 Property and equipment 16,341 Goodwill 543,674 Intangible assets 317,300 Total assets 932,865 Deferred revenue (32,595) Other current liabilities (46,150) Long-term debt—related party (61,498) Deferred income taxes (9,833) Other long-term liabilities (1,405) Net assets acquired $ 781,384 The purchase price was based on the expected financial performance of Angie's List, not on the value of the net identifiable assets at the time of combination. This resulted in a significant portion of the purchase price being attributed to goodwill because Angie's List is complementary and synergistic to the other North America businesses of ANGI Homeservices. The fair values of the identifiable intangible assets acquired at the date of Combination are as follows: Angie's List (In thousands) Weighted-Average Useful Life Indefinite-lived trade name and trademarks $ 137,000 Indefinite Service professionals 90,500 3 Developed technology 63,900 6 Memberships 15,900 3 User base 10,000 1 Total identifiable intangible assets acquired $ 317,300 Other current assets, current liabilities and other long-term liabilities of Angie's List were reviewed and adjusted to their fair values at the date of combination, as necessary. The fair value of deferred revenue was determined using an income approach that utilized a cost to fulfill analysis. The fair value of the trade name and trademarks was determined using an income approach that utilized the relief from royalty methodology. The fair values of developed technology and user base were determined using a cost approach that utilized the cost to replace methodology. The fair values of the service professionals and memberships were determined using an income approach that utilized the excess earnings methodology. The valuations of deferred revenue and intangible assets incorporate significant unobservable inputs and require significant judgment and estimates, including the amount and timing of future cash flows, cost and profit margins related to deferred revenue and the determination of royalty and discount rates. The amount attributed to goodwill is not tax deductible. Unaudited Pro Forma Financial Information The unaudited pro forma financial information in the table below presents the combined results of New IAC and Angie's List as if the Combination had occurred on January 1, 2016. The unaudited pro forma financial information includes adjustments required under the acquisition method of accounting and is presented for informational purposes only and is not necessarily indicative of the results that would have been achieved had the Combination actually occurred on January 1, 2016. For the year ended December 31, 2017, pro forma adjustments include (i) reductions in stock-based compensation expense of $77.1 million and transaction related costs of $34.1 million because they are one-time in nature and will not have a continuing impact on operations; and (ii) an increase in amortization of intangibles of $31.9 million. The stock-based compensation expense is related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination, and the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination. The transaction related costs include severance and retention costs of $19.8 million related to the Combination. Year Ended December 31, 2017 (In thousands) Revenue $ 2,174,968 Net earnings attributable to Old IAC equity in IAC Holdings, Inc. $ 96,578 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETSGoodwill and intangible assets, net are as follows: December 31, 2019 2018 (In thousands) Goodwill $ 1,616,867 $ 1,484,117 Intangible assets with indefinite lives 225,296 227,420 Intangible assets with definite lives, net of accumulated amortization 124,854 166,362 Total goodwill and intangible assets, net $ 1,967,017 $ 1,877,899 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 Additions (Deductions) Impairment Foreign Balance at (In thousands) ANGI Homeservices $ 895,071 $ 18,326 $ (29,293) $ — $ 192 $ 884,296 Vimeo 77,152 142,222 — — — 219,374 Search 265,146 — — — — 265,146 Emerging & Other 246,748 4,765 — (3,318) (144) 248,051 Total $ 1,484,117 $ 165,313 $ (29,293) $ (3,318) $ 48 $ 1,616,867 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, New IAC 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 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, 2018: Balance at Additions (Deductions) Impairment Foreign Balance at (In thousands) ANGI Homeservices $ 770,664 $ 142,768 $ (14,449) $ — $ (3,912) $ 895,071 Vimeo 77,303 — (151) — — 77,152 Search 265,146 — — — — 265,146 Emerging & Other 200,401 54,468 (7,664) — (457) 246,748 Total $ 1,313,514 $ 197,236 $ (22,264) $ — $ (4,369) $ 1,484,117 Additions primarily relate to the acquisitions of Handy (included in the ANGI Homeservices segment), TelTech, iTranslate and Bluecrew (included in the Emerging & Other segment). Deductions relate to the sales of Felix (included in the ANGI Homeservices segment) and Electus (included in the Emerging & Other segment). Prior to the fourth quarter of 2018, IAC Publishing was a reportable segment consisting of one operating segment and one reporting unit. In the fourth quarter of 2018, IAC Publishing was split into the Dotdash, Ask Media Group (included in the Search segment) and Emerging & Other segments (related to the remaining businesses previously included in the IAC Publishing segment). The accumulated goodwill impairment of IAC Publishing was allocated to these businesses based upon their relative fair values as of October 1, 2018. The December 31, 2019 and 2018 goodwill balances reflect accumulated impairment losses of $716.2 million and $198.3 million at Search and Dotdash, respectively. The December 31, 2019 and 2018 goodwill balances also reflect accumulated impairment losses of $14.9 million and $11.6 million, respectively, at College Humor Media (included in the Emerging & Other segment). Intangible assets with indefinite lives are trade names and trademarks acquired in various acquisitions. At December 31, 2019 and 2018, intangible assets with definite lives are as follows: December 31, 2019 Gross Accumulated Net Weighted-Average (In thousands) Technology $ 143,255 $ (73,483) $ 69,772 4.5 Service professional relationships 99,651 (76,445) 23,206 2.9 Customer lists and user base 44,286 (24,226) 20,060 3.3 Memberships 15,900 (11,940) 3,960 3.0 Trade names 12,777 (8,082) 4,695 3.5 Other 10,439 (7,278) 3,161 3.4 Total $ 326,308 $ (201,454) $ 124,854 3.7 December 31, 2018 Gross Accumulated Net Weighted-Average (In thousands) Technology $ 132,588 $ (48,339) $ 84,249 4.6 Service professional relationships 99,528 (44,674) 54,854 2.9 Customer lists and user base 29,829 (14,857) 14,972 2.9 Memberships 15,900 (6,640) 9,260 3.0 Trade names 7,579 (4,579) 3,000 3.9 Other 5,500 (5,473) 27 4.6 Total $ 290,924 $ (124,562) $ 166,362 3.7 At December 31, 2019, amortization of intangible assets with definite lives for each of the next five years and thereafter is estimated to be as follows: Years Ending December 31, (In thousands) 2020 $ 61,792 2021 26,108 2022 21,830 2023 12,306 2024 1,316 Thereafter 1,502 Total $ 124,854 |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Marketable Securities New IAC did not hold any marketable securities at December 31, 2019. At December 31, 2018, the fair values of marketable securities are as follows: Year Ended December 31, 2018 (In thousands) Available-for-sale marketable debt securities $ 24,947 Marketable equity security 419 Total marketable securities $ 25,366 At December 31, 2018, current available-for-sale marketable debt securities are as follows: Amortized Gross Gross Fair Value (In thousands) Treasury discount notes $ 24,947 $ 1 $ (1) $ 24,947 Total available-for-sale marketable debt securities $ 24,947 $ 1 $ (1) $ 24,947 There were 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 December 31, 2018. For the years ended December 31, 2019 and 2018, proceeds from maturities of available-for-sale marketable debt securities were $25.0 million and $35.0 million, respectively. There were no gross realized gains or losses from the maturities of available-for-sale marketable debt securities for the years ended December 31, 2019 and 2018. Long-term Investments Long-term investments consist of: December 31, 2019 2018 (In thousands) Equity securities without readily determinable fair values $ 347,975 $ 225,979 Total long-term investments $ 347,975 $ 225,979 Equity Securities without Readily Determinable Fair Values In the third quarter of 2019, New IAC made a $250 million investment in Turo, a peer-to-peer car sharing marketplace. As part of its investment, New IAC received a warrant that is net settleable at New IAC's option and is recorded at fair value each reporting period with any change included in "Other income, net" in the accompany combined statement of operations. The warrant is measured using significant unobservable inputs and is classified in the fair value hierarchy table below as Level 3. The warrant is included in "Other non-current assets" in the accompanying combined balance sheet. New IAC had an investment in Pinterest, which was carried at fair value following the initial public offering of Pinterest in April 2019. Prior to this, New IAC accounted for its investment in Pinterest as an equity security without a readily determinable fair value. New IAC sold its remaining shares in Pinterest during the fourth quarter of 2019. For the year ended December 31, 2019, New IAC recognized a net gain of $20.5 million related to its investment in Pinterest, which is included in "Other income, net" in the accompanying combined statement of operations. The following table presents a summary of realized and unrealized gains and losses recorded in "Other income, net", as adjustments to the carrying value of equity securities without readily determinable fair values held as of December 31, 2019 and 2018. Years Ended December 31, 2019 2018 (In thousands) Upward adjustments (gross unrealized gains) $ 19,698 $ 128,786 Downward adjustments including impairments (gross unrealized losses) (1,193) (2,838) Total $ 18,505 $ 125,948 The cumulative upward and downward adjustments (including impairments) to the carrying value of equity securities without readily determinable fair values held at December 31, 2019 were $19.7 million and $0.9 million, respectively. Realized and unrealized gains and losses for New IAC's marketable equity security and investments without readily determinable fair values for the years ended December 31, 2019 and 2018 are as follows: Years Ended December 31, 2018 2019 2018 (In thousands) Realized gains, net, for equity securities sold $ 22,880 $ 27,366 Unrealized gains, net, on equity securities held 18,505 126,063 Total gains, net, recognized in other income, net $ 41,385 $ 153,429 Equity Method Investments In 2018 and 2017, New IAC recorded other-than-temporary impairment charges on certain of its investments of $0.6 million and $2.7 million, respectively. These charges are included in "Other income, net" in the accompanying combined statement of operations. Cost Method Investments (Prior to the Adoption of ASU No. 2016-01) In 2017, New IAC recorded $7.2 million of other-than-temporary impairment charges for certain of its investments as a result of our assessment of the near-term prospects and financial condition of the investees. This charge is included in "Other income, net" in the accompanying combined statement of operations. Fair Value Measurements The following tables present New IAC's financial instruments that are measured at fair value on a recurring basis: December 31, 2019 Quoted Market Significant Significant Total (In thousands) Assets: Cash equivalents: Money market funds $ 699,589 $ — $ — $ 699,589 Time deposits — 23,075 — 23,075 Other non-current assets: Warrant — — 8,495 8,495 Total $ 699,589 $ 23,075 $ 8,495 $ 731,159 Liabilities: Contingent consideration arrangements $ — $ — $ (6,918) $ (6,918) December 31, 2018 Quoted Market Significant Significant Total (In thousands) Assets: Cash equivalents: Money market funds $ 616,077 $ — $ — $ 616,077 Treasury discount notes — 99,914 — 99,914 Commercial paper — 52,931 — 52,931 Time deposits — 15,036 — 15,036 Marketable securities: Treasury discount notes — 24,947 — 24,947 Marketable equity security 419 — — 419 Total $ 616,496 $ 192,828 $ — $ 809,324 Liabilities: Contingent consideration arrangements $ — $ — $ (26,657) $ (26,657) The following table presents the changes in New IAC's financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Years Ended December 31, 2019 2018 Warrant Contingent Consideration Arrangements Contingent Consideration Arrangements (In thousands) Balance at January 1 $ — $ (26,657) $ — Fair value at date of acquisition 17,618 — (25,521) Total net (losses) gains: Included in earnings: Fair value adjustments (9,123) 19,739 (1,136) Balance at December 31 $ 8,495 $ (6,918) $ (26,657) Contingent Consideration Arrangements At December 31, 2019, New IAC has one outstanding contingent consideration arrangement related to a business acquisition. The arrangement has a total maximum contingent payment of $45.0 million. At December 31, 2019, the gross fair value of this arrangement, before unamortized discount, is $12.5 million. Generally, our contingent consideration arrangements are based upon financial performance and/or operating metric targets and New IAC generally determines the fair value of the contingent consideration arrangements by using probability-weighted analyses to determine the amounts of the gross liability, and, if the arrangements are 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 combined financial statements. The fair value of the contingent consideration arrangement at both December 31, 2019 and 2018 reflects a discount rate of 25%. The fair value of contingent consideration arrangements is sensitive to changes in the expected achievement of the applicable targets and changes in discount rates. New IAC 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 combined statement of operations. At December 31, 2019 and 2018, the contingent consideration arrangement liability is $6.9 million and $26.7 million, respectively. These amounts are included in "Other long-term liabilities" in the accompanying combined balance sheet. 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: December 31, 2019 December 31, 2018 Carrying Fair Carrying Fair (In thousands) Notes receivable—related party, current $ 55,251 $ 55,251 $ — $ — Current portion of long-term debt $ (13,750) $ (13,681) $ (13,750) $ (12,753) Long-term debt, net (a) $ (231,946) $ (232,581) $ (244,971) $ (229,556) Long-term debt—related party $ — $ — $ (2,500) $ (2,529) _________________ (a) At December 31, 2019 and 2018, the carrying value of long-term debt, net includes unamortized debt issuance costs of $1.8 million and $2.5 million, respectively . |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consists of: December 31, 2019 2018 (In thousands) ANGI Term Loan due November 5, 2023 $ 247,500 $ 261,250 Less: current portion of ANGI Term Loan 13,750 13,750 Less: unamortized debt issuance costs 1,804 2,529 Total long-term debt, net $ 231,946 $ 244,971 ANGI Term Loan and ANGI Credit Facility On November 1, 2017, ANGI borrowed $275 million under a five-year term loan facility ("ANGI Term Loan"). On November 5, 2018, the ANGI Term Loan was amended and restated, and is now due on November 5, 2023. At both December 31, 2019 and 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 3.25% and 3.98% at December 31, 2019 and 2018, respectively. 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 December 31, 2019 and 2018, there were no outstanding borrowings under the ANGI Credit Facility. The annual commitment fee on undrawn funds is based on the consolidated net leverage ratio most recently reported and is 25 basis points at both December 31, 2019 and 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 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 Group Credit Facility On October 2, 2017, IAC Group, LLC ("IAC Group") entered into a joinder agreement by and among IAC Group, Old IAC, and each of the other parties to the IAC Credit Facility. Pursuant to the joinder agreement, IAC Group became the successor borrower under the IAC Credit Facility and Old IAC's obligations under the credit agreement were terminated. IAC Group is included within these combined financial statements and will become a subsidiary of New IAC upon the consummation of the Separation. At December 31, 2019, IAC Group has a $250 million revolving credit facility (the "IAC Group Credit Facility"), that expires on November 5, 2023. At December 31, 2019 and 2018, there were no outstanding borrowings under the IAC Group 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 December 31, 2019 and 2018. Borrowings under the IAC Group Credit Facility bear interest, at IAC Group's option, at a base rate or LIBOR, in each case, plus an applicable margin, which is based on IAC Group's consolidated net leverage ratio. The terms of the IAC Group Credit Facility require that IAC Group maintains a consolidated net leverage ratio of not more than 3.25 to 1.0 before the date on which IAC Group no longer holds majority of the outstanding voting stock of ANGI ("Trigger Date") and no greater than 2.75 to 1.0 on or after the Trigger Date. The terms of the IAC Group Credit Facility also restrict IAC Group's ability to incur additional indebtedness. Borrowings under the IAC Group Credit Facility are unconditionally guaranteed by certain of our wholly-owned domestic subsidiaries and are also secured by the stock of certain of our domestic and foreign subsidiaries, including the shares of Match Group and ANGI owned by IAC Group. Following the Separation, Match Group will no longer secure the IAC Group Credit Facility. Maturities of long-term debt liabilities as of December 31, 2019 (in thousands): Years Ending December 31, 2020 $ 13,750 2021 13,750 2022 27,500 2023 192,500 Total 247,500 Less: current portion of long-term debt 13,750 Less: unamortized debt issuance costs 1,804 Total long-term debt, net $ 231,946 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 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: Year Ended December 31, 2019 Foreign Currency Translation Adjustment Unrealized Gains On Available-For-Sale Marketable Debt Securities Accumulated Other Comprehensive (Loss) Income (In thousands) Balance at January 1 $ (12,543) $ 2 $ (12,541) Other comprehensive income (loss) 337 (2) 335 Net current period other comprehensive income (loss) 337 (2) 335 Allocation of accumulated other comprehensive loss related to the noncontrolling interests (20) — (20) Balance at December 31 $ (12,226) $ — $ (12,226) Year Ended December 31, 2018 Foreign Currency Translation Adjustment Unrealized Gains On Available-For-Sale Marketable Debt Securities Accumulated Other Comprehensive Loss (In thousands) Balance at January 1 $ (7,504) $ — $ (7,504) Other comprehensive (loss) income before reclassifications (4,976) 2 (4,974) Amounts reclassified to earnings (52) — (52) Net current period other comprehensive (loss) income (5,028) 2 (5,026) Allocation of accumulated other comprehensive loss related to noncontrolling interests (11) — (11) Balance at December 31 $ (12,543) $ 2 $ (12,541) Year Ended December 31, 2017 Foreign Currency Translation Adjustment Accumulated Other Comprehensive (Loss) Income (In thousands) Balance at January 1 $ (21,864) $ (21,864) Other comprehensive income before reclassifications 14,408 14,408 Amounts reclassified to earnings (41) (41) Net current period other comprehensive income 14,367 14,367 Allocation of accumulated other comprehensive loss related to noncontrolling interests (7) (7) Balance at December 31 $ (7,504) $ (7,504) The amounts reclassified out of foreign currency translation adjustment into earnings for the years ended December 31, 2018 and 2017 relate to the liquidation of international subsidiaries. At December 31, 2019, 2018 and 2017, there was no tax benefit of provision on the accumulated other comprehensive loss. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The equity awards described below principally relate to awards issued by certain of our subsidiaries (including awards assumed in acquisitions, including the Combination) and an allocation of expense from Old IAC related to awards issued to New IAC employees that were granted under various Old IAC stock and annual incentive plans. The form of awards granted to New IAC employees are principally stock options, restricted stock units ("RSUs"), including those that are linked to the achievement of Old IAC's stock price, known as market-based awards ("MSUs") and those that are linked to the achievement of a performance target, known as performance-based awards ("PSUs"). The amount of stock-based compensation expense recognized in the combined statement of operations is net of estimated forfeitures. The forfeiture rate is estimated at the grant date based on historical experience and revised, if necessary, in subsequent periods if actual forfeitures differ from the estimated rate. The expense ultimately recorded is for the awards that vest. At December 31, 2019, there is $158.3 million of unrecognized compensation cost, net of estimated forfeitures, related to all equity-based awards, which is expected to be recognized over a weighted average period of approximately 2.2 years. The total income tax benefit recognized in the accompanying combined statement of operations for the years ended December 31, 2019, 2018 and 2017 related to all stock-based compensation is $82.4 million, $80.7 million and $124.2 million, respectively. The aggregate income tax benefit recognized related to the exercise of stock options for the years ended December 31, 2019, 2018 and 2017, is $64.2 million, $63.6 million and $95.1 million, respectively. As New IAC is currently in an NOL position, there will be some delay in the timing of the realization of the cash benefit of the income tax deductions related to stock-based compensation because it will be dependent upon the amount and timing of future taxable income and the timing of estimated income tax payments. Old IAC Denominated Stock Options The fair value of stock option awards, with the exception of market-based awards, is estimated on the grant date using the Black-Scholes option pricing model. The grant date fair value of market-based awards is estimated using a lattice model that incorporates a Monte Carlo simulation of Old IAC's stock price. Broad-based stock option awards issued to date have generally vested in equal annual installments over a 4-year period from the grant date. The aggregate intrinsic value, calculated as the difference between Old IAC's closing stock price on the last trading day of 2019 and the exercise price, multiplied by the number of in-the-money awards that would have been exercised had all award holders exercised their awards, on December 31, 2019 is $871.8 million. In connection with the Separation, Old IAC denominated stock options that are outstanding as of December 19, 2019, and immediately prior to the completion of the Transactions, will be converted into stock options to purchase common stock of New IAC and stock options to purchase New Match common stock in a manner that preserves the spread value of the stock options immediately before and immediately after the adjustment, with the allocation between the two stock options based on the value of a share of New IAC common stock relative to the value of a share of New Match common stock multiplied by the Reclassification Exchange Ratio. Old IAC denominated stock options that are granted on or after December 20, 2019 and outstanding immediately prior to the completion of the Transactions, will be converted into stock options to purchase New IAC common stock on the same terms and conditions applicable to the existing equity award, with equitable adjustments to the number of shares of New IAC common stock covered by the option and the applicable option exercise price. Assuming all stock options outstanding on December 31, 2019, were net settled on that date, withholding taxes, which will be paid by Old IAC for periods prior to the Separation and New IAC and New Match for periods subsequent to the Separation on behalf of the employees upon exercise, would have been $435.9 million in aggregate (of which $345.8 million is related to vested stock options and $90.1 million is related to unvested stock options) assuming a 50% withholding rate. Old IAC Denominated Restricted Stock Units, Market-based Stock Units and Performance-based Stock Units RSUs, MSUs and PSUs are awards in the form of phantom shares or units denominated in a hypothetical equivalent number of shares of Old IAC common stock and with the value of each RSU and PSU equal to the fair value of Old IAC common stock at the date of grant. The value of each MSU is estimated using a lattice model that incorporates a Monte Carlo simulation of Old IAC's stock price. Each RSU and PSU grant is subject to service-based vesting, where a specific period of continued employment must pass before an award vests. PSUs also include performance-based vesting, where certain performance targets set at the time of grant must be achieved before an award vests. The vesting of MSUs is tied to the stock price of Old IAC. For RSU grants, the expense is measured at the grant date as the fair value of Old IAC common stock and expensed as stock-based compensation over the vesting term. MSU grants are expensed over the shorter of the vesting period or the derived service period. For PSU grants, the expense is measured at the grant date as the fair value of Old IAC common stock and expensed as stock-based compensation over the vesting term if the performance targets are considered probable of being achieved. RSUs currently outstanding generally vest in either equal annual installments over a four-year period or cliff-vest after a three-year period, in each case, from the grant date. MSUs currently outstanding cliff-vest after the market condition has been met either within a three-year or five-year period from the date of grant. The aggregate intrinsic value of all RSUs and MSUs outstanding on December 31, 2019 is $91.6 million; assuming these awards were net settled on December 31, 2019, the withholding taxes that would be payable, which will be paid by Old IAC for periods prior to the Separation and New IAC for periods subsequent to the Separation on behalf of the employees upon net settlement would be $45.8 million, assuming a 50% withholding rate, and Old IAC would have issued 0.2 million common shares. There were no PSUs outstanding on December 31, 2019. Equity Instruments Denominated in the Shares of Certain Subsidiaries ANGI In connection with the Combination, previously issued stock appreciation rights related to the common stock of HomeAdvisor (US) were converted into ANGI stock appreciation rights that are settleable, at ANGI's option, on a net basis with ANGI remitting withholding taxes on behalf of the employee or on a gross basis with ANGI issuing a sufficient number of Class A shares to cover the withholding taxes. While these awards can be settled in either Class A shares of ANGI or shares of Old IAC common stock at Old IAC’s option, these awards are currently being settled in shares of ANGI. The aggregate intrinsic value of these awards outstanding at December 31, 2019 is $114.6 million; assuming these awards were net settled on December 31, 2019, the withholding taxes that would be payable is $57.3 million, assuming a 50% withholding rate, and ANGI would have issued 6.8 million Class A shares. The aggregate intrinsic value of all other ANGI equity awards, including stock options, RSUs and subsidiary denominated equity at December 31, 2019 is $86.8 million; assuming these awards were net settled on December 31, 2019, the withholding taxes that would be payable is $43.4 million, assuming a 50% withholding rate, and ANGI would have issued 5.1 million Class A shares. Prior to the Separation, certain ANGI equity awards could be settled either in Old IAC common shares or the common shares of ANGI at Old IAC's election. If settled in Old IAC common stock, ANGI reimbursed Old IAC in either cash or through the issuance of Class A shares to Old IAC. Subsequent to the Separation, this right shall be assigned to New IAC. Prior to the Combination in 2017, Old IAC issued a number of Old IAC denominated PSUs to certain ANGI employees. Vesting of the PSUs was contingent upon ANGI's performance for the year ended December 31, 2019. These awards did not vest because the performance conditions were not achieved. Non-publicly-traded Subsidiaries Historically, Old IAC has granted stock settled stock appreciation rights to employees and management that are denominated in the equity of certain non-publicly traded subsidiaries comprising New IAC. These equity awards vest over a period of years or upon the occurrence of certain prescribed events. The value of the stock settled stock appreciation rights is tied to the value of the common stock of these subsidiaries. Accordingly, these interests only have value to the extent the relevant business appreciates in value above the initial value utilized to determine the exercise price. These interests can have significant value in the event of significant appreciation. The fair value of these interest is generally determined by negotiation or arbitration, when settled; which will occur at various dates through 2026. Prior to the Separation, these equity awards have been and will be settled on a net basis, with the award holder entitled to receive Old IAC shares equal to the intrinsic value of the award upon settlement less an amount equal to the required cash tax withholding payment, which has been and will be paid by Old IAC. Subsequent to the Separation, these equity awards will continue to be settled on a net basis, with the award holder entitled to receive New IAC shares rather than Old IAC shares equal to the intrinsic value of the award upon settlement less an amount equal to the required cash tax withholding payment, which will be paid by New IAC. The expense associated with these equity awards is initially measured at fair value at the grant date and is expensed as stock-based compensation over the vesting term. The aggregate intrinsic value of these awards outstanding at December 31, 2019 is $40.5 million; assuming these awards were net settled on December 31, 2019, the withholding taxes that would be payable is $20.2 million, assuming a 50% withholding rate, and Old IAC would have issued 0.1 million common shares. To the extent these awards are settled subsequent to the Separation, the number of New IAC shares ultimately needed to settle these awards and the cash withholding tax obligation may vary significantly as a result of the determination of the fair value of the relevant subsidiary. In addition, the number of New IAC shares required to settle these awards will be impacted by movement in New IAC’s stock price. Modification of Awards During 2019, New IAC modified certain equity awards and recognized modification charges of $13.1 million. During 2018, New IAC modified certain equity awards and recognized modification charges of $7.9 million. In addition, in connection with the ANGI chief executive officer transition during the fourth quarter of 2018, ANGI accelerated $3.9 million of expense into 2018 from 2019. In connection with the Combination, the previously issued HomeAdvisor (US) stock appreciation rights were converted into ANGI equity awards resulting in a modification charge of $217.7 million of which $29.0 million, $56.9 million and $93.4 million were recognized as stock-based compensation expense in the years ended December 31, 2019, 2018 and 2017, respectively, and the remaining charge will be recognized over the vesting period of the modified awards. During the second quarter of 2017, New IAC modified certain HomeAdvisor (US) denominated equity awards and recognized a modification charge of $6.6 million. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The overall concept that New IAC employs in determining its operating segments is to present the financial information in a manner consistent with: how the chief operating decision maker views the businesses; how the businesses are organized as to segment management; and the focus of the businesses with regards to the types of services or products offered or the target market. Operating segments are combined for reporting purposes if they meet certain aggregation criteria, which principally relate to the similarity of their economic characteristics 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: Years Ended December 31, 2019 2018 2017 (In thousands) Revenue: ANGI Homeservices $ 1,326,205 $ 1,132,241 $ 736,386 Vimeo 196,015 159,641 103,332 Dotdash 167,594 130,991 90,890 Search 742,184 823,950 738,474 Emerging & Other 274,107 286,586 284,132 Inter-segment elimination (304) (361) (607) Total $ 2,705,801 $ 2,533,048 $ 1,952,607 The following table presents the revenue of New IAC's segments disaggregated by type of service: Years Ended December 31, 2019 2018 2017 (In thousands) ANGI Homeservices Marketplace: Consumer connection revenue $ 913,533 $ 704,341 $ 521,481 Service professional membership subscription revenue 64,706 66,214 56,135 Other revenue 6,971 3,940 3,798 Total Marketplace revenue 985,210 774,495 581,414 Advertising and other revenue 264,682 287,676 97,483 Total North America revenue 1,249,892 1,062,171 678,897 Consumer connection revenue 59,611 50,913 40,009 Service professional membership subscription revenue 14,231 17,362 16,596 Advertising and other revenue 2,471 1,795 884 Total Europe revenue 76,313 70,070 57,489 Total ANGI Homeservices revenue $ 1,326,205 $ 1,132,241 $ 736,386 Vimeo Platform revenue $ 193,736 $ 146,665 $ 99,650 Hardware revenue 2,279 12,976 3,682 Total Vimeo revenue $ 196,015 $ 159,641 $ 103,332 Dotdash Display advertising revenue $ 126,487 $ 103,704 $ 76,316 Performance marketing revenue 41,107 27,287 14,574 Total Dotdash revenue $ 167,594 $ 130,991 $ 90,890 Search Advertising revenue: Google advertising revenue $ 678,438 $ 770,494 $ 689,633 Non-Google advertising revenue 47,556 31,975 13,553 Total advertising revenue 725,994 802,469 703,186 Other revenue 16,190 21,481 35,288 Total Search revenue $ 742,184 $ 823,950 $ 738,474 Emerging & Other Subscription revenue $ 194,362 $ 102,592 $ 25,554 Marketplace revenue 38,950 19,665 — Service revenue 3,881 22,142 27,465 Advertising revenue: Non-Google advertising revenue 23,372 64,319 74,990 Google advertising revenue 4,486 14,393 16,716 Total advertising revenue 27,858 78,712 91,706 Media production and distribution revenue 8,897 61,717 138,006 Other revenue 159 1,758 1,401 Total Emerging & Other revenue $ 274,107 $ 286,586 $ 284,132 Revenue by geography is based on where the customer is located. Geographic information about revenue and long-lived assets is presented below: Years Ended December 31, 2019 2018 2017 (In thousands) Revenue: United States $ 2,097,743 $ 1,951,957 $ 1,569,275 All other countries 608,058 581,091 383,332 Total $ 2,705,801 $ 2,533,048 $ 1,952,607 December 31, 2019 2018 (In thousands) Long-lived assets (excluding goodwill and intangible assets): United States $ 297,433 $ 254,751 All other countries 7,981 5,697 Total $ 305,414 $ 260,448 The following tables present operating income (loss) and Adjusted EBITDA by reportable segment: Years Ended December 31, 2019 2018 2017 (In thousands) Operating income (loss): ANGI Homeservices $ 38,645 $ 63,906 $ (149,176) Vimeo (51,921) (35,594) (27,328) Dotdash 29,021 18,778 (15,694) Search 122,347 151,425 153,986 Emerging & Other (21,790) (26,627) (780) Corporate (166,751) (136,053) (125,640) Total $ (50,449) $ 35,835 $ (164,632) Years Ended December 31, 2019 2018 2017 (In thousands) Adjusted EBITDA: (a) ANGI Homeservices $ 202,297 $ 247,506 $ 37,858 Vimeo $ (41,790) $ (28,045) $ (23,607) Dotdash $ 39,601 $ 21,384 $ (2,763) Search $ 124,163 $ 182,905 $ 162,023 Emerging & Other $ (28,368) $ (14,889) $ 2,124 Corporate $ (88,617) $ (74,011) $ (67,748) _______________________________________________________________________________ (a) New IAC'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. New IAC 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. 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 New IAC's reportable segments and net earnings attributable to Old IAC equity in IAC Holdings, Inc. to Adjusted EBITDA: Year Ended December 31, 2019 Operating Stock-Based Depreciation Amortization Goodwill Impairment Acquisition-related Contingent Consideration Fair Value Adjustments Adjusted EBITDA (In thousands) ANGI Homeservices $ 38,645 $ 68,255 $ 39,915 $ 55,482 $ — $ — $ 202,297 Vimeo (51,921) $ — $ 478 $ 9,653 $ — $ — $ (41,790) Dotdash 29,021 $ — $ 974 $ 9,606 $ — $ — $ 39,601 Search 122,347 $ — $ 1,816 $ — $ — $ — $ 124,163 Emerging & Other (21,790) $ — $ 715 $ 9,127 $ 3,318 $ (19,738) $ (28,368) Corporate (166,751) $ 66,083 $ 12,051 $ — $ — $ — $ (88,617) Total (50,449) Interest expense—third party (11,904) Interest income, net—related party 420 Other income, net 33,627 Loss before income taxes (28,306) Income tax benefit 60,489 Net earnings 32,183 Net earnings attributable to noncontrolling interests (9,288) Net earnings attributable to Old IAC equity in IAC Holdings, Inc. $ 22,895 Year Ended December 31, 2018 Operating Stock-Based Depreciation Amortization Acquisition-related Contingent Consideration Fair Value Adjustments Adjusted EBITDA (In thousands) ANGI Homeservices $ 63,906 $ 97,078 $ 24,310 $ 62,212 $ — $ 247,506 Vimeo (35,594) $ — $ 1,200 $ 6,349 $ — $ (28,045) Dotdash 18,778 $ — $ 969 $ 1,637 $ — $ 21,384 Search 151,425 $ — $ 3,311 $ 28,169 $ — $ 182,905 Emerging & Other (26,627) $ 919 $ 969 $ 8,714 $ 1,136 $ (14,889) Corporate (136,053) $ 50,408 $ 11,634 $ — $ — $ (74,011) Total 35,835 Interest expense—third party (13,059) Interest income, net—related party 325 Other income, net 282,470 Earnings before income taxes 305,571 Income tax provision (13,200) Net earnings 292,371 Net earnings attributable to noncontrolling interests (45,599) Net earnings attributable to Old IAC equity in IAC Holdings, Inc. $ 246,772 Year Ended December 31, 2017 Operating Stock-Based Depreciation Amortization Acquisition-related Contingent Consideration Fair Value Adjustments Adjusted EBITDA (In thousands) ANGI Homeservices $ (149,176) $ 149,230 $ 14,543 $ 23,261 $ — $ 37,858 Vimeo (27,328) $ — $ 1,408 $ 2,313 $ — $ (23,607) Dotdash (15,694) $ — $ 2,255 $ 10,676 $ — $ (2,763) Search 153,986 $ — $ 6,026 $ 2,011 $ — $ 162,023 Emerging & Other (780) $ 401 $ 1,066 $ 889 $ 548 $ 2,124 Corporate (125,640) $ 42,374 $ 15,518 $ — $ — $ (67,748) Total (164,632) Interest expense—third party (2,181) Interest income, net—related party 23,656 Other income, net 12,363 Loss before income taxes (130,794) Income tax benefit 155,402 Net earnings 24,608 Net loss attributable to noncontrolling interests 12,398 Net earnings attributable to Old IAC equity in IAC Holdings, Inc. $ 37,006 The following table presents capital expenditures by reportable segment: Years Ended December 31, 2019 2018 2017 (In thousands) Capital expenditures: ANGI Homeservices $ 68,804 $ 46,976 $ 26,837 Vimeo 2,801 209 109 Dotdash — 102 825 Search 43 479 251 Emerging & Other 387 751 291 Corporate 25,863 6,163 17,840 Total $ 97,898 $ 54,680 $ 46,153 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES New IAC 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. ROU assets represent New IAC’s right to use the underlying assets for the lease term and lease liabilities represent the present value of New IAC’s obligation to make payments arising from these leases. ROU assets and related lease liabilities are based on the present value of fixed lease payments over the lease term using New IAC's and its publicly-traded subsidiary respective incremental borrowing rates on the lease commencement date or January 1, 2019 for leases that commenced prior to that date. New IAC 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 New IAC will exercise the option(s). Lease expense is recognized on a straight-line basis over the term of the lease. As permitted by ASC 842, leases with an initial term of twelve months or less ("short-term leases") are not recorded on the accompanying combined balance sheet. 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. New IAC’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leases Balance Sheet Classification December 31, 2019 (In thousands) Assets: Right-of-use assets Right-of-use assets, net $ 138,608 Liabilities: Current lease liabilities Accrued expenses and other current liabilities $ 23,188 Long-term lease liabilities Other long-term liabilities 168,321 Total lease liabilities $ 191,509 Lease Expense Income Statement Classification Year Ended December 31, 2019 (In thousands) Fixed lease expense Cost of revenue $ 547 Fixed lease expense Selling and marketing expense 10,613 Fixed lease expense General and administrative expense 17,751 Fixed lease expense Product development expense 1,502 Total fixed lease expense (a) 30,413 Variable lease expense Cost of revenue 83 Variable lease expense Selling and marketing expense 1,573 Variable lease expense General and administrative expense 5,729 Variable lease expense Product development expense 391 Total variable lease expense 7,776 Net lease expense $ 38,189 _____________________ (a) Includes approximately $2.2 million of short-term lease expense and $7.6 million of sublease income for the year ended December 31, 2019. Maturities of lease liabilities as of December 31, 2019 (in thousands) (b) : Years Ended December 31, 2020 $ 32,688 2021 30,200 2022 27,543 2023 25,838 2024 23,318 Thereafter 221,479 Total 361,066 Less: interest 169,557 Present value of lease liabilities $ 191,509 _____________________ (b) Lease payments exclude $37.3 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 as of December 31, 2019: Remaining lease term 17.4 years Discount rate 6.12 % Year Ended (In thousands) Other Information: Right-of-use assets obtained in exchange for lease liabilities $ 61,657 Cash paid for amounts included in the measurement of lease liabilities $ 35,321 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments New IAC has entered into certain off-balance sheet commitments that require the future purchase of services ("purchase obligations"). Future payments under noncancelable unconditional purchase obligations as of December 31, 2019 are as follows: Amount of Commitment Expiration Per Period Less Than 1-3 3-5 More Than Total (In thousands) Purchase obligations $ 75,243 $ 41,423 $ — $ — $ 116,666 Purchase obligations include New IAC's allocable share of Old IAC's $150.0 million three-year cloud computing contract, of which Old IAC paid $50.0 million in 2019 and New IAC had a related prepaid asset of $8.7 million included in "Other current assets" on the combined balance sheet at December 31, 2019. Following the Separation, $20.0 million of the remaining obligation will be assigned to New IAC and $80.0 million will be assigned to Match Group. New IAC's two remaining minimum payments of $10.0 million each will be due in 2020 and 2021. Purchase obligations also include (i) remaining payments of $59.3 million related to a two year cloud computing contract, which $40.9 million and $18.3 million are estimated to be paid in 2020 and 2021, respectively, (ii) remaining payments of $23.8 million related to advertising commitments to be made in 2020, and (iii) a remaining payment of $13.1 million related to the purchase of a 50% interest in a corporate aircraft that is expected to be made in 2021. Contingencies In the ordinary course of business, New IAC is a party to various lawsuits. New IAC 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 New IAC, these matters are subject to inherent uncertainties and management's view of these matters may change in the future. New IAC 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 New IAC. See " Note 3—Income Taxes " for additional information related to income tax contingencies. Tinder Optionholder Litigation against IAC and Match Group 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 certain of the plaintiffs of their 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, as well as punitive damages. On August 31, 2018, four plaintiffs who were still employed by Match Group filed a notice of discontinuance of their claims without prejudice, leaving the six former employees as the remaining plaintiffs. On October 9, 2018, the defendants filed a motion to dismiss the complaint on various grounds, including that the 2017 valuation of Tinder by the investment banks was an expert determination any challenge to which is both time-barred under applicable law and available only on narrow substantive grounds that the plaintiffs have not pleaded in their complaint; the plaintiffs opposed the motion. On June 13, 2019, the court issued a decision and order (i) granting the motion to dismiss the claims for breach of the implied covenant of good faith and fair dealing and for unjust enrichment, (ii) granting the motion to dismiss the merger-related claim for breach of contract as to two of the remaining six plaintiffs, and (iii) otherwise denying the motion to dismiss. On June 21, 2019, the defendants filed a notice of appeal from the trial court’s partial denial of their motion to dismiss, and the parties thereafter briefed the appeal. On October 29, 2019, the Appellate Division, First Department, issued an order affirming the lower court’s decision. On November 22, 2019, the defendants filed a motion for reargument or, in the alternative, leave to appeal the Appellate Division's order to the New York Court of Appeals; the plaintiffs opposed the motion, which remains pending. On June 3, 2019, the defendants filed a second motion to dismiss based upon certain provisions of the plaintiffs' agreement with a litigation funding firm; the plaintiffs have opposed the motion, which remains pending. Document discovery in the case is substantially complete, and deposition discovery is underway. On January 30, 2020, the parties participated in a mediation that did not result in resolution of the matter. IAC and Match Group believe that the allegations in this lawsuit are without merit and will continue to defend vigorously against it. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Relationship with Old IAC prior to the Separation New IAC’s combined statement of operations includes allocations of costs, including stock-based compensation expense, related to IAC’s accounting, treasury, legal, tax, corporate support and internal audit functions. To the extent applicable, Old IAC has historically allocated costs related to its accounting, treasury, legal, tax, corporate support and internal audit functions that are incurred at the Old IAC legal entity level to its publicly traded subsidiaries, Match Group and ANGI Homeservices, including HomeAdvisor for periods prior to the Combination, based upon time spent or other cost drivers, such as revenue, number of legal entities or transaction volume, in their standalone financial statements. For periods subsequent to the Match Group IPO in November 2015 and the Combination in September 2017, Old IAC billed Match Group and ANGI Homeservices for any services provided under the applicable services agreements. The remaining unallocated expenses of Old IAC related to its accounting, treasury, legal, tax, corporate support and internal audit functions were allocated to New IAC based upon time spent or other cost drivers, such as revenue, number of legal entities or transaction volume. Allocated costs, inclusive of stock-based compensation expense, were $146.0 million, $178.2 million and $126.7 million, in 2019, 2018 and 2017, respectively. It is not practicable to determine the actual expenses that would have been incurred for these services had New IAC operated as a standalone entity during the periods presented. Management considers the allocation method to be reasonable. The portion of interest income reflected in the combined statement of operations that is related party in nature, was $0.4 million, $0.3 million and $23.7 million, for the years ended December 31, 2019, 2018 and 2017, respectively, and is included in “Interest income, net” in the table below. The following table summarizes the components of the net decrease (increase) in Old IAC’s investment in IAC Holdings, Inc. for the years ended December 31, 2019, 2018 and 2017: Years Ended December 31, 2019 2018 2017 (In thousands) Cash transfers (from) to Old IAC related to its centrally managed U.S. treasury function, acquisitions and cash expenses paid by Old IAC on behalf of IAC Holdings, Inc., net $ (182,382) $ 215,993 $ (21,058) Taxes (1,874) 1,120 44,798 Interest income, net 420 325 23,656 Allocation of costs from Old IAC (80,143) (71,977) (62,180) Net (increase) decrease in Old IAC's investment in IAC Holdings, Inc. $ (263,979) $ 145,461 $ (14,784) Notes Receivable—Related Party During 2019, New IAC, through two domestic subsidiaries, entered into loan agreements with Old IAC for cash transfers to Old IAC under its centrally managed U.S. treasury function. The outstanding receivable at December 31, 2019 is $55.3 million and bears interest at a rate per annum equal to the Monthly Short-Term Applicable Federal Rate and is due on demand. The interest rate at December 31, 2019 was 1.59%. Long-term Debt—Related Party On December 14, 2018, New IAC, through a domestic subsidiary, entered into a loan with Old IAC for up to an amount not to exceed $15.0 million for general working capital purposes in the ordinary course of business. During the first quarter of 2019, the outstanding balance at December 31, 2018 of $2.5 million was repaid. Guarantee of Old IAC Senior Notes On November 15, 2013 and December 21, 2012, Old IAC issued $500.0 million aggregate principal amount of 4.875% Senior Notes due November 30, 2018 ("4.875% Senior Notes") and $500.0 million aggregate principal amount of 4.75% Senior Notes due December 15, 2022 ("4.75% Senior Notes"), respectively. The 4.875% and 4.75% Senior Notes are unconditionally guaranteed by certain of New IAC's domestic subsidiaries. On November 30, 2017, Old IAC redeemed the 4.875% Senior Notes and repaid the outstanding balance of $361.9 million. On August 23, 2019, Old IAC redeemed the 4.75% Senior Notes and repaid the outstanding balance of $34.5 million. New IAC did not pay any amount (or record any liability) as a result of our guarantee of Old IAC's Senior Notes. Relationship with New Match following the Separation If the Separation is consummated, New IAC shall enter into certain agreements with New Match to govern the relationship between New IAC and New Match following the Separation. These agreements will include: a tax sharing agreement; a services agreement; and an employee matters agreement. New IAC and ANGI Old IAC and ANGI, in connection with the Combination, entered into a contribution agreement; an investor rights agreement; a services agreement; a tax sharing agreement; and an employee matters agreement. If the Separation is consummated, Old IAC shall assign these agreements to New IAC. Additionally, on September 29, 2017, Old IAC and ANGI entered into two intercompany notes (collectively referred to as "Intercompany Notes") to ANGI as follows: (i) a Payoff Intercompany Note, which provided the funds necessary to repay the outstanding balance under Angie's List's previously existing credit agreement, totaling $61.5 million; and (ii) a Working Capital Intercompany Note, which provided ANGI with $15 million for working capital purposes. These Intercompany Notes were repaid on November 1, 2017, with a portion of the proceeds from the ANGI Term Loan that were received on the same date. For the years ended December 31, 2019 and 2018 and for the period subsequent to the Combination through December 31, 2017, 0.5 million, 0.9 million and 0.4 million shares, respectively, of ANGI Class B common stock were issued to IAC pursuant to the employee matters agreement as reimbursement for shares of IAC common stock issued in connection with the exercise and vesting of IAC equity awards held by ANGI employees. On October 10, 2018, Old IAC was issued 5.1 million shares of Class B common stock of ANGI pursuant to the post-closing adjustment provision of the Angie's List merger agreement. For the years ended December 31, 2019 and 2018 and for the period subsequent to the Combination through December 31, 2017, ANGI was charged $4.8 million, $5.7 million and $1.7 million, respectively, by Old IAC for services rendered pursuant to the services agreement. There were no outstanding receivables or payables pursuant to the services agreement as of December 31, 2019. At December 31, 2018, Old IAC had a $0.1 million outstanding payable to ANGI, pursuant to the services agreement. This amount was deducted from the charges due from ANGI pursuant to the services agreement discussed above during the first quarter of 2019. New IAC and Match Group For the years ended December 31, 2019, 2018 and 2017, Match Group incurred rent expense of $5.8 million, $5.2 million and $5.1 million, respectively, for the leasing of office space for certain of its businesses at properties owned by New IAC. The respective amounts were paid in full by Match Group at December 31, 2019, 2018 and 2017, respectively. In December 2017, certain international subsidiaries of Match Group agreed to sell net operating losses, which were not expected to be utilized by Match Group, to a New IAC subsidiary for $0.9 million. New IAC and Expedia Each of New IAC and Expedia has a 50% ownership interest in two aircraft that may be used by both companies. New IAC and Expedia purchased an aircraft during the second quarter of 2017 to replace a previously owned aircraft, which was subsequently sold on February 13, 2018. New IAC paid $17.4 million (50% of the total purchase price and refurbish costs) for its interest in the new aircraft. In addition, in 2019, New IAC and Expedia entered into an agreement to jointly acquire a new corporate aircraft for a total expected cost of $72.3 million (including purchase price and related costs), with each company to bear 50% of such expected cost. New IAC paid approximately $23 million in 2019 in connection with our joint entry into the purchase agreement, and the respective share of the balance is due upon delivery of the new aircraft, which is expected to occur in early 2021. Members of the aircraft flight crews are employed by an entity in which each of New IAC and Expedia has a 50% ownership interest. New IAC and Expedia have agreed to share costs relating to flight crew compensation and benefits pro-rata according to each company's respective usage of the aircraft, for which they are separately billed by the entity described above. IAC and Expedia are related parties since they are under common control, given that Mr. Diller serves as Chairman and Senior Executive of both Old IAC and Expedia and subsequent to the Separation will serve as Chairman and Senior Executive of New IAC. For the years ended December 31, 2019, 2018 and 2017, total payments made to this entity by New IAC were not material. |
BENEFIT PLANS
BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
BENEFIT PLANS | BENEFIT PLANS The employees of the combined subsidiaries of New IAC participate in the IAC/InterActiveCorp Retirement Savings Plan ("the Plan"), which is a retirement savings plan in the United States that qualifies under Section 401(k) of the Internal Revenue Code. Under the Plan, participating employees may contribute up to 50% of their pre-tax earnings, but not more than statutory limits. Prior to July 2019, New IAC contributed a dollar for each dollar a participant contributed in this plan, with a maximum contribution of 3% of a participant's eligible earnings. In June 2019, Old IAC approved a change to the matching contribution to 100% of the first 10% of compensation, subject to IRS limits on the Old IAC's matching contribution maximum, that a participant contributes to the Plan. This change was phased in beginning July 1, 2019 and was fully implemented by all of the entities comprising New IAC participating in the Plan no later than January 1, 2020. Matching contributions for the Plan for the years ended December 31, 2019, 2018 and 2017 are $15.4 million, $10.2 million and $8.8 million, respectively. Matching contributions are invested in the same manner as each participant's voluntary contributions in the investment options provided under the Plan. An investment option in the Plan is Old IAC common stock, but neither participant nor matching contributions are required to be invested in Old IAC common stock. The increase in matching contributions in 2019 is due primarily to the aforementioned change to New IAC's matching contribution. The increase in matching contributions in 2018 is due primarily to an increase in participation in the Plan due to increases in headcount from the Combination and continued corporate growth at ANGI, Vimeo and Dotdash. New IAC also has or participates in various benefit plans, principally defined contribution plans, for its international employees. New IAC contributions for these plans for the years ended December 31, 2019, 2018 and 2017 are $1.0 million, $0.6 million and $0.3 million, respectively. |
COMBINED FINANCIAL STATEMENT DE
COMBINED FINANCIAL STATEMENT DETAILS | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
COMBINED FINANCIAL STATEMENT DETAILS | COMBINED FINANCIAL STATEMENT DETAILS December 31, 2019 2018 (In thousands) Other current assets: Capitalized costs to obtain a contract with a customer $ 43,069 $ 40,601 Prepaid expenses 41,934 36,636 Capitalized downloadable search toolbar costs, net 21,985 33,365 Other 45,346 56,857 Other current assets $ 152,334 $ 167,459 December 31, 2019 2018 (In thousands) Property and equipment, net: Buildings and leasehold improvements $ 242,882 $ 224,497 Capitalized software and computer equipment 124,523 93,000 Furniture and other equipment 84,640 79,299 Land 11,591 11,591 Projects in progress 43,576 25,835 Property and equipment 507,212 434,222 Accumulated depreciation and amortization (201,798) (173,774) Property and equipment, net $ 305,414 $ 260,448 December 31, 2019 2018 (In thousands) Accrued expenses and other current liabilities: Accrued employee compensation and benefits $ 105,960 $ 99,205 Accrued advertising expense 59,269 64,626 Accrued revenue share 30,574 28,284 Other 124,670 107,450 Accrued expenses and other current liabilities $ 320,473 $ 299,565 Years Ended December 31, 2019 2018 2017 (In thousands) Other income, net $ 33,627 $ 282,470 $ 12,363 Other income, net in 2019 includes: a $20.5 million gain related to the sale of our investment in Pinterest; $18.5 million in net upward adjustments related to investments in equity securities without readily determinable fair values; $14.7 million of interest income; an unrealized reduction of $9.1 million in the estimated fair value of a warrant; a realized loss of $8.2 million related to the sale of Vimeo's hardware business in the first quarter of 2019; and a $1.8 million mark-to-market charge for an indemnification claim related to the Handy acquisition that will be settled in ANGI shares held in escrow. Other income, net in 2018 includes: a $26.8 million realized gain on the sale of certain Pinterest shares held by New IAC and a $128.8 million unrealized gain (or upward adjustment) to adjust our remaining interest in Pinterest to fair value in accordance with ASU No. 2016-01, which was adopted on January 1, 2018; $120.6 million in gains related to the sales of Dictionary.com, Electus, Felix and CityGrid; and $8.8 million of interest income. Other income, net in 2017 includes: $25.8 million in realized gains related to the sale of certain investments; $4.0 million of interest income; $9.9 million in other-than-temporary impairment charges related to certain investments; and $6.6 million in net foreign currency exchange losses due primarily to the weakening of the dollar relative to the British pound. Cash and Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the combined balance sheet to the total amounts shown in the combined statement of cash flows: December 31, 2019 December 31, 2018 December 31, 2017 December 31, 2016 (In thousands) Cash and cash equivalents $ 839,796 $ 884,975 $ 757,202 $ 521,416 Restricted cash included in other current assets 527 1,441 2,737 204 Restricted cash included in other assets 409 420 — 10,548 Total cash and cash equivalents and restricted cash as shown on the combined statement of cash flows $ 840,732 $ 886,836 $ 759,939 $ 532,168 Restricted cash at December 31, 2019 primarily consists of a deposit related to corporate credit cards. Restricted cash at December 31, 2018 primarily consists of a cash collateralized letter of credit and a deposit related to corporate credit cards. Restricted cash at December 31, 2017 primarily supports a letter of credit to a supplier, which was released to New IAC in the second quarter of 2018. Restricted cash at December 31, 2016 primarily included funds held in escrow for the MyHammer tender offer. In the first quarter of 2017, the funds held in escrow for the MyHammer tender offer were returned to New IAC. Supplemental Disclosure of Non-Cash Transactions: New IAC recorded an acquisition-related contingent consideration liability of $25.5 million during the year ended December 31, 2018 in connection with an acquisition. There were no acquisition-related contingent consideration liabilities recorded for the years ended December 31, 2019 and 2017. See " Note 6—Financial Instruments and Fair Value Measurements " for additional information on contingent consideration arrangements. On October 19, 2018, ANGI issued 8.6 million shares of its Class A common stock valued at $165.8 million in connection with the acquisition of Handy. On September 29, 2017, ANGI issued 61.3 million shares of its Class A common stock valued at $763.7 million in connection with the Combination. Supplemental Disclosure of Cash Flow Information: Years Ended December 31, 2019 2018 2017 (In thousands) Cash paid (received) during the year for: Interest $ 10,042 $ 13,108 $ 8 Income tax payments $ 4,861 $ 4,084 $ 6,508 Income tax refunds $ (3,048) $ (30,320) $ (11,618) |
QUARTERLY RESULTS (UNAUDITED)
QUARTERLY RESULTS (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY RESULTS (UNAUDITED) | QUARTERLY RESULTS (UNAUDITED) Quarter Ended March 31 (a) Quarter Ended June 30 (a) Quarter Ended September 30 (a) Quarter Ended December 31 (a) (In thousands) Year Ended December 31, 2019 Revenue $ 641,220 $ 688,685 $ 705,382 $ 670,514 Cost of revenue $ 139,848 $ 149,725 $ 158,161 $ 152,506 Operating (loss) income $ (34,183) $ (13,770) $ 13,912 $ (16,408) Net (loss) earnings $ (13,673) $ 22,021 $ 18,378 $ 5,457 Net (loss) earnings attributable to Old IAC equity in IAC Holdings, Inc. $ (14,247) $ 13,789 $ 16,466 $ 6,887 Quarter Ended March 31 (b) Quarter Ended June 30 (c) Quarter Ended September 30 (d) Quarter Ended December 31 (e) (In thousands) Year Ended December 31, 2018 Revenue $ 587,709 $ 637,928 $ 660,649 $ 646,762 Cost of revenue $ 108,021 $ 120,890 $ 129,727 $ 142,514 Operating (loss) income $ (16,356) $ 24,479 $ 39,177 $ (11,465) Net (loss) earnings $ (5,002) $ 164,482 $ 38,163 $ 94,728 Net (loss) earnings attributable to Old IAC equity in IAC Holdings, Inc. $ (2,809) $ 125,686 $ 34,601 $ 89,294 _______________________________________________________________________________ (a) The first, second, third, and fourth quarters of 2019 include after-tax stock-based compensation expense of $2.2 million, $1.9 million, $1.7 million, and $1.7 million, respectively, related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination. (b) The first quarter of 2018 includes after-tax stock-based compensation expense of $14.7 million related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination, and the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination, as well as after-tax costs of $4.1 million related to the Combination (including $2.8 million of deferred revenue write-offs). (c) The second quarter of 2018 includes: i. after-tax stock-based compensation expense of $12.9 million related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination, and the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination, as well as after-tax costs of $2.0 million related to the Combination (including $1.8 million of deferred revenue write-offs). ii. after-tax realized and unrealized gains of $131.5 million related to the sale of a certain equity investment. (d) The third quarter of 2018 includes after-tax stock-based compensation expense of $12.3 million related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination. (e) The fourth quarter of 2018 includes: i. after-tax stock-based compensation expense of $14.5 million related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination. ii. combined after-tax gains of $91.4 million related to the sales of Dictionary.com, Electus, Felix and CityGrid. iii. after-tax impairment charges related to indefinite-lived intangible assets of $20.8 million. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On February 11, 2020, New IAC completed the acquisition of Care.com, an online marketplace for finding and managing family care, for approximately $500 million, net of cash acquired. The accounting for this acquisition has not been completed at the date of this filing given the proximity to the acquisition date. The acquisition will be accounted for by the acquisition method, and accordingly the results of operations of Care.com will be included in New IAC’s combined financial statements from the date of its acquisition. The purchase price will be allocated to the net assets acquired based on estimated fair values at the acquisition date, with the excess of purchase price over the estimated fair value of the net assets acquired recorded as goodwill . In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID‑19”) as a pandemic, which continues to spread throughout the United States and abroad. New IAC’s ANGI Homeservices business experienced a decline in demand for home services requests, driven primarily by decreases in demand in certain categories of jobs (particularly discretionary indoor projects). In the second quarter of 2020, ANGI Homeservices experienced a rebound in service requests, exceeding pre-COVID-19 growth levels, driven by increased demand from homeowners who spent more time at home due to measures taken to reduce the spread of COVID-19. However, many service professionals' businesses have been adversely impacted by labor and material constraints, which negatively impacted ANGI Homeservices' ability to monetize this increased level of service requests. Vimeo has seen strong revenue growth as the demand for communication via video has increased due to the pandemic. The Search segment has experienced a significant decline in revenue due, in part, to the decrease in advertising rates due to the impact of COVID-19. In addition, the United States has experienced a resurgence of the COVID-19 virus beginning in June 2020, the impact of and potential continue spread of COVID-19 remains unpredictable and could materially and adversely affect our business, financial condition and results of operations. In connection with the first quarter close of its books, New IAC determined that the effects of COVID‑19 were an indicator of possible impairment for certain of its assets. New IAC determined, as of March 31, 2020, the fair value for those assets for which COVID‑19 was deemed to be an indicator of possible impairment 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; • a $51.5 million impairment to its portfolio of equity securities without readily determinable fair values; and • a $7.5 million impairment on a note receivable and warrants related to certain investees. There were no impairments identified during the three months ended June 30, 2020. On June 9, 2020, Old IAC announced that it had sold approximately 17 million shares of its Class M common stock (which became New Match common stock) for net proceeds of approximately $1.4 billion. The sale of these shares closed on July 1, 2020 and, under the terms of the Separation, the net proceeds of $1.4 billion that New Match received pursuant to such sales were transferred to the Company in early July 2020. On June 30, 2020, the Separation was completed. For more information, see the Company's Current Report on Form 8-K filed with the SEC on July 2, 2020 and the Quarterly Report for the quarter ended June 30, 2020 filed on Form 10-Q with the SEC on August 10, 2020. New IAC purchased 59.0 million shares of MGM Resorts International ("MGM") from May 14, 2020 through August 7, 2020 for approximately $1 billion in aggregate, representing a 12.0% ownership interest in MGM as of August 7, 2020. On August 20, 2020, ANGI Group, LLC, a Delaware limited liability company and a direct, wholly owned subsidiary of ANGI, issued $500 million in aggregate principal amount of 3.875% Senior Notes ("ANGI Senior Notes") due August 15, 2028. The net proceeds from the issuance of the ANGI Senior Notes will be used for general corporate purposes, including potential future acquisitions and return of capital. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Basis of Presentation and Combination | Basis of Presentation and Combination In connection with the Separation, IAC Holdings, Inc. was incorporated as a Delaware corporation in November 2019. IAC Holdings, Inc. currently does not have any material assets or liabilities, nor does it engage in any business or other activities and, other than in connection with the Separation, will not acquire or incur any material assets or liabilities, nor will it engage in any business or other activities. The historical combined financial statements of IAC Holdings, Inc. and subsidiaries have been prepared on a standalone basis and are derived from the consolidated financial statements and accounting records of Old IAC. The combined financial statements reflect the historical financial position, results of operations and cash flows of the businesses comprising New IAC since their respective dates of acquisition by Old IAC and the allocation to New IAC of certain Old IAC corporate expenses relating to New IAC based on the historical financial statements and accounting records of Old IAC. For the purpose of these financial statements, income taxes have been computed as if the entities comprising New IAC filed tax returns on a standalone, separate basis. The financial statements have been prepared on a combined, rather than consolidated, basis as the final steps of the legal reorganization, which will result in the contribution of all the entities that will comprise New IAC as of the date of the Separation, are not yet complete. As used herein, "New IAC," "we," "our" or "us" and similar terms in these historical combined financial statements refer to IAC Holdings, Inc. and its subsidiaries (unless the context requires otherwise). New IAC prepares its combined financial statements in accordance with U.S. generally accepted accounting principles ("GAAP"). All intercompany transactions and balances between and among New IAC, its subsidiaries and the entities comprising New IAC have been eliminated. All intercompany transactions between (i) New IAC and (ii) Old IAC and its subsidiaries are considered to be effectively settled for cash at the time the transaction is recorded. The total net effect of the settlement of these intercompany transactions is reflected in the combined statement of cash flows as a financing activity and in the combined balance sheet as “Invested capital.” In management's opinion, the assumptions underlying the historical combined financial statements of New IAC, including the basis on which the expenses have been allocated from Old IAC, are reasonable. However, the allocations may not reflect the expenses that we may have incurred as an independent, stand-alone company for the periods presented. | |
Accounting for Investments in Equity Securities | Accounting for Investments in Equity Securities Investments in equity securities, other than those of our combined subsidiaries and those accounted for under the equity method, if applicable, are accounted for at fair value or under the measurement alternative of Financial Accounting Standards Board ("FASB") 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 securities of the same issuer; value is generally determined based on a market approach as of the transaction date. A security will be considered identical or similar if it has identical or similar rights to the equity securities held by New IAC. New IAC reviews its investments in equity securities without readily determinable fair values 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, New IAC prepares quantitative assessments of the fair value of our investments in equity securities, which require judgment and the use of estimates. When our assessment indicates that the fair value of the investment is below the carrying value, New IAC writes down the investment to its fair value and records the corresponding charge within other income (expense), net. | |
Accounting Estimates | Accounting Estimates Management of New IAC is required to make certain estimates, judgments and assumptions during the preparation of its combined 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, New IAC evaluates its estimates and judgments, including those related to: the fair values of cash equivalents and marketable debt securities; the carrying value of accounts receivable, including the determination of the allowance for doubtful accounts; the determination of revenue reserves; the carrying value of right-of-use assets ("ROU assets"); the useful lives and recoverability of definite-lived intangible assets and property and equipment; the recoverability of goodwill and indefinite-lived intangible assets; the fair value of equity securities without readily determinable fair values; contingencies; 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. New IAC bases its estimates and judgments on historical experience, its forecasts and budgets and other factors that New IAC considers relevant. | |
Revenue Recognition | Revenue Recognition New IAC adopted ASU No. 2014-09, Revenue from Contracts with Customers, effective January 1, 2018 using the modified retrospective transition method for open contracts as of the date of initial application. The cumulative effect to New IAC's retained earnings at January 1, 2018 was an increase of $40.3 million, of which $3.4 million was related to the noncontrolling interest in ANGI; the adjustment to retained earnings was principally related to New IAC’s ANGI segment and the Desktop business. • Within ANGI, the effect of the adoption of ASU No. 2014-09 was that commissions paid to employees pursuant to certain sales incentive programs, which represent the incremental direct costs of obtaining a service professional contract, are now capitalized and amortized over the estimated life of a service professional (also referred to as the estimated customer relationship period). These costs were expensed as incurred prior to January 1, 2018. The cumulative effect of the adoption of ASU No. 2014-09 was the establishment of a current and non-current asset for capitalized sales commissions of $29.7 million and $4.2 million, respectively, and a related deferred tax liability of $8.0 million, resulting in a net increase to retained earnings of $25.9 million on January 1, 2018. • Within the Desktop business, the primary effect of the adoption of ASU No. 2014-09 was to accelerate the recognition of the portion of the revenue of certain desktop applications sold by SlimWare that qualify as functional intellectual property ("functional IP") under ASU No. 2014-09. This revenue was previously deferred and recognized over the applicable subscription term. The cumulative effect of the adoption of ASU No. 2014-09 for SlimWare was a reduction in deferred revenue of $20.3 million and the establishment of a deferred tax liability of $4.9 million, resulting in a net increase to retained earnings of $15.5 million on January 1, 2018. New IAC's disaggregated revenue disclosures are presented in " Note 10—Segment Information ." The following table presents the impact of the adoption of ASU No. 2014-09 by segment under Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers , as reported, and ASC 605, Revenue Recognition , for the year ended December 31, 2018. Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Revenue by segment: ANGI Homeservices $ 1,132,241 $ 1,132,241 $ — Vimeo 159,641 160,931 (1,290) Dotdash 130,991 130,991 — Search 823,950 830,447 (6,497) Emerging & Other 286,586 279,294 7,292 Inter-segment eliminations (361) (361) — Total $ 2,533,048 $ 2,533,543 $ (495) Operating costs and expenses by segment: ANGI Homeservices $ 1,068,335 $ 1,073,275 $ (4,940) Vimeo 195,235 196,212 (977) Dotdash 112,213 112,213 — Search 672,525 672,525 — Emerging & Other 313,213 310,404 2,809 Corporate 135,692 135,692 — Total $ 2,497,213 $ 2,500,321 $ (3,108) Operating income (loss) by segment: ANGI Homeservices $ 63,906 $ 58,966 $ 4,940 Vimeo (35,594) (35,281) (313) Dotdash 18,778 18,778 — Search 151,425 157,922 (6,497) Emerging & Other (26,627) (31,110) 4,483 Corporate (136,053) (136,053) — Total $ 35,835 $ 33,222 $ 2,613 Net earnings $ 292,371 $ 290,487 $ 1,884 New IAC accounts for a contract with a customer when it has approval and commitment from all parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when control of the promised services or goods is transferred to our customers and in an amount that reflects the consideration New IAC expects to be entitled to in exchange for those services or goods. Transaction Price The objective of determining the transaction price is to estimate the amount of consideration New IAC is due in exchange for its services or goods, including amounts that are variable. New IAC determines the total transaction price, including an estimate of any variable consideration, at contract inception and reassesses this estimate each reporting period. New IAC excludes from the measurement of transaction price all taxes assessed by governmental authorities that are both (i) imposed on and concurrent with a specific revenue-producing transaction and (ii) collected from customers. Accordingly, such tax amounts are not included as a component of revenue or cost of revenue. For contracts that have an original duration of one year or less, New IAC uses the practical expedient available under ASU No. 2014-09, applicable to such contracts and does not consider the time value of money. Arrangements with Multiple Performance Obligations New IAC’s contracts with customers may include multiple performance obligations. For such arrangements, New IAC allocates revenue to each performance obligation based on its relative standalone selling price. New IAC generally determines standalone selling prices based on the prices charged to customers, which are directly observable or based on an estimate if not directly observable. For our multiple performance obligation arrangements that include functional intellectual property ("IP"), which comprise the downloadable apps and software of th e Desktop business , New IAC uses a residual approach to determine standalone selling prices for the functional IP. Assets Recognized from the Costs to Obtain a Contract with a Customer New IAC has determined that certain costs, primarily commissions paid to employees pursuant to certain sales incentive programs and mobile app store fees, meet the requirements to be capitalized as a cost of obtaining a contract. Commissions paid to employees pursuant to certain sales incentive programs are amortized over the estimated customer relationship period. New IAC calculates the estimated customer relationship period as the average customer life, which is based on historical data. When customer renewals are expected and the renewal commission is not commensurate with the initial commission, the average customer life includes renewal periods. For sales incentive programs where the customer relationship period is one year or less, New IAC has elected the practical expedient to expense the costs as incurred. New IAC generally capitalizes and amortizes mobile app store fees over the term of the applicable subscription. During the years ended December 31, 2019 and 2018, New IAC recognized expense of $99.8 million and $70.6 million related to the amortization of these costs. The current contract asset balances are $43.1 million, $40.6 million and $30.9 million at December 31, 2019 and 2018, and January 1, 2018, respectively. The non-current contract asset balances are $6.2 million, $4.5 million and $4.7 million at December 31, 2019 and 2018, and January 1, 2018, respectively. The current and non-current contract assets are included in "Other current assets" and "Other non-current assets," respectively, in the accompanying combined balance sheet. Performance Obligations As permitted under the practical expedient available under ASU No. 2014-09, New IAC 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 New IAC recognizes revenue at the amount which we have the right to invoice for services performed. ANGI Homeservices ANGI revenue is primarily derived from (i) consumer connection revenue, which comprises fees paid by HomeAdvisor service professionals for consumer matches (regardless of whether the service professional ultimately provides the requested service) and fees from completed jobs sourced through the HomeAdvisor and Handy platforms, and (ii) HomeAdvisor service professional membership subscription fees. Consumer connection revenue varies based upon several factors, including the service requested, product experience offered and geographic location of service. Consumer connection revenue is generated and recognized when an in-network service professional has delivered a consumer match or when a job sourced through the HomeAdvisor and Handy platforms is completed. Service professional membership subscription revenue is initially deferred and is recognized using the straight-line method over the applicable subscription period, which is typically one year. Consumer connection revenue is generally billed one week following a consumer match, with payment due upon receipt of invoice or collected when a consumer schedules a job through the HomeAdvisor and Handy platforms. ANGI maintains revenue reserves for potential credits for services provided by Handy service professionals to consumers. ANGI revenue is also derived from (i) sales of time-based website, mobile and call center advertising to service professionals, (ii) membership subscription fees from consumers and (iii) service warranty subscription and other services. Angie's List service professionals generally pay for advertisements in advance on a monthly or annual basis at the option of the service professional, with the average advertising contract term being approximately one year. Angie's List website, mobile and call center advertising revenue is recognized ratably over the contract term. Revenue from the sale of advertising in the Angie’s List Magazine is recognized in the period in which the publication is distributed. Angie's List prepaid consumer membership subscription fees are recognized as revenue using the straight-line method over the term of the applicable subscription period, which is typically one year. Prior to January 1, 2020, Handy recorded revenue on a net basis. Effective January 1, 2020, we modified the Handy terms and conditions so that Handy, rather than the service professional, has the contractual relationship with the consumer to deliver the service and Handy, rather than the consumer, has the contractual relationship with the service professional. Consumers request services and pay for such services directly through the Handy platform and then Handy fulfills the request with independently established home services providers engaged in a trade, occupation and/or business that customarily provides such services. This change in contractual terms requires gross revenue accounting treatment effective January 1, 2020. Also, in the case of certain tasks, HomeAdvisor provides a pre-priced product offering, pursuant to which consumers can request services through a HomeAdvisor platform and pay HomeAdvisor for the services directly. HomeAdvisor then fulfills the request with independently established home services providers engaged in a trade, occupation and/or business that customarily provides such services. Revenue from HomeAdvisor’s pre-priced product offering is also recorded on a gross basis effective January 1, 2020. In addition to changing the presentation of revenue to gross from net, the timing of revenue recognition will change for pre-priced jobs and will be later than the timing of existing consumer connection revenue for HomeAdvisor because we will not be able to record revenue, generally, until the service professional completes the job on our behalf. Vimeo Vimeo revenue is derived primarily from annual and monthly SaaS subscription fees paid by subscribers for self-serve and enterprise subscription plans. Subscription revenue is recognized over the terms of the applicable subscription period, which are typically one month or one year. Dotdash Dotdash revenue consists principally of display advertising revenue and performance marketing revenue. Display advertising revenue is generated primarily through digital display advertisements sold directly by our sales team and through programmatic advertising networks. Performance marketing revenue includes affiliate commerce and performance marketing commissions. Affiliate commerce commission revenue is generated when Dotdash refers users to commerce partner websites resulting in a purchase or transaction. Performance marketing commissions are generated on a cost-per-click or cost-per-new account basis. Search Desktop revenue largely consists of advertising revenue generated principally through the display of paid listings in response to search queries. Paid listings are advertisements displayed on search results pages that generally contain a link to advertiser websites. The substantial majority of the paid listings displayed by our Desktop businesses is supplied to us by Google Inc. ("Google") pursuant to our services agreement with Google. Pursuant to this agreement, Desktop businesses that provide search services transmit search queries to Google, which in turn transmits a set of relevant and responsive paid listings back to these businesses for display in search results. This ad-serving process occurs independently of, but concurrently with, the generation of algorithmic search results for the same search queries. Google paid listings are displayed separately from algorithmic search results and are identified as sponsored listings on search results pages. Paid listings are priced on a price per click basis and when a user submits a search query through a Desktop business and then clicks on a Google paid listing displayed in response to the query, Google bills the advertiser that purchased the paid listing and shares a portion of the fee charged to the advertiser with the Desktop business. New IAC recognizes paid listing revenue from Google when it delivers the user's click. In cases where the user’s click is generated due to the efforts of a third-party distributor, we recognize the amount due from Google as revenue and record a revenue share or other payment obligation to the third-party distributor as traffic acquisition costs. To a lesser extent, Desktop revenue also includes fees related to subscription-based downloadable desktop applications as well as display advertisements. Fees related to subscription downloadable desktop applications are generally recognized over the term of the applicable subscription period, which is primarily one Ask Media Group revenue consists principally of advertising revenue generated principally through the display of paid listings in response to search queries, as well as from display advertisements appearing alongside content on its various websites and, to a lesser extent, affiliate commerce commission revenue. The majority of the paid listings displayed are supplied to us by Google in the manner, and pursuant to the services agreement with Google, described above. Revenue from display advertising is generated through advertisements sold through programmatic advertising networks. Affiliate commerce commission revenue is generated when an Ask Media Group property refers users to commerce partner websites resulting in a purchase or transaction. Emerging & Other Mosaic Group revenue consists primarily of fees related to subscription downloadable mobile applications distributed through the Apple App Store and Google Play Store, as well as display advertisements. Fees related to subscription downloadable mobile applications are recognized either over the term of the subscription period, which is up to one year, for those applications that must be connected to our servers to function, or at the time of the sale when the software is delivered. Fees related to display advertisements are recognized when an advertisement is displayed. Bluecrew revenue consists of service revenue, which is generated through staffing workers and recognized as control of the promised services is transferred to our customers. NurseFly revenue consists of subscription revenue, which is generated through recruiting agencies that seek access to qualified healthcare professionals and is recognized at the earlier of the full delivery of the promised services or the length of the subscription period. The Daily Beast revenue consists of advertising revenue, which is generated primarily through display advertisements (sold directly and through programmatic ad sales), and to a lesser extent, affiliate commerce commission revenue. Revenue of College Humor Media and IAC Films is generated primarily through media production and distribution and advertising. Production revenue is recognized when control is transferred to the customer to broadcast or exhibit, and advertising revenue is recognized when an advertisement is displayed or over the advertising period. Accounts Receivables, Net of Allowance for Doubtful Accounts and Revenue Reserves Accounts receivable include amounts billed and currently due from customers. New IAC maintains an allowance for doubtful accounts to provide for the estimated amount of accounts receivable that will not be collected. The allowance for doubtful accounts is based upon a number of factors, including the length of time accounts receivable are past due, New IAC’s previous loss history and the specific customer’s ability to pay its obligation. The time between New IAC issuance of an invoice and payment due date is not significant; customer payments that are not collected in advance of the transfer of promised services or goods are generally due no later than 30 days from invoice date. New IAC also maintains allowances to reserve for potential credits issued to consumers or other revenue adjustments. The amounts of these reserves are based primarily upon historical experience. Deferred Revenue Deferred revenue consists of advance payments that are received or are contractually due in advance of New IAC's performance. New IAC’s deferred revenue is reported on a contract by contract basis at the end of each reporting period. New IAC classifies deferred revenue as current when the term of the applicable subscription period or expected completion of our performance obligation is one year or less. The deferred revenue balance is $179.9 million, $151.8 million and $133.9 million at December 31, 2019 and 2018, and January 1, 2018, respectively. During the years ended December 31, 2019 and 2018, New IAC recognized $146.5 million and $131.9 million of revenue that was included in the deferred revenue balance as of December 31, 2018 and January 1, 2018, respectively. The current deferred revenue balances are $178.6 million and $150.1 | |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash and short-term investments, with maturities of less than 91 days from the date of purchase. Domestically, cash equivalents primarily consist of AAA rated government money market funds, treasury discount notes, time deposits and commercial paper rated A1/P1 or better. Internationally, cash equivalents primarily consist of AAA rated government money market funds and time deposits. | |
Investments in Debt Securities | Investments in Debt Securities New IAC invests in marketable debt securities with active secondary or resale markets to ensure portfolio liquidity to fund current operations or satisfy other cash requirements as needed. Marketable debt securities are adjusted to fair value each quarter, and the unrealized gains and losses, net of tax, are included in accumulated other comprehensive income (loss) as a separate component of parent's equity. The specific-identification method is used to determine the cost of debt securities sold and the amount of unrealized gains and losses reclassified out of accumulated other comprehensive income (loss) into earnings. New IAC also invests in non-marketable debt securities as part of its investment strategy. We review our debt securities for impairment each reporting period. New IAC recognizes an unrealized loss on debt securities in net earnings when the impairment is determined to be other-than-temporary. Factors we consider in making such determination include the duration, severity and reason for the decline in value and the potential recovery and our intent to sell the debt security. We also consider whether we will be required to sell the security before recovery of its amortized cost basis and whether the amortized cost basis cannot be recovered because of credit losses. If an impairment is considered to be other-than-temporary, the debt security will be written down to its fair value and the loss will be recognized within other income (expense), net. New IAC has no marketable securities at December 31, 2019. At December 31, 2018, marketable debt securities consist of treasury discount notes. | |
Certain Risks and Concentrations | Certain Risks and Concentrations Services Agreement with Google Old IAC and Google are party to a services agreement (the “Services Agreement”). If the Separation is consummated, Old IAC shall assign the Services Agreement to New IAC. A meaningful portion of New IAC's revenue is attributable to the Services Agreement. In addition, New IAC earns certain other advertising revenue from Google that is not attributable to the Services Agreement. For the years ended December 31, 2019, 2018 and 2017, total revenue earned from Google was $733.5 million, $825.2 million and $740.7 million, respectively, representing 27%, 33% and 38%, respectively, of New IAC's combined revenue. Accounts receivable related to revenue earned from Google totaled $53.0 million and $69.1 million at December 31, 2019 and 2018, respectively. Revenue attributable to the Services Agreement is earned by the Desktop business and Ask Media Group within the Search segment. For the years ended December 31, 2019, 2018 and 2017, revenue earned from the Services Agreement was $291.1 million, $426.5 million and $480.6 million, respectively, within the Desktop business and $385.9 million, $339.0 million and $203.5 million, respectively, within Ask Media Group. The current Services Agreement expires on March 31, 2020. On February 11, 2019, Old IAC 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 during September 2020 and during 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. New IAC believes that the amended agreement, taken as a whole, is comparable to Old IAC’s currently existing agreement with Google. The Services Agreement requires that New IAC comply with certain guidelines promulgated by Google. Google may generally unilaterally update its policies and guidelines without advance notice. These updates may be specific to the Services Agreement or could be more general and thereby impact New IAC as well as other companies. These policy and guideline updates 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 combined financial condition and results of operations, particularly our Desktop business and Ask Media Group. As described below, Google has made changes to the policies under the Services Agreement and has also made industry‑wide changes that have negatively impacted the Desktop business during both 2018 and 2019. Google’s policy changes related to its Chrome browser, which became effective on September 12, 2018, negatively impacted the distribution of our B2C downloadable desktop products. The resultant reduction in projected profits and revenues of this business resulted in a $27.7 million impairment of the B2C trade name, which was recorded in the fourth quarter of 2018. On May 31, 2019, Google announced industry-wide policy changes, which became effective on July 1, 2019, related to all extensions distributed through the Chrome Web Store. These industry-wide changes, combined with other changes to polices under the Services Agreement during the second half of 2019, have had a negative impact on the historical and expected future results of operations of the Desktop business. As of December 31, 2019, the goodwill balance of the Desktop reporting unit and the carrying value of the related intangible asset are $265.1 million and $28.9 million, respectively. The fair values of the Desktop reporting unit and the related intangible asset approximate their carrying values; therefore, a modest reduction in the fair values of the Desktop reporting unit or the related intangible asset would result in an impairment charge, which would be equal to the excess of the carrying value over the fair value of such assets. Credit Risk Financial instruments, which potentially subject New IAC to concentration of credit risk, consist primarily of cash and cash equivalents. Cash and cash equivalents are maintained with financial institutions and are in excess of Federal Deposit Insurance Corporation insurance limits. Other Risks New IAC's business is subject to certain risks and concentrations including dependence on third-party technology providers, exposure to risks associated with online commerce security and credit card fraud. | |
Property and Equipment | Property and Equipment Property and equipment, including significant improvements, are recorded at cost. Repairs and maintenance costs are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, or, in the case of leasehold improvements, the lease term, if shorter. | |
Business Combinations | Business Combinations The purchase price of each acquisition is attributed to the assets acquired and liabilities assumed based on their fair values at the date of acquisition, including identifiable intangible assets that either arise from a contractual or legal right or are separable from goodwill. New IAC usually uses the assistance of outside valuation experts to assist in the allocation of purchase price to the identifiable intangible assets acquired. While outside valuation experts may be used, management has ultimate responsibility for the valuation methods, models and inputs used and the resulting purchase price allocation. The excess purchase price over the net tangible and identifiable intangible assets is recorded as goodwill and is assigned to the reporting unit(s) that is expected to benefit from the combination as of the acquisition date. In connection with certain business combinations, New IAC has entered into contingent consideration arrangements that are determined to be part of the purchase price. Each of these arrangements is initially recorded at its fair value at the time of | |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets New IAC assesses goodwill and indefinite-lived intangible assets for impairment annually as of October 1, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit or the fair value of an indefinite-lived intangible asset below its carrying value. When New IAC elects to perform a qualitative assessment and concludes it is not more likely than not that the fair value of the reporting unit is less than its carrying value, no further assessment of that reporting unit's goodwill is necessary; otherwise, a quantitative assessment is performed and the fair value of the reporting unit is determined. If the carrying value of the reporting unit exceeds its fair value, an impairment equal to the excess is recorded. For New IAC's annual goodwill test at October 1, 2019, a qualitative assessment of the ANGI, Vimeo, Mosaic Group (included in the Emerging & Other segment), College Humor Media, Bluecrew and Nursefly reporting units' goodwill was performed because New IAC concluded it was more likely than not that the fair value of these reporting units was in excess of their respective carrying values. The primary factors that New IAC considered in its qualitative assessment for each of these reporting units are described below: • ANGI's October 1, 2019 market capitalization of $3.6 billion exceeded its carrying value by approximately $2.2 billion. • New IAC prepared valuations of the Vimeo, Mosaic Group, Bluecrew and Nursefly reporting units primarily in connection with the issuance and/or settlement of equity awards that are denominated in the equity of these businesses subsequent to January 1, 2019. The valuations were prepared time proximate to, however, not as of, October 1, 2019. The fair value of each of these businesses was in excess of its October 1, 2019 carrying value. New IAC quantitatively tests goodwill for impairment as of October 1 when it concludes that it is more likely than not that there may be an impairment. For New IAC's annual goodwill test at October 1, 2019, New IAC quantitatively tested the Desktop reporting unit (included in the Search segment). New IAC's quantitative test indicated that there was no impairment. New IAC's Dotdash, Ask Media Group and The Daily Beast reporting units have no goodwill. The aggregate goodwill balance for the Desktop reporting unit for which the most recent estimate of fair value is less than 10% over its carrying value is approximately $265.1 million. The fair value of New IAC's reporting units (except for ANGI described above) is determined using both an income approach based on discounted cash flows ("DCF") and a market approach when New IAC tests goodwill for impairment, either on an interim basis or annual basis as of October 1 each year. New IAC uses the same approach in determining the fair value of its businesses in connection with its non-public subsidiary denominated stock-based compensation plans, which can be a significant factor in the decision to apply the qualitative assessment rather than a quantitative test. 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 are based on New IAC's most recent forecast and budget and, for years beyond the budget, New IAC's estimates, which are based, in part, on forecasted growth rates. The discount rates used in the DCF analyses are intended to reflect the risks inherent in the expected future cash flows of the respective reporting units. Assumptions used in the DCF analyses, including the discount rate, are assessed based on each reporting unit's current results and forecasted future performance, as well as macroeconomic and industry specific factors. The discount rates used in the quantitative test for determining the fair value of New IAC's reporting units was 12.5% in 2019 and ranged from 12.5% to 15.0% in 2018. 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 a reporting unit. To determine a peer group of companies for our respective reporting units, we considered companies relevant in terms of consumer use, monetization model, margin and growth characteristics, and brand strength operating in their respective sectors. While New IAC has the option to qualitatively assess whether it is more likely than not that the fair values of its indefinite-lived intangible assets are less than their carrying values, New IAC's policy is to determine the fair value of each of its indefinite-lived intangible assets annually as of October 1, in part, because the level of effort required to perform the quantitative and qualitative assessments is essentially equivalent. New IAC 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 are 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 are based upon an estimate of the royalty rates that a market participant would pay to license New IAC's trade names and trademarks. The future cash flows are based on New IAC's most recent forecast and budget and, for years beyond the budget, New IAC's estimates, which are based, in part, on forecasted growth rates. Assumptions used in the avoided royalty DCF analyses, including the discount rate and royalty rate, are assessed annually based on the actual and projected cash flows related to the asset, as well as macroeconomic and industry specific factors. The discount rates used in New IAC's annual indefinite-lived impairment assessment ranged from 11.5% to 27.5% in 2019 and 11.5% to 35% in 2018, and the royalty rates used ranged from 1% to 5.5% in 2019 and 0.75% to 5.5% in 2018. If the carrying value of an indefinite-lived intangible asset exceeds its estimated fair value, an impairment equal to the excess is recorded. 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 10% is approximately $28.9 million. The 2019 annual assessment of goodwill and indefinite-lived intangible assets identified a $3.3 million goodwill impairment charge and $0.7 million trade name impairment both related to the College Humor Media business. The 2018 annual assessment of goodwill did not identify any impairments. The 2018 annual assessment of indefinite-lived intangible assets identified impairment charges of $27.7 million and $1.1 million related to certain Desktop and College Humor Media indefinite-lived trade names, respectively. The indefinite-lived intangible asset impairment charge at Desktop was due to Google's policy changes related to its Chrome browser which became effective on September 12, 2018 and have negatively impacted the distribution of New IAC's B2C downloadable desktop products. The impairment charge related to the B2C trade name was identified in New IAC's annual impairment assessment as of October 1, 2018 and reflects the projected reduction in profits and revenues and the resultant reduction in the assumed royalty rate from these policy changes. The impairment charges are included in "Amortization of intangibles" in the accompanying combined statement of operations. The 2017 annual assessment of goodwill and indefinite-lived intangible assets did not identify any impairments. | |
Long-Lived Assets and Intangible Assets with Definite Lives | Long-Lived Assets and Intangible Assets with Definite Lives Long-lived assets, which consist of ROU assets, property and equipment and intangible assets with definite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The carrying value of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the carrying value is deemed not to be recoverable, an impairment loss is recorded equal to the amount by which the carrying value of the long-lived asset exceeds its fair value. Amortization of definite-lived intangible assets is computed either on a straight-line basis or based on the pattern in which the economic benefits of the asset will be realized. | |
Fair Value Measurements | Fair Value Measurements New IAC 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 New IAC'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 New IAC to develop its own assumptions, based on the best information available in the circumstances, about the assumptions market participants would use in pricing the assets or liabilities. See " Note 6—Financial Instruments and Fair Value Measurements " for a discussion of fair value measurements made using Level 3 inputs. New IAC's non-financial assets, such as goodwill, intangible assets, ROU assets and property and equipment are adjusted to fair value only when an impairment is recognized. New IAC'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. | |
Traffic Acquisition Costs | Traffic Acquisition Costs Traffic acquisition costs consist of (i) payments made to partners who direct traffic to our Ask Media Group websites, who distribute our business-to-business customized browser-based applications and who integrate our paid listings into their websites and (ii) the amortization of fees paid to Apple and Google related to the distribution of apps and the facilitation of in-app purchases. These payments include amounts based on revenue share and other arrangements. New IAC expenses these payments in the period incurred as a component of cost of revenue. | |
Advertising Costs | Advertising Costs Advertising costs are expensed in the period incurred (when the advertisement first runs for production costs that are initially capitalized) and represent online marketing, including fees paid to search engines, social media sites and third parties that distribute our B2C downloadable applications, offline marketing, which is primarily television advertising, and partner-related payments to those who direct traffic to the brands within our ANGI segment. Advertising expense is $855.2 million, $798.1 million and $750.5 million for the years ended December 31, 2019, 2018 and 2017, respectively. New IAC capitalizes and amortizes the costs associated with certain distribution arrangements that require us to pay a fee per access point delivered. These access points are generally in the form of downloadable applications associated with our direct-to consumer operations. These fees are amortized over the estimated useful lives of the access points to the extent New IAC can reasonably estimate a probable future economic benefit and the period over which such benefit will be realized (generally 18 months). Otherwise, the fees are charged to expense as incurred. | |
Legal Costs | Legal Costs Legal costs are expensed as incurred. | |
Income Taxes | Income Taxes New IAC is included within Old IAC’s tax group for purposes of federal and consolidated state income tax return filings. In all periods presented, current and deferred income tax provision/benefit has been computed for the entities comprising New IAC on an as if standalone, separate return basis. New IAC accounts for income taxes under the liability method, and deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided if it is determined that it is more likely than not that the deferred tax asset will not be realized. New IAC records interest, net of any applicable related income tax benefit, on potential income tax contingencies as a component of income tax expense. New IAC evaluates and accounts for uncertain tax positions using a two-step approach. Recognition (step one) occurs when New IAC concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustainable upon examination. Measurement (step two) determines the amount of benefit that is greater than 50% likely to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. De-recognition of a tax position that was previously recognized would occur when New IAC subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained. On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act imposes a new minimum tax on global intangible low-taxed income ("GILTI") earned by foreign subsidiaries beginning in 2018. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity may make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. New IAC has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. | |
Foreign Currency Translation and Transaction Gains and Losses | Foreign Currency Translation and Transaction Gains and Losses The financial position and operating results of foreign entities whose primary economic environment is based on their local currency are combined using the local currency as the functional currency. These local currency assets and liabilities are translated at the rates of exchange as of the balance sheet date, and local currency revenue and expenses of these operations are translated at average rates of exchange during the period. Translation gains and losses are included in accumulated other comprehensive income as a component of parent's equity. Transaction gains and losses resulting from assets and liabilities denominated in a currency other than the functional currency are included in the combined statement of operations as a component of other income (expense), net. See " Note 15—Combined Financial Statement Details " for additional information regarding foreign currency exchange gains and losses. | |
Stock-Based Compensation | Stock-Based CompensationStock-based compensation is measured at the grant date based on the fair value of the award and is generally expensed over the requisite service period. | |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests Noncontrolling interests in the combined subsidiaries of New IAC are ordinarily reported on the combined balance sheet within parent's equity, separately from New IAC's equity. However, securities that are redeemable at the option of the holder and not solely within the control of the issuer must be classified outside of parent's equity. Accordingly, all noncontrolling interests that are redeemable at the option of the holder are presented outside of parent's equity in the accompanying combined balance sheet. In connection with the acquisition of certain subsidiaries, management of these businesses has retained an ownership interest. Old IAC is party to fair value put and call arrangements with respect to these interests. These put and call arrangements allow management of these businesses to require Old IAC to purchase their interests or allow Old IAC to acquire such interests at fair value, respectively. These arrangements will be assigned to New IAC following the Separation and are, | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncement adopted by New IAC Adoption of ASU No. 2016-02, Leases (Topic 842) New IAC 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 $119.6 million of 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 New IAC’s combined results of operations or cash flows. New IAC adopted ASC 842 prospectively and, therefore, did not revise comparative period information or disclosure. In addition, New IAC elected the package of practical expedients permitted under ASC 842. See " Note 11—Leases " for additional information on the adoption of ASC 842. Accounting Pronouncements Not Yet Adopted by New IAC ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016‑13, which significantly changes how entities will measure credit losses for most financial assets, including accounts receivable. ASU No. 2016‑13 replaces the “incurred loss” approach with an “expected loss” model, under which companies will recognize allowances based on expected rather than incurred losses. New IAC adopted ASU No. 2016‑13 on January 1, 2020 using the modified retrospective approach. There was no cumulative effect arising from the adoption of ASU No. 2016‑13. The adoption of 2016‑13 is not expected to have a material impact on New IAC’s financial statements. ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU No. 2019‑12, which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. The provisions of ASU No. 2019‑12 are effective for reporting periods beginning after December 15, 2020 with early adoption permitted. Most amendments within ASU No. 2019‑12 are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. New IAC adopted ASU No. 2019‑12 on January 1, 2020 using the modified retrospective basis for those amendments that are not applied on a prospective basis. The adoption of ASU No. 2019‑12 will not have a material impact on New IAC’s combined financial statements. | |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Impact of Adoption by Segment of ASC 606 | The following table presents the impact of the adoption of ASU No. 2014-09 by segment under Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers , as reported, and ASC 605, Revenue Recognition , for the year ended December 31, 2018. Under ASC 606 Under ASC 605 Effect of adoption of ASU No. 2014-09 (In thousands) Revenue by segment: ANGI Homeservices $ 1,132,241 $ 1,132,241 $ — Vimeo 159,641 160,931 (1,290) Dotdash 130,991 130,991 — Search 823,950 830,447 (6,497) Emerging & Other 286,586 279,294 7,292 Inter-segment eliminations (361) (361) — Total $ 2,533,048 $ 2,533,543 $ (495) Operating costs and expenses by segment: ANGI Homeservices $ 1,068,335 $ 1,073,275 $ (4,940) Vimeo 195,235 196,212 (977) Dotdash 112,213 112,213 — Search 672,525 672,525 — Emerging & Other 313,213 310,404 2,809 Corporate 135,692 135,692 — Total $ 2,497,213 $ 2,500,321 $ (3,108) Operating income (loss) by segment: ANGI Homeservices $ 63,906 $ 58,966 $ 4,940 Vimeo (35,594) (35,281) (313) Dotdash 18,778 18,778 — Search 151,425 157,922 (6,497) Emerging & Other (26,627) (31,110) 4,483 Corporate (136,053) (136,053) — Total $ 35,835 $ 33,222 $ 2,613 Net earnings $ 292,371 $ 290,487 $ 1,884 |
Schedule of Estimated Useful Lives of Property and Equipment | Asset Category Estimated Buildings and leasehold improvements 3 to 39 Years Capitalized software and computer equipment 2 to 3 Years Furniture and other equipment 3 to 12 Years December 31, 2019 2018 (In thousands) Property and equipment, net: Buildings and leasehold improvements $ 242,882 $ 224,497 Capitalized software and computer equipment 124,523 93,000 Furniture and other equipment 84,640 79,299 Land 11,591 11,591 Projects in progress 43,576 25,835 Property and equipment 507,212 434,222 Accumulated depreciation and amortization (201,798) (173,774) Property and equipment, net $ 305,414 $ 260,448 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Taxes | U.S. and foreign (loss) earnings before income taxes and noncontrolling interests are as follows: Years Ended December 31, 2019 2018 2017 (In thousands) U.S. $ (74,360) $ 269,267 $ (141,519) Foreign 46,054 36,304 10,725 Total $ (28,306) $ 305,571 $ (130,794) |
Schedule of Components of Income Tax Expense (Benefit) | The components of the income tax (benefit) provision are as follows: Years Ended December 31, 2019 2018 2017 (In thousands) Current income tax provision (benefit): Federal $ (1,117) $ (1,187) $ (29,754) State 197 1,514 2,262 Foreign 3,201 4,108 (1,175) Current income tax provision (benefit) 2,281 4,435 (28,667) Deferred income tax (benefit) provision: Federal (51,952) 20,156 (118,744) State (10,645) (7,272) (6,755) Foreign (173) (4,119) (1,236) Deferred income tax (benefit) provision (62,770) 8,765 (126,735) Income tax (benefit) provision $ (60,489) $ 13,200 $ (155,402) |
Schedule of Deferred Tax Assets and Liabilities | December 31, 2019 2018 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 201,766 $ 129,500 Stock-based compensation 62,566 64,776 Long-term lease liabilities 42,486 — Tax credit carryforwards 38,066 34,065 Accrued expenses 12,911 17,577 Other 21,039 16,713 Total deferred tax assets 378,834 262,631 Less: valuation allowance (92,990) (86,778) Net deferred tax assets 285,844 175,853 Deferred tax liabilities: Investment in subsidiaries (240,420) (240,590) Right-of-use assets (29,654) — Intangible assets (28,488) (35,380) Investment in Pinterest — (23,018) Other (31,534) (14,120) Total deferred tax liabilities (330,096) (313,108) Net deferred tax liabilities $ (44,252) $ (137,255) |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the income tax (benefit) provision to the amounts computed by applying the statutory federal income tax rate to earnings before income taxes is shown as follows: Years Ended December 31, 2019 2018 2017 (In thousands) Income tax (benefit) provision at the federal statutory rate of 21% (35% for 2017) $ (5,944) $ 64,170 $ (45,778) State income taxes, net of effect of federal tax benefit (277) 5,188 (4,856) Stock-based compensation (56,871) (39,326) (75,895) Non-deductible executive compensation 7,409 2,983 123 Change in valuation allowance on capital losses (5,815) (1,280) (825) Non-deductible expenses 5,460 1,727 5,211 Research credit (5,105) (3,167) (4,593) Withholding taxes 1,008 703 510 Deferred tax adjustment for enacted changes in tax laws and rates (687) (13,646) (68,513) Foreign income taxed at a different statutory tax rate (672) (866) (6,087) Transition tax — — 46,003 Other, net 1,005 (3,286) (702) Income tax (benefit) provision $ (60,489) $ 13,200 $ (155,402) |
Schedule of Income Tax Contingencies | A reconciliation of the beginning and ending amount of unrecognized tax benefits, including penalties but excluding interest, is as follows: December 31, 2019 2018 2017 (In thousands) Balance at January 1 $ 15,451 $ 14,528 $ 12,766 Additions based on tax positions related to the current year 2,781 1,455 1,399 Additions for tax positions of prior years 238 235 870 Expiration of applicable statutes of limitations (410) (767) (507) Balance at December 31 $ 18,060 $ 15,451 $ 14,528 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price | The table below summarizes the purchase price: Angie's List (In thousands) Class A common stock $ 763,684 Cash consideration for holders who elected to receive $8.50 in cash per share of Angie's List common stock 1,913 Fair value of vested and pro rata portion of unvested stock options attributable to pre-combination services 11,749 Fair value of the pro rata portion of unvested restricted stock units attributable to pre-combination services 4,038 Total purchase price $ 781,384 |
Schedule of Preliminary Estimated Fair Value of Assets Acquired and Liabilities Assumed | The table below summarizes the fair values of the assets acquired and liabilities assumed at the date of Combination: Angie's List (In thousands) Cash and cash equivalents $ 44,270 Other current assets 11,280 Property and equipment 16,341 Goodwill 543,674 Intangible assets 317,300 Total assets 932,865 Deferred revenue (32,595) Other current liabilities (46,150) Long-term debt—related party (61,498) Deferred income taxes (9,833) Other long-term liabilities (1,405) Net assets acquired $ 781,384 |
Schedule of Preliminary Estimated Fair Value of Intangible Assets Acquired | The fair values of the identifiable intangible assets acquired at the date of Combination are as follows: Angie's List (In thousands) Weighted-Average Useful Life Indefinite-lived trade name and trademarks $ 137,000 Indefinite Service professionals 90,500 3 Developed technology 63,900 6 Memberships 15,900 3 User base 10,000 1 Total identifiable intangible assets acquired $ 317,300 |
Schedule of Pro Forma Financial Information | Year Ended December 31, 2017 (In thousands) Revenue $ 2,174,968 Net earnings attributable to Old IAC equity in IAC Holdings, Inc. $ 96,578 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets, Net | Goodwill and intangible assets, net are as follows: December 31, 2019 2018 (In thousands) Goodwill $ 1,616,867 $ 1,484,117 Intangible assets with indefinite lives 225,296 227,420 Intangible assets with definite lives, net of accumulated amortization 124,854 166,362 Total goodwill and intangible assets, net $ 1,967,017 $ 1,877,899 |
Schedule of Goodwill by Reporting Unit | 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 Additions (Deductions) Impairment Foreign Balance at (In thousands) ANGI Homeservices $ 895,071 $ 18,326 $ (29,293) $ — $ 192 $ 884,296 Vimeo 77,152 142,222 — — — 219,374 Search 265,146 — — — — 265,146 Emerging & Other 246,748 4,765 — (3,318) (144) 248,051 Total $ 1,484,117 $ 165,313 $ (29,293) $ (3,318) $ 48 $ 1,616,867 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, 2018: Balance at Additions (Deductions) Impairment Foreign Balance at (In thousands) ANGI Homeservices $ 770,664 $ 142,768 $ (14,449) $ — $ (3,912) $ 895,071 Vimeo 77,303 — (151) — — 77,152 Search 265,146 — — — — 265,146 Emerging & Other 200,401 54,468 (7,664) — (457) 246,748 Total $ 1,313,514 $ 197,236 $ (22,264) $ — $ (4,369) $ 1,484,117 |
Schedule of Intangible Assets with Definite Lives | Intangible assets with indefinite lives are trade names and trademarks acquired in various acquisitions. At December 31, 2019 and 2018, intangible assets with definite lives are as follows: December 31, 2019 Gross Accumulated Net Weighted-Average (In thousands) Technology $ 143,255 $ (73,483) $ 69,772 4.5 Service professional relationships 99,651 (76,445) 23,206 2.9 Customer lists and user base 44,286 (24,226) 20,060 3.3 Memberships 15,900 (11,940) 3,960 3.0 Trade names 12,777 (8,082) 4,695 3.5 Other 10,439 (7,278) 3,161 3.4 Total $ 326,308 $ (201,454) $ 124,854 3.7 December 31, 2018 Gross Accumulated Net Weighted-Average (In thousands) Technology $ 132,588 $ (48,339) $ 84,249 4.6 Service professional relationships 99,528 (44,674) 54,854 2.9 Customer lists and user base 29,829 (14,857) 14,972 2.9 Memberships 15,900 (6,640) 9,260 3.0 Trade names 7,579 (4,579) 3,000 3.9 Other 5,500 (5,473) 27 4.6 Total $ 290,924 $ (124,562) $ 166,362 3.7 |
Schedule of Expected Amortization of Intangible Assets | At December 31, 2019, amortization of intangible assets with definite lives for each of the next five years and thereafter is estimated to be as follows: Years Ending December 31, (In thousands) 2020 $ 61,792 2021 26,108 2022 21,830 2023 12,306 2024 1,316 Thereafter 1,502 Total $ 124,854 |
FINANCIAL INSTRUMENTS AND FAI_2
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Marketable Securities | At December 31, 2018, the fair values of marketable securities are as follows: Year Ended December 31, 2018 (In thousands) Available-for-sale marketable debt securities $ 24,947 Marketable equity security 419 Total marketable securities $ 25,366 |
Schedule of Current Available-for-sale Marketable Securities | At December 31, 2018, current available-for-sale marketable debt securities are as follows: Amortized Gross Gross Fair Value (In thousands) Treasury discount notes $ 24,947 $ 1 $ (1) $ 24,947 Total available-for-sale marketable debt securities $ 24,947 $ 1 $ (1) $ 24,947 |
Schedule of Long-term Investments | Long-term investments consist of: December 31, 2019 2018 (In thousands) Equity securities without readily determinable fair values $ 347,975 $ 225,979 Total long-term investments $ 347,975 $ 225,979 |
Schedule of Realized and Unrealized Gains (Losses) on Investments | The following table presents a summary of realized and unrealized gains and losses recorded in "Other income, net", as adjustments to the carrying value of equity securities without readily determinable fair values held as of December 31, 2019 and 2018. Years Ended December 31, 2019 2018 (In thousands) Upward adjustments (gross unrealized gains) $ 19,698 $ 128,786 Downward adjustments including impairments (gross unrealized losses) (1,193) (2,838) Total $ 18,505 $ 125,948 Realized and unrealized gains and losses for New IAC's marketable equity security and investments without readily determinable fair values for the years ended December 31, 2019 and 2018 are as follows: Years Ended December 31, 2018 2019 2018 (In thousands) Realized gains, net, for equity securities sold $ 22,880 $ 27,366 Unrealized gains, net, on equity securities held 18,505 126,063 Total gains, net, recognized in other income, net $ 41,385 $ 153,429 |
Schedule of Financial Instruments Measured at Fair Value on Recurring Basis | The following tables present New IAC's financial instruments that are measured at fair value on a recurring basis: December 31, 2019 Quoted Market Significant Significant Total (In thousands) Assets: Cash equivalents: Money market funds $ 699,589 $ — $ — $ 699,589 Time deposits — 23,075 — 23,075 Other non-current assets: Warrant — — 8,495 8,495 Total $ 699,589 $ 23,075 $ 8,495 $ 731,159 Liabilities: Contingent consideration arrangements $ — $ — $ (6,918) $ (6,918) December 31, 2018 Quoted Market Significant Significant Total (In thousands) Assets: Cash equivalents: Money market funds $ 616,077 $ — $ — $ 616,077 Treasury discount notes — 99,914 — 99,914 Commercial paper — 52,931 — 52,931 Time deposits — 15,036 — 15,036 Marketable securities: Treasury discount notes — 24,947 — 24,947 Marketable equity security 419 — — 419 Total $ 616,496 $ 192,828 $ — $ 809,324 Liabilities: Contingent consideration arrangements $ — $ — $ (26,657) $ (26,657) |
Schedule of Unobservable Inputs in Fair Value Measurement | The following table presents the changes in New IAC's financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Years Ended December 31, 2019 2018 Warrant Contingent Consideration Arrangements Contingent Consideration Arrangements (In thousands) Balance at January 1 $ — $ (26,657) $ — Fair value at date of acquisition 17,618 — (25,521) Total net (losses) gains: Included in earnings: Fair value adjustments (9,123) 19,739 (1,136) Balance at December 31 $ 8,495 $ (6,918) $ (26,657) |
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: December 31, 2019 December 31, 2018 Carrying Fair Carrying Fair (In thousands) Notes receivable—related party, current $ 55,251 $ 55,251 $ — $ — Current portion of long-term debt $ (13,750) $ (13,681) $ (13,750) $ (12,753) Long-term debt, net (a) $ (231,946) $ (232,581) $ (244,971) $ (229,556) Long-term debt—related party $ — $ — $ (2,500) $ (2,529) _________________ (a) At December 31, 2019 and 2018, the carrying value of long-term debt, net includes unamortized debt issuance costs of $1.8 million and $2.5 million, respectively . |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of: December 31, 2019 2018 (In thousands) ANGI Term Loan due November 5, 2023 $ 247,500 $ 261,250 Less: current portion of ANGI Term Loan 13,750 13,750 Less: unamortized debt issuance costs 1,804 2,529 Total long-term debt, net $ 231,946 $ 244,971 |
Schedule of Aggregate Contractual Maturities of Long-term Debt | Maturities of long-term debt liabilities as of December 31, 2019 (in thousands): Years Ending December 31, 2020 $ 13,750 2021 13,750 2022 27,500 2023 192,500 Total 247,500 Less: current portion of long-term debt 13,750 Less: unamortized debt issuance costs 1,804 Total long-term debt, net $ 231,946 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of 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: Year Ended December 31, 2019 Foreign Currency Translation Adjustment Unrealized Gains On Available-For-Sale Marketable Debt Securities Accumulated Other Comprehensive (Loss) Income (In thousands) Balance at January 1 $ (12,543) $ 2 $ (12,541) Other comprehensive income (loss) 337 (2) 335 Net current period other comprehensive income (loss) 337 (2) 335 Allocation of accumulated other comprehensive loss related to the noncontrolling interests (20) — (20) Balance at December 31 $ (12,226) $ — $ (12,226) Year Ended December 31, 2018 Foreign Currency Translation Adjustment Unrealized Gains On Available-For-Sale Marketable Debt Securities Accumulated Other Comprehensive Loss (In thousands) Balance at January 1 $ (7,504) $ — $ (7,504) Other comprehensive (loss) income before reclassifications (4,976) 2 (4,974) Amounts reclassified to earnings (52) — (52) Net current period other comprehensive (loss) income (5,028) 2 (5,026) Allocation of accumulated other comprehensive loss related to noncontrolling interests (11) — (11) Balance at December 31 $ (12,543) $ 2 $ (12,541) Year Ended December 31, 2017 Foreign Currency Translation Adjustment Accumulated Other Comprehensive (Loss) Income (In thousands) Balance at January 1 $ (21,864) $ (21,864) Other comprehensive income before reclassifications 14,408 14,408 Amounts reclassified to earnings (41) (41) Net current period other comprehensive income 14,367 14,367 Allocation of accumulated other comprehensive loss related to noncontrolling interests (7) (7) Balance at December 31 $ (7,504) $ (7,504) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following table presents revenue by reportable segment: Years Ended December 31, 2019 2018 2017 (In thousands) Revenue: ANGI Homeservices $ 1,326,205 $ 1,132,241 $ 736,386 Vimeo 196,015 159,641 103,332 Dotdash 167,594 130,991 90,890 Search 742,184 823,950 738,474 Emerging & Other 274,107 286,586 284,132 Inter-segment elimination (304) (361) (607) Total $ 2,705,801 $ 2,533,048 $ 1,952,607 The following table presents the revenue of New IAC's segments disaggregated by type of service: Years Ended December 31, 2019 2018 2017 (In thousands) ANGI Homeservices Marketplace: Consumer connection revenue $ 913,533 $ 704,341 $ 521,481 Service professional membership subscription revenue 64,706 66,214 56,135 Other revenue 6,971 3,940 3,798 Total Marketplace revenue 985,210 774,495 581,414 Advertising and other revenue 264,682 287,676 97,483 Total North America revenue 1,249,892 1,062,171 678,897 Consumer connection revenue 59,611 50,913 40,009 Service professional membership subscription revenue 14,231 17,362 16,596 Advertising and other revenue 2,471 1,795 884 Total Europe revenue 76,313 70,070 57,489 Total ANGI Homeservices revenue $ 1,326,205 $ 1,132,241 $ 736,386 Vimeo Platform revenue $ 193,736 $ 146,665 $ 99,650 Hardware revenue 2,279 12,976 3,682 Total Vimeo revenue $ 196,015 $ 159,641 $ 103,332 Dotdash Display advertising revenue $ 126,487 $ 103,704 $ 76,316 Performance marketing revenue 41,107 27,287 14,574 Total Dotdash revenue $ 167,594 $ 130,991 $ 90,890 Search Advertising revenue: Google advertising revenue $ 678,438 $ 770,494 $ 689,633 Non-Google advertising revenue 47,556 31,975 13,553 Total advertising revenue 725,994 802,469 703,186 Other revenue 16,190 21,481 35,288 Total Search revenue $ 742,184 $ 823,950 $ 738,474 Emerging & Other Subscription revenue $ 194,362 $ 102,592 $ 25,554 Marketplace revenue 38,950 19,665 — Service revenue 3,881 22,142 27,465 Advertising revenue: Non-Google advertising revenue 23,372 64,319 74,990 Google advertising revenue 4,486 14,393 16,716 Total advertising revenue 27,858 78,712 91,706 Media production and distribution revenue 8,897 61,717 138,006 Other revenue 159 1,758 1,401 Total Emerging & Other revenue $ 274,107 $ 286,586 $ 284,132 |
Schedule of Revenue by Geographic Areas | Revenue by geography is based on where the customer is located. Geographic information about revenue and long-lived assets is presented below: Years Ended December 31, 2019 2018 2017 (In thousands) Revenue: United States $ 2,097,743 $ 1,951,957 $ 1,569,275 All other countries 608,058 581,091 383,332 Total $ 2,705,801 $ 2,533,048 $ 1,952,607 |
Schedule of Long-lived Assets by Geographic Areas | December 31, 2019 2018 (In thousands) Long-lived assets (excluding goodwill and intangible assets): United States $ 297,433 $ 254,751 All other countries 7,981 5,697 Total $ 305,414 $ 260,448 |
Schedule of Reconciliation of Adjusted EBITDA to Operating Income (Loss) | The following tables present operating income (loss) and Adjusted EBITDA by reportable segment: Years Ended December 31, 2019 2018 2017 (In thousands) Operating income (loss): ANGI Homeservices $ 38,645 $ 63,906 $ (149,176) Vimeo (51,921) (35,594) (27,328) Dotdash 29,021 18,778 (15,694) Search 122,347 151,425 153,986 Emerging & Other (21,790) (26,627) (780) Corporate (166,751) (136,053) (125,640) Total $ (50,449) $ 35,835 $ (164,632) Years Ended December 31, 2019 2018 2017 (In thousands) Adjusted EBITDA: (a) ANGI Homeservices $ 202,297 $ 247,506 $ 37,858 Vimeo $ (41,790) $ (28,045) $ (23,607) Dotdash $ 39,601 $ 21,384 $ (2,763) Search $ 124,163 $ 182,905 $ 162,023 Emerging & Other $ (28,368) $ (14,889) $ 2,124 Corporate $ (88,617) $ (74,011) $ (67,748) _______________________________________________________________________________ (a) New IAC'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. New IAC 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. 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 New IAC's reportable segments and net earnings attributable to Old IAC equity in IAC Holdings, Inc. to Adjusted EBITDA: Year Ended December 31, 2019 Operating Stock-Based Depreciation Amortization Goodwill Impairment Acquisition-related Contingent Consideration Fair Value Adjustments Adjusted EBITDA (In thousands) ANGI Homeservices $ 38,645 $ 68,255 $ 39,915 $ 55,482 $ — $ — $ 202,297 Vimeo (51,921) $ — $ 478 $ 9,653 $ — $ — $ (41,790) Dotdash 29,021 $ — $ 974 $ 9,606 $ — $ — $ 39,601 Search 122,347 $ — $ 1,816 $ — $ — $ — $ 124,163 Emerging & Other (21,790) $ — $ 715 $ 9,127 $ 3,318 $ (19,738) $ (28,368) Corporate (166,751) $ 66,083 $ 12,051 $ — $ — $ — $ (88,617) Total (50,449) Interest expense—third party (11,904) Interest income, net—related party 420 Other income, net 33,627 Loss before income taxes (28,306) Income tax benefit 60,489 Net earnings 32,183 Net earnings attributable to noncontrolling interests (9,288) Net earnings attributable to Old IAC equity in IAC Holdings, Inc. $ 22,895 Year Ended December 31, 2018 Operating Stock-Based Depreciation Amortization Acquisition-related Contingent Consideration Fair Value Adjustments Adjusted EBITDA (In thousands) ANGI Homeservices $ 63,906 $ 97,078 $ 24,310 $ 62,212 $ — $ 247,506 Vimeo (35,594) $ — $ 1,200 $ 6,349 $ — $ (28,045) Dotdash 18,778 $ — $ 969 $ 1,637 $ — $ 21,384 Search 151,425 $ — $ 3,311 $ 28,169 $ — $ 182,905 Emerging & Other (26,627) $ 919 $ 969 $ 8,714 $ 1,136 $ (14,889) Corporate (136,053) $ 50,408 $ 11,634 $ — $ — $ (74,011) Total 35,835 Interest expense—third party (13,059) Interest income, net—related party 325 Other income, net 282,470 Earnings before income taxes 305,571 Income tax provision (13,200) Net earnings 292,371 Net earnings attributable to noncontrolling interests (45,599) Net earnings attributable to Old IAC equity in IAC Holdings, Inc. $ 246,772 Year Ended December 31, 2017 Operating Stock-Based Depreciation Amortization Acquisition-related Contingent Consideration Fair Value Adjustments Adjusted EBITDA (In thousands) ANGI Homeservices $ (149,176) $ 149,230 $ 14,543 $ 23,261 $ — $ 37,858 Vimeo (27,328) $ — $ 1,408 $ 2,313 $ — $ (23,607) Dotdash (15,694) $ — $ 2,255 $ 10,676 $ — $ (2,763) Search 153,986 $ — $ 6,026 $ 2,011 $ — $ 162,023 Emerging & Other (780) $ 401 $ 1,066 $ 889 $ 548 $ 2,124 Corporate (125,640) $ 42,374 $ 15,518 $ — $ — $ (67,748) Total (164,632) Interest expense—third party (2,181) Interest income, net—related party 23,656 Other income, net 12,363 Loss before income taxes (130,794) Income tax benefit 155,402 Net earnings 24,608 Net loss attributable to noncontrolling interests 12,398 Net earnings attributable to Old IAC equity in IAC Holdings, Inc. $ 37,006 |
Schedule of Capital Expenditures by Segment | The following table presents capital expenditures by reportable segment: Years Ended December 31, 2019 2018 2017 (In thousands) Capital expenditures: ANGI Homeservices $ 68,804 $ 46,976 $ 26,837 Vimeo 2,801 209 109 Dotdash — 102 825 Search 43 479 251 Emerging & Other 387 751 291 Corporate 25,863 6,163 17,840 Total $ 97,898 $ 54,680 $ 46,153 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information of Leases | Leases Balance Sheet Classification December 31, 2019 (In thousands) Assets: Right-of-use assets Right-of-use assets, net $ 138,608 Liabilities: Current lease liabilities Accrued expenses and other current liabilities $ 23,188 Long-term lease liabilities Other long-term liabilities 168,321 Total lease liabilities $ 191,509 |
Schedule of Lease Cost and Other Information | Lease Expense Income Statement Classification Year Ended December 31, 2019 (In thousands) Fixed lease expense Cost of revenue $ 547 Fixed lease expense Selling and marketing expense 10,613 Fixed lease expense General and administrative expense 17,751 Fixed lease expense Product development expense 1,502 Total fixed lease expense (a) 30,413 Variable lease expense Cost of revenue 83 Variable lease expense Selling and marketing expense 1,573 Variable lease expense General and administrative expense 5,729 Variable lease expense Product development expense 391 Total variable lease expense 7,776 Net lease expense $ 38,189 _____________________ (a) Includes approximately $2.2 million of short-term lease expense and $7.6 million of sublease income for the year ended December 31, 2019. Year Ended (In thousands) Other Information: Right-of-use assets obtained in exchange for lease liabilities $ 61,657 Cash paid for amounts included in the measurement of lease liabilities $ 35,321 |
Schedule of Maturities of Operating Lease Liabilities | Maturities of lease liabilities as of December 31, 2019 (in thousands) (b) : Years Ended December 31, 2020 $ 32,688 2021 30,200 2022 27,543 2023 25,838 2024 23,318 Thereafter 221,479 Total 361,066 Less: interest 169,557 Present value of lease liabilities $ 191,509 _____________________ (b) Lease payments exclude $37.3 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 as of December 31, 2019: Remaining lease term 17.4 years Discount rate 6.12 % |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commercial Commitments Outstanding | Future payments under noncancelable unconditional purchase obligations as of December 31, 2019 are as follows: Amount of Commitment Expiration Per Period Less Than 1-3 3-5 More Than Total (In thousands) Purchase obligations $ 75,243 $ 41,423 $ — $ — $ 116,666 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table summarizes the components of the net decrease (increase) in Old IAC’s investment in IAC Holdings, Inc. for the years ended December 31, 2019, 2018 and 2017: Years Ended December 31, 2019 2018 2017 (In thousands) Cash transfers (from) to Old IAC related to its centrally managed U.S. treasury function, acquisitions and cash expenses paid by Old IAC on behalf of IAC Holdings, Inc., net $ (182,382) $ 215,993 $ (21,058) Taxes (1,874) 1,120 44,798 Interest income, net 420 325 23,656 Allocation of costs from Old IAC (80,143) (71,977) (62,180) Net (increase) decrease in Old IAC's investment in IAC Holdings, Inc. $ (263,979) $ 145,461 $ (14,784) |
COMBINED FINANCIAL STATEMENT _2
COMBINED FINANCIAL STATEMENT DETAILS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Other Current Assets | December 31, 2019 2018 (In thousands) Other current assets: Capitalized costs to obtain a contract with a customer $ 43,069 $ 40,601 Prepaid expenses 41,934 36,636 Capitalized downloadable search toolbar costs, net 21,985 33,365 Other 45,346 56,857 Other current assets $ 152,334 $ 167,459 |
Schedule of Property and Equipment, Net | Asset Category Estimated Buildings and leasehold improvements 3 to 39 Years Capitalized software and computer equipment 2 to 3 Years Furniture and other equipment 3 to 12 Years December 31, 2019 2018 (In thousands) Property and equipment, net: Buildings and leasehold improvements $ 242,882 $ 224,497 Capitalized software and computer equipment 124,523 93,000 Furniture and other equipment 84,640 79,299 Land 11,591 11,591 Projects in progress 43,576 25,835 Property and equipment 507,212 434,222 Accumulated depreciation and amortization (201,798) (173,774) Property and equipment, net $ 305,414 $ 260,448 |
Schedule of Accrued Expenses and Other Current Liabilities | December 31, 2019 2018 (In thousands) Accrued expenses and other current liabilities: Accrued employee compensation and benefits $ 105,960 $ 99,205 Accrued advertising expense 59,269 64,626 Accrued revenue share 30,574 28,284 Other 124,670 107,450 Accrued expenses and other current liabilities $ 320,473 $ 299,565 |
Schedule of Other (Expense) Income, Net | Years Ended December 31, 2019 2018 2017 (In thousands) Other income, net $ 33,627 $ 282,470 $ 12,363 |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the combined balance sheet to the total amounts shown in the combined statement of cash flows: December 31, 2019 December 31, 2018 December 31, 2017 December 31, 2016 (In thousands) Cash and cash equivalents $ 839,796 $ 884,975 $ 757,202 $ 521,416 Restricted cash included in other current assets 527 1,441 2,737 204 Restricted cash included in other assets 409 420 — 10,548 Total cash and cash equivalents and restricted cash as shown on the combined statement of cash flows $ 840,732 $ 886,836 $ 759,939 $ 532,168 |
Schedule of Restricted Cash | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the combined balance sheet to the total amounts shown in the combined statement of cash flows: December 31, 2019 December 31, 2018 December 31, 2017 December 31, 2016 (In thousands) Cash and cash equivalents $ 839,796 $ 884,975 $ 757,202 $ 521,416 Restricted cash included in other current assets 527 1,441 2,737 204 Restricted cash included in other assets 409 420 — 10,548 Total cash and cash equivalents and restricted cash as shown on the combined statement of cash flows $ 840,732 $ 886,836 $ 759,939 $ 532,168 |
Schedule of Supplemental Disclosure of Cash Flow Information | Supplemental Disclosure of Cash Flow Information: Years Ended December 31, 2019 2018 2017 (In thousands) Cash paid (received) during the year for: Interest $ 10,042 $ 13,108 $ 8 Income tax payments $ 4,861 $ 4,084 $ 6,508 Income tax refunds $ (3,048) $ (30,320) $ (11,618) |
QUARTERLY RESULTS (UNAUDITED) (
QUARTERLY RESULTS (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results | Quarter Ended March 31 (a) Quarter Ended June 30 (a) Quarter Ended September 30 (a) Quarter Ended December 31 (a) (In thousands) Year Ended December 31, 2019 Revenue $ 641,220 $ 688,685 $ 705,382 $ 670,514 Cost of revenue $ 139,848 $ 149,725 $ 158,161 $ 152,506 Operating (loss) income $ (34,183) $ (13,770) $ 13,912 $ (16,408) Net (loss) earnings $ (13,673) $ 22,021 $ 18,378 $ 5,457 Net (loss) earnings attributable to Old IAC equity in IAC Holdings, Inc. $ (14,247) $ 13,789 $ 16,466 $ 6,887 Quarter Ended March 31 (b) Quarter Ended June 30 (c) Quarter Ended September 30 (d) Quarter Ended December 31 (e) (In thousands) Year Ended December 31, 2018 Revenue $ 587,709 $ 637,928 $ 660,649 $ 646,762 Cost of revenue $ 108,021 $ 120,890 $ 129,727 $ 142,514 Operating (loss) income $ (16,356) $ 24,479 $ 39,177 $ (11,465) Net (loss) earnings $ (5,002) $ 164,482 $ 38,163 $ 94,728 Net (loss) earnings attributable to Old IAC equity in IAC Holdings, Inc. $ (2,809) $ 125,686 $ 34,601 $ 89,294 _______________________________________________________________________________ (a) The first, second, third, and fourth quarters of 2019 include after-tax stock-based compensation expense of $2.2 million, $1.9 million, $1.7 million, and $1.7 million, respectively, related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination. (b) The first quarter of 2018 includes after-tax stock-based compensation expense of $14.7 million related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination, and the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination, as well as after-tax costs of $4.1 million related to the Combination (including $2.8 million of deferred revenue write-offs). (c) The second quarter of 2018 includes: i. after-tax stock-based compensation expense of $12.9 million related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination, and the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination, as well as after-tax costs of $2.0 million related to the Combination (including $1.8 million of deferred revenue write-offs). ii. after-tax realized and unrealized gains of $131.5 million related to the sale of a certain equity investment. (d) The third quarter of 2018 includes after-tax stock-based compensation expense of $12.3 million related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination. (e) The fourth quarter of 2018 includes: i. after-tax stock-based compensation expense of $14.5 million related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination. ii. combined after-tax gains of $91.4 million related to the sales of Dictionary.com, Electus, Felix and CityGrid. iii. after-tax impairment charges related to indefinite-lived intangible assets of $20.8 million. |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION - NARRATIVE (Details) service_professional in Thousands, project in Millions | 12 Months Ended |
Dec. 31, 2019service_categoryprojectservice_professional | |
Noncontrolling Interest [Line Items] | |
Number of service categories | service_category | 500 |
Number of service professionals | service_professional | 250 |
Number of projects | project | 25 |
ANGI Homeservices | |
Noncontrolling Interest [Line Items] | |
Ownership interest (as a percent) | 84.10% |
Voting interest (as a percent) | 98.10% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | Jan. 01, 2018USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)putOrCall | Dec. 31, 2018USD ($)putOrCall | Dec. 31, 2017USD ($)putOrCall | Oct. 01, 2019USD ($) | Jan. 01, 2019USD ($) |
Intangible Assets and Goodwill | ||||||||||||||
Equity method investments | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||
Current capitalized contract costs | $ 30,900,000 | 43,069,000 | 40,601,000 | 43,069,000 | 40,601,000 | |||||||||
Non-current capitalized contract costs | 4,700,000 | 6,200,000 | 4,500,000 | 6,200,000 | 4,500,000 | |||||||||
Deferred tax liabilities | 44,459,000 | 137,642,000 | 44,459,000 | 137,642,000 | ||||||||||
Increase (decrease) in deferred revenue | 28,136,000 | 36,409,000 | $ 4,498,000 | |||||||||||
Amortization of capitalized contract costs | $ 99,800,000 | 70,600,000 | ||||||||||||
Period of payment due from customers for accounts receivable | 30 days | |||||||||||||
Deferred revenue | 133,900,000 | 179,900,000 | 151,800,000 | $ 179,900,000 | 151,800,000 | |||||||||
Deferred revenue recognized during period | 146,500,000 | 131,900,000 | ||||||||||||
Current deferred revenue | 178,647,000 | 150,080,000 | 178,647,000 | 150,080,000 | ||||||||||
Non-current deferred revenue | 1,300,000 | 1,700,000 | $ 1,300,000 | 1,700,000 | ||||||||||
Maturity period at purchase (less than) | 91 days | |||||||||||||
Revenue | 670,514,000 | $ 705,382,000 | $ 688,685,000 | $ 641,220,000 | 646,762,000 | $ 660,649,000 | $ 637,928,000 | $ 587,709,000 | $ 2,705,801,000 | 2,533,048,000 | 1,952,607,000 | |||
Accounts receivable, net of allowance and reserves | 181,875,000 | 180,137,000 | 181,875,000 | 180,137,000 | ||||||||||
Goodwill | 1,616,867,000 | 1,484,117,000 | 1,616,867,000 | 1,484,117,000 | 1,313,514,000 | |||||||||
Goodwill impairment | $ 3,318,000 | 0 | 0 | |||||||||||
Estimated weighted-average useful life (in years) | 18 months | |||||||||||||
Property and equipment, net | 305,414,000 | 260,448,000 | $ 305,414,000 | 260,448,000 | ||||||||||
Goodwill | 265,100,000 | 265,100,000 | ||||||||||||
Advertising expense | 855,200,000 | 798,100,000 | 750,500,000 | |||||||||||
Amounts reclassified to earnings | $ 0 | $ 52,000 | $ 41,000 | |||||||||||
Put and call arrangements exercised | putOrCall | 1 | 2 | 2 | |||||||||||
Right-of-use assets, net | 138,608,000 | 0 | $ 138,608,000 | $ 0 | ||||||||||
Lease liability | 191,509,000 | 191,509,000 | ||||||||||||
Accounting Standards Update 2014-09 | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Retained earnings | 40,300,000 | |||||||||||||
Revenue | 2,533,048,000 | |||||||||||||
Accounting Standards Update 2016-02 | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Right-of-use assets, net | $ 119,600,000 | |||||||||||||
Lease liability | $ 119,600,000 | |||||||||||||
Redeemable Noncontrolling Interest | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Purchase of noncontrolling interests | 11,600,000 | 6,600,000 | $ 6,400,000 | |||||||||||
Trade names | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Impairment charges on indefinite-lived intangible assets | 27,700,000 | |||||||||||||
Software and software development costs | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Property and equipment, net | 56,300,000 | 38,600,000 | 56,300,000 | 38,600,000 | ||||||||||
Google Inc. | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Accounts receivable, net of allowance and reserves | $ 53,000,000 | $ 69,100,000 | $ 53,000,000 | $ 69,100,000 | ||||||||||
Google Inc. | Revenue | Customer Concentration Risk | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Concentration risk (as a percent) | 27.00% | 33.00% | 38.00% | |||||||||||
Minimum | Discount Rate | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Measurement input (as a percent) | 0.125 | 0.125 | 0.125 | 0.125 | ||||||||||
Minimum | Discount Rate | Indefinite-lived Intangible Assets | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Measurement input (as a percent) | 0.115 | 0.115 | 0.115 | 0.115 | ||||||||||
Minimum | Royalty Rate | Indefinite-lived Intangible Assets | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Measurement input (as a percent) | 0.01 | 0.0075 | 0.01 | 0.0075 | ||||||||||
Maximum | Discount Rate | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Measurement input (as a percent) | 0.150 | 0.150 | ||||||||||||
Maximum | Discount Rate | Indefinite-lived Intangible Assets | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Measurement input (as a percent) | 0.275 | 0.35 | 0.275 | 0.35 | ||||||||||
Maximum | Royalty Rate | Indefinite-lived Intangible Assets | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Measurement input (as a percent) | 0.055 | 0.055 | 0.055 | 0.055 | ||||||||||
Desktop | Trade names | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Impairment charges on indefinite-lived intangible assets | $ 27,700,000 | |||||||||||||
College Humor Media | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Goodwill impairment | $ 3,300,000 | |||||||||||||
College Humor Media | Trade names | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Impairment charges on indefinite-lived intangible assets | $ 700,000 | 1,100,000 | ||||||||||||
ANGI Homeservices | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Period of membership subscription | 1 year | |||||||||||||
Goodwill | $ 884,296,000 | $ 895,071,000 | $ 884,296,000 | 895,071,000 | $ 770,664,000 | |||||||||
Market capitalization | $ 3,600,000,000 | |||||||||||||
Amount by which market capitalization exceeds carrying value | $ 2,200,000,000 | |||||||||||||
ANGI Homeservices | Accounting Standards Update 2014-09 | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Retained earnings | 25,900,000 | |||||||||||||
Current capitalized contract costs | 29,700,000 | |||||||||||||
Non-current capitalized contract costs | 4,200,000 | |||||||||||||
Deferred tax liabilities | 8,000,000 | |||||||||||||
ANGI Homeservices | Noncontrolling Interests | Accounting Standards Update 2014-09 | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Retained earnings | 3,400,000 | |||||||||||||
ANGI Homeservices | Angie's List | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Period of membership subscription | 1 year | |||||||||||||
Search | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Goodwill | 265,146,000 | 265,146,000 | $ 265,146,000 | 265,146,000 | 265,146,000 | |||||||||
Search | Accounting Standards Update 2014-09 | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Retained earnings | 15,500,000 | |||||||||||||
Deferred tax liabilities | 4,900,000 | |||||||||||||
Increase (decrease) in deferred revenue | $ (20,300,000) | |||||||||||||
Search | Desktop | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Goodwill | 28,900,000 | 28,900,000 | ||||||||||||
Goodwill balance of reporting unit | 265,100,000 | 265,100,000 | ||||||||||||
Search | Desktop | Google Inc. | Revenue | Customer Concentration Risk | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Revenue | $ 291,100,000 | 426,500,000 | 480,600,000 | |||||||||||
Search | Desktop | Minimum | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Period of membership subscription | 1 year | |||||||||||||
Search | Desktop | Maximum | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Period of membership subscription | 2 years | |||||||||||||
Search | Ask Media Group | Google Inc. | Revenue | Customer Concentration Risk | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Revenue | $ 385,900,000 | 339,000,000 | 203,500,000 | |||||||||||
Publishing and Applications | Google Inc. | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Revenue | 733,500,000 | 825,200,000 | 740,700,000 | |||||||||||
Vimeo | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Goodwill | 219,374,000 | 77,152,000 | $ 219,374,000 | 77,152,000 | 77,303,000 | |||||||||
Vimeo | Minimum | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Period of membership subscription | 1 month | |||||||||||||
Vimeo | Maximum | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Period of membership subscription | 1 year | |||||||||||||
Emerging & Other | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Goodwill | 248,051,000 | $ 246,748,000 | $ 248,051,000 | $ 246,748,000 | $ 200,401,000 | |||||||||
Emerging & Other | Maximum | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Period of membership subscription | 1 year | |||||||||||||
Emerging & Other | College Humor Media | ||||||||||||||
Intangible Assets and Goodwill | ||||||||||||||
Goodwill impairment | $ 3,300,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Effect of Adoption of ASU 2014-09 (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 670,514 | $ 705,382 | $ 688,685 | $ 641,220 | $ 646,762 | $ 660,649 | $ 637,928 | $ 587,709 | $ 2,705,801 | $ 2,533,048 | $ 1,952,607 |
Operating costs and expenses | 2,756,250 | 2,497,213 | 2,117,239 | ||||||||
Operating income (loss) | (16,408) | 13,912 | (13,770) | (34,183) | (11,465) | 39,177 | 24,479 | (16,356) | (50,449) | 35,835 | (164,632) |
Net (loss) earnings | $ 5,457 | $ 18,378 | $ 22,021 | $ (13,673) | $ 94,728 | $ 38,163 | $ 164,482 | $ (5,002) | 32,183 | 292,371 | 24,608 |
Operating segments | ANGI Homeservices | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,326,205 | 1,132,241 | 736,386 | ||||||||
Operating income (loss) | 38,645 | 63,906 | (149,176) | ||||||||
Operating segments | Vimeo | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 196,015 | 159,641 | 103,332 | ||||||||
Operating income (loss) | (51,921) | (35,594) | (27,328) | ||||||||
Operating segments | Dotdash | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 167,594 | 130,991 | 90,890 | ||||||||
Operating income (loss) | 29,021 | 18,778 | (15,694) | ||||||||
Operating segments | Search | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 742,184 | 823,950 | 738,474 | ||||||||
Operating income (loss) | 122,347 | 151,425 | 153,986 | ||||||||
Operating segments | Emerging & Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 274,107 | 286,586 | 284,132 | ||||||||
Operating income (loss) | (21,790) | (26,627) | (780) | ||||||||
Inter-segment eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (304) | (361) | (607) | ||||||||
Corporate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating income (loss) | $ (166,751) | (136,053) | $ (125,640) | ||||||||
Accounting Standards Update 2014-09 | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 2,533,048 | ||||||||||
Operating costs and expenses | 2,497,213 | ||||||||||
Operating income (loss) | 35,835 | ||||||||||
Net (loss) earnings | 292,371 | ||||||||||
Accounting Standards Update 2014-09 | Operating segments | ANGI Homeservices | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,132,241 | ||||||||||
Operating costs and expenses | 1,068,335 | ||||||||||
Operating income (loss) | 63,906 | ||||||||||
Accounting Standards Update 2014-09 | Operating segments | Vimeo | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 159,641 | ||||||||||
Operating costs and expenses | 195,235 | ||||||||||
Operating income (loss) | (35,594) | ||||||||||
Accounting Standards Update 2014-09 | Operating segments | Dotdash | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 130,991 | ||||||||||
Operating costs and expenses | 112,213 | ||||||||||
Operating income (loss) | 18,778 | ||||||||||
Accounting Standards Update 2014-09 | Operating segments | Search | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 823,950 | ||||||||||
Operating costs and expenses | 672,525 | ||||||||||
Operating income (loss) | 151,425 | ||||||||||
Accounting Standards Update 2014-09 | Operating segments | Emerging & Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 286,586 | ||||||||||
Operating costs and expenses | 313,213 | ||||||||||
Operating income (loss) | (26,627) | ||||||||||
Accounting Standards Update 2014-09 | Inter-segment eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (361) | ||||||||||
Accounting Standards Update 2014-09 | Corporate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating costs and expenses | 135,692 | ||||||||||
Operating income (loss) | (136,053) | ||||||||||
Accounting Standards Update 2014-09 | Under ASC 605 | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 2,533,543 | ||||||||||
Operating costs and expenses | 2,500,321 | ||||||||||
Operating income (loss) | 33,222 | ||||||||||
Net (loss) earnings | 290,487 | ||||||||||
Accounting Standards Update 2014-09 | Under ASC 605 | Operating segments | ANGI Homeservices | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,132,241 | ||||||||||
Operating costs and expenses | 1,073,275 | ||||||||||
Operating income (loss) | 58,966 | ||||||||||
Accounting Standards Update 2014-09 | Under ASC 605 | Operating segments | Vimeo | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 160,931 | ||||||||||
Operating costs and expenses | 196,212 | ||||||||||
Operating income (loss) | (35,281) | ||||||||||
Accounting Standards Update 2014-09 | Under ASC 605 | Operating segments | Dotdash | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 130,991 | ||||||||||
Operating costs and expenses | 112,213 | ||||||||||
Operating income (loss) | 18,778 | ||||||||||
Accounting Standards Update 2014-09 | Under ASC 605 | Operating segments | Search | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 830,447 | ||||||||||
Operating costs and expenses | 672,525 | ||||||||||
Operating income (loss) | 157,922 | ||||||||||
Accounting Standards Update 2014-09 | Under ASC 605 | Operating segments | Emerging & Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 279,294 | ||||||||||
Operating costs and expenses | 310,404 | ||||||||||
Operating income (loss) | (31,110) | ||||||||||
Accounting Standards Update 2014-09 | Under ASC 605 | Inter-segment eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (361) | ||||||||||
Accounting Standards Update 2014-09 | Under ASC 605 | Corporate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating costs and expenses | 135,692 | ||||||||||
Operating income (loss) | (136,053) | ||||||||||
Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (495) | ||||||||||
Operating costs and expenses | (3,108) | ||||||||||
Operating income (loss) | 2,613 | ||||||||||
Net (loss) earnings | 1,884 | ||||||||||
Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | Operating segments | ANGI Homeservices | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | ||||||||||
Operating costs and expenses | (4,940) | ||||||||||
Operating income (loss) | 4,940 | ||||||||||
Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | Operating segments | Vimeo | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (1,290) | ||||||||||
Operating costs and expenses | (977) | ||||||||||
Operating income (loss) | (313) | ||||||||||
Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | Operating segments | Dotdash | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | ||||||||||
Operating costs and expenses | 0 | ||||||||||
Operating income (loss) | 0 | ||||||||||
Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | Operating segments | Search | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (6,497) | ||||||||||
Operating costs and expenses | 0 | ||||||||||
Operating income (loss) | (6,497) | ||||||||||
Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | Operating segments | Emerging & Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 7,292 | ||||||||||
Operating costs and expenses | 2,809 | ||||||||||
Operating income (loss) | 4,483 | ||||||||||
Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | Inter-segment eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | ||||||||||
Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | Corporate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating costs and expenses | 0 | ||||||||||
Operating income (loss) | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Lives of Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings and leasehold improvements | Minimum | |
Property and equipment, net: | |
Estimated useful lives, minimum (in years) | 3 years |
Buildings and leasehold improvements | Maximum | |
Property and equipment, net: | |
Estimated useful lives, minimum (in years) | 39 years |
Capitalized software and computer equipment | Minimum | |
Property and equipment, net: | |
Estimated useful lives, minimum (in years) | 2 years |
Capitalized software and computer equipment | Maximum | |
Property and equipment, net: | |
Estimated useful lives, minimum (in years) | 3 years |
Furniture and other equipment | Minimum | |
Property and equipment, net: | |
Estimated useful lives, minimum (in years) | 3 years |
Furniture and other equipment | Maximum | |
Property and equipment, net: | |
Estimated useful lives, minimum (in years) | 12 years |
INCOME TAXES - Income before In
INCOME TAXES - Income before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (74,360) | $ 269,267 | $ (141,519) |
Foreign | 46,054 | 36,304 | 10,725 |
Earnings (loss) before income taxes | $ (28,306) | $ 305,571 | $ (130,794) |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current income tax provision (benefit): | |||
Federal | $ (1,117) | $ (1,187) | $ (29,754) |
State | 197 | 1,514 | 2,262 |
Foreign | 3,201 | 4,108 | (1,175) |
Current income tax provision (benefit) | 2,281 | 4,435 | (28,667) |
Deferred income tax (benefit) provision: | |||
Federal | (51,952) | 20,156 | (118,744) |
State | (10,645) | (7,272) | (6,755) |
Foreign | (173) | (4,119) | (1,236) |
Deferred income tax (benefit) provision | (62,770) | 8,765 | (126,735) |
Income tax (benefit) provision | $ (60,489) | $ 13,200 | $ (155,402) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Tax Credit Carryforwards | ||||
Adjustment to net deferred tax liability | $ 10,100 | $ 44,300 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Income tax benefit related to net operating loss carryforwards | 70,800 | |||
Income tax benefit related to net operating loss carryforwards recorded as reduction to goodwill | 26,900 | |||
Tax credit carryforwards | 50,200 | 50,200 | ||
Tax credit carryforwards that can be carried forward indefinitely | 12,800 | |||
Tax credit carryforwards expiring primarily by 2018 and 2037 | 37,400 | |||
Gross deferred tax assets | 378,834 | 378,834 | $ 262,631 | |
Net deferred tax liabilities | 44,252 | 44,252 | 137,255 | |
Valuation Allowance | ||||
Increase (decrease) in valuation allowance | (6,200) | |||
Valuation allowance at end of period | 93,000 | 93,000 | ||
Income Taxes Paid, Net [Abstract] | ||||
Interest on income taxes accrued | 2,300 | 2,300 | 1,800 | |
Income tax penalties accrued | 200 | 200 | 200 | |
Unrecognized tax benefits including tax interest accrued | 20,300 | 20,300 | 17,200 | |
Tax positions for which the ultimate deductibility is highly certain but timing is uncertain | 18,900 | 18,900 | 16,100 | |
Change in unrecognized tax benefits unrelated to Federal income taxes statute of limitations expiring within twelve months of current reporting period | 10,600 | 10,600 | ||
Tax benefits that would impact effective tax rate | 10,300 | 10,300 | ||
Federal Tax Authority | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Net operating loss carryforwards | 506,300 | 506,300 | ||
Net operating loss carryforwards without restrictions | 200,900 | |||
State Tax Authority | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Net operating loss carryforwards | 552,800 | 552,800 | ||
Net operating loss carryforwards without restrictions | 248,500 | |||
Tax credit carryforwards | 2,400 | 2,400 | ||
Foreign Tax Authority | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Net operating loss carryforwards | 337,900 | 337,900 | ||
Net operating loss carryforwards not subject to expiration | 311,700 | |||
Net operating loss carryforwards subject to expiration within 20 years | 26,200 | |||
Tax credit carryforwards | 13,600 | 13,600 | ||
Tax credit carryforwards related to research and development | 34,200 | 34,200 | ||
Continuing Operations | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Gross deferred tax assets | 277,400 | 277,400 | ||
Net deferred tax liabilities | 31,500 | 31,500 | ||
Net deferred tax assets | 245,900 | 245,900 | ||
Income Taxes Paid, Net [Abstract] | ||||
Unrecognized tax (benefit) expense net of related deferred taxes | 100 | 100 | $ 100 | |
Deferred taxes for interest on unrecognized tax benefits (continuing operations) | 100 | 100 | $ 100 | |
Unrecognized tax benefits including tax interest accrued | $ 11,600 | $ 11,600 | $ 9,000 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 201,766 | $ 129,500 |
Stock-based compensation | 62,566 | 64,776 |
Long-term lease liabilities | 42,486 | 0 |
Tax credit carryforwards | 38,066 | 34,065 |
Accrued expenses | 12,911 | 17,577 |
Other | 21,039 | 16,713 |
Total deferred tax assets | 378,834 | 262,631 |
Less: valuation allowance | (92,990) | (86,778) |
Net deferred tax assets | 285,844 | 175,853 |
Deferred tax liabilities: | ||
Investment in subsidiaries | (240,420) | (240,590) |
Right-of-use assets | (29,654) | |
Intangible assets | (28,488) | (35,380) |
Investment in Pinterest | 0 | (23,018) |
Other | (31,534) | (14,120) |
Total deferred tax liabilities | (330,096) | (313,108) |
Net deferred tax assets | $ (44,252) | $ (137,255) |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax (benefit) provision at the federal statutory rate of 21% (35% for 2017) | $ (5,944) | $ 64,170 | $ (45,778) |
State income taxes, net of effect of federal tax benefit | (277) | 5,188 | (4,856) |
Stock-based compensation | (56,871) | (39,326) | (75,895) |
Non-deductible executive compensation | 7,409 | 2,983 | 123 |
Change in valuation allowance on capital losses | (5,815) | (1,280) | (825) |
Non-deductible expenses | 5,460 | 1,727 | 5,211 |
Research credit | (5,105) | (3,167) | (4,593) |
Withholding taxes | 1,008 | 703 | 510 |
Deferred tax adjustment for enacted changes in tax laws and rates | (687) | (13,646) | (68,513) |
Foreign income taxed at a different statutory tax rate | (672) | (866) | (6,087) |
Transition tax | 0 | 0 | 46,003 |
Other, net | 1,005 | (3,286) | (702) |
Income tax (benefit) provision | $ (60,489) | $ 13,200 | $ (155,402) |
INCOME TAXES - Income Tax Conti
INCOME TAXES - Income Tax Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | |||
Balance at beginning of the period | $ 15,451 | $ 14,528 | $ 12,766 |
Additions based on tax positions related to the current year | 2,781 | 1,455 | 1,399 |
Additions for tax positions of prior years | 238 | 235 | 870 |
Expiration of applicable statutes of limitations | (410) | (767) | (507) |
Balance at end of the period | $ 18,060 | $ 15,451 | $ 14,528 |
BUSINESS COMBINATION - Narrativ
BUSINESS COMBINATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | Sep. 29, 2017 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Write-off due to deferred revenue | $ 1,800 | $ 2,800 | ||
Angie's List | ||||
Business Acquisition [Line Items] | ||||
Proportion of voting interests acquired (as a percent) | 100.00% | |||
Total purchase price | $ 781,384 | |||
Basis of purchase price (shares) | 61.3 | |||
Share price (USD per share) | $ 12.46 | |||
Cash acquisition price | $ 1,900 | |||
Cash per share paid to acquiree shareholders' who elected payout (USD per share) | $ 8.50 | |||
Revenue | $ 58,900 | |||
Net earnings (loss) | (21,800) | |||
One-Time Acquisition-related Costs | ||||
Business Acquisition [Line Items] | ||||
Severance costs | 28,700 | |||
Severance and retention costs | 19,800 | |||
Write-off due to deferred revenue | 7,800 | |||
Adjustment to decrease in transaction related costs | 34,100 | |||
Modification of Equity Awards | ||||
Business Acquisition [Line Items] | ||||
Adjustment to increase (decrease) in share-based compensation | 77,100 | |||
Amortization Adjustment | ||||
Business Acquisition [Line Items] | ||||
Adjustment to decrease in amortization of intangible assets | $ (31,900) |
BUSINESS COMBINATION - Purchase
BUSINESS COMBINATION - Purchase Price (Details) - Angie's List $ in Thousands | Sep. 29, 2017USD ($) |
Business Acquisition [Line Items] | |
Cash consideration for holders who elected to receive $8.50 in cash per share of Angie's List common stock | $ 1,900 |
Total purchase price | 781,384 |
Common Stock | |
Business Acquisition [Line Items] | |
Consideration transferred, equity interests | 763,684 |
Cash consideration for holders who elected to receive $8.50 in cash per share of Angie's List common stock | 1,913 |
Common Stock | Fair value of vested and pro rata portion of unvested stock options attributable to pre-combination services | |
Business Acquisition [Line Items] | |
Consideration transferred, equity interests | 11,749 |
Common Stock | Fair value of the pro rata portion of unvested restricted stock units attributable to pre-combination services | |
Business Acquisition [Line Items] | |
Consideration transferred, equity interests | $ 4,038 |
BUSINESS COMBINATION - Prelimin
BUSINESS COMBINATION - Preliminary Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 29, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,616,867 | $ 1,484,117 | $ 1,313,514 | |
Angie's List | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 44,270 | |||
Other current assets | 11,280 | |||
Property and equipment | 16,341 | |||
Goodwill | 543,674 | |||
Intangible assets | 317,300 | |||
Total assets | 932,865 | |||
Deferred revenue | (32,595) | |||
Other current liabilities | (46,150) | |||
Long-term debt—related party | (61,498) | |||
Deferred income taxes | (9,833) | |||
Other long-term liabilities | (1,405) | |||
Net assets acquired | $ 781,384 |
BUSINESS COMBINATION - Prelim_2
BUSINESS COMBINATION - Preliminary Estimated Fair Value of Intangible Assets Acquired (Details) - USD ($) $ in Thousands | Sep. 29, 2017 | Dec. 31, 2019 |
Acquired Intangible Assets [Line Items] | ||
Weighted-Average Useful Life (Years) | 18 months | |
Angie's List | ||
Acquired Intangible Assets [Line Items] | ||
Total identifiable intangible assets acquired | $ 317,300 | |
Angie's List | Service providers | ||
Acquired Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired | $ 90,500 | |
Weighted-Average Useful Life (Years) | 3 years | |
Angie's List | Developed technology | ||
Acquired Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired | $ 63,900 | |
Weighted-Average Useful Life (Years) | 6 years | |
Angie's List | Memberships | ||
Acquired Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired | $ 15,900 | |
Weighted-Average Useful Life (Years) | 3 years | |
Angie's List | User base | ||
Acquired Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired | $ 10,000 | |
Weighted-Average Useful Life (Years) | 1 year | |
Angie's List | Indefinite-lived trade names and trademarks | ||
Acquired Intangible Assets [Line Items] | ||
Indefinite-lived trade name and trademarks | $ 137,000 |
BUSINESS COMBINATION - Pro-Form
BUSINESS COMBINATION - Pro-Forma Financial Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Business Acquisition, Pro Forma Information [Abstract] | |
Revenue | $ 2,174,968 |
Net earnings attributable to Old IAC equity in IAC Holdings, Inc. | $ 96,578 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 1,616,867 | $ 1,484,117 | $ 1,313,514 |
Intangible assets with indefinite lives | 225,296 | 227,420 | |
Intangible assets with definite lives, net of accumulated amortization | 124,854 | 166,362 | |
Total goodwill and intangible assets, net | $ 1,967,017 | $ 1,877,899 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Goodwill by Reporting Unit (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)reportingunitoperating_segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Goodwill | |||||
Balance at beginning of period | $ 1,484,117 | $ 1,313,514 | |||
Additions | 165,313 | 197,236 | |||
(Deductions) | (29,293) | (22,264) | |||
Impairment | (3,318) | ||||
Foreign Exchange Translation | 48 | (4,369) | |||
Balance at end of period | $ 1,616,867 | $ 1,484,117 | 1,616,867 | 1,484,117 | $ 1,313,514 |
Goodwill impairment | 3,318 | 0 | 0 | ||
College Humor Media | |||||
Goodwill | |||||
Goodwill impairment | 3,300 | ||||
ANGI Homeservices | |||||
Goodwill | |||||
Balance at beginning of period | 895,071 | 770,664 | |||
Additions | 18,326 | 142,768 | |||
(Deductions) | (29,293) | (14,449) | |||
Impairment | 0 | 0 | |||
Foreign Exchange Translation | 192 | (3,912) | |||
Balance at end of period | 884,296 | 895,071 | 884,296 | 895,071 | 770,664 |
Vimeo | |||||
Goodwill | |||||
Balance at beginning of period | 77,152 | 77,303 | |||
Additions | 142,222 | 0 | |||
(Deductions) | 0 | (151) | |||
Impairment | 0 | 0 | |||
Foreign Exchange Translation | 0 | 0 | |||
Balance at end of period | 219,374 | 77,152 | 219,374 | 77,152 | 77,303 |
Search | |||||
Goodwill | |||||
Balance at beginning of period | 265,146 | 265,146 | |||
Additions | 0 | 0 | |||
(Deductions) | 0 | 0 | |||
Impairment | 0 | 0 | |||
Foreign Exchange Translation | 0 | 0 | |||
Balance at end of period | 265,146 | 265,146 | 265,146 | 265,146 | 265,146 |
Accumulated goodwill impairment loss | 716,200 | 716,200 | |||
Emerging & Other | |||||
Goodwill | |||||
Balance at beginning of period | 246,748 | 200,401 | |||
Additions | 4,765 | 54,468 | |||
(Deductions) | 0 | (7,664) | |||
Impairment | (3,318) | 0 | |||
Foreign Exchange Translation | (144) | (457) | |||
Balance at end of period | 248,051 | 246,748 | 248,051 | 246,748 | $ 200,401 |
Emerging & Other | College Humor Media | |||||
Goodwill | |||||
Goodwill impairment | 3,300 | ||||
Accumulated goodwill impairment loss | 14,900 | $ 11,600 | 14,900 | 11,600 | |
Publishing | |||||
Goodwill | |||||
Number of operating segments | operating_segment | 1 | ||||
Number of reporting units | reportingunit | 1 | ||||
Dotdash | |||||
Goodwill | |||||
Accumulated goodwill impairment loss | $ 198,300 | $ 198,300 | $ 198,300 | $ 198,300 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets with Definite Lives (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible assets with definite lives | ||
Gross Carrying Amount | $ 326,308 | $ 290,924 |
Accumulated Amortization | (201,454) | (124,562) |
Total | $ 124,854 | $ 166,362 |
Weighted-Average Useful Life (Years) | 3 years 8 months 12 days | 3 years 8 months 12 days |
Technology | ||
Intangible assets with definite lives | ||
Gross Carrying Amount | $ 143,255 | $ 132,588 |
Accumulated Amortization | (73,483) | (48,339) |
Total | $ 69,772 | $ 84,249 |
Weighted-Average Useful Life (Years) | 4 years 6 months | 4 years 7 months 6 days |
Service professional relationships | ||
Intangible assets with definite lives | ||
Gross Carrying Amount | $ 99,651 | $ 99,528 |
Accumulated Amortization | (76,445) | (44,674) |
Total | $ 23,206 | $ 54,854 |
Weighted-Average Useful Life (Years) | 2 years 10 months 24 days | 2 years 10 months 24 days |
Customer lists and user base | ||
Intangible assets with definite lives | ||
Gross Carrying Amount | $ 44,286 | $ 29,829 |
Accumulated Amortization | (24,226) | (14,857) |
Total | $ 20,060 | $ 14,972 |
Weighted-Average Useful Life (Years) | 3 years 3 months 18 days | 2 years 10 months 24 days |
Memberships | ||
Intangible assets with definite lives | ||
Gross Carrying Amount | $ 15,900 | $ 15,900 |
Accumulated Amortization | (11,940) | (6,640) |
Total | $ 3,960 | $ 9,260 |
Weighted-Average Useful Life (Years) | 3 years | 3 years |
Trade names | ||
Intangible assets with definite lives | ||
Gross Carrying Amount | $ 12,777 | $ 7,579 |
Accumulated Amortization | (8,082) | (4,579) |
Total | $ 4,695 | $ 3,000 |
Weighted-Average Useful Life (Years) | 3 years 6 months | 3 years 10 months 24 days |
Other | ||
Intangible assets with definite lives | ||
Gross Carrying Amount | $ 10,439 | $ 5,500 |
Accumulated Amortization | (7,278) | (5,473) |
Total | $ 3,161 | $ 27 |
Weighted-Average Useful Life (Years) | 3 years 4 months 24 days | 4 years 7 months 6 days |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Expected Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 61,792 | |
2021 | 26,108 | |
2022 | 21,830 | |
2023 | 12,306 | |
2024 | 1,316 | |
Thereafter | 1,502 | |
Total | $ 124,854 | $ 166,362 |
FINANCIAL INSTRUMENTS AND FAI_3
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2019USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale marketable debt securities in a continuous unrealized loss position for longer than twelve months | $ 0 | |||
Proceeds from maturities and sales of available-for-sale marketable debt securities | $ 25,000,000 | 35,000,000 | ||
Gross realized gains (losses) | 0 | 0 | ||
Equity securities without readily determinable fair values | 347,975,000 | 225,979,000 | ||
Net gain (loss) on equity securities without readily determinable fair value | 19,700,000 | |||
Cumulative downward price adjustments to equity securities without readily determinable fair value | 900,000 | |||
Other-than-temporary impairment charges on equity method investments | 600,000 | $ 2,700,000 | ||
Other-than-temporary impairment charges on cost-method investments | $ 7,200,000 | |||
Maximum contingent payment | 45,000,000 | |||
Gross fair value of contingent consideration arrangement | 12,500,000 | |||
Non-current portion of contingent consideration arrangement liability | 6,900,000 | $ 26,700,000 | ||
Turo | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Equity securities without readily determinable fair values | $ 250,000,000 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Net gain (loss) on equity securities without readily determinable fair value | $ 20,500,000 | |||
Discount Rate | Contingent Consideration Arrangements | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Measurement input (as a percent) | 0.25 |
FINANCIAL INSTRUMENTS AND FAI_4
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Fair Value of Marketable Securities (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Fair Value Disclosures [Abstract] | |
Available-for-sale marketable debt securities | $ 24,947 |
Marketable equity security | 419 |
Total marketable securities | $ 25,366 |
FINANCIAL INSTRUMENTS AND FAI_5
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Current Available-for-Sale Marketable Securities (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Amortized Cost | $ 24,947 |
Gross Unrealized Gains | 1 |
Gross Unrealized Losses | (1) |
Fair Value | 24,947 |
Treasury discount notes | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized Cost | 24,947 |
Gross Unrealized Gains | 1 |
Gross Unrealized Losses | (1) |
Fair Value | $ 24,947 |
FINANCIAL INSTRUMENTS AND FAI_6
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Long-Term Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Equity securities without readily determinable fair values | $ 347,975 | $ 225,979 |
Total long-term investments | $ 347,975 | $ 225,979 |
FINANCIAL INSTRUMENTS AND FAI_7
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Realized and Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Adjustments to Carrying Value of Equity Securities without Readily Determinable Fair Value [Abstract] | ||
Upward adjustments (gross unrealized gains) | $ 19,698 | $ 128,786 |
Downward adjustments including impairments (gross unrealized losses) | 1,193 | 2,838 |
Total | 18,505 | 125,948 |
Adjustments to Carrying Value of Non-Marketable Equity Securities [Abstract] | ||
Realized gains, net, for equity securities sold | 22,880 | 27,366 |
Unrealized gains, net, on equity securities held | 18,505 | 126,063 |
Total gains, net, recognized in other income, net | $ 41,385 | $ 153,429 |
FINANCIAL INSTRUMENTS AND FAI_8
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Financial Instruments Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 24,947 | |
Marketable equity security | 419 | |
Total | $ 731,159 | 809,324 |
Contingent consideration arrangements | (6,918) | (26,657) |
Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity security | 419 | |
Total | 699,589 | 616,496 |
Contingent consideration arrangements | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity security | 0 | |
Total | 23,075 | 192,828 |
Contingent consideration arrangements | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity security | 0 | |
Total | 8,495 | 0 |
Contingent consideration arrangements | (6,918) | (26,657) |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 699,589 | 616,077 |
Money market funds | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 699,589 | 616,077 |
Money market funds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Money market funds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Treasury discount notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 99,914 | |
Marketable securities | 24,947 | |
Treasury discount notes | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Marketable securities | 0 | |
Treasury discount notes | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 99,914 | |
Marketable securities | 24,947 | |
Treasury discount notes | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Marketable securities | 0 | |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 52,931 | |
Commercial paper | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Commercial paper | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 52,931 | |
Commercial paper | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 23,075 | 15,036 |
Time deposits | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Time deposits | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 23,075 | 15,036 |
Time deposits | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | $ 0 |
Warrant | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other non-current assets | 8,495 | |
Warrant | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other non-current assets | 0 | |
Warrant | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other non-current assets | 0 | |
Warrant | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other non-current assets | $ 8,495 |
FINANCIAL INSTRUMENTS AND FAI_9
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Unobservable Inputs of Fair Value Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Contingent Consideration Arrangements | ||
Contingent Consideration Arrangement [Roll Forward] | ||
Balance at January 1 | $ (26,657) | $ 0 |
Fair value at date of acquisition | 0 | (25,521) |
Fair value adjustments | 19,739 | (1,136) |
Balance at December 31 | (6,918) | (26,657) |
Warrant | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at January 1 | 0 | |
Fair value at date of acquisition | 17,618 | |
Fair value adjustments | (9,123) | |
Balance at December 31 | $ 8,495 | $ 0 |
FINANCIAL INSTRUMENTS AND FA_10
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Carrying Value and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable—related party | $ 55,251 | $ 0 |
Current portion of long-term debt | (13,750) | (13,750) |
Long-term debt, net | (231,946) | (244,971) |
Long-term debt—related party | 0 | (2,500) |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable—related party | 55,251 | 0 |
Current portion of long-term debt | (13,750) | (13,750) |
Long-term debt, net | (231,946) | (244,971) |
Long-term debt—related party | 0 | (2,500) |
Unamortized original issue discount and debt issuance costs | 1,800 | 2,500 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable—related party | 55,251 | 0 |
Current portion of long-term debt | (13,681) | (12,753) |
Long-term debt, net | (232,581) | (229,556) |
Long-term debt—related party | $ 0 | $ (2,529) |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) | Dec. 31, 2018USD ($) | Nov. 05, 2018USD ($) | Nov. 05, 2023USD ($) | Dec. 31, 2022USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2017USD ($) | Nov. 01, 2017USD ($) |
ANGI Homeservices | Term Loan | |||||||||
Debt Instrument | |||||||||
Face amount of debt instrument | $ 275,000,000 | ||||||||
ANGI Term Loan due November 5, 2023 | ANGI Homeservices | Term Loan | |||||||||
Debt Instrument | |||||||||
Interest rate (as a percent) | 3.25% | 3.98% | |||||||
ANGI Term Loan due November 5, 2023 | ANGI Homeservices | Term Loan | Maximum | |||||||||
Debt Instrument | |||||||||
Leverage ratio | 4.5 | ||||||||
Leverage ratio limiting ability to pay dividends, make distributions, or repurchase stock | 4.25 | ||||||||
ANGI Term Loan due November 5, 2023 | ANGI Homeservices | Term Loan | Minimum | |||||||||
Debt Instrument | |||||||||
Interest coverage ratio | 2 | ||||||||
ANGI Term Loan due November 5, 2023 | ANGI Homeservices | Term Loan | Forecast | |||||||||
Debt Instrument | |||||||||
Quarterly principal payments | $ 10,300,000 | $ 6,900,000 | $ 3,400,000 | ||||||
Final principal payment | $ 161,600,000 | ||||||||
ANGI Term Loan due November 5, 2023 | ANGI Homeservices | Term Loan | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument | |||||||||
Basis spread on variable rate (as a percent) | 1.50% | 1.50% | |||||||
Revolving Credit Facility | ANGI Homeservices Credit Facility | ANGI Homeservices | |||||||||
Debt Instrument | |||||||||
Term of debt instrument | 5 years | ||||||||
Maximum borrowing capacity | $ 250,000,000 | ||||||||
Outstanding borrowings | $ 0 | $ 0 | $ 0 | ||||||
Line of Credit Facility, Commitment Fee Percentage | 0.25% | 0.25% | |||||||
Revolving Credit Facility | IAC Credit Facility | |||||||||
Debt Instrument | |||||||||
Maximum borrowing capacity | $ 250,000,000 | ||||||||
Outstanding borrowings | $ 0 | $ 0 | |||||||
Line of Credit Facility, Commitment Fee Percentage | 0.20% | 0.20% | |||||||
Revolving Credit Facility | IAC Credit Facility | Maximum | |||||||||
Debt Instrument | |||||||||
Leverage ratio | 2.75 | 3.25 |
LONG-TERM DEBT - Summary (Detai
LONG-TERM DEBT - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument | ||
Total long-term debt | $ 247,500 | |
Less: current portion of long-term debt | 13,750 | $ 13,750 |
Less: unamortized debt issuance costs | 1,804 | 2,529 |
Long-term debt, net | 231,946 | 244,971 |
ANGI Homeservices | Term Loan | ANGI Term Loan due November 5, 2023 | ||
Debt Instrument | ||
Total long-term debt | $ 247,500 | $ 261,250 |
LONG-TERM DEBT - Aggregate Cont
LONG-TERM DEBT - Aggregate Contractual Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 13,750 | |
2021 | 13,750 | |
2022 | 27,500 | |
2023 | 192,500 | |
Total | 247,500 | |
Less: current portion of long-term debt | 13,750 | $ 13,750 |
Less: unamortized debt issuance costs | 1,804 | 2,529 |
Long-term debt, net | $ 231,946 | $ 244,971 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Loss | |||
Balance at beginning of period | $ 2,684,400 | $ 2,256,320 | $ 1,250,920 |
Other comprehensive (loss) income before reclassifications | 335 | (4,974) | 14,408 |
Amounts reclassified to earnings | 0 | (52) | (41) |
Other comprehensive loss | 335 | (5,026) | 14,367 |
Allocation of accumulated other comprehensive loss related to noncontrolling interests | 20 | 11 | 7 |
Balance at end of period | 3,005,146 | 2,684,400 | 2,256,320 |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Loss | |||
Balance at beginning of period | (12,543) | (7,504) | (21,864) |
Other comprehensive (loss) income before reclassifications | 337 | (4,976) | 14,408 |
Amounts reclassified to earnings | (52) | (41) | |
Other comprehensive loss | 337 | (5,028) | 14,367 |
Allocation of accumulated other comprehensive loss related to noncontrolling interests | 20 | 11 | 7 |
Balance at end of period | (12,226) | (12,543) | (7,504) |
Unrealized Gains On Available-For-Sale Securities | |||
Accumulated Other Comprehensive Loss | |||
Balance at beginning of period | 2 | 0 | |
Other comprehensive (loss) income before reclassifications | (2) | 2 | |
Amounts reclassified to earnings | 0 | ||
Other comprehensive loss | (2) | 2 | |
Allocation of accumulated other comprehensive loss related to noncontrolling interests | 0 | 0 | |
Balance at end of period | 0 | 2 | 0 |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Loss | |||
Balance at beginning of period | (12,541) | (7,504) | (21,864) |
Balance at end of period | $ (12,226) | $ (12,541) | $ (7,504) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | |||
Tax (benefit) provision related to unrealized gains/losses on available-for-sale securities | $ 0 | $ 0 | $ 0 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Unrecognized compensation cost, net of estimated forfeitures | $ 158,300 | |||
Weighted-average period over which cost is expected to be recognized | 2 years 2 months 12 days | |||
Income tax benefit | $ 60,489 | $ (13,200) | $ 155,402 | |
Aggregate intrinsic value of stock options | $ 871,800 | |||
Withholding rate (as a percent) | 50.00% | |||
Number of shares required to settle vested and unvested interests at fair value (shares) | 100,000 | |||
Cash required to settle vested and unvested interests at fair value | $ 20,200 | |||
Incremental compensation cost | $ 6,600 | |||
Aggregate intrinsic value of equity instruments other than options | 40,500 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Income tax benefit | $ 82,400 | 80,700 | 124,200 | |
Vesting period | 4 years | |||
Employee Stock Options, Net Settled | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Income tax benefit | $ 64,200 | 63,600 | 95,100 | |
Market-Based Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Aggregate withholding taxes assuming net settlement of awards | $ 435,900 | |||
Withholding rate (as a percent) | 50.00% | |||
Market-Based Stock Options - Vested | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Aggregate withholding taxes assuming net settlement of awards | $ 345,800 | |||
Market-Based Stock Options - Unvested | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Aggregate withholding taxes assuming net settlement of awards | $ 90,100 | |||
PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of awards outstanding (shares) | 0 | |||
Restricted Stock Units (RSUs) & Market Based Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Aggregate withholding taxes assuming net settlement of awards | $ 45,800 | |||
Withholding rate (as a percent) | 50.00% | |||
Number of shares required to settle vested and unvested interests at fair value (shares) | 200,000 | |||
Aggregate intrinsic value of equity instruments other than options | $ 91,600 | |||
RSUs | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting period | 4 years | |||
RSUs | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting period | 3 years | |||
Market-Based Stock Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting period | 5 years | |||
Market-Based Stock Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting period | 3 years | |||
ANGI Homeservices | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Withholding rate (as a percent) | 50.00% | |||
Cash withholding obligation | $ 43,400 | |||
Cash withholding obligation equivalent (shares) | 5,100,000 | |||
Incremental compensation cost | $ 13,100 | 7,900 | ||
Incremental compensation cost from modification recognized in year of modification | 3,900 | |||
Aggregate intrinsic value of equity instruments other than options | $ 86,800 | |||
ANGI Homeservices | Stock Appreciation Rights (SARs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Withholding rate (as a percent) | 50.00% | |||
Cash required to settle vested and unvested interests at fair value | $ 57,300 | |||
Common stock issued (shares) | 6,800,000 | |||
Incremental compensation cost | $ 217,700 | |||
Incremental compensation cost from modification recognized in year of modification | 29,000 | $ 56,900 | $ 93,400 | |
Aggregate intrinsic value of equity instruments other than options | $ 114,600 |
SEGMENT INFORMATION - Segment R
SEGMENT INFORMATION - Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 670,514 | $ 705,382 | $ 688,685 | $ 641,220 | $ 646,762 | $ 660,649 | $ 637,928 | $ 587,709 | $ 2,705,801 | $ 2,533,048 | $ 1,952,607 |
Operating Segments | ANGI Homeservices | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,326,205 | 1,132,241 | 736,386 | ||||||||
Operating Segments | Vimeo | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 196,015 | 159,641 | 103,332 | ||||||||
Operating Segments | Dotdash | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 167,594 | 130,991 | 90,890 | ||||||||
Operating Segments | Search | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 742,184 | 823,950 | 738,474 | ||||||||
Operating Segments | Emerging & Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 274,107 | 286,586 | 284,132 | ||||||||
Inter-segment elimination | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ (304) | $ (361) | $ (607) |
SEGMENT INFORMATION - Revenue D
SEGMENT INFORMATION - Revenue Disaggregated by Service (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 670,514 | $ 705,382 | $ 688,685 | $ 641,220 | $ 646,762 | $ 660,649 | $ 637,928 | $ 587,709 | $ 2,705,801 | $ 2,533,048 | $ 1,952,607 |
Operating Segments | ANGI Homeservices | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,326,205 | 1,132,241 | 736,386 | ||||||||
Operating Segments | Vimeo | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 196,015 | 159,641 | 103,332 | ||||||||
Operating Segments | Dotdash | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 167,594 | 130,991 | 90,890 | ||||||||
Operating Segments | Search | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 742,184 | 823,950 | 738,474 | ||||||||
Operating Segments | Emerging & Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 274,107 | 286,586 | 284,132 | ||||||||
North America | Operating Segments | ANGI Homeservices | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,249,892 | 1,062,171 | 678,897 | ||||||||
Europe | Operating Segments | ANGI Homeservices | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 76,313 | 70,070 | 57,489 | ||||||||
Marketplace | Operating Segments | Emerging & Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 38,950 | 19,665 | 0 | ||||||||
Marketplace | North America | Operating Segments | ANGI Homeservices | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 985,210 | 774,495 | 581,414 | ||||||||
Consumer Connection | North America | Operating Segments | ANGI Homeservices | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 913,533 | 704,341 | 521,481 | ||||||||
Membership Subscription | North America | Operating Segments | ANGI Homeservices | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 64,706 | 66,214 | 56,135 | ||||||||
Other | North America | Operating Segments | ANGI Homeservices | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 6,971 | 3,940 | 3,798 | ||||||||
Advertising and Other | North America | Operating Segments | ANGI Homeservices | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 264,682 | 287,676 | 97,483 | ||||||||
Advertising and Other | Europe | Operating Segments | ANGI Homeservices | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,471 | 1,795 | 884 | ||||||||
Consumer Connection | Europe | Operating Segments | ANGI Homeservices | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 59,611 | 50,913 | 40,009 | ||||||||
Membership Subscription | Operating Segments | Emerging & Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 194,362 | 102,592 | 25,554 | ||||||||
Membership Subscription | Europe | Operating Segments | ANGI Homeservices | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 14,231 | 17,362 | 16,596 | ||||||||
Service | Operating Segments | Emerging & Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 3,881 | 22,142 | 27,465 | ||||||||
Platform | Operating Segments | Vimeo | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 193,736 | 146,665 | 99,650 | ||||||||
Hardware | Operating Segments | Vimeo | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,279 | 12,976 | 3,682 | ||||||||
Advertising | Operating Segments | Dotdash | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 126,487 | 103,704 | 76,316 | ||||||||
Advertising | Operating Segments | Search | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 725,994 | 802,469 | 703,186 | ||||||||
Advertising | Operating Segments | Emerging & Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 27,858 | 78,712 | 91,706 | ||||||||
Google Advertising | Operating Segments | Search | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 678,438 | 770,494 | 689,633 | ||||||||
Google Advertising | Operating Segments | Emerging & Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 4,486 | 14,393 | 16,716 | ||||||||
Other | Operating Segments | Search | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 47,556 | 31,975 | 13,553 | ||||||||
Other | Operating Segments | Emerging & Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 23,372 | 64,319 | 74,990 | ||||||||
Affiliate Commerce Commission | Operating Segments | Dotdash | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 41,107 | 27,287 | 14,574 | ||||||||
Media Production and Distribution | Operating Segments | Emerging & Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 8,897 | 61,717 | 138,006 | ||||||||
Other | Operating Segments | Search | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 16,190 | 21,481 | 35,288 | ||||||||
Other | Operating Segments | Emerging & Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 159 | $ 1,758 | $ 1,401 |
SEGMENT INFORMATION - Revenue a
SEGMENT INFORMATION - Revenue and Long-Lived Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue and Long-lived Assets by Geography | |||
Revenue: | $ 2,705,801 | $ 2,533,048 | $ 1,952,607 |
Long-lived assets (excluding goodwill and intangible assets) | 305,414 | 260,448 | |
United States | |||
Revenue and Long-lived Assets by Geography | |||
Revenue: | 2,097,743 | 1,951,957 | 1,569,275 |
Long-lived assets (excluding goodwill and intangible assets) | 297,433 | 254,751 | |
All other countries | |||
Revenue and Long-lived Assets by Geography | |||
Revenue: | 608,058 | 581,091 | $ 383,332 |
Long-lived assets (excluding goodwill and intangible assets) | $ 7,981 | $ 5,697 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Adjusted EBITDA to Operating Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting, Other Significant Reconciling Item | |||||||||||
Operating (loss) income | $ (16,408) | $ 13,912 | $ (13,770) | $ (34,183) | $ (11,465) | $ 39,177 | $ 24,479 | $ (16,356) | $ (50,449) | $ 35,835 | $ (164,632) |
Stock-based compensation expense | 134,338 | 148,405 | 192,005 | ||||||||
Depreciation | 55,949 | 42,393 | 40,816 | ||||||||
Amortization of intangibles | 83,868 | 107,081 | 39,150 | ||||||||
Goodwill Impairment | 3,318 | 0 | 0 | ||||||||
Interest expense | (11,904) | (13,059) | (2,181) | ||||||||
Other expense, net | 33,627 | 282,470 | 12,363 | ||||||||
(Loss) earnings before income taxes | (28,306) | 305,571 | (130,794) | ||||||||
Income tax benefit | 60,489 | (13,200) | 155,402 | ||||||||
Net earnings | 5,457 | 18,378 | 22,021 | (13,673) | 94,728 | 38,163 | 164,482 | (5,002) | 32,183 | 292,371 | 24,608 |
Net (earnings) loss attributable to noncontrolling interests | (9,288) | (45,599) | 12,398 | ||||||||
Net earnings attributable to Old IAC equity in IAC Holdings, Inc. | $ 6,887 | $ 16,466 | $ 13,789 | $ (14,247) | $ 89,294 | $ 34,601 | $ 125,686 | $ (2,809) | 22,895 | 246,772 | 37,006 |
Operating Segments | ANGI Homeservices | |||||||||||
Segment Reporting, Other Significant Reconciling Item | |||||||||||
Operating (loss) income | 38,645 | 63,906 | (149,176) | ||||||||
Stock-based compensation expense | 68,255 | 97,078 | 149,230 | ||||||||
Depreciation | 39,915 | 24,310 | 14,543 | ||||||||
Amortization of intangibles | 55,482 | 62,212 | 23,261 | ||||||||
Goodwill Impairment | 0 | ||||||||||
Acquisition-related Contingent Consideration Fair Value Adjustments | 0 | 0 | 0 | ||||||||
Adjusted EBITDA | 202,297 | 247,506 | 37,858 | ||||||||
Operating Segments | Vimeo | |||||||||||
Segment Reporting, Other Significant Reconciling Item | |||||||||||
Operating (loss) income | (51,921) | (35,594) | (27,328) | ||||||||
Stock-based compensation expense | 0 | 0 | 0 | ||||||||
Depreciation | 478 | 1,200 | 1,408 | ||||||||
Amortization of intangibles | 9,653 | 6,349 | 2,313 | ||||||||
Goodwill Impairment | 0 | ||||||||||
Acquisition-related Contingent Consideration Fair Value Adjustments | 0 | 0 | 0 | ||||||||
Adjusted EBITDA | (41,790) | (28,045) | (23,607) | ||||||||
Operating Segments | Dotdash | |||||||||||
Segment Reporting, Other Significant Reconciling Item | |||||||||||
Operating (loss) income | 29,021 | 18,778 | (15,694) | ||||||||
Stock-based compensation expense | 0 | 0 | 0 | ||||||||
Depreciation | 974 | 969 | 2,255 | ||||||||
Amortization of intangibles | 9,606 | 1,637 | 10,676 | ||||||||
Goodwill Impairment | 0 | ||||||||||
Acquisition-related Contingent Consideration Fair Value Adjustments | 0 | 0 | 0 | ||||||||
Adjusted EBITDA | 39,601 | 21,384 | (2,763) | ||||||||
Operating Segments | Search | |||||||||||
Segment Reporting, Other Significant Reconciling Item | |||||||||||
Operating (loss) income | 122,347 | 151,425 | 153,986 | ||||||||
Stock-based compensation expense | 0 | 0 | 0 | ||||||||
Depreciation | 1,816 | 3,311 | 6,026 | ||||||||
Amortization of intangibles | 0 | 28,169 | 2,011 | ||||||||
Goodwill Impairment | 0 | ||||||||||
Acquisition-related Contingent Consideration Fair Value Adjustments | 0 | 0 | 0 | ||||||||
Adjusted EBITDA | 124,163 | 182,905 | 162,023 | ||||||||
Operating Segments | Emerging & Other | |||||||||||
Segment Reporting, Other Significant Reconciling Item | |||||||||||
Operating (loss) income | (21,790) | (26,627) | (780) | ||||||||
Stock-based compensation expense | 0 | 919 | 401 | ||||||||
Depreciation | 715 | 969 | 1,066 | ||||||||
Amortization of intangibles | 9,127 | 8,714 | 889 | ||||||||
Goodwill Impairment | 3,318 | ||||||||||
Acquisition-related Contingent Consideration Fair Value Adjustments | (19,738) | 1,136 | 548 | ||||||||
Adjusted EBITDA | (28,368) | (14,889) | 2,124 | ||||||||
Corporate | |||||||||||
Segment Reporting, Other Significant Reconciling Item | |||||||||||
Operating (loss) income | (166,751) | (136,053) | (125,640) | ||||||||
Stock-based compensation expense | 66,083 | 50,408 | 42,374 | ||||||||
Depreciation | 12,051 | 11,634 | 15,518 | ||||||||
Amortization of intangibles | 0 | 0 | 0 | ||||||||
Goodwill Impairment | 0 | ||||||||||
Acquisition-related Contingent Consideration Fair Value Adjustments | 0 | 0 | 0 | ||||||||
Adjusted EBITDA | $ (88,617) | $ (74,011) | $ (67,748) |
SEGMENT INFORMATION - Capital E
SEGMENT INFORMATION - Capital Expenditures by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 97,898 | $ 54,680 | $ 46,153 |
Operating Segments | ANGI Homeservices | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 68,804 | 46,976 | 26,837 |
Operating Segments | Vimeo | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 2,801 | 209 | 109 |
Operating Segments | Dotdash | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 102 | 825 | |
Operating Segments | Search | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 43 | 479 | 251 |
Operating Segments | Emerging & Other | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 387 | 751 | 291 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 25,863 | $ 6,163 | $ 17,840 |
LEASES - Balance Sheet Informat
LEASES - Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Right-of-use assets, net | $ 138,608 | $ 0 |
Liabilities: | ||
Current lease liabilities | 23,188 | |
Long-term lease liabilities | 168,321 | |
Total lease liabilities | $ 191,509 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | $ 30,413 |
Variable lease cost | 7,776 |
Lease cost | 38,189 |
Short-term lease cost | $ 2,200 |
Schedule of Restricted Cash | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the combined balance sheet to the total amounts shown in the combined statement of cash flows: December 31, 2019 December 31, 2018 December 31, 2017 December 31, 2016 (In thousands) Cash and cash equivalents $ 839,796 $ 884,975 $ 757,202 $ 521,416 Restricted cash included in other current assets 527 1,441 2,737 204 Restricted cash included in other assets 409 420 — 10,548 Total cash and cash equivalents and restricted cash as shown on the combined statement of cash flows $ 840,732 $ 886,836 $ 759,939 $ 532,168 |
Sublease income | $ 7,600 |
Cost of sales | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | 547 |
Variable lease cost | 83 |
Selling and marketing expense | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | 10,613 |
Variable lease cost | 1,573 |
General and administrative expense | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | 17,751 |
Variable lease cost | 5,729 |
Product development expense | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | 1,502 |
Variable lease cost | $ 391 |
LEASES - Operating Lease Liabil
LEASES - Operating Lease Liabilities Maturities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 32,688 |
2021 | 30,200 |
2022 | 27,543 |
2023 | 25,838 |
2024 | 23,318 |
Thereafter | 221,479 |
Total | 361,066 |
Less: Interest | 169,557 |
Present value of lease liabilities | 191,509 |
Lease payments for leases signed but not yet commenced | $ 37,300 |
LEASES - Weighted-Average Remai
LEASES - Weighted-Average Remaining Term and Discount Rate (Details) | Dec. 31, 2019 |
Leases [Abstract] | |
Remaining lease term | 17 years 4 months 24 days |
Discount rate (as a percent) | 6.12% |
LEASES - Other Information (Det
LEASES - Other Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Right-of-use assets obtained in exchange for lease liabilities | $ 61,657 |
Cash paid for amounts included in the measurement of lease liabilities | $ 35,321 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Commercial Commitments Outstanding (Details) - Purchase obligations $ in Thousands | Dec. 31, 2019USD ($) |
Other Commitments | |
Less Than 1 Year | $ 75,243 |
1-3 Years | 41,423 |
3-5 Years | 0 |
More Than 5 Years | 0 |
Total Amounts Committed | $ 116,666 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Narrative (Details) | Jun. 13, 2019plaintiff | Aug. 31, 2018plaintiff | Aug. 14, 2018USD ($)plaintiff | Dec. 31, 2019USD ($)minimum_payment |
Loss Contingencies [Line Items] | ||||
Loss contingency accrual | $ 0 | |||
Tinder Optionholder Litigation | ||||
Loss Contingencies [Line Items] | ||||
Number of plaintiffs | plaintiff | 6 | 10 | ||
Number of plaintiffs who filed a discontinuance of claims | plaintiff | 2 | 4 | ||
Tinder Optionholder Litigation | Pending Litigation | ||||
Loss Contingencies [Line Items] | ||||
Damages sought | $ 2,000,000,000 | |||
Purchase Commitment - Three Year Cloud Computing | ||||
Loss Contingencies [Line Items] | ||||
Purchase obligations | 150,000,000 | |||
Payments of commercial commitments | 50,000,000 | |||
Prepaid asset | $ 8,700,000 | |||
Number of remaining minimum payments | minimum_payment | 2 | |||
Commercial commitments due in the next two years | $ 10,000,000 | |||
Purchase Commitment - Three Year Cloud Computing | New IAC | ||||
Loss Contingencies [Line Items] | ||||
Purchase obligations | 20,000,000 | |||
Purchase Commitment - Three Year Cloud Computing | Match Group | ||||
Loss Contingencies [Line Items] | ||||
Purchase obligations | 80,000,000 | |||
Purchase Commitment - Two Year Cloud Computing | ||||
Loss Contingencies [Line Items] | ||||
Commercial commitments due in the next two years | 59,300,000 | |||
Commercial commitments due in the next twelve months | 40,900,000 | |||
Commercial commitments due in 2021 | 18,300,000 | |||
Purchase Commitments - Advertising | ||||
Loss Contingencies [Line Items] | ||||
Commercial commitments due in the next twelve months | 23,800,000 | |||
Purchase obligations | ||||
Loss Contingencies [Line Items] | ||||
Purchase obligations | 116,666,000 | |||
Commercial commitments due in the next twelve months | 75,243,000 | |||
Remaining payment due in 2021 | $ 41,423,000 | |||
Expedia | Corporate Aircraft Purchase | ||||
Loss Contingencies [Line Items] | ||||
Percentage of total purchase price and refurbish costs paid in related party transaction | 50.00% | |||
Expedia | Corporate Aircraft Purchase | Purchase obligations | ||||
Loss Contingencies [Line Items] | ||||
Remaining payment due in 2021 | $ 13,100,000 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) shares in Millions | Oct. 10, 2018shares | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2019USD ($)aircraftshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Aug. 23, 2019USD ($) | Dec. 14, 2018USD ($) | Sep. 29, 2017USD ($)intercompany_note | Dec. 21, 2012USD ($) |
Related Party Transaction [Line Items] | ||||||||||
Current notes receivable due from related party | $ 55,251,000 | $ 0 | ||||||||
IAC | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Allocated costs from related party | 146,000,000 | 178,200,000 | $ 126,700,000 | |||||||
Interest income, net—related party | 400,000 | 300,000 | 23,700,000 | |||||||
Notes receivable from related parties | $ 55,300,000 | |||||||||
Interest rate on notes receivable from related parties (as a percent) | 1.59% | |||||||||
Outstanding payables due | 2,500,000 | $ 15,000,000 | ||||||||
Expenses from transactions with related party | $ 80,143,000 | $ 71,977,000 | $ 62,180,000 | |||||||
Other Affiliates | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Proportion of ownership interest held each by entity and by related party in aircraft employing flight crew (as a percent) | 50.00% | |||||||||
Number of aircraft operated | aircraft | 2 | |||||||||
Payments to acquire corporate aircraft | $ 17,400,000 | |||||||||
Percentage of total purchase price and refurbish costs paid in related party transaction | 50.00% | |||||||||
Proportion of ownership interest held each by entity and by related party in another entity employing flight crew (as a percent) | 50.00% | |||||||||
ANGI Homeservices | Intercompany Notes | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of related party debt instruments | intercompany_note | 2 | |||||||||
ANGI Homeservices | Payoff Intercompany Note | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Current notes receivable due from related party | $ 61,500,000 | |||||||||
ANGI Homeservices | Working Capital Intercompany Note | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Current notes receivable due from related party | $ 15,000,000 | |||||||||
ANGI Homeservices | Employee Matters Agreement | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Stock received during period from Related Party Employee Matters Agreement (shares) | shares | 0.5 | 0.9 | 0.4 | |||||||
ANGI Homeservices | Services Agreement | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Outstanding payables due | $ 100,000 | |||||||||
Revenue from related parties | $ 1,700,000 | $ 4,800,000 | 5,700,000 | |||||||
Due from (to) related party | 0 | |||||||||
ANGI Homeservices | Sublease Agreement | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Outstanding payables due | 900,000 | |||||||||
Related party costs | $ 5,800,000 | $ 5,200,000 | $ 5,100,000 | |||||||
Expedia | Corporate Aircraft Purchase | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percentage of total purchase price and refurbish costs paid in related party transaction | 50.00% | |||||||||
Expected costs from transactions with related party | $ 72,300,000 | |||||||||
Expenses from transactions with related party | $ 23,000,000 | |||||||||
4.875% Senior Notes due November 30, 2018 | Senior Notes | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Face amount of debt instrument | $ 500,000,000 | |||||||||
Stated interest rate (as a percent) | 4.875% | |||||||||
Debt outstanding | $ 361,900,000 | |||||||||
4.75% Senior Notes due December 15, 2022 | Senior Notes | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Face amount of debt instrument | $ 500,000,000 | |||||||||
Stated interest rate (as a percent) | 4.75% | |||||||||
Debt outstanding | $ 34,500,000 | |||||||||
Class B Convertible Common Stock | ANGI Homeservices | Angie's List Transaction Agreement | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Stock received from related party (shares) | shares | 5.1 |
RELATED PARTY TRANSACTIONS - Co
RELATED PARTY TRANSACTIONS - Components of Net Increase (Decrease) in IAC Investment in IAC Holdings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Taxes | $ 60,489 | $ (13,200) | $ 155,402 |
IAC | |||
Related Party Transaction [Line Items] | |||
Cash transfers (from) to Old IAC related to its centrally managed U.S. treasury function, acquisitions and cash expenses paid by Old IAC on behalf of IAC Holdings, Inc., net | (182,382) | 215,993 | (21,058) |
Taxes | (1,874) | 1,120 | 44,798 |
Interest income, net | 420 | 325 | 23,656 |
Allocation of costs from Old IAC | (80,143) | (71,977) | (62,180) |
Net (increase) decrease in Old IAC's investment in IAC Holdings, Inc. | $ (263,979) | $ 145,461 | $ (14,784) |
BENEFIT PLANS - Narrative (Deta
BENEFIT PLANS - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||||
Employee contribution limit per calendar year (up to) (as a percent of pre-tax earnings) | 50.00% | ||||
Employer contribution limit per calendar year (as a percent of compensation) | 10.00% | 3.00% | |||
Employer contribution per dollar employee contributes up to contribution limit | 100.00% | ||||
United States | |||||
Defined Contribution Plan Disclosure | |||||
Defined contribution plan contributions | $ 15.4 | $ 10.2 | $ 8.8 | ||
All Other Countries | |||||
Defined Contribution Plan Disclosure | |||||
Defined contribution plan contributions | $ 1 | $ 0.6 | $ 0.3 |
COMBINED FINANCIAL STATEMENT _3
COMBINED FINANCIAL STATEMENT DETAILS - Narrative (Details) - USD ($) shares in Millions | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 19, 2018 | Sep. 29, 2017 | |
Additional consolidated financial statement details | |||||||
Unrealized gains, net, on equity securities held | $ 18,505,000 | $ 126,063,000 | |||||
Net gain (loss) on equity securities without readily determinable fair value | 19,700,000 | ||||||
Fair value of contingent consideration at date of acquisition | 0 | 25,500,000 | |||||
Other Income (Expense) | |||||||
Additional consolidated financial statement details | |||||||
Interest income, net—related party | 14,700,000 | 8,800,000 | $ 4,000,000 | ||||
Net gain (loss) on equity securities without readily determinable fair value | 18,500,000 | ||||||
Mark-to-market charge pertaining to subsidiary denominated equity instrument | 1,800,000 | ||||||
Foreign currency exchange gain (loss) | (6,600,000) | ||||||
Gain on sale of long-term investments | 26,800,000 | 25,800,000 | |||||
Dictionary.com, Electus, Felix, and CityGrid | Other Income (Expense) | |||||||
Additional consolidated financial statement details | |||||||
Gain on sale of business | 120,600,000 | ||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Dictionary.com, Electus, Felix, and CityGrid | |||||||
Additional consolidated financial statement details | |||||||
Gain on sale of business | $ 91,400,000 | ||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Dictionary.com, Electus, Felix, and CityGrid | Other Income (Expense) | |||||||
Additional consolidated financial statement details | |||||||
Gain on sale of business | $ (8,200,000) | ||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Pinterest | Other Income (Expense) | |||||||
Additional consolidated financial statement details | |||||||
Gain on sale of business | (20,500,000) | ||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ASKfm | Other Income (Expense) | |||||||
Additional consolidated financial statement details | |||||||
Gain on other-than-temporary impairment charges | $ (9,900,000) | ||||||
Pinterest | Other Income (Expense) | |||||||
Additional consolidated financial statement details | |||||||
Unrealized gains, net, on equity securities held | $ 128,800,000 | ||||||
Unrealized reduction in estimated fair value of warrants | $ 9,100,000 | ||||||
Common Stock | ANGI Homeservices | |||||||
Additional consolidated financial statement details | |||||||
Common stock issued (shares) | 8.6 | 61.3 | |||||
Common stock | $ 165,800,000 | $ 763,700,000 |
COMBINED FINANCIAL STATEMENT _4
COMBINED FINANCIAL STATEMENT DETAILS - Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Other current assets: | |||
Capitalized costs to obtain a contract with a customer | $ 43,069 | $ 40,601 | $ 30,900 |
Prepaid expenses | 41,934 | 36,636 | |
Capitalized downloadable search toolbar costs, net | 21,985 | 33,365 | |
Other | 45,346 | 56,857 | |
Other current assets | $ 152,334 | $ 167,459 |
COMBINED FINANCIAL STATEMENT _5
COMBINED FINANCIAL STATEMENT DETAILS - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property and equipment, net: | ||
Property and equipment, gross | $ 507,212 | $ 434,222 |
Accumulated depreciation and amortization | (201,798) | (173,774) |
Property and equipment, net | 305,414 | 260,448 |
Buildings and leasehold improvements | ||
Property and equipment, net: | ||
Property and equipment, gross | 242,882 | 224,497 |
Capitalized software and computer equipment | ||
Property and equipment, net: | ||
Property and equipment, gross | 124,523 | 93,000 |
Furniture and other equipment | ||
Property and equipment, net: | ||
Property and equipment, gross | 84,640 | 79,299 |
Land | ||
Property and equipment, net: | ||
Property and equipment, gross | 11,591 | 11,591 |
Projects in progress | ||
Property and equipment, net: | ||
Property and equipment, gross | $ 43,576 | $ 25,835 |
COMBINED FINANCIAL STATEMENT _6
COMBINED FINANCIAL STATEMENT DETAILS - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued expenses and other current liabilities: | ||
Accrued employee compensation and benefits | $ 105,960 | $ 99,205 |
Accrued advertising expense | 59,269 | 64,626 |
Accrued revenue share | 30,574 | 28,284 |
Other | 124,670 | 107,450 |
Accrued expenses and other current liabilities | $ 320,473 | $ 299,565 |
COMBINED FINANCIAL STATEMENT _7
COMBINED FINANCIAL STATEMENT DETAILS - Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other income (expense), net: | |||
Other income, net | $ 33,627 | $ 282,470 | $ 12,363 |
COMBINED FINANCIAL STATEMENT _8
COMBINED FINANCIAL STATEMENT DETAILS - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 839,796 | $ 884,975 | $ 757,202 | $ 521,416 |
Restricted cash included in other current assets | 527 | 1,441 | 2,737 | 204 |
Restricted cash included in other assets | 409 | 420 | 0 | 10,548 |
Total cash and cash equivalents and restricted cash as shown on the consolidated statement of cash flows | $ 840,732 | $ 886,836 | $ 759,939 | $ 532,168 |
COMBINED FINANCIAL STATEMENT _9
COMBINED FINANCIAL STATEMENT DETAILS - Supplemental Disclosure of Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash paid (received) during the year for: | |||
Interest | $ 10,042 | $ 13,108 | $ 8 |
Income tax payments | 4,861 | 4,084 | 6,508 |
Income tax refunds | $ (3,048) | $ (30,320) | $ (11,618) |
QUARTERLY RESULTS (UNAUDITED) -
QUARTERLY RESULTS (UNAUDITED) - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |||||||||||
Revenue | $ 670,514 | $ 705,382 | $ 688,685 | $ 641,220 | $ 646,762 | $ 660,649 | $ 637,928 | $ 587,709 | $ 2,705,801 | $ 2,533,048 | $ 1,952,607 |
Cost of revenue | 152,506 | 158,161 | 149,725 | 139,848 | 142,514 | 129,727 | 120,890 | 108,021 | 600,240 | 501,152 | 362,627 |
Operating (loss) income | (16,408) | 13,912 | (13,770) | (34,183) | (11,465) | 39,177 | 24,479 | (16,356) | (50,449) | 35,835 | (164,632) |
Net (loss) earnings | 5,457 | 18,378 | 22,021 | (13,673) | 94,728 | 38,163 | 164,482 | (5,002) | 32,183 | 292,371 | 24,608 |
Net (loss) earnings attributable to Old IAC equity in IAC Holdings, Inc. | 6,887 | 16,466 | 13,789 | (14,247) | 89,294 | 34,601 | 125,686 | (2,809) | 22,895 | 246,772 | 37,006 |
Stock-based compensation expense | $ 134,338 | $ 148,405 | $ 192,005 | ||||||||
Write-off due to deferred revenue | 1,800 | 2,800 | |||||||||
Gain (loss) on sale of equity investments | 131,500 | ||||||||||
Impairment of intangible assets | 20,800 | ||||||||||
Dictionary.com, Electus, Felix, and CityGrid | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||
Quarterly Financial Data [Abstract] | |||||||||||
Gain on sale of business | 91,400 | ||||||||||
HomeAdvisor | |||||||||||
Quarterly Financial Data [Abstract] | |||||||||||
Stock-based compensation expense | $ 1,700 | $ 1,700 | $ 1,900 | $ 2,200 | $ 14,500 | $ 12,300 | 12,900 | 14,700 | |||
Angie's List | |||||||||||
Quarterly Financial Data [Abstract] | |||||||||||
After-tax costs | $ 2,000 | $ 4,100 |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) - USD ($) shares in Millions | Jul. 01, 2020 | Jun. 09, 2020 | Feb. 11, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 20, 2020 | Aug. 07, 2020 |
Subsequent Event [Line Items] | ||||||||||
Goodwill impairment | $ 3,318,000 | $ 0 | $ 0 | |||||||
Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Impairment of equity securities without readily determinable fair value | $ 51,500,000 | |||||||||
Write-off of note receivable | 7,500,000 | |||||||||
Impairment charges | $ 0 | |||||||||
Subsequent Event | MGM Resorts International | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock owned of equity method investment (shares) | 59 | |||||||||
Equity method investment aggregate cost | $ 1,000,000,000 | |||||||||
Ownership interest in equity method investment (as a percent) | 12.00% | |||||||||
Subsequent Event | Desktop | Applications | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Goodwill impairment | 212,000,000 | |||||||||
Impairment charges on indefinite-lived intangible assets | $ 21,400,000 | |||||||||
Subsequent Event | Senior Notes | 3.875% Senior Notes due August 15, 2028 | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Face amount of debt instrument | $ 500,000,000 | |||||||||
Stated interest rate (as a percent) | 3.875% | |||||||||
Subsequent Event | Class M common stock | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock issued during period (shares) | 17 | |||||||||
Value of stock issued during period | $ 1,400,000,000 | $ 1,400,000,000 | ||||||||
Subsequent Event | Care.com | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Total purchase price | $ 500,000,000 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts and revenue reserves | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | $ 18,136 | $ 10,710 | $ 15,474 |
Charges to Earnings | 65,723 | 48,362 | 28,460 |
Charges to Other Accounts | 247 | (557) | (723) |
Deductions | (59,958) | (40,379) | (32,501) |
Balance at end of period | 24,148 | 18,136 | 10,710 |
Deferred tax valuation allowance | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 86,778 | 91,040 | 55,680 |
Charges to Earnings | 7,813 | (2,056) | 29,721 |
Charges to Other Accounts | (1,601) | (2,206) | 5,639 |
Deductions | 0 | 0 | 0 |
Balance at end of period | 92,990 | 86,778 | 91,040 |
Other reserves | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 4,726 | 0 | |
Balance at end of period | $ 5,060 | $ 4,726 | $ 0 |