SEGMENTS AND GEOGRAPHIC INFORMATION

12 Months Ended

Dec. 31, 2011

SEGMENTS AND GEOGRAPHIC INFORMATION [Abstract]

SEGMENTS, GEOGRAPHIC INFORMATION AND SIGNIFICANT CUSTOMERS

Segments and Geographic Information

The Company derives its revenue from four business segments. These business segments are presented on a worldwide basis and include: Affiliate Marketing, Media, Owned & Operated Websites, and Technology. The Company accounts for inter-segment revenue as if the revenue was derived from third parties, that is, at current market prices. The following table provides revenue, segment income from operations and total assets for each of the Company's four business segments. Segment income from operations, as shown below, excludes the effects of: stock-based compensation; amortization of intangible assets; impairment of goodwill and intangible assets; and corporate expenses, as these items are excluded from the segment performance measures utilized by the Company's chief operating decision maker in evaluating the performance of the segments. Corporate expenses consist of those costs not directly attributable to a business segment, and include: salaries and benefits for the Company's executive, finance, legal, corporate governance, human resources, and facilities organizations; fees for professional service providers including audit, tax, Sarbanes-Oxley compliance and certain legal fees; insurance; and, other corporate expenses.

	Revenue									Segment Income from Operations						Total Assets
	2011			2010			2009			2011		2010		2009		2011		2010		2009
	(in thousands)
Affiliate Marketing	$	139,409		$	124,126		$	111,903		$	84,573	$	69,552	$	58,121	$	59,755	$	59,336	$	50,980
Media	224,574			137,487			135,086			55,020		33,625		33,261		651,010		290,684		282,135
Owned & Operated Websites	159,821			138,545			149,599			33,764		27,963		35,034		121,531		162,490		87,058
Technology	37,031			31,889			27,686			19,557		16,598		12,775		12,041		10,639		6,951
Inter-segment revenue	(680		)	(1,249		)	(1,551		)	—		—		—		—		—		—
Corporate assets	—			—			—			—		—		—		36,374		90,418		139,438
Total	$	560,155		$	430,798		$	422,723		$	192,914	$	147,738	$	139,191	$	880,711	$	613,567	$	566,562

A reconciliation of segment income from operations to consolidated income from operations is as follows for each period (in thousands):

	Segment Income from Operations
	2011			2010			2009
Segment income from operations	$	192,914		$	147,738		$	139,191
Corporate expenses	(26,531		)	(26,663		)	(27,988		)
Stock-based compensation	(14,022		)	(7,944		)	(8,869		)
Amortization of acquired developed technology    and websites included in consolidated cost of revenue	(9,633		)	(7,522		)	(6,675		)
Amortization of acquired intangible assets    included in consolidated operating expenses	(16,646		)	(13,089		)	(13,128		)
Consolidated income from operations	$	126,082		$	92,520		$	82,531

Depreciation and leasehold amortization expense included in the determination of segment income from operations as presented above for the Affiliate Marketing, Media, Owned & Operated Websites, and Technology segments is as follows for each period (in thousands):

	Year Ended December 31,
	2011		2010		2009
Affiliate Marketing	$	1,062	$	1,052	$	1,057
Media	3,835		2,397		2,135
Owned & Operated Websites	1,717		1,581		1,878
Technology	1,079		865		1,017
Corporate	334		725		1,467
Total	$	8,027	$	6,620	$	7,554

The Company's operations are domiciled in the United States with operations in Europe, Canada, China and Japan through wholly-owned subsidiaries. Revenue is attributed to a geographic region based upon the country in which the customer relationship is maintained. The Company's operations in Canada and Asia primarily support the revenue generated in the United States, and therefore, the costs associated with these operations are attributed to the United States in the determination of geographic income from operations shown below. Geographic long-lived assets exclude deferred tax assets and other assets in the Company's consolidated balance sheets.

The Company's geographic information was as follows (in thousands):

	Year Ended December 31, 2011					Long-lived Assets at December 31, 2011
	Revenue			Income from Operations
United States	$	450,612		$	100,793	$	16,863
United Kingdom	60,072			14,172		454
Other countries	55,465			11,117		2,635
Inter-regional eliminations	(5,994		)	—		—
Total	$	560,155		$	126,082	$	19,952

	Year Ended December 31, 2010					Long-lived Assets at December 31, 2010
	Revenue			Income from Operations
United States	$	341,110		$	76,250	$	11,334
United Kingdom	49,960			10,201		112
Other countries	45,804			6,069		968
Inter-regional eliminations	(6,076		)	—		—
Total	$	430,798		$	92,520	$	12,414

	Year Ended December 31, 2009
	Revenue			Income from Operations
United States	$	339,685		$	71,537
United Kingdom	42,308			6,998
Other countries	45,936			3,996
Inter-regional eliminations	(5,206		)	—
Total	$	422,723		$	82,531