GURANATOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)

12 Months Ended

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Balance Sheets

ANCESTRY.COM LLC

CONDENSED CONSOLIDATING BALANCE SHEETS

(in thousands)

December 31, 2015

	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Elimination			Total
ASSETS
Current assets:
Cash and cash equivalents	$	102	$	—	$	125,795	$	2,260	$	—		$	128,157
Restricted cash	—		—		2,412		—		—			2,412
Accounts receivable, net of allowances	—		—		13,363		261		—			13,624
Prepaid expenses	—		64		12,019		145		—			12,228
Other current assets	—		—		6,153		135		—			6,288
Intercompany receivables	57		—		135		1,188		(1,380		)	—
Total current assets	159		64		159,877		3,989		(1,380		)	162,709
Property and equipment, net	—		—		54,415		380		—			54,795
Content databases, net	—		—		281,566		715		—			282,281
Intangible assets, net	—		—		159,736		—		—			159,736
Goodwill	—		—		947,613		670		—			948,283
Investment in subsidiary	282,222		1,209,851		211,201		126		(1,703,400		)	—
Other assets	—		1,090		12,583		283		—			13,956
Total assets	$	282,381	$	1,211,005	$	1,826,991	$	6,163	$	(1,704,780	)	$	1,621,760
LIABILITIES AND MEMBER’S INTERESTS
Current liabilities:
Accounts payable	$	—	$	—	$	12,649	$	471	$	—		$	13,120
Accrued expenses	—		1,377		47,860		1,222		—			50,459
Acquisition-related liabilities	—		—		2,412		—		—			2,412
Deferred revenues	—		—		171,797		25		—			171,822
Current portion of long-term debt, net	—		7,087		—		—		—			7,087
Intercompany payables	66		—		1,205		109		(1,380		)	—
Total current liabilities	66		8,464		235,923		1,827		(1,380		)	244,900
Long-term debt, net	—		989,256		—		—		—			989,256
Deferred income taxes	—		—		59,809		—		—			59,809
Other long-term liabilities	—		—		46,748		129		—			46,877
Total liabilities	66		997,720		342,480		1,956		(1,380		)	1,340,842
Total member’s interests	282,315		213,285		1,484,511		4,207		(1,703,400		)	280,918
Total liabilities and member’s interests	$	282,381	$	1,211,005	$	1,826,991	$	6,163	$	(1,704,780	)	$	1,621,760

ANCESTRY.COM LLC

CONDENSED CONSOLIDATING BALANCE SHEETS

(in thousands)

December 31, 2014

	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Elimination			Total
ASSETS
Current assets:
Cash and cash equivalents	$	297	$	153	$	104,690	$	3,354		$	—		$	108,494
Restricted cash	—		45,280		3,806		—			—			49,086
Accounts receivable, net of allowances	—		—		6,690		4,551			—			11,241
Prepaid expenses	—		—		9,668		162			—			9,830
Other current assets	—		—		1,623		190			—			1,813
Intercompany receivables	46		—		2,895		811			(3,752		)	—
Total current assets	343		45,433		129,372		9,068			(3,752		)	180,464
Property and equipment, net	—		—		36,551		555			—			37,106
Content databases, net	—		—		281,998		817			—			282,815
Intangible assets, net	—		—		269,054		—			—			269,054
Goodwill	—		—		947,563		720			—			948,283
Investment in subsidiary	496,781		1,278,254		423,266		48			(2,198,349		)	—
Other assets	—		318		2,617		240			—			3,175
Total assets	$	497,124	$	1,324,005	$	2,090,421	$	11,448		$	(2,202,101	)	$	1,720,897
LIABILITIES AND MEMBER’S INTERESTS
Current liabilities:
Accounts payable	$	—	$	60	$	11,026	$	429		$	—		$	11,515
Accrued expenses	—		7,051		35,747		4,231			—			47,029
Acquisition-related liabilities	—		45,280		3,806		—			—			49,086
Deferred revenues	—		—		144,969		41			—			145,010
Current portion of long-term debt, net	—		46,537		—		—			—			46,537
Intercompany payables	—		—		825		2,927			(3,752		)	—
Total current liabilities	—		98,928		196,373		7,628			(3,752		)	299,177
Long-term debt, net	—		799,403		—		—			—			799,403
Deferred income taxes	—		—		110,220		(36		)	—			110,184
Other long-term liabilities	—		—		16,406		—			—			16,406
Total liabilities	—		898,331		322,999		7,592			(3,752		)	1,225,170
Total member’s interests	497,124		425,674		1,767,422		3,856			(2,198,349		)	495,727
Total liabilities and member’s interests	$	497,124	$	1,324,005	$	2,090,421	$	11,448		$	(2,202,101	)	$	1,720,897

Condensed Consolidating Statement of Operations

ANCESTRY.COM LLC

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

(in thousands)

Year Ended December 31, 2015

	Parent		Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elimination			Total
Total revenues	$	—	$	—		$	681,709		$	13,751		$	(12,355	)	$	683,105
Total cost of revenues	—		—			174,735			1,339			(12,355		)	163,719
Gross profit	—		—			506,974			12,412			—			519,386
Operating expenses:
Technology and development	—		—			95,483			1,622			—			97,105
Marketing and advertising	—		—			163,060			8,034			—			171,094
General and administrative	—		522			51,687			2,218			—			54,427
Amortization of acquired intangible assets	—		—			109,318			—			—			109,318
Total operating expenses	—		522			419,548			11,874			—			431,944
Income (loss) from operations	—		(522		)	87,426			538			—			87,442
Interest income (expense), net	—		(81,598		)	542			—			—			(81,056		)
Other expense, net	—		—			(305		)	(29		)	—			(334		)
Income (loss) before income taxes	—		(82,120		)	87,663			509			—			6,052
Income tax benefit (expense)	—		30,081			(6,576		)	(139		)	—			23,366
Income (loss) before loss from subsidiaries	—		(52,039		)	81,087			370			—			29,418
Income (loss) from subsidiaries	29,418		23,619			(27,961		)	—			(25,076		)	—
Net income (loss)	$	29,418	$	(28,420	)	$	53,126		$	370		$	(25,076	)	$	29,418

ANCESTRY.COM LLC

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

(in thousands)

Year Ended December 31, 2014

	Parent			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elimination			Total
Total revenues	$	—		$	—		$	617,633		$	19,486		$	(17,575	)	$	619,544
Total cost of revenues	—			—			153,575			3,553			(17,575		)	139,553
Gross profit	—			—			464,058			15,933			—			479,991
Operating expenses:
Technology and development	—			—			92,318			1,903			—			94,221
Marketing and advertising	—			—			158,359			10,177			—			168,536
General and administrative	—			5,628			52,542			2,801			—			60,971
Amortization of acquired intangible assets	—			—			147,681			—			—			147,681
Total operating expenses	—			5,628			450,900			14,881			—			471,409
Income (loss) from operations	—			(5,628		)	13,158			1,052			—			8,582
Interest income (expense), net	—			(69,579		)	(105		)	4			—			(69,680		)
Other expense, net	—			(8		)	(150		)	(210		)	—			(368		)
Income (loss) before income taxes	—			(75,215		)	12,903			846			—			(61,466		)
Income tax benefit (expense)	—			25,446			17,465			(173		)	—			42,738
Income (loss) before loss from subsidiaries	—			(49,769		)	30,368			673			—			(18,728		)
Loss from subsidiaries	(18,728		)	(30,874		)	(79,970		)	—			129,572			—
Net income (loss)	$	(18,728	)	$	(80,643	)	$	(49,602	)	$	673		$	129,572		$	(18,728	)

ANCESTRY.COM LLC

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

(in thousands)

Year Ended December 31, 2013

	Parent			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elimination			Total
Total revenues	$	—		$	—		$	537,910		$	22,006		$	(19,525	)	$	540,391
Total cost of revenues	—			—			131,132			3,835			(19,525		)	115,442
Gross profit	—			—			406,778			18,171			—			424,949
Operating expenses:
Technology and development	—			—			83,957			1,766			—			85,723
Marketing and advertising	—			—			131,585			13,518			—			145,103
General and administrative	—			500			52,531			2,660			—			55,691
Amortization of acquired intangible assets	—			—			185,193			—			—			185,193
Total operating expenses	—			500			453,266			17,944			—			471,710
Income (loss) from operations	—			(500		)	(46,488		)	227			—			(46,761		)
Interest income (expense), net	—			(97,829		)	(512		)	504			—			(97,837		)
Other expense, net	—			—			(474		)	(181		)	—			(655		)
Income (loss) before income taxes	—			(98,329		)	(47,474		)	550			—			(145,253		)
Income tax benefit (expense)	—			35,890			29,798			(135		)	—			65,553
Income (loss) before loss from subsidiaries	—			(62,439		)	(17,676		)	415			—			(79,700		)
Loss from subsidiaries	(79,700		)	(71,902		)	(134,242		)	(331		)	286,175			—
Net income (loss)	$	(79,700	)	$	(134,341	)	$	(151,918	)	$	84		$	286,175		$	(79,700	)

Condensed Consolidating Statements of Comprehensive Income

	Parent		Issuer			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Elimination			Total
Net income (loss)	$	29,418	$	(28,420	)	$	53,126	$	370	$	(25,076	)	$	29,418
Other comprehensive income (loss)	—		—			—		—		—			—
Total comprehensive income (loss)	$	29,418	$	(28,420	)	$	53,126	$	370	$	(25,076	)	$	29,418

Year Ended December 31, 2014

	Parent			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Elimination		Total
Net income (loss)	$	(18,728	)	$	(80,643	)	$	(49,602	)	$	673	$	129,572	$	(18,728	)
Other comprehensive income (loss)	—			—			—			—		—		—
Total comprehensive income (loss)	$	(18,728	)	$	(80,643	)	$	(49,602	)	$	673	$	129,572	$	(18,728	)

Year Ended December 31, 2013

	Parent			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Elimination		Total
Net income (loss)	$	(79,700	)	$	(134,341	)	$	(151,918	)	$	84	$	286,175	$	(79,700	)
Other comprehensive income (loss)	—			—			—			—		—		—
Total comprehensive income (loss)	$	(79,700	)	$	(134,341	)	$	(151,918	)	$	84	$	286,175	$	(79,700	)

Condensed Consolidating Statements of Cash Flows

ANCESTRY.COM LLC

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(in thousands)

Year Ended December 31, 2015

	Parent			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elimination			Total
Net cash provided by (used in) operating activities	$	129,619		$	47,087		$	240,719		$	(1,072	)	$	(216,736	)	$	199,617
Investing activities:
Capitalization of content databases	—			—			(32,514		)	—			—			(32,514		)
Purchases of property and equipment	—			—			(15,083		)	(34		)	—			(15,117		)
Issuance of related-party note receivable	—			—			(10,000		)	—			—			(10,000		)
Investment in subsidiaries	(63		)	(32,072		)	—			(78		)	32,213			—
Return of capital from subsidiaries	124,650			72,720			219,939			—			(417,309		)	—
Net cash provided by (used in) investing activities	124,587			40,648			162,342			(112		)	(385,096		)	(57,631		)
Financing activities:
Excess tax benefits from stock-based compensation	—			—			—			27			—			27
Proceeds from credit facilities	—			727,650			—			—			—			727,650
Principal payments on debt	—			(586,370		)	—			—			—			(586,370		)
Payment of debt-offering costs	—			(9,229		)	—			—			—			(9,229		)
Return-of-capital distributions	(254,401		)	—			—			—			—			(254,401		)
Capital contribution from parent	—			—			32,150			63			(32,213		)	—
Return of capital to parent	—			(219,939		)	(197,370		)	—			417,309			—
Intercompany dividends paid	—			—			(216,736		)	—			216,736			—
Net cash provided by (used in) financing activities	(254,401		)	(87,888		)	(381,956		)	90			601,832			(122,323		)
Net increase (decrease) in cash and cash equivalents	(195		)	(153		)	21,105			(1,094		)	—			19,663
Cash and cash equivalents at beginning of period	297			153			104,690			3,354			—			108,494
Cash and cash equivalents at end of period	$	102		$	—		$	125,795		$	2,260		$	—		$	128,157

ANCESTRY.COM LLC

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (continued)

(in thousands)

Year Ended December 31, 2014

	Parent			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Elimination			Total
Net cash provided by (used in) operating activities	$	37,543		$	129,471		$	211,511		$	(4,208	)	$	(218,997	)	$	155,320
Investing activities:
Capitalization of content databases	—			—			(37,566		)	—			—			(37,566		)
Purchases of property and equipment	—			—			(21,547		)	(274		)	—			(21,821		)
Issuance of related-party note receivable	—			—			—			—			—			—
Investment in subsidiaries	—			(25,448		)	(60		)	(48		)	25,556			—
Return of capital from subsidiaries	—			—			66,860			—			(66,860		)	—
Net cash provided by (used in) investing activities	—			(25,448		)	7,687			(322		)	(41,304		)	(59,387		)
Financing activities:
Member’s capital contributions	26			—			—			—			—			26
Excess tax benefits from stock-based compensation	—			—			4,063			—			—			4,063
Principal payments on debt	—			(37,572		)	—			—			—			(37,572		)
Return-of-capital distributions	(37,610		)	—			—			—			—			(37,610		)
Payment of contingent consideration	—			—			(2,900		)	—			—			(2,900		)
Capital contribution from parent	—			—			25,496			60			(25,556		)	—
Return of capital to parent	—			(66,860		)	—			—			66,860			—
Intercompany dividends paid	—			—			(201,529		)	(17,468		)	218,997			—
Net cash used in financing activities	(37,584		)	(104,432		)	(174,870		)	(17,408		)	260,301			(73,993		)
Net increase (decrease) in cash and cash equivalents	(41		)	(409		)	44,328			(21,938		)	—			21,940
Cash and cash equivalents at beginning of period	338			562			60,362			25,292			—			86,554
Cash and cash equivalents at end of period	$	297		$	153		$	104,690		$	3,354		$	—		$	108,494