10-Q

As filed with the Securities and Exchange Commission on November 9, 2015

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

ý	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 2015
Or
¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from__________to__________

Commission File No. 0-20570

IAC/INTERACTIVECORP

(Exact name of registrant as specified in its charter)

Delaware  (State or other jurisdiction of incorporation or organization)	59-2712887 (I.R.S. Employer Identification No.)
555 West 18th Street, New York, New York 10011  (Address of registrant's principal executive offices)
(212) 314-7300 (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý    No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý    No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ý Accelerated filer o Non-accelerated filer o (Do not check if a smaller reporting company) Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o    No ý

As of October 23, 2015, the following shares of the registrant's common stock were outstanding:

Common Stock	77,196,951
Class B Common Stock	5,789,499
Total outstanding Common Stock	82,986,450

The aggregate market value of the voting common stock held by non-affiliates of the registrant as of October 23, 2015 was $5,269,037,616. For the purpose of the foregoing calculation only, all directors and executive officers of the registrant are assumed to be affiliates of the registrant.

TABLE OF CONTENTS

		Page Number
PART I
Item 1.	Consolidated Financial Statements	3
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	31
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	48
Item 4.	Controls and Procedures	49
PART II
Item 1A.	Risk Factors	50
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	50
Item 6.	Exhibits	51
	Signatures	52

PART I

FINANCIAL INFORMATION

Item 1.    Consolidated Financial Statements

IAC/INTERACTIVECORP

CONSOLIDATED BALANCE SHEET

(Unaudited)

	September 30, 2015			December 31, 2014
	(In thousands, except share data)
ASSETS
Cash and cash equivalents	$	766,448		$	990,405
Marketable securities	53,937			160,648
Accounts receivable, net of allowance of $16,202 and $12,437, respectively	246,978			236,086
Other current assets	178,883			166,742
Total current assets	1,246,246			1,553,881
Property and equipment, net of accumulated depreciation and amortization of $305,226 and $279,534, respectively	299,078			302,459
Goodwill	1,769,141			1,754,926
Intangible assets, net of accumulated amortization of $122,653 and $98,937 respectively	459,921			491,936
Long-term investments	138,825			114,983
Other non-current assets	114,107			56,693
TOTAL ASSETS	$	4,027,318		$	4,274,878
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Accounts payable, trade	$	68,448		$	81,163
Deferred revenue	237,947			194,988
Accrued expenses and other current liabilities	347,062			397,803
Total current liabilities	653,457			673,954
Long-term debt	1,000,000			1,080,000
Income taxes payable	23,641			32,635
Deferred income taxes	417,326			409,529
Other long-term liabilities	62,476			45,191
Redeemable noncontrolling interests	25,227			40,427
Commitments and contingencies
SHAREHOLDERS' EQUITY:
Common stock $.001 par value; authorized 1,600,000,000 shares; issued 253,957,313 and 252,170,058 shares, respectively and outstanding 77,188,046 and 78,356,057 shares, respectively	254			252
Class B convertible common stock $.001 par value; authorized 400,000,000 shares; issued 16,157,499 shares and outstanding 5,789,499 shares	16			16
Additional paid-in capital	11,459,267			11,415,617
Retained earnings	391,492			325,118
Accumulated other comprehensive loss	(144,488		)	(87,700		)
Treasury stock 187,137,267 and 184,182,001 shares, respectively	(9,861,350		)	(9,661,350		)
Total IAC shareholders' equity	1,845,191			1,991,953
Noncontrolling interests	—			1,189
Total shareholders' equity	1,845,191			1,993,142
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	4,027,318		$	4,274,878

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

3

IAC/INTERACTIVECORP

CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(In thousands, except per share data)
Revenue	$	838,561		$	782,231		$	2,382,205		$	2,278,793
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	205,261			224,695			580,090			644,659
Selling and marketing expense	337,226			278,321			1,014,289			849,410
General and administrative expense	134,122			106,987			378,265			311,973
Product development expense	46,859			40,691			138,546			118,352
Depreciation	15,625			14,133			46,693			44,208
Amortization of intangibles	12,338			16,451			39,304			41,836
Total operating costs and expenses	751,431			681,278			2,197,187			2,010,438
Operating income	87,130			100,953			185,018			268,355
Equity in earnings (losses) of unconsolidated affiliates	398			(612		)	(78		)	(9,397		)
Interest expense	(15,992		)	(14,009		)	(45,270		)	(42,119		)
Other income (expense), net	34,000			4,113			39,826			(58,810		)
Earnings from continuing operations before income taxes	105,536			90,445			179,496			158,029
Income tax (provision) benefit	(40,510		)	59,816			(34,722		)	8,542
Earnings from continuing operations	65,026			150,261			144,774			166,571
Earnings (loss) from discontinued operations, net of tax	17			175,730			(11		)	174,048
Net earnings	65,043			325,991			144,763			340,619
Net loss attributable to noncontrolling interests	568			821			6,558			4,082
Net earnings attributable to IAC shareholders	$	65,611		$	326,812		$	151,321		$	344,701
Per share information attributable to IAC shareholders:
Basic earningsper share from continuing operations	$	0.79		$	1.81		$	1.82		$	2.05
Diluted earnings per share from continuing operations	$	0.74		$	1.70		$	1.71		$	1.93
Basic earningsper share	$	0.79		$	3.91		$	1.82		$	4.15
Diluted earningsper share	$	0.74		$	3.68		$	1.71		$	3.91
Dividends declared per share	$	0.34		$	0.34		$	1.02		$	0.82
Stock-based compensation expense by function:
Cost of revenue	$	307		$	453		$	846		$	904
Selling and marketing expense	2,442			775			7,284			1,628
General and administrative expense	21,683			14,094			56,320			35,753
Product development expense	2,577			2,010			7,419			5,212
Total stock-based compensation expense	$	27,009		$	17,332		$	71,869		$	43,497

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

4

IAC/INTERACTIVECORP

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(In thousands)
Net earnings	$	65,043		$	325,991		$	144,763		$	340,619
Other comprehensive (loss) income, net of tax:
Change in foreign currency translation adjustment	(10,603		)	(36,759		)	(58,604		)	(31,569		)
Change in unrealized gains and losses of available-for-sale securities (net of tax benefits of $277 and $95 for the three and nine months ended September 30, 2015, respectively, and net of tax benefits of $245 and $1,683 for the three and nine months ended September 30, 2014, respectively)	(3,617		)	(389		)	632			(2,639		)
Total other comprehensive loss, net of tax	(14,220		)	(37,148		)	(57,972		)	(34,208		)
Comprehensive income	50,823			288,843			86,791			306,411
Comprehensive loss attributable to noncontrolling interests	595			1,107			7,742			4,568
Comprehensive income attributable to IAC shareholders	$	51,418		$	289,950		$	94,533		$	310,979

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

5

IAC/INTERACTIVECORP

CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY

(Unaudited)

				IAC Shareholders' Equity
							Class B Convertible Common Stock $.001 Par Value
				Common Stock $.001 Par Value
																Accumulated Other Comprehensive Loss						Total IAC Shareholders' Equity
	Redeemable Noncontrolling Interests									Additional Paid-in Capital			Retained Earnings							Treasury Stock						Noncontrolling Interests			Total Shareholders' Equity
				$		Shares	$		Shares
				(In thousands)
Balance as of December 31, 2014	$	40,427		$	252	252,170	$	16	16,157	$	11,415,617		$	325,118		$	(87,700	)	$	(9,661,350	)	$	1,991,953		$	1,189		$	1,993,142
Net (loss) earnings for the nine months ended September 30, 2015	(6,558		)	—		—	—		—	—			151,321			—			—			151,321			—			151,321
Other comprehensive loss, net of tax	(1,184		)	—		—	—		—	—			—			(56,788		)	—			(56,788		)	—			(56,788		)
Stock-based compensation expense	5,066			—		—	—		—	62,611			—			—			—			62,611			—			62,611
Issuance of common stock pursuant to stock-based awards, net of withholding taxes	—			2		1,787	—		—	(39,512		)	—			—			—			(39,510		)	—			(39,510		)
Income tax benefit related to stock-based awards	—			—		—	—		—	37,298			—			—			—			37,298			—			37,298
Dividends	—			—		—	—		—	—			(84,947		)	—			—			(84,947		)	—			(84,947		)
Purchase of treasury stock	—			—		—	—		—	—			—			—			(200,000		)	(200,000		)	—			(200,000		)
Purchase of redeemable noncontrolling interests	(29,899		)	—		—	—		—	—			—			—			—			—			—			—
Adjustment of redeemable noncontrolling interests to fair value	15,903			—		—	—		—	(15,903		)	—			—			—			(15,903		)	—			(15,903		)
Transfer from noncontrolling interests to redeemable noncontrolling interests	1,189			—		—	—		—	—			—			—			—			—			(1,189		)	(1,189		)
Other	283			—		—	—		—	(844		)	—			—			—			(844		)	—			(844		)
Balance as of September 30, 2015	$	25,227		$	254	253,957	$	16	16,157	$	11,459,267		$	391,492		$	(144,488	)	$	(9,861,350	)	$	1,845,191		$	—		$	1,845,191

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

6

IAC/INTERACTIVECORP

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	Nine Months Ended September 30,
	2015			2014
	(In thousands)
Cash flows from operating activities attributable to continuing operations:
Net earnings	$	144,763		$	340,619
Less: (loss) earnings from discontinued operations, net of tax	(11		)	174,048
Earnings from continuing operations	144,774			166,571
Adjustments to reconcile earnings from continuing operations to net cash provided by operating activities attributable to continuing operations:
Stock-based compensation expense	71,869			43,497
Depreciation	46,693			44,208
Amortization of intangibles	39,304			41,836
Impairment of long-term investments	1,304			64,281
Excess tax benefits from stock-based awards	(49,147		)	(41,320		)
Deferred income taxes	(7,851		)	88,739
Equity in losses of unconsolidated affiliates	78			9,397
Acquisition-related contingent consideration fair value adjustments	(17,906		)	(13,781		)
Gain on real estate transaction	(33,586		)	—
Other adjustments, net	13,852			10,080
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable	(25,822		)	(12,779		)
Other assets	(13,746		)	(8,735		)
Accounts payable and other current liabilities	(17,453		)	(24,183		)
Income taxes payable	(13,748		)	(114,584		)
Deferred revenue	45,674			41,667
Other changes in assets and liabilities, net	(182		)	(233		)
Net cash provided by operating activities attributable to continuing operations	184,107			294,661
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	(43,286		)	(244,196		)
Capital expenditures	(44,558		)	(39,033		)
Proceeds from maturities and sales of marketable debt securities	192,928			998
Purchases of marketable debt securities	(93,134		)	(110,886		)
Purchases of long-term investments	(25,073		)	(17,703		)
Other, net	4,456			11,924
Net cash used in investing activities attributable to continuing operations	(8,667		)	(398,896		)
Cash flows from financing activities attributable to continuing operations:
Purchase of treasury stock	(200,000		)	—
Dividends	(84,947		)	(68,505		)
Principal payment on long-term debt	(80,000		)	—
Issuance of common stock, net of withholding taxes	(40,197		)	(4,823		)
Excess tax benefits from stock-based awards	49,147			41,320
Purchase of noncontrolling interests	(29,899		)	(30,328		)
Funds returned from escrow for Meetic tender offer	—			12,354
Acquisition-related contingent consideration payments	(5,712		)	(7,659		)
Other, net	512			(1,397		)
Net cash used in financing activities attributable to continuing operations	(391,096		)	(59,038		)
Total cash used in continuing operations	(215,656		)	(163,273		)
Total cash used in discontinued operations	(190		)	(171		)
Effect of exchange rate changes on cash and cash equivalents	(8,111		)	(5,288		)
Net decrease in cash and cash equivalents	(223,957		)	(168,732		)
Cash and cash equivalents at beginning of period	990,405			1,100,444
Cash and cash equivalents at end of period	$	766,448		$	931,712

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

7

IAC/INTERACTIVECORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1—THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

IAC is a leading media and Internet company. The Company is organized into four segments: The Match Group, which consists of dating, education and fitness businesses with brands such as Match, OkCupid, Tinder, The Princeton Review and DailyBurn; Search & Applications, which includes brands such as About.com, Ask.com, Dictionary.com and Investopedia; Media, which consists of businesses such as Vimeo, Electus, The Daily Beast and CollegeHumor; and eCommerce, which includes HomeAdvisor and ShoeBuy. IAC's brands and products are among the most recognized in the world reaching users in over 200 countries.

All references to "IAC," the "Company," "we," "our" or "us" in this report are to IAC/InterActiveCorp.

Match Group, Inc. Initial Public Offering and Acquisition of PlentyOfFish

On November 9, 2015, Match Group, Inc. filed a registration statement on Form S-1 with the Securities and Exchange Commission ("SEC") relating to the proposed initial public offering ("IPO") of less than 20% of its common stock. The IPO is expected to be completed during the fourth quarter of 2015.

On October 28, 2015, Match Group, Inc. completed its previously announced purchase of Plentyoffish Media Inc., or PlentyOfFish, for $575 million in cash.

Basis of Presentation

The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP").

Basis of Consolidation and Accounting for Investments

The consolidated financial statements include the accounts of the Company, all entities that are wholly-owned by the Company and all entities in which the Company has a controlling financial interest. Intercompany transactions and accounts have been eliminated.

Investments in the common stock or in-substance common stock of entities in which the Company has the ability to exercise significant influence over the operating and financial matters of the investee, but does not have a controlling financial interest, are accounted for using the equity method and are included in "Long-term investments" in the accompanying consolidated balance sheet.

The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the rules and regulations of the SEC. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. Interim results are not necessarily indicative of the results that may be expected for the full year. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014.

Accounting Estimates

The preparation of consolidated financial statements in accordance with GAAP requires management to make certain estimates, judgments and assumptions that 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, the Company evaluates its estimates and judgments including those related to: the fair values of marketable securities and other investments; the recoverability of goodwill and indefinite-lived intangible assets; the useful

8

IAC/INTERACTIVECORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

lives and recoverability of definite-lived intangible assets and property and equipment; the carrying value of accounts receivable, including the determination of the allowance for doubtful accounts and revenue reserves; the fair value of acquisition-related contingent consideration; the liabilities for uncertain tax positions; the valuation allowance for deferred income tax assets; and the fair value of and forfeiture rates for stock-based awards, among others. The Company bases its estimates and judgments on historical experience, its forecasts and budgets and other factors that the Company considers relevant.

Certain Risks and Concentrations

A substantial portion of the Company's revenue is derived from online advertising, the market for which is highly competitive and rapidly changing. Significant changes in this industry or changes in advertising spending behavior or in customer buying behavior could adversely affect our operating results. Most of the Company's online advertising revenue is attributable to a services agreement with Google Inc. ("Google"). On October 26, 2015, the Company and Google entered into a services agreement that is effective as of April 1, 2016, following the expiration of the current services agreement, and expires on March 31, 2020. The Company may choose to terminate the agreement effective March 31, 2019. These services agreements require that we comply with certain guidelines promulgated by Google. Subject to certain limitations, Google may unilaterally update its policies and guidelines, which could 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 business, financial condition and results of operations. For the three and nine months ended September 30, 2015, revenue earned from Google is $332.0 million and $979.8 million, respectively. For the three and nine months ended September 30, 2014, revenue earned from Google is $351.4 million and $1.1 billion, respectively. This revenue is earned by the businesses comprising the Search & Applications segment. Accounts receivable related to revenue earned from Google totaled $112.2 million and $118.7 million at September 30, 2015 and December 31, 2014, respectively.

Recent Accounting Pronouncement

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, which clarifies the principles for recognizing revenue and develops a common standard for all industries. In July 2015, the FASB decided to defer the effective date for annual reporting periods beginning after December 15, 2017. Early adoption is permitted beginning on the original effective date of December 15, 2016. Upon adoption, ASU No. 2014-09 may either be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is currently evaluating the new guidance and has not yet determined whether the adoption of the new standard will have a material impact on its consolidated financial statements or the method and timing of adoption.

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation.

NOTE 2—INCOME TAXES

At the end of each interim period, the Company makes its best estimate of the annual expected effective income tax rate and applies that rate to its ordinary year-to-date earnings or loss. The income tax provision or benefit related to significant, unusual, or extraordinary items, if applicable, that will be separately reported or reported net of their related tax effects are individually computed and recognized in the interim period in which they occur. In addition, the effect of changes in enacted tax laws or rates, tax status, judgment on the realizability of a beginning-of-the-year deferred tax asset in future years or the liabilities for uncertain tax positions is recognized in the interim period in which the change occurs.

The computation of the annual expected effective income tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected pre-tax income (or loss) for the year, projections of the proportion of income (and/or loss) earned and taxed in foreign jurisdictions, permanent and temporary differences, and the likelihood of the realization of deferred tax assets generated in the current year. The accounting estimates used to compute the provision or benefit for income taxes may change as new events occur, more experience is acquired, additional information is obtained or our tax environment changes. To the extent that the expected annual effective income tax rate changes during a quarter, the effect of the change on prior quarters is included in income tax provision in the quarter in which the change occurs.

9

IAC/INTERACTIVECORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

For the three and nine months ended September 30, 2015, the Company recorded an income tax provision for continuing operations of $40.5 million and $34.7 million, respectively, which represents effective income tax rates of 38% and 19%, respectively. The effective tax rate for the three months endedSeptember 30, 2015 is higher than the statutory rate of 35% due primarily to state taxes, partially offset by foreign income taxed at lower rates. The effective tax rate for the nine months endedSeptember 30, 2015 is lower than the statutory rate of 35% due primarily to the realization of certain deferred tax assets, a reduction in tax reserves and related interest due to the expiration of statutes of limitations and the non-taxable gain on contingent consideration fair value adjustments in the current year period. For the three and nine months ended September 30, 2014, the Company recorded an income tax benefit for continuing operations of $59.8 million and $8.5 million, respectively, despite pre-tax income of $90.4 million and $158.0 million, respectively. The income tax benefit for the three and nine months ended September 30, 2014 is due principally to a reduction in tax reserves and related interest due to the expiration of statutes of limitations for federal income taxes for 2001 through 2009 of $88.2 million.

The Company recognizes interest and, if applicable, penalties related to unrecognized tax benefits in the income tax provision. Included in the income tax provision for continuing operations for the three and nine months ended September 30, 2015, is a less than $0.1 million expense and a $0.2 million benefit, respectively, net of related deferred taxes, for interest on unrecognized tax benefits. At September 30, 2015 and December 31, 2014, the Company has accrued $2.2 million and $2.8 million, respectively, for the payment of interest. At September 30, 2015 and December 31, 2014, the Company has accrued $2.1 million and $2.9 million, respectively, for penalties.

The Company is routinely under audit by federal, state, local and foreign authorities in the area of income tax. 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 is currently auditing the Company’s federal income tax returns for the years ended December 31, 2010 through 2012. Various other jurisdictions are open to examination for various tax years beginning with 2009. Income taxes payable include reserves considered sufficient to pay assessments that may result from examination of prior year tax returns. Changes to reserves from period to period and differences between amounts paid, if any, upon resolution of audits and amounts previously provided may be material. Differences between the reserves for uncertain tax positions and the amounts owed by the Company are recorded in the period they become known.

At September 30, 2015 and December 31, 2014, unrecognized tax benefits, including interest and penalties, are $24.8 million and $33.2 million, respectively. If unrecognized tax benefits at September 30, 2015 are subsequently recognized, $22.8 million, net of related deferred tax assets and interest, would reduce income tax provision for continuing operations. The Company believes that it is reasonably possible that its unrecognized tax benefits could decrease by $7.7 million within twelve months of September 30, 2015 primarily due to expiration of statutes of limitations and settlements.

NOTE 3—MARKETABLE SECURITIES

At September 30, 2015, current available-for-sale marketable securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Corporate debt securities	$	53,600	$	7	$	(129	)	$	53,478
Equity security	98		361		—			459
Total marketable securities	$	53,698	$	368	$	(129	)	$	53,937

10

IAC/INTERACTIVECORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

At December 31, 2014, current available-for-sale marketable securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Corporate debt securities	$	159,418	$	34	$	(255	)	$	159,197
Equity security	98		1,353		—			1,451
Total marketable securities	$	159,516	$	1,387	$	(255	)	$	160,648

The unrealized gains and losses in the tables above are included in "Accumulated other comprehensive loss" in the accompanying consolidated balance sheet. The gross unrealized losses on the marketable debt securities relate primarily to changes in interest rates. The Company does not consider the gross unrealized losses to be other-than-temporary because the Company does not intend to sell the marketable debt securities that generated the gross unrealized losses at September 30, 2015, and it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized costs bases, which may be maturity.

The contractual maturities of debt securities classified as current available-for-sale at September 30, 2015 are as follows:

	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	4,374	$	4,370
Due after one year through five years	49,226		49,108
Total	$	53,600	$	53,478

The following table presents the proceeds from maturities and sales of current and non-current available-for-sale marketable securities and the related gross realized gains:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
	(In thousands)
Proceeds from maturities and sales of available-for-sale marketable securities	$	178,315	$	1,114	$	192,928	$	4,576
Gross realized gains	17		1,063		22		3,362

There were no gross realized losses from the maturities and sales of available-for-sale marketable securities for the three and nine months ended September 30, 2015 and 2014. However, during the second quarter of 2015, the Company recognized $0.3 million in losses that were deemed to be other-than-temporary related to various corporate debt securities that were expected to be sold by the Company, in part, to fund its cash needs related to Match Group, Inc.'s acquisition of PlentyOfFish for $575 million.

Gross realized gains from the maturities and sales of available-for-sale marketable securities and gross unrealized losses that were deemed to be other-than-temporary are included in "Other income (expense), net" in the accompanying consolidated statement of operations.

The specific-identification method is used to determine the cost of securities sold and the amount of unrealized gains and losses reclassified out of accumulated other comprehensive income into earnings.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

NOTE 4—FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS

The Company 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 prices for identical assets and liabilities in active markets.

• Level 2: Other inputs, which are observable directly or indirectly, such as quoted prices for similar assets or liabilities in active markets, quoted 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 the Company'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 the Company 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 below for a discussion of fair value measurements made using Level 3 inputs.

The following tables present the Company's financial instruments that are measured at fair value on a recurring basis:

	September 30, 2015
	Quoted Market Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Total Fair Value Measurements
	(In thousands)
Assets:
Cash equivalents:
Money market funds	$	375,094	$	—	$	—		$	375,094
Time deposits	—		45,005		—			45,005
Commercial paper	—		8,999		—			8,999
Marketable securities:
Corporate debt securities	—		53,478		—			53,478
Equity security	459		—		—			459
Long-term investments:
Auction rate security	—		—		5,010			5,010
Marketable equity security	9,594		—		—			9,594
Total	$	385,147	$	107,482	$	5,010		$	497,639
Liabilities:
Contingent consideration arrangements	$	—	$	—	$	(31,470	)	$	(31,470	)

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

	December 31, 2014
	Quoted Market Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Total Fair Value Measurements
	(In thousands)
Assets:
Cash equivalents:
Money market funds	$	174,720	$	—	$	—		$	174,720
Time deposits	—		42,914		—			42,914
Commercial paper	—		388,801		—			388,801
Marketable securities:
Corporate debt securities	—		159,197		—			159,197
Equity security	1,451		—		—			1,451
Long-term investments:
Auction rate security	—		—		6,070			6,070
Marketable equity security	7,410		—		—			7,410
Total	$	183,581	$	590,912	$	6,070		$	780,563
Liabilities:
Contingent consideration arrangements	$	—	$	—	$	(30,140	)	$	(30,140	)

The following tables present the changes in the Company's financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

	Three Months Ended September 30,
	2015						2014
	Auction Rate Security			Contingent Consideration Arrangements			Auction Rate Security			Contingent Consideration Arrangements
	(In thousands)
Balance at July 1	$	6,630		$	(31,858	)	$	9,250		$	(41,397	)
Total net gains (losses):
Included in earnings:
Fair value adjustments	—			960			—			14,281
Included in other comprehensive (loss) income	(1,620		)	(579		)	(670		)	1,918
Settlements	—			7			—			29
Balance at September 30	$	5,010		$	(31,470	)	$	8,580		$	(25,169	)

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

	Nine Months Ended September 30,
	2015						2014
	Auction Rate Security			Contingent Consideration Arrangements			Auction Rate Security			Contingent Consideration Arrangements
	(In thousands)
Balance at January 1	$	6,070		$	(30,140	)	$	8,920		$	(45,828	)
Total net gains (losses):
Included in earnings:
Fair value adjustments	—			17,906			—			13,781
Foreign currency exchange gains	—			626			—			—
Included in other comprehensive (loss) income	(1,060		)	1,538			(340		)	2,054
Fair value at date of acquisition	—			(27,112		)	—			(2,835		)
Settlements	—			5,712			—			7,659
Balance at September 30	$	5,010		$	(31,470	)	$	8,580		$	(25,169	)

Auction rate security

The Company's auction rate security is valued by discounting the estimated future cash flow streams of the security over the life of the security. Credit spreads and other risk factors are also considered in establishing fair value. The cost basis of the auction rate security is $10.0 million, with gross unrealized losses of $5.0 million and $3.9 million at September 30, 2015 and December 31, 2014, respectively. The unrealized losses are included in "Accumulated other comprehensive loss" in the accompanying consolidated balance sheet. At September 30, 2015, the auction rate security is rated BBB- and matures in 2035. The Company does not consider the auction rate security to be other-than-temporarily impaired at September 30, 2015, due to its credit rating and because the Company does not intend to sell this security, and it is not more likely than not that the Company will be required to sell this security, before the recovery of its amortized cost basis, which may be maturity.

Contingent Consideration Arrangements

As of September 30, 2015, there are nine contingent consideration arrangements related to business acquisitions. Eight of the contingent consideration arrangements have limits as to the maximum amount that can be paid; the maximum contingent payments related to these arrangements is $242.8 million and the fair value of these arrangements at September 30, 2015 is $31.0 million. The fair value of the one contingent consideration arrangement without a limit on the maximum amount is $0.5 million at September 30, 2015. The contingent consideration arrangements are generally based upon earnings performance and/or operating metrics such as monthly active users. The Company determines the fair value of the contingent consideration arrangements by using a probability-weighted analysis to determine the amount of the gross liability, and, if the arrangement is long-term in nature, applying a discount rate that captures the risks associated with the obligation. The number of scenarios in the probability-weighted analyses can vary; generally, more scenarios are prepared for longer duration and more complex arrangements. The fair values of the contingent consideration arrangements at September 30, 2015 reflect discount rates ranging from 12-25%.

The fair values of the contingent consideration arrangements are sensitive to changes in the forecasts of earnings and/or the relevant operating metrics and changes in discount rates. The Company remeasures the fair value of the contingent consideration arrangements each reporting period, and changes are recognized in “General and administrative expense” in the accompanying consolidated statement of operations. The contingent consideration arrangement liability at September 30, 2015 includes a current portion of $0.7 million and non-current portion of $30.8 million, which are included in “Accrued expenses and other current liabilities” and “Other long-term liabilities,” respectively, in the accompanying consolidated balance sheet.

14

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Assets measured at fair value on a nonrecurring basis

The Company's non-financial assets, such as goodwill, intangible assets and property and equipment, as well as equity and cost method investments, are adjusted to fair value only when an impairment charge is recognized. Such fair value measurements are based predominantly on Level 3 inputs.

Cost method investments

At September 30, 2015 and December 31, 2014, the carrying values of the Company's investments accounted for under the cost method totaled $113.7 million and $90.9 million, respectively, and are included in "Long-term investments" in the accompanying consolidated balance sheet. The Company evaluates each cost method investment for impairment on a quarterly basis and recognizes an impairment loss if a decline in value is determined to be other-than-temporary. If the Company has not identified events or changes in circumstances that may have a significant adverse effect on the fair value of a cost method investment, then the fair value of such cost method investment is not estimated, as it is impracticable to do so.

In the second quarter of 2014, the Company recorded $64.2 million of other-than-temporary impairment charges for certain cost method 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 (expense), net" in the accompanying consolidated statement of operations.

Equity method investments

In the second quarter of 2014, the Company recorded a $4.2 million other-than-temporary impairment charge on an equity method investment following the sale of a majority of the investee's assets. This charge is included in "Equity in earnings (losses) of unconsolidated affiliates" in the accompanying consolidated statement of operations.

Long-term marketable equity security

The cost basis of the Company's long-term marketable equity security at September 30, 2015 and December 31, 2014 is $8.7 million, with a gross unrealized gain of $0.9 million and a gross unrealized loss of $1.2 million at September 30, 2015 and December 31, 2014, respectively. The gross unrealized gain at September 30, 2015 and gross unrealized loss at December 31, 2014 are included in "Accumulated other comprehensive loss" in the accompanying consolidated 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:

	September 30, 2015						December 31, 2014
	Carrying Value			Fair Value			Carrying Value			Fair Value
	(In thousands)
Long-term debt	$	(1,000,000	)	$	(990,050	)	$	(1,080,000	)	$	(1,099,813	)

The fair value of long-term debt is estimated using market prices or indices for similar liabilities and takes into consideration other factors such as credit quality and maturity, which are Level 3 inputs.

15

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

NOTE 5—LONG-TERM DEBT

Long-term debt consists of:

	September 30, 2015		December 31, 2014
	(In thousands)
4.875% Senior Notes due November 30, 2018 (the "2013 Senior Notes"); interest payable each May 30 and November 30, which commenced May 30, 2014	$	500,000	$	500,000
4.75% Senior Notes due December 15, 2022 (the "2012 Senior Notes"); interest payable each June 15 and December 15, which commenced June 15, 2013	500,000		500,000
5% New York City Industrial Development Agency Liberty Bonds due September 1, 2035 (the "Liberty Bonds"); interest payable each March 1 and September 1, which commenced March 1, 2006	—		80,000
Total long-term debt	$	1,000,000	$	1,080,000

The 2013 and 2012 Senior Notes were issued on November 15, 2013 and December 21, 2012, respectively. On December 21, 2012, IAC entered into a $300 million revolving credit facility (the "IAC credit facility"). On October 7, 2015, the IAC credit facility agreement was amended and restated, and now expires October 7, 2020. At September 30, 2015 and December 31, 2014, there are no outstanding borrowings under the IAC credit facility. The annual fee to maintain the IAC credit facility is 35 basis points. Also, on October 7, 2015, Match Group, Inc. entered into a $500 million revolving credit facility, which expires on October 7, 2020 (the "Match credit facility"). The annual fee to maintain the Match credit facility is 35 basis points.

On October 16, 2015, Match Group, Inc. commenced a private exchange offer to eligible holders to exchange any and all of the 2012 Senior Notes for up to $500 million aggregate principal amount of new 6.75% Senior Notes due 2022 (the "Match Notes") to be issued by Match Group, Inc. ("Match Exchange Offer"). The Company expects to exchange $443.5 million of the 2012 Senior Notes for $443.5 million of the Match Notes pursuant to the Match Exchange Offer. Based on the results of the Match Exchange Offer, IAC does not expect to accept any 2013 Senior Notes for payment in the cash tender offer, which commenced on October 16, 2015.

The 2013 and 2012 Senior Notes are unconditionally guaranteed by certain IAC domestic subsidiaries, which are designated as guarantor subsidiaries. The guarantor subsidiaries are the same for the 2013 and 2012 Senior Notes and the IAC credit facility; any borrowings under the IAC credit facility would also be secured by the stock of certain of our domestic and foreign subsidiaries. See Note 11 for guarantor and non-guarantor financial information. The Match credit facility is guaranteed by the same entities that guarantee the 2013 and 2012 Senior Notes and the IAC credit facility, and also secured by the stock of certain Match Group, Inc. domestic and foreign subsidiaries. The Company expects that, promptly following the closing of the Match Exchange Offer, Match Group, Inc. will be designated an unrestricted subsidiary of IAC for purposes of the indentures governing the 2013 and 2012 Senior Notes and the IAC credit facility. Upon such designation, neither Match Group, Inc. nor any of its subsidiaries will guarantee any debt of the Company.

The indentures governing the 2013 and 2012 Senior Notes restrict our ability to incur additional indebtedness in the event we are not in compliance with the maximum leverage ratio of 3.0 to 1.0. In addition, the terms of the IAC credit facility require that we maintain a leverage ratio of not more than 3.25 to 1.0 and restrict our ability to incur additional indebtedness. The Company was in compliance with all applicable covenants at September 30, 2015. The terms of the Match credit facility require Match Group, Inc. to maintain a leverage ratio of not more than 5.0 to 1.0 and a minimum interest coverage ratio of not less than 2.5 to 1.0, and restrict Match Group, Inc.'s ability to incur additional indebtedness.

16

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

NOTE 6—ACCUMULATED OTHER COMPREHENSIVE LOSS

The following tables present the components of accumulated other comprehensive (loss) income.

	Three Months Ended September 30, 2015
	Foreign Currency Translation Adjustment			Unrealized Gains On Available-For-Sale Securities				Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of July 1	$	(133,895	)	$	3,600			$	(130,295	)
Other comprehensive loss, net of tax benefit of $0.1 million related to unrealized losses on available-for-sale securities	(8,420		)	(3,501		)		(11,921		)
Amounts reclassified to earnings	(2,191		)	(81		)	(a)	(2,272		)
Net current period other comprehensive loss	(10,611		)	(3,582		)		(14,193		)
Balance as of September 30	$	(144,506	)	$	18			$	(144,488	)

_________________________________________

^(a)Amount is net of a tax provision of $0.1 million.

	Three Months Ended September 30, 2014
	Foreign Currency Translation Adjustment			Unrealized Gains On Available-For-Sale Securities			Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of July 1	$	(15,282	)	$	5,376		$	(9,906	)
Other comprehensive (loss) income before reclassifications, net of tax provision of $0.2 million related to unrealized losses on available-for-sale securities	(36,428		)	231			(36,197		)
Amounts reclassified to earnings related to unrealized gains on available-for-sale securities, net of tax provision of $0.4 million	—			(665		)	(665		)
Net current period other comprehensive loss	(36,428		)	(434		)	(36,862		)
Balance as of September 30	$	(51,710	)	$	4,942		$	(46,768	)

	Nine Months Ended September 30, 2015
	Foreign Currency Translation Adjustment			Unrealized (Losses) Gains On Available-For-Sale Securities				Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of January 1	$	(86,848	)	$	(852	)		$	(87,700	)
Other comprehensive (loss) income, net of tax benefit of $0.3 million related to unrealized losses on available-for-sale securities	(55,467		)	788				(54,679		)
Amounts reclassified to earnings	(2,191		)	82			(b)	(2,109		)
Net current period other comprehensive (loss) income	(57,658		)	870				(56,788		)
Balance as of September 30	$	(144,506	)	$	18			$	(144,488	)

_________________________________________

^(b)Amount is net of a tax benefit of $0.1 million.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

	Nine Months Ended September 30, 2014
	Foreign Currency Translation Adjustment			Unrealized Gains On Available-For-Sale Securities			Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of January 1	$	(20,352	)	$	7,306		$	(13,046	)
Other comprehensive loss before reclassifications, net of tax benefit of $0.5 million related to unrealized losses on available-for-sale securities	(31,358		)	(439		)	(31,797		)
Amounts reclassified to earnings related to unrealized gains on available-for-sale securities, net of tax provision of $1.2 million	—			(1,925		)	(1,925		)
Net current period other comprehensive loss	(31,358		)	(2,364		)	(33,722		)
Balance as of September 30	$	(51,710	)	$	4,942		$	(46,768	)

NOTE 7—EARNINGS PER SHARE

The following tables set forth the computation of basic and diluted earnings per share attributable to IAC shareholders.

	Three Months Ended September 30,
	2015				2014
	Basic		Diluted		Basic		Diluted
	(In thousands, except per share data)
Numerator:
Earnings from continuing operations	$	65,026	$	65,026	$	150,261	$	150,261
Net loss attributable to noncontrolling interests	568		568		821		821
Earnings from continuing operations attributable to IAC shareholders	65,594		65,594		151,082		151,082
Earnings from discontinued operations attributable to IAC shareholders	17		17		175,730		175,730
Net earnings attributable to IAC shareholders	$	65,611	$	65,611	$	326,812	$	326,812
Denominator:
Weighted average basic shares outstanding	82,910		82,910		83,591		83,591
Dilutive securities including stock options and RSUs(a)(b)	—		5,990		—		5,199
Denominator for earnings per share—weighted average shares(a)(b)	82,910		88,900		83,591		88,790
Earnings per share attributable to IAC shareholders:
Earnings per share from continuing operations	$	0.79	$	0.74	$	1.81	$	1.70
Discontinued operations	—		—		2.10		1.98
Earnings per share	$	0.79	$	0.74	$	3.91	$	3.68

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

	Nine Months Ended September 30,
	2015						2014
	Basic			Diluted			Basic		Diluted
	(In thousands, except per share data)
Numerator:
Earnings from continuing operations	$	144,774		$	144,774		$	166,571	$	166,571
Net loss attributable to noncontrolling interests	6,558			6,558			4,082		4,082
Earnings from continuing operations attributable to IAC shareholders	151,332			151,332			170,653		170,653
(Loss) earnings from discontinued operations attributable to IAC shareholders	(11		)	(11		)	174,048		174,048
Net earnings attributable to IAC shareholders	$	151,321		$	151,321		$	344,701	$	344,701
Denominator:
Weighted average basic shares outstanding	82,924			82,924			83,088		83,088
Dilutive securities including stock options and RSUs(a)(b)	—			5,323			—		5,167
Denominator for earnings per share—weighted average shares(a)(b)	82,924			88,247			83,088		88,255
Earnings per share attributable to IAC shareholders:
Earnings per share from continuing operations	$	1.82		$	1.71		$	2.05	$	1.93
Discontinued operations	—			—			2.10		1.98
Earnings per share	$	1.82		$	1.71		$	4.15	$	3.91

_________________________________________

^(a)If the effect is dilutive, weighted average common shares outstanding include the incremental shares that would be issued upon the assumed exercise of stock options and vesting of restricted stock units ("RSUs"). For the three and nine months ended September 30, 2015, 1.0 million and 1.3 million potentially dilutive securities, respectively, are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. For both the three and nine months ended September 30, 2014, 0.3 million shares related to potentially dilutive securities are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.

^(b)Performance-based stock units ("PSUs") are included in the denominator for earnings per share if (i) the applicable performance condition(s) has been met and (ii) the inclusion of the PSUs is dilutive for the respective reporting periods. For both the three and nine months ended September 30, 2015, 0.2 million PSUs that were probable of vesting were excluded from the calculation of diluted earnings per share because the performance conditions had not been met. For both the three and nine months ended September 30, 2014, less than 0.1 million PSUs related to potentially dilutive securities are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.

NOTE 8—SEGMENT INFORMATION

The overall concept that 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 eCommerce reportable segment, do not meet the quantitative thresholds that require presentation as separate operating segments.

19

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(In thousands)
Revenue:
Search & Applications	$	377,142		$	394,659		$	1,111,406		$	1,188,410
The Match Group	274,231			230,198			768,132			655,699
Media	57,278			49,895			137,100			122,906
eCommerce	130,031			107,825			366,027			312,616
Inter-segment eliminations	(121		)	(346		)	(460		)	(838		)
Total	$	838,561		$	782,231		$	2,382,205		$	2,278,793

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(In thousands)
Operating Income (Loss):
Search & Applications	$	65,391		$	80,384		$	198,283		$	228,492
The Match Group	71,912			66,393			148,665			167,394
Media	(8,252		)	(8,723		)	(37,379		)	(27,083		)
eCommerce	4,243			(1,585		)	(3,615		)	(3,138		)
Corporate	(46,164		)	(35,516		)	(120,936		)	(97,310		)
Total	$	87,130		$	100,953		$	185,018		$	268,355

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(In thousands)
Adjusted EBITDA:
Search & Applications	$	74,391		$	93,127		$	226,202		$	266,456
The Match Group	84,339			61,371			175,017			178,169
Media	(7,746		)	(7,702		)	(37,781		)	(24,477		)
eCommerce	7,713			3,865			7,257			11,192
Corporate	(17,555		)	(16,073		)	(45,717		)	(47,225		)
Total	$	141,142		$	134,588		$	324,978		$	384,115

Revenue by geography is based on where the customer is located. Geographic information about revenue and long-lived assets is presented below:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
	(In thousands)
Revenue:
United States	$	619,297	$	544,486	$	1,755,534	$	1,560,751
All other countries	219,264		237,745		626,671		718,042
Total	$	838,561	$	782,231	$	2,382,205	$	2,278,793

20

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

	September 30, 2015		December 31, 2014
	(In thousands)
Long-lived assets (excluding goodwill and intangible assets):
United States	$	278,970	$	281,879
All other countries	20,108		20,580
Total	$	299,078	$	302,459

The Company'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 and (ii) gains and losses recognized on changes in the fair value of contingent consideration arrangements. The Company 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. Moreover, our management uses this measure internally to evaluate the performance of our business as a whole and our individual business segments. The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, and we believe that by excluding these items, Adjusted EBITDA corresponds more closely to the cash operating income generated from our business, from which capital investments are made and debt is serviced. Adjusted EBITDA has certain limitations in that it does not take into account the impact to IAC's statement of operations of certain expenses.

The following tables reconcile Adjusted EBITDA to operating income (loss) for the Company's reportable segments:

	Three Months Ended September 30, 2015
	Adjusted EBITDA			Stock-Based Compensation Expense			Depreciation			Amortization of Intangibles			Acquisition-related Contingent Consideration Fair Value Adjustments			Operating Income (Loss)
	(In thousands)
Search & Applications	$	74,391		$	—		$	(3,777	)	$	(6,736	)	$	1,513		$	65,391
The Match Group	84,339			(1,147		)	(6,173		)	(4,352		)	(755		)	71,912
Media	(7,746		)	(50		)	(280		)	(378		)	202			(8,252		)
eCommerce	7,713			(410		)	(2,188		)	(872		)	—			4,243
Corporate	(17,555		)	(25,402		)	(3,207		)	—			—			(46,164		)
Total	$	141,142		$	(27,009	)	$	(15,625	)	$	(12,338	)	$	960		$	87,130

	Three Months Ended September 30, 2014
	Adjusted EBITDA			Stock-Based Compensation Expense			Depreciation			Amortization of Intangibles			Acquisition-related Contingent Consideration Fair Value Adjustments		Operating Income (Loss)
	(In thousands)
Search & Applications	$	93,127		$	—		$	(3,596	)	$	(9,147	)	$	—	$	80,384
The Match Group	61,371			(145		)	(5,794		)	(3,320		)	14,281		66,393
Media	(7,702		)	(161		)	(225		)	(635		)	—		(8,723		)
eCommerce	3,865			(138		)	(1,963		)	(3,349		)	—		(1,585		)
Corporate	(16,073		)	(16,888		)	(2,555		)	—			—		(35,516		)
Total	$	134,588		$	(17,332	)	$	(14,133	)	$	(16,451	)	$	14,281	$	100,953

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

	Nine Months Ended September 30, 2015
	Adjusted EBITDA			Stock-Based Compensation Expense			Depreciation			Amortization of Intangibles			Acquisition-related Contingent Consideration Fair Value Adjustments		Operating Income (Loss)
	(In thousands)
Search & Applications	$	226,202		$	—		$	(11,078	)	$	(20,631	)	$	3,790	$	198,283
The Match Group	175,017			(3,816		)	(19,885		)	(14,130		)	11,479		148,665
Media	(37,781		)	(344		)	(712		)	(1,179		)	2,637		(37,379		)
eCommerce	7,257			(1,250		)	(6,258		)	(3,364		)	—		(3,615		)
Corporate	(45,717		)	(66,459		)	(8,760		)	—			—		(120,936		)
Total	$	324,978		$	(71,869	)	$	(46,693	)	$	(39,304	)	$	17,906	$	185,018

	Nine Months Ended September 30, 2014
	Adjusted EBITDA			Stock-Based Compensation Expense			Depreciation			Amortization of Intangibles			Acquisition-related Contingent Consideration Fair Value Adjustments		Operating Income (Loss)
	(In thousands)
Search & Applications	$	266,456		$	—		$	(13,143	)	$	(24,821	)	$	—	$	228,492
The Match Group	178,169			(332		)	(17,183		)	(6,841		)	13,581		167,394
Media	(24,477		)	(486		)	(731		)	(1,589		)	200		(27,083		)
eCommerce	11,192			(138		)	(5,607		)	(8,585		)	—		(3,138		)
Corporate	(47,225		)	(42,541		)	(7,544		)	—			—		(97,310		)
Total	$	384,115		$	(43,497	)	$	(44,208	)	$	(41,836	)	$	13,781	$	268,355

NOTE 9—CONSOLIDATED FINANCIAL STATEMENT DETAILS

Other income (expense), net consists of:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2015			2014		2015			2014
	(In thousands)
Gain on real estate transaction	$	33,586		$	—	$	33,586		$	—
Impairment of long-term investments	(804		)	—		(1,304		)	(64,281		)
Foreign currency exchange gains (losses)	308			2,210		4,838			(612		)
Other	910			1,903		2,706			6,083
Total	$	34,000		$	4,113	$	39,826		$	(58,810	)

NOTE 10—CONTINGENCIES

In the ordinary course of business, the Company is a party to various lawsuits. The Company 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,

22

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

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 the Company, these matters are subject to inherent uncertainties and management's view of these matters may change in the future. The Company 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 the Company. See Note 2 for additional information related to income tax contingencies.

NOTE 11—GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION

The 2013 and 2012 Senior Notes are unconditionally guaranteed, jointly and severally, by certain domestic subsidiaries that are 100% owned by the Company. The following tables present condensed consolidating financial information at September 30, 2015 and December 31, 2014 and for the three and nine months ended September 30, 2015 and 2014 for: IAC, on a stand-alone basis; the combined guarantor subsidiaries of IAC; the combined non-guarantor subsidiaries of IAC; and IAC on a consolidated basis.

Balance sheet at September 30, 2015:

	IAC		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Total Eliminations			IAC Consolidated
	(In thousands)
Cash and cash equivalents	$	360,009	$	—	$	406,439	$	—		$	766,448
Marketable securities	53,477		—		460		—			53,937
Accounts receivable, net	9		147,175		99,794		—			246,978
Other current assets	7,261		93,121		82,236		(3,735		)	178,883
Intercompany receivables	—		1,557,881		779,941		(2,337,822		)	—
Property and equipment, net	4,574		228,159		66,345		—			299,078
Goodwill	—		1,247,038		522,103		—			1,769,141
Intangible assets, net	—		307,079		152,842		—			459,921
Investment in subsidiaries	5,033,588		957,866		—		(5,991,454		)	—
Other non-current assets	92,132		28,897		139,963		(8,060		)	252,932
Total assets	$	5,551,050	$	4,567,216	$	2,250,123	$	(8,341,071	)	$	4,027,318
Accounts payable, trade	$	2,865	$	34,991	$	30,592	$	—		$	68,448
Other current liabilities	54,163		326,379		204,453		14			585,009
Long-term debt	1,000,000		—		—		—			1,000,000
Income taxes payable	858		4,531		18,252		—			23,641
Intercompany liabilities	2,337,822		—		—		(2,337,822		)	—
Other long-term liabilities	310,151		105,074		76,386		(11,809		)	479,802
Redeemable noncontrolling interests	—		—		25,227		—			25,227
IAC shareholders' equity	1,845,191		4,096,241		1,895,213		(5,991,454		)	1,845,191
Total liabilities and shareholders' equity	$	5,551,050	$	4,567,216	$	2,250,123	$	(8,341,071	)	$	4,027,318

23

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Balance sheet at December 31, 2014:

	IAC		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Total Eliminations			IAC Consolidated
	(In thousands)
Cash and cash equivalents	$	766,076	$	1,021	$	223,308	$	—		$	990,405
Marketable securities	159,197		—		1,451		—			160,648
Accounts receivable, net	13		155,262		80,811		—			236,086
Other current assets	23,923		91,105		57,487		(5,773		)	166,742
Intercompany receivables	—		1,688,403		970,810		(2,659,213		)	—
Property and equipment, net	4,950		232,819		64,690		—			302,459
Goodwill	—		1,249,807		505,119		—			1,754,926
Intangible assets, net	—		325,771		166,165		—			491,936
Investment in subsidiaries	5,035,304		930,443		—		(5,965,747		)	—
Other non-current assets	44,610		20,682		109,372		(2,988		)	171,676
Total assets	$	6,034,073	$	4,695,313	$	2,179,213	$	(8,633,721	)	$	4,274,878
Accounts payable, trade	$	3,059	$	55,320	$	22,784	$	—		$	81,163
Other current liabilities	73,491		328,920		191,197		(817		)	592,791
Long-term debt	1,000,000		80,000		—		—			1,080,000
Income taxes payable	2,240		4,771		25,624		—			32,635
Intercompany liabilities	2,659,213		—		—		(2,659,213		)	—
Other long-term liabilities	304,117		104,219		54,328		(7,944		)	454,720
Redeemable noncontrolling interests	—		—		40,427		—			40,427
IAC shareholders' equity	1,991,953		4,122,083		1,843,664		(5,965,747		)	1,991,953
Noncontrolling interests	—		—		1,189		—			1,189
Total liabilities and shareholders' equity	$	6,034,073	$	4,695,313	$	2,179,213	$	(8,633,721	)	$	4,274,878

24

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Statement of operations for the three months ended September 30, 2015:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	606,269		$	235,352		$	(3,060	)	$	838,561
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	307			117,292			87,922			(260		)	205,261
Selling and marketing expense	1,250			276,036			62,741			(2,801		)	337,226
General and administrative expense	37,186			70,225			26,710			1			134,122
Product development expense	2,408			31,945			12,506			—			46,859
Depreciation	613			10,799			4,213			—			15,625
Amortization of intangibles	—			6,246			6,092			—			12,338
Total operating costs and expenses	41,764			512,543			200,184			(3,060		)	751,431
Operating (loss) income	(41,764		)	93,726			35,168			—			87,130
Equity in earnings of unconsolidated affiliates	96,076			19,940			541			(116,159		)	398
Interest expense	(12,995		)	(2,963		)	(34		)	—			(15,992		)
Other income, net	24,678			2,911			6,411			—			34,000
Earnings from continuing operations before income taxes	65,995			113,614			42,086			(116,159		)	105,536
Income tax provision	(401		)	(35,131		)	(4,978		)	—			(40,510		)
Earnings from continuing operations	65,594			78,483			37,108			(116,159		)	65,026
Earnings (loss) from discontinued operations, net of tax	17			—			(1		)	1			17
Net earnings	65,611			78,483			37,107			(116,158		)	65,043
Net loss attributable to noncontrolling interests	—			—			568			—			568
Net earnings attributable to IAC shareholders	$	65,611		$	78,483		$	37,675		$	(116,158	)	$	65,611
Comprehensive income attributable to IAC shareholders	$	51,418		$	80,157		$	26,935		$	(107,092	)	$	51,418

25

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Statement of operations for the three months ended September 30, 2014:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	570,101		$	215,132		$	(3,002	)	$	782,231
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	387			128,968			96,028			(688		)	224,695
Selling and marketing expense	723			220,780			59,091			(2,273		)	278,321
General and administrative expense	28,046			56,955			21,976			10			106,987
Product development expense	1,935			28,131			10,676			(51		)	40,691
Depreciation	402			9,434			4,297			—			14,133
Amortization of intangibles	—			10,784			5,667			—			16,451
Total operating costs and expenses	31,493			455,052			197,735			(3,002		)	681,278
Operating (loss) income	(31,493		)	115,049			17,397			—			100,953
Equity in earnings (losses) of unconsolidated affiliates	89,209			17,246			95			(107,162		)	(612		)
Interest expense	(12,948		)	(1,050		)	(11		)	—			(14,009		)
Other (expense) income, net	(8,311		)	8,771			3,653			—			4,113
Earnings from continuing operations before income taxes	36,457			140,016			21,134			(107,162		)	90,445
Income tax benefit (provision)	114,625			(46,133		)	(8,676		)	—			59,816
Earnings from continuing operations	151,082			93,883			12,458			(107,162		)	150,261
Earnings from discontinued operations, net of tax	175,730			—			5			(5		)	175,730
Net earnings	326,812			93,883			12,463			(107,167		)	325,991
Net loss attributable to noncontrolling interests	—			—			821			—			821
Net earnings attributable to IAC shareholders	$	326,812		$	93,883		$	13,284		$	(107,167	)	$	326,812
Comprehensive income (loss) attributable to IAC shareholders	$	289,950		$	90,988		$	(23,904	)	$	(67,084	)	$	289,950

26

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Statement of operations for the nine months ended September 30, 2015:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	1,787,137		$	604,172		$	(9,104	)	$	2,382,205
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	846			354,416			225,478			(650		)	580,090
Selling and marketing expense	3,315			829,308			190,086			(8,420		)	1,014,289
General and administrative expense	95,192			202,314			80,793			(34		)	378,265
Product development expense	6,915			94,075			37,556			—			138,546
Depreciation	1,440			33,489			11,764			—			46,693
Amortization of intangibles	—			18,742			20,562			—			39,304
Total operating costs and expenses	107,708			1,532,344			566,239			(9,104		)	2,197,187
Operating (loss) income	(107,708		)	254,793			37,933			—			185,018
Equity in earnings (losses) of unconsolidated affiliates	220,971			36,312			494			(257,855		)	(78		)
Interest expense	(38,977		)	(6,220		)	(73		)	—			(45,270		)
Other income (expense), net	7,571			32,767			(512		)	—			39,826
Earnings from continuing operations before income taxes	81,857			317,652			37,842			(257,855		)	179,496
Income tax benefit (provision)	69,475			(107,397		)	3,200			—			(34,722		)
Earnings from continuing operations	151,332			210,255			41,042			(257,855		)	144,774
(Loss) earnings from discontinued operations, net of tax	(11		)	—			2			(2		)	(11		)
Net earnings	151,321			210,255			41,044			(257,857		)	144,763
Net loss attributable to noncontrolling interests	—			—			6,558			—			6,558
Net earnings attributable to IAC shareholders	$	151,321		$	210,255		$	47,602		$	(257,857	)	$	151,321
Comprehensive income (loss) attributable to IAC shareholders	$	94,533		$	207,445		$	(10,827	)	$	(196,618	)	$	94,533

27

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Statement of operations for the nine months ended September 30, 2014:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	1,672,589		$	615,536		$	(9,332	)	$	2,278,793
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	742			384,431			261,821			(2,335		)	644,659
Selling and marketing expense	1,534			677,273			177,013			(6,410		)	849,410
General and administrative expense	77,101			151,089			83,747			36			311,973
Product development expense	5,111			81,532			32,332			(623		)	118,352
Depreciation	1,043			28,219			14,946			—			44,208
Amortization of intangibles	—			29,444			12,392			—			41,836
Total operating costs and expenses	85,531			1,351,988			582,251			(9,332		)	2,010,438
Operating (loss) income	(85,531		)	320,601			33,285			—			268,355
Equity in earnings (losses) of unconsolidated affiliates	148,604			20,593			131			(178,725		)	(9,397		)
Interest expense	(38,918		)	(3,144		)	(57		)	—			(42,119		)
Other income (expense), net	11,077			(9,935		)	(59,952		)	—			(58,810		)
Earnings (loss) from continuing operations before income taxes	35,232			328,115			(26,593		)	(178,725		)	158,029
Income tax benefit (provision)	135,421			(115,862		)	(11,017		)	—			8,542
Earnings (loss) from continuing operations	170,653			212,253			(37,610		)	(178,725		)	166,571
Earnings (loss) from discontinued operations, net of tax	174,048			—			(35		)	35			174,048
Net earnings (loss)	344,701			212,253			(37,645		)	(178,690		)	340,619
Net loss attributable to noncontrolling interests	—			—			4,082			—			4,082
Net earnings (loss) attributable to IAC shareholders	$	344,701		$	212,253		$	(33,563	)	$	(178,690	)	$	344,701
Comprehensive income (loss) attributable to IAC shareholders	$	310,979		$	209,078		$	(69,668	)	$	(139,410	)	$	310,979

28

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Statement of cash flows for the nine months ended September 30, 2015:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities attributable to continuing operations	$	(145,714	)	$	310,471		$	19,350		$	184,107
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	—			(3,675		)	(39,611		)	(43,286		)
Capital expenditures	(1,051		)	(30,647		)	(12,860		)	(44,558		)
Proceeds from maturities and sales of marketable debt securities	192,928			—			—			192,928
Purchases of marketable debt securities	(93,134		)	—			—			(93,134		)
Purchases of long-term investments	—			—			(25,073		)	(25,073		)
Other, net	4,890			(1,097		)	663			4,456
Net cash provided by (used in) investing activities attributable to continuing operations	103,633			(35,419		)	(76,881		)	(8,667		)
Cash flows from financing activities attributable to continuing operations:
Purchase of treasury stock	(200,000		)	—			—			(200,000		)
Dividends	(84,947		)	—			—			(84,947		)
Principal payment on long-term debt	—			(80,000		)	—			(80,000		)
Issuance of common stock, net of withholding taxes	(40,197		)	—			—			(40,197		)
Excess tax benefits from stock-based awards	49,016			—			131			49,147
Purchase of noncontrolling interests	—			—			(29,899		)	(29,899		)
Acquisition-related contingent consideration payments	—			(202		)	(5,510		)	(5,712		)
Intercompany	(87,832		)	(195,884		)	283,716			—
Other, net	166			—			346			512
Net cash (used in) provided by financing activities attributable to continuing operations	(363,794		)	(276,086		)	248,784			(391,096		)
Total cash (used in) provided by continuing operations	(405,875		)	(1,034		)	191,253			(215,656		)
Total cash (used in) provided by discontinued operations	(192		)	—			2			(190		)
Effect of exchange rate changes on cash and cash equivalents	—			13			(8,124		)	(8,111		)
Net (decrease) increase in cash and cash equivalents	(406,067		)	(1,021		)	183,131			(223,957		)
Cash and cash equivalents at beginning of period	766,076			1,021			223,308			990,405
Cash and cash equivalents at end of period	$	360,009		$	—		$	406,439		$	766,448

29

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Statement of cash flows for the nine months ended September 30, 2014:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities attributable to continuing operations	$	(50,458	)	$	350,889		$	(5,770	)	$	294,661
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	—			(191,223		)	(52,973		)	(244,196		)
Capital expenditures	(2,375		)	(25,866		)	(10,792		)	(39,033		)
Proceeds from maturities and sales of marketable debt securities	998			—			—			998
Purchases of marketable debt securities	(110,886		)	—			—			(110,886		)
Purchases of long-term investments	(3,000		)	(7,043		)	(7,660		)	(17,703		)
Other, net	—			10			11,914			11,924
Net cash used in investing activities attributable to continuing operations	(115,263		)	(224,122		)	(59,511		)	(398,896		)
Cash flows from financing activities attributable to continuing operations:
Dividends	(68,505		)	—			—			(68,505		)
Issuance of common stock, net of withholding taxes	(4,823		)	—			—			(4,823		)
Excess tax benefits from stock-based awards	31,041			—			10,279			41,320
Purchase of noncontrolling interests	—			(30,000		)	(328		)	(30,328		)
Funds returned from escrow for Meetic tender offer	—			—			12,354			12,354
Acquisition-related contingent consideration payments	—			(286		)	(7,373		)	(7,659		)
Intercompany	106,215			(90,996		)	(15,219		)	—
Other, net	(382		)	(1,343		)	328			(1,397		)
Net cash provided by (used in) financing activities attributable to continuing operations	63,546			(122,625		)	41			(59,038		)
Total cash (used in) provided by continuing operations	(102,175		)	4,142			(65,240		)	(163,273		)
Total cash used in discontinued operations	(136		)	—			(35		)	(171		)
Effect of exchange rate changes on cash and cash equivalents	—			131			(5,419		)	(5,288		)
Net (decrease) increase in cash and cash equivalents	(102,311		)	4,273			(70,694		)	(168,732		)
Cash and cash equivalents at beginning of period	782,022			—			318,422			1,100,444
Cash and cash equivalents at end of period	$	679,711		$	4,273		$	247,728		$	931,712

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Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations

GENERAL

Key Terms:

When the following terms appear in this report, they have the meanings indicated below:

• Websites - is principally composed of Ask.com, About.com, CityGrid, Dictionary.com, Investopedia, PriceRunner and Ask.fm.

• Applications - includes our direct-to-consumer downloadable desktop search and mobile applications operations ("B2C"), including SlimWare and Apalon, and our partnership operations ("B2B").

• Dating North America - includes Match, Chemistry, People Media, OkCupid, Tinder and other dating businesses operating within the United States and Canada.

• Dating International - includes Meetic, Tinder's international operations and all dating businesses operating outside of the United States and Canada.

• Non-dating - includes The Princeton Review, Tutor.com and DailyBurn.

• Cost of revenue - consists primarily of traffic acquisition costs and includes payments made to partners who distribute our B2B customized browser-based applications, integrate our paid listings into their websites or direct traffic to our websites and fees related to distribution and the facilitating of in-app purchase of product features. These payments include amounts based on revenue share and other arrangements. Cost of revenue also includes ShoeBuy's cost of products sold and shipping and handling costs, production costs related to media produced by Electus and other businesses within our Media segment, content acquisition costs, expenses associated with the operation of the Company's data centers, including compensation (including stock-based compensation) and other employee-related costs for personnel engaged in data center functions, rent, energy and hosting fees.

• Selling and marketing expense - consists primarily of advertising expenditures and compensation (including stock-based compensation) and other employee-related costs for personnel engaged in sales, sales support and customer service functions. Advertising expenditures include online marketing, including fees paid to search engines and third parties that distribute our B2C downloadable applications, and offline marketing, which is primarily television advertising.

• General and administrative expense - consists primarily of compensation (including stock-based compensation) and other employee-related costs for personnel engaged in executive management, finance, legal, tax and human resources, facilities costs and fees for professional services.

• Product development expense -consists primarily of compensation (including stock-based compensation) and other employee-related costs that are not capitalized for personnel engaged in the design, development, testing and enhancement of product offerings and related technology.

• 2013 Senior Notes - IAC's 4.875% Senior Notes due November 30, 2018, with interest payable each May 30 and November 30, which commenced May 30, 2014.

• 2012 Senior Notes - IAC's 4.75% Senior Notes due December 21, 2022, with interest payable each June 15 and December 15, which commenced June 15, 2013.

• Liberty Bonds - 5% New York City Industrial Development Agency Liberty Bonds due September 1, 2035, with interest payable each March 1 and September 1, which commenced March 1, 2006. The Liberty Bonds were redeemed on September 1, 2015.

• Match Group, Inc. - is the company undertaking the proposed initial public offering which includes IAC's The Match Group segment, excluding DailyBurn.

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Management Overview

IAC is a leading media and Internet company. The Company is organized into four segments: Match Group, which includes dating and education businesses with brands such as Match, OkCupid, Tinder and The Princeton Review; Search & Applications, which includes brands such as About.com, Ask.com, Dictionary.com and Investopedia; Media, which consists of businesses such as Vimeo, Electus, The Daily Beast and CollegeHumor; and eCommerce, which includes HomeAdvisor and ShoeBuy. IAC's brands and products are among the most recognized in the world reaching users in over 200 countries.

For a more detailed description of the Company's operating businesses, see the Company's annual report on Form 10-K for the year ended December 31, 2014.

A substantial portion of the Company's revenue is derived from online advertising. Most of the Company's online advertising revenue is attributable to our services agreement with Google Inc. ("Google"). On October 26, 2015, the Company and Google entered into a services agreement that is effective as of April 1, 2016, following the expiration of the current services agreement, and expires on March 31, 2020. The Company may choose to terminate the agreement effective March 31, 2019. These services agreements require that we comply with certain guidelines promulgated by Google. Subject to certain limitations, Google may unilaterally update its policies and guidelines, which could 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 business, financial condition and results of operations. For the three and nine months ended September 30, 2015, revenue earned from Google is $332.0 million and $979.8 million, respectively. For the three and nine months ended September 30, 2014, revenue earned from Google is $351.4 million and $1.1 billion, respectively. This revenue is earned by the businesses comprising the Search & Applications segment.

Recent Developments

On November 9, 2015, Match Group, Inc. filed a registration statement on Form S-1 with the Securities and Exchange Commission relating to the proposed initial public offering ("IPO") of less than 20% of its common stock. The IPO is expected to be completed during the fourth quarter of 2015.

On October 28, 2015, Match Group, Inc. completed its previously announced purchase of Plentyoffish Media Inc., or PlentyOfFish, for $575 million in cash.

On October 26, 2015, the Company amended and extended its services agreement with Google as described above.

On October 16, 2015:

• Match Group, Inc. commenced a private exchange offer to eligible holders to exchange any and all of the 2012 Senior Notes for up to $500 million aggregate principal amount of new 6.75% Senior Notes due 2022 (the "Match Notes") to be issued by Match Group, Inc. ("Match Exchange Offer").

• The Company expects to exchange $443.5 million of the 2012 Senior Notes for $443.5 million of the Match Notes pursuant to the Match Exchange Offer. Based on the results of the Match Exchange Offer, IAC does not expect to accept any 2013 Senior Notes for payment in the cash tender offer, which commenced on October 16, 2015.

Factors Affecting Consolidated Results

For the three months ended September 30, 2015, the Company delivered 7% and 5% revenue and Adjusted EBITDA growth, respectively; however, operating income declined 14%. The revenue and Adjusted EBITDA increases were driven by strong growth from The Match Group and eCommerce, partially offset by declines at Search & Applications. The operating income decline, despite higher Adjusted EBITDA, was due to an increase of $9.7 million in stock-based compensation and the positive impact in the prior year period of a $14.3 million contingent consideration fair value adjustment.

For the nine months ended September 30, 2015, the Company delivered 5% revenue growth; however, Adjusted EBITDA and operating income declined 15% and 31%, respectively. The revenue growth was driven primarily by the factors described above. The Adjusted EBITDA decline was driven by lower revenue at Search & Applications, $14.8 million of costs at The Match Group related to the ongoing consolidation and streamlining of technology systems and European operations at our

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Dating businesses and increased investment at Media and eCommerce. The operating income decline was due to the decrease in Adjusted EBITDA and an increase of $28.4 million in stock-based compensation.

Results of Operations for the three and nine months ended September 30, 2015 compared to the three and nine months ended September 30, 2014

Revenue

	Three Months Ended September 30,										Nine Months Ended September 30,
	2015			$ Change			% Change	2014			2015			$ Change			% Change	2014
	(Dollars in thousands)
Search & Applications	$	377,142		$	(17,517	)	(4)%	$	394,659		$	1,111,406		$	(77,004	)	(6)%	$	1,188,410
The Match Group	274,231			44,033			19%	230,198			768,132			112,433			17%	655,699
Media	57,278			7,383			15%	49,895			137,100			14,194			12%	122,906
eCommerce	130,031			22,206			21%	107,825			366,027			53,411			17%	312,616
Inter-segment eliminations	(121		)	225			65%	(346		)	(460		)	378			45%	(838		)
Total	$	838,561		$	56,330		7%	$	782,231		$	2,382,205		$	103,412		5%	$	2,278,793

For the three months ended September 30, 2015 compared to the three months ended September 30, 2014

Search & Applications revenue decreased 4% reflecting a decline from Websites, partially offset by an increase from Applications. Websites revenue decreased 10% to $188.1 million due primarily to a decline in revenue at Ask.com and certain legacy businesses, partially offset by strong growth at About.com driven primarily by increased online marketing. Applications revenue increased 2% to $189.0 million due to 20% growth in B2C driven by higher queries from our desktop search applications and the contribution from our mobile applications (via our acquisition of Apalon on November 3, 2014), partially offset by lower revenue in B2B.

The Match Group revenue increased 19%, or 25% excluding the effects of foreign exchange, driven by an 11% increase in Dating revenue and 108% increase in Non-dating revenue. Dating North America revenue and Dating International revenue both increased 11% to $158.6 million and $76.6 million, respectively. The growth in Dating revenue was driven by increased paid subscribers. North America and International paid subscribers increased 7% and 34%, respectively. Excluding foreign exchange effects, total Dating revenue and Dating International revenue would have increased 17% and 29%, respectively. Non-dating revenue benefited from the full quarter contribution from The Princeton Review, which was acquired on August 1, 2014.

Media revenue increased 15% primarily due to strong growth at Vimeo.

eCommerce revenue increased 21% due to significant growth at HomeAdvisor driven by domestic revenue and service requests increasing 46% and 53%, respectively.

For the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014

Search & Applications revenue decreased 6% reflecting a decline of 12% from Websites while Applications had a decrease of less than 1% in revenue. Websites and Applications revenue were $542.6 million and $568.7 million, respectively. The decrease in Websites revenue is primarily due to the factors described above in the three month discussion.

The Match Group revenue increased 17%, or 23% excluding the effects of foreign exchange, driven by a 7% increase in Dating revenue and 215% increase in Non-dating revenue, due primarily to the factors described above in the three month discussion. Dating North America revenue increased 11% to $458.8 million while Dating International revenue was flat at $209.4 million. Excluding foreign exchange effects, total Dating revenue and Dating International revenue would have increased 13% and 18%, respectively.

Media and eCommerce revenue increased 12% and 17%, respectively, principally due to the factors described above in the three month discussion. Media also benefited from the March 2015 release of While We're Young by IAC Films.

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Cost of revenue

For the three months ended September 30, 2015 compared to the three months ended September 30, 2014

	Three Months Ended September 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Cost of revenue (exclusive of depreciation shown separately below)	$205,261	$(19,434)	(9)%	$224,695
As a percentage of revenue	24%			29%

Cost of revenue in 2015 decreased from 2014 due to a decrease of $37.8 million from Search & Applications, partially offset by increases of $14.3 million from The Match Group and $5.4 million from Media.

• The Search & Applications decrease was primarily due to a reduction of $40.2 million in traffic acquisition costs driven by a decline in revenue at Ask.com and B2B.

• The Match Group increase was primarily due to a significant increase in in-app purchase fees given that our native mobile apps were largely introduced in the second quarter of 2014 and the full quarter contribution from the acquisition of The Princeton Review.

• The Media increase was primarily due to increases in hosting fees and content costs related to Vimeo's expanded On Demand catalog and production costs at IAC Films.

For the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014

	Nine Months Ended September 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Cost of revenue (exclusive of depreciation shown separately below)	$580,090	$(64,569)	(10)%	$644,659
As a percentage of revenue	24%			28%

Cost of revenue in 2015 decreased from 2014 due to a decrease of $121.9 million from Search & Applications, partially offset by increases of $47.1 million from The Match Group and $12.2 million from Media.

• The Search & Applications decrease is primarily due to the factors described above in the three month discussion.

• The Match Group increase is primarily due to the factors described above in the three month discussion, as well as higher hosting fees driven by growth in users and product features. The full year contribution from the acquisition of The Princeton Review was an increase of $20.8 million.

• The Media increase is primarily due to the factors described above in the three month discussion, partially offset by decreased production costs at Electus due, in part, to the timing of certain projects.

Selling and marketing expense

For the three months ended September 30, 2015 compared to the three months ended September 30, 2014

	Three Months Ended September 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Selling and marketing expense	$337,226	$58,905	21%	$278,321
As a percentage of revenue	40%			36%

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Selling and marketing expense in 2015 increased from 2014 due to increases of $39.6 million from Search & Applications and $14.2 million from eCommerce.

• The Search & Applications increase was primarily due to an increase of $38.9 million in online marketing, which was primarily related to a significant increase in new B2C downloadable applications and About.com.

• The eCommerce increase was primarily due to increases of $10.9 million in offline and online marketing related to HomeAdvisor and $3.6 million in compensation due, in part, to increased headcount at HomeAdvisor.

For the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014

	Nine Months Ended September 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Selling and marketing expense	$1,014,289	$164,879	19%	$849,410
As a percentage of revenue	43%			37%

Selling and marketing expense in 2015 increased from 2014 due to increases of $79.7 million from Search & Applications, $46.5 million from eCommerce, $23.3 million from The Match Group and $13.5 million from Media.

• The increases from Search & Applications and eCommerce are primarily due to the factors described above in the three month discussion.

• The Match Group increase was primarily due to an increase in online marketing at Dating and DailyBurn, the acquisition of The Princeton Review and an increase in compensation.

• The Media increase was primarily due to an increase of $12.2 million in online marketing at Vimeo.

General and administrative expense

For the three months ended September 30, 2015 compared to the three months ended September 30, 2014

	Three Months Ended September 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
General and administrative expense	$134,122	$27,135	25%	$106,987
As a percentage of revenue	16%			14%

General and administrative expense in 2015 increased from 2014 due to increases of $16.8 million from The Match Group and $9.1 million from Corporate.

• The Match Group increase was primarily due to the favorable impact in the prior year of a $14.3 million acquisition-related contingent consideration fair value adjustment, as well the full quarter contribution from the acquisition of The Princeton Review.

• The Corporate increase was primarily due to higher compensation costs driven by an increase in stock-based compensation expense as a result of the modification of certain equity awards in the current year period, and certain transaction related costs.

For the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014

	Nine Months Ended September 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
General and administrative expense	$378,265	$66,292	21%	$311,973
As a percentage of revenue	16%			14%

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General and administrative expense in 2015 increased from 2014 due to increases of $38.3 million from The Match Group, $18.7 million from Corporate and $10.0 million from eCommerce.

• The Match Group increase was primarily due to an increase of $26.5 million from the acquisition of The Princeton Review, an increase of $5.9 million in severance expense and costs in the current year related to our ongoing consolidation and streamlining of technology systems and European operations at our Dating businesses and a favorable increase of $2.1 million in acquisition-related contingent consideration fair value adjustments, partially offset by a $3.9 million benefit in the prior year related to the expiration of the statute of limitations for a non-income tax matter.

• The Corporate increase was primarily due to an increase in stock-based compensation expense as a result of the modification of certain equity awards in the current year period, a higher number of forfeited awards in the prior year and the issuance of equity awards since the prior year. General and administrative expense was further impacted by certain transaction related costs.

• The eCommerce increase was primarily due to increases in employee-related costs and compensation as a result of increased headcount and an increase in bad debt expense at HomeAdvisor.

Product development expense

For the three months ended September 30, 2015 compared to the three months ended September 30, 2014

	Three Months Ended September 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Product development expense	$46,859	$6,168	15%	$40,691
As a percentage of revenue	6%			5%

Product development expense in 2015 increased from 2014 due to increases of $3.5 million from The Match Group and $1.5 million from eCommerce.

• The Match Group increase is primarily related to an increase in compensation due, in part, to an increase in headcount at our growth stage businesses.

• The eCommerce increase is primarily related to an increase in compensation at HomeAdvisor due, in part, to increased headcount.

For the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014

	Nine Months Ended September 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Product development expense	$138,546	$20,194	17%	$118,352
As a percentage of revenue	6%			5%

Product development expense in 2015 increased from 2014 due to increases of $12.5 million from The Match Group, $4.3 million from eCommerce and $1.5 million from Media.

• The Match Group increase was due to $4.0 million in severance expense in the current year, primarily incurred in the first half of 2015, related to our ongoing consolidation and streamlining of technology systems and European operations at our Dating businesses, $3.2 million related to acquisitions and an increase in compensation due, in part, to an increase in headcount at our existing Dating businesses.

• The eCommerce increase is primarily due to the factor described above in the three month discussion.

• The Media increase is due to an increase in headcount at Vimeo.

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Depreciation

For the three months ended September 30, 2015 compared to the three months ended September 30, 2014

	Three Months Ended September 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Depreciation	$15,625	$1,492	11%	$14,133
As a percentage of revenue	2%			2%

Depreciation in 2015 increased from 2014 primarily due to the full quarter contribution of The Princeton Review and incremental depreciation associated with capital expenditures.

For the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014

	Nine Months Ended September 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Depreciation	$46,693	$2,485	6%	$44,208
As a percentage of revenue	2%			2%

Depreciation in 2015 increased from 2014 primarily due to the acquisition of The Princeton Review and incremental depreciation associated with capital expenditures, partially offset by certain fixed assets becoming fully depreciated.

Adjusted EBITDA

	Three Months Ended September 30,										Nine Months Ended September 30,
	2015			$ Change			% Change	2014			2015			$ Change			% Change	2014
	(Dollars in thousands)
Search & Applications	$	74,391		$	(18,736	)	(20)%	$	93,127		$	226,202		$	(40,254	)	(15)%	$	266,456
The Match Group	84,339			22,968			37%	61,371			175,017			(3,152		)	(2)%	178,169
Media	(7,746		)	(44		)	(1)%	(7,702		)	(37,781		)	(13,304		)	(54)%	(24,477		)
eCommerce	7,713			3,848			100%	3,865			7,257			(3,935		)	(35)%	11,192
Corporate	(17,555		)	(1,482		)	(9)%	(16,073		)	(45,717		)	1,508			3%	(47,225		)
Total	$	141,142		$	6,554		5%	$	134,588		$	324,978		$	(59,137	)	(15)%	$	384,115
As a percentage of revenue	17%							17%			14%							17%

Refer to Note 8 to the consolidated financial statements for reconciliations of Adjusted EBITDA to operating income (loss) by reportable segment.

For the three months ended September 30, 2015 compared to the three months ended September 30, 2014

Search & Applications Adjusted EBITDA decreased 20% due primarily to lower revenue and an increase in selling and marketing expense, partially offset by a decrease in cost of revenue. The increase in selling and marketing expense was primarily due to a significant increase in online marketing spend related to new B2C downloadable applications and About.com. The decrease in cost of revenue was primarily due to a decrease in traffic acquisition costs driven from lower revenue from Ask.com and B2B.

The Match Group Adjusted EBITDA increased 37% due primarily to higher revenue and the impact in the prior year period of the write-off of $9.3 million of deferred revenue in connection with the acquisitions of The Princeton Review and FriendScout24, partially offset by $2.5 million of costs in the current year period related to our ongoing consolidation and streamlining of technology systems and European operations at our Dating businesses.

37

Media Adjusted EBITDA loss was slightly higher than the prior year due to increased investment in Vimeo, partially offset by increased profits from Electus.

eCommerce Adjusted EBITDA increased 100%, principally due to increased revenue at HomeAdvisor.

Corporate Adjusted EBITDA loss increased due primarily to certain transaction related costs, as well as higher compensation costs.

For the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014

Search & Applications Adjusted EBITDA decreased 15% due primarily to the factors described above in the three month discussion.

The Match Group Adjusted EBITDA decreased 2%, despite higher revenue, primarily due to $14.8 million of costs in the current year period related to our ongoing consolidation and streamlining of technology systems and European operations at our Dating businesses and an increase in cost of revenue and selling and marketing expense, partially offset by reduced losses at Non-dating. Adjusted EBITDA was further impacted by a $3.9 million benefit in the prior year related to the expiration of the statute of limitations for a non-income tax matter.

Media Adjusted EBITDA loss was larger than the prior year, due primarily to the factors described above in the three month discussion.

eCommerce Adjusted EBITDA decreased 35%, despite higher revenue, principally due to increased investment in offline and online marketing and higher compensation at HomeAdvisor.

Corporate Adjusted EBITDA loss decreased due to lower compensation.

Operating income (loss)

	Three Months Ended September 30,										Nine Months Ended September 30,
	2015			$ Change			% Change	2014			2015			$ Change			% Change	2014
	(Dollars in thousands)
Search & Applications	$	65,391		$	(14,993	)	(19)%	$	80,384		$	198,283		$	(30,209	)	(13)%	$	228,492
The Match Group	71,912			5,519			8%	66,393			148,665			(18,729		)	(11)%	167,394
Media	(8,252		)	471			5%	(8,723		)	(37,379		)	(10,296		)	(38)%	(27,083		)
eCommerce	4,243			5,828			NM	(1,585		)	(3,615		)	(477		)	(15)%	(3,138		)
Corporate	(46,164		)	(10,648		)	(30)%	(35,516		)	(120,936		)	(23,626		)	(24)%	(97,310		)
Total	$	87,130		$	(13,823	)	(14)%	$	100,953		$	185,018		$	(83,337	)	(31)%	$	268,355
As a percentage of revenue	10%							13%			8%							12%

________________________

NM = not meaningful

For the three months ended September 30, 2015 compared to the three months ended September 30, 2014

Operating income in 2015 decreased from 2014 despite the increase of $6.6 million in Adjusted EBITDA described above due to increases of $9.7 million in stock-based compensation and a decrease in gains of $13.3 million in acquisition-related contingent consideration fair value adjustments, partially offset by a $4.1 million decrease in amortization of intangibles. The increase in stock-based compensation was primarily due to the modification of certain equity awards in the current year period. The decrease in gains related to acquisition-related contingent consideration fair value adjustments was the result of an update of the future forecast of earnings and operating metrics related to certain acquired businesses.

38

At September 30, 2015, there was $195.1 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 2.7 years.

For the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014

Operating income in 2015 decreased from 2014 due to the decrease of $59.1 million in Adjusted EBITDA described above and increases of $28.4 million in stock-based compensation and $2.5 million in depreciation, partially offset by an increase in gains of $4.1 million in acquisition-related contingent consideration fair value adjustments and a decrease of $2.5 million in amortization of intangibles. The increase in stock-based compensation and acquisition-related contingent consideration fair value adjustments are primarily due to the factors described above in the three month discussion. Stock-based compensation was further impacted by a higher number of forfeited awards in the prior year and issuance of equity awards since the prior year.

Equity in earnings (losses) of unconsolidated affiliates

For the three months ended September 30, 2015 compared to the three months ended September 30, 2014

	Three Months Ended September 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Equity in earnings (losses) of unconsolidated affiliates	$398	$1,010	NM	$(612)

Equity in earnings of unconsolidated affiliates in 2015 increased from 2014 primarily due to reduced losses associated with our equity method investees.

For the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014

	Nine Months Ended September 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Equity in losses of unconsolidated affiliates	$(78)	$9,319	99%	$(9,397)

Equity in losses of unconsolidated affiliates in 2015 decreased from 2014 principally due to the inclusion in the second quarter of 2014 of a $4.2 million other-than-temporary impairment charge on one of our investments following the sale of a majority of the investee's assets and reduced losses associated with our equity method investees.

Interest expense

For the three months ended September 30, 2015 compared to the three months ended September 30, 2014

	Three Months Ended September 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Interest expense	$(15,992)	$(1,983)	(14)%	$(14,009)

Interest expense in 2015 increased from 2014 primarily due to the accelerated amortization of deferred financing costs associated with the redemption of the Liberty Bonds on September 1, 2015.

For the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014

	Nine Months Ended September 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Interest expense	$(45,270)	$(3,151)	(7)%	$(42,119)

Interest expense increased in 2015 from 2014 due the factor described above in the three month discussion.

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Other income (expense), net

For the three months ended September 30, 2015 compared to the three months ended September 30, 2014

	Three Months Ended September 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Other income, net	$34,000	$29,887	727%	$4,113

Other income, net in 2015 increased from 2014 principally due to a pre-tax gain of $33.6 million from the sale of a real estate transaction in the current year period, partially offset by a decrease in net foreign currency exchange gains in the current year.

For the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014

	Nine Months Ended September 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Other income (expense), net	$39,826	$98,636	NM	$(58,810)

Other income (expense), net in 2015 increased from 2014 primarily due to a pre-tax gain of $33.6 million from the sale of a real estate transaction in the current year period and the inclusion in the prior year period of $64.2 million in other-than-temporary impairment charges related to certain cost method investments. These charges resulted from our assessment of the near-term prospects and financial condition of the investees.

Income tax (provision) benefit

For the three months ended September 30, 2015 compared to the three months ended September 30, 2014

	Three Months Ended September 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Income tax (provision) benefit	$(40,510)	NM	NM	$59,816
Effective income tax rate	38%			NM

The 2015 effective income tax rate is higher than the statutory rate of 35% due primarily to state taxes, partially offset by foreign income taxed at lower rates. The 2014 income tax benefit is due principally to a reduction in tax reserves and related interest due to the expiration of statutes of limitations for federal income taxes for 2001 through 2009 of $88.2 million.

For the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014

	Nine Months Ended September 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Income tax benefit (provision)	$(34,722)	NM	NM	$8,542
Effective income tax rate	19%			NM

The 2015 effective income tax rate is lower than the statutory rate of 35% due primarily to the realization of certain deferred tax assets, a reduction in tax reserves and related interest due to the expiration of statutes of limitations and the non-taxable gain on contingent consideration fair value adjustments in the current year period. The 2014 income tax benefit is due primarily to the factors described above in the three month discussion.

The Company recognizes interest and, if applicable, penalties related to unrecognized tax benefits in income tax provision. Included in the income tax provision for continuing operations for the three and nine months ended September 30, 2015, is a less than $0.1 million expense and a $0.2 million benefit, respectively, net of related deferred taxes, for interest on

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unrecognized tax benefits. At September 30, 2015 and December 31, 2014, the Company has accrued $2.2 million and $2.8 million, respectively, for the payment of interest. At September 30, 2015 and December 31, 2014, the Company has accrued $2.1 million and $2.9 million, respectively, for penalties.

The Company is routinely under audit by federal, state, local and foreign authorities in the area of income tax. 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 is currently auditing the Company’s federal income tax returns for the years ended December 31, 2010 through 2012. Various other jurisdictions are open to examination for various tax years beginning with 2009. Income taxes payable include reserves considered sufficient to pay assessments that may result from examination of prior year tax returns. Changes to reserves from period to period and differences between amounts paid, if any, upon resolution of audits and amounts previously provided may be material. Differences between the reserves for uncertain tax positions and the amounts owed by the Company are recorded in the period they become known.

At September 30, 2015 and December 31, 2014, unrecognized tax benefits, including interest and penalties, are $24.8 million and $33.2 million, respectively. If unrecognized tax benefits at September 30, 2015 are subsequently recognized, $22.8 million, net of related deferred tax assets and interest, would reduce income tax provision for continuing operations. The Company believes that it is reasonably possible that its unrecognized tax benefits could decrease by $7.7 million within twelve months of September 30, 2015 primarily due to expiration of statutes of limitations and settlements.

Earnings (loss) from discontinued operations, net of tax

For the three months ended September 30, 2015 compared to the three months ended September 30, 2014

	Three Months Ended September 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Earnings from discontinued operations, net of tax	$17	NM	NM	$175,730

Earnings from discontinued operations, net of tax in 2015 decreased from 2014 due to the prior year inclusion of a reduction in tax reserves related to the expiration of the statutes of limitations for federal income taxes for the years 2001 through 2009.

For the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014

	Nine Months Ended September 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
(Loss) earnings from discontinued operations, net of tax	$(11)	NM	NM	$174,048

(Loss) earnings from discontinued operations, net of tax in 2015 decreased from 2014 due to the factor described above in the three month discussion.

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FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES

Financial Position

	September 30, 2015		December 31, 2014
	(In thousands)
Cash and cash equivalents:
United States (1)	$	361,575	$	770,050
All other countries (2)	404,873		220,355
Marketable securities (United States) (3)	53,937		160,648
Total cash and cash equivalents and marketable securities	$	820,385	$	1,151,053
Long-term debt:
2013 Senior Notes due November 30, 2018	$	500,000	$	500,000
2012 Senior Notes due December 15, 2022	500,000		500,000
Liberty Bonds due September 1, 2035	—		80,000
Total long-term debt	$	1,000,000	$	1,080,000

⁽¹⁾ Domestically, cash equivalents primarily consist of AAA rated money market funds and commercial paper rated A2/P2.

⁽²⁾ Internationally, cash equivalents primarily consist of AAA rated money market funds and time deposits. If needed for our U.S. operations, most of the cash and cash equivalents held by the Company's foreign subsidiaries could be repatriated; however, under current law, would be subject to U.S. federal and state income taxes. We have not provided for any such tax because the Company currently does not anticipate a need to repatriate these funds to finance our U.S. operations and it is the Company's intent to indefinitely reinvest these funds outside of the U.S.

⁽³⁾ Marketable securities consist of short-to-medium-term debt securities issued by investment grade corporate issuers and an equity security. The Company 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. The Company also invests in equity securities as part of its investment strategy.

Cash Flow Information

In summary, the Company's cash flows attributable to continuing operations are as follows:

	Nine Months Ended September 30,
	2015			2014
	(In thousands)
Net cash provided by operating activities	$	184,107		$	294,661
Net cash used in investing activities	(8,667		)	(398,896		)
Net cash used in financing activities	(391,096		)	(59,038		)

2015

Net cash provided by operating activities attributable to continuing operations consists of earnings or loss from continuing operations adjusted for non-cash items, including stock-based compensation expense, depreciation, amortization of intangibles, asset impairment charges, excess tax benefits from stock-based awards, deferred income taxes, equity in earnings or losses of unconsolidated affiliates, acquisition-related contingent consideration fair value adjustments, gain on a real estate transaction and the effect of changes in working capital. Net cash provided by operating activities attributable to continuing operations in 2015 consists of earnings from continuing operations of $144.8 million and adjustments for non-cash items of $64.6 million, partially offset by a $25.3 million decrease in cash from changes in working capital. Adjustments for non-cash items primarily

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consist of $71.9 million of stock-based compensation, $46.7 million of depreciation and $39.3 million of amortization of intangibles, partially offset by $49.1 million of excess tax benefits from stock-based awards, $33.6 million of gain on a real estate transaction and $17.9 million in acquisition-related contingent consideration fair value adjustments. The decrease from changes in working capital consist primarily of an increase in accounts receivable of $25.8 million, a decrease of $17.5 million in accounts payable and other current liabilities, an increase in other assets of $13.7 million, and a decrease in income taxes payable of $13.7 million, partially offset by an increase in deferred revenue of $45.7 million. The increase in accounts receivable is primarily due growth in Match's in-app purchases sold through their mobile products and revenue growth at HomeAdvisor. The decrease in accounts payable and other current liabilities is due mainly to a decrease in accrued revenue share and accrued advertising expense at the Search & Applications segment, partially offset by an increase in accrued advertising at The Match Group segment. The decrease at Search & Applications in accrued revenue share is due mainly to lower B2B revenue. The decrease at Search & Applications in accrued advertising is due mainly to lower fees paid to search engines and timing of payments. The increase in accrued advertising at The Match Group segment is due mainly to increased online spending. The increase in other assets is primarily due to an increase in VAT refund receivables and an increase in inventory at Shoebuy, due mainly to seasonality. The decrease in income taxes payable is due to current year income tax payments in excess of current year income tax accruals. The increase in deferred revenue is due mainly to growth in prepaid revenue at The Match Group, Vimeo and HomeAdvisor, an increase at Electus due to the timing of various production deals, and increases related to acquisitions.

Net cash used in investing activities attributable to continuing operations in 2015 includes the purchase of marketable debt securities, net of proceeds from maturities and sales, of $99.8 million, the purchase of investments and acquisitions of $68.4 million and capital expenditures of $44.6 million, primarily related to the internal development of software to support our products and services, and computer hardware.

Net cash used in financing activities attributable to continuing operations in 2015 includes $200.0 million for the repurchase of 3.0 million shares of common stock at an average price of $67.68 per share, $84.9 million related to the payment of cash dividends to IAC shareholders, $80.0 million for the early redemption of the Liberty Bonds, $40.2 million in proceeds related to the issuance of common stock, net of withholding taxes, $29.9 million for the purchase of noncontrolling interests and $5.7 million in contingent consideration payments, partially offset by excess tax benefits from stock-based awards of $49.1 million.

2014

Net cash provided by operating activities attributable to continuing operations in 2014 consists of earnings from continuing operations of $166.6 million and adjustments for non-cash items of $246.9 million, partially offset by a decrease in cash from changes in working capital of $118.8 million. Adjustments for non-cash items primarily consist of $88.7 million of deferred income taxes, $64.3 million in impairments related to long-term investments, $44.2 million of depreciation, $43.5 million of stock-based compensation expense and $41.8 million of amortization of intangibles, partially offset by $41.3 million of excess tax benefits from stock-based awards and $13.8 million in acquisition-related contingent consideration. The deferred income tax provision relates to a net reduction in deferred tax assets related to the expiration of statutes of limitations for federal income taxes for the years 2001-2009. The decrease in cash from changes in working capital activities primarily consists of a decrease in income taxes payable of $114.6 million, a decrease of $24.2 million in accounts payable and other current liabilities, an increase in accounts receivable of $12.8 million and an increase in other assets of $8.7 million, partially offset an increase in deferred revenue of $41.7 million. The decrease in income taxes payable is primarily due to a net reduction in tax reserves related to the expiration of statutes of limitations for federal income taxes for the years 2001 through 2009. The decrease in accounts payable and other current liabilities is due to a decrease in accrued revenue share due to lower B2B revenue in the Search & Applications segment and a seasonal decrease in payables to suppliers at Shoebuy. The increase in accounts receivable is primarily due to revenue growth at HomeAdvisor. The increase in other assets is primarily due to an increase in production costs at certain of our media businesses that are capitalized as the television program, video or film is being produced and a receivable related to amounts collected on our behalf by a third party, partially offset by the receipt of insurance claims related to Hurricane Sandy. The increase in deferred revenue is due to growth in subscription revenue at The Match Group and Vimeo, an increase at Electus due to the timing of cash received related to various production deals and increases related to acquisitions.

Net cash used in investing activities attributable to continuing operations in 2014 includes acquisitions and investments of $261.9 million, which includes the ValueClick O&O website businesses, The Princeton Review and SlimWare, the net proceeds of purchases, sales and maturities of marketable debt securities of $109.9 million, and capital expenditures of $39.0 million, primarily related to the internal development of software to support our products and services.

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Net cash used in financing activities attributable to continuing operations in 2014 includes $68.5 million related to the payment of cash dividends to IAC shareholders, $30.3 million for the purchase of noncontrolling interests in Tinder and Meetic, $7.7 million in contingent consideration payments related to the 2013 Twoo acquisition and $4.8 million in proceeds related to the issuance of common stock, net of withholding taxes, partially offset by excess tax benefits from stock-based awards of $41.3 million and the return of $12.4 million of funds returned from escrow related to the Meetic tender offer.

Liquidity and Capital Resources

The Company's principal sources of liquidity are its cash and cash equivalents and marketable securities as well as cash flows generated from operations. IAC has a $300 million revolving credit facility that was amended and restated on October 7, 2015, and now expires on October 7, 2020 (the "IAC credit facility"). The obligations under the IAC credit facility are secured by the stock of certain IAC domestic and foreign subsidiaries and unconditionally guaranteed by certain IAC domestic subsidiaries. At September 30, 2015, there were no outstanding borrowings under the IAC credit facility. On October 7, 2015, Match Group, Inc. entered into a credit agreement (the "Match Credit Agreement"), which provides for a five-year $500 million revolving credit facility that includes a $40 million sub-limit for letters of credit (the "Match credit facility"). The obligations under the Match credit facility are secured by the stock of certain Match Group, Inc. domestic and foreign subsidiaries and guaranteed by the same entities that guarantee the IAC credit facility. The Match credit facility expires on October 7, 2020. Match Group, Inc. currently expects to enter into an $800 million seven-year term loan facility under the Match Credit Agreement. The Company expects that, promptly following the closing of the Match Exchange Offer, defined below, Match Group, Inc. will be designated an unrestricted subsidiary of IAC for purposes of the indentures governing the 2013 and 2012 Senior Notes and the IAC credit facility. Upon such designation, neither Match Group, Inc. nor any of its subsidiaries will guarantee any debt of the Company.

On October 16, 2015, Match Group, Inc. commenced a private exchange offer to eligible holders to exchange any and all of the 2012 Senior Notes for up to $500 million aggregate principal amount of new 6.75% Senior Notes due 2022 (the "Match Notes") to be issued by Match Group, Inc. ("Match Exchange Offer"). The Company expects to exchange $443.5 million of the 2012 Senior Notes for $443.5 million of the Match Notes pursuant to the Match Exchange Offer. Based on the results of the Match Exchange Offer, IAC does not expect to accept any 2013 Senior Notes for payment in the cash tender offer, which commenced on October 16, 2015.

The Company anticipates that it will need to make capital and other expenditures in connection with the development and expansion of its operations. The Company expects that 2015 capital expenditures will be higher than 2014 by approximately 30%, driven by our ongoing consolidation and streamlining of technology systems at The Match Group and HomeAdvisor's online scheduling product, called Instant Booking. At September 30, 2015, IAC had 5.6 million shares remaining in its share repurchase authorization. IAC may purchase shares over an indefinite period of time on the open market and in privately negotiated transactions, depending on those factors IAC management deems relevant at any particular time, including, without limitation, market conditions, share price and future outlook. On October 26, 2015, IAC declared a quarterly cash dividend of $0.34 per share of common and Class B common stock outstanding payable on December 1, 2015 to stockholders of record on November 15, 2015. Future declarations of dividends are subject to the determination of IAC's Board of Directors.

The Company believes its existing cash, cash equivalents and marketable securities, together with its expected positive cash flows generated from operations and available borrowing capacity under its revolving credit facilities, will be sufficient to fund its normal operating requirements, including capital expenditures, quarterly cash dividends, and investing and other commitments for the foreseeable future. Our liquidity could be negatively affected by a decrease in demand for our products and services. On October 28, 2015, Match Group, Inc. completed its acquisition of PlentyOfFish for $575 million, which was funded by cash on hand. The Company may make additional acquisitions and investments and, as a result, the Company may need to raise additional capital through future debt or equity financing to provide for greater financial flexibility. Additional financing may not be available at all or on terms favorable to us. The indentures governing the 2013 and 2012 Senior Notes restrict our ability to incur additional indebtedness in the event we are not in compliance with the maximum leverage ratio of 3.0 to 1.0. In addition, the terms of the Company's revolving credit facility require that we maintain a leverage ratio of not more than 3.25 to 1.0 and restrict our ability to incur additional indebtedness. As of September 30, 2015, the Company was in compliance with all applicable covenants. The terms of the Match Group, Inc. $500 million revolving credit facility require Match Group, Inc. to maintain a leverage ratio of not more than 5.00 to 1.00 and a minimum interest coverage ratio of not less than 2.50 to 1.00, and restrict Match Group, Inc.'s ability to incur additional indebtedness.

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CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS

	Payments Due by Period
Contractual Obligations(a)	Less Than 1 Year		1–3 Years		3–5 Years		More Than 5 Years		Total
	(In thousands)
Long-term debt(b)	$	48,125	$	96,250	$	559,688	$	559,375	$	1,263,438
Operating leases(c)	34,323		55,570		30,069		184,310		304,272
Purchase obligations(d)	3,081		346		8		—		3,435
Total contractual cash obligations	$	85,529	$	152,166	$	589,765	$	743,685	$	1,571,145

_______________________________________________________________________________

^(a)  The Company has excluded $23.0 million in unrecognized tax benefits and related interest from the table above as we are unable to make a reasonably reliable estimate of the period in which these liabilities might be paid. For additional information on income taxes, see Note 2 to the consolidated financial statements.

^(b)  Represents contractual amounts due including interest.

^(c)  The Company leases land, office space, data center facilities and equipment used in connection with operations under various operating leases, many of which contain escalation clauses. The Company is also committed to pay a portion of the related operating expenses under a data center lease agreement. These operating expenses are not included in the table above.

^(d)  The purchase obligations primarily include advertising commitments, which commitments are reducible or terminable such that these commitments can never exceed associated revenue by a meaningful amount.

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IAC'S PRINCIPLES OF FINANCIAL REPORTING

IAC reports Adjusted EBITDA as a supplemental measure to U.S. generally accepted accounting principles ("GAAP"). This measure is one of the primary metrics by which we evaluate the performance of our businesses, on which our internal budgets are based and by which management is compensated. We believe that investors should have access to, and we are obligated to provide, the same set of tools that we use in analyzing our results. This non-GAAP measure should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. IAC endeavors to compensate for the limitations of the non-GAAP measure presented by providing the comparable GAAP measure with equal or greater prominence and descriptions of the reconciling items, including quantifying such items, to derive the non-GAAP measure. We encourage investors to examine the reconciling adjustments between the GAAP and non-GAAP measure, which we discuss below.

Definition of IAC's Non-GAAP Measure

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") 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 and (ii) gains and losses recognized on changes in the fair value of contingent consideration arrangements. We believe this measure is useful for analysts and investors as this measure allows a more meaningful comparison between our performance and that of our competitors. Moreover, our management uses this measure internally to evaluate the performance of our business as a whole and our individual business segments. The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, and we believe that by excluding these items, Adjusted EBITDA corresponds more closely to the cash operating income generated from our business, from which capital investments are made and debt is serviced. Adjusted EBITDA has certain limitations in that it does not take into account the impact to IAC's statement of operations of certain expenses.

Non-Cash Expenses That Are Excluded From IAC's Non-GAAP Measure

Stock-based compensationexpense consists principally of expense associated with the grants, including unvested grants assumed in acquisitions, of stock options, restricted stock units ("RSUs") and performance-based RSUs. These expenses are not paid in cash, and we include the related shares in our fully diluted shares outstanding using the treasury stock method; however, performance-based RSUs are included only to the extent the performance criteria have been met (assuming the end of the reporting period is the end of the contingency period). Upon the exercise of certain stock options and vesting of RSUs and performance-based RSUs, the awards are settled, at the Company's discretion, on a net basis, with the Company remitting the required tax-withholding amount from its current funds.

Depreciation is a non-cash expense relating to our property and equipment and is computed using the straight-line method to allocate the cost of depreciable assets to operations over their estimated useful lives.

Amortization of intangible assets and impairments of goodwill and intangible assets are non-cash expenses related primarily to acquisitions. At the time of an acquisition, the identifiable definite-lived intangible assets of the acquired company, such as content, technology, customer lists, advertiser and supplier relationships, are valued and amortized over their estimated lives. Value is also assigned to acquired indefinite-lived intangible assets, which comprise trade names and trademarks, and goodwill that are not subject to amortization. An impairment is recorded when the carrying value of an intangible asset or goodwill exceeds its fair value. While it is likely that we will have significant intangible amortization expense as we continue to acquire companies, we believe that intangible assets represent costs incurred by the acquired company to build value prior to acquisition and the related amortization and impairment charges of intangibles assets or goodwill, if applicable, are not ongoing costs of doing business.

Gains and losses recognized on changes in the fair value of contingent consideration arrangements are accounting adjustments to report contingent consideration liabilities at fair value. These adjustments can be highly variable and are excluded from our assessment of performance because they are considered non-operational in nature and, therefore, are not indicative of current or future performance or ongoing costs of doing business.

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RECONCILIATION OF ADJUSTED EBITDA

For a reconciliation of Adjusted EBITDA to operating income (loss) by reportable segment for the three and nine months ended September 30, 2015 and 2014, see Note 8 to the consolidated financial statements.

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Item 3.    Quantitative and Qualitative Disclosures about Market Risk

At September 30, 2015, there have been no material changes to the Company's instruments or positions that are sensitive to interest rate risk and equity price risk since the disclosure in our Annual Report on Form 10-K for the year ended December 31, 2014.

Foreign Currency Exchange Risk

The Company conducts business in certain foreign markets, primarily in the European Union. For both the three and nine months ended September 30, 2015, international revenue accounted for 26% of consolidated revenue. The Company's primary exposure to foreign currency exchange risk relates to investments in foreign subsidiaries that transact business in a functional currency other than the U.S. Dollar, primarily the Euro. As foreign currency exchange rates change, translation of the statements of operations of the Company's international businesses into U.S. dollars affects year-over-year comparability of operating results. The average Euro versus the U.S. Dollar exchange rate was 16% lower in the third quarter of 2015 than 2014. The decrease had a significant impact to the revenue of The Match Group. For the three months ended September 30, 2015, The Match Group revenue, Dating revenue and Dating International revenue would have increased approximately 25%, 17% and 29%, respectively, as compared to the reported increases of 19%, 11% and 11%, respectively, had the foreign currency exchange rates been the same as the third quarter of 2014. For the nine months ended September 30, 2015, The Match Group revenue, Dating revenue and Dating International revenue would have increased approximately 23%, 13% and 18%, respectively, as compared to the reported increases of 17%, 7% and less than 1%, respectively, had the foreign currency exchange rates been the same as the first nine months of 2014.

Historically, the Company has not hedged any foreign currency exposures. Our continued international expansion increases our exposure to exchange rate fluctuations and as a result such fluctuations could have a significant impact on our future results of operations.

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Item 4.    Controls and Procedures

The Company monitors and evaluates on an ongoing basis its disclosure controls and internal control over financial reporting in order to improve its overall effectiveness. In the course of these evaluations, the Company modifies and refines its internal processes as conditions warrant.

As required by Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), IAC management, including our principal executive and principal financial officers, or persons performing similar functions, evaluated the effectiveness of the Company's disclosure controls and procedures as defined by Rule 13a-15(e) under the Exchange Act. Based on this evaluation, management has concluded that the Company's disclosure controls and procedures were effective as of the end of the period covered by this report in providing reasonable assurance that information we are required to disclose in our filings with the Securities and Exchange Commission under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and Forms, and include controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

There were no changes to the Company's internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II

OTHER INFORMATION

Item 1A.    Risk Factors

Cautionary Statement Regarding Forward-Looking Information

This quarterly report on Form 10-Q contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as "anticipates," "estimates," "expects," "intends," "plans" and "believes," among others, generally identify forward-looking statements. These forward-looking statements include, among others, statements relating to: IAC's future financial performance, IAC's business prospects and strategy, anticipated trends and prospects in the industries in which IAC's businesses operate and other similar matters. These forward-looking statements are based on IAC management's current expectations and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict.

Actual results could differ materially from those contained in these forward-looking statements for a variety of reasons, including, among others: changes in senior management at IAC and/or its businesses, changes in our relationship with, or policies implemented by, Google, adverse changes in economic conditions, either generally or in any of the markets or industries in which IAC's businesses operate, adverse trends in the online advertising industry or the advertising industry generally, our ability to convert visitors to our various websites into users and customers, our ability to offer new or alternative products and services in a cost-effective manner and consumer acceptance of these products and services, changes in industry standards and technology, actual tax liabilities that differ materially from our estimates, operational and financial risks relating to acquisitions, our ability to expand successfully into international markets and regulatory changes. Certain of these and other risks and uncertainties are discussed in IAC's filings with the SEC, including in Part I "Item 1A. Risk Factors" of our annual report on Form 10-K for the fiscal year ended December 31, 2014. Other unknown or unpredictable factors that could also adversely affect IAC's business, financial condition and operating results may arise from time to time. In light of these risks and uncertainties, the forward-looking statements discussed in this report may not prove to be accurate. Accordingly, you should not place undue reliance on these forward-looking statements, which only reflect the views of IAC management as of the date of this quarterly report. IAC does not undertake to update these forward-looking statements.

Risk Factors

In addition to the other information set forth in this quarterly report, you should carefully consider the risk factors discussed in Part I "Item 1A. Risk Factors" of our annual report on Form 10-K for the fiscal year ended December 31, 2014, which could materially affect our business, financial condition or future operating results. The risks described in this report are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or future operating results.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

The Company did not purchase any shares of its common stock during the quarter ended September 30, 2015. As of that date, 5,606,904 shares of common stock remained available for repurchase under the Company's previously announced April 2013 repurchase authorization. IAC may purchase shares pursuant to this repurchase authorization over an indefinite period in the open market and/or privately negotiated transactions, depending on those factors IAC management deems relevant at any particular time, including, without limitation, market conditions, share price and future outlook.

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Item 6.    Exhibits

The documents set forth below, numbered in accordance with Item 601 of Regulation S-K, are filed herewith, incorporated by reference to the location indicated or furnished herewith.

Exhibit Number	Description	Location
3.1	Restated Certificate of Incorporation of IAC/InterActiveCorp.	Exhibit 3.1 to the Registrant's Registration Statement on Form 8-A/A, filed on August 12, 2005.
3.2	Certificate of Amendment of the Restated Certificate of Incorporation of IAC/InterActiveCorp.	Exhibit 3.1 to the Registrant's Current Report on Form 8-K, filed on August 22, 2008.
3.3	Amended and Restated By-Laws of IAC/InterActiveCorp.	Exhibit 3.1 to the Registrant's Current Report on Form 8-K, filed on December 6, 2010.
10.1	Stock Purchase Agreement, dated as of July 13, 2015, by and among Match.com Inc., Plentyoffish Media Inc., Markus Frind, Markus Family Trust No. 2, and Frind Enterprises Ltd.	Exhibit 2.1 to the Registrant's Current Report on Form 8-K, filed on July 17, 2015.
31.1	Certification of the Chairman and Senior Executive pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act.(1)
31.2	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act.(1)
31.3	Certification of the Principal Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act.(1)
32.1	Certification of the Chairman and Senior Executive pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act.(2)
32.2	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act.(2)
32.3	Certification of the Principal Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act.(2)
101.INS	XBRL Instance
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation
101.DEF	XBRL Taxonomy Extension Definition
101.LAB	XBRL Taxonomy Extension Labels
101.PRE	XBRL Taxonomy Extension Presentation

_______________________________________________________________________________

⁽¹⁾  Filed herewith.

⁽²⁾  Furnished herewith.

51

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated:	November 9, 2015
		IAC/INTERACTIVECORP
		By:	/s/ GREGG WINIARSKI
			Gregg Winiarski
			Executive Vice President, General Counsel & Secretary (acting Principal Financial Officer)

Signature	Title	Date
/s/ GREGG WINIARSKI	Executive Vice President, General Counsel & Secretary (acting Principal Financial Officer)	November 9, 2015
Gregg Winiarski

52

QuickLinks

53

EX-31.1

Exhibit 31.1

Certification

I, Barry Diller, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended September 30, 2015 of IAC/InterActiveCorp;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:            

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:	November 9, 2015	/s/ BARRY DILLER
		Barry Diller Chairman and Senior Executive

EX-31.2

Exhibit 31.2

Certification

I, Joseph Levin, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended September 30, 2015 of IAC/InterActiveCorp;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:            

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:	November 9, 2015	/s/ JOSEPH LEVIN
		Joseph Levin Chief Executive Officer

EX-31.3

Exhibit 31.3

Certification

I, Gregg Winiarski, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended September 30, 2015 of IAC/InterActiveCorp;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:  

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and  

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:	November 9, 2015	/s/ GREGG WINIARSKI
		Gregg Winiarski Executive Vice President, General Counsel & Secretary (acting Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Barry Diller, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that, to my knowledge:

(1) the Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2015 of IAC/InterActiveCorp (the "Report") which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of IAC/InterActiveCorp.

Dated:	November 9, 2015	/s/ BARRY DILLER
		Barry Diller Chairman and Senior Executive

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Joseph Levin, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that, to my knowledge:

(1) the Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2015 of IAC/InterActiveCorp (the "Report") which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of IAC/InterActiveCorp.

Dated:	November 9, 2015	/s/ JOSEPH LEVIN
		Joseph Levin Chief Executive Officer

EX-32.3

Exhibit 32.3

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Gregg Winiarski, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that, to my knowledge:

(1) the Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2015 of IAC/InterActiveCorp (the "Report") which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of IAC/InterActiveCorp.

Dated:	November 9, 2015	/s/ GREGG WINIARSKI
		Gregg Winiarski Executive Vice President, General Counsel & Secretary (acting Principal Financial Officer)

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EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Numerator: Basic
Earnings from continuing operations	$ 65,026	$ 150,261	$ 144,774	$ 166,571
Net loss attributable to noncontrolling interests	568	821	6,558	4,082
Earnings from continuing operations attributable to IAC shareholders	65,594	151,082	151,332	170,653
Earnings (loss) from discontinued operations, net of tax	17	175,730	(11)	174,048
Net earnings (loss) attributable to IAC shareholders	65,611	326,812	151,321	344,701
Numerator: Diluted
Earnings from continuing operations	65,026	150,261	144,774	166,571
Net loss attributable to noncontrolling interests	568	821	6,558	4,082
Earnings from continuing operations attributable to IAC shareholders	65,594	151,082	151,332	170,653
Earnings (loss) from discontinued operations, net of tax	17	175,730	(11)	174,048
Net earnings (loss) attributable to IAC shareholders	$ 65,611	$ 326,812	$ 151,321	$ 344,701
Denominator: Basic
Weighted average basic shares outstanding	82,910	83,591	82,924	83,088
Denominator: Diluted
Weighted average basic shares outstanding	82,910	83,591	82,924	83,088
Dilutive securities including stock options and RSUs (in shares)	5,990	5,199	5,323	5,167
Denominator for earnings per share-weighted average shares (in shares)	88,900	88,790	88,247	88,255
Earnings (loss) per share attributable to IAC shareholders: Basic
Earnings per share from continuing operations (in dollars per share)	$ 0.79	$ 1.81	$ 1.82	$ 2.05
Discontinued operations (in dollars per share)	0.00	2.10	0.00	2.10
Earnings per share (in dollars per share)	0.79	3.91	1.82	4.15
Earnings (loss) per share attributable to IAC shareholders: Diluted
Earnings per share from continuing operations (in dollars per share)	0.74	1.70	1.71	1.93
Discontinued operations (in dollars per share)	0.00	1.98	0.00	1.98
Earnings per share (in dollars per share)	$ 0.74	$ 3.68	$ 1.71	$ 3.91

XML

GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION (Details2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Condensed Financial Statements, Captions [Line Items]
Revenue	$ 838,561	$ 782,231	$ 2,382,205	$ 2,278,793
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	205,261	224,695	580,090	644,659
Selling and marketing expense	337,226	278,321	1,014,289	849,410
General and administrative expense	134,122	106,987	378,265	311,973
Product development expense	46,859	40,691	138,546	118,352
Depreciation	15,625	14,133	46,693	44,208
Amortization of intangibles	12,338	16,451	39,304	41,836
Total operating costs and expenses	751,431	681,278	2,197,187	2,010,438
Operating income	87,130	100,953	185,018	268,355
Equity in earnings of unconsolidated affiliates	398	(612)	(78)	(9,397)
Interest expense	(15,992)	(14,009)	(45,270)	(42,119)
Other (expense) income, net	34,000	4,113	39,826	(58,810)
Earnings from continuing operations before income taxes	105,536	90,445	179,496	158,029
Income tax benefit (provision)	(40,510)	59,816	(34,722)	8,542
Earnings from continuing operations	65,026	150,261	144,774	166,571
Earnings (loss) from discontinued operations, net of tax	17	175,730	(11)	174,048
Net earnings	65,043	325,991	144,763	340,619
Net loss attributable to noncontrolling interests	568	821	6,558	4,082
Net earnings (loss) attributable to IAC shareholders	65,611	326,812	151,321	344,701
Comprehensive income (loss) attributable to IAC shareholders	51,418	289,950	94,533	310,979
Total Eliminations
Condensed Financial Statements, Captions [Line Items]
Revenue	(3,060)	(3,002)	(9,104)	(9,332)
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	(260)	(688)	(650)	(2,335)
Selling and marketing expense	(2,801)	(2,273)	(8,420)	(6,410)
General and administrative expense	1	10	(34)	36
Product development expense	0	(51)	0	(623)
Depreciation	0	0	0	0
Amortization of intangibles	0	0	0	0
Total operating costs and expenses	(3,060)	(3,002)	(9,104)	(9,332)
Operating income	0	0	0	0
Equity in earnings of unconsolidated affiliates	(116,159)	(107,162)	(257,855)	(178,725)
Interest expense	0	0	0	0
Other (expense) income, net	0	0	0	0
Earnings from continuing operations before income taxes	(116,159)	(107,162)	(257,855)	(178,725)
Income tax benefit (provision)	0	0	0	0
Earnings from continuing operations	(116,159)	(107,162)	(257,855)	(178,725)
Earnings (loss) from discontinued operations, net of tax	1	(5)	(2)	35
Net earnings	(116,158)	(107,167)	(257,857)	(178,690)
Net loss attributable to noncontrolling interests	0	0	0	0
Net earnings (loss) attributable to IAC shareholders	(116,158)	(107,167)	(257,857)	(178,690)
Comprehensive income (loss) attributable to IAC shareholders	(107,092)	(67,084)	(196,618)	(139,410)
IAC Consolidated
Condensed Financial Statements, Captions [Line Items]
Revenue	838,561	782,231	2,382,205	2,278,793
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	205,261	224,695	580,090	644,659
Selling and marketing expense	337,226	278,321	1,014,289	849,410
General and administrative expense	134,122	106,987	378,265	311,973
Product development expense	46,859	40,691	138,546	118,352
Depreciation	15,625	14,133	46,693	44,208
Amortization of intangibles	12,338	16,451	39,304	41,836
Total operating costs and expenses	751,431	681,278	2,197,187	2,010,438
Operating income	87,130	100,953	185,018	268,355
Equity in earnings of unconsolidated affiliates	398	(612)	(78)	(9,397)
Interest expense	(15,992)	(14,009)	(45,270)	(42,119)
Other (expense) income, net	34,000	4,113	39,826	(58,810)
Earnings from continuing operations before income taxes	105,536	90,445	179,496	158,029
Income tax benefit (provision)	(40,510)	59,816	(34,722)	8,542
Earnings from continuing operations	65,026	150,261	144,774	166,571
Earnings (loss) from discontinued operations, net of tax	17	175,730	(11)	174,048
Net earnings	65,043	325,991	144,763	340,619
Net loss attributable to noncontrolling interests	568	821	6,558	4,082
Net earnings (loss) attributable to IAC shareholders	65,611	326,812	151,321	344,701
Comprehensive income (loss) attributable to IAC shareholders	51,418	289,950	94,533	310,979
IAC
Condensed Financial Statements, Captions [Line Items]
Revenue	0	0	0	0
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	307	387	846	742
Selling and marketing expense	1,250	723	3,315	1,534
General and administrative expense	37,186	28,046	95,192	77,101
Product development expense	2,408	1,935	6,915	5,111
Depreciation	613	402	1,440	1,043
Amortization of intangibles	0	0	0	0
Total operating costs and expenses	41,764	31,493	107,708	85,531
Operating income	(41,764)	(31,493)	(107,708)	(85,531)
Equity in earnings of unconsolidated affiliates	96,076	89,209	220,971	148,604
Interest expense	(12,995)	(12,948)	(38,977)	(38,918)
Other (expense) income, net	24,678	(8,311)	7,571	11,077
Earnings from continuing operations before income taxes	65,995	36,457	81,857	35,232
Income tax benefit (provision)	(401)	114,625	69,475	135,421
Earnings from continuing operations	65,594	151,082	151,332	170,653
Earnings (loss) from discontinued operations, net of tax	17	175,730	(11)	174,048
Net earnings	65,611	326,812	151,321	344,701
Net loss attributable to noncontrolling interests	0	0	0	0
Net earnings (loss) attributable to IAC shareholders	65,611	326,812	151,321	344,701
Comprehensive income (loss) attributable to IAC shareholders	51,418	289,950	94,533	310,979
Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Revenue	606,269	570,101	1,787,137	1,672,589
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	117,292	128,968	354,416	384,431
Selling and marketing expense	276,036	220,780	829,308	677,273
General and administrative expense	70,225	56,955	202,314	151,089
Product development expense	31,945	28,131	94,075	81,532
Depreciation	10,799	9,434	33,489	28,219
Amortization of intangibles	6,246	10,784	18,742	29,444
Total operating costs and expenses	512,543	455,052	1,532,344	1,351,988
Operating income	93,726	115,049	254,793	320,601
Equity in earnings of unconsolidated affiliates	19,940	17,246	36,312	20,593
Interest expense	(2,963)	(1,050)	(6,220)	(3,144)
Other (expense) income, net	2,911	8,771	32,767	(9,935)
Earnings from continuing operations before income taxes	113,614	140,016	317,652	328,115
Income tax benefit (provision)	(35,131)	(46,133)	(107,397)	(115,862)
Earnings from continuing operations	78,483	93,883	210,255	212,253
Earnings (loss) from discontinued operations, net of tax	0	0	0	0
Net earnings	78,483	93,883	210,255	212,253
Net loss attributable to noncontrolling interests	0	0	0	0
Net earnings (loss) attributable to IAC shareholders	78,483	93,883	210,255	212,253
Comprehensive income (loss) attributable to IAC shareholders	80,157	90,988	207,445	209,078
Non-Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Revenue	235,352	215,132	604,172	615,536
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	87,922	96,028	225,478	261,821
Selling and marketing expense	62,741	59,091	190,086	177,013
General and administrative expense	26,710	21,976	80,793	83,747
Product development expense	12,506	10,676	37,556	32,332
Depreciation	4,213	4,297	11,764	14,946
Amortization of intangibles	6,092	5,667	20,562	12,392
Total operating costs and expenses	200,184	197,735	566,239	582,251
Operating income	35,168	17,397	37,933	33,285
Equity in earnings of unconsolidated affiliates	541	95	494	131
Interest expense	(34)	(11)	(73)	(57)
Other (expense) income, net	6,411	3,653	(512)	(59,952)
Earnings from continuing operations before income taxes	42,086	21,134	37,842	(26,593)
Income tax benefit (provision)	(4,978)	(8,676)	3,200	(11,017)
Earnings from continuing operations	37,108	12,458	41,042	(37,610)
Earnings (loss) from discontinued operations, net of tax	(1)	5	2	(35)
Net earnings	37,107	12,463	41,044	(37,645)
Net loss attributable to noncontrolling interests	568	821	6,558	4,082
Net earnings (loss) attributable to IAC shareholders	37,675	13,284	47,602	(33,563)
Comprehensive income (loss) attributable to IAC shareholders	$ 26,935	$ (23,904)	$ (10,827)	$ (69,668)

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MARKETABLE SECURITIES (Details 3) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Jul. 14, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Proceeds from maturities and sales of current and non-current available-for-sale marketable securities and related gross realized gains and losses
Proceeds from maturities and sales of available-for-sale marketable securities		$ 178,315	$ 1,114	$ 192,928	$ 4,576
Gross realized gains		17	1,063	22	3,362
Impairment of available-for-sale marketable securities		804	$ 0	$ 1,304	$ 64,281
PlentyOfFish
Proceeds from maturities and sales of current and non-current available-for-sale marketable securities and related gross realized gains and losses
Purchase price	$ 575,000
Corporate debt securities
Proceeds from maturities and sales of current and non-current available-for-sale marketable securities and related gross realized gains and losses
Impairment of available-for-sale marketable securities		$ 300

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EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Computation of basic and diluted earnings per share

The following tables set forth the computation of basic and diluted earnings per share attributable to IAC shareholders.

	Three Months Ended September 30,
	2015				2014
	Basic		Diluted		Basic		Diluted
	(In thousands, except per share data)
Numerator:
Earnings from continuing operations	$	65,026	$	65,026	$	150,261	$	150,261
Net loss attributable to noncontrolling interests	568		568		821		821
Earnings from continuing operations attributable to IAC shareholders	65,594		65,594		151,082		151,082
Earnings from discontinued operations attributable to IAC shareholders	17		17		175,730		175,730
Net earnings attributable to IAC shareholders	$	65,611	$	65,611	$	326,812	$	326,812
Denominator:
Weighted average basic shares outstanding	82,910		82,910		83,591		83,591
Dilutive securities including stock options and RSUs(a)(b)	—		5,990		—		5,199
Denominator for earnings per share—weighted average shares(a)(b)	82,910		88,900		83,591		88,790
Earnings per share attributable to IAC shareholders:
Earnings per share from continuing operations	$	0.79	$	0.74	$	1.81	$	1.70
Discontinued operations	—		—		2.10		1.98
Earnings per share	$	0.79	$	0.74	$	3.91	$	3.68

	Nine Months Ended September 30,
	2015						2014
	Basic			Diluted			Basic		Diluted
	(In thousands, except per share data)
Numerator:
Earnings from continuing operations	$	144,774		$	144,774		$	166,571	$	166,571
Net loss attributable to noncontrolling interests	6,558			6,558			4,082		4,082
Earnings from continuing operations attributable to IAC shareholders	151,332			151,332			170,653		170,653
(Loss) earnings from discontinued operations attributable to IAC shareholders	(11		)	(11		)	174,048		174,048
Net earnings attributable to IAC shareholders	$	151,321		$	151,321		$	344,701	$	344,701
Denominator:
Weighted average basic shares outstanding	82,924			82,924			83,088		83,088
Dilutive securities including stock options and RSUs(a)(b)	—			5,323			—		5,167
Denominator for earnings per share—weighted average shares(a)(b)	82,924			88,247			83,088		88,255
Earnings per share attributable to IAC shareholders:
Earnings per share from continuing operations	$	1.82		$	1.71		$	2.05	$	1.93
Discontinued operations	—			—			2.10		1.98
Earnings per share	$	1.82		$	1.71		$	4.15	$	3.91

_________________________________________

^(a)If the effect is dilutive, weighted average common shares outstanding include the incremental shares that would be issued upon the assumed exercise of stock options and vesting of restricted stock units ("RSUs"). For the three and nine months ended September 30, 2015, 1.0 million and 1.3 million potentially dilutive securities, respectively, are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. For both the three and nine months ended September 30, 2014, 0.3 million shares related to potentially dilutive securities are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.

^(b)Performance-based stock units ("PSUs") are included in the denominator for earnings per share if (i) the applicable performance condition(s) has been met and (ii) the inclusion of the PSUs is dilutive for the respective reporting periods. For both the three and nine months ended September 30, 2015, 0.2 million PSUs that were probable of vesting were excluded from the calculation of diluted earnings per share because the performance conditions had not been met. For both the three and nine months ended September 30, 2014, less than 0.1 million PSUs related to potentially dilutive securities are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.

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SEGMENT INFORMATION (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Revenue and long-lived assets by geography
Revenue	$ 838,561	$ 782,231	$ 2,382,205	$ 2,278,793
Long-lived assets (excluding goodwill and intangible assets)	299,078		299,078		$ 302,459
Reportable Geographical Components | United States
Revenue and long-lived assets by geography
Revenue	619,297	544,486	1,755,534	1,560,751
Long-lived assets (excluding goodwill and intangible assets)	278,970		278,970		281,879
Reportable Geographical Components | All Other Countries
Revenue and long-lived assets by geography
Revenue	219,264	$ 237,745	626,671	$ 718,042
Long-lived assets (excluding goodwill and intangible assets)	$ 20,108		$ 20,108		$ 20,580

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LONG-TERM DEBT (Details)		9 Months Ended
	Oct. 07, 2015 USD ($)	Sep. 30, 2015 USD ($)	Oct. 16, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 21, 2012 USD ($)
Debt Instrument [Line Items]
Long-term debt		$ 1,000,000,000		$ 1,080,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity					$ 300,000,000
Line of credit, amount outstanding		$ 0		0
Annual fee to maintain the revolving facility		0.35%
Maximum leverage ratio		3.25
Senior Notes | 4.875% Senior Notes due November 30, 2018
Debt Instrument [Line Items]
Long-term debt		$ 500,000,000		$ 500,000,000
Stated rate		4.875%		4.875%
Maximum leverage ratio		3.0
Senior Notes | 4.75% Senior Notes Due December 2022
Debt Instrument [Line Items]
Long-term debt		$ 500,000,000		$ 500,000,000
Stated rate		4.75%		4.75%
Maximum leverage ratio		3.0
Senior Notes | 4.75% Senior Notes Due December 2022 | Subsequent Event
Debt Instrument [Line Items]
Cash tender offer			$ 443,500,000
Bonds | 5% New York City Industrial Development Agency Bonds due September 2035
Debt Instrument [Line Items]
Long-term debt				$ 80,000,000
Stated rate				5.00%
Match Group, Inc. | Revolving Credit Facility | Subsequent Event
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity	$ 500,000,000
Annual fee to maintain the revolving facility	0.35%
Maximum leverage ratio	5.00
Minimum interest coverage ratio	2.50
Match Group, Inc. | Senior Notes | 6.75% Senior Notes Due 2022 | Subsequent Event
Debt Instrument [Line Items]
Stated rate			6.75%
Cash tender offer			$ 443,500,000
Match Group, Inc. | Senior Notes | 6.75% Senior Notes Due 2022 | Maximum | Subsequent Event
Debt Instrument [Line Items]
Match exchange offer			$ 500,000,000

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GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION (Details3) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Condensed Cash Flow Statements, Captions [Line Items]
Net cash (used in) provided by operating activities attributable to continuing operations	$ 184,107	$ 294,661
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	(43,286)	(244,196)
Capital expenditures	(44,558)	(39,033)
Proceeds from maturities and sales of marketable debt securities	192,928	998
Purchases of marketable debt securities	(93,134)	(110,886)
Purchases of long-term investments	(25,073)	(17,703)
Other, net	4,456	11,924
Net cash used in investing activities attributable to continuing operations	(8,667)	(398,896)
Cash flows from financing activities attributable to continuing operations:
Purchase of treasury stock	(200,000)	0
Dividends	(84,947)	(68,505)
Principal payment on long-term debt	(80,000)	0
Issuance of common stock, net of withholding taxes	(40,197)	(4,823)
Excess tax benefits from stock-based awards	49,147	41,320
Purchase of noncontrolling interests	(29,899)	(30,328)
Funds returned from escrow for Meetic tender offer	0	12,354
Acquisition-related contingent consideration payments	(5,712)	(7,659)
Other, net	512	(1,397)
Net cash used in financing activities attributable to continuing operations	(391,096)	(59,038)
Total cash used in continuing operations	(215,656)	(163,273)
Total cash used in discontinued operations	(190)	(171)
Effect of exchange rate changes on cash and cash equivalents	(8,111)	(5,288)
Net decrease in cash and cash equivalents	(223,957)	(168,732)
Cash and cash equivalents at beginning of period	990,405	1,100,444
Cash and cash equivalents at end of period	766,448	931,712
IAC Consolidated
Condensed Cash Flow Statements, Captions [Line Items]
Net cash (used in) provided by operating activities attributable to continuing operations	184,107	294,661
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	(43,286)	(244,196)
Capital expenditures	(44,558)	(39,033)
Proceeds from maturities and sales of marketable debt securities	192,928	998
Purchases of marketable debt securities	(93,134)	(110,886)
Purchases of long-term investments	(25,073)	(17,703)
Other, net	4,456	11,924
Net cash used in investing activities attributable to continuing operations	(8,667)	(398,896)
Cash flows from financing activities attributable to continuing operations:
Purchase of treasury stock	(200,000)
Dividends	(84,947)	(68,505)
Principal payment on long-term debt	(80,000)
Issuance of common stock, net of withholding taxes	(40,197)	(4,823)
Excess tax benefits from stock-based awards	49,147	41,320
Purchase of noncontrolling interests	(29,899)	(30,328)
Funds returned from escrow for Meetic tender offer		12,354
Acquisition-related contingent consideration payments	(5,712)	(7,659)
Intercompany	0	0
Other, net	512	(1,397)
Net cash used in financing activities attributable to continuing operations	(391,096)	(59,038)
Total cash used in continuing operations	(215,656)	(163,273)
Total cash used in discontinued operations	(190)	(171)
Effect of exchange rate changes on cash and cash equivalents	(8,111)	(5,288)
Net decrease in cash and cash equivalents	(223,957)	(168,732)
Cash and cash equivalents at beginning of period	990,405	1,100,444
Cash and cash equivalents at end of period	766,448	931,712
IAC
Condensed Cash Flow Statements, Captions [Line Items]
Net cash (used in) provided by operating activities attributable to continuing operations	(145,714)	(50,458)
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	0	0
Capital expenditures	(1,051)	(2,375)
Proceeds from maturities and sales of marketable debt securities	192,928	998
Purchases of marketable debt securities	(93,134)	(110,886)
Purchases of long-term investments	0	(3,000)
Other, net	4,890	0
Net cash used in investing activities attributable to continuing operations	103,633	(115,263)
Cash flows from financing activities attributable to continuing operations:
Purchase of treasury stock	(200,000)
Dividends	(84,947)	(68,505)
Principal payment on long-term debt	0
Issuance of common stock, net of withholding taxes	(40,197)	(4,823)
Excess tax benefits from stock-based awards	49,016	31,041
Purchase of noncontrolling interests	0	0
Acquisition-related contingent consideration payments	0	0
Intercompany	(87,832)	106,215
Other, net	166	(382)
Net cash used in financing activities attributable to continuing operations	(363,794)	63,546
Total cash used in continuing operations	(405,875)	(102,175)
Total cash used in discontinued operations	(192)	(136)
Effect of exchange rate changes on cash and cash equivalents	0	0
Net decrease in cash and cash equivalents	(406,067)	(102,311)
Cash and cash equivalents at beginning of period	766,076	782,022
Cash and cash equivalents at end of period	360,009	679,711
Guarantor Subsidiaries
Condensed Cash Flow Statements, Captions [Line Items]
Net cash (used in) provided by operating activities attributable to continuing operations	310,471	350,889
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	(3,675)	(191,223)
Capital expenditures	(30,647)	(25,866)
Proceeds from maturities and sales of marketable debt securities	0	0
Purchases of marketable debt securities	0	0
Purchases of long-term investments	0	(7,043)
Other, net	(1,097)	10
Net cash used in investing activities attributable to continuing operations	(35,419)	(224,122)
Cash flows from financing activities attributable to continuing operations:
Principal payment on long-term debt	(80,000)
Purchase of noncontrolling interests	0	(30,000)
Acquisition-related contingent consideration payments	(202)	(286)
Intercompany	(195,884)	(90,996)
Other, net		(1,343)
Net cash used in financing activities attributable to continuing operations	(276,086)	(122,625)
Total cash used in continuing operations	(1,034)	4,142
Total cash used in discontinued operations	0	0
Effect of exchange rate changes on cash and cash equivalents	13	131
Net decrease in cash and cash equivalents	(1,021)	4,273
Cash and cash equivalents at beginning of period	1,021	0
Cash and cash equivalents at end of period	0	4,273
Non-Guarantor Subsidiaries
Condensed Cash Flow Statements, Captions [Line Items]
Net cash (used in) provided by operating activities attributable to continuing operations	19,350	(5,770)
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	(39,611)	(52,973)
Capital expenditures	(12,860)	(10,792)
Proceeds from maturities and sales of marketable debt securities	0	0
Purchases of marketable debt securities	0	0
Purchases of long-term investments	(25,073)	(7,660)
Other, net	663	11,914
Net cash used in investing activities attributable to continuing operations	(76,881)	(59,511)
Cash flows from financing activities attributable to continuing operations:
Principal payment on long-term debt	0
Excess tax benefits from stock-based awards	131	10,279
Purchase of noncontrolling interests	(29,899)	(328)
Funds returned from escrow for Meetic tender offer		12,354
Acquisition-related contingent consideration payments	(5,510)	(7,373)
Intercompany	283,716	(15,219)
Other, net	346	328
Net cash used in financing activities attributable to continuing operations	248,784	41
Total cash used in continuing operations	191,253	(65,240)
Total cash used in discontinued operations	2	(35)
Effect of exchange rate changes on cash and cash equivalents	(8,124)	(5,419)
Net decrease in cash and cash equivalents	183,131	(70,694)
Cash and cash equivalents at beginning of period	223,308	318,422
Cash and cash equivalents at end of period	$ 406,439	$ 247,728

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THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

IAC is a leading media and Internet company. The Company is organized into four segments: The Match Group, which consists of dating, education and fitness businesses with brands such as Match, OkCupid, Tinder, The Princeton Review and DailyBurn; Search & Applications, which includes brands such as About.com, Ask.com, Dictionary.com and Investopedia; Media, which consists of businesses such as Vimeo, Electus, The Daily Beast and CollegeHumor; and eCommerce, which includes HomeAdvisor and ShoeBuy. IAC's brands and products are among the most recognized in the world reaching users in over 200 countries.

All references to "IAC," the "Company," "we," "our" or "us" in this report are to IAC/InterActiveCorp.

Match Group, Inc. Initial Public Offering and Acquisition of PlentyOfFish

On November 9, 2015, Match Group, Inc. filed a registration statement on Form S-1 with the Securities and Exchange Commission ("SEC") relating to the proposed initial public offering ("IPO") of less than 20% of its common stock. The IPO is expected to be completed during the fourth quarter of 2015.

On October 28, 2015, Match Group, Inc. completed its previously announced purchase of Plentyoffish Media Inc., or PlentyOfFish, for $575 million in cash.

Basis of Presentation

The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP").

Basis of Consolidation and Accounting for Investments

The consolidated financial statements include the accounts of the Company, all entities that are wholly-owned by the Company and all entities in which the Company has a controlling financial interest. Intercompany transactions and accounts have been eliminated.

Investments in the common stock or in-substance common stock of entities in which the Company has the ability to exercise significant influence over the operating and financial matters of the investee, but does not have a controlling financial interest, are accounted for using the equity method and are included in "Long-term investments" in the accompanying consolidated balance sheet.

The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the rules and regulations of the SEC. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. Interim results are not necessarily indicative of the results that may be expected for the full year. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014.

Accounting Estimates

The preparation of consolidated financial statements in accordance with GAAP requires management to make certain estimates, judgments and assumptions that 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, the Company evaluates its estimates and judgments including those related to: the fair values of marketable securities and other investments; the recoverability of goodwill and indefinite-lived intangible assets; the useful lives and recoverability of definite-lived intangible assets and property and equipment; the carrying value of accounts receivable, including the determination of the allowance for doubtful accounts and revenue reserves; the fair value of acquisition-related contingent consideration; the liabilities for uncertain tax positions; the valuation allowance for deferred income tax assets; and the fair value of and forfeiture rates for stock-based awards, among others. The Company bases its estimates and judgments on historical experience, its forecasts and budgets and other factors that the Company considers relevant.

Certain Risks and Concentrations

A substantial portion of the Company's revenue is derived from online advertising, the market for which is highly competitive and rapidly changing. Significant changes in this industry or changes in advertising spending behavior or in customer buying behavior could adversely affect our operating results. Most of the Company's online advertising revenue is attributable to a services agreement with Google Inc. ("Google"). On October 26, 2015, the Company and Google entered into a services agreement that is effective as of April 1, 2016, following the expiration of the current services agreement, and expires on March 31, 2020. The Company may choose to terminate the agreement effective March 31, 2019. These services agreements require that we comply with certain guidelines promulgated by Google. Subject to certain limitations, Google may unilaterally update its policies and guidelines, which could 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 business, financial condition and results of operations. For the three and nine months ended September 30, 2015, revenue earned from Google is $332.0 million and $979.8 million, respectively. For the three and nine months ended September 30, 2014, revenue earned from Google is $351.4 million and $1.1 billion, respectively. This revenue is earned by the businesses comprising the Search & Applications segment. Accounts receivable related to revenue earned from Google totaled $112.2 million and $118.7 million at September 30, 2015 and December 31, 2014, respectively.

Recent Accounting Pronouncement

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, which clarifies the principles for recognizing revenue and develops a common standard for all industries. In July 2015, the FASB decided to defer the effective date for annual reporting periods beginning after December 15, 2017. Early adoption is permitted beginning on the original effective date of December 15, 2016. Upon adoption, ASU No. 2014-09 may either be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is currently evaluating the new guidance and has not yet determined whether the adoption of the new standard will have a material impact on its consolidated financial statements or the method and timing of adoption.

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation.

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CONSOLIDATED FINANCIAL STATEMENT DETAILS CONSOLIDATED FINANCIAL STATEMENT DETAILS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Gain on real estate transaction	$ 33,586	$ 0	$ 33,586	$ 0
Impairment of long-term investments	(804)	0	(1,304)	(64,281)
Foreign currency exchange gains (losses)	308	2,210	4,838	(612)
Other	910	1,903	2,706	6,083
Total	$ 34,000	$ 4,113	$ 39,826	$ (58,810)

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THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands				3 Months Ended		9 Months Ended
	Nov. 02, 2015	Oct. 28, 2015 USD ($)	Jul. 14, 2015 USD ($)	Sep. 30, 2015 USD ($) country	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) segment country	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)
Revenue from major customers
Number of operating segments | segment						4
Number of countries where brands and products reach users (more than) | country				200		200
Revenue				$ 838,561	$ 782,231	$ 2,382,205	$ 2,278,793
Accounts receivable, net				246,978		246,978		$ 236,086
Google Inc.
Revenue from major customers
Revenue				332,000	$ 351,400	979,800	$ 1,100,000
Accounts receivable, net				$ 112,200		$ 112,200		$ 118,700
PlentyOfFish
Revenue from major customers
Purchase price			$ 575,000
Match Group, Inc. | Subsequent Event
Revenue from major customers
Percentage of subsidiary stock to be issued in IPO (less than)	20.00%
Match Group, Inc. | Subsequent Event | PlentyOfFish
Revenue from major customers
Purchase price		$ 575,000

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GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION (Tables)

9 Months Ended

Sep. 30, 2015

Guarantor and Nonguarantor Financial Statements [Abstract]

Schedule of condensed balance sheet

Balance sheet at September 30, 2015:

	IAC		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Total Eliminations			IAC Consolidated
	(In thousands)
Cash and cash equivalents	$	360,009	$	—	$	406,439	$	—		$	766,448
Marketable securities	53,477		—		460		—			53,937
Accounts receivable, net	9		147,175		99,794		—			246,978
Other current assets	7,261		93,121		82,236		(3,735		)	178,883
Intercompany receivables	—		1,557,881		779,941		(2,337,822		)	—
Property and equipment, net	4,574		228,159		66,345		—			299,078
Goodwill	—		1,247,038		522,103		—			1,769,141
Intangible assets, net	—		307,079		152,842		—			459,921
Investment in subsidiaries	5,033,588		957,866		—		(5,991,454		)	—
Other non-current assets	92,132		28,897		139,963		(8,060		)	252,932
Total assets	$	5,551,050	$	4,567,216	$	2,250,123	$	(8,341,071	)	$	4,027,318
Accounts payable, trade	$	2,865	$	34,991	$	30,592	$	—		$	68,448
Other current liabilities	54,163		326,379		204,453		14			585,009
Long-term debt	1,000,000		—		—		—			1,000,000
Income taxes payable	858		4,531		18,252		—			23,641
Intercompany liabilities	2,337,822		—		—		(2,337,822		)	—
Other long-term liabilities	310,151		105,074		76,386		(11,809		)	479,802
Redeemable noncontrolling interests	—		—		25,227		—			25,227
IAC shareholders' equity	1,845,191		4,096,241		1,895,213		(5,991,454		)	1,845,191
Total liabilities and shareholders' equity	$	5,551,050	$	4,567,216	$	2,250,123	$	(8,341,071	)	$	4,027,318

Balance sheet at December 31, 2014:

	IAC		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Total Eliminations			IAC Consolidated
	(In thousands)
Cash and cash equivalents	$	766,076	$	1,021	$	223,308	$	—		$	990,405
Marketable securities	159,197		—		1,451		—			160,648
Accounts receivable, net	13		155,262		80,811		—			236,086
Other current assets	23,923		91,105		57,487		(5,773		)	166,742
Intercompany receivables	—		1,688,403		970,810		(2,659,213		)	—
Property and equipment, net	4,950		232,819		64,690		—			302,459
Goodwill	—		1,249,807		505,119		—			1,754,926
Intangible assets, net	—		325,771		166,165		—			491,936
Investment in subsidiaries	5,035,304		930,443		—		(5,965,747		)	—
Other non-current assets	44,610		20,682		109,372		(2,988		)	171,676
Total assets	$	6,034,073	$	4,695,313	$	2,179,213	$	(8,633,721	)	$	4,274,878
Accounts payable, trade	$	3,059	$	55,320	$	22,784	$	—		$	81,163
Other current liabilities	73,491		328,920		191,197		(817		)	592,791
Long-term debt	1,000,000		80,000		—		—			1,080,000
Income taxes payable	2,240		4,771		25,624		—			32,635
Intercompany liabilities	2,659,213		—		—		(2,659,213		)	—
Other long-term liabilities	304,117		104,219		54,328		(7,944		)	454,720
Redeemable noncontrolling interests	—		—		40,427		—			40,427
IAC shareholders' equity	1,991,953		4,122,083		1,843,664		(5,965,747		)	1,991,953
Noncontrolling interests	—		—		1,189		—			1,189
Total liabilities and shareholders' equity	$	6,034,073	$	4,695,313	$	2,179,213	$	(8,633,721	)	$	4,274,878

Schedule of condensed income statement

Statement of operations for the three months ended September 30, 2015:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	606,269		$	235,352		$	(3,060	)	$	838,561
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	307			117,292			87,922			(260		)	205,261
Selling and marketing expense	1,250			276,036			62,741			(2,801		)	337,226
General and administrative expense	37,186			70,225			26,710			1			134,122
Product development expense	2,408			31,945			12,506			—			46,859
Depreciation	613			10,799			4,213			—			15,625
Amortization of intangibles	—			6,246			6,092			—			12,338
Total operating costs and expenses	41,764			512,543			200,184			(3,060		)	751,431
Operating (loss) income	(41,764		)	93,726			35,168			—			87,130
Equity in earnings of unconsolidated affiliates	96,076			19,940			541			(116,159		)	398
Interest expense	(12,995		)	(2,963		)	(34		)	—			(15,992		)
Other income, net	24,678			2,911			6,411			—			34,000
Earnings from continuing operations before income taxes	65,995			113,614			42,086			(116,159		)	105,536
Income tax provision	(401		)	(35,131		)	(4,978		)	—			(40,510		)
Earnings from continuing operations	65,594			78,483			37,108			(116,159		)	65,026
Earnings (loss) from discontinued operations, net of tax	17			—			(1		)	1			17
Net earnings	65,611			78,483			37,107			(116,158		)	65,043
Net loss attributable to noncontrolling interests	—			—			568			—			568
Net earnings attributable to IAC shareholders	$	65,611		$	78,483		$	37,675		$	(116,158	)	$	65,611
Comprehensive income attributable to IAC shareholders	$	51,418		$	80,157		$	26,935		$	(107,092	)	$	51,418

Statement of operations for the three months ended September 30, 2014:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	570,101		$	215,132		$	(3,002	)	$	782,231
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	387			128,968			96,028			(688		)	224,695
Selling and marketing expense	723			220,780			59,091			(2,273		)	278,321
General and administrative expense	28,046			56,955			21,976			10			106,987
Product development expense	1,935			28,131			10,676			(51		)	40,691
Depreciation	402			9,434			4,297			—			14,133
Amortization of intangibles	—			10,784			5,667			—			16,451
Total operating costs and expenses	31,493			455,052			197,735			(3,002		)	681,278
Operating (loss) income	(31,493		)	115,049			17,397			—			100,953
Equity in earnings (losses) of unconsolidated affiliates	89,209			17,246			95			(107,162		)	(612		)
Interest expense	(12,948		)	(1,050		)	(11		)	—			(14,009		)
Other (expense) income, net	(8,311		)	8,771			3,653			—			4,113
Earnings from continuing operations before income taxes	36,457			140,016			21,134			(107,162		)	90,445
Income tax benefit (provision)	114,625			(46,133		)	(8,676		)	—			59,816
Earnings from continuing operations	151,082			93,883			12,458			(107,162		)	150,261
Earnings from discontinued operations, net of tax	175,730			—			5			(5		)	175,730
Net earnings	326,812			93,883			12,463			(107,167		)	325,991
Net loss attributable to noncontrolling interests	—			—			821			—			821
Net earnings attributable to IAC shareholders	$	326,812		$	93,883		$	13,284		$	(107,167	)	$	326,812
Comprehensive income (loss) attributable to IAC shareholders	$	289,950		$	90,988		$	(23,904	)	$	(67,084	)	$	289,950

Statement of operations for the nine months ended September 30, 2015:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	1,787,137		$	604,172		$	(9,104	)	$	2,382,205
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	846			354,416			225,478			(650		)	580,090
Selling and marketing expense	3,315			829,308			190,086			(8,420		)	1,014,289
General and administrative expense	95,192			202,314			80,793			(34		)	378,265
Product development expense	6,915			94,075			37,556			—			138,546
Depreciation	1,440			33,489			11,764			—			46,693
Amortization of intangibles	—			18,742			20,562			—			39,304
Total operating costs and expenses	107,708			1,532,344			566,239			(9,104		)	2,197,187
Operating (loss) income	(107,708		)	254,793			37,933			—			185,018
Equity in earnings (losses) of unconsolidated affiliates	220,971			36,312			494			(257,855		)	(78		)
Interest expense	(38,977		)	(6,220		)	(73		)	—			(45,270		)
Other income (expense), net	7,571			32,767			(512		)	—			39,826
Earnings from continuing operations before income taxes	81,857			317,652			37,842			(257,855		)	179,496
Income tax benefit (provision)	69,475			(107,397		)	3,200			—			(34,722		)
Earnings from continuing operations	151,332			210,255			41,042			(257,855		)	144,774
(Loss) earnings from discontinued operations, net of tax	(11		)	—			2			(2		)	(11		)
Net earnings	151,321			210,255			41,044			(257,857		)	144,763
Net loss attributable to noncontrolling interests	—			—			6,558			—			6,558
Net earnings attributable to IAC shareholders	$	151,321		$	210,255		$	47,602		$	(257,857	)	$	151,321
Comprehensive income (loss) attributable to IAC shareholders	$	94,533		$	207,445		$	(10,827	)	$	(196,618	)	$	94,533

Statement of operations for the nine months ended September 30, 2014:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	1,672,589		$	615,536		$	(9,332	)	$	2,278,793
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	742			384,431			261,821			(2,335		)	644,659
Selling and marketing expense	1,534			677,273			177,013			(6,410		)	849,410
General and administrative expense	77,101			151,089			83,747			36			311,973
Product development expense	5,111			81,532			32,332			(623		)	118,352
Depreciation	1,043			28,219			14,946			—			44,208
Amortization of intangibles	—			29,444			12,392			—			41,836
Total operating costs and expenses	85,531			1,351,988			582,251			(9,332		)	2,010,438
Operating (loss) income	(85,531		)	320,601			33,285			—			268,355
Equity in earnings (losses) of unconsolidated affiliates	148,604			20,593			131			(178,725		)	(9,397		)
Interest expense	(38,918		)	(3,144		)	(57		)	—			(42,119		)
Other income (expense), net	11,077			(9,935		)	(59,952		)	—			(58,810		)
Earnings (loss) from continuing operations before income taxes	35,232			328,115			(26,593		)	(178,725		)	158,029
Income tax benefit (provision)	135,421			(115,862		)	(11,017		)	—			8,542
Earnings (loss) from continuing operations	170,653			212,253			(37,610		)	(178,725		)	166,571
Earnings (loss) from discontinued operations, net of tax	174,048			—			(35		)	35			174,048
Net earnings (loss)	344,701			212,253			(37,645		)	(178,690		)	340,619
Net loss attributable to noncontrolling interests	—			—			4,082			—			4,082
Net earnings (loss) attributable to IAC shareholders	$	344,701		$	212,253		$	(33,563	)	$	(178,690	)	$	344,701
Comprehensive income (loss) attributable to IAC shareholders	$	310,979		$	209,078		$	(69,668	)	$	(139,410	)	$	310,979

Schedule of condensed cash flow statement

Statement of cash flows for the nine months ended September 30, 2015:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities attributable to continuing operations	$	(145,714	)	$	310,471		$	19,350		$	184,107
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	—			(3,675		)	(39,611		)	(43,286		)
Capital expenditures	(1,051		)	(30,647		)	(12,860		)	(44,558		)
Proceeds from maturities and sales of marketable debt securities	192,928			—			—			192,928
Purchases of marketable debt securities	(93,134		)	—			—			(93,134		)
Purchases of long-term investments	—			—			(25,073		)	(25,073		)
Other, net	4,890			(1,097		)	663			4,456
Net cash provided by (used in) investing activities attributable to continuing operations	103,633			(35,419		)	(76,881		)	(8,667		)
Cash flows from financing activities attributable to continuing operations:
Purchase of treasury stock	(200,000		)	—			—			(200,000		)
Dividends	(84,947		)	—			—			(84,947		)
Principal payment on long-term debt	—			(80,000		)	—			(80,000		)
Issuance of common stock, net of withholding taxes	(40,197		)	—			—			(40,197		)
Excess tax benefits from stock-based awards	49,016			—			131			49,147
Purchase of noncontrolling interests	—			—			(29,899		)	(29,899		)
Acquisition-related contingent consideration payments	—			(202		)	(5,510		)	(5,712		)
Intercompany	(87,832		)	(195,884		)	283,716			—
Other, net	166			—			346			512
Net cash (used in) provided by financing activities attributable to continuing operations	(363,794		)	(276,086		)	248,784			(391,096		)
Total cash (used in) provided by continuing operations	(405,875		)	(1,034		)	191,253			(215,656		)
Total cash (used in) provided by discontinued operations	(192		)	—			2			(190		)
Effect of exchange rate changes on cash and cash equivalents	—			13			(8,124		)	(8,111		)
Net (decrease) increase in cash and cash equivalents	(406,067		)	(1,021		)	183,131			(223,957		)
Cash and cash equivalents at beginning of period	766,076			1,021			223,308			990,405
Cash and cash equivalents at end of period	$	360,009		$	—		$	406,439		$	766,448

Statement of cash flows for the nine months ended September 30, 2014:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities attributable to continuing operations	$	(50,458	)	$	350,889		$	(5,770	)	$	294,661
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	—			(191,223		)	(52,973		)	(244,196		)
Capital expenditures	(2,375		)	(25,866		)	(10,792		)	(39,033		)
Proceeds from maturities and sales of marketable debt securities	998			—			—			998
Purchases of marketable debt securities	(110,886		)	—			—			(110,886		)
Purchases of long-term investments	(3,000		)	(7,043		)	(7,660		)	(17,703		)
Other, net	—			10			11,914			11,924
Net cash used in investing activities attributable to continuing operations	(115,263		)	(224,122		)	(59,511		)	(398,896		)
Cash flows from financing activities attributable to continuing operations:
Dividends	(68,505		)	—			—			(68,505		)
Issuance of common stock, net of withholding taxes	(4,823		)	—			—			(4,823		)
Excess tax benefits from stock-based awards	31,041			—			10,279			41,320
Purchase of noncontrolling interests	—			(30,000		)	(328		)	(30,328		)
Funds returned from escrow for Meetic tender offer	—			—			12,354			12,354
Acquisition-related contingent consideration payments	—			(286		)	(7,373		)	(7,659		)
Intercompany	106,215			(90,996		)	(15,219		)	—
Other, net	(382		)	(1,343		)	328			(1,397		)
Net cash provided by (used in) financing activities attributable to continuing operations	63,546			(122,625		)	41			(59,038		)
Total cash (used in) provided by continuing operations	(102,175		)	4,142			(65,240		)	(163,273		)
Total cash used in discontinued operations	(136		)	—			(35		)	(171		)
Effect of exchange rate changes on cash and cash equivalents	—			131			(5,419		)	(5,288		)
Net (decrease) increase in cash and cash equivalents	(102,311		)	4,273			(70,694		)	(168,732		)
Cash and cash equivalents at beginning of period	782,022			—			318,422			1,100,444
Cash and cash equivalents at end of period	$	679,711		$	4,273		$	247,728		$	931,712

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CONTINGENCIES (Details)	9 Months Ended
	Sep. 30, 2015 lawsuit
Loss Contingency [Abstract]
Minimum number of lawsuits that could have material impact on the liquidity, results of operations, or financial condition	1

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INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Income tax benefit (provision)	$ (40,510)	$ 59,816	$ (34,722)	$ 8,542
Effective tax rate (as a percent)	38.00%		19.00%
Federal statutory rate (as a percent)	35.00%		35.00%
Earnings from continuing operations before income taxes	$ 105,536	90,445	$ 179,496	158,029
Unrecognized tax benefits related to federal income taxes statute of limitations		$ 88,200		$ 88,200
Interest expense (benefit) on income tax benefit (provision)	(100)		200
Accrued interest on unrecognized tax benefits	2,200		2,200		$ 2,800
Accrued penalties on unrecognized tax benefits	2,100		2,100		2,900
Total unrecognized tax benefits including interest	24,800		24,800		$ 33,200
Unrecognized tax benefit, if recognized would reduce income tax expense for continuing operations	22,800		22,800
Change in unrecognized tax benefit	$ 7,700		$ 7,700

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MARKETABLE SECURITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Corporate debt securities
Amortized Cost	$ 53,600	$ 159,418
Gross Unrealized Gains	7	34
Gross Unrealized Losses	(129)	(255)
Fair Value	53,478	159,197
Equity security
Amortized Cost	98	98
Gross Unrealized Gains	361	1,353
Gross Unrealized Losses	0	0
Fair Value	459	1,451
Total marketable securities
Amortized Cost	53,698	159,516
Gross Unrealized Gains	368	1,387
Gross Unrealized Losses	(129)	(255)
Fair Value	$ 53,937	$ 160,648

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CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities attributable to continuing operations:
Net earnings	$ 144,763	$ 340,619
Earnings (loss) from discontinued operations, net of tax	(11)	174,048
Earnings from continuing operations	144,774	166,571
Adjustments to reconcile earnings from continuing operations to net cash provided by operating activities attributable to continuing operations:
Stock-based compensation expense	71,869	43,497
Depreciation	46,693	44,208
Amortization of intangibles	39,304	41,836
Impairment of long-term investments	1,304	64,281
Excess tax benefits from stock-based awards	(49,147)	(41,320)
Deferred income taxes	(7,851)	88,739
Equity in losses of unconsolidated affiliates	78	9,397
Acquisition-related contingent consideration fair value adjustments	(17,906)	(13,781)
Gain on real estate transaction	(33,586)	0
Other changes in assets and liabilities, net	13,852	10,080
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable	(25,822)	(12,779)
Other assets	(13,746)	(8,735)
Accounts payable and other current liabilities	(17,453)	(24,183)
Income taxes payable	(13,748)	(114,584)
Deferred revenue	45,674	41,667
Other changes in assets and liabilities, net	(182)	(233)
Net cash provided by operating activities attributable to continuing operations	184,107	294,661
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	(43,286)	(244,196)
Capital expenditures	(44,558)	(39,033)
Proceeds from maturities and sales of marketable debt securities	192,928	998
Purchases of marketable debt securities	(93,134)	(110,886)
Purchases of long-term investments	(25,073)	(17,703)
Other, net	4,456	11,924
Net cash used in investing activities attributable to continuing operations	(8,667)	(398,896)
Cash flows from financing activities attributable to continuing operations:
Purchase of treasury stock	(200,000)	0
Dividends	(84,947)	(68,505)
Principal payment on long-term debt	(80,000)	0
Issuance of common stock, net of withholding taxes	(40,197)	(4,823)
Excess tax benefits from stock-based awards	49,147	41,320
Purchase of noncontrolling interests	(29,899)	(30,328)
Funds returned from escrow for Meetic tender offer	0	12,354
Acquisition-related contingent consideration payments	(5,712)	(7,659)
Other, net	512	(1,397)
Net cash used in financing activities attributable to continuing operations	(391,096)	(59,038)
Total cash used in continuing operations	(215,656)	(163,273)
Total cash used in discontinued operations	(190)	(171)
Effect of exchange rate changes on cash and cash equivalents	(8,111)	(5,288)
Net decrease in cash and cash equivalents	(223,957)	(168,732)
Cash and cash equivalents at beginning of period	990,405	1,100,444
Cash and cash equivalents at end of period	$ 766,448	$ 931,712

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MARKETABLE SECURITIES (Details 2) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Contractual maturities of debt securities classified as available-for-sale
Due in one year or less, amortized cost	$ 4,374
Due after one year through five years, amortized cost	49,226
Amortized Cost	53,600	$ 159,418
Due in one year or less, fair value	4,370
Due after one year through five years, fair value	49,108
Total, Estimated Fair Value	$ 53,478	$ 159,197

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EARNINGS PER SHARE (Details 2) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
RSUs
Anti-dilutive weighted average common shares
Potentially dilutive securities excluded from calculation of diluted earnings per share (in shares)	1.0	0.3	1.3	0.3
PSUs
Anti-dilutive weighted average common shares
Potentially dilutive securities excluded from calculation of diluted earnings per share (in shares)	0.2	0.1	0.2	0.1

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CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
ASSETS
Cash and cash equivalents	$ 766,448	$ 990,405
Marketable securities	53,937	160,648
Accounts receivable, net of allowance of $16,202 and $12,437, respectively	246,978	236,086
Other current assets	178,883	166,742
Total current assets	1,246,246	1,553,881
Property and equipment, net of accumulated depreciation and amortization of $305,226 and $279,534, respectively	299,078	302,459
Goodwill	1,769,141	1,754,926
Intangible assets, net of accumulated amortization of $122,653 and $98,937 respectively	459,921	491,936
Long-term investments	138,825	114,983
Other non-current assets	114,107	56,693
TOTAL ASSETS	4,027,318	4,274,878
LIABILITIES:
Accounts payable, trade	68,448	81,163
Deferred revenue	237,947	194,988
Accrued expenses and other current liabilities	347,062	397,803
Total current liabilities	653,457	673,954
Long-term debt	1,000,000	1,080,000
Income taxes payable	23,641	32,635
Deferred income taxes	417,326	409,529
Other long-term liabilities	62,476	45,191
Redeemable noncontrolling interests	$ 25,227	$ 40,427
Commitments and contingencies
SHAREHOLDERS' EQUITY:
Additional paid-in capital	$ 11,459,267	$ 11,415,617
Retained earnings	391,492	325,118
Accumulated other comprehensive loss	(144,488)	(87,700)
Treasury stock 187,137,267 and 184,182,001 shares, respectively	(9,861,350)	(9,661,350)
Total IAC shareholders' equity	1,845,191	1,991,953
Noncontrolling interests	0	1,189
Total shareholders' equity	1,845,191	1,993,142
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	4,027,318	4,274,878
Common Stock
SHAREHOLDERS' EQUITY:
Common stock	254	252
Class B Convertible Common Stock
SHAREHOLDERS' EQUITY:
Common stock	$ 16	$ 16

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GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
ASSETS
Cash and cash equivalents	$ 766,448	$ 990,405	$ 931,712	$ 1,100,444
Marketable securities	53,937	160,648
Accounts receivable, net	246,978	236,086
Other current assets	178,883	166,742
Property and equipment, net of accumulated depreciation and amortization of $305,226 and $279,534, respectively	299,078	302,459
Goodwill	1,769,141	1,754,926
Intangible assets, net	459,921	491,936
Other non-current assets	114,107	56,693
TOTAL ASSETS	4,027,318	4,274,878
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable, trade	68,448	81,163
Long-term debt	1,000,000	1,080,000
Income taxes payable	23,641	32,635
Other long-term liabilities	62,476	45,191
Redeemable noncontrolling interests	25,227	40,427
IAC shareholders' equity	1,845,191	1,991,953
Noncontrolling interests	0	1,189
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	4,027,318	4,274,878
Intersegment eliminations
ASSETS
Cash and cash equivalents	0	0
Marketable securities	0	0
Accounts receivable, net	0	0
Other current assets	(3,735)	(5,773)
Intercompany receivables	(2,337,822)	(2,659,213)
Property and equipment, net of accumulated depreciation and amortization of $305,226 and $279,534, respectively	0	0
Goodwill	0	0
Intangible assets, net	0	0
Investment in subsidiaries	(5,991,454)	(5,965,747)
Other non-current assets	(8,060)	(2,988)
TOTAL ASSETS	(8,341,071)	(8,633,721)
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable, trade	0	0
Other current liabilities	14	(817)
Long-term debt	0	0
Income taxes payable	0	0
Intercompany liabilities	(2,337,822)	(2,659,213)
Other long-term liabilities	(11,809)	(7,944)
Redeemable noncontrolling interests	0	0
IAC shareholders' equity	(5,991,454)	(5,965,747)
Noncontrolling interests		0
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	(8,341,071)	(8,633,721)
IAC Consolidated
ASSETS
Cash and cash equivalents	766,448	990,405	931,712	1,100,444
Marketable securities	53,937	160,648
Accounts receivable, net	246,978	236,086
Other current assets	178,883	166,742
Intercompany receivables	0	0
Property and equipment, net of accumulated depreciation and amortization of $305,226 and $279,534, respectively	299,078	302,459
Goodwill	1,769,141	1,754,926
Intangible assets, net	459,921	491,936
Investment in subsidiaries	0	0
Other non-current assets	252,932	171,676
TOTAL ASSETS	4,027,318	4,274,878
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable, trade	68,448	81,163
Other current liabilities	585,009	592,791
Long-term debt	1,000,000	1,080,000
Income taxes payable	23,641	32,635
Intercompany liabilities	0	0
Other long-term liabilities	479,802	454,720
Redeemable noncontrolling interests	25,227	40,427
IAC shareholders' equity	1,845,191	1,991,953
Noncontrolling interests		1,189
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	4,027,318	4,274,878
IAC
ASSETS
Cash and cash equivalents	360,009	766,076	679,711	782,022
Marketable securities	53,477	159,197
Accounts receivable, net	9	13
Other current assets	7,261	23,923
Intercompany receivables	0	0
Property and equipment, net of accumulated depreciation and amortization of $305,226 and $279,534, respectively	4,574	4,950
Goodwill	0	0
Intangible assets, net	0	0
Investment in subsidiaries	5,033,588	5,035,304
Other non-current assets	92,132	44,610
TOTAL ASSETS	5,551,050	6,034,073
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable, trade	2,865	3,059
Other current liabilities	54,163	73,491
Long-term debt	1,000,000	1,000,000
Income taxes payable	858	2,240
Intercompany liabilities	2,337,822	2,659,213
Other long-term liabilities	310,151	304,117
Redeemable noncontrolling interests	0	0
IAC shareholders' equity	1,845,191	1,991,953
Noncontrolling interests		0
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	5,551,050	6,034,073
Guarantor Subsidiaries
ASSETS
Cash and cash equivalents	0	1,021	4,273	0
Marketable securities	0	0
Accounts receivable, net	147,175	155,262
Other current assets	93,121	91,105
Intercompany receivables	1,557,881	1,688,403
Property and equipment, net of accumulated depreciation and amortization of $305,226 and $279,534, respectively	228,159	232,819
Goodwill	1,247,038	1,249,807
Intangible assets, net	307,079	325,771
Investment in subsidiaries	957,866	930,443
Other non-current assets	28,897	20,682
TOTAL ASSETS	4,567,216	4,695,313
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable, trade	34,991	55,320
Other current liabilities	326,379	328,920
Long-term debt	0	80,000
Income taxes payable	4,531	4,771
Intercompany liabilities	0	0
Other long-term liabilities	105,074	104,219
Redeemable noncontrolling interests	0	0
IAC shareholders' equity	4,096,241	4,122,083
Noncontrolling interests		0
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	4,567,216	4,695,313
Non-Guarantor Subsidiaries
ASSETS
Cash and cash equivalents	406,439	223,308	$ 247,728	$ 318,422
Marketable securities	460	1,451
Accounts receivable, net	99,794	80,811
Other current assets	82,236	57,487
Intercompany receivables	779,941	970,810
Property and equipment, net of accumulated depreciation and amortization of $305,226 and $279,534, respectively	66,345	64,690
Goodwill	522,103	505,119
Intangible assets, net	152,842	166,165
Investment in subsidiaries	0	0
Other non-current assets	139,963	109,372
TOTAL ASSETS	2,250,123	2,179,213
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable, trade	30,592	22,784
Other current liabilities	204,453	191,197
Long-term debt	0	0
Income taxes payable	18,252	25,624
Intercompany liabilities	0	0
Other long-term liabilities	76,386	54,328
Redeemable noncontrolling interests	25,227	40,427
IAC shareholders' equity	1,895,213	1,843,664
Noncontrolling interests		1,189
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 2,250,123	$ 2,179,213

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Tax benefit of change in unrealized gains and losses of available-for-sale securities	$ 277	$ 245	$ 95	$ 1,683

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FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Details 1) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($) arrangement	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) arrangement	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)
Auction rate securities
Cost basis	$ 53,600		$ 53,600		$ 159,418
Gross unrealized losses	$ 129		$ 129		255
Contingent Consideration Arrangements
Number of contingent consideration arrangements related to business acquisitions | arrangement	9		9
Number of contingent consideration arrangements with payment limit | arrangement	8		8
Contingent consideration, maximum amount at balance sheet date	$ 242,800		$ 242,800
Contingent consideration, fair value at balance sheet date with a maximum limit	$ 31,000		$ 31,000
Number of contingent consideration arrangements without payment limit | arrangement	1		1
Contingent consideration, fair value at balance sheet date without a limit	$ 500		$ 500
Contingent consideration, at fair value, current	700		700
Contingent consideration, at fair value, noncurrent	30,800		30,800
Assets measured at fair value on a nonrecurring basis
Cost method investments	113,700		113,700		90,900
Cost method investments, other than temporary impairment		$ 64,200
Equity method investment, other than temporary impairment		4,200
Long-term marketable equity security
Cost basis	98		98		98
Gross unrealized gain	361		361		1,353
Gross unrealized loss	0		0		0
Auction rate security
Changes in assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Balance at the beginning of the period, assets	6,630	9,250	6,070	$ 8,920
Total net gains (losses) included in other comprehensive income (loss), Asset	(1,620)	(670)	(1,060)	(340)
Balance at the end of the period, assets	5,010	8,580	5,010	8,580
Auction rate securities
Cost basis	10,000		10,000		10,000
Gross unrealized losses	5,000		5,000		3,900
Contingent Consideration Arrangement
Changes in liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Balance at the beginning of the period	(31,858)	(41,397)	(30,140)	(45,828)
Total net gains (losses) included in earnings, fair value adjustments	960	14,281	17,906	13,781
Total net gains (losses) included in earnings, foreign currency exchange gains			626	0
Total net gains (losses) included in other comprehensive income (loss), Liability	(579)	1,918	1,538	2,054
Fair value at date of acquisition			(27,112)	(2,835)
Settlements	7	29	5,712	7,659
Balance at the end of the period	(31,470)	$ (25,169)	$ (31,470)	$ (25,169)
Contingent Consideration Arrangement | Minimum
Contingent Consideration Arrangements
Contingent consideration, discount rates			12.00%
Contingent Consideration Arrangement | Maximum
Contingent Consideration Arrangements
Contingent consideration, discount rates			25.00%
Equity security
Long-term marketable equity security
Cost basis	8,700		$ 8,700		8,700
Gross unrealized gain	$ 900		$ 900
Gross unrealized loss					$ 1,200

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FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Schedule of assets measured at fair value on a recurring basis

The following tables present the Company's financial instruments that are measured at fair value on a recurring basis:

	September 30, 2015
	Quoted Market Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Total Fair Value Measurements
	(In thousands)
Assets:
Cash equivalents:
Money market funds	$	375,094	$	—	$	—		$	375,094
Time deposits	—		45,005		—			45,005
Commercial paper	—		8,999		—			8,999
Marketable securities:
Corporate debt securities	—		53,478		—			53,478
Equity security	459		—		—			459
Long-term investments:
Auction rate security	—		—		5,010			5,010
Marketable equity security	9,594		—		—			9,594
Total	$	385,147	$	107,482	$	5,010		$	497,639
Liabilities:
Contingent consideration arrangements	$	—	$	—	$	(31,470	)	$	(31,470	)

	December 31, 2014
	Quoted Market Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Total Fair Value Measurements
	(In thousands)
Assets:
Cash equivalents:
Money market funds	$	174,720	$	—	$	—		$	174,720
Time deposits	—		42,914		—			42,914
Commercial paper	—		388,801		—			388,801
Marketable securities:
Corporate debt securities	—		159,197		—			159,197
Equity security	1,451		—		—			1,451
Long-term investments:
Auction rate security	—		—		6,070			6,070
Marketable equity security	7,410		—		—			7,410
Total	$	183,581	$	590,912	$	6,070		$	780,563
Liabilities:
Contingent consideration arrangements	$	—	$	—	$	(30,140	)	$	(30,140	)

Schedule of changes in assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

The following tables present the changes in the Company's financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

	Three Months Ended September 30,
	2015						2014
	Auction Rate Security			Contingent Consideration Arrangements			Auction Rate Security			Contingent Consideration Arrangements
	(In thousands)
Balance at July 1	$	6,630		$	(31,858	)	$	9,250		$	(41,397	)
Total net gains (losses):
Included in earnings:
Fair value adjustments	—			960			—			14,281
Included in other comprehensive (loss) income	(1,620		)	(579		)	(670		)	1,918
Settlements	—			7			—			29
Balance at September 30	$	5,010		$	(31,470	)	$	8,580		$	(25,169	)

	Nine Months Ended September 30,
	2015						2014
	Auction Rate Security			Contingent Consideration Arrangements			Auction Rate Security			Contingent Consideration Arrangements
	(In thousands)
Balance at January 1	$	6,070		$	(30,140	)	$	8,920		$	(45,828	)
Total net gains (losses):
Included in earnings:
Fair value adjustments	—			17,906			—			13,781
Foreign currency exchange gains	—			626			—			—
Included in other comprehensive (loss) income	(1,060		)	1,538			(340		)	2,054
Fair value at date of acquisition	—			(27,112		)	—			(2,835		)
Settlements	—			5,712			—			7,659
Balance at September 30	$	5,010		$	(31,470	)	$	8,580		$	(25,169	)

Schedule of changes in liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

The following tables present the changes in the Company's financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

	Three Months Ended September 30,
	2015						2014
	Auction Rate Security			Contingent Consideration Arrangements			Auction Rate Security			Contingent Consideration Arrangements
	(In thousands)
Balance at July 1	$	6,630		$	(31,858	)	$	9,250		$	(41,397	)
Total net gains (losses):
Included in earnings:
Fair value adjustments	—			960			—			14,281
Included in other comprehensive (loss) income	(1,620		)	(579		)	(670		)	1,918
Settlements	—			7			—			29
Balance at September 30	$	5,010		$	(31,470	)	$	8,580		$	(25,169	)

	Nine Months Ended September 30,
	2015						2014
	Auction Rate Security			Contingent Consideration Arrangements			Auction Rate Security			Contingent Consideration Arrangements
	(In thousands)
Balance at January 1	$	6,070		$	(30,140	)	$	8,920		$	(45,828	)
Total net gains (losses):
Included in earnings:
Fair value adjustments	—			17,906			—			13,781
Foreign currency exchange gains	—			626			—			—
Included in other comprehensive (loss) income	(1,060		)	1,538			(340		)	2,054
Fair value at date of acquisition	—			(27,112		)	—			(2,835		)
Settlements	—			5,712			—			7,659
Balance at September 30	$	5,010		$	(31,470	)	$	8,580		$	(25,169	)

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:

	September 30, 2015						December 31, 2014
	Carrying Value			Fair Value			Carrying Value			Fair Value
	(In thousands)
Long-term debt	$	(1,000,000	)	$	(990,050	)	$	(1,080,000	)	$	(1,099,813	)

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FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, net of current maturities	$ (1,000,000)	$ (1,080,000)
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, net of current maturities	$ (990,050)	$ (1,099,813)

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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Schedule of accumulated other comprehensive loss

The following tables present the components of accumulated other comprehensive (loss) income.

	Three Months Ended September 30, 2015
	Foreign Currency Translation Adjustment			Unrealized Gains On Available-For-Sale Securities				Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of July 1	$	(133,895	)	$	3,600			$	(130,295	)
Other comprehensive loss, net of tax benefit of $0.1 million related to unrealized losses on available-for-sale securities	(8,420		)	(3,501		)		(11,921		)
Amounts reclassified to earnings	(2,191		)	(81		)	(a)	(2,272		)
Net current period other comprehensive loss	(10,611		)	(3,582		)		(14,193		)
Balance as of September 30	$	(144,506	)	$	18			$	(144,488	)

_________________________________________

^(a)Amount is net of a tax provision of $0.1 million.

	Three Months Ended September 30, 2014
	Foreign Currency Translation Adjustment			Unrealized Gains On Available-For-Sale Securities			Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of July 1	$	(15,282	)	$	5,376		$	(9,906	)
Other comprehensive (loss) income before reclassifications, net of tax provision of $0.2 million related to unrealized losses on available-for-sale securities	(36,428		)	231			(36,197		)
Amounts reclassified to earnings related to unrealized gains on available-for-sale securities, net of tax provision of $0.4 million	—			(665		)	(665		)
Net current period other comprehensive loss	(36,428		)	(434		)	(36,862		)
Balance as of September 30	$	(51,710	)	$	4,942		$	(46,768	)

	Nine Months Ended September 30, 2015
	Foreign Currency Translation Adjustment			Unrealized (Losses) Gains On Available-For-Sale Securities				Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of January 1	$	(86,848	)	$	(852	)		$	(87,700	)
Other comprehensive (loss) income, net of tax benefit of $0.3 million related to unrealized losses on available-for-sale securities	(55,467		)	788				(54,679		)
Amounts reclassified to earnings	(2,191		)	82			(b)	(2,109		)
Net current period other comprehensive (loss) income	(57,658		)	870				(56,788		)
Balance as of September 30	$	(144,506	)	$	18			$	(144,488	)

_________________________________________

^(b)Amount is net of a tax benefit of $0.1 million.

	Nine Months Ended September 30, 2014
	Foreign Currency Translation Adjustment			Unrealized Gains On Available-For-Sale Securities			Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of January 1	$	(20,352	)	$	7,306		$	(13,046	)
Other comprehensive loss before reclassifications, net of tax benefit of $0.5 million related to unrealized losses on available-for-sale securities	(31,358		)	(439		)	(31,797		)
Amounts reclassified to earnings related to unrealized gains on available-for-sale securities, net of tax provision of $1.2 million	—			(1,925		)	(1,925		)
Net current period other comprehensive loss	(31,358		)	(2,364		)	(33,722		)
Balance as of September 30	$	(51,710	)	$	4,942		$	(46,768	)

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CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited) - 9 months ended Sep. 30, 2015 - USD ($) shares in Thousands, $ in Thousands	Total	IAC	Common Stock Common Stock $.001 Par Value	Common Stock Class B Convertible Common Stock $.001 Par Value	Additional Paid-in Capital	(Accumulated Deficit) Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock	Noncontrolling Interests
Beginning balance at Dec. 31, 2014	$ 1,993,142	$ 1,991,953	$ 252	$ 16	$ 11,415,617	$ 325,118	$ (87,700)	$ (9,661,350)	$ 1,189
Beginning balance, common stock (in shares) at Dec. 31, 2014			252,170	16,157
Increase (Decrease) in Shareholders' Equity
Net (loss) earnings for the nine months ended September 30, 2015	151,321	151,321				151,321
Other comprehensive loss, net of tax	(56,788)	(56,788)					(56,788)
Stock-based compensation expense	62,611	62,611			62,611
Issuance of common stock pursuant to stock-based awards, net of withholding taxes	(39,510)	(39,510)	$ 2		(39,512)
Issuance of common stock pursuant to stock-based awards, net of withholding taxes (in shares)			1,787
Income tax benefit related to stock-based awards	37,298	37,298			37,298
Dividends	(84,947)	(84,947)				(84,947)
Purchase of treasury stock	(200,000)	(200,000)						(200,000)
Adjustment of redeemable noncontrolling interests to fair value	(15,903)	(15,903)			(15,903)
Transfer from noncontrolling interests to redeemable noncontrolling interests	(1,189)								(1,189)
Other	(844)	(844)			(844)
Ending balance at Sep. 30, 2015	1,845,191	$ 1,845,191	$ 254	$ 16	$ 11,459,267	$ 391,492	$ (144,488)	$ (9,861,350)	$ 0
Ending balance, common stock (in shares) at Sep. 30, 2015			253,957	16,157
Beginning balance at Dec. 31, 2014	40,427
Increase (Decrease) in Redeemable Noncontrolling Interests
Net (loss) earnings	(6,558)
Other comprehensive loss, net of tax	(1,184)
Stock-based compensation expense	5,066
Purchase of redeemable noncontrolling interests	(29,899)
Adjustment of redeemable noncontrolling interests to fair value	15,903
Transfer from noncontrolling interests to redeemable noncontrolling interests	1,189
Other	283
Ending balance at Sep. 30, 2015	$ 25,227

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CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Accounts receivable, allowance (in dollars)	$ 16,202	$ 12,437
Accumulated depreciation and amortization, property and equipment (in dollars)	305,226	279,534
Accumulated amortization (in dollars)	$ 122,653	$ 98,937
Treasury stock, shares	187,137,267	184,182,001
Common Stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized shares	1,600,000,000	1,600,000,000
Common stock, issued shares	253,957,313	252,170,058
Common stock, outstanding shares	77,188,046	78,356,057
Class B Convertible Common Stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized shares	400,000,000	400,000,000
Common stock, issued shares	16,157,499	16,157,499
Common stock, outstanding shares	5,789,499	5,789,499

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CONSOLIDATED FINANCIAL STATEMENT DETAILS

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidated Financial Statement Details

CONSOLIDATED FINANCIAL STATEMENT DETAILS

Other income (expense), net consists of:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2015			2014		2015			2014
	(In thousands)
Gain on real estate transaction	$	33,586		$	—	$	33,586		$	—
Impairment of long-term investments	(804		)	—		(1,304		)	(64,281		)
Foreign currency exchange gains (losses)	308			2,210		4,838			(612		)
Other	910			1,903		2,706			6,083
Total	$	34,000		$	4,113	$	39,826		$	(58,810	)

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 23, 2015
Entity Registrant Name	IAC/INTERACTIVECORP
Entity Central Index Key	0000891103
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Amendment Flag	false
Common Stock
Entity Common Stock, Shares Outstanding		77,196,951
Class B Convertible Common Stock
Entity Common Stock, Shares Outstanding		5,789,499

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CONTINGENCIES

9 Months Ended

Sep. 30, 2015

Loss Contingency [Abstract]

CONTINGENCIES

CONTINGENCIES

In the ordinary course of business, the Company is a party to various lawsuits. The Company 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 the Company, these matters are subject to inherent uncertainties and management's view of these matters may change in the future. The Company 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 the Company. See Note 2 for additional information related to income tax contingencies.

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CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue	$ 838,561	$ 782,231	$ 2,382,205	$ 2,278,793
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	205,261	224,695	580,090	644,659
Selling and marketing expense	337,226	278,321	1,014,289	849,410
General and administrative expense	134,122	106,987	378,265	311,973
Product development expense	46,859	40,691	138,546	118,352
Depreciation	15,625	14,133	46,693	44,208
Amortization of intangibles	12,338	16,451	39,304	41,836
Total operating costs and expenses	751,431	681,278	2,197,187	2,010,438
Operating income	87,130	100,953	185,018	268,355
Equity in earnings (losses) of unconsolidated affiliates	398	(612)	(78)	(9,397)
Interest expense	(15,992)	(14,009)	(45,270)	(42,119)
Other income (expense), net	34,000	4,113	39,826	(58,810)
Earnings from continuing operations before income taxes	105,536	90,445	179,496	158,029
Income tax (provision) benefit	(40,510)	59,816	(34,722)	8,542
Earnings from continuing operations	65,026	150,261	144,774	166,571
Earnings (loss) from discontinued operations, net of tax	17	175,730	(11)	174,048
Net earnings	65,043	325,991	144,763	340,619
Net loss attributable to noncontrolling interests	568	821	6,558	4,082
Net earnings (loss) attributable to IAC shareholders	$ 65,611	$ 326,812	$ 151,321	$ 344,701
Per share information attributable to IAC shareholders:
Basic earnings (loss) per share from continuing operations (in dollars per share)	$ 0.79	$ 1.81	$ 1.82	$ 2.05
Diluted earnings (loss) per share from continuing operations (in dollars per share)	0.74	1.70	1.71	1.93
Basic earnings (loss) per share (in dollars per share)	0.79	3.91	1.82	4.15
Diluted earnings (loss) per share (in dollars per share)	0.74	3.68	1.71	3.91
Dividends declared per share (in dollars per share)	$ 0.34	$ 0.34	$ 1.02	$ 0.82
Stock-based compensation expense by function:
Stock-based compensation expense	$ 27,009	$ 17,332	$ 71,869	$ 43,497
Cost of revenue
Stock-based compensation expense by function:
Stock-based compensation expense	307	453	846	904
Selling and marketing expense
Stock-based compensation expense by function:
Stock-based compensation expense	2,442	775	7,284	1,628
General and administrative expense
Stock-based compensation expense by function:
Stock-based compensation expense	21,683	14,094	56,320	35,753
Product development expense
Stock-based compensation expense by function:
Stock-based compensation expense	$ 2,577	$ 2,010	$ 7,419	$ 5,212

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FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements and Financial Instruments

FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS

The Company 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 prices for identical assets and liabilities in active markets.

• Level 2: Other inputs, which are observable directly or indirectly, such as quoted prices for similar assets or liabilities in active markets, quoted 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 the Company'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 the Company 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 below for a discussion of fair value measurements made using Level 3 inputs.

The following tables present the Company's financial instruments that are measured at fair value on a recurring basis:

	September 30, 2015
	Quoted Market Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Total Fair Value Measurements
	(In thousands)
Assets:
Cash equivalents:
Money market funds	$	375,094	$	—	$	—		$	375,094
Time deposits	—		45,005		—			45,005
Commercial paper	—		8,999		—			8,999
Marketable securities:
Corporate debt securities	—		53,478		—			53,478
Equity security	459		—		—			459
Long-term investments:
Auction rate security	—		—		5,010			5,010
Marketable equity security	9,594		—		—			9,594
Total	$	385,147	$	107,482	$	5,010		$	497,639
Liabilities:
Contingent consideration arrangements	$	—	$	—	$	(31,470	)	$	(31,470	)

	December 31, 2014
	Quoted Market Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Total Fair Value Measurements
	(In thousands)
Assets:
Cash equivalents:
Money market funds	$	174,720	$	—	$	—		$	174,720
Time deposits	—		42,914		—			42,914
Commercial paper	—		388,801		—			388,801
Marketable securities:
Corporate debt securities	—		159,197		—			159,197
Equity security	1,451		—		—			1,451
Long-term investments:
Auction rate security	—		—		6,070			6,070
Marketable equity security	7,410		—		—			7,410
Total	$	183,581	$	590,912	$	6,070		$	780,563
Liabilities:
Contingent consideration arrangements	$	—	$	—	$	(30,140	)	$	(30,140	)

The following tables present the changes in the Company's financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

	Three Months Ended September 30,
	2015						2014
	Auction Rate Security			Contingent Consideration Arrangements			Auction Rate Security			Contingent Consideration Arrangements
	(In thousands)
Balance at July 1	$	6,630		$	(31,858	)	$	9,250		$	(41,397	)
Total net gains (losses):
Included in earnings:
Fair value adjustments	—			960			—			14,281
Included in other comprehensive (loss) income	(1,620		)	(579		)	(670		)	1,918
Settlements	—			7			—			29
Balance at September 30	$	5,010		$	(31,470	)	$	8,580		$	(25,169	)

	Nine Months Ended September 30,
	2015						2014
	Auction Rate Security			Contingent Consideration Arrangements			Auction Rate Security			Contingent Consideration Arrangements
	(In thousands)
Balance at January 1	$	6,070		$	(30,140	)	$	8,920		$	(45,828	)
Total net gains (losses):
Included in earnings:
Fair value adjustments	—			17,906			—			13,781
Foreign currency exchange gains	—			626			—			—
Included in other comprehensive (loss) income	(1,060		)	1,538			(340		)	2,054
Fair value at date of acquisition	—			(27,112		)	—			(2,835		)
Settlements	—			5,712			—			7,659
Balance at September 30	$	5,010		$	(31,470	)	$	8,580		$	(25,169	)

Auction rate security

The Company's auction rate security is valued by discounting the estimated future cash flow streams of the security over the life of the security. Credit spreads and other risk factors are also considered in establishing fair value. The cost basis of the auction rate security is $10.0 million, with gross unrealized losses of $5.0 million and $3.9 million at September 30, 2015 and December 31, 2014, respectively. The unrealized losses are included in "Accumulated other comprehensive loss" in the accompanying consolidated balance sheet. At September 30, 2015, the auction rate security is rated BBB- and matures in 2035. The Company does not consider the auction rate security to be other-than-temporarily impaired at September 30, 2015, due to its credit rating and because the Company does not intend to sell this security, and it is not more likely than not that the Company will be required to sell this security, before the recovery of its amortized cost basis, which may be maturity.

Contingent Consideration Arrangements

As of September 30, 2015, there are nine contingent consideration arrangements related to business acquisitions. Eight of the contingent consideration arrangements have limits as to the maximum amount that can be paid; the maximum contingent payments related to these arrangements is $242.8 million and the fair value of these arrangements at September 30, 2015 is $31.0 million. The fair value of the one contingent consideration arrangement without a limit on the maximum amount is $0.5 million at September 30, 2015. The contingent consideration arrangements are generally based upon earnings performance and/or operating metrics such as monthly active users. The Company determines the fair value of the contingent consideration arrangements by using a probability-weighted analysis to determine the amount of the gross liability, and, if the arrangement is long-term in nature, applying a discount rate that captures the risks associated with the obligation. The number of scenarios in the probability-weighted analyses can vary; generally, more scenarios are prepared for longer duration and more complex arrangements. The fair values of the contingent consideration arrangements at September 30, 2015 reflect discount rates ranging from 12-25%.

The fair values of the contingent consideration arrangements are sensitive to changes in the forecasts of earnings and/or the relevant operating metrics and changes in discount rates. The Company remeasures the fair value of the contingent consideration arrangements each reporting period, and changes are recognized in “General and administrative expense” in the accompanying consolidated statement of operations. The contingent consideration arrangement liability at September 30, 2015 includes a current portion of $0.7 million and non-current portion of $30.8 million, which are included in “Accrued expenses and other current liabilities” and “Other long-term liabilities,” respectively, in the accompanying consolidated balance sheet.

Assets measured at fair value on a nonrecurring basis

The Company's non-financial assets, such as goodwill, intangible assets and property and equipment, as well as equity and cost method investments, are adjusted to fair value only when an impairment charge is recognized. Such fair value measurements are based predominantly on Level 3 inputs.

Cost method investments

At September 30, 2015 and December 31, 2014, the carrying values of the Company's investments accounted for under the cost method totaled $113.7 million and $90.9 million, respectively, and are included in "Long-term investments" in the accompanying consolidated balance sheet. The Company evaluates each cost method investment for impairment on a quarterly basis and recognizes an impairment loss if a decline in value is determined to be other-than-temporary. If the Company has not identified events or changes in circumstances that may have a significant adverse effect on the fair value of a cost method investment, then the fair value of such cost method investment is not estimated, as it is impracticable to do so.

In the second quarter of 2014, the Company recorded $64.2 million of other-than-temporary impairment charges for certain cost method 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 (expense), net" in the accompanying consolidated statement of operations.

Equity method investments

In the second quarter of 2014, the Company recorded a $4.2 million other-than-temporary impairment charge on an equity method investment following the sale of a majority of the investee's assets. This charge is included in "Equity in earnings (losses) of unconsolidated affiliates" in the accompanying consolidated statement of operations.

Long-term marketable equity security

The cost basis of the Company's long-term marketable equity security at September 30, 2015 and December 31, 2014 is $8.7 million, with a gross unrealized gain of $0.9 million and a gross unrealized loss of $1.2 million at September 30, 2015 and December 31, 2014, respectively. The gross unrealized gain at September 30, 2015 and gross unrealized loss at December 31, 2014 are included in "Accumulated other comprehensive loss" in the accompanying consolidated 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:

	September 30, 2015						December 31, 2014
	Carrying Value			Fair Value			Carrying Value			Fair Value
	(In thousands)
Long-term debt	$	(1,000,000	)	$	(990,050	)	$	(1,080,000	)	$	(1,099,813	)

The fair value of long-term debt is estimated using market prices or indices for similar liabilities and takes into consideration other factors such as credit quality and maturity, which are Level 3 inputs.

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MARKETABLE SECURITIES

9 Months Ended

Sep. 30, 2015

Marketable Securities [Abstract]

MARKETABLE SECURITIES

MARKETABLE SECURITIES

At September 30, 2015, current available-for-sale marketable securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Corporate debt securities	$	53,600	$	7	$	(129	)	$	53,478
Equity security	98		361		—			459
Total marketable securities	$	53,698	$	368	$	(129	)	$	53,937

At December 31, 2014, current available-for-sale marketable securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Corporate debt securities	$	159,418	$	34	$	(255	)	$	159,197
Equity security	98		1,353		—			1,451
Total marketable securities	$	159,516	$	1,387	$	(255	)	$	160,648

The unrealized gains and losses in the tables above are included in "Accumulated other comprehensive loss" in the accompanying consolidated balance sheet. The gross unrealized losses on the marketable debt securities relate primarily to changes in interest rates. The Company does not consider the gross unrealized losses to be other-than-temporary because the Company does not intend to sell the marketable debt securities that generated the gross unrealized losses at September 30, 2015, and it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized costs bases, which may be maturity.

The contractual maturities of debt securities classified as current available-for-sale at September 30, 2015 are as follows:

	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	4,374	$	4,370
Due after one year through five years	49,226		49,108
Total	$	53,600	$	53,478

The following table presents the proceeds from maturities and sales of current and non-current available-for-sale marketable securities and the related gross realized gains:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
	(In thousands)
Proceeds from maturities and sales of available-for-sale marketable securities	$	178,315	$	1,114	$	192,928	$	4,576
Gross realized gains	17		1,063		22		3,362

There were no gross realized losses from the maturities and sales of available-for-sale marketable securities for the three and nine months ended September 30, 2015 and 2014. However, during the second quarter of 2015, the Company recognized $0.3 million in losses that were deemed to be other-than-temporary related to various corporate debt securities that were expected to be sold by the Company, in part, to fund its cash needs related to Match Group, Inc.'s acquisition of PlentyOfFish for $575 million.

Gross realized gains from the maturities and sales of available-for-sale marketable securities and gross unrealized losses that were deemed to be other-than-temporary are included in "Other income (expense), net" in the accompanying consolidated statement of operations.

The specific-identification method is used to determine the cost of securities sold and the amount of unrealized gains and losses reclassified out of accumulated other comprehensive income into earnings.

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LONG-TERM DEBT (Tables)

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Schedule of Long-term Debt

Long-term debt consists of:

	September 30, 2015		December 31, 2014
	(In thousands)
4.875% Senior Notes due November 30, 2018 (the "2013 Senior Notes"); interest payable each May 30 and November 30, which commenced May 30, 2014	$	500,000	$	500,000
4.75% Senior Notes due December 15, 2022 (the "2012 Senior Notes"); interest payable each June 15 and December 15, which commenced June 15, 2013	500,000		500,000
5% New York City Industrial Development Agency Liberty Bonds due September 1, 2035 (the "Liberty Bonds"); interest payable each March 1 and September 1, which commenced March 1, 2006	—		80,000
Total long-term debt	$	1,000,000	$	1,080,000

XML

GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION

9 Months Ended

Sep. 30, 2015

Guarantor and Nonguarantor Financial Statements [Abstract]

GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION

GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION

The 2013 and 2012 Senior Notes are unconditionally guaranteed, jointly and severally, by certain domestic subsidiaries that are 100% owned by the Company. The following tables present condensed consolidating financial information at September 30, 2015 and December 31, 2014 and for the three and nine months ended September 30, 2015 and 2014 for: IAC, on a stand-alone basis; the combined guarantor subsidiaries of IAC; the combined non-guarantor subsidiaries of IAC; and IAC on a consolidated basis.

Balance sheet at September 30, 2015:

	IAC		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Total Eliminations			IAC Consolidated
	(In thousands)
Cash and cash equivalents	$	360,009	$	—	$	406,439	$	—		$	766,448
Marketable securities	53,477		—		460		—			53,937
Accounts receivable, net	9		147,175		99,794		—			246,978
Other current assets	7,261		93,121		82,236		(3,735		)	178,883
Intercompany receivables	—		1,557,881		779,941		(2,337,822		)	—
Property and equipment, net	4,574		228,159		66,345		—			299,078
Goodwill	—		1,247,038		522,103		—			1,769,141
Intangible assets, net	—		307,079		152,842		—			459,921
Investment in subsidiaries	5,033,588		957,866		—		(5,991,454		)	—
Other non-current assets	92,132		28,897		139,963		(8,060		)	252,932
Total assets	$	5,551,050	$	4,567,216	$	2,250,123	$	(8,341,071	)	$	4,027,318
Accounts payable, trade	$	2,865	$	34,991	$	30,592	$	—		$	68,448
Other current liabilities	54,163		326,379		204,453		14			585,009
Long-term debt	1,000,000		—		—		—			1,000,000
Income taxes payable	858		4,531		18,252		—			23,641
Intercompany liabilities	2,337,822		—		—		(2,337,822		)	—
Other long-term liabilities	310,151		105,074		76,386		(11,809		)	479,802
Redeemable noncontrolling interests	—		—		25,227		—			25,227
IAC shareholders' equity	1,845,191		4,096,241		1,895,213		(5,991,454		)	1,845,191
Total liabilities and shareholders' equity	$	5,551,050	$	4,567,216	$	2,250,123	$	(8,341,071	)	$	4,027,318

Balance sheet at December 31, 2014:

	IAC		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Total Eliminations			IAC Consolidated
	(In thousands)
Cash and cash equivalents	$	766,076	$	1,021	$	223,308	$	—		$	990,405
Marketable securities	159,197		—		1,451		—			160,648
Accounts receivable, net	13		155,262		80,811		—			236,086
Other current assets	23,923		91,105		57,487		(5,773		)	166,742
Intercompany receivables	—		1,688,403		970,810		(2,659,213		)	—
Property and equipment, net	4,950		232,819		64,690		—			302,459
Goodwill	—		1,249,807		505,119		—			1,754,926
Intangible assets, net	—		325,771		166,165		—			491,936
Investment in subsidiaries	5,035,304		930,443		—		(5,965,747		)	—
Other non-current assets	44,610		20,682		109,372		(2,988		)	171,676
Total assets	$	6,034,073	$	4,695,313	$	2,179,213	$	(8,633,721	)	$	4,274,878
Accounts payable, trade	$	3,059	$	55,320	$	22,784	$	—		$	81,163
Other current liabilities	73,491		328,920		191,197		(817		)	592,791
Long-term debt	1,000,000		80,000		—		—			1,080,000
Income taxes payable	2,240		4,771		25,624		—			32,635
Intercompany liabilities	2,659,213		—		—		(2,659,213		)	—
Other long-term liabilities	304,117		104,219		54,328		(7,944		)	454,720
Redeemable noncontrolling interests	—		—		40,427		—			40,427
IAC shareholders' equity	1,991,953		4,122,083		1,843,664		(5,965,747		)	1,991,953
Noncontrolling interests	—		—		1,189		—			1,189
Total liabilities and shareholders' equity	$	6,034,073	$	4,695,313	$	2,179,213	$	(8,633,721	)	$	4,274,878

Statement of operations for the three months ended September 30, 2015:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	606,269		$	235,352		$	(3,060	)	$	838,561
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	307			117,292			87,922			(260		)	205,261
Selling and marketing expense	1,250			276,036			62,741			(2,801		)	337,226
General and administrative expense	37,186			70,225			26,710			1			134,122
Product development expense	2,408			31,945			12,506			—			46,859
Depreciation	613			10,799			4,213			—			15,625
Amortization of intangibles	—			6,246			6,092			—			12,338
Total operating costs and expenses	41,764			512,543			200,184			(3,060		)	751,431
Operating (loss) income	(41,764		)	93,726			35,168			—			87,130
Equity in earnings of unconsolidated affiliates	96,076			19,940			541			(116,159		)	398
Interest expense	(12,995		)	(2,963		)	(34		)	—			(15,992		)
Other income, net	24,678			2,911			6,411			—			34,000
Earnings from continuing operations before income taxes	65,995			113,614			42,086			(116,159		)	105,536
Income tax provision	(401		)	(35,131		)	(4,978		)	—			(40,510		)
Earnings from continuing operations	65,594			78,483			37,108			(116,159		)	65,026
Earnings (loss) from discontinued operations, net of tax	17			—			(1		)	1			17
Net earnings	65,611			78,483			37,107			(116,158		)	65,043
Net loss attributable to noncontrolling interests	—			—			568			—			568
Net earnings attributable to IAC shareholders	$	65,611		$	78,483		$	37,675		$	(116,158	)	$	65,611
Comprehensive income attributable to IAC shareholders	$	51,418		$	80,157		$	26,935		$	(107,092	)	$	51,418

Statement of operations for the three months ended September 30, 2014:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	570,101		$	215,132		$	(3,002	)	$	782,231
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	387			128,968			96,028			(688		)	224,695
Selling and marketing expense	723			220,780			59,091			(2,273		)	278,321
General and administrative expense	28,046			56,955			21,976			10			106,987
Product development expense	1,935			28,131			10,676			(51		)	40,691
Depreciation	402			9,434			4,297			—			14,133
Amortization of intangibles	—			10,784			5,667			—			16,451
Total operating costs and expenses	31,493			455,052			197,735			(3,002		)	681,278
Operating (loss) income	(31,493		)	115,049			17,397			—			100,953
Equity in earnings (losses) of unconsolidated affiliates	89,209			17,246			95			(107,162		)	(612		)
Interest expense	(12,948		)	(1,050		)	(11		)	—			(14,009		)
Other (expense) income, net	(8,311		)	8,771			3,653			—			4,113
Earnings from continuing operations before income taxes	36,457			140,016			21,134			(107,162		)	90,445
Income tax benefit (provision)	114,625			(46,133		)	(8,676		)	—			59,816
Earnings from continuing operations	151,082			93,883			12,458			(107,162		)	150,261
Earnings from discontinued operations, net of tax	175,730			—			5			(5		)	175,730
Net earnings	326,812			93,883			12,463			(107,167		)	325,991
Net loss attributable to noncontrolling interests	—			—			821			—			821
Net earnings attributable to IAC shareholders	$	326,812		$	93,883		$	13,284		$	(107,167	)	$	326,812
Comprehensive income (loss) attributable to IAC shareholders	$	289,950		$	90,988		$	(23,904	)	$	(67,084	)	$	289,950

Statement of operations for the nine months ended September 30, 2015:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	1,787,137		$	604,172		$	(9,104	)	$	2,382,205
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	846			354,416			225,478			(650		)	580,090
Selling and marketing expense	3,315			829,308			190,086			(8,420		)	1,014,289
General and administrative expense	95,192			202,314			80,793			(34		)	378,265
Product development expense	6,915			94,075			37,556			—			138,546
Depreciation	1,440			33,489			11,764			—			46,693
Amortization of intangibles	—			18,742			20,562			—			39,304
Total operating costs and expenses	107,708			1,532,344			566,239			(9,104		)	2,197,187
Operating (loss) income	(107,708		)	254,793			37,933			—			185,018
Equity in earnings (losses) of unconsolidated affiliates	220,971			36,312			494			(257,855		)	(78		)
Interest expense	(38,977		)	(6,220		)	(73		)	—			(45,270		)
Other income (expense), net	7,571			32,767			(512		)	—			39,826
Earnings from continuing operations before income taxes	81,857			317,652			37,842			(257,855		)	179,496
Income tax benefit (provision)	69,475			(107,397		)	3,200			—			(34,722		)
Earnings from continuing operations	151,332			210,255			41,042			(257,855		)	144,774
(Loss) earnings from discontinued operations, net of tax	(11		)	—			2			(2		)	(11		)
Net earnings	151,321			210,255			41,044			(257,857		)	144,763
Net loss attributable to noncontrolling interests	—			—			6,558			—			6,558
Net earnings attributable to IAC shareholders	$	151,321		$	210,255		$	47,602		$	(257,857	)	$	151,321
Comprehensive income (loss) attributable to IAC shareholders	$	94,533		$	207,445		$	(10,827	)	$	(196,618	)	$	94,533

Statement of operations for the nine months ended September 30, 2014:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	1,672,589		$	615,536		$	(9,332	)	$	2,278,793
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	742			384,431			261,821			(2,335		)	644,659
Selling and marketing expense	1,534			677,273			177,013			(6,410		)	849,410
General and administrative expense	77,101			151,089			83,747			36			311,973
Product development expense	5,111			81,532			32,332			(623		)	118,352
Depreciation	1,043			28,219			14,946			—			44,208
Amortization of intangibles	—			29,444			12,392			—			41,836
Total operating costs and expenses	85,531			1,351,988			582,251			(9,332		)	2,010,438
Operating (loss) income	(85,531		)	320,601			33,285			—			268,355
Equity in earnings (losses) of unconsolidated affiliates	148,604			20,593			131			(178,725		)	(9,397		)
Interest expense	(38,918		)	(3,144		)	(57		)	—			(42,119		)
Other income (expense), net	11,077			(9,935		)	(59,952		)	—			(58,810		)
Earnings (loss) from continuing operations before income taxes	35,232			328,115			(26,593		)	(178,725		)	158,029
Income tax benefit (provision)	135,421			(115,862		)	(11,017		)	—			8,542
Earnings (loss) from continuing operations	170,653			212,253			(37,610		)	(178,725		)	166,571
Earnings (loss) from discontinued operations, net of tax	174,048			—			(35		)	35			174,048
Net earnings (loss)	344,701			212,253			(37,645		)	(178,690		)	340,619
Net loss attributable to noncontrolling interests	—			—			4,082			—			4,082
Net earnings (loss) attributable to IAC shareholders	$	344,701		$	212,253		$	(33,563	)	$	(178,690	)	$	344,701
Comprehensive income (loss) attributable to IAC shareholders	$	310,979		$	209,078		$	(69,668	)	$	(139,410	)	$	310,979

Statement of cash flows for the nine months ended September 30, 2015:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities attributable to continuing operations	$	(145,714	)	$	310,471		$	19,350		$	184,107
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	—			(3,675		)	(39,611		)	(43,286		)
Capital expenditures	(1,051		)	(30,647		)	(12,860		)	(44,558		)
Proceeds from maturities and sales of marketable debt securities	192,928			—			—			192,928
Purchases of marketable debt securities	(93,134		)	—			—			(93,134		)
Purchases of long-term investments	—			—			(25,073		)	(25,073		)
Other, net	4,890			(1,097		)	663			4,456
Net cash provided by (used in) investing activities attributable to continuing operations	103,633			(35,419		)	(76,881		)	(8,667		)
Cash flows from financing activities attributable to continuing operations:
Purchase of treasury stock	(200,000		)	—			—			(200,000		)
Dividends	(84,947		)	—			—			(84,947		)
Principal payment on long-term debt	—			(80,000		)	—			(80,000		)
Issuance of common stock, net of withholding taxes	(40,197		)	—			—			(40,197		)
Excess tax benefits from stock-based awards	49,016			—			131			49,147
Purchase of noncontrolling interests	—			—			(29,899		)	(29,899		)
Acquisition-related contingent consideration payments	—			(202		)	(5,510		)	(5,712		)
Intercompany	(87,832		)	(195,884		)	283,716			—
Other, net	166			—			346			512
Net cash (used in) provided by financing activities attributable to continuing operations	(363,794		)	(276,086		)	248,784			(391,096		)
Total cash (used in) provided by continuing operations	(405,875		)	(1,034		)	191,253			(215,656		)
Total cash (used in) provided by discontinued operations	(192		)	—			2			(190		)
Effect of exchange rate changes on cash and cash equivalents	—			13			(8,124		)	(8,111		)
Net (decrease) increase in cash and cash equivalents	(406,067		)	(1,021		)	183,131			(223,957		)
Cash and cash equivalents at beginning of period	766,076			1,021			223,308			990,405
Cash and cash equivalents at end of period	$	360,009		$	—		$	406,439		$	766,448

Statement of cash flows for the nine months ended September 30, 2014:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities attributable to continuing operations	$	(50,458	)	$	350,889		$	(5,770	)	$	294,661
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	—			(191,223		)	(52,973		)	(244,196		)
Capital expenditures	(2,375		)	(25,866		)	(10,792		)	(39,033		)
Proceeds from maturities and sales of marketable debt securities	998			—			—			998
Purchases of marketable debt securities	(110,886		)	—			—			(110,886		)
Purchases of long-term investments	(3,000		)	(7,043		)	(7,660		)	(17,703		)
Other, net	—			10			11,914			11,924
Net cash used in investing activities attributable to continuing operations	(115,263		)	(224,122		)	(59,511		)	(398,896		)
Cash flows from financing activities attributable to continuing operations:
Dividends	(68,505		)	—			—			(68,505		)
Issuance of common stock, net of withholding taxes	(4,823		)	—			—			(4,823		)
Excess tax benefits from stock-based awards	31,041			—			10,279			41,320
Purchase of noncontrolling interests	—			(30,000		)	(328		)	(30,328		)
Funds returned from escrow for Meetic tender offer	—			—			12,354			12,354
Acquisition-related contingent consideration payments	—			(286		)	(7,373		)	(7,659		)
Intercompany	106,215			(90,996		)	(15,219		)	—
Other, net	(382		)	(1,343		)	328			(1,397		)
Net cash provided by (used in) financing activities attributable to continuing operations	63,546			(122,625		)	41			(59,038		)
Total cash (used in) provided by continuing operations	(102,175		)	4,142			(65,240		)	(163,273		)
Total cash used in discontinued operations	(136		)	—			(35		)	(171		)
Effect of exchange rate changes on cash and cash equivalents	—			131			(5,419		)	(5,288		)
Net (decrease) increase in cash and cash equivalents	(102,311		)	4,273			(70,694		)	(168,732		)
Cash and cash equivalents at beginning of period	782,022			—			318,422			1,100,444
Cash and cash equivalents at end of period	$	679,711		$	4,273		$	247,728		$	931,712

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EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

The following tables set forth the computation of basic and diluted earnings per share attributable to IAC shareholders.

	Three Months Ended September 30,
	2015				2014
	Basic		Diluted		Basic		Diluted
	(In thousands, except per share data)
Numerator:
Earnings from continuing operations	$	65,026	$	65,026	$	150,261	$	150,261
Net loss attributable to noncontrolling interests	568		568		821		821
Earnings from continuing operations attributable to IAC shareholders	65,594		65,594		151,082		151,082
Earnings from discontinued operations attributable to IAC shareholders	17		17		175,730		175,730
Net earnings attributable to IAC shareholders	$	65,611	$	65,611	$	326,812	$	326,812
Denominator:
Weighted average basic shares outstanding	82,910		82,910		83,591		83,591
Dilutive securities including stock options and RSUs(a)(b)	—		5,990		—		5,199
Denominator for earnings per share—weighted average shares(a)(b)	82,910		88,900		83,591		88,790
Earnings per share attributable to IAC shareholders:
Earnings per share from continuing operations	$	0.79	$	0.74	$	1.81	$	1.70
Discontinued operations	—		—		2.10		1.98
Earnings per share	$	0.79	$	0.74	$	3.91	$	3.68

	Nine Months Ended September 30,
	2015						2014
	Basic			Diluted			Basic		Diluted
	(In thousands, except per share data)
Numerator:
Earnings from continuing operations	$	144,774		$	144,774		$	166,571	$	166,571
Net loss attributable to noncontrolling interests	6,558			6,558			4,082		4,082
Earnings from continuing operations attributable to IAC shareholders	151,332			151,332			170,653		170,653
(Loss) earnings from discontinued operations attributable to IAC shareholders	(11		)	(11		)	174,048		174,048
Net earnings attributable to IAC shareholders	$	151,321		$	151,321		$	344,701	$	344,701
Denominator:
Weighted average basic shares outstanding	82,924			82,924			83,088		83,088
Dilutive securities including stock options and RSUs(a)(b)	—			5,323			—		5,167
Denominator for earnings per share—weighted average shares(a)(b)	82,924			88,247			83,088		88,255
Earnings per share attributable to IAC shareholders:
Earnings per share from continuing operations	$	1.82		$	1.71		$	2.05	$	1.93
Discontinued operations	—			—			2.10		1.98
Earnings per share	$	1.82		$	1.71		$	4.15	$	3.91

_________________________________________

^(a)If the effect is dilutive, weighted average common shares outstanding include the incremental shares that would be issued upon the assumed exercise of stock options and vesting of restricted stock units ("RSUs"). For the three and nine months ended September 30, 2015, 1.0 million and 1.3 million potentially dilutive securities, respectively, are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. For both the three and nine months ended September 30, 2014, 0.3 million shares related to potentially dilutive securities are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.

^(b)Performance-based stock units ("PSUs") are included in the denominator for earnings per share if (i) the applicable performance condition(s) has been met and (ii) the inclusion of the PSUs is dilutive for the respective reporting periods. For both the three and nine months ended September 30, 2015, 0.2 million PSUs that were probable of vesting were excluded from the calculation of diluted earnings per share because the performance conditions had not been met. For both the three and nine months ended September 30, 2014, less than 0.1 million PSUs related to potentially dilutive securities are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.

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LONG-TERM DEBT

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

LONG-TERM DEBT

LONG-TERM DEBT

Long-term debt consists of:

	September 30, 2015		December 31, 2014
	(In thousands)
4.875% Senior Notes due November 30, 2018 (the "2013 Senior Notes"); interest payable each May 30 and November 30, which commenced May 30, 2014	$	500,000	$	500,000
4.75% Senior Notes due December 15, 2022 (the "2012 Senior Notes"); interest payable each June 15 and December 15, which commenced June 15, 2013	500,000		500,000
5% New York City Industrial Development Agency Liberty Bonds due September 1, 2035 (the "Liberty Bonds"); interest payable each March 1 and September 1, which commenced March 1, 2006	—		80,000
Total long-term debt	$	1,000,000	$	1,080,000

The 2013 and 2012 Senior Notes were issued on November 15, 2013 and December 21, 2012, respectively. On December 21, 2012, IAC entered into a $300 million revolving credit facility (the "IAC credit facility"). On October 7, 2015, the IAC credit facility agreement was amended and restated, and now expires October 7, 2020. At September 30, 2015 and December 31, 2014, there are no outstanding borrowings under the IAC credit facility. The annual fee to maintain the IAC credit facility is 35 basis points. Also, on October 7, 2015, Match Group, Inc. entered into a $500 million revolving credit facility, which expires on October 7, 2020 (the "Match credit facility"). The annual fee to maintain the Match credit facility is 35 basis points.

On October 16, 2015, Match Group, Inc. commenced a private exchange offer to eligible holders to exchange any and all of the 2012 Senior Notes for up to $500 million aggregate principal amount of new 6.75% Senior Notes due 2022 (the "Match Notes") to be issued by Match Group, Inc. ("Match Exchange Offer"). The Company expects to exchange $443.5 million of the 2012 Senior Notes for $443.5 million of the Match Notes pursuant to the Match Exchange Offer. Based on the results of the Match Exchange Offer, IAC does not expect to accept any 2013 Senior Notes for payment in the cash tender offer, which commenced on October 16, 2015.

The 2013 and 2012 Senior Notes are unconditionally guaranteed by certain IAC domestic subsidiaries, which are designated as guarantor subsidiaries. The guarantor subsidiaries are the same for the 2013 and 2012 Senior Notes and the IAC credit facility; any borrowings under the IAC credit facility would also be secured by the stock of certain of our domestic and foreign subsidiaries. See Note 11 for guarantor and non-guarantor financial information. The Match credit facility is guaranteed by the same entities that guarantee the 2013 and 2012 Senior Notes and the IAC credit facility, and also secured by the stock of certain Match Group, Inc. domestic and foreign subsidiaries. The Company expects that, promptly following the closing of the Match Exchange Offer, Match Group, Inc. will be designated an unrestricted subsidiary of IAC for purposes of the indentures governing the 2013 and 2012 Senior Notes and the IAC credit facility. Upon such designation, neither Match Group, Inc. nor any of its subsidiaries will guarantee any debt of the Company.

The indentures governing the 2013 and 2012 Senior Notes restrict our ability to incur additional indebtedness in the event we are not in compliance with the maximum leverage ratio of 3.0 to 1.0. In addition, the terms of the IAC credit facility require that we maintain a leverage ratio of not more than 3.25 to 1.0 and restrict our ability to incur additional indebtedness. The Company was in compliance with all applicable covenants at September 30, 2015. The terms of the Match credit facility require Match Group, Inc. to maintain a leverage ratio of not more than 5.0 to 1.0 and a minimum interest coverage ratio of not less than 2.5 to 1.0, and restrict Match Group, Inc.'s ability to incur additional indebtedness.

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ACCUMULATED OTHER COMPREHENSIVE LOSS

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

ACCUMULATED OTHER COMPREHENSIVE LOSS

ACCUMULATED OTHER COMPREHENSIVE LOSS

The following tables present the components of accumulated other comprehensive (loss) income.

	Three Months Ended September 30, 2015
	Foreign Currency Translation Adjustment			Unrealized Gains On Available-For-Sale Securities				Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of July 1	$	(133,895	)	$	3,600			$	(130,295	)
Other comprehensive loss, net of tax benefit of $0.1 million related to unrealized losses on available-for-sale securities	(8,420		)	(3,501		)		(11,921		)
Amounts reclassified to earnings	(2,191		)	(81		)	(a)	(2,272		)
Net current period other comprehensive loss	(10,611		)	(3,582		)		(14,193		)
Balance as of September 30	$	(144,506	)	$	18			$	(144,488	)

_________________________________________

^(a)Amount is net of a tax provision of $0.1 million.

	Three Months Ended September 30, 2014
	Foreign Currency Translation Adjustment			Unrealized Gains On Available-For-Sale Securities			Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of July 1	$	(15,282	)	$	5,376		$	(9,906	)
Other comprehensive (loss) income before reclassifications, net of tax provision of $0.2 million related to unrealized losses on available-for-sale securities	(36,428		)	231			(36,197		)
Amounts reclassified to earnings related to unrealized gains on available-for-sale securities, net of tax provision of $0.4 million	—			(665		)	(665		)
Net current period other comprehensive loss	(36,428		)	(434		)	(36,862		)
Balance as of September 30	$	(51,710	)	$	4,942		$	(46,768	)

	Nine Months Ended September 30, 2015
	Foreign Currency Translation Adjustment			Unrealized (Losses) Gains On Available-For-Sale Securities				Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of January 1	$	(86,848	)	$	(852	)		$	(87,700	)
Other comprehensive (loss) income, net of tax benefit of $0.3 million related to unrealized losses on available-for-sale securities	(55,467		)	788				(54,679		)
Amounts reclassified to earnings	(2,191		)	82			(b)	(2,109		)
Net current period other comprehensive (loss) income	(57,658		)	870				(56,788		)
Balance as of September 30	$	(144,506	)	$	18			$	(144,488	)

_________________________________________

^(b)Amount is net of a tax benefit of $0.1 million.

	Nine Months Ended September 30, 2014
	Foreign Currency Translation Adjustment			Unrealized Gains On Available-For-Sale Securities			Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of January 1	$	(20,352	)	$	7,306		$	(13,046	)
Other comprehensive loss before reclassifications, net of tax benefit of $0.5 million related to unrealized losses on available-for-sale securities	(31,358		)	(439		)	(31,797		)
Amounts reclassified to earnings related to unrealized gains on available-for-sale securities, net of tax provision of $1.2 million	—			(1,925		)	(1,925		)
Net current period other comprehensive loss	(31,358		)	(2,364		)	(33,722		)
Balance as of September 30	$	(51,710	)	$	4,942		$	(46,768	)

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SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The overall concept that 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 eCommerce reportable segment, do not meet the quantitative thresholds that require presentation as separate operating segments.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(In thousands)
Revenue:
Search & Applications	$	377,142		$	394,659		$	1,111,406		$	1,188,410
The Match Group	274,231			230,198			768,132			655,699
Media	57,278			49,895			137,100			122,906
eCommerce	130,031			107,825			366,027			312,616
Inter-segment eliminations	(121		)	(346		)	(460		)	(838		)
Total	$	838,561		$	782,231		$	2,382,205		$	2,278,793

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(In thousands)
Operating Income (Loss):
Search & Applications	$	65,391		$	80,384		$	198,283		$	228,492
The Match Group	71,912			66,393			148,665			167,394
Media	(8,252		)	(8,723		)	(37,379		)	(27,083		)
eCommerce	4,243			(1,585		)	(3,615		)	(3,138		)
Corporate	(46,164		)	(35,516		)	(120,936		)	(97,310		)
Total	$	87,130		$	100,953		$	185,018		$	268,355

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(In thousands)
Adjusted EBITDA:
Search & Applications	$	74,391		$	93,127		$	226,202		$	266,456
The Match Group	84,339			61,371			175,017			178,169
Media	(7,746		)	(7,702		)	(37,781		)	(24,477		)
eCommerce	7,713			3,865			7,257			11,192
Corporate	(17,555		)	(16,073		)	(45,717		)	(47,225		)
Total	$	141,142		$	134,588		$	324,978		$	384,115

Revenue by geography is based on where the customer is located. Geographic information about revenue and long-lived assets is presented below:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
	(In thousands)
Revenue:
United States	$	619,297	$	544,486	$	1,755,534	$	1,560,751
All other countries	219,264		237,745		626,671		718,042
Total	$	838,561	$	782,231	$	2,382,205	$	2,278,793

	September 30, 2015		December 31, 2014
	(In thousands)
Long-lived assets (excluding goodwill and intangible assets):
United States	$	278,970	$	281,879
All other countries	20,108		20,580
Total	$	299,078	$	302,459

The Company'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 and (ii) gains and losses recognized on changes in the fair value of contingent consideration arrangements. The Company 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. Moreover, our management uses this measure internally to evaluate the performance of our business as a whole and our individual business segments. The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, and we believe that by excluding these items, Adjusted EBITDA corresponds more closely to the cash operating income generated from our business, from which capital investments are made and debt is serviced. Adjusted EBITDA has certain limitations in that it does not take into account the impact to IAC's statement of operations of certain expenses.

The following tables reconcile Adjusted EBITDA to operating income (loss) for the Company's reportable segments:

	Three Months Ended September 30, 2015
	Adjusted EBITDA			Stock-Based Compensation Expense			Depreciation			Amortization of Intangibles			Acquisition-related Contingent Consideration Fair Value Adjustments			Operating Income (Loss)
	(In thousands)
Search & Applications	$	74,391		$	—		$	(3,777	)	$	(6,736	)	$	1,513		$	65,391
The Match Group	84,339			(1,147		)	(6,173		)	(4,352		)	(755		)	71,912
Media	(7,746		)	(50		)	(280		)	(378		)	202			(8,252		)
eCommerce	7,713			(410		)	(2,188		)	(872		)	—			4,243
Corporate	(17,555		)	(25,402		)	(3,207		)	—			—			(46,164		)
Total	$	141,142		$	(27,009	)	$	(15,625	)	$	(12,338	)	$	960		$	87,130

	Three Months Ended September 30, 2014
	Adjusted EBITDA			Stock-Based Compensation Expense			Depreciation			Amortization of Intangibles			Acquisition-related Contingent Consideration Fair Value Adjustments		Operating Income (Loss)
	(In thousands)
Search & Applications	$	93,127		$	—		$	(3,596	)	$	(9,147	)	$	—	$	80,384
The Match Group	61,371			(145		)	(5,794		)	(3,320		)	14,281		66,393
Media	(7,702		)	(161		)	(225		)	(635		)	—		(8,723		)
eCommerce	3,865			(138		)	(1,963		)	(3,349		)	—		(1,585		)
Corporate	(16,073		)	(16,888		)	(2,555		)	—			—		(35,516		)
Total	$	134,588		$	(17,332	)	$	(14,133	)	$	(16,451	)	$	14,281	$	100,953

	Nine Months Ended September 30, 2015
	Adjusted EBITDA			Stock-Based Compensation Expense			Depreciation			Amortization of Intangibles			Acquisition-related Contingent Consideration Fair Value Adjustments		Operating Income (Loss)
	(In thousands)
Search & Applications	$	226,202		$	—		$	(11,078	)	$	(20,631	)	$	3,790	$	198,283
The Match Group	175,017			(3,816		)	(19,885		)	(14,130		)	11,479		148,665
Media	(37,781		)	(344		)	(712		)	(1,179		)	2,637		(37,379		)
eCommerce	7,257			(1,250		)	(6,258		)	(3,364		)	—		(3,615		)
Corporate	(45,717		)	(66,459		)	(8,760		)	—			—		(120,936		)
Total	$	324,978		$	(71,869	)	$	(46,693	)	$	(39,304	)	$	17,906	$	185,018

	Nine Months Ended September 30, 2014
	Adjusted EBITDA			Stock-Based Compensation Expense			Depreciation			Amortization of Intangibles			Acquisition-related Contingent Consideration Fair Value Adjustments		Operating Income (Loss)
	(In thousands)
Search & Applications	$	266,456		$	—		$	(13,143	)	$	(24,821	)	$	—	$	228,492
The Match Group	178,169			(332		)	(17,183		)	(6,841		)	13,581		167,394
Media	(24,477		)	(486		)	(731		)	(1,589		)	200		(27,083		)
eCommerce	11,192			(138		)	(5,607		)	(8,585		)	—		(3,138		)
Corporate	(47,225		)	(42,541		)	(7,544		)	—			—		(97,310		)
Total	$	384,115		$	(43,497	)	$	(44,208	)	$	(41,836	)	$	13,781	$	268,355

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FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets:
Marketable securities	$ 53,937	$ 160,648
Fair value on a recurring basis
Assets:
Total Assets	497,639	780,563
Liabilities:
Contingent consideration arrangement	(31,470)	(30,140)
Fair value on a recurring basis | Money market funds
Assets:
Cash equivalents:	375,094	174,720
Fair value on a recurring basis | Time deposits
Assets:
Cash equivalents:	45,005	42,914
Fair value on a recurring basis | Commercial paper
Assets:
Cash equivalents:	8,999	388,801
Fair value on a recurring basis | Corporate debt securities
Assets:
Marketable securities	53,478	159,197
Fair value on a recurring basis | Equity security
Assets:
Marketable securities	459	1,451
Long-term investments:	9,594	7,410
Fair value on a recurring basis | Auction rate security
Assets:
Long-term investments:	5,010	6,070
Fair value on a recurring basis | Quoted Market Prices in Active Markets for Identical Assets (Level 1)
Assets:
Total Assets	385,147	183,581
Fair value on a recurring basis | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Money market funds
Assets:
Cash equivalents:	375,094	174,720
Fair value on a recurring basis | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Equity security
Assets:
Marketable securities	459	1,451
Long-term investments:	9,594	7,410
Fair value on a recurring basis | Significant Other Observable Inputs (Level 2)
Assets:
Total Assets	107,482	590,912
Fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | Time deposits
Assets:
Cash equivalents:	45,005	42,914
Fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | Commercial paper
Assets:
Cash equivalents:	8,999	388,801
Fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | Corporate debt securities
Assets:
Marketable securities	53,478	159,197
Fair value on a recurring basis | Significant Unobservable Inputs (Level 3)
Assets:
Total Assets	5,010	6,070
Liabilities:
Contingent consideration arrangement	(31,470)	(30,140)
Fair value on a recurring basis | Significant Unobservable Inputs (Level 3) | Auction rate security
Assets:
Long-term investments:	$ 5,010	$ 6,070

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MARKETABLE SECURITIES (Tables)

9 Months Ended

Sep. 30, 2015

Marketable Securities [Abstract]

Schedule of current available-for-sale marketable securities

At September 30, 2015, current available-for-sale marketable securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Corporate debt securities	$	53,600	$	7	$	(129	)	$	53,478
Equity security	98		361		—			459
Total marketable securities	$	53,698	$	368	$	(129	)	$	53,937

At December 31, 2014, current available-for-sale marketable securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Corporate debt securities	$	159,418	$	34	$	(255	)	$	159,197
Equity security	98		1,353		—			1,451
Total marketable securities	$	159,516	$	1,387	$	(255	)	$	160,648

Schedule of contractual maturities of debt securities classified as available-for-sale

The contractual maturities of debt securities classified as current available-for-sale at September 30, 2015 are as follows:

	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	4,374	$	4,370
Due after one year through five years	49,226		49,108
Total	$	53,600	$	53,478

Schedule of proceeds from maturities and sales of current and non-current available-for-sale marketable securities and the related gross realized gains and losses

The following table presents the proceeds from maturities and sales of current and non-current available-for-sale marketable securities and the related gross realized gains:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
	(In thousands)
Proceeds from maturities and sales of available-for-sale marketable securities	$	178,315	$	1,114	$	192,928	$	4,576
Gross realized gains	17		1,063		22		3,362

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SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Schedule of reconciliation of revenues from segments to consolidated

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(In thousands)
Revenue:
Search & Applications	$	377,142		$	394,659		$	1,111,406		$	1,188,410
The Match Group	274,231			230,198			768,132			655,699
Media	57,278			49,895			137,100			122,906
eCommerce	130,031			107,825			366,027			312,616
Inter-segment eliminations	(121		)	(346		)	(460		)	(838		)
Total	$	838,561		$	782,231		$	2,382,205		$	2,278,793

Schedule of reconciliation of operating income (loss) from segments to consolidated

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(In thousands)
Operating Income (Loss):
Search & Applications	$	65,391		$	80,384		$	198,283		$	228,492
The Match Group	71,912			66,393			148,665			167,394
Media	(8,252		)	(8,723		)	(37,379		)	(27,083		)
eCommerce	4,243			(1,585		)	(3,615		)	(3,138		)
Corporate	(46,164		)	(35,516		)	(120,936		)	(97,310		)
Total	$	87,130		$	100,953		$	185,018		$	268,355

Schedule of reconciliation of Adjusted EBITDA from segments to consolidated

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(In thousands)
Adjusted EBITDA:
Search & Applications	$	74,391		$	93,127		$	226,202		$	266,456
The Match Group	84,339			61,371			175,017			178,169
Media	(7,746		)	(7,702		)	(37,781		)	(24,477		)
eCommerce	7,713			3,865			7,257			11,192
Corporate	(17,555		)	(16,073		)	(45,717		)	(47,225		)
Total	$	141,142		$	134,588		$	324,978		$	384,115

Schedule of revenue and long-lived assets, excluding goodwill and intangible assets, by geography

Revenue by geography is based on where the customer is located. Geographic information about revenue and long-lived assets is presented below:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
	(In thousands)
Revenue:
United States	$	619,297	$	544,486	$	1,755,534	$	1,560,751
All other countries	219,264		237,745		626,671		718,042
Total	$	838,561	$	782,231	$	2,382,205	$	2,278,793

	September 30, 2015		December 31, 2014
	(In thousands)
Long-lived assets (excluding goodwill and intangible assets):
United States	$	278,970	$	281,879
All other countries	20,108		20,580
Total	$	299,078	$	302,459

Schedule of reconciliation of Adjusted EBITDA to operating income (loss) for the entity's reportable segments

The following tables reconcile Adjusted EBITDA to operating income (loss) for the Company's reportable segments:

	Three Months Ended September 30, 2015
	Adjusted EBITDA			Stock-Based Compensation Expense			Depreciation			Amortization of Intangibles			Acquisition-related Contingent Consideration Fair Value Adjustments			Operating Income (Loss)
	(In thousands)
Search & Applications	$	74,391		$	—		$	(3,777	)	$	(6,736	)	$	1,513		$	65,391
The Match Group	84,339			(1,147		)	(6,173		)	(4,352		)	(755		)	71,912
Media	(7,746		)	(50		)	(280		)	(378		)	202			(8,252		)
eCommerce	7,713			(410		)	(2,188		)	(872		)	—			4,243
Corporate	(17,555		)	(25,402		)	(3,207		)	—			—			(46,164		)
Total	$	141,142		$	(27,009	)	$	(15,625	)	$	(12,338	)	$	960		$	87,130

	Three Months Ended September 30, 2014
	Adjusted EBITDA			Stock-Based Compensation Expense			Depreciation			Amortization of Intangibles			Acquisition-related Contingent Consideration Fair Value Adjustments		Operating Income (Loss)
	(In thousands)
Search & Applications	$	93,127		$	—		$	(3,596	)	$	(9,147	)	$	—	$	80,384
The Match Group	61,371			(145		)	(5,794		)	(3,320		)	14,281		66,393
Media	(7,702		)	(161		)	(225		)	(635		)	—		(8,723		)
eCommerce	3,865			(138		)	(1,963		)	(3,349		)	—		(1,585		)
Corporate	(16,073		)	(16,888		)	(2,555		)	—			—		(35,516		)
Total	$	134,588		$	(17,332	)	$	(14,133	)	$	(16,451	)	$	14,281	$	100,953

	Nine Months Ended September 30, 2015
	Adjusted EBITDA			Stock-Based Compensation Expense			Depreciation			Amortization of Intangibles			Acquisition-related Contingent Consideration Fair Value Adjustments		Operating Income (Loss)
	(In thousands)
Search & Applications	$	226,202		$	—		$	(11,078	)	$	(20,631	)	$	3,790	$	198,283
The Match Group	175,017			(3,816		)	(19,885		)	(14,130		)	11,479		148,665
Media	(37,781		)	(344		)	(712		)	(1,179		)	2,637		(37,379		)
eCommerce	7,257			(1,250		)	(6,258		)	(3,364		)	—		(3,615		)
Corporate	(45,717		)	(66,459		)	(8,760		)	—			—		(120,936		)
Total	$	324,978		$	(71,869	)	$	(46,693	)	$	(39,304	)	$	17,906	$	185,018

	Nine Months Ended September 30, 2014
	Adjusted EBITDA			Stock-Based Compensation Expense			Depreciation			Amortization of Intangibles			Acquisition-related Contingent Consideration Fair Value Adjustments		Operating Income (Loss)
	(In thousands)
Search & Applications	$	266,456		$	—		$	(13,143	)	$	(24,821	)	$	—	$	228,492
The Match Group	178,169			(332		)	(17,183		)	(6,841		)	13,581		167,394
Media	(24,477		)	(486		)	(731		)	(1,589		)	200		(27,083		)
eCommerce	11,192			(138		)	(5,607		)	(8,585		)	—		(3,138		)
Corporate	(47,225		)	(42,541		)	(7,544		)	—			—		(97,310		)
Total	$	384,115		$	(43,497	)	$	(44,208	)	$	(41,836	)	$	13,781	$	268,355

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SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment reporting information
Revenue	$ 838,561	$ 782,231	$ 2,382,205	$ 2,278,793
Operating income	87,130	100,953	185,018	268,355
Reconciliation of Adjusted EBITDA to operating income (loss) for the entity's reportable segments
Adjusted EBITDA	141,142	134,588	324,978	384,115
Stock-Based Compensation Expense	(27,009)	(17,332)	(71,869)	(43,497)
Depreciation	(15,625)	(14,133)	(46,693)	(44,208)
Amortization of Intangibles	(12,338)	(16,451)	(39,304)	(41,836)
Acquisition-related contingent consideration fair value adjustments	960	14,281	17,906	13,781
Operating income	87,130	100,953	185,018	268,355
Operating segments | Search & Applications
Segment reporting information
Revenue	377,142	394,659	1,111,406	1,188,410
Operating income	65,391	80,384	198,283	228,492
Reconciliation of Adjusted EBITDA to operating income (loss) for the entity's reportable segments
Adjusted EBITDA	74,391	93,127	226,202	266,456
Stock-Based Compensation Expense	0	0	0	0
Depreciation	(3,777)	(3,596)	(11,078)	(13,143)
Amortization of Intangibles	(6,736)	(9,147)	(20,631)	(24,821)
Acquisition-related contingent consideration fair value adjustments	1,513	0	3,790	0
Operating income	65,391	80,384	198,283	228,492
Operating segments | The Match Group
Segment reporting information
Revenue	274,231	230,198	768,132	655,699
Operating income	71,912	66,393	148,665	167,394
Reconciliation of Adjusted EBITDA to operating income (loss) for the entity's reportable segments
Adjusted EBITDA	84,339	61,371	175,017	178,169
Stock-Based Compensation Expense	(1,147)	(145)	(3,816)	(332)
Depreciation	(6,173)	(5,794)	(19,885)	(17,183)
Amortization of Intangibles	(4,352)	(3,320)	(14,130)	(6,841)
Acquisition-related contingent consideration fair value adjustments	(755)	14,281	11,479	13,581
Operating income	71,912	66,393	148,665	167,394
Operating segments | Media
Segment reporting information
Revenue	57,278	49,895	137,100	122,906
Operating income	(8,252)	(8,723)	(37,379)	(27,083)
Reconciliation of Adjusted EBITDA to operating income (loss) for the entity's reportable segments
Adjusted EBITDA	(7,746)	(7,702)	(37,781)	(24,477)
Stock-Based Compensation Expense	(50)	(161)	(344)	(486)
Depreciation	(280)	(225)	(712)	(731)
Amortization of Intangibles	(378)	(635)	(1,179)	(1,589)
Acquisition-related contingent consideration fair value adjustments	202	0	2,637	200
Operating income	(8,252)	(8,723)	(37,379)	(27,083)
Operating segments | eCommerce
Segment reporting information
Revenue	130,031	107,825	366,027	312,616
Operating income	4,243	(1,585)	(3,615)	(3,138)
Reconciliation of Adjusted EBITDA to operating income (loss) for the entity's reportable segments
Adjusted EBITDA	7,713	3,865	7,257	11,192
Stock-Based Compensation Expense	(410)	(138)	(1,250)	(138)
Depreciation	(2,188)	(1,963)	(6,258)	(5,607)
Amortization of Intangibles	(872)	(3,349)	(3,364)	(8,585)
Acquisition-related contingent consideration fair value adjustments	0	0	0	0
Operating income	4,243	(1,585)	(3,615)	(3,138)
Intersegment eliminations
Segment reporting information
Revenue	(121)	(346)	(460)	(838)
Corporate
Segment reporting information
Operating income	(46,164)	(35,516)	(120,936)	(97,310)
Reconciliation of Adjusted EBITDA to operating income (loss) for the entity's reportable segments
Adjusted EBITDA	(17,555)	(16,073)	(45,717)	(47,225)
Stock-Based Compensation Expense	(25,402)	(16,888)	(66,459)	(42,541)
Depreciation	(3,207)	(2,555)	(8,760)	(7,544)
Amortization of Intangibles	0	0	0	0
Acquisition-related contingent consideration fair value adjustments	0	0	0	0
Operating income	$ (46,164)	$ (35,516)	$ (120,936)	$ (97,310)

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net earnings	$ 65,043	$ 325,991	$ 144,763	$ 340,619
Other comprehensive (loss) income, net of tax:
Change in foreign currency translation adjustment	(10,603)	(36,759)	(58,604)	(31,569)
Change in unrealized gains and losses of available-for-sale securities (net of tax benefits of $277 and $95 for the three and nine months ended September 30, 2015, respectively, and net of tax benefits of $245 and $1,683 for the three and nine months ended September 30, 2014, respectively)	(3,617)	(389)	632	(2,639)
Total other comprehensive loss, net of tax	(14,220)	(37,148)	(57,972)	(34,208)
Comprehensive income	50,823	288,843	86,791	306,411
Comprehensive loss attributable to noncontrolling interests	595	1,107	7,742	4,568
Comprehensive income attributable to IAC shareholders	$ 51,418	$ 289,950	$ 94,533	$ 310,979

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INCOME TAXES

9 Months Ended

Sep. 30, 2015

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

At the end of each interim period, the Company makes its best estimate of the annual expected effective income tax rate and applies that rate to its ordinary year-to-date earnings or loss. The income tax provision or benefit related to significant, unusual, or extraordinary items, if applicable, that will be separately reported or reported net of their related tax effects are individually computed and recognized in the interim period in which they occur. In addition, the effect of changes in enacted tax laws or rates, tax status, judgment on the realizability of a beginning-of-the-year deferred tax asset in future years or the liabilities for uncertain tax positions is recognized in the interim period in which the change occurs.

The computation of the annual expected effective income tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected pre-tax income (or loss) for the year, projections of the proportion of income (and/or loss) earned and taxed in foreign jurisdictions, permanent and temporary differences, and the likelihood of the realization of deferred tax assets generated in the current year. The accounting estimates used to compute the provision or benefit for income taxes may change as new events occur, more experience is acquired, additional information is obtained or our tax environment changes. To the extent that the expected annual effective income tax rate changes during a quarter, the effect of the change on prior quarters is included in income tax provision in the quarter in which the change occurs.

For the three and nine months ended September 30, 2015, the Company recorded an income tax provision for continuing operations of $40.5 million and $34.7 million, respectively, which represents effective income tax rates of 38% and 19%, respectively. The effective tax rate for the three months endedSeptember 30, 2015 is higher than the statutory rate of 35% due primarily to state taxes, partially offset by foreign income taxed at lower rates. The effective tax rate for the nine months endedSeptember 30, 2015 is lower than the statutory rate of 35% due primarily to the realization of certain deferred tax assets, a reduction in tax reserves and related interest due to the expiration of statutes of limitations and the non-taxable gain on contingent consideration fair value adjustments in the current year period. For the three and nine months ended September 30, 2014, the Company recorded an income tax benefit for continuing operations of $59.8 million and $8.5 million, respectively, despite pre-tax income of $90.4 million and $158.0 million, respectively. The income tax benefit for the three and nine months ended September 30, 2014 is due principally to a reduction in tax reserves and related interest due to the expiration of statutes of limitations for federal income taxes for 2001 through 2009 of $88.2 million.

The Company recognizes interest and, if applicable, penalties related to unrecognized tax benefits in the income tax provision. Included in the income tax provision for continuing operations for the three and nine months ended September 30, 2015, is a less than $0.1 million expense and a $0.2 million benefit, respectively, net of related deferred taxes, for interest on unrecognized tax benefits. At September 30, 2015 and December 31, 2014, the Company has accrued $2.2 million and $2.8 million, respectively, for the payment of interest. At September 30, 2015 and December 31, 2014, the Company has accrued $2.1 million and $2.9 million, respectively, for penalties.

The Company is routinely under audit by federal, state, local and foreign authorities in the area of income tax. 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 is currently auditing the Company’s federal income tax returns for the years ended December 31, 2010 through 2012. Various other jurisdictions are open to examination for various tax years beginning with 2009. Income taxes payable include reserves considered sufficient to pay assessments that may result from examination of prior year tax returns. Changes to reserves from period to period and differences between amounts paid, if any, upon resolution of audits and amounts previously provided may be material. Differences between the reserves for uncertain tax positions and the amounts owed by the Company are recorded in the period they become known.

At September 30, 2015 and December 31, 2014, unrecognized tax benefits, including interest and penalties, are $24.8 million and $33.2 million, respectively. If unrecognized tax benefits at September 30, 2015 are subsequently recognized, $22.8 million, net of related deferred tax assets and interest, would reduce income tax provision for continuing operations. The Company believes that it is reasonably possible that its unrecognized tax benefits could decrease by $7.7 million within twelve months of September 30, 2015 primarily due to expiration of statutes of limitations and settlements.

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CONSOLIDATED FINANCIAL STATEMENT DETAILS (Tables)

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Other Income (Expense), Net

Other income (expense), net consists of:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2015			2014		2015			2014
	(In thousands)
Gain on real estate transaction	$	33,586		$	—	$	33,586		$	—
Impairment of long-term investments	(804		)	—		(1,304		)	(64,281		)
Foreign currency exchange gains (losses)	308			2,210		4,838			(612		)
Other	910			1,903		2,706			6,083
Total	$	34,000		$	4,113	$	39,826		$	(58,810	)

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ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			$ (87,700)
Total other comprehensive loss, net of tax	$ (14,220)	$ (37,148)	(57,972)	$ (34,208)
Ending balance	(144,488)		(144,488)
Tax provision (benefit) of other comprehensive loss before reclassifications related to unrealized losses on available-for-sale securities	(100)	200	(300)	(500)
Tax provision (benefit) for amounts reclassified from accumulated other comprehensive loss	100	400	(100)	1,200
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(133,895)	(15,282)	(86,848)	(20,352)
Other comprehensive income before reclassifications, net of tax benefit (provision) related to unrealized gains on available-for-sale securities	(8,420)	(36,428)	(55,467)	(31,358)
Amounts reclassified related to unrealized losses on available for sale securities, net of tax provision	(2,191)	0	(2,191)	0
Total other comprehensive loss, net of tax	(10,611)	(36,428)	(57,658)	(31,358)
Ending balance	(144,506)	(51,710)	(144,506)	(51,710)
Unrealized Gains On Available-For-Sale Securities
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	3,600	5,376	(852)	7,306
Other comprehensive income before reclassifications, net of tax benefit (provision) related to unrealized gains on available-for-sale securities	(3,501)	231	788	(439)
Amounts reclassified related to unrealized losses on available for sale securities, net of tax provision	(81)	(665)	82	(1,925)
Total other comprehensive loss, net of tax	(3,582)	(434)	870	(2,364)
Ending balance	18	4,942	18	4,942
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(130,295)	(9,906)	(87,700)	(13,046)
Other comprehensive income before reclassifications, net of tax benefit (provision) related to unrealized gains on available-for-sale securities	(11,921)	(36,197)	(54,679)	(31,797)
Amounts reclassified related to unrealized losses on available for sale securities, net of tax provision	(2,272)	(665)	(2,109)	(1,925)
Total other comprehensive loss, net of tax	(14,193)	(36,862)	(56,788)	(33,722)
Ending balance	$ (144,488)	$ (46,768)	$ (144,488)	$ (46,768)

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THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP").

Basis of Consolidation and Accounting for Investments

Basis of Consolidation and Accounting for Investments

The consolidated financial statements include the accounts of the Company, all entities that are wholly-owned by the Company and all entities in which the Company has a controlling financial interest. Intercompany transactions and accounts have been eliminated.

Investments in the common stock or in-substance common stock of entities in which the Company has the ability to exercise significant influence over the operating and financial matters of the investee, but does not have a controlling financial interest, are accounted for using the equity method and are included in "Long-term investments" in the accompanying consolidated balance sheet.

The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the rules and regulations of the SEC. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. Interim results are not necessarily indicative of the results that may be expected for the full year. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014.

Accounting Estimates

Accounting Estimates

The preparation of consolidated financial statements in accordance with GAAP requires management to make certain estimates, judgments and assumptions that 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, the Company evaluates its estimates and judgments including those related to: the fair values of marketable securities and other investments; the recoverability of goodwill and indefinite-lived intangible assets; the useful lives and recoverability of definite-lived intangible assets and property and equipment; the carrying value of accounts receivable, including the determination of the allowance for doubtful accounts and revenue reserves; the fair value of acquisition-related contingent consideration; the liabilities for uncertain tax positions; the valuation allowance for deferred income tax assets; and the fair value of and forfeiture rates for stock-based awards, among others. The Company bases its estimates and judgments on historical experience, its forecasts and budgets and other factors that the Company considers relevant.

Certain Risks and Concentrations

Certain Risks and Concentrations

A substantial portion of the Company's revenue is derived from online advertising, the market for which is highly competitive and rapidly changing. Significant changes in this industry or changes in advertising spending behavior or in customer buying behavior could adversely affect our operating results. Most of the Company's online advertising revenue is attributable to a services agreement with Google Inc. ("Google"). On October 26, 2015, the Company and Google entered into a services agreement that is effective as of April 1, 2016, following the expiration of the current services agreement, and expires on March 31, 2020. The Company may choose to terminate the agreement effective March 31, 2019. These services agreements require that we comply with certain guidelines promulgated by Google. Subject to certain limitations, Google may unilaterally update its policies and guidelines, which could 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 business, financial condition and results of operations.

Recent Accounting Pronouncement

Recent Accounting Pronouncement

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, which clarifies the principles for recognizing revenue and develops a common standard for all industries. In July 2015, the FASB decided to defer the effective date for annual reporting periods beginning after December 15, 2017. Early adoption is permitted beginning on the original effective date of December 15, 2016. Upon adoption, ASU No. 2014-09 may either be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is currently evaluating the new guidance and has not yet determined whether the adoption of the new standard will have a material impact on its consolidated financial statements or the method and timing of adoption.

Reclassifications

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation.