View Filing Data

CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands	Jun. 30, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents	$ 622,866	$ 742,099
Marketable securities	288,997	563,997
Accounts receivable, net of allowance of $8,375 and $8,848, respectively	126,887	119,581
Other current assets	110,341	118,308
Total current assets	1,149,091	1,543,985
Funds held in escrow for Meetic tender offer	360,583
Property and equipment, net	261,118	267,928
Goodwill	1,077,476	989,493
Intangible assets, net	245,822	245,044
Long-term investments	255,909	200,721
Other non-current assets	159,302	192,383
TOTAL ASSETS	3,509,301	3,439,554
LIABILITIES:
Accounts payable, trade	47,252	56,375
Deferred revenue	90,412	78,175
Accrued expenses and other current liabilities	267,828	222,323
Total current liabilities	405,492	356,873
Long-term debt	95,844	95,844
Income taxes payable	460,138	475,685
Other long-term liabilities	19,710	20,350
Redeemable noncontrolling interests	56,482	59,869
Commitments and contingencies
SHAREHOLDERS' EQUITY:
Additional paid-in capital	11,539,948	11,428,749
Accumulated deficit	(591,524)	(652,018)
Accumulated other comprehensive income	62,224	17,546
Treasury stock 158,567,307 and 153,663,130 shares, respectively	(8,539,259)	(8,363,586)
Total shareholders' equity	2,471,635	2,430,933
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	3,509,301	3,439,554
Common stock
SHAREHOLDERS' EQUITY:
Common stock	230	226
Class B convertible common stock
SHAREHOLDERS' EQUITY:
Common stock	$ 16	$ 16

CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2011	Dec. 31, 2010
Accounts receivable, allowance (in dollars)	$ 8,375	$ 8,848
Treasury stock, shares	158,567,307	153,663,130
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	229,718,224	225,873,751
Common stock, outstanding shares	81,518,917	84,078,621
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	4,289,499

CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Revenue	$ 485,404	$ 394,244	$ 945,617	$ 772,422
Costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	181,472	140,638	354,190	271,787
Selling and marketing expense	133,218	118,306	273,468	248,687
General and administrative expense	80,553	74,917	156,844	148,881
Product development expense	17,280	14,369	35,002	29,161
Depreciation	12,450	16,625	25,889	32,418
Amortization of intangibles	2,200	4,756	4,657	7,930
Total costs and expenses	427,173	369,611	850,050	738,864
Operating income	58,231	24,633	95,567	33,558
Equity in losses of unconsolidated affiliates	(8,720)	(4,002)	(10,599)	(26,615)
Other income, net	5,637	103	6,389	5,339
Earnings from continuing operations before income taxes	55,148	20,734	91,357	12,282
Income tax provision	(9,518)	(5,313)	(25,559)	(11,458)
Earnings from continuing operations	45,630	15,421	65,798	824
Loss from discontinued operations, net of tax	(2,488)	(2,586)	(4,436)	(7,313)
Net earnings (loss)	43,142	12,835	61,362	(6,489)
Net (earnings) loss attributable to noncontrolling interests	(718)	756	(868)	1,375
Net earnings (loss) attributable to IAC shareholders	$ 42,424	$ 13,591	$ 60,494	$ (5,114)
Per share information attributable to IAC shareholders:
Basic earnings per share from continuing operations (in dollars per share)	$ 0.50	$ 0.15	$ 0.72	$ 0.02
Diluted earnings per share from continuing operations (in dollars per share)	0.46	0.14	0.68	0.02
Basic earnings (loss) per share (in dollars per share)	0.47	0.12	0.68	(0.05)
Diluted earnings (loss) per share (in dollars per share)	$ 0.44	$ 0.12	$ 0.63	$ (0.04)
Non-cash compensation expense by function:
Total non-cash compensation expense	$ 23,007	$ 21,048	$ 43,168	$ 42,593
Cost of revenue
Non-cash compensation expense by function:
Total non-cash compensation expense	1,151	1,011	2,233	1,952
Selling and marketing expense
Non-cash compensation expense by function:
Total non-cash compensation expense	1,200	971	2,235	1,954
General and administrative expense
Non-cash compensation expense by function:
Total non-cash compensation expense	18,926	17,676	35,326	35,819
Product development expense
Non-cash compensation expense by function:
Total non-cash compensation expense	$ 1,730	$ 1,390	$ 3,374	$ 2,868

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Cash flows from operating activities attributable to continuing operations:
Net earnings (loss)	$ 61,362	$ (6,489)
Less: loss from discontinued operations, net of tax	4,436	7,313
Earnings from continuing operations	65,798	824
Adjustments to reconcile earnings from continuing operations to net cash provided by operating activities attributable to continuing operations:
Depreciation	25,889	32,418
Amortization of intangibles	4,657	7,930
Non-cash compensation expense	43,168	42,593
Deferred income taxes	14,136	(5,812)
Equity in losses of unconsolidated affiliates	10,599	26,615
Gain on sales of investments	(1,544)	(3,989)
Changes in current assets and liabilities:
Accounts receivable	(10,210)	(8,831)
Other current assets	(237)	2,548
Accounts payable and other current liabilities	(6,343)	(2,734)
Income taxes payable	(8,146)	24,678
Deferred revenue	11,878	9,048
Other, net	7,515	6,287
Net cash provided by operating activities attributable to continuing operations	157,160	131,575
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	(79,968)	(16,681)
Capital expenditures	(19,349)	(23,513)
Proceeds from sales and maturities of marketable debt securities	402,096	366,543
Purchases of marketable debt securities	(135,021)	(427,286)
Proceeds from sales of investments	11,808	5,325
Purchases of long-term investments	(1,604)	(796)
Funds transferred to escrow for Meetic tender offer	(360,585)
Dividend received from Meetic, an equity method investee		8,800
Other, net	(7,127)	(127)
Net cash used in investing activities attributable to continuing operations	(189,750)	(87,735)
Cash flows from financing activities attributable to continuing operations:
Purchase of treasury stock	(155,241)	(379,508)
Issuance of common stock, net of withholding taxes	52,043	6,592
Excess tax benefits from stock-based awards	17,865	4,992
Other, net	20	5
Net cash used in financing activities attributable to continuing operations	(85,313)	(367,919)
Total cash used in continuing operations	(117,903)	(324,079)
Total cash used in discontinued operations	(2,913)	(2,517)
Effect of exchange rate changes on cash and cash equivalents	1,583	(4,232)
Net decrease in cash and cash equivalents	(119,233)	(330,828)
Cash and cash equivalents at beginning of period	742,099	1,245,997
Cash and cash equivalents at end of period	$ 622,866	$ 915,169

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2011

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1—THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

IAC is a leading internet company with more than 50 brands serving consumer audiences across more than 30 countries...our mission is to harness the power of interactivity to make daily life easier and more productive for people all over the world. IAC includes the businesses comprising its Search segment; its Match and ServiceMagic segments; the businesses comprising its Media & Other segment; as well as investments in unconsolidated affiliates.

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

Basis of Presentation

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, whether through voting interests or variable interests. The Company's consolidated financial statements include one variable interest entity, in which the Company has a controlling financial interest through voting rights and is also the primary beneficiary. Intercompany transactions and accounts have been eliminated. Investments in 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 U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and with the rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and notes required by U.S. 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 a 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, 2010.

The accompanying unaudited consolidated statements of operations for the three and six months ended June 30, 2010 and cash flows for the six months ended June 30, 2010 have been reclassified to present Evite, Gifts.com, IAC Advertising Solutions and InstantAction, all of which were previously reported in IAC's Media & Other segment, as discontinued operations. In addition, certain other prior year amounts have been reclassified to conform to the current year presentation.

Accounting Estimates

The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make certain estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and the related disclosure of contingent assets and liabilities. Actual amounts could differ materially 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, goodwill and indefinite-lived intangible assets, the useful lives 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 other revenue related allowances, the reserves for income tax contingencies and the valuation allowances for deferred income tax assets and the fair value of 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 attributable to online advertising, the market for which is highly competitive and rapidly changing. Significant changes in this industry or changes in customer buying behavior or advertiser spending behavior could adversely affect our operating results. A significant majority of the Company's online advertising revenue is attributable to a paid listing supply agreement with Google Inc. ("Google"), which expires on March 31, 2016. For the three and six months ended June 30, 2011, revenue earned from Google was $221.3 million and $436.2 million, respectively. For the three and six months ended June 30, 2010, revenue earned from Google was $174.1 million and $345.7 million, respectively. The majority of this revenue was earned by the businesses comprising the Search segment. Accounts receivable related to revenue earned from Google totaled $75.3 million at June 30, 2011 and $70.5 million at December 31, 2010.

- Definition

The entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.

+ References + Details

CONSOLIDATED FINANCIAL STATEMENT DETAILS

6 Months Ended

Jun. 30, 2011

CONSOLIDATED FINANCIAL STATEMENT DETAILS

CONSOLIDATED FINANCIAL STATEMENT DETAILS

NOTE 2—CONSOLIDATED FINANCIAL STATEMENT DETAILS

Property and equipment, net

		June 30, 2011			December 31, 2010

		(In thousands)
Buildings and leasehold improvements		$	234,606		$	234,328
Computer equipment and capitalized software			191,260			183,055
Furniture and other equipment			41,568			41,930
Projects in progress			6,116			2,944
Land			5,117			5,117

			478,667			467,374
Less: accumulated depreciation and amortization			(217,549	)		(199,446	)

	Property and equipment, net	$	261,118		$	267,928

Redeemable noncontrolling interests

		June 30, 2011			December 31, 2010

		(In thousands)
Balance at January 1		$	59,869		$	28,180
Purchase of non-controlling interests			(5,652	)		—
Noncontrolling interests related to acquisitions			—			23,583
Noncontrolling interest created by a decrease in the ownership of a subsidiary			—			15,750
Contribution from owners of noncontrolling interests			80			79
Net earnings (loss) attributable to noncontrolling interests			868			(5,007	)
Change in fair value of redeemable noncontrolling interests			1,389			(2,059	)
Change in foreign currency translation adjustment			126			(267	)
Other			(198	)		(390	)

	Balance at end of period	$	56,482		$	59,869

Accumulated other comprehensive income

		June 30, 2011		December 31, 2010

		(In thousands)
Foreign currency translation adjustment, net of tax		$	25,889	$	16,027
Unrealized gains on available-for-sale securities, net of tax			36,335		1,519

	Accumulated other comprehensive income, net of tax	$	62,224	$	17,546

Other income (expense), net

		Three Months Ended June 30,						Six Months Ended June 30,

		2011			2010			2011			2010
		(In thousands)
Interest income		$	1,150		$	1,666		$	2,452		$	3,301
Interest expense			(1,355	)		(1,323	)		(2,710	)		(2,646	)
Gain on sales of investments			698			—			1,544			3,989
Non-income tax refunds related to Match Europe, which was sold in 2009			4,630			—			4,630			—
Other			514			(240	)		473			695

	Other income, net	$	5,637		$	103		$	6,389		$	5,339

Comprehensive income (loss)

		Three Months Ended June 30,					Six Months Ended June 30,

		2011		2010			2011		2010
		(In thousands)
Net earnings (loss) attributable to IAC shareholders		$	42,424	$	13,591		$	60,494	$	(5,114	)

Change in foreign currency translation adjustment, net of tax			8,934		(8,990	)		9,862		(13,663	)
Change in net unrealized gains (losses) on available-for-sale securities, net of tax			32,447		(2,533	)		34,816		(7,742	)

Other comprehensive income (loss)			41,381		(11,523	)		44,678		(21,405	)

	Comprehensive income (loss)	$	83,805	$	2,068		$	105,172	$	(26,519	)

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. The amount of unrealized gains, net of tax, reclassified out of accumulated other comprehensive income into earnings related to the sales and maturities of available-for-sale securities for the three and six months ended June 30, 2011 were $1.3 million and $1.4 million, respectively. The amount of unrealized gains, net of tax, reclassified out of accumulated other comprehensive income into earnings related to the sales and maturities of available-for-sale securities for the three and six months ended June 30, 2010 were less than $0.1 million and $2.7 million, respectively.

INCOME TAXES

6 Months Ended

Jun. 30, 2011

INCOME TAXES

INCOME TAXES

NOTE 3—INCOME TAXES

At the end of each interim period, the Company makes its best estimate of the annual expected effective 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 effect are individually computed and recognized in the interim period in which those items occur. In addition, the effect of changes in enacted tax laws or rates, tax status, or judgment on the realizability of a beginning-of-the-year deferred tax asset in future years is recognized in the interim period in which the change occurs.

The computation of the annual expected effective 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 realizability 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 tax rate changes during a quarter, the effect of the change on prior quarters is included in income tax provision for the quarter in which the change occurs. Included in the income tax provision for the three months ended June 30, 2011 is a benefit of $0.7 million due to a lower estimated annual effective tax rate from that applied to the first quarter's ordinary income from continuing operations.

For the three and six months ended June 30, 2011, the Company recorded an income tax provision for continuing operations of $9.5 million and $25.6 million, respectively, which represent effective tax rates of 17% and 28%, respectively. The tax rates for the three and six months ended June 30, 2011 are lower than the federal statutory rate of 35% due principally to the reduction in state tax accruals resulting from income tax provision to tax return reconciliations and the expiration of statutes of limitations and foreign income taxed at lower rates, partially offset by interest on tax contingencies and state taxes.

For the three and six months ended June 30, 2010, the Company recorded an income tax provision for continuing operations of $5.3 million and $11.5 million, respectively, which represent effective tax rates of 26% and 93%, respectively. The tax rate for the three months ended June 30, 2010 is lower than the federal statutory rate of 35% due principally to foreign tax credits, partially offset by interest on tax contingencies and state taxes. The tax rate for the six months ended June 30, 2010 is higher than the federal statutory rate of 35% due principally to a valuation allowance on the deferred tax asset created by the impairment charge for our investment in The HealthCentral Network, Inc. ("HealthCentral"), interest on tax contingencies and state taxes, partially offset by foreign tax credits.

At June 30, 2011 and December 31, 2010, unrecognized tax benefits, including interest, are $473.3 million and $487.6 million, respectively. Of the total unrecognized tax benefits at June 30, 2011, $460.1 million is included in "non-current income taxes payable," $12.3 million relates to deferred tax assets included in "other non-current assets" and $0.8 million is included in "accrued expenses and other current liabilities." Included in unrecognized tax benefits at June 30, 2011 is $94.9 million relating to tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. If unrecognized tax benefits at June 30, 2011 are subsequently recognized, $95.1 million and $210.7 million, net of related deferred tax assets and interest, would reduce income tax provision for continuing operations and discontinued operations, respectively. In addition, a continuing operations income tax provision of $4.3 million would be required upon the subsequent recognition of unrecognized tax benefits for an increase in the Company's valuation allowance against certain deferred tax assets.

The Company recognizes interest and, if applicable, penalties related to unrecognized tax benefits in income tax provision. Included in income tax provision for continuing operations and discontinued operations for the three months ended June 30, 2011 is a $1.5 million benefit and a $1.9 million expense, respectively, net of related deferred taxes of $1.0 million and $1.2 million, respectively, for interest on unrecognized tax benefits. Included in income tax provision for continuing operations and discontinued operations for the six months ended June 30, 2011 is a $0.6 million expense and a $3.3 million expense, respectively, net of related deferred taxes of $0.4 million and $2.1 million, respectively, for interest on unrecognized tax benefits. At June 30, 2011 and December 31, 2010, the Company has accrued $104.2 million and $97.7 million, respectively, for the payment of interest. At June 30, 2011 and December 31, 2010, the Company has accrued $4.5 million and $5.0 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 ("IRS") has completed its review of the Company's tax returns for the years ended December 31, 2001 through 2006. The settlement has not yet been submitted to the Joint Committee of Taxation for approval. The IRS began its review of the Company's tax returns for the years ended December 31, 2007 through 2009 in July 2011. The statute of limitations for the years 2001 through 2007 has currently been extended to December 31, 2012. Various state and local jurisdictions are currently under examination, the most significant of which are California, New York and New York City for various tax years beginning with 2003. 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 issues raised in audits and amounts previously provided may be material. Differences between the reserves for income tax contingencies and the amounts owed by the Company are recorded in the period they become known. The Company believes that it is reasonably possible that its unrecognized tax benefits could decrease by $57.0 million within twelve months of the current reporting date, of which approximately $10.9 million could decrease income tax provision, primarily due to settlements, expirations of statutes of limitations, and the reversal of deductible temporary differences that will primarily result in a corresponding decrease in net deferred tax assets. An estimate of other changes in unrecognized tax benefits, while potentially significant, cannot be made.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

+ Details

BUSINESS COMBINATION

6 Months Ended

Jun. 30, 2011

BUSINESS COMBINATION

BUSINESS COMBINATION

NOTE 4—BUSINESS COMBINATION

On January 20, 2011, Match acquired OkCupid for $50.0 million in cash, plus potential additional consideration of up to $40.0 million that was contingent upon OkCupid's 2011 earnings performance. During the second quarter of 2011, the provisions of this contingent consideration arrangement were amended. Pursuant to the amendment, $30.0 million was paid to the former owners, and a potential additional payment of up to $10.0 million is contingent upon revised performance goals. The fair value of the contingent consideration at June 30, 2011 is $10.0 million and is included in "Accrued expenses and other current liabilities" in the accompanying consolidated balance sheet. The Company estimated the fair value of the contingent consideration using its judgment of the likelihood of achieving the revised performance goals, which incorporates significant unobservable inputs.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Appendix F
-Paragraph F4
-Subparagraph e

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 67-73
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6911361&loc=d3e6927-128479

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6972119&loc=d3e1490-128463

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6911361&loc=d3e7008-128479

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6972119&loc=d3e1500-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4926-128472

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4922-128472

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6911361&loc=d3e6996-128479

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6972119&loc=d3e1524-128463

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6972119&loc=d3e1392-128463

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6911361&loc=d3e7000-128479

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4845-128472

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4934-128472

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6972119&loc=d3e1497-128463

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6972119&loc=d3e1486-128463

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6972119&loc=d3e1383-128463

+ Details

MARKETABLE SECURITIES

6 Months Ended

Jun. 30, 2011

MARKETABLE SECURITIES

MARKETABLE SECURITIES

NOTE 5—MARKETABLE SECURITIES

At June 30, 2011, available-for-sale marketable securities are as follows (in thousands):

			Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value

Corporate debt securities			$	116,492	$	249	$	(9	)	$	116,732
States of the U.S. and state political subdivisions				112,593		589		(42	)		113,140
U.S. Treasury securities				49,987		12		—			49,999

	Total debt securities			279,072		850		(51	)		279,871
	Equity security			7,631		1,495		—			9,126

		Total marketable securities	$	286,703	$	2,345	$	(51	)	$	288,997

At December 31, 2010, available-for-sale marketable securities are as follows (in thousands):

			Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value

Corporate debt securities			$	237,406	$	773	$	(16	)	$	238,163
States of the U.S. and state political subdivisions				110,478		373		(230	)		110,621
U.S. Treasury securities				199,881		18		—			199,899

	Total debt securities			547,765		1,164		(246	)		548,683
	Equity security			12,896		2,418		—			15,314

		Total marketable securities	$	560,661	$	3,582	$	(246	)	$	563,997

The net unrealized gains in the tables above are included in accumulated other comprehensive income for their respective periods.

The contractual maturities of debt securities classified as available-for-sale at June 30, 2011 are as follows (in thousands):

		Amortized Cost		Estimated Fair Value

Due in one year or less		$	195,082	$	195,443
Due after one year through five years			83,990		84,428

	Total	$	279,072	$	279,871

The following table summarizes investments in marketable securities that have been in a continuous unrealized loss position for less than twelve months (in thousands):

		June 30, 2011					December 31, 2010

		Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Corporate debt securities		$	12,271	$	(9	)	$	34,552	$	(16	)
States of the U.S. and state political subdivisions			6,764		(42	)		39,171		(230	)

	Total	$	19,035	$	(51	)	$	73,723	$	(246	)

At June 30, 2011 and December 31, 2010, there are no investments in marketable securities that have been in a continuous unrealized loss position for twelve months or longer.

Substantially all of the Company's debt securities are rated investment grade. Because the Company does not intend to sell any marketable securities and it is not more likely than not that the Company will be required to sell any marketable securities before recovery of their amortized cost bases, which may be maturity, the Company does not consider any of its marketable securities to be other-than-temporarily impaired at June 30, 2011.

The following table presents the proceeds from sales and maturities of available-for-sale marketable securities and the related gross realized gains and losses (in thousands):

	Three Months Ended June 30,					Six Months Ended June 30,

	2011		2010			2011			2010
	(In thousands)
Proceeds from sales and maturities of available-for-sale marketable securities	$	215,139	$	170,878		$	413,904		$	371,868
Gross realized gains		1,022		83			1,916			4,332
Gross realized losses		—		(7	)		(18	)		(7	)

Gross realized gains and losses from the sales of marketable securities and from the sales of investments are included in "Other income, net" in the accompanying consolidated statement of operations.

- Definition

Tabular disclosure of investments in certain debt and equity securities (and certain other trading assets) which include all debt and equity securities (other than those equity securities accounted for under the equity or cost methods of accounting) with readily determinable fair values. Other trading assets include assets that are carried on the balance sheet at fair value and held for trading purposes. A debt security represents a creditor relationship with an enterprise that is in the form of a security. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities (and other trading assets).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 3, 19, 20, 21, 22, 137
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27405-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27232-111563

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Debt Security
-URI http://asc.fasb.org/extlink&oid=6509901
-Topic 320

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Equity Security
-URI http://asc.fasb.org/extlink&oid=6511694
-Topic 320

+ Details

FUNDS HELD IN ESCROW FOR MEETIC TENDER OFFER

6 Months Ended

Jun. 30, 2011

FUNDS HELD IN ESCROW FOR MEETIC TENDER OFFER

FUNDS HELD IN ESCROW FOR MEETIC TENDER OFFER

NOTE 6—FUNDS HELD IN ESCROW FOR MEETIC TENDER OFFER

On July 8, 2011, IAC launched its previously announced tender offer for the 73% of Meetic that it does not own at a price per share of €15.00. The initial phase of the tender offer will close on August 29, 2011 and the second phase of the tender offer will close on September 19, 2011. In connection with the tender offer, IAC was obligated to place sufficient funds in escrow to purchase 100% of the shares that it does not own or $360.6 million. These funds are classified as a non-current asset as their expected use is to acquire a non-current asset. At the conclusion of the tender process, any unused funds will be returned to IAC.

FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2011

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

NOTE 7—FAIR VALUE MEASUREMENTS

The Company categorizes its assets and liabilities 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 that 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 value of the Company's level 2 financial assets is 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 a weighted 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 asset or liability. See below for a discussion of assets measured at fair value using level 3 inputs.

The following tables present the Company's assets and liabilities that are measured at fair value on a recurring basis:

		June 30, 2011

		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:
	Treasury and government agency money market funds	$	332,878	$	—	$	—	$	332,878
	Commercial paper		—		100,635		—		100,635
	Time deposits		—		20,650		—		20,650
Marketable securities:
	Corporate debt securities		—		116,732		—		116,732
	States of the U.S. and state political subdivisions		—		113,140		—		113,140
	U.S. Treasury securities		49,999		—		—		49,999
	Equity security		9,126		—		—		9,126
Funds held in escrow for Meetic tender offer:
	Treasury and government agency money market funds		158,305		—		—		158,305
	Commercial paper		—		202,278		—		202,278
Long-term investments:
	Auction rate security		—		—		8,680		8,680
	Marketable equity security		80,961		—		—		80,961

Total		$	631,269	$	553,435	$	8,680	$	1,193,384

Liabilities:
Contingent consideration arrangement		$	—	$	—	$	10,000	$	10,000

Total		$	—	$	—	$	10,000	$	10,000

		December 31, 2010

		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:
	Treasury and government agency money market funds	$	275,108	$	—	$	—	$	275,108
	Commercial paper		—		309,183		—		309,183
	Time deposits		—		26,050		—		26,050
Marketable securities:
	Corporate debt securities		—		238,163		—		238,163
	States of the U.S. and state political subdivisions		—		110,621		—		110,621
	U.S. Treasury securities		199,899		—		—		199,899
	Equity security		15,314		—		—		15,314
Long-term investments:
	Auction rate securities		—		—		13,100		13,100

Total		$	490,321	$	684,017	$	13,100	$	1,187,438

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

		Three Months Ended June 30,

		2011						2010
		Auction Rate Security			Contingent Consideration Arrangement			Auction Rate Securities
		(In thousands)
Balance at April 1		$	9,050		$	40,000		$	13,420
Total net losses (realized and unrealized):
	Included in other comprehensive income		(370	)		—			(2,165	)
Settlements			—			(30,000	)		—

Balance at June 30		$	8,680		$	10,000		$	11,255

		Six Months Ended June 30,

		2011						2010
		Auction Rate Securities			Contingent Consideration Arrangement			Auction Rate Securities
		(In thousands)
Balance at January 1		$	13,100		$	—		$	12,635
Total net gains (losses) (realized and unrealized):
	Included in other comprehensive income		580			—			(1,380	)
Fair value at date of acquisition			—			40,000			—
Settlements			(5,000	)		(30,000	)		—

Balance at June 30		$	8,680		$	10,000		$	11,255

There are no gains or losses included in earnings for the three and six months ended June 30, 2011 and 2010, relating to the Company's assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs.

Auction rate securities

The Company's auction rate securities ("ARS") are valued by discounting the estimated future cash flow streams of the securities over the lives of the securities. Credit spreads and other risk factors are also considered in establishing fair value. During the first quarter of 2011, one of the ARS was redeemed at its par value of $5.0 million. The cost basis of ARS is $10.0 million and $15.0 million at June 30, 2011 and December 31, 2010, respectively, with gross unrealized losses of $1.3 million and $1.9 million at June 30, 2011 and December 31, 2010, respectively. The unrealized losses are included in "Accumulated other comprehensive income" in the accompanying consolidated balance sheet. At June 30, 2011, the remaining auction rate security is rated A/WR and matures in 2035. Due to its high 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 recovery of its amortized cost basis, which may be maturity, the Company does not consider the auction rate security to be other-than-temporarily impaired at June 30, 2011.

Contingent consideration arrangement

See Note 4 for information regarding the contingent consideration arrangement.

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 measured at fair value only when an impairment charge is recognized. Such fair value measurements are based predominantly on Level 3 inputs.

During the first quarter of 2010, the Company recorded an $18.3 million impairment charge to write-down its investment in HealthCentral to fair value. The decline in value was determined to be other-than-temporary due to HealthCentral's continued losses and negative operating cash flows. The Company estimated the fair value of its investment in HealthCentral using a multiple of revenue approach. The impairment charge is included within "Equity in losses of unconsolidated affiliates" in the accompanying consolidated statement of operations.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13537-108611

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13433-108611

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13504-108611

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19296-110258

+ Details

FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2011

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS

NOTE 8—FINANCIAL INSTRUMENTS

The fair values of the financial instruments listed below have been determined by the Company using available market information and appropriate valuation methodologies.

	June 30, 2011						December 31, 2010

	Carrying Value			Fair Value			Carrying Value			Fair Value
	(In thousands)
Cash and cash equivalents	$	622,866		$	622,866		$	742,099		$	742,099
Marketable securities		288,997			288,997			563,997			563,997
Funds held in escrow for Meetic tender offer		360,583			360,583			—			—
Auction rate securities		8,680			8,680			13,100			13,100
Long-term marketable equity security		80,961			80,961			—			—
Notes receivable		3,615			2,849			3,316			2,818
Contingent consideration arrangement		(10,000	)		(10,000	)		—			—
Long-term debt		(95,844	)		(88,640	)		(95,844	)		(83,363	)
Guarantee of The Newsweek/Daily Beast Company debt		(5,000	)		(5,000	)		—			—
Letters of credit and surety bond		N/A			(232	)		N/A			(362	)

The carrying value of cash equivalents approximates fair value due to their short-term maturity. The funds held in escrow for the Meetic tender offer consist of cash and cash equivalents. The carrying value of these cash equivalents approximates fair value due to their short-term maturity. The fair value of notes receivable is based on discounting the expected future cash flow streams using yields of the underlying credit. The fair value of long-term debt is estimated using quoted market prices or indices for similar liabilities and taking into consideration other factors such as credit quality and maturity. The fair value of the letters of credit and surety bond are based on the present value of the costs associated with maintaining these instruments over their expected term. See Note 5 for discussion of the fair value of marketable securities, Note 7 for discussion of the fair value of the auction rate securities and Note 4 for discussion of the fair value of the contingent consideration arrangement.

The Company has guaranteed $5.0 million of The Newsweek/Daily Beast Company's $10.0 million line of credit. At June 30, 2011, $10.0 million had been drawn on this line of credit. The carrying value and fair value of this guarantee represents the amount the Company expects to pay to settle this obligation.

At June 30, 2011 and December 31, 2010, the carrying values of the Company's investments accounted for under the cost method totaled $6.9 million and $39.0 million, respectively, and are included in "Long-term investments" in the accompanying consolidated balance sheet. IAC's investment in The Active Network, Inc., which was previously accounted for under the cost method, became an investment measured at fair value during the second quarter of 2011. The cost basis of this long-term marketable equity security was $33.4 million at June 30, 2011, with a gross unrealized gain of $47.5 million included in "Accumulated other comprehensive income" 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.

EARNINGS (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2011

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE

NOTE 9—EARNINGS (LOSS) PER SHARE

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

	Three Months Ended June 30,

	2011						2010
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Earnings from continuing operations	$	45,630		$	45,630		$	15,421		$	15,421
Net (earnings) loss attributable to noncontrolling interests		(718	)		(718	)		756			756

Earnings from continuing operations attributable to IAC shareholders		44,912			44,912			16,177			16,177
Loss from discontinued operations, net of tax		(2,488	)		(2,488	)		(2,586	)		(2,586	)

Net earnings attributable to IAC shareholders	$	42,424		$	42,424		$	13,591		$	13,591

Denominator:
Weighted average basic shares outstanding		90,050			90,050			109,287			109,287
Dilutive securities including stock options, warrants and RSUs(a)(b)		—			7,252			—			3,320

Denominator for earnings per share—weighted average shares(a)(b)		90,050			97,302			109,287			112,607

Earnings (loss) per share attributable to IAC shareholders:
Earnings per share from continuing operations	$	0.50		$	0.46		$	0.15		$	0.14
Discontinued operations, net of tax		(0.03	)		(0.02	)		(0.03	)		(0.02	)

Earnings per share	$	0.47		$	0.44		$	0.12		$	0.12

	Six Months Ended June 30,

	2011						2010
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Earnings from continuing operations	$	65,798		$	65,798		$	824		$	824
Net (earnings) loss attributable to noncontrolling interests		(868	)		(868	)		1,375			1,375

Earnings from continuing operations attributable to IAC shareholders		64,930			64,930			2,199			2,199
Loss from discontinued operations, net of tax		(4,436	)		(4,436	)		(7,313	)		(7,313	)

Net earnings (loss) attributable to IAC shareholders	$	60,494		$	60,494		$	(5,114	)	$	(5,114	)

Denominator:
Weighted average basic shares outstanding		89,568			89,568			112,847			112,847
Dilutive securities including stock options, warrants and RSUs(a)(b)		—			5,923			—			3,394

Denominator for earnings per share—weighted average shares(a)(b)		89,568			95,491			112,847			116,241

Earnings (loss) per share attributable to IAC shareholders:
Earnings per share from continuing operations	$	0.72		$	0.68		$	0.02		$	0.02
Discontinued operations, net of tax		(0.04	)		(0.05	)		(0.07	)		(0.06	)

Earnings (loss) per share	$	0.68		$	0.63		$	(0.05	)	$	(0.04	)

(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 warrants and vesting of restricted stock units ("RSUs"). For the three and six months ended June 30, 2011, approximately 1.2 million and 1.3 million shares, respectively, related to potentially dilutive securities are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. For the three and six months ended June 30, 2010, approximately 22.1 million and 22.6 million shares, respectively, related to potentially dilutive securities are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.
(b): There are no performance-based stock units ("PSUs") included in the denominator for earnings per share as the performance conditions have not been met for the respective reporting periods. For the three and six months ended June 30, 2011, approximately 3.3 million PSUs are excluded from the calculation of diluted earnings per share. For the three and six months ended June 30, 2010, approximately 1.9 million PSUs are excluded from the calculation of diluted earnings per share.

SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2011

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 10—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 and executive management view 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. Entities included in discontinued operations are excluded from the tables below. 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 Media & Other, do not meet the quantitative thresholds that require presentation as separate operating segments.

		Three Months Ended June 30,						Six Months Ended June 30,

		2011			2010			2011			2010
		(In thousands)
Revenue:
	Search	$	252,436		$	197,194		$	501,040		$	396,155
	Match		116,429			96,961			228,026			186,236
	ServiceMagic		56,104			49,519			102,397			91,731
	Media & Other		60,767			51,014			115,047			99,129
	Inter-segment elimination		(332	)		(444	)		(893	)		(829	)

	Total	$	485,404		$	394,244		$	945,617		$	772,422

		Three Months Ended June 30,						Six Months Ended June 30,

		2011			2010			2011			2010
		(In thousands)
Operating Income (Loss):
	Search	$	50,309		$	31,617		$	99,397		$	62,674
	Match		40,999			25,490			64,428			39,192
	ServiceMagic		8,239			5,748			12,047			8,144
	Media & Other		(3,239	)		(3,026	)		(6,963	)		(6,838	)
	Corporate		(38,077	)		(35,196	)		(73,342	)		(69,614	)

	Total	$	58,231		$	24,633		$	95,567		$	33,558

		Three Months Ended June 30,						Six Months Ended June 30,

		2011			2010			2011			2010
		(In thousands)
Operating Income Before Amortization:
	Search	$	50,568		$	32,043		$	99,954		$	63,584
	Match		42,335			29,104			67,323			43,910
	ServiceMagic		8,622			6,125			12,799			8,984
	Media & Other		(3,137	)		(2,618	)		(6,503	)		(5,014	)
	Corporate		(14,950	)		(14,217	)		(30,181	)		(27,383	)

	Total	$	83,438		$	50,437		$	143,392		$	84,081

		Three Months Ended June 30,				Six Months Ended June 30,

		2011		2010		2011		2010
		(In thousands)
Depreciation:
	Search	$	6,367	$	9,952	$	13,348	$	19,015
	Match		2,278		2,878		4,578		5,906
	ServiceMagic		1,114		1,078		2,184		1,996
	Media & Other		618		566		1,427		1,106
	Corporate		2,073		2,151		4,352		4,395

	Total	$	12,450	$	16,625	$	25,889	$	32,418

Revenue by geography is based on where the customer is located. Geographic information about the United States and international territories is presented below:

		Three Months Ended June 30,				Six Months Ended June 30,

		2011		2010		2010		2010
		(In thousands)
Revenue:
	United States	$	384,835	$	330,229	$	757,497	$	644,671
	All other countries		100,569		64,015		188,120		127,751

	Total	$	485,404	$	394,244	$	945,617	$	772,422

		June 30, 2011		December 31, 2010

		(In thousands)
Long-lived assets (excluding goodwill and intangible assets):
	United States	$	259,862	$	267,060
	All other countries		1,256		868

	Total	$	261,118	$	267,928

The Company's primary metric is Operating Income Before Amortization, which is defined as operating income excluding, if applicable: (1) non-cash compensation expense, (2) amortization and impairment of intangibles, (3) goodwill impairment, (4) pro forma adjustments for significant acquisitions, and (5) one-time items. The Company believes this measure is useful to investors because it represents the operating results from IAC's segments, taking into account depreciation, which it believes is an ongoing cost of doing business, but excluding the effects of any other non-cash expenses. Operating Income Before Amortization has certain limitations in that it does not take into account the impact to IAC's statement of operations of certain expenses, including non-cash compensation and acquisition related accounting. IAC endeavors to compensate for the limitations of the non-U.S. GAAP measure presented by providing the comparable U.S. GAAP measure with equal or greater prominence, financial statements prepared in accordance with U.S. GAAP, and descriptions of the reconciling items, including quantifying such items, to derive the non-U.S. GAAP measure.

The following tables reconcile Operating Income Before Amortization to operating income (loss) for the Company's reportable segments and to net earnings (loss) attributable to IAC shareholders in total (in thousands):

		Three Months Ended June 30, 2011

		Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Operating Income (Loss)
Search		$	50,568		$	—		$	(259	)	$	50,309
Match			42,335			—			(1,336	)		40,999
ServiceMagic			8,622			—			(383	)		8,239
Media & Other			(3,137	)		120			(222	)		(3,239	)
Corporate			(14,950	)		(23,127	)		—			(38,077	)

	Total	$	83,438		$	(23,007	)	$	(2,200	)		58,231

Equity in losses of unconsolidated affiliates												(8,720	)
Other income, net												5,637

Earnings from continuing operations before income taxes												55,148
Income tax provision												(9,518	)

Earnings from continuing operations												45,630
Loss from discontinued operations, net of tax												(2,488	)

Net earnings												43,142
Net earnings attributable to noncontrolling interests												(718	)

Net earnings attributable to IAC shareholders											$	42,424

		Three Months Ended June 30, 2010

		Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Operating Income (Loss)
Search		$	32,043		$	(89	)	$	(337	)	$	31,617
Match			29,104			179			(3,793	)		25,490
ServiceMagic			6,125			—			(377	)		5,748
Media & Other			(2,618	)		(159	)		(249	)		(3,026	)
Corporate			(14,217	)		(20,979	)		—			(35,196	)

	Total	$	50,437		$	(21,048	)	$	(4,756	)		24,633

Equity in losses of unconsolidated affiliates												(4,002	)
Other income, net												103

Earnings from continuing operations before income taxes												20,734
Income tax provision												(5,313	)

Earnings from continuing operations												15,421
Loss from discontinued operations, net of tax												(2,586	)

Net earnings												12,835
Net loss attributable to noncontrolling interests												756

Net earnings attributable to IAC shareholders											$	13,591

		Six Months Ended June 30, 2011

		Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Operating Income (Loss)
Search		$	99,954		$	—		$	(557	)	$	99,397
Match			67,323			—			(2,895	)		64,428
ServiceMagic			12,799			—			(752	)		12,047
Media & Other			(6,503	)		(7	)		(453	)		(6,963	)
Corporate			(30,181	)		(43,161	)		—			(73,342	)

	Total	$	143,392		$	(43,168	)	$	(4,657	)		95,567

Equity in losses of unconsolidated affiliates												(10,599	)
Other income, net												6,389

Earnings from continuing operations before income taxes												91,357
Income tax provision												(25,559	)

Earnings from continuing operations												65,798
Loss from discontinued operations, net of tax												(4,436	)

Net earnings												61,362
Net earnings attributable to noncontrolling interests												(868	)

Net earnings attributable to IAC shareholders											$	60,494

		Six Months Ended June 30, 2010

		Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Operating Income (Loss)
Search		$	63,584		$	(236	)	$	(674	)	$	62,674
Match			43,910			153			(4,871	)		39,192
ServiceMagic			8,984			—			(840	)		8,144
Media & Other			(5,014	)		(279	)		(1,545	)		(6,838	)
Corporate			(27,383	)		(42,231	)		—			(69,614	)

	Total	$	84,081		$	(42,593	)	$	(7,930	)		33,558

Equity in losses of unconsolidated affiliates												(26,615	)
Other income, net												5,339

Earnings from continuing operations before income taxes												12,282
Income tax provision												(11,458	)

Earnings from continuing operations												824
Loss from discontinued operations, net of tax												(7,313	)

Net loss												(6,489	)
Net loss attributable to noncontrolling interests												1,375

Net loss attributable to IAC shareholders											$	(5,114	)

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

+ Details

CONTINGENCIES

6 Months Ended

Jun. 30, 2011

CONTINGENCIES

CONTINGENCIES

NOTE 11—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 tax contingencies, to assess the probability 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 3 for additional information related to income tax contingencies.

- Definition

The entire disclosure for loss and gain contingencies. Describes any existing condition, situation, or set of circumstances involving uncertainty as of the balance sheet date (or prior to issuance of the financial statements) as to a probable or reasonably possible loss incurred by an entity that will ultimately be resolved when one or more future events occur or fail to occur, and typically discloses the amount of loss recorded or a range of possible loss, or an assertion that no reasonable estimate can be made.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14326-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14472-108349

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14394-108349

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14453-108349

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6851643&loc=d3e12021-110248

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6851643&loc=d3e12053-110248

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14557-108349

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14615-108349

+ Details

SUPPLEMENTAL CASH FLOW INFORMATION

6 Months Ended

Jun. 30, 2011

SUPPLEMENTAL CASH FLOW INFORMATION

SUPPLEMENTAL CASH FLOW INFORMATION

NOTE 12—SUPPLEMENTAL CASH FLOW INFORMATION

During 2010, IAC received a dividend from Meetic, which the Company deemed to be a partial return of its investment. Accordingly, the dividend is reflected as a cash flow from an investing activity in the accompanying consolidated statement of cash flows. IAC's share of the dividend was $11.4 million in total. IAC received $8.8 million of the dividend in June 2010 and the balance in July 2010.

Non-Cash Transactions for the Six Months Ended June 30, 2011

On February 8, 2011, in connection with the tax-free exchange with Liberty Media Corporation in the fourth quarter of 2010, the Company received 0.1 million shares of IAC common stock, valued at $2.9 million, in fulfillment of post-closing working capital adjustments.

On January 31, 2011, IAC contributed The Daily Beast, previously reported in IAC's Media & Other segment, to a newly formed venture with Harman Newsweek called The Newsweek/Daily Beast Company. Pursuant to this transaction, IAC and Harman Newsweek operate The Newsweek/Daily Beast Company jointly. IAC accounts for its interest in The Newsweek/Daily Beast Company under the equity method.

The consideration for the acquisition of OkCupid on January 20, 2011 includes a contingent consideration arrangement which is described in Note 4.

Non-Cash Transactions for the Six Months Ended June 30, 2010

On March 10, 2010, Match and Meetic completed a transaction in which Match contributed its Latin American business ("Match Latam") and Meetic contributed its Latin American business ("Parperfeito") to a newly formed venture. These contributions, along with a $3.0 million payment from Match to Meetic, resulted in each party owning a 50% equity interest in the newly formed venture, which was valued at $72 million. Match controls the venture through its voting interests. Accordingly, this transaction was accounted for as an acquisition of Parperfeito and a decrease in ownership of Match Latam. No gain or loss was recognized on this transaction as the fair value of the consideration received by Match equaled the fair value of the assets exchanged.

SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2011

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 13—SUBSEQUENT EVENTS

Between July 1, 2011 and July 22, 2011, IAC repurchased 2.4 million shares of common stock for aggregate consideration of $89.9 million.

On July 26, 2011, IAC's Board of Directors authorized the repurchase of up to 15 million shares of its outstanding common stock.

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2011

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Accounting Estimates

CONSOLIDATED FINANCIAL STATEMENT DETAILS (Tables)

6 Months Ended

Jun. 30, 2011

CONSOLIDATED FINANCIAL STATEMENT DETAILS

Schedule of property and equipment, net

		June 30, 2011			December 31, 2010

		(In thousands)
Buildings and leasehold improvements		$	234,606		$	234,328
Computer equipment and capitalized software			191,260			183,055
Furniture and other equipment			41,568			41,930
Projects in progress			6,116			2,944
Land			5,117			5,117

			478,667			467,374
Less: accumulated depreciation and amortization			(217,549	)		(199,446	)

	Property and equipment, net	$	261,118		$	267,928

Schedule of redeemable noncontrolling interests

		June 30, 2011			December 31, 2010

		(In thousands)
Balance at January 1		$	59,869		$	28,180
Purchase of non-controlling interests			(5,652	)		—
Noncontrolling interests related to acquisitions			—			23,583
Noncontrolling interest created by a decrease in the ownership of a subsidiary			—			15,750
Contribution from owners of noncontrolling interests			80			79
Net earnings (loss) attributable to noncontrolling interests			868			(5,007	)
Change in fair value of redeemable noncontrolling interests			1,389			(2,059	)
Change in foreign currency translation adjustment			126			(267	)
Other			(198	)		(390	)

	Balance at end of period	$	56,482		$	59,869

Schedule of accumulated other comprehensive income

		June 30, 2011		December 31, 2010

		(In thousands)
Foreign currency translation adjustment, net of tax		$	25,889	$	16,027
Unrealized gains on available-for-sale securities, net of tax			36,335		1,519

	Accumulated other comprehensive income, net of tax	$	62,224	$	17,546

Schedule of other income (expense), net

		Three Months Ended June 30,						Six Months Ended June 30,

		2011			2010			2011			2010
		(In thousands)
Interest income		$	1,150		$	1,666		$	2,452		$	3,301
Interest expense			(1,355	)		(1,323	)		(2,710	)		(2,646	)
Gain on sales of investments			698			—			1,544			3,989
Non-income tax refunds related to Match Europe, which was sold in 2009			4,630			—			4,630			—
Other			514			(240	)		473			695

	Other income, net	$	5,637		$	103		$	6,389		$	5,339

Schedule of comprehensive income (loss)

		Three Months Ended June 30,					Six Months Ended June 30,

		2011		2010			2011		2010
		(In thousands)
Net earnings (loss) attributable to IAC shareholders		$	42,424	$	13,591		$	60,494	$	(5,114	)

Change in foreign currency translation adjustment, net of tax			8,934		(8,990	)		9,862		(13,663	)
Change in net unrealized gains (losses) on available-for-sale securities, net of tax			32,447		(2,533	)		34,816		(7,742	)

Other comprehensive income (loss)			41,381		(11,523	)		44,678		(21,405	)

	Comprehensive income (loss)	$	83,805	$	2,068		$	105,172	$	(26,519	)

- Definition

Tabular disclosure of redeemable noncontrolling interest (as defined) included in the statement of financial position as either a liability or temporary equity. As of the date of the statement of financial position, such redeemable noncontrolling interest is currently redeemable, as defined, for cash or other assets of the entity at (1) at a fixed or determinable price on a fixed or determinable date, (2) at the option of the holder of the noncontrolling interest, or (3) upon occurrence of an event that is not solely within the control of the entity.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number D-98
-Paragraph 40
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number D-98
-Paragraph 41
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number D-98
-Paragraph 42
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number D-98
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number D-98
-Paragraph 44
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 25
-Appendix A

+ Details

MARKETABLE SECURITIES (Tables)

6 Months Ended

Jun. 30, 2011

MARKETABLE SECURITIES

Schedule of available-for-sale marketable securities

At June 30, 2011, available-for-sale marketable securities are as follows (in thousands):

			Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value

Corporate debt securities			$	116,492	$	249	$	(9	)	$	116,732
States of the U.S. and state political subdivisions				112,593		589		(42	)		113,140
U.S. Treasury securities				49,987		12		—			49,999

	Total debt securities			279,072		850		(51	)		279,871
	Equity security			7,631		1,495		—			9,126

		Total marketable securities	$	286,703	$	2,345	$	(51	)	$	288,997

At December 31, 2010, available-for-sale marketable securities are as follows (in thousands):

			Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value

Corporate debt securities			$	237,406	$	773	$	(16	)	$	238,163
States of the U.S. and state political subdivisions				110,478		373		(230	)		110,621
U.S. Treasury securities				199,881		18		—			199,899

	Total debt securities			547,765		1,164		(246	)		548,683
	Equity security			12,896		2,418		—			15,314

		Total marketable securities	$	560,661	$	3,582	$	(246	)	$	563,997

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

The contractual maturities of debt securities classified as available-for-sale at June 30, 2011 are as follows (in thousands):

		Amortized Cost		Estimated Fair Value

Due in one year or less		$	195,082	$	195,443
Due after one year through five years			83,990		84,428

	Total	$	279,072	$	279,871

Summary of investments with continuous unrealized loss position

		June 30, 2011					December 31, 2010

		Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Corporate debt securities		$	12,271	$	(9	)	$	34,552	$	(16	)
States of the U.S. and state political subdivisions			6,764		(42	)		39,171		(230	)

	Total	$	19,035	$	(51	)	$	73,723	$	(246	)

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

	Three Months Ended June 30,					Six Months Ended June 30,

	2011		2010			2011			2010
	(In thousands)
Proceeds from sales and maturities of available-for-sale marketable securities	$	215,139	$	170,878		$	413,904		$	371,868
Gross realized gains		1,022		83			1,916			4,332
Gross realized losses		—		(7	)		(18	)		(7	)

- Definition

Tabular disclosure of available-for-sale securities which consist of all investments in certain debt and equity securities neither classified as trading or held-to-maturity securities. A debt security represents a creditor relationship with an enterprise. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-1
-Paragraph 21
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 17
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 19, 20, 21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27337-111563

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27198-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62586-112803

+ Details

FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2011

FAIR VALUE MEASUREMENTS

Schedule of assets and liabilities measured at fair value on a recurring basis

		June 30, 2011

		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:
	Treasury and government agency money market funds	$	332,878	$	—	$	—	$	332,878
	Commercial paper		—		100,635		—		100,635
	Time deposits		—		20,650		—		20,650
Marketable securities:
	Corporate debt securities		—		116,732		—		116,732
	States of the U.S. and state political subdivisions		—		113,140		—		113,140
	U.S. Treasury securities		49,999		—		—		49,999
	Equity security		9,126		—		—		9,126
Funds held in escrow for Meetic tender offer:
	Treasury and government agency money market funds		158,305		—		—		158,305
	Commercial paper		—		202,278		—		202,278
Long-term investments:
	Auction rate security		—		—		8,680		8,680
	Marketable equity security		80,961		—		—		80,961

Total		$	631,269	$	553,435	$	8,680	$	1,193,384

Liabilities:
Contingent consideration arrangement		$	—	$	—	$	10,000	$	10,000

Total		$	—	$	—	$	10,000	$	10,000

		December 31, 2010

		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:
	Treasury and government agency money market funds	$	275,108	$	—	$	—	$	275,108
	Commercial paper		—		309,183		—		309,183
	Time deposits		—		26,050		—		26,050
Marketable securities:
	Corporate debt securities		—		238,163		—		238,163
	States of the U.S. and state political subdivisions		—		110,621		—		110,621
	U.S. Treasury securities		199,899		—		—		199,899
	Equity security		15,314		—		—		15,314
Long-term investments:
	Auction rate securities		—		—		13,100		13,100

Total		$	490,321	$	684,017	$	13,100	$	1,187,438

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

		Three Months Ended June 30,

		2011						2010
		Auction Rate Security			Contingent Consideration Arrangement			Auction Rate Securities
		(In thousands)
Balance at April 1		$	9,050		$	40,000		$	13,420
Total net losses (realized and unrealized):
	Included in other comprehensive income		(370	)		—			(2,165	)
Settlements			—			(30,000	)		—

Balance at June 30		$	8,680		$	10,000		$	11,255

		Six Months Ended June 30,

		2011						2010
		Auction Rate Securities			Contingent Consideration Arrangement			Auction Rate Securities
		(In thousands)
Balance at January 1		$	13,100		$	—		$	12,635
Total net gains (losses) (realized and unrealized):
	Included in other comprehensive income		580			—			(1,380	)
Fair value at date of acquisition			—			40,000			—
Settlements			(5,000	)		(30,000	)		—

Balance at June 30		$	8,680		$	10,000		$	11,255

FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2011

FINANCIAL INSTRUMENTS

Schedule of fair values of the financial instruments

	June 30, 2011						December 31, 2010

	Carrying Value			Fair Value			Carrying Value			Fair Value
	(In thousands)
Cash and cash equivalents	$	622,866		$	622,866		$	742,099		$	742,099
Marketable securities		288,997			288,997			563,997			563,997
Funds held in escrow for Meetic tender offer		360,583			360,583			—			—
Auction rate securities		8,680			8,680			13,100			13,100
Long-term marketable equity security		80,961			80,961			—			—
Notes receivable		3,615			2,849			3,316			2,818
Contingent consideration arrangement		(10,000	)		(10,000	)		—			—
Long-term debt		(95,844	)		(88,640	)		(95,844	)		(83,363	)
Guarantee of The Newsweek/Daily Beast Company debt		(5,000	)		(5,000	)		—			—
Letters of credit and surety bond		N/A			(232	)		N/A			(362	)

- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 14
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15
-Subparagraph b-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32
-Subparagraph a, c(1), c(2), c(3), d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 18
-Subparagraph c(2), d, e, f
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 19
-Subparagraph a, b, c(1), d(1)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13433-108611

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13467-108611

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13476-108611

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610

+ Details

EARNINGS (LOSS) PER SHARE (Tables)

6 Months Ended

Jun. 30, 2011

EARNINGS (LOSS) PER SHARE

Computation of basic and diluted earnings (loss) per share

	Three Months Ended June 30,

	2011						2010
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Earnings from continuing operations	$	45,630		$	45,630		$	15,421		$	15,421
Net (earnings) loss attributable to noncontrolling interests		(718	)		(718	)		756			756

Earnings from continuing operations attributable to IAC shareholders		44,912			44,912			16,177			16,177
Loss from discontinued operations, net of tax		(2,488	)		(2,488	)		(2,586	)		(2,586	)

Net earnings attributable to IAC shareholders	$	42,424		$	42,424		$	13,591		$	13,591

Denominator:
Weighted average basic shares outstanding		90,050			90,050			109,287			109,287
Dilutive securities including stock options, warrants and RSUs(a)(b)		—			7,252			—			3,320

Denominator for earnings per share—weighted average shares(a)(b)		90,050			97,302			109,287			112,607

Earnings (loss) per share attributable to IAC shareholders:
Earnings per share from continuing operations	$	0.50		$	0.46		$	0.15		$	0.14
Discontinued operations, net of tax		(0.03	)		(0.02	)		(0.03	)		(0.02	)

Earnings per share	$	0.47		$	0.44		$	0.12		$	0.12

	Six Months Ended June 30,

	2011						2010
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Earnings from continuing operations	$	65,798		$	65,798		$	824		$	824
Net (earnings) loss attributable to noncontrolling interests		(868	)		(868	)		1,375			1,375

Earnings from continuing operations attributable to IAC shareholders		64,930			64,930			2,199			2,199
Loss from discontinued operations, net of tax		(4,436	)		(4,436	)		(7,313	)		(7,313	)

Net earnings (loss) attributable to IAC shareholders	$	60,494		$	60,494		$	(5,114	)	$	(5,114	)

Denominator:
Weighted average basic shares outstanding		89,568			89,568			112,847			112,847
Dilutive securities including stock options, warrants and RSUs(a)(b)		—			5,923			—			3,394

Denominator for earnings per share—weighted average shares(a)(b)		89,568			95,491			112,847			116,241

Earnings (loss) per share attributable to IAC shareholders:
Earnings per share from continuing operations	$	0.72		$	0.68		$	0.02		$	0.02
Discontinued operations, net of tax		(0.04	)		(0.05	)		(0.07	)		(0.06	)

Earnings (loss) per share	$	0.68		$	0.63		$	(0.05	)	$	(0.04	)

(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 warrants and vesting of restricted stock units ("RSUs"). For the three and six months ended June 30, 2011, approximately 1.2 million and 1.3 million shares, respectively, related to potentially dilutive securities are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. For the three and six months ended June 30, 2010, approximately 22.1 million and 22.6 million shares, respectively, related to potentially dilutive securities are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.
(b): There are no performance-based stock units ("PSUs") included in the denominator for earnings per share as the performance conditions have not been met for the respective reporting periods. For the three and six months ended June 30, 2011, approximately 3.3 million PSUs are excluded from the calculation of diluted earnings per share. For the three and six months ended June 30, 2010, approximately 1.9 million PSUs are excluded from the calculation of diluted earnings per share.

SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2011

SEGMENT INFORMATION

Schedule of reconciliation of revenues from segments to consolidated

		Three Months Ended June 30,						Six Months Ended June 30,

		2011			2010			2011			2010
		(In thousands)
Revenue:
	Search	$	252,436		$	197,194		$	501,040		$	396,155
	Match		116,429			96,961			228,026			186,236
	ServiceMagic		56,104			49,519			102,397			91,731
	Media & Other		60,767			51,014			115,047			99,129
	Inter-segment elimination		(332	)		(444	)		(893	)		(829	)

	Total	$	485,404		$	394,244		$	945,617		$	772,422

Schedule of reconciliation of operating income from segments to consolidated

		Three Months Ended June 30,						Six Months Ended June 30,

		2011			2010			2011			2010
		(In thousands)
Operating Income (Loss):
	Search	$	50,309		$	31,617		$	99,397		$	62,674
	Match		40,999			25,490			64,428			39,192
	ServiceMagic		8,239			5,748			12,047			8,144
	Media & Other		(3,239	)		(3,026	)		(6,963	)		(6,838	)
	Corporate		(38,077	)		(35,196	)		(73,342	)		(69,614	)

	Total	$	58,231		$	24,633		$	95,567		$	33,558

Schedule of reconciliation of Operating Income Before Amortization from segments to consolidated

		Three Months Ended June 30,						Six Months Ended June 30,

		2011			2010			2011			2010
		(In thousands)
Operating Income Before Amortization:
	Search	$	50,568		$	32,043		$	99,954		$	63,584
	Match		42,335			29,104			67,323			43,910
	ServiceMagic		8,622			6,125			12,799			8,984
	Media & Other		(3,137	)		(2,618	)		(6,503	)		(5,014	)
	Corporate		(14,950	)		(14,217	)		(30,181	)		(27,383	)

	Total	$	83,438		$	50,437		$	143,392		$	84,081

Schedule of reconciliation of depreciation from segments to consolidated

		Three Months Ended June 30,				Six Months Ended June 30,

		2011		2010		2011		2010
		(In thousands)
Depreciation:
	Search	$	6,367	$	9,952	$	13,348	$	19,015
	Match		2,278		2,878		4,578		5,906
	ServiceMagic		1,114		1,078		2,184		1,996
	Media & Other		618		566		1,427		1,106
	Corporate		2,073		2,151		4,352		4,395

	Total	$	12,450	$	16,625	$	25,889	$	32,418

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

		Three Months Ended June 30,				Six Months Ended June 30,

		2011		2010		2010		2010
		(In thousands)
Revenue:
	United States	$	384,835	$	330,229	$	757,497	$	644,671
	All other countries		100,569		64,015		188,120		127,751

	Total	$	485,404	$	394,244	$	945,617	$	772,422

		June 30, 2011		December 31, 2010

		(In thousands)
Long-lived assets (excluding goodwill and intangible assets):
	United States	$	259,862	$	267,060
	All other countries		1,256		868

	Total	$	261,118	$	267,928

Schedule of reconciliation of Operating Income Before Amortization to operating income (loss) for the entity's reportable segments and to consolidated net earnings (loss) attributable to shareholders

		Three Months Ended June 30, 2011

		Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Operating Income (Loss)
Search		$	50,568		$	—		$	(259	)	$	50,309
Match			42,335			—			(1,336	)		40,999
ServiceMagic			8,622			—			(383	)		8,239
Media & Other			(3,137	)		120			(222	)		(3,239	)
Corporate			(14,950	)		(23,127	)		—			(38,077	)

	Total	$	83,438		$	(23,007	)	$	(2,200	)		58,231

Equity in losses of unconsolidated affiliates												(8,720	)
Other income, net												5,637

Earnings from continuing operations before income taxes												55,148
Income tax provision												(9,518	)

Earnings from continuing operations												45,630
Loss from discontinued operations, net of tax												(2,488	)

Net earnings												43,142
Net earnings attributable to noncontrolling interests												(718	)

Net earnings attributable to IAC shareholders											$	42,424

		Three Months Ended June 30, 2010

		Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Operating Income (Loss)
Search		$	32,043		$	(89	)	$	(337	)	$	31,617
Match			29,104			179			(3,793	)		25,490
ServiceMagic			6,125			—			(377	)		5,748
Media & Other			(2,618	)		(159	)		(249	)		(3,026	)
Corporate			(14,217	)		(20,979	)		—			(35,196	)

	Total	$	50,437		$	(21,048	)	$	(4,756	)		24,633

Equity in losses of unconsolidated affiliates												(4,002	)
Other income, net												103

Earnings from continuing operations before income taxes												20,734
Income tax provision												(5,313	)

Earnings from continuing operations												15,421
Loss from discontinued operations, net of tax												(2,586	)

Net earnings												12,835
Net loss attributable to noncontrolling interests												756

Net earnings attributable to IAC shareholders											$	13,591

		Six Months Ended June 30, 2011

		Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Operating Income (Loss)
Search		$	99,954		$	—		$	(557	)	$	99,397
Match			67,323			—			(2,895	)		64,428
ServiceMagic			12,799			—			(752	)		12,047
Media & Other			(6,503	)		(7	)		(453	)		(6,963	)
Corporate			(30,181	)		(43,161	)		—			(73,342	)

	Total	$	143,392		$	(43,168	)	$	(4,657	)		95,567

Equity in losses of unconsolidated affiliates												(10,599	)
Other income, net												6,389

Earnings from continuing operations before income taxes												91,357
Income tax provision												(25,559	)

Earnings from continuing operations												65,798
Loss from discontinued operations, net of tax												(4,436	)

Net earnings												61,362
Net earnings attributable to noncontrolling interests												(868	)

Net earnings attributable to IAC shareholders											$	60,494

		Six Months Ended June 30, 2010

		Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Operating Income (Loss)
Search		$	63,584		$	(236	)	$	(674	)	$	62,674
Match			43,910			153			(4,871	)		39,192
ServiceMagic			8,984			—			(840	)		8,144
Media & Other			(5,014	)		(279	)		(1,545	)		(6,838	)
Corporate			(27,383	)		(42,231	)		—			(69,614	)

	Total	$	84,081		$	(42,593	)	$	(7,930	)		33,558

Equity in losses of unconsolidated affiliates												(26,615	)
Other income, net												5,339

Earnings from continuing operations before income taxes												12,282
Income tax provision												(11,458	)

Earnings from continuing operations												824
Loss from discontinued operations, net of tax												(7,313	)

Net loss												(6,489	)
Net loss attributable to noncontrolling interests												1,375

Net loss attributable to IAC shareholders											$	(5,114	)

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2011 USD ($)	Jun. 30, 2010 USD ($)	Jun. 30, 2011 USD ($)	Jun. 30, 2010 USD ($)	Dec. 31, 2010 USD ($)
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Minimum number of brands owned by company			50
Minimum number of countries where company has consumer audiences			30
Number of variable interest entities in which entity is primary beneficiary			1
Revenue from major customers
Accounts receivable	$ 126,887		$ 126,887		$ 119,581
Google Inc.
Revenue from major customers
Revenue earned	221,300	$ 174,100	436,200	$ 345,700
Accounts receivable	$ 75,300		$ 75,300		$ 70,500

CONSOLIDATED FINANCIAL STATEMENT DETAILS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010	Dec. 31, 2010
Property and equipment
Property and equipment, gross	$ 478,667		$ 478,667		$ 467,374
Less: accumulated depreciation and amortization	(217,549)		(217,549)		(199,446)
Property and equipment, net	261,118		261,118		267,928
Redeemable noncontrolling interests
Balance at the beginning of the period			59,869	$ 28,180	28,180
Purchase of non-controlling interests			(5,652)
Noncontrolling interests related to acquisitions					23,583
Noncontrolling interest created by a decrease in the ownership of a subsidiary					15,750
Contribution from owners of noncontrolling interests			80		79
Net earnings (loss) attributable to noncontrolling interests			868		(5,007)
Change in fair value of redeemable noncontrolling interests			1,389		(2,059)
Change in foreign currency translation adjustment			126		(267)
Other			(198)		(390)
Balance at the end of the period	56,482		56,482		59,869
Accumulated other comprehensive income
Foreign currency translation adjustment, net of tax	25,889		25,889		16,027
Unrealized gains on available-for-sale securities, net of tax	36,335		36,335		1,519
Accumulated other comprehensive income, net of tax	62,224		62,224		17,546
Other income (expense), net
Interest income	1,150	$ 1,666	2,452	3,301
Interest expense	(1,355)	(1,323)	(2,710)	(2,646)
Gain on sales of investments	698		1,544	3,989
Non-income tax refunds related to Match Europe, which was sold in 2009	4,630		4,630
Other	514	(240)	473	695
Other income, net	5,637	103	6,389	5,339
Comprehensive income (loss)
Net earnings (loss) attributable to IAC shareholders	42,424	13,591	60,494	(5,114)
Change in foreign currency translation adjustment, net	8,934	(8,990)	9,862	(13,663)
Change in net unrealized gains (losses) on available-for-sale securities, net of tax	32,447	(2,533)	34,816	(7,742)
Other comprehensive income (loss)	41,381	(11,523)	44,678	(21,405)
Comprehensive income (loss)	83,805	2,068	105,172	(26,519)
Unrealized gains, net of tax, reclassified out of accumulated other comprehensive income into earnings	1,300	$ 100	1,400	$ 2,700
Buildings and leasehold improvements
Property and equipment
Property and equipment, gross	234,606		234,606		234,328
Computer equipment and capitalized software
Property and equipment
Property and equipment, gross	191,260		191,260		183,055
Furniture and other equipment
Property and equipment
Property and equipment, gross	41,568		41,568		41,930
Projects in progress
Property and equipment
Property and equipment, gross	6,116		6,116		2,944
Land
Property and equipment
Property and equipment, gross	$ 5,117		$ 5,117		$ 5,117

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010	Dec. 31, 2010
INCOME TAXES
Income tax benefit due to lower estimated annual effective tax rate	$ 700
Provision for tax on income from continuing operations	$ 9,518	$ 5,313	$ 25,559	$ 11,458
Effective tax rate (as a percent)	17.00%	26.00%	28.00%	93.00%
Federal statutory rate (as a percent)	35.00%	35.00%	35.00%	35.00%
Total unrecognized tax benefits including interest	$ 473,300		$ 473,300		$ 487,600
Portion of unrecognized tax benefits included in non-current income taxes payable	460,100		460,100
Portion of unrecognized tax benefits related to deferred tax assets included in other non-current assets	12,300		12,300
Portion of unrecognized tax benefits included in accrued expenses and other current liabilities	800		800
Unrecognized tax benefits, tax positions for which the ultimate deductibility is highly certain but timing is uncertain	94,900		94,900
Unrecognized tax benefit, if recognized would reduce income tax provision for continuing operations	95,100		95,100
Unrecognized tax benefit, if recognized would reduce income tax provision for discontinued operations	210,700		210,700
Income tax provision for continuing operations upon the subsequent recognition of unrecognized tax benefits	4,300		4,300
Interest expense related to unrecognized tax benefits from continuing operations	1,500		600
Interest expense related to unrecognized tax benefits from discontinued operations	1,900		3,300
Deferred taxes related to interest on unrecognized tax benefits from continuing operations	1,000		400
Deferred taxes related to interest on unrecognized tax benefits from discontinued operations	1,200		2,100
Accrued interest on unrecognized tax benefits	104,200		104,200		97,700
Accrued penalties on unrecognized tax benefits	4,500		4,500		$ 5,000
Reasonably possible decrease in unrecognized tax benefits within next twelve months	57,000		57,000
Reasonably possible decrease in income tax provision within next twelve months	$ 10,900		$ 10,900

BUSINESS COMBINATION (Details) - OkCupid - Match - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2011	Jan. 20, 2011
Business Combination
Purchase consideration paid in cash		$ 50.0
Maximum additional contingent payment		$ 40.0
Payment to the former owner	$ 30.0
Potential additional payment to the former owner	10.0
Fair value of contingent consideration arrangement	$ 10.0

MARKETABLE SECURITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2011	Dec. 31, 2010
Available-for-sale marketable securities
Amortized Cost	$ 286,703	$ 560,661
Gross Unrealized Gains	2,345	3,582
Gross Unrealized Losses	(51)	(246)
Estimated Fair Value	288,997	563,997
Contractual maturities of debt securities classified as available-for-sale
Due in one year or less, Amortized Cost	195,082
Due after one year through five years, Amortized Cost	83,990
Total, Amortized Cost	279,072
Due in one year or less, Estimated Fair Value	195,443
Due after one year through five years, Estimated Fair Value	84,428
Total, Estimated Fair Value	279,871
Total debt securities
Available-for-sale marketable securities
Amortized Cost	279,072	547,765
Gross Unrealized Gains	850	1,164
Gross Unrealized Losses	(51)	(246)
Estimated Fair Value	279,871	548,683
Corporate debt securities
Available-for-sale marketable securities
Amortized Cost	116,492	237,406
Gross Unrealized Gains	249	773
Gross Unrealized Losses	(9)	(16)
Estimated Fair Value	116,732	238,163
States of the U.S. and state political subdivisions
Available-for-sale marketable securities
Amortized Cost	112,593	110,478
Gross Unrealized Gains	589	373
Gross Unrealized Losses	(42)	(230)
Estimated Fair Value	113,140	110,621
U.S. Treasury securities
Available-for-sale marketable securities
Amortized Cost	49,987	199,881
Gross Unrealized Gains	12	18
Estimated Fair Value	49,999	199,899
Marketable equity security
Available-for-sale marketable securities
Amortized Cost	7,631	12,896
Gross Unrealized Gains	1,495	2,418
Estimated Fair Value	$ 9,126	$ 15,314

MARKETABLE SECURITIES (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
MARKETABLE SECURITIES (Details 2) - USD ($) $ in Thousands	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010	Dec. 31, 2010
Continuous unrealized loss position
Fair Value	$ 19,035		$ 19,035		$ 73,723
Gross Unrealized Losses	(51)		(51)		(246)
Proceeds from sales and maturities of available-for-sale marketable securities and related gross realized gains and losses
Proceeds from sales and maturities of available-for-sale marketable securities	215,139	$ 170,878	413,904	$ 371,868
Gross realized gains	1,022	83	1,916	4,332
Gross realized losses		$ (7)	(18)	$ (7)
Corporate debt securities
Continuous unrealized loss position
Fair Value	12,271		12,271		34,552
Gross Unrealized Losses	(9)		(9)		(16)
States of the U.S. and state political subdivisions
Continuous unrealized loss position
Fair Value	6,764		6,764		39,171
Gross Unrealized Losses	$ (42)		$ (42)		$ (230)

FUNDS HELD IN ESCROW FOR MEETIC TENDER OFFER (Details) $ in Thousands	1 Months Ended
	Jul. 31, 2011 € / shares	Jul. 08, 2011 USD ($)	Jun. 30, 2011 USD ($)
Funds held in escrow for tender offer
Funds in escrow account			$ 360,583
Meetic
Funds held in escrow for tender offer
Offer price for shares of Meetic S.A. under public tender offer (in euros per share) \| € / shares	€ 15.00
Percentage of shares not already owned to be purchased with funds in escrow account (as a percent)	100.00%
Funds in escrow account		$ 360,583
Percentage of equity method investment remaining to be purchased (as a percent)		73.00%

FAIR VALUE MEASUREMENTS (Details) $ in Thousands	3 Months Ended
FAIR VALUE MEASUREMENTS (Details) $ in Thousands	Mar. 31, 2011 USD ($)	Mar. 31, 2010 USD ($)	Jun. 30, 2011 USD ($)	Dec. 31, 2010 USD ($)
Assets:
Marketable securities:			$ 288,997	$ 563,997
Funds held in escrow for Meetic tender offer			360,583
Auction rate security
Number of auction rate securities redeemed	1
Gross unrealized losses			51	246
Auction rate security
Auction rate security
Redeemed at par value	$ 5,000
Cost basis			10,000	15,000
Gross unrealized losses			1,300	1,900
Fair value on a recurring basis \| Treasury and government agency money market funds
Assets:
Funds held in escrow for Meetic tender offer			158,305
Fair value on a recurring basis \| Commercial paper
Assets:
Funds held in escrow for Meetic tender offer			202,278
Fair value on a recurring basis \| Quoted Market Prices in Active Markets for Identical Assets (Level 1)
Assets:
Total Assets			631,269	490,321
Fair value on a recurring basis \| Quoted Market Prices in Active Markets for Identical Assets (Level 1) \| Treasury and government agency money market funds
Assets:
Cash equivalents:			332,878	275,108
Funds held in escrow for Meetic tender offer			158,305
Fair value on a recurring basis \| Quoted Market Prices in Active Markets for Identical Assets (Level 1) \| U.S. Treasury securities
Assets:
Marketable securities:			49,999	199,899
Fair value on a recurring basis \| Quoted Market Prices in Active Markets for Identical Assets (Level 1) \| Marketable equity security
Assets:
Marketable securities:			9,126	15,314
Long-term investments:			80,961
Fair value on a recurring basis \| Significant Other Observable Inputs (Level 2)
Assets:
Total Assets			553,435	684,017
Fair value on a recurring basis \| Significant Other Observable Inputs (Level 2) \| Commercial paper
Assets:
Cash equivalents:			100,635	309,183
Funds held in escrow for Meetic tender offer			202,278
Fair value on a recurring basis \| Significant Other Observable Inputs (Level 2) \| Time deposits
Assets:
Cash equivalents:			20,650	26,050
Fair value on a recurring basis \| Significant Other Observable Inputs (Level 2) \| Corporate debt securities
Assets:
Marketable securities:			116,732	238,163
Fair value on a recurring basis \| Significant Other Observable Inputs (Level 2) \| States of the U.S. and state political subdivisions
Assets:
Marketable securities:			113,140	110,621
Fair value on a recurring basis \| Significant Unobservable Inputs (Level 3)
Assets:
Total Assets			8,680	13,100
Liabilities:
Contingent consideration arrangement			10,000
Total Liabilities			10,000
Fair value on a recurring basis \| Significant Unobservable Inputs (Level 3) \| Auction rate security
Assets:
Long-term investments:			8,680	13,100
Fair value on a recurring basis \| Total Fair Value Measurements
Assets:
Total Assets			1,193,384	1,187,438
Liabilities:
Contingent consideration arrangement			10,000
Total Liabilities			10,000
Fair value on a recurring basis \| Total Fair Value Measurements \| Treasury and government agency money market funds
Assets:
Cash equivalents:			332,878	275,108
Fair value on a recurring basis \| Total Fair Value Measurements \| Commercial paper
Assets:
Cash equivalents:			100,635	309,183
Fair value on a recurring basis \| Total Fair Value Measurements \| Time deposits
Assets:
Cash equivalents:			20,650	26,050
Fair value on a recurring basis \| Total Fair Value Measurements \| Corporate debt securities
Assets:
Marketable securities:			116,732	238,163
Fair value on a recurring basis \| Total Fair Value Measurements \| States of the U.S. and state political subdivisions
Assets:
Marketable securities:			113,140	110,621
Fair value on a recurring basis \| Total Fair Value Measurements \| U.S. Treasury securities
Assets:
Marketable securities:			49,999	199,899
Fair value on a recurring basis \| Total Fair Value Measurements \| Marketable equity security
Assets:
Marketable securities:			9,126	15,314
Long-term investments:			80,961
Fair value on a recurring basis \| Total Fair Value Measurements \| Auction rate security
Assets:
Long-term investments:			$ 8,680	$ 13,100
Fair value on a non-recurring basis
Assets measured at fair value on a non-recurring basis
Other-than-temporary impairment charge to write-down investment in HealthCentral to fair value		$ 18,300

FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Mar. 31, 2010	Jun. 30, 2011	Jun. 30, 2010
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	$ 9,050	$ 13,420	$ 12,635	$ 13,100	$ 12,635
Total net gains (losses) (realized and unrealized) included in other comprehensive income, assets	(370)	(2,165)		580	(1,380)
Settlements, assets				(5,000)
Balance at the end of the period, assets	8,680	$ 11,255	$ 13,420	8,680	$ 11,255
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, liabilities	40,000
Fair value at date of acquisition, liabilities				40,000
Settlements, liabilities	(30,000)			(30,000)
Balance at the end of the period, liabilities	$ 10,000			$ 10,000

FINANCIAL INSTRUMENTS (Details) - USD ($)	Jun. 30, 2011	Jan. 31, 2011	Dec. 31, 2010
Fair value of financial instruments
Marketable securities	$ 288,997,000		$ 563,997,000
Funds held in escrow for Meetic tender offer	360,583,000
Long-term investments
Cost method investments, carrying value	6,900,000		39,000,000
Cost basis of long-term marketable equity security formerly accounted for under the cost method	33,400,000
Unrealized gain on investment recorded at fair value	47,500,000
Newsweek Daily Beast Company
Fair value of financial instruments
Amount of maximum borrowing under line of credit		$ 10,000,000
Amount drawn on the basis of line of credit facility	10,000,000
Carrying Value
Fair value of financial instruments
Cash and cash equivalents	622,866,000		742,099,000
Marketable securities	288,997,000		563,997,000
Funds held in escrow for Meetic tender offer	360,583,000
Notes receivable	3,615,000		3,316,000
Contingent consideration arrangement	(10,000,000)
Long-term debt	(95,844,000)		(95,844,000)
Guarantee of The Newsweek/Daily Beast Company debt	(5,000,000)
Carrying Value \| Marketable equity security
Fair value of financial instruments
Long-term investments	80,961,000
Carrying Value \| Auction rate security
Fair value of financial instruments
Long-term investments	8,680,000		13,100,000
Carrying Value \| Newsweek Daily Beast Company
Fair value of financial instruments
Guarantee of The Newsweek/Daily Beast Company debt	(5,000,000)
Total Fair Value Measurements
Fair value of financial instruments
Cash and cash equivalents	622,866,000		742,099,000
Marketable securities	288,997,000		563,997,000
Funds held in escrow for Meetic tender offer	360,583,000
Notes receivable	2,849,000		2,818,000
Contingent consideration arrangement	(10,000,000)
Long-term debt	(88,640,000)		(83,363,000)
Guarantee of The Newsweek/Daily Beast Company debt	(5,000,000)
Letters of credit and surety bond	(232,000)		(362,000)
Total Fair Value Measurements \| Marketable equity security
Fair value of financial instruments
Long-term investments	80,961,000
Total Fair Value Measurements \| Auction rate security
Fair value of financial instruments
Long-term investments	8,680,000		$ 13,100,000
Total Fair Value Measurements \| Newsweek Daily Beast Company
Fair value of financial instruments
Guarantee of The Newsweek/Daily Beast Company debt	$ (5,000,000)

EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Numerator: Basic
Earnings from continuing operations	$ 45,630	$ 15,421	$ 65,798	$ 824
Net (earnings) loss attributable to noncontrolling interests	(718)	756	(868)	1,375
Earnings from continuing operations attributable to IAC shareholders	44,912	16,177	64,930	2,199
Loss from discontinued operations, net of tax	(2,488)	(2,586)	(4,436)	(7,313)
Net earnings (loss) attributable to IAC shareholders	42,424	13,591	60,494	(5,114)
Numerator: Diluted
Earnings from continuing operations	45,630	15,421	65,798	824
Net (earnings) loss attributable to noncontrolling interests	(718)	756	(868)	1,375
Earnings from continuing operations attributable to IAC shareholders	44,912	16,177	64,930	2,199
Loss from discontinued operations, net of tax	(2,488)	(2,586)	(4,436)	(7,313)
Net earnings (loss) attributable to IAC shareholders	$ 42,424	$ 13,591	$ 60,494	$ (5,114)
Denominator: Basic
Weighted average basic shares outstanding (in shares)	90,050	109,287	89,568	112,847
Denominator: Diluted
Weighted average basic shares outstanding (in shares)	90,050	109,287	89,568	112,847
Dilutive securities including stock options, warrants and RSUs (in shares)	7,252	3,320	5,923	3,394
Denominator for earnings per share-weighted average shares (in shares)	97,302	112,607	95,491	116,241
Earnings per share attributable to IAC shareholders: Basic
Earnings per share from continuing operations (in dollars per share)	$ 0.50	$ 0.15	$ 0.72	$ 0.02
Discontinued operations, net of tax (in dollars per share)	(0.03)	(0.03)	(0.04)	(0.07)
Earnings (loss) per share (in dollars per share)	0.47	0.12	0.68	(0.05)
Earnings (loss) per share attributable to IAC shareholders: Diluted
Earnings per share from continuing operations (in dollars per share)	0.46	0.14	0.68	0.02
Discontinued operations, net of tax (in dollars per share)	(0.02)	(0.02)	(0.05)	(0.06)
Earnings (loss) per share (in dollars per share)	$ 0.44	$ 0.12	$ 0.63	$ (0.04)

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Segment reporting information
Revenue	$ 485,404	$ 394,244	$ 945,617	$ 772,422
Operating Income (Loss)	58,231	24,633	95,567	33,558
Operating Income Before Amortization	83,438	50,437	143,392	84,081
Depreciation	12,450	16,625	25,889	32,418
Reconciliation of Operating Income Before Amortization to operating income (loss) for the entity's reportable segments and to net earnings (loss) attributable to IAC shareholders
Operating Income Before Amortization	83,438	50,437	143,392	84,081
Non-Cash Compensation Expense	(23,007)	(21,048)	(43,168)	(42,593)
Amortization of Intangibles	(2,200)	(4,756)	(4,657)	(7,930)
Operating Income (Loss)	58,231	24,633	95,567	33,558
Equity in losses of unconsolidated affiliates	(8,720)	(4,002)	(10,599)	(26,615)
Other income, net	5,637	103	6,389	5,339
Earnings from continuing operations before income taxes	55,148	20,734	91,357	12,282
Income tax provision	(9,518)	(5,313)	(25,559)	(11,458)
Earnings from continuing operations	45,630	15,421	65,798	824
Loss from discontinued operations, net of tax	(2,488)	(2,586)	(4,436)	(7,313)
Net earnings (loss)	43,142	12,835	61,362	(6,489)
Net (earnings) loss attributable to noncontrolling interests	(718)	756	(868)	1,375
Net earnings (loss) attributable to IAC shareholders	42,424	13,591	60,494	(5,114)
Search
Segment reporting information
Revenue	252,436	197,194	501,040	396,155
Operating Income (Loss)	50,309	31,617	99,397	62,674
Operating Income Before Amortization	50,568	32,043	99,954	63,584
Depreciation	6,367	9,952	13,348	19,015
Reconciliation of Operating Income Before Amortization to operating income (loss) for the entity's reportable segments and to net earnings (loss) attributable to IAC shareholders
Operating Income Before Amortization	50,568	32,043	99,954	63,584
Non-Cash Compensation Expense		(89)		(236)
Amortization of Intangibles	(259)	(337)	(557)	(674)
Operating Income (Loss)	50,309	31,617	99,397	62,674
Match
Segment reporting information
Revenue	116,429	96,961	228,026	186,236
Operating Income (Loss)	40,999	25,490	64,428	39,192
Operating Income Before Amortization	42,335	29,104	67,323	43,910
Depreciation	2,278	2,878	4,578	5,906
Reconciliation of Operating Income Before Amortization to operating income (loss) for the entity's reportable segments and to net earnings (loss) attributable to IAC shareholders
Operating Income Before Amortization	42,335	29,104	67,323	43,910
Non-Cash Compensation Expense		179		153
Amortization of Intangibles	(1,336)	(3,793)	(2,895)	(4,871)
Operating Income (Loss)	40,999	25,490	64,428	39,192
ServiceMagic
Segment reporting information
Revenue	56,104	49,519	102,397	91,731
Operating Income (Loss)	8,239	5,748	12,047	8,144
Operating Income Before Amortization	8,622	6,125	12,799	8,984
Depreciation	1,114	1,078	2,184	1,996
Reconciliation of Operating Income Before Amortization to operating income (loss) for the entity's reportable segments and to net earnings (loss) attributable to IAC shareholders
Operating Income Before Amortization	8,622	6,125	12,799	8,984
Amortization of Intangibles	(383)	(377)	(752)	(840)
Operating Income (Loss)	8,239	5,748	12,047	8,144
Media and Other
Segment reporting information
Revenue	60,767	51,014	115,047	99,129
Operating Income (Loss)	(3,239)	(3,026)	(6,963)	(6,838)
Operating Income Before Amortization	(3,137)	(2,618)	(6,503)	(5,014)
Depreciation	618	566	1,427	1,106
Reconciliation of Operating Income Before Amortization to operating income (loss) for the entity's reportable segments and to net earnings (loss) attributable to IAC shareholders
Operating Income Before Amortization	(3,137)	(2,618)	(6,503)	(5,014)
Non-Cash Compensation Expense	120	(159)	(7)	(279)
Amortization of Intangibles	(222)	(249)	(453)	(1,545)
Operating Income (Loss)	(3,239)	(3,026)	(6,963)	(6,838)
Inter-segment elimination
Segment reporting information
Revenue	(332)	(444)	(893)	(829)
Corporate
Segment reporting information
Operating Income (Loss)	(38,077)	(35,196)	(73,342)	(69,614)
Operating Income Before Amortization	(14,950)	(14,217)	(30,181)	(27,383)
Depreciation	2,073	2,151	4,352	4,395
Reconciliation of Operating Income Before Amortization to operating income (loss) for the entity's reportable segments and to net earnings (loss) attributable to IAC shareholders
Operating Income Before Amortization	(14,950)	(14,217)	(30,181)	(27,383)
Non-Cash Compensation Expense	(23,127)	(20,979)	(43,161)	(42,231)
Operating Income (Loss)	$ (38,077)	$ (35,196)	$ (73,342)	$ (69,614)

EARNINGS (LOSS) PER SHARE (Details 2) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
RSUs
Anti-dilutive weighted average common shares
Potentially dilutive securities excluded from calculation of diluted earnings per share (in shares)	1.2	22.1	1.3	22.6
PSUs
Anti-dilutive weighted average common shares
Potentially dilutive securities excluded from calculation of diluted earnings per share (in shares)	3.3	1.9	3.3	1.9

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

SEGMENT INFORMATION (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
SEGMENT INFORMATION (Details 2) - USD ($) $ in Thousands	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010	Dec. 31, 2010
Revenue and long-lived assets by geographical segments
Revenue	$ 485,404	$ 394,244	$ 945,617	$ 772,422
Long-lived assets (excluding goodwill and intangible assets)	261,118		261,118		$ 267,928
United States
Revenue and long-lived assets by geographical segments
Revenue	384,835	330,229	757,497	644,671
Long-lived assets (excluding goodwill and intangible assets)	259,862		259,862		267,060
All other countries
Revenue and long-lived assets by geographical segments
Revenue	100,569	$ 64,015	188,120	$ 127,751
Long-lived assets (excluding goodwill and intangible assets)	$ 1,256		$ 1,256		$ 868

CONTINGENCIES (Details)	6 Months Ended
CONTINGENCIES (Details)	Jun. 30, 2011
CONTINGENCIES
Minimum number of lawsuits that could have material impact on the liquidity, results of operations, or financial condition	1

SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2010	Jun. 30, 2010	Dec. 31, 2010
Equity method investments
Dividend received		$ 8,800
Meetic
Equity method investments
Share of the dividend			$ 11,400
Dividend received	$ 8,800

SUPPLEMENTAL CASH FLOW INFORMATION (Details 2) - USD ($) shares in Millions, $ in Millions	1 Months Ended
	Feb. 28, 2011	Mar. 31, 2010	Mar. 10, 2011	Mar. 10, 2010
Non-Cash Transactions
Shares of IAC common stock received in tax-free exchange with Liberty Media Corporation (in shares)	0.1
Value of the shares of IAC common stock received in tax-free exchange with Liberty Media Corporation	$ 2.9
Cash payment from Match to Meetic		$ 3.0
Equity interest of Match and Meetic in the newly formed venture (as a percent)			50.00%
Value of equity interest in the newly formed venture				$ 72.0

SUBSEQUENT EVENTS (Details) - Stock repurchases - USD ($) shares in Millions, $ in Millions	1 Months Ended
	Jul. 22, 2011	Jul. 26, 2011
SUBSEQUENT EVENTS
Common stock shares repurchased (in shares)	2.4
Common stock shares repurchased (in dollars)	$ 89.9
Maximum number of shares of outstanding common stock authorized to be repurchased (in shares)		15.0

- Definition

Equity impact of the cost of common and preferred stock that were repurchased during the period. Recorded using the cost method.

+ References + Details

Document and Entity Information - USD ($)	6 Months Ended
Document and Entity Information - USD ($)	Jun. 30, 2011	Jul. 22, 2011
Entity Registrant Name	IAC/INTERACTIVECORP
Entity Central Index Key	0000891103
Document Type	10-Q
Document Period End Date	Jun. 30, 2011
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float		$ 2,985,357,951
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q2
Common stock
Entity Common Stock, Shares Outstanding		79,174,454
Class B convertible common stock
Entity Common Stock, Shares Outstanding		5,789,499