iaci-20210331
000180022712/312021Q1FALSE00018002272021-01-012021-03-31xbrli:shares0001800227us-gaap:CommonClassAMember2021-04-300001800227us-gaap:CommonClassBMember2021-04-30iso4217:USD00018002272021-03-3100018002272020-12-310001800227iaci:MGMMember2021-03-310001800227iaci:MGMMember2020-12-31iso4217:USDxbrli:shares0001800227us-gaap:CommonClassAMember2020-12-310001800227us-gaap:CommonClassAMember2021-03-310001800227us-gaap:CommonClassBMember2020-12-310001800227us-gaap:CommonClassBMember2021-03-3100018002272020-01-012020-03-310001800227us-gaap:CostOfSalesMember2021-01-012021-03-310001800227us-gaap:CostOfSalesMember2020-01-012020-03-310001800227us-gaap:SellingAndMarketingExpenseMember2021-01-012021-03-310001800227us-gaap:SellingAndMarketingExpenseMember2020-01-012020-03-310001800227us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-03-310001800227us-gaap:GeneralAndAdministrativeExpenseMember2020-01-012020-03-310001800227us-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-03-310001800227us-gaap:ResearchAndDevelopmentExpenseMember2020-01-012020-03-310001800227us-gaap:CommonClassAMemberus-gaap:CommonStockMember2021-03-310001800227us-gaap:CommonClassBMemberus-gaap:CommonStockMember2021-03-310001800227iaci:RedeemableNoncontrollingInterestsMember2020-12-310001800227us-gaap:CommonClassAMemberus-gaap:CommonStockMember2020-12-310001800227us-gaap:CommonClassBMemberus-gaap:CommonStockMember2020-12-310001800227us-gaap:AdditionalPaidInCapitalMember2020-12-310001800227us-gaap:RetainedEarningsMember2020-12-310001800227us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001800227us-gaap:ParentMember2020-12-310001800227us-gaap:NoncontrollingInterestMember2020-12-310001800227iaci:RedeemableNoncontrollingInterestsMember2021-01-012021-03-310001800227us-gaap:RetainedEarningsMember2021-01-012021-03-310001800227us-gaap:ParentMember2021-01-012021-03-310001800227us-gaap:NoncontrollingInterestMember2021-01-012021-03-310001800227us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001800227us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001800227us-gaap:CommonClassAMemberus-gaap:CommonStockMember2021-01-012021-03-310001800227iaci:AngiMemberus-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001800227iaci:AngiMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001800227iaci:AngiMemberus-gaap:ParentMember2021-01-012021-03-310001800227us-gaap:NoncontrollingInterestMemberiaci:AngiMember2021-01-012021-03-310001800227iaci:AngiMember2021-01-012021-03-310001800227iaci:RedeemableNoncontrollingInterestsMemberiaci:VimeoMember2021-01-012021-03-310001800227iaci:VimeoMemberus-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001800227iaci:VimeoMemberus-gaap:ParentMember2021-01-012021-03-310001800227iaci:VimeoMember2021-01-012021-03-310001800227iaci:RedeemableNoncontrollingInterestsMember2019-01-012019-03-310001800227iaci:RedeemableNoncontrollingInterestsMember2021-03-310001800227us-gaap:AdditionalPaidInCapitalMember2021-03-310001800227us-gaap:RetainedEarningsMember2021-03-310001800227us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001800227us-gaap:ParentMember2021-03-310001800227us-gaap:NoncontrollingInterestMember2021-03-310001800227iaci:RedeemableNoncontrollingInterestsMember2019-12-310001800227iaci:InvestedCapitalMember2019-12-310001800227us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001800227iaci:ParentInvestedCapitalMember2019-12-310001800227us-gaap:NoncontrollingInterestMember2019-12-3100018002272019-12-310001800227iaci:RedeemableNoncontrollingInterestsMember2020-01-012020-03-310001800227iaci:InvestedCapitalMember2020-01-012020-03-310001800227iaci:ParentInvestedCapitalMember2020-01-012020-03-310001800227us-gaap:NoncontrollingInterestMember2020-01-012020-03-310001800227us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001800227iaci:AngiMemberiaci:InvestedCapitalMember2020-01-012020-03-310001800227iaci:AngiMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001800227iaci:AngiMemberiaci:ParentInvestedCapitalMember2020-01-012020-03-310001800227us-gaap:NoncontrollingInterestMemberiaci:AngiMember2020-01-012020-03-310001800227iaci:AngiMember2020-01-012020-03-310001800227iaci:RedeemableNoncontrollingInterestsMember2020-03-310001800227iaci:InvestedCapitalMember2020-03-310001800227us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001800227iaci:ParentInvestedCapitalMember2020-03-310001800227us-gaap:NoncontrollingInterestMember2020-03-3100018002272020-03-310001800227iaci:VimeoMember2020-01-012020-03-310001800227iaci:IACMember2021-01-012021-03-310001800227iaci:IACMember2020-01-012020-03-310001800227iaci:SearchMemberiaci:DesktopMember2020-01-012020-03-31xbrli:pure0001800227us-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMembercountry:US2021-01-012021-03-31iaci:investment0001800227us-gaap:SalesRevenueSegmentMemberus-gaap:CustomerConcentrationRiskMemberiaci:GoogleIncMember2021-01-012021-03-310001800227us-gaap:SalesRevenueSegmentMemberus-gaap:CustomerConcentrationRiskMemberiaci:GoogleIncMember2020-01-012020-03-310001800227us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMemberiaci:GoogleIncMember2021-03-310001800227us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMemberiaci:GoogleIncMember2020-12-310001800227us-gaap:SalesRevenueSegmentMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-03-310001800227us-gaap:SalesRevenueSegmentMemberus-gaap:CustomerConcentrationRiskMember2020-01-012020-03-310001800227iaci:SearchMemberus-gaap:SalesRevenueSegmentMemberus-gaap:CustomerConcentrationRiskMemberiaci:DesktopMemberiaci:GoogleIncMember2021-01-012021-03-310001800227iaci:SearchMemberus-gaap:SalesRevenueSegmentMemberus-gaap:CustomerConcentrationRiskMemberiaci:DesktopMemberiaci:GoogleIncMember2020-01-012020-03-310001800227iaci:SearchMemberus-gaap:SalesRevenueSegmentMemberus-gaap:CustomerConcentrationRiskMemberiaci:GoogleIncMemberiaci:AskMediaGroupMember2021-01-012021-03-310001800227iaci:SearchMemberus-gaap:SalesRevenueSegmentMemberus-gaap:CustomerConcentrationRiskMemberiaci:GoogleIncMemberiaci:AskMediaGroupMember2020-01-012020-03-310001800227iaci:Care.comMember2020-02-110001800227iaci:Care.comMember2020-02-112020-02-110001800227iaci:Care.comMember2021-01-012021-03-310001800227iaci:Care.comMemberus-gaap:TrademarksAndTradeNamesMember2020-02-112020-02-110001800227us-gaap:DevelopedTechnologyRightsMemberiaci:Care.comMember2020-02-112020-02-110001800227iaci:Care.comMemberus-gaap:CustomerRelationshipsMember2020-02-112020-02-110001800227srt:MinimumMemberiaci:Care.comMemberus-gaap:CustomerRelationshipsMember2020-02-112020-02-110001800227iaci:Care.comMembersrt:MaximumMemberus-gaap:CustomerRelationshipsMember2020-02-112020-02-110001800227iaci:ProviderRelationshipsMemberiaci:Care.comMember2020-02-112020-02-110001800227us-gaap:AcquisitionRelatedCostsMember2021-01-012021-03-310001800227iaci:DeferredRevenueWriteOffAdjustmentMember2021-01-012021-03-310001800227us-gaap:USTreasurySecuritiesMember2020-12-3100018002272020-01-012020-12-310001800227iaci:MGMMember2020-01-012020-12-310001800227iaci:MGMMember2021-01-012021-03-310001800227iaci:TuroMember2020-10-012020-12-310001800227iaci:TuroMember2021-01-012021-03-310001800227iaci:TuroMember2020-12-310001800227iaci:TuroMember2021-03-310001800227iaci:TuroMember2020-12-310001800227us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2021-03-310001800227us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Member2021-03-310001800227us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Member2021-03-310001800227us-gaap:MoneyMarketFundsMember2021-03-310001800227us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasurySecuritiesMember2021-03-310001800227us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Member2021-03-310001800227us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-03-310001800227us-gaap:USTreasurySecuritiesMember2021-03-310001800227us-gaap:FairValueInputsLevel1Memberus-gaap:BankTimeDepositsMember2021-03-310001800227us-gaap:BankTimeDepositsMemberus-gaap:FairValueInputsLevel2Member2021-03-310001800227us-gaap:FairValueInputsLevel3Memberus-gaap:BankTimeDepositsMember2021-03-310001800227us-gaap:BankTimeDepositsMember2021-03-310001800227us-gaap:FairValueInputsLevel1Member2021-03-310001800227us-gaap:FairValueInputsLevel2Member2021-03-310001800227us-gaap:FairValueInputsLevel3Member2021-03-310001800227us-gaap:FairValueInputsLevel1Memberus-gaap:WarrantMember2021-03-310001800227us-gaap:WarrantMemberus-gaap:FairValueInputsLevel2Member2021-03-310001800227us-gaap:WarrantMemberus-gaap:FairValueInputsLevel3Member2021-03-310001800227us-gaap:WarrantMember2021-03-310001800227us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2020-12-310001800227us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Member2020-12-310001800227us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Member2020-12-310001800227us-gaap:MoneyMarketFundsMember2020-12-310001800227us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasurySecuritiesMember2020-12-310001800227us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Member2020-12-310001800227us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Member2020-12-310001800227us-gaap:USTreasurySecuritiesMember2020-12-310001800227us-gaap:FairValueInputsLevel1Memberus-gaap:BankTimeDepositsMember2020-12-310001800227us-gaap:BankTimeDepositsMemberus-gaap:FairValueInputsLevel2Member2020-12-310001800227us-gaap:FairValueInputsLevel3Memberus-gaap:BankTimeDepositsMember2020-12-310001800227us-gaap:BankTimeDepositsMember2020-12-310001800227us-gaap:FairValueInputsLevel1Member2020-12-310001800227us-gaap:FairValueInputsLevel2Member2020-12-310001800227us-gaap:FairValueInputsLevel3Member2020-12-310001800227us-gaap:FairValueInputsLevel1Memberus-gaap:WarrantMember2020-12-310001800227us-gaap:WarrantMemberus-gaap:FairValueInputsLevel2Member2020-12-310001800227us-gaap:WarrantMemberus-gaap:FairValueInputsLevel3Member2020-12-310001800227us-gaap:WarrantMember2020-12-310001800227us-gaap:WarrantMember2019-12-310001800227iaci:ContingentConsiderationArrangementMember2019-12-310001800227us-gaap:WarrantMember2021-01-012021-03-310001800227us-gaap:WarrantMember2020-01-012020-03-310001800227iaci:ContingentConsiderationArrangementMember2020-01-012020-03-310001800227us-gaap:WarrantMember2020-03-310001800227iaci:ContingentConsiderationArrangementMember2020-03-310001800227us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-310001800227us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-310001800227us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001800227us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001800227us-gaap:SeniorNotesMemberiaci:AngiMemberiaci:ANGI3875SeniorNotesMember2020-08-200001800227us-gaap:SeniorNotesMemberiaci:AngiMemberiaci:ANGI3875SeniorNotesMember2021-03-310001800227us-gaap:SeniorNotesMemberiaci:AngiMemberiaci:ANGI3875SeniorNotesMember2020-12-310001800227iaci:ANGITermLoandueNovember052023Memberiaci:AngiMemberus-gaap:LoansPayableMember2021-03-310001800227iaci:ANGITermLoandueNovember052023Memberiaci:AngiMemberus-gaap:LoansPayableMember2020-12-310001800227iaci:AngiMember2021-03-310001800227iaci:AngiMember2020-12-310001800227iaci:ANGITermLoandueNovember052023Memberus-gaap:LondonInterbankOfferedRateLIBORMemberiaci:AngiMemberus-gaap:LoansPayableMember2021-01-012021-03-310001800227iaci:ANGITermLoandueNovember052023Memberiaci:AngiMemberus-gaap:LoansPayableMember2021-01-012021-03-310001800227iaci:ANGITermLoandueNovember052023Memberiaci:AngiMemberus-gaap:LoansPayableMember2020-01-012020-12-310001800227iaci:AngiMemberiaci:ANGIHomeservicesCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2018-11-050001800227iaci:AngiMemberiaci:ANGIHomeservicesCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2020-12-310001800227iaci:AngiMemberiaci:ANGIHomeservicesCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2021-03-310001800227iaci:AngiMemberiaci:ANGIHomeservicesCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2021-01-012021-03-310001800227iaci:AngiMemberiaci:ANGIHomeservicesCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2020-01-012020-12-310001800227iaci:VimeoMemberiaci:CreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2021-02-120001800227iaci:VimeoMemberiaci:CreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2021-01-012021-03-310001800227iaci:VimeoMemberiaci:CreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2021-03-310001800227us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310001800227us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-12-310001800227us-gaap:AccumulatedTranslationAdjustmentMember2019-12-310001800227us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2019-12-310001800227us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2021-01-012021-03-310001800227us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2021-01-012021-03-310001800227us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2021-01-012021-03-310001800227us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2020-01-012020-03-310001800227us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2020-01-012020-03-310001800227us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-01-012020-03-310001800227us-gaap:AccumulatedForeignCurrencyAdjustmentAttributableToNoncontrollingInterestMember2021-01-012021-03-310001800227us-gaap:AccumulatedNetInvestmentGainLossAttributableToNoncontrollingInterestMember2021-01-012021-03-310001800227us-gaap:AociAttributableToNoncontrollingInterestMember2021-01-012021-03-310001800227us-gaap:AccumulatedForeignCurrencyAdjustmentAttributableToNoncontrollingInterestMember2020-01-012020-03-310001800227us-gaap:AccumulatedNetInvestmentGainLossAttributableToNoncontrollingInterestMember2020-01-012020-03-310001800227us-gaap:AociAttributableToNoncontrollingInterestMember2020-01-012020-03-310001800227us-gaap:AccumulatedTranslationAdjustmentMember2021-03-310001800227us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-03-310001800227us-gaap:AccumulatedTranslationAdjustmentMember2020-03-310001800227us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-03-310001800227iaci:RSAAgreementMemberiaci:RestrictedStockAwardsMembersrt:ChiefExecutiveOfficerMember2020-11-050001800227iaci:RSAAgreementMemberiaci:RestrictedStockAwardsMembersrt:ChiefExecutiveOfficerMember2020-11-052020-11-050001800227us-gaap:OperatingSegmentsMemberiaci:AngiMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMemberiaci:AngiMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMemberiaci:VimeoMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMemberiaci:VimeoMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMemberiaci:DotdashMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMemberiaci:DotdashMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMemberiaci:SearchMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMemberiaci:SearchMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMemberiaci:EmergingOtherMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMemberiaci:EmergingOtherMember2020-01-012020-03-310001800227us-gaap:IntersegmentEliminationMember2021-01-012021-03-310001800227us-gaap:IntersegmentEliminationMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMemberiaci:MarketplaceConsumerConnectionMembersrt:NorthAmericaMemberiaci:AngiMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMemberiaci:MarketplaceConsumerConnectionMembersrt:NorthAmericaMemberiaci:AngiMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMembersrt:NorthAmericaMemberiaci:MarketplaceMembershipSubscriptionMemberiaci:AngiMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMembersrt:NorthAmericaMemberiaci:MarketplaceMembershipSubscriptionMemberiaci:AngiMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMembersrt:NorthAmericaMemberiaci:MarketplaceServiceOtherMemberiaci:AngiMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMembersrt:NorthAmericaMemberiaci:MarketplaceServiceOtherMemberiaci:AngiMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMembersrt:NorthAmericaMemberiaci:MarketplaceMemberiaci:AngiMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMembersrt:NorthAmericaMemberiaci:MarketplaceMemberiaci:AngiMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMembersrt:NorthAmericaMemberiaci:AdvertisingandServiceOtherMemberiaci:AngiMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMembersrt:NorthAmericaMemberiaci:AdvertisingandServiceOtherMemberiaci:AngiMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMembersrt:NorthAmericaMemberiaci:AngiMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMembersrt:NorthAmericaMemberiaci:AngiMember2020-01-012020-03-310001800227iaci:ConsumerConnectionMemberus-gaap:OperatingSegmentsMemberiaci:AngiMembersrt:EuropeMember2021-01-012021-03-310001800227iaci:ConsumerConnectionMemberus-gaap:OperatingSegmentsMemberiaci:AngiMembersrt:EuropeMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMemberiaci:MembershipSubscriptionMemberiaci:AngiMembersrt:EuropeMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMemberiaci:MembershipSubscriptionMemberiaci:AngiMembersrt:EuropeMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMemberiaci:AdvertisingandServiceOtherMemberiaci:AngiMembersrt:EuropeMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMemberiaci:AdvertisingandServiceOtherMemberiaci:AngiMembersrt:EuropeMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMemberiaci:AngiMembersrt:EuropeMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMemberiaci:AngiMembersrt:EuropeMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMemberiaci:VimeoMemberiaci:ServicePlatformMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMemberiaci:VimeoMemberiaci:ServicePlatformMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMemberiaci:DotdashMemberus-gaap:AdvertisingMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMemberiaci:DotdashMemberus-gaap:AdvertisingMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMemberiaci:DotdashMemberiaci:ServicePerformanceMarketingMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMemberiaci:DotdashMemberiaci:ServicePerformanceMarketingMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMemberiaci:SearchMemberiaci:AdvertisingGoogleMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMemberiaci:SearchMemberiaci:AdvertisingGoogleMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMemberiaci:SearchMemberiaci:AdvertisingOtherMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMemberiaci:SearchMemberiaci:AdvertisingOtherMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMemberiaci:SearchMemberus-gaap:AdvertisingMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMemberiaci:SearchMemberus-gaap:AdvertisingMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMemberiaci:SearchMemberus-gaap:ProductAndServiceOtherMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMemberiaci:SearchMemberus-gaap:ProductAndServiceOtherMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMemberiaci:EmergingOtherMemberiaci:ServiceSubscriptionMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMemberiaci:EmergingOtherMemberiaci:ServiceSubscriptionMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMemberiaci:EmergingOtherMemberiaci:MarketplaceMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMemberiaci:EmergingOtherMemberiaci:MarketplaceMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMemberiaci:MediaProductionAndDistributionMemberiaci:EmergingOtherMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMemberiaci:MediaProductionAndDistributionMemberiaci:EmergingOtherMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMemberiaci:EmergingOtherMemberiaci:AdvertisingOtherMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMemberiaci:EmergingOtherMemberiaci:AdvertisingOtherMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMemberiaci:EmergingOtherMemberiaci:AdvertisingGoogleMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMemberiaci:EmergingOtherMemberiaci:AdvertisingGoogleMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMemberiaci:EmergingOtherMemberus-gaap:AdvertisingMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMemberiaci:EmergingOtherMemberus-gaap:AdvertisingMember2020-01-012020-03-310001800227us-gaap:OperatingSegmentsMemberiaci:EmergingOtherMemberus-gaap:ServiceMember2021-01-012021-03-310001800227us-gaap:OperatingSegmentsMemberiaci:EmergingOtherMemberus-gaap:ServiceMember2020-01-012020-03-310001800227country:US2021-01-012021-03-310001800227country:US2020-01-012020-03-310001800227us-gaap:NonUsMember2021-01-012021-03-310001800227us-gaap:NonUsMember2020-01-012020-03-310001800227country:US2021-03-310001800227country:US2020-12-310001800227us-gaap:NonUsMember2021-03-310001800227us-gaap:NonUsMember2020-12-310001800227us-gaap:CorporateNonSegmentMember2021-01-012021-03-310001800227us-gaap:CorporateNonSegmentMember2020-01-012020-03-31iaci:lawsuitiaci:plaintiff0001800227iaci:TinderOptionholderLitigationMember2018-08-012018-08-31iaci:bank0001800227iaci:TinderOptionholderLitigationMember2017-01-012017-12-310001800227iaci:TinderOptionholderLitigationMembersrt:MinimumMemberus-gaap:PendingLitigationMember2018-08-012018-08-310001800227iaci:TinderOptionholderLitigationMember2018-08-312018-08-310001800227srt:AffiliatedEntityMember2020-01-012020-03-3100018002272020-06-300001800227us-gaap:SubsidiaryOfCommonParentMemberus-gaap:CommonClassBMemberiaci:AngiMemberiaci:EmployeeMattersAgreementMember2021-01-012021-03-310001800227us-gaap:SubsidiaryOfCommonParentMemberus-gaap:CommonClassBMemberiaci:AngiMemberiaci:EmployeeMattersAgreementMember2020-01-012020-03-310001800227us-gaap:SubsidiaryOfCommonParentMemberus-gaap:CommonClassAMemberiaci:AngiMemberiaci:EmployeeMattersAgreementMember2021-01-012021-03-310001800227us-gaap:SubsidiaryOfCommonParentMemberus-gaap:CommonClassAMemberiaci:AngiMemberiaci:EmployeeMattersAgreementMember2020-01-012020-03-310001800227us-gaap:LimitedLiabilityCompanyMemberiaci:AngiMemberus-gaap:ServiceAgreementsMember2021-01-012021-03-310001800227us-gaap:LimitedLiabilityCompanyMemberiaci:AngiMemberus-gaap:ServiceAgreementsMember2020-01-012020-03-310001800227us-gaap:SubsidiaryOfCommonParentMemberus-gaap:ServiceAgreementsMember2021-03-310001800227us-gaap:SubsidiaryOfCommonParentMemberus-gaap:ServiceAgreementsMember2020-12-310001800227us-gaap:LimitedLiabilityCompanyMemberiaci:AngiMemberiaci:TaxSharingAgreementMember2020-12-310001800227us-gaap:LimitedLiabilityCompanyMemberiaci:AngiMemberiaci:TaxSharingAgreementMember2021-03-310001800227us-gaap:LimitedLiabilityCompanyMemberiaci:AngiMemberiaci:TaxSharingAgreementMember2020-01-012020-03-310001800227us-gaap:LimitedLiabilityCompanyMemberiaci:AngiMemberiaci:TaxSharingAgreementMember2021-01-012021-03-310001800227us-gaap:LimitedLiabilityCompanyMemberiaci:LeasedOfficeSpaceMemberiaci:AngiMember2020-01-012020-03-310001800227us-gaap:LimitedLiabilityCompanyMemberiaci:LeasedOfficeSpaceMemberiaci:AngiMember2021-01-012021-03-310001800227us-gaap:LimitedLiabilityCompanyMemberiaci:LeasedOfficeSpaceMemberiaci:AngiMember2021-03-310001800227us-gaap:LimitedLiabilityCompanyMemberiaci:LeasedOfficeSpaceMemberiaci:AngiMember2020-12-310001800227us-gaap:SubsidiaryOfCommonParentMemberiaci:LeasedOfficeSpaceMember2020-01-012020-03-31iaci:building0001800227us-gaap:SubsidiaryOfCommonParentMemberiaci:SoldOfficeSpaceMember2020-01-312020-01-310001800227us-gaap:SubsidiaryOfCommonParentMemberiaci:SoldOfficeSpaceMember2020-01-012020-03-310001800227us-gaap:SubsidiaryOfCommonParentMemberus-gaap:CommonClassAMemberiaci:SoldOfficeSpaceMember2020-01-012020-03-310001800227us-gaap:OtherAffiliatesMemberiaci:CorporateAircraftPurchaseMember2021-03-31iaci:plane0001800227us-gaap:OtherAffiliatesMemberiaci:CorporateAircraftPurchaseMember2021-01-012021-03-310001800227us-gaap:OtherAffiliatesMemberiaci:CorporateAircraftPurchaseMember2019-01-012019-12-310001800227iaci:ANGITermLoandueNovember052023Memberiaci:AngiMemberus-gaap:LoansPayableMemberus-gaap:SubsequentEventMember2021-05-062021-05-06
Table of Contents
As filed with the Securities and Exchange Commission on May 7, 2021
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 2021
Or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from__________to__________                            
Commission File No. 001-39356
https://cdn.kscope.io/19122b336aa3848d392b0a09627c0e21-iaci-20210331_g1.jpg
IAC/INTERACTIVECORP
(Exact name of registrant as specified in its charter)
Delaware84-3727412
 (State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
555 West 18th Street, New York, New York 10011
(Address of registrant's principal executive offices)
(212314-7300
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of exchange on which registered
Common stock, par value $0.001IACThe Nasdaq Stock Market LLC
Securities registered pursuant to Section 12(g) of the Act:
None
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒   No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒    No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes     No ☒
As of April 30, 2021, the following shares of the registrant's common stock were outstanding:
Common Stock83,347,548 
Class B common stock5,789,499 
Total 89,137,047 




TABLE OF CONTENTS
  Page
Number


Table of Contents

PART I
FINANCIAL INFORMATION
Item 1.    Consolidated and Combined Financial Statements
IAC/INTERACTIVECORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Unaudited)
March 31, 2021December 31, 2020
(In thousands, except par value amounts)
ASSETS  
Cash and cash equivalents$3,915,548 $3,476,188 
Marketable debt securities 224,979 
Accounts receivable, net293,350 270,453 
Other current assets175,937 147,630 
Total current assets4,384,835 4,119,250 
Building, capitalized software, leasehold improvements and equipment, net279,501 278,251 
Goodwill1,853,513 1,879,438 
Intangible assets, net387,781 405,840 
Investment in MGM Resorts International2,242,698 1,860,158 
Long-term investments306,198 297,643 
Other non-current assets281,753 294,860 
TOTAL ASSETS$9,736,279 $9,135,440 
LIABILITIES AND SHAREHOLDERS' EQUITY  
LIABILITIES:  
Accounts payable, trade$93,377 $92,173 
Deferred revenue297,580 275,093 
Accrued expenses and other current liabilities385,987 383,562 
Total current liabilities776,944 750,828 
Long-term debt, net705,987 712,277 
Income taxes payable6,590 6,444 
Deferred income taxes76,758 52,593 
Other long-term liabilities221,139 230,378 
Redeemable noncontrolling interests702,841 231,992 
Commitments and contingencies
SHAREHOLDERS' EQUITY: 
Common Stock, $0.001 par value; authorized 1,600,000 shares; 83,342 and 82,976 shares issued and outstanding, respectively
83 83 
Class B common stock, $0.001 par value; authorized 400,000 shares; 5,789 shares issued and outstanding
6 6 
Additional paid-in-capital5,660,730 5,909,614 
Retained earnings1,023,170 694,042 
Accumulated other comprehensive income (loss)4,149 (6,170)
Total IAC shareholders' equity6,688,138 6,597,575 
Noncontrolling interests557,882 553,353 
Total shareholders' equity7,246,020 7,150,928 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$9,736,279 $9,135,440 

The accompanying Notes to Consolidated and Combined Financial Statements are an integral part of these statements.
3

Table of Contents

IAC/INTERACTIVECORP AND SUBSIDIARIES
CONSOLIDATED AND COMBINED STATEMENT OF OPERATIONS
(Unaudited)
Three Months Ended March 31,
 20212020
 (In thousands, except per share data)
Revenue$875,988 $684,124 
Operating costs and expenses: 
Cost of revenue (exclusive of depreciation shown separately below)245,681 179,327 
Selling and marketing expense344,266 308,207 
General and administrative expense177,431 173,741 
Product development expense82,410 61,963 
Depreciation 19,301 15,492 
Amortization of intangibles18,726 45,759 
Goodwill impairment 211,973 
Total operating costs and expenses887,815 996,462 
Operating loss(11,827)(312,338)
Interest expense(6,680)(2,217)
Unrealized gain on investment in MGM Resorts International 382,540  
Other income (expense), net13,650 (57,448)
Earnings (loss) before income taxes377,683 (372,003)
Income tax (provision) benefit(48,782)41,432 
Net earnings (loss)328,901 (330,571)
Net loss attributable to noncontrolling interests227 2,372 
Net earnings (loss) attributable to IAC shareholders$329,128 $(328,199)
Per share information attributable to IAC Common Stock and Class B common stock shareholders:
Basic earnings (loss) per share$3.70 $(3.86)
Diluted earnings (loss) per share$3.46 $(3.86)
Stock-based compensation expense by function:  
Cost of revenue$32 $18 
Selling and marketing expense1,538 1,276 
General and administrative expense18,068 33,646 
Product development expense3,064 2,241 
Total stock-based compensation expense$22,702 $37,181 
The accompanying Notes to Consolidated and Combined Financial Statements are an integral part of these statements.
4

Table of Contents

IAC/INTERACTIVECORP AND SUBSIDIARIES
CONSOLIDATED AND COMBINED STATEMENT OF COMPREHENSIVE OPERATIONS
(Unaudited)
Three Months Ended March 31,
 20212020
 (In thousands)
Net earnings (loss) $328,901 $(330,571)
Other comprehensive income (loss), net of income taxes:
Change in foreign currency translation adjustment 11,017 (6,630)
Change in unrealized gains and losses on available-for-sale marketable debt securities (2)(12)
Total other comprehensive income (loss), net of income taxes11,015 (6,642)
Comprehensive income (loss), net of income taxes339,916 (337,213)
Components of comprehensive (income) loss attributable to noncontrolling interests:
Net loss attributable to noncontrolling interests227 2,372 
Change in foreign currency translation adjustment attributable to noncontrolling interests(691)979 
Comprehensive (income) loss attributable to noncontrolling interests(464)3,351 
Comprehensive income (loss) attributable to IAC shareholders$339,452 $(333,862)


The accompanying Notes to Consolidated and Combined Financial Statements are an integral part of these statements.
5

Table of Contents

IAC/INTERACTIVECORP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
Three months ended March 31, 2021
(Unaudited)
  IAC Shareholders' Equity  
 Redeemable
Noncontrolling
Interests
Common Stock, $0.001 par value
Class B common stock, $0.001 par value
Additional Paid-in-CapitalRetained EarningsAccumulated
Other
Comprehensive
(Loss) Income
Total IAC
Shareholders' Equity
Noncontrolling
Interests
Total Shareholders' Equity
 $Shares$Shares
  (In thousands) 
Balance as of December 31, 2020$231,992 $83 82,976$6 5,789 $5,909,614 $694,042 $(6,170)$6,597,575 $553,353 $7,150,928 
Net (loss) earnings(673)— — — 329,128 — 329,128 446 329,574 
Other comprehensive income, net of income taxes580 — — — — 10,324 10,324 111 10,435 
Stock-based compensation expense— — — 20,668 — — 20,668 2,542 23,210 
Issuance of common stock pursuant to stock-based awards, net of withholding taxes— — 366— (21,135)— — (21,135)— (21,135)
Issuance of Angi Inc. common stock pursuant to stock-based awards, net of withholding taxes— — — (49,476)— (5)(49,481)1,430 (48,051)
Purchase of Angi Inc. treasury stock— — — (4,916)— — (4,916)— (4,916)
Issuance of Vimeo common stock and creation of noncontrolling interest, net of fees40,785 — — 258,965 — — 258,965 — 258,965 
Purchase of noncontrolling interests(22,938)— — — — — — — — 
Adjustment of noncontrolling interests to fair value453,099 — — — — (453,099)— — (453,099)— (453,099)
Other(4)— — — — 109 — — 109 — 109 
Balance as of March 31, 2021$702,841 $83 83,342 $6 5,789 $5,660,730 $1,023,170 $4,149 $6,688,138 $557,882 $7,246,020 


The accompanying Notes to Consolidated and Combined Financial Statements are an integral part of these statements.
6

Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
COMBINED STATEMENT OF PARENT'S EQUITY
Three Months Ended March 31, 2020
(Unaudited)
  Old IAC Equity in  
  IAC/InterActiveCorp  
   Accumulated
Other
Comprehensive
Loss
Total Old IAC
Equity in IAC/InterActiveCorp
  
 Redeemable
Noncontrolling
Interests
Invested CapitalNoncontrolling
Interests
Total
Parent's
Equity
 
  (In thousands)
Balance as of December 31, 2019$43,818 $2,547,251 $(12,226)$2,535,025 $470,121 $3,005,146 
Net loss(1,032)(328,199)— (328,199)(1,340)(329,539)
Other comprehensive income (loss), net of income taxes99 — (5,663)(5,663)(1,078)(6,741)
Stock-based compensation expense15 11,389 — 11,389 22,211 33,600 
Purchase of redeemable noncontrolling interests(3,165)— — — — — 
Adjustment of redeemable noncontrolling interests to fair value2,418 (2,418)— (2,418)— (2,418)
Issuance of Angi Inc. common stock pursuant to stock-based awards, net of withholding taxes— 6,996 (37)6,959 (10,302)(3,343)
Purchase of Angi Inc. treasury stock— (38,971)— (38,971)— (38,971)
Net increase in Old IAC's investment in IAC Holdings, Inc.— 1,739,118 — 1,739,118 — 1,739,118 
Other(1) —    
Balance as of March 31, 2020$42,152 $3,935,166 $(17,926)$3,917,240 $479,612 $4,396,852 


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

7

Table of Contents

IAC/INTERACTIVECORP AND SUBSIDIARIES
CONSOLIDATED AND COMBINED STATEMENT OF CASH FLOWS
(Unaudited)
Three Months Ended March 31,
 20212020
 (In thousands)
Cash flows from operating activities:  
Net earnings (loss) $328,901 $(330,571)
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: 
Stock-based compensation expense22,702 37,181 
Amortization of intangibles18,726 45,759 
Depreciation19,301 15,492 
Provision for credit losses19,391 19,929 
Goodwill impairment 211,973 
Deferred income taxes47,196 (13,759)
Unrealized gain on investment in MGM Resorts International(382,540) 
(Gains) losses on long-term investments in equity securities, net(1,457)51,473 
Other adjustments, net(6,189)10,354 
Changes in assets and liabilities, net of effects of acquisitions and dispositions:
Accounts receivable(42,789)(27,216)
Other assets11,679 310 
Accounts payable and other liabilities(8,462)(7,971)
Income taxes payable and receivable(929)1,564 
Deferred revenue28,342 24,653 
Net cash provided by operating activities53,872 39,171 
Cash flows from investing activities:
Acquisitions, net of cash acquired (532,857)
Capital expenditures(20,352)(14,810)
Proceeds from maturities of marketable debt securities225,000  
Purchases of investments(7,180) 
Decrease in notes receivable—related party 27,691 
Other, net7,551 1,366 
Net cash provided by (used in) investing activities205,019 (518,610)
Cash flows from financing activities:
Principal payments on ANGI Group Term Loan(6,875)(3,438)
Proceeds from issuance of Vimeo common stock, net of fees299,750  
Debt issuance costs(1,440) 
Purchase of Angi Inc. treasury stock(4,916)(38,512)
Proceeds from the exercise of IAC stock options1,471  
Withholding taxes paid on behalf of IAC employees on net settled stock-based awards(22,997) 
Withholding taxes paid on behalf of Angi Inc. employees on net settled stock-based awards(48,168)(3,222)
Purchase of noncontrolling interests(22,938)(3,165)
Transfers from Old IAC for periods prior to the MTCH Separation 1,720,618 
Other, net526 (465)
Net cash provided by financing activities194,413 1,671,816 
Total cash provided453,304 1,192,377 
Effect of exchange rate changes on cash and cash equivalents and restricted cash(93)(2,897)
Net increase in cash and cash equivalents and restricted cash453,211 1,189,480 
Cash and cash equivalents and restricted cash at beginning of period3,477,110 840,732 
Cash and cash equivalents and restricted cash at end of period$3,930,321 $2,030,212 

The accompanying Notes to Consolidated and Combined Financial Statements are an integral part of these statements.
8

Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED & COMBINED FINANCIAL STATEMENTS
(Unaudited)

NOTE 1—THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MTCH Separation:
On December 19, 2019, IAC/InterActiveCorp ("Old IAC") entered into a Transaction Agreement (as amended, the "Transaction Agreement") with Match Group, Inc. ("Old MTCH"), IAC Holdings, Inc. ("New IAC" or the "Company"), a direct wholly-owned subsidiary of Old IAC, and Valentine Merger Sub LLC, an indirect wholly-owned subsidiary of Old IAC. On June 30, 2020, the businesses of Old MTCH were separated from the remaining businesses of Old IAC through a series of transactions that resulted in the pre-transaction stockholders of Old IAC owning shares in two, separate public companies—(1) Old IAC, which was renamed Match Group, Inc. ("New Match") and which owns the businesses of Old MTCH and certain Old IAC financing subsidiaries, and (2) New IAC, which was renamed IAC/InterActiveCorp, and which owns Old IAC's other businesses—and the pre-transaction stockholders of Old MTCH (other than Old IAC) owning shares in New Match. This transaction is referred to as the "MTCH Separation."
Spin-off:
On December 22, 2020, IAC announced that its Board of Directors approved a plan to spin-off its full stake in Vimeo to IAC shareholders. IAC's Vimeo business will be separated from the remaining businesses of IAC through a series of transactions (which we refer to as the "Spin-off") that, if completed in their entirety, will result in the transfer of IAC's Vimeo business to Vimeo Holdings, Inc. ("SpinCo"), a wholly-owned subsidiary of IAC, with SpinCo becoming an independent, separately traded public company through a spin-off from IAC, and Vimeo, Inc., the IAC subsidiary that currently holds the Vimeo business, becoming a wholly-owned subsidiary of SpinCo. In connection with the foregoing, SpinCo will be renamed as Vimeo, Inc. and Vimeo will be renamed as Vimeo.com, Inc. The proposed transaction is subject to a number of conditions including final approval by IAC's Board of Directors, approval of the separation proposal by IAC stockholders, and other customary conditions and approvals and is expected to close pre-market on May 25, 2021.
Nature of Operations
The Company operates Vimeo, Dotdash and Care.com, among many others, and has majority ownership of Angi Inc. (formerly ANGI Homeservices Inc.), which includes HomeAdvisor, Angi (formerly Angie's List) and Handy.
Basis of Presentation
As used herein, "IAC," the "Company," "we," "our" or "us" and similar terms refer to IAC/InterActiveCorp and its subsidiaries (unless the context requires otherwise).
The Company prepares its consolidated and combined financial statements (collectively referred to herein as "financial statements") in accordance with U.S. generally accepted accounting principles ("GAAP").
The Company's financial statements were prepared on a consolidated basis beginning June 30, 2020 and on a combined basis for periods prior thereto. The difference in presentation is due to the fact that the final steps of the legal reorganization, including the contribution to New IAC of all the entities that comprise the Company following the MTCH Separation, were not completed until June 30, 2020. The preparation of the financial statements on a combined basis for periods prior to June 30, 2020 allows for the financial statements to be presented on a consistent basis for all periods presented.
The historical combined financial statements of the Company have been derived from the historical accounting records of Old IAC. The combined financial statements reflect the historical financial position, results of operations and cash flows of the entities comprising the Company since their respective dates of acquisition by Old IAC and the allocation to the Company of certain Old IAC corporate expenses based on the historical accounting records of Old IAC through June 30, 2020. 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. For the purpose of the combined financial statements, income taxes have been computed as if the entities comprising the Company filed tax returns on a standalone, separate basis for periods prior to the MTCH Separation.
9

Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (Continued)
(Unaudited)
All intercompany transactions and balances between and among the Company and its subsidiaries have been eliminated. All intercompany transactions between (i) the Company and (ii) Old IAC and its subsidiaries for periods prior to the MTCH Separation are considered to be effectively settled for cash at the time the transaction is recorded. The total net effect of the settlement of these intercompany transactions is reflected in the statement of cash flows as a financing activity and in the statement of parent's equity as "Invested capital".
In management’s opinion, the assumptions underlying the historical financial statements of the Company, including the basis on which the expenses have been allocated from Old IAC, are reasonable. However, the allocations may not reflect the expenses that the Company would have incurred as an independent, stand-alone company for the periods presented.
The accompanying unaudited financial statements have been prepared in accordance with 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 GAAP for complete annual financial statements. In the opinion of management, the accompanying unaudited financial statements include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. Interim results are not necessarily indicative of the results that may be expected for the full year. The accompanying unaudited interim financial statements should be read in conjunction with the annual audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020.
COVID-19 Update and Impairments
The impact on the Company from the COVID-19 outbreak, which has been declared a "pandemic" by the World Health Organization, has been varied and volatile. The extent to which developments related to the COVID-19 outbreak and measures designed to curb its spread continue to impact the Company’s business, financial condition and results of operations will depend on future developments, all of which are highly uncertain and many of which are beyond the Company’s control, including the continuing spread of COVID-19, the development and implementation of effective preventative measures (including the global distribution of vaccines) and possible treatments, the scope of governmental and other restrictions on travel, discretionary services and other activity, and public reactions to these developments. For example, these developments and measures have resulted in rapid and adverse changes to the operating environment for certain of our businesses, as well as significant uncertainty concerning the near- and long-term economic ramifications of the COVID-19 outbreak, which have adversely impacted our ability to forecast our results and respond in a timely and effective manner to trends related to the COVID-19 outbreak. The longer the global outbreak and measures designed to curb the spread of the virus continue to adversely affect levels of consumer confidence, discretionary spending and the willingness of consumers to interact with other consumers, vendors and service providers face-to-face (and in turn, adversely affect demand for the Company’s various products and services), the greater the adverse impact is likely to be on the Company’s business, financial condition and results of operations and the more limited will be the Company’s ability to try and make up for delayed or lost revenues.
When COVID-19 first impacted the businesses in IAC's Angi Inc. segment in March 2020, these businesses experienced a decline in demand for service requests, driven primarily by decreases in demand in certain categories of jobs (particularly discretionary indoor projects). During the second quarter of 2020, these businesses experienced a rebound in service requests, exceeding pre-COVID-19 growth levels, driven by increased demand from homeowners who spent more time at home due to measures taken to reduce the spread of COVID-19. These businesses continued to experience strong demand for home services in the second half of 2020 and the first quarter of 2021. However, many service professionals' businesses have been adversely impacted by labor and material constraints and many service professionals have limited capacity to take on new business, which has negatively impacted the ability of these businesses to monetize this increased level of service requests. Vimeo has seen strong revenue growth as the demand for communication via video has increased due to the pandemic. The Search segment has experienced an increase in revenue in the first quarter of 2021 compared to the prior year due, in part, to lower advertising rates in 2020 due to the impact of COVID-19. COVID-19 impacted our businesses in varied ways in the year ended December 31, 2020. Accordingly, the volatile nature of our operating results in 2020 will impact the comparability of our year-over-year results of operations.
There were no impairments identified during the quarter ended March 31, 2021.
10

Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (Continued)
(Unaudited)
In the quarter ended March 31, 2020, the Company determined that the effects of COVID-19 were an indicator of possible impairment for certain of its assets and identified the following impairments:
a $212.0 million impairment related to the goodwill of the Desktop reporting unit (included in the Search segment);
a $21.4 million impairment related to certain indefinite-lived intangible assets of the Desktop reporting unit;
a $51.5 million impairment of certain equity securities without readily determinable fair values; and
a $7.5 million impairment of a note receivable and a warrant related to certain investees.
In addition, the United States, which represents 80% of the Company's revenue for the three months ended March 31, 2021 experienced another resurgence of the COVID-19 virus. Europe, which is the second largest market for the Company's products and services, has also seen a resurgence in COVID-19. This resurgence of COVID-19 and the measures designed to curb COVID-19's spread could materially and adversely affect our business, financial condition and results of operations.
Accounting Estimates
Management of the Company is required to make certain estimates, judgments and assumptions during the preparation of its financial statements in accordance with GAAP. These estimates, judgments and assumptions impact the reported amounts of assets, liabilities, revenue and expenses and the related disclosure of assets and liabilities. Actual results could differ from these estimates.
On an ongoing basis, the Company evaluates its estimates, judgments and assumptions, including those related to: the fair values of cash equivalents and marketable debt and equity securities; the carrying value of accounts receivable, including the determination of the allowance for credit losses and the determination of revenue reserves; the determination of the customer relationship period for certain costs to obtain a contract with a customer; the carrying value of right-of-use assets ("ROU assets"); the useful lives and recoverability of building, capitalized software, leasehold improvements and equipment and definite-lived intangible assets; the recoverability of goodwill and indefinite-lived intangible assets; the fair value of equity securities without readily determinable fair values; contingencies; the fair value of acquisition-related contingent consideration arrangements; unrecognized tax benefits; the valuation allowance for deferred income tax assets; and the fair value of and forfeiture rates for stock-based awards, among others. The Company bases its estimates, judgments and assumptions on historical experience, its forecasts and budgets and other factors that the Company considers relevant.
Accounting for Investments in Equity Securities
Investments in equity securities, other than those of the Company's consolidated subsidiaries and those accounted for under the equity method, if applicable, are accounted for at fair value or under the measurement alternative of Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, with any changes to fair value recognized within other income (expense), net each reporting period. Under the measurement alternative, equity investments without readily determinable fair values are carried at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar securities of the same issuer; value is generally determined based on a market approach as of the transaction date. A security will be considered identical or similar if it has identical or similar rights to the equity securities held by the Company. The Company reviews its investments in equity securities without readily determinable fair values for impairment each reporting period when there are qualitative factors or events that indicate possible impairment. Factors the Company considers in making this determination include negative changes in industry and market conditions, financial performance, business prospects, and other relevant events and factors. When indicators of impairment exist, the Company prepares quantitative assessments of the fair value of its investments in equity securities, which require judgment and the use of estimates. When the Company's assessment indicates that the fair value of the investment is below its carrying value, the Company writes down the investment to its fair value and records the corresponding charge within other income (expense), net. See "Note 4—Financial Instruments and Fair Value Measurements" for additional information on the impairments of certain equity securities without readily determinable fair values recorded during the three months ended March 31, 2020.
11

Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (Continued)
(Unaudited)
In the event the Company has investments in the common stock or in-substance common stock of entities in which the Company has the ability to exercise significant influence over the operating and financial matters of the investee, but does not have a controlling financial interest, are accounted for using the equity method and are included in "Long-term investments" in the accompanying balance sheet. At March 31, 2021 and December 31, 2020, the Company has one investment accounted for using the equity method.
General Revenue Recognition
Revenue is recognized when control of the promised services or goods is transferred to the Company's customers and in the amount that reflects the consideration the Company expects to be entitled to in exchange for those services or goods.
The Company's disaggregated revenue disclosures are presented in "Note 8—Segment Information."
Deferred Revenue
Deferred revenue consists of payments that are received or are contractually due in advance of the Company's performance. The Company’s deferred revenue is reported on a contract-by-contract basis at the end of each reporting period. The Company classifies deferred revenue as current when the remaining term of the applicable subscription period or expected completion of its performance obligation is one year or less. The current and non-current deferred revenue balances are $275.1 million and $1.5 million, respectively, at December 31, 2020, and $178.6 million and $1.3 million, respectively, at December 31, 2019. During the three months ended March 31, 2021, the Company recognized $131.8 million of revenue that was included in the deferred revenue balance as of December 31, 2020. During the three months ended March 31, 2020, the Company recognized $90.9 million of revenue that was included in the deferred revenue balance as of December 31, 2019. The current and non-current deferred revenue balances are $297.6 million and $1.6 million, at March 31, 2021, respectively. Non-current deferred revenue is included in "Other long-term liabilities" in the accompanying balance sheet.
Practical Expedients and Exemptions
As permitted under the practical expedient available under ASU No. 2014-09, Revenue from Contracts with Customers, the Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts with variable consideration that is allocated entirely to unsatisfied performance obligations or to a wholly unsatisfied promise accounted for under the series guidance, and (iii) contracts for which the Company recognizes revenue at the amount which it has the right to invoice for services performed.
Assets Recognized from the Costs to Obtain a Contract with a Customer
The Company has determined that certain costs, primarily commissions paid to employees pursuant to certain sales incentive programs and mobile app store fees, meet the requirements to be capitalized as a cost of obtaining a contract. Commissions paid to employees pursuant to certain sales incentive programs are amortized over the estimated customer relationship period. The Company calculates the estimated customer relationship period as the average customer life, which is based on historical data. When customer renewals are expected and the renewal commission is not commensurate with the initial commission, the average customer life includes renewal periods. For sales incentive programs where the customer relationship period is one year or less, the Company has elected the practical expedient to expense the costs as incurred. The Company generally capitalizes and amortizes mobile app store fees over the term of the applicable subscription.
The current and non-current capitalized costs to obtain a contract with a customer are included in "Other current assets" and "Other non-current assets" in the accompanying balance sheet and are $61.6 million and $10.0 million, and $61.5 million and $9.3 million, at March 31, 2021 and December 31, 2020, respectively.
12

Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (Continued)
(Unaudited)
Certain Risks and Concentrations—Services Agreement with Google (the "Services Agreement")
A meaningful portion of the Company's revenue (and a substantial portion of IAC's net cash from operations that it can freely access) is attributable to the Services Agreement. In addition, the Company earns certain other advertising revenue from Google that is not attributable to the Services Agreement. For the three months ended March 31, 2021 and 2020, total revenue earned from Google was $171.8 million and $138.9 million, respectively, representing 20% of the Company's revenue for both periods. The related accounts receivable totaled $66.2 million and $61.9 million at March 31, 2021 and December 31, 2020, respectively.
The total revenue earned from the Services Agreement for the three months ended March 31, 2021 and 2020 was $152.5 million and $126.6 million, respectively, representing 17% and 19%, respectively, of the Company's total revenue.
The revenue attributable to the Services Agreement is earned by the Desktop business and Ask Media Group, both within the Search segment. For the three months ended March 31, 2021 and 2020, revenue earned from the Services Agreement was $31.0 million and $46.1 million, respectively, within the Desktop business and $121.4 million and $80.5 million, respectively, within Ask Media Group.
The Services Agreement expires on March 31, 2023; provided that during each September, either party may, after discussion with the other party, terminate the Services Agreement, effective on September 30 of the year following the year such notice is given. Neither party gave notice to the other party to terminate the Services Agreement pursuant to this provision in September 2020. The Services Agreement requires that the Company comply with certain guidelines promulgated by Google. Google may generally unilaterally update its policies and guidelines without advance notice. These updates may be specific to the Services Agreement or could be more general and thereby impact the Company as well as other companies. These policy and guideline updates have in the past and could in the future require modifications to, or prohibit and/or render obsolete certain of our products, services and/or business practices, which have been and could be costly to address and have had or otherwise could have an adverse effect on our financial condition and results of operations. As described below, Google has made changes to the policies under the Services Agreement and has also made industry-wide changes that have negatively impacted the Desktop business and it may do so in the future.
Certain industry-wide policy changes became effective on August 27, 2020. These industry-wide changes, combined with increased enforcement of policies under the Services Agreement, have had a negative impact on the results of operations of Desktop's business-to-consumer ("B2C") business. In addition, at multiple times during the fourth quarter of 2020, Google suspended services with respect to some of Desktop's B2C products and may do so in the future. As a result, the Desktop B2C business elected to modify certain marketing strategies in early January 2021. Subsequently, Google informed us of another policy change in the first quarter of 2021 that is scheduled to go into effect on May 10, 2021. This Google policy change may eliminate our ability to successfully introduce and market new products that would be profitable at scale. Therefore, the Desktop B2C business substantially reduced marketing in early March 2021 and effectively eliminated all marketing of its B2C products by the end of the first quarter of 2021. This reduction in marketing will positively impact profitability in 2021 but will substantially reduce revenue in 2021. Beyond 2021, the revenue from the installed base of products will decline precipitously. In response, we have undertaken cost reduction measures to maintain a very modest level of profitability.
The reduction in revenue and profitability during the three months ended March 31, 2020 due, in part, to Google policy changes implemented in the second half of 2019 was the primary factor in the goodwill and indefinite-lived intangible asset impairments related to the Desktop business recorded in the three months ended March 31, 2020 of $212.0 million and $21.4 million, respectively. The impact of COVID-19 was an additional factor.
Recent Accounting Pronouncements
There are no recently issued accounting pronouncements that have not yet been adopted that are expected to have a material effect on the results of operations, financial condition or cash flows of the Company.
Reclassifications
Certain prior year amounts have been reclassified to conform to the current year presentation.
13

Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTE 2—INCOME TAXES
The Company was included within Old IAC’s tax group for purposes of federal and consolidated state income tax return filings through June 30, 2020, the date of the MTCH Separation. For periods prior thereto, the income tax benefit/provision were computed for the Company on an as if standalone, separate return basis and payments to and refunds from Old IAC for the Company’s share of Old IAC’s consolidated federal and state tax return liabilities/receivables calculated on this basis have been reflected within cash flows from operating activities in the accompanying statement of cash flows.
At the end of each interim period, the Company estimates the annual expected effective income tax rate and applies that rate to its ordinary year-to-date earnings or loss. The income tax provision or benefit related to significant, unusual, or extraordinary items, if applicable, that will be separately reported or reported net of their related tax effects are individually computed and recognized in the interim period in which they occur. In addition, the effect of changes in enacted tax laws or rates, tax status, judgment on the realizability of a beginning-of-the-year deferred tax asset in future years or unrecognized tax benefits is recognized in the interim period in which the change occurs.
The computation of the annual expected effective income tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected pre-tax income (or loss) for the year, projections of the proportion of income (and/or loss) earned and taxed in foreign jurisdictions, permanent and temporary differences, and the likelihood of the realization of deferred tax assets generated in the current year. The accounting estimates used to compute the provision or benefit for income taxes may change as new events occur, more experience is acquired, additional information is obtained or the Company's tax environment changes. To the extent that the expected annual effective income tax rate changes during a quarter, the effect of the change on prior quarters is included in income tax provision in the quarter in which the change occurs.
For the three months ended March 31, 2021, the Company recorded an income tax provision of $48.8 million, due primarily to excess tax benefits generated by the exercise and vesting of stock-based awards, partially offset by state taxes. For the three months ended March 31, 2020, the Company recorded an income tax benefit of $41.4 million, due primarily to excess tax benefits generated by the exercise and vesting of stock-based awards, partially offset by the non-deductible portion of the Desktop goodwill impairment.
As a result of the MTCH Separation, the Company's net deferred tax liability was adjusted via invested capital for tax attributes allocated to it from Old IAC's consolidated federal and state tax filings. The allocation of tax attributes that was recorded as of June 30, 2020 was preliminary. Any subsequent adjustment to allocated tax attributes will be recorded as an adjustment to deferred taxes and additional paid-in capital. This adjustment is expected to be made in the fourth quarter of 2021 following the filing of income tax returns for the year ended December 31, 2020.
The Company recognizes interest and, if applicable, penalties related to unrecognized tax benefits in the income tax provision. Accruals for interest and penalties are not material.
The Company is routinely under audit by federal, state, local and foreign authorities in the area of income tax as a result of previously filed separate company and consolidated tax returns with Old IAC and will be under audit for its tax returns filed on a standalone basis following the MTCH Separation. 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 substantially completed its audit of Old IAC’s federal income tax returns for the years ended December 31, 2010 through 2017, which includes the operations of the Company. The statute of limitations for the years 2010 through 2012 and for the years 2013 through 2017 have been extended to May 31, 2021 and June 30, 2022, respectively. Returns filed in various other jurisdictions are open to examination for tax years beginning with 2009. Income taxes payable include unrecognized tax benefits considered sufficient to pay assessments that may result from the examination of prior year tax returns. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may not accurately anticipate actual outcomes and, therefore, may require periodic adjustment. Although management currently believes changes in unrecognized tax benefits from period to period and differences between amounts paid, if any, upon resolution of issues raised in audits and amounts previously provided will not have a material impact on the liquidity, results of operations, or financial condition of the Company, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future.
14

Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (Continued)
(Unaudited)
At March 31, 2021 and December 31, 2020, unrecognized tax benefits, including interest and penalties, are $23.4 million and $22.1 million, respectively. Unrecognized tax benefits, including interest and penalties, at March 31, 2021 increased by $1.3 million due primarily to research credits. If unrecognized tax benefits at March 31, 2021 are subsequently recognized, $21.4 million, net of related deferred tax assets and interest, would reduce income tax expense. The comparable amount as of December 31, 2020 was $20.4 million. The Company believes that it is reasonably possible that its unrecognized tax benefits could decrease by $6.3 million by March 31, 2022, due to expirations of statutes of limitations or other settlements; $6.0 million of which would reduce the income tax provision.
NOTE 3—BUSINESS COMBINATION
On February 11, 2020, the Company acquired 100% of Care.com, the leading online destination for families to easily connect with caregivers, for a total purchase price of $626.9 million, which includes cash consideration of $587.0 million paid by the Company and the settlement of all outstanding vested employee equity awards for $40.0 million paid by Care.com prior to the completion of the acquisition. During the first quarter of 2021, the Company completed the purchase accounting for the Care.com acquisition, which resulted in a reduction in goodwill of $21.7 million. The primary adjustment was related to the completion of the assessment of acquired tax attributes.
The table below summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition:
Care.com
(In thousands)
Cash and cash equivalents$57,702 
Short-term investments20,000 
Accounts receivable20,202 
Other current assets7,479 
Property and equipment2,894 
Goodwill382,587 
Intangible assets116,800 
Deferred income taxes28,394 
Other non-current assets30,444 
Total assets666,502 
Deferred revenue(13,422)
Other current liabilities(39,894)
Other non-current liabilities(26,212)
Net assets acquired$586,974 
The Company acquired Care.com because it is complementary to other marketplace businesses of IAC. The purchase price was based on the expected financial performance of Care.com, not on the value of the net identifiable assets at the time of acquisition. This resulted in a significant portion of the purchase price being attributed to goodwill.
The fair values of the identifiable intangible assets acquired at the date of acquisition are as follows:
Care.com
(In thousands)Useful Life
(Years)
Indefinite-lived trade name and trademarks$59,300 Indefinite
Developed technology21,200 2
Customer relationships35,500 
2 - 5
Provider relationships800 4
    Total identifiable intangible assets acquired$116,800 
15

Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (Continued)
(Unaudited)
Accounts receivable, other current assets, other non-current assets, other current liabilities, and other non-current liabilities of Care.com were reviewed and adjusted to their fair values at the date of acquisition, as necessary. The fair value of deferred revenue was determined using an income approach that utilized a cost to fulfill analysis. The fair values of the trade name and developed technology were determined using an income approach that utilized the relief from royalty methodology. The fair values of customer relationships and provider relationships were determined using an income approach that utilized the excess earnings methodology. The valuations of the intangible assets incorporate significant unobservable inputs and require significant judgment and estimates, including the amount and timing of future cash flows and the determination of royalty and discount rates. The amount attributed to goodwill is not tax deductible.
The financial results of Care.com are included in the Company's financial statements, within the Emerging & Other segment, beginning February 11, 2020. For the three months ended March 31, 2020, the Company included $18.5 million of revenue and $12.3 million of net loss in its statement of operations related to Care.com. The net loss of Care.com reflects a reduction in revenue of $8.7 million due to the write-off of deferred revenue due to purchase accounting fair value adjustments and $4.8 million in transaction-related costs, including severance.
Unaudited pro forma financial information
The unaudited pro forma financial information in the table below presents the results of the Company and Care.com as if this acquisition had occurred on January 1, 2019. The unaudited pro forma financial information includes adjustments required under the acquisition method of accounting and is presented for informational purposes only and is not necessarily indicative of the results that would have been achieved had the acquisition occurred on January 1, 2019. For the three months ended March 31, 2020, pro forma adjustments include a reduction in transaction related costs (including stock-based compensation expense related to the acceleration of vesting of outstanding employee equity awards) of $60.9 million because they are one-time in nature and will not have a continuing impact on operations and an increase in revenue of $8.7 million related to deferred revenue written off as a part of the acquisition.
Three Months Ended March 31,
2020
(In thousands except per share data)
Revenue$718,763 
Net loss attributable to IAC shareholders$(320,955)
Basic and diluted loss per share attributable to IAC shareholders$(3.77)
NOTE 4—FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS
Marketable Debt Securities
The Company did not hold any marketable debt securities at March 31, 2021.
At December 31, 2020, current available-for-sale marketable debt securities are as follows:
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair Value
 (In thousands)
Treasury discount notes$224,976 $3 $ $224,979 
Total available-for-sale marketable debt securities$224,976 $3 $ $224,979 
The contractual maturities of debt securities classified as current available-for-sale at December 31, 2020 were within one year. There were no investments in available-for-sale marketable debt securities that had been in a continuous unrealized loss position for longer than twelve months as of December 31, 2020.
16

Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (Continued)
(Unaudited)
Investment in MGM Resorts International
 March 31, 2021December 31, 2020
 (In thousands)
Investment in MGM Resorts International ("MGM")$2,242,698 $1,860,158 
During the second and third quarters of 2020, the Company purchased a total of 59.0 million shares of MGM. The fair value of the investment in MGM is remeasured each reporting period based upon MGM's closing stock price on the New York Stock Exchange on the last trading day in the reporting period and any unrealized gains or losses are included in the accompanying statement of operations. For the three months ended March 31, 2021, the Company recognized an unrealized gain of $382.5 million on its investment in MGM.
Long-term Investments
Long-term investments consists of:
March 31, 2021December 31, 2020
(In thousands)
Equity securities without readily determinable fair values$303,083 $296,491 
Equity method investment3,115 1,152 
Total long-term investments$306,198 $297,643 
Equity Securities without Readily Determinable Fair Values
The following table presents a summary of unrealized gains and losses recorded in "Other income (expense), net," as adjustments to the carrying value of equity securities without readily determinable fair values held as of March 31, 2021 and 2020.
Three Months Ended March 31,
20212020
(In thousands)
Upward adjustments (gross unrealized gains)$1,376 $ 
Downward adjustments including impairments (gross unrealized losses) (51,484)
Total$1,376 $(51,484)
During the first quarter of 2020, the Company recorded unrealized impairments of $51.5 million related to certain equity securities without readily determinable fair values due to the impact of COVID-19. All gains and losses on equity securities without readily determinable fair values, realized and unrealized, are recognized in "Other income (expense), net" in the accompanying statement of operations.
The cumulative upward and downward adjustments (including impairments) to the carrying value of equity securities without readily determinable fair values held at March 31, 2021 were $21.1 million and $43.5 million, respectively.
17

Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (Continued)
(Unaudited)
Realized and unrealized gains and losses for the Company's investments without readily determinable fair values for the three months ended March 31, 2021 and 2020 are as follows:
Three Months Ended March 31,
20212020
(In thousands)
Realized gains net, for equity securities sold$81 $12 
Unrealized gains (losses), net, on equity securities held1,376 (51,484)
Total gains (losses), net recognized$1,457 $(51,472)
Equity Method Investment
During the fourth quarter of 2020 and first quarter of 2021, the Company acquired 0.3 million and 0.5 million common shares, respectively, of Turo Inc. ("Turo"), a peer-to-peer car sharing marketplace, for approximately $1.1 million and $2.0 million, respectively. This investment is accounted for under the equity method of accounting on a one quarter lag, given the Company's preexisting ownership interest of approximately 27.1% on a fully diluted basis in the form of preferred shares, which are not common stock equivalents.
Fair Value Measurements
The Company categorizes its financial instruments measured at fair value into a fair value hierarchy that prioritizes the inputs used in pricing the asset or liability. The three levels of the fair value hierarchy are:
Level 1: Observable inputs obtained from independent sources, such as quoted market prices for identical assets and liabilities in active markets.
Level 2: Other inputs, which are observable directly or indirectly, such as quoted market prices for similar assets or liabilities in active markets, quoted market prices for identical or similar assets or liabilities in markets that are not active and inputs that are derived principally from or corroborated by observable market data. The fair values of the Company's Level 2 financial assets are primarily obtained from observable market prices for identical underlying securities that may not be actively traded. Certain of these securities may have different market prices from multiple market data sources, in which case an average market price is used.
Level 3: Unobservable inputs for which there is little or no market data and require the Company to develop its own assumptions, based on the best information available in the circumstances, about the assumptions market participants would use in pricing the assets or liabilities.
18

Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (Continued)
(Unaudited)
The following tables present the Company's financial instruments that are measured at fair value on a recurring basis:
 March 31, 2021
 Quoted Market
Prices for
Identical Assets in Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Fair Value
Measurements
 (In thousands)
Assets:    
Cash equivalents:    
Money market funds$3,233,953 $ $ $3,233,953 
Treasury discount notes 274,999  274,999 
Time deposits 1,723  1,723 
Investment in MGM 2,242,698   2,242,698 
Other non-current assets:
Warrant  18,051 18,051 
Total$5,476,651 $276,722 $18,051 $5,771,424 
Liabilities:
Contingent consideration arrangement$ $ 

19

Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (Continued)
(Unaudited)
 December 31, 2020
 Quoted Market
Prices for
Identical Assets in Active Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Fair Value
Measurements
 (In thousands)
Assets:    
Cash equivalents:    
Money market funds$1,874,091 $ $ $1,874,091 
Treasury discount notes 1,224,966  1,224,966 
Time deposits 3,265  3,265 
Marketable debt securities:
Treasury discount notes 224,979  224,979 
Investment in MGM1,860,158   1,860,158 
Other non-current assets:
Warrant  5,276 5,276 
Total$3,734,249 $1,453,210 $5,276 $5,192,735 
Liabilities:
Contingent consideration arrangement$ $ 
The following table presents the changes in the Company's financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
 Three Months Ended March 31,
 20212020
WarrantWarrantContingent
Consideration
Arrangements
 (In thousands)
Balance at January 1$5,276 $8,495 $(6,918)
Fair value at date of acquisition  (1,000)
Total net gains (losses):
Included in earnings:
Fair value adjustments12,775 (2,006)6,282 
Settlements  1,000 
Balance at March 31$18,051 $6,489 $(636)
Warrant
As part of the Company's investment in Turo preferred shares, the Company received a warrant that is net settleable at the Company's option and is recorded at fair value each reporting period with any change included in "Other income (expense), net" in the accompanying statement of operations. The warrant is measured using significant unobservable inputs and is classified in the fair value hierarchy table as Level 3. The warrant is included in "Other non-current assets" in the accompanying balance sheet.
20

Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (Continued)
(Unaudited)
Contingent Consideration Arrangement
At March 31, 2021, the Company has one outstanding contingent consideration arrangement related to a business acquisition. The maximum contingent payments related to this arrangement for periods subsequent to December 31, 2020, which is the end of the most recent measurement period, is $15.0 million. At March 31, 2021, the Company does not expect to make any payments related to this contingent consideration arrangement. In connection with the Care.com acquisition on February 11, 2020, the Company assumed a contingent consideration arrangement liability of $1.0 million, which was subsequently paid and settled during the first quarter of 2020.
Generally, our contingent consideration arrangements are based upon financial performance and/or operating metric targets and the Company generally determines the fair value of the contingent consideration arrangements by using probability-weighted analyses to determine the amounts of the gross liability, and, if the arrangements are initially long-term in nature, applying a discount rate that appropriately captures the risks associated with the obligations to determine the net amount reflected in the financial statements.
The fair value of contingent consideration arrangements is sensitive to changes in the expected achievement of the applicable targets and changes in discount rates. The Company remeasures the fair value of the contingent consideration arrangements each reporting period, including the accretion of the discount, if applicable, and changes are recognized in "General and administrative expense" in the accompanying statement of operations. At both March 31, 2021 and December 31, 2020, there is no contingent consideration liability outstanding.
Assets measured at fair value on a nonrecurring basis
The Company's non-financial assets, such as goodwill, intangible assets, ROU assets and building, capitalized software, leasehold improvements and equipment, are adjusted to fair value only when an impairment is recognized. The Company's financial assets, comprising equity securities without readily determinable fair values, are adjusted to fair value when observable price changes are identified or an impairment is recognized. Such fair value measurements are based predominantly on Level 3 inputs.
Financial instruments measured at fair value only for disclosure purposes
The following table presents the carrying value and the fair value of financial instruments measured at fair value only for disclosure purposes:
 March 31, 2021December 31, 2020
 Carrying
Value
Fair
Value
Carrying
Value
Fair
Value
 (In thousands)
Long-term debt, net(a)
$(705,987)$(710,692)$(712,277)$(725,700)
_____________________
(a)    At March 31, 2021 and December 31, 2020, the carrying value of long-term debt, net includes unamortized debt issuance costs of $7.1 million and $7.7 million, respectively.
At March 31, 2021 and December 31, 2020, the fair value of long-term debt is estimated using observable market prices or indices for similar liabilities, which are Level 2 inputs.
21

Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTE 5—LONG-TERM DEBT
Long-term debt consists of:
 March 31, 2021December 31, 2020
 (In thousands)