UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 6, 2012
IAC/INTERACTIVECORP
(Exact name of registrant as specified in charter)
|
Delaware |
|
0-20570 |
|
59-2712887 |
|
(State or other jurisdiction |
|
(Commission |
|
(IRS Employer |
|
of incorporation) |
|
File Number) |
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Identification No.) |
|
555 West 18th Street, New York, NY |
|
10011 |
|
(Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number, including area code: (212) 314-7300
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 7.01 REGULATION FD DISCLOSURE
During the first quarter of 2012, IAC/InterActiveCorp (the “Company” or the “Registrant”) realigned its reportable segments. The Company has created a new segment called “Local” that includes ServiceMagic, which was previously reported as its own separate segment, and CityGrid Media, which has been moved from the Search segment. In addition, DailyBurn has been moved from the Search segment to the Media & Other segment and Pronto has been moved from the Media & Other segment to the Search segment. There have been no changes to the Match segment. Attached and incorporated herein by reference as Exhibit 99.1 is certain financial information of the Company reflecting the changes in the Company’s reportable segments. This supplemental financial information is being furnished by the Registrant pursuant to Regulation FD. The information set forth in Exhibit 99.1 refers to a non-GAAP measure within the meaning of Regulation G. Additional information regarding this non-GAAP measure can be found in the Registrant’s public filings.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
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Exhibit |
|
Description |
|
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99.1 |
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Supplemental financial information. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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|
IAC/INTERACTIVECORP | |
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|
|
|
|
|
|
|
|
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By: |
/s/ Gregg Winiarski |
|
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Name: |
Gregg Winiarski |
|
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Title: |
Senior Vice President, |
|
|
|
General Counsel and Secretary |
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Date: April 6, 2012 |
|
|
Exhibit 99.1
During the first quarter of 2012, IAC/InterActiveCorp (the “Company”) realigned its reportable segments. The Company has created a new segment called “Local” that includes ServiceMagic, which was previously reported as its own separate segment, and CityGrid Media, which has been moved from the Search segment. In addition, DailyBurn has been moved from the Search segment to the Media & Other segment and Pronto has been moved from the Media & Other segment to the Search segment. There have been no changes to the Match segment. The tables below reflect these changes (unaudited; dollars in thousands):
|
|
|
2011 |
|
2010 |
|
2009 |
| |||||||||||||||||||||||||||
|
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
FYE 12/31 |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
FYE 12/31 |
|
FYE 12/31 |
| |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
| |||||||||||
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Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
|
Search |
|
$ |
233,851 |
|
$ |
238,328 |
|
$ |
258,875 |
|
$ |
309,453 |
|
$ |
1,040,507 |
|
$ |
195,098 |
|
$ |
189,186 |
|
$ |
197,271 |
|
$ |
223,729 |
|
$ |
805,284 |
|
$ |
649,642 |
|
|
Match |
|
111,597 |
|
116,429 |
|
132,328 |
|
157,673 |
|
518,027 |
|
89,275 |
|
96,961 |
|
106,197 |
|
108,290 |
|
400,723 |
|
342,598 |
| |||||||||||
|
Local |
|
70,931 |
|
80,410 |
|
80,124 |
|
71,953 |
|
303,418 |
|
59,836 |
|
69,976 |
|
69,097 |
|
64,840 |
|
263,749 |
|
230,426 |
| |||||||||||
|
Media & Other |
|
44,133 |
|
50,405 |
|
45,715 |
|
57,976 |
|
198,229 |
|
34,158 |
|
38,351 |
|
40,864 |
|
55,068 |
|
168,441 |
|
125,598 |
| |||||||||||
|
Inter-segment elimination |
|
(299 |
) |
(168 |
) |
(158 |
) |
(112 |
) |
(737 |
) |
(189 |
) |
(230 |
) |
(463 |
) |
(500 |
) |
(1,382 |
) |
(1,569 |
) | |||||||||||
|
Total |
|
$ |
460,213 |
|
$ |
485,404 |
|
$ |
516,884 |
|
$ |
596,943 |
|
$ |
2,059,444 |
|
$ |
378,178 |
|
$ |
394,244 |
|
$ |
412,966 |
|
$ |
451,427 |
|
$ |
1,636,815 |
|
$ |
1,346,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
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Operating Income (Loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
|
Search |
|
$ |
48,621 |
|
$ |
50,651 |
|
$ |
45,508 |
|
$ |
59,226 |
|
$ |
204,006 |
|
$ |
36,169 |
|
$ |
34,554 |
|
$ |
33,141 |
|
$ |
24,492 |
|
$ |
128,356 |
|
$ |
(967,657 |
) |
|
Match |
|
23,429 |
|
40,999 |
|
36,677 |
|
36,450 |
|
137,555 |
|
13,702 |
|
25,490 |
|
38,126 |
|
38,049 |
|
115,367 |
|
84,655 |
| |||||||||||
|
Local |
|
5,834 |
|
9,326 |
|
7,324 |
|
3,049 |
|
25,533 |
|
(1,371 |
) |
4,514 |
|
3,811 |
|
1,451 |
|
8,405 |
|
3,974 |
| |||||||||||
|
Media & Other |
|
(5,283 |
) |
(4,668 |
) |
(4,485 |
) |
(5,735 |
) |
(20,171 |
) |
(5,157 |
) |
(4,729 |
) |
(4,699 |
) |
(40,400 |
) |
(54,985 |
) |
(25,226 |
) | |||||||||||
|
Corporate |
|
(35,265 |
) |
(38,077 |
) |
(38,284 |
) |
(37,535 |
) |
(149,161 |
) |
(34,418 |
) |
(35,196 |
) |
(32,695 |
) |
(45,039 |
) |
(147,348 |
) |
(133,733 |
) | |||||||||||
|
Total |
|
$ |
37,336 |
|
$ |
58,231 |
|
$ |
46,740 |
|
$ |
55,455 |
|
$ |
197,762 |
|
$ |
8,925 |
|
$ |
24,633 |
|
$ |
37,684 |
|
$ |
(21,447 |
) |
$ |
49,795 |
|
$ |
(1,037,987 |
) |
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
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Non-cash compensation expense: |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
|
Search |
|
$ |
77 |
|
$ |
(291 |
) |
$ |
4 |
|
$ |
8 |
|
$ |
(202 |
) |
$ |
147 |
|
$ |
89 |
|
$ |
310 |
|
$ |
84 |
|
$ |
630 |
|
$ |
663 |
|
|
Match |
|
— |
|
— |
|
423 |
|
1,219 |
|
1,642 |
|
26 |
|
(179 |
) |
— |
|
— |
|
(153 |
) |
154 |
| |||||||||||
|
Local |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
150 |
| |||||||||||
|
Media & Other |
|
50 |
|
171 |
|
275 |
|
278 |
|
774 |
|
120 |
|
159 |
|
162 |
|
197 |
|
638 |
|
846 |
| |||||||||||
|
Corporate |
|
20,034 |
|
23,127 |
|
22,183 |
|
21,030 |
|
86,374 |
|
21,252 |
|
20,979 |
|
16,586 |
|
24,348 |
|
83,165 |
|
68,268 |
| |||||||||||
|
Total |
|
$ |
20,161 |
|
$ |
23,007 |
|
$ |
22,885 |
|
$ |
22,535 |
|
$ |
88,588 |
|
$ |
21,545 |
|
$ |
21,048 |
|
$ |
17,058 |
|
$ |
24,629 |
|
$ |
84,280 |
|
$ |
70,081 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
|
Amortization of intangibles and goodwill impairment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
|
Search |
|
$ |
202 |
|
$ |
202 |
|
$ |
768 |
|
$ |
4 |
|
$ |
1,176 |
|
$ |
201 |
|
$ |
202 |
|
$ |
202 |
|
$ |
11,201 |
|
$ |
11,806 |
|
$ |
1,064,356 |
|
|
Match |
|
1,559 |
|
1,336 |
|
3,107 |
|
11,075 |
|
17,077 |
|
1,078 |
|
3,793 |
|
1,228 |
|
744 |
|
6,843 |
|
4,940 |
| |||||||||||
|
Local |
|
467 |
|
442 |
|
443 |
|
1,399 |
|
2,751 |
|
601 |
|
514 |
|
624 |
|
527 |
|
2,266 |
|
3,234 |
| |||||||||||
|
Media & Other |
|
229 |
|
220 |
|
220 |
|
384 |
|
1,053 |
|
1,294 |
|
247 |
|
248 |
|
32,800 |
|
34,589 |
|
1,369 |
| |||||||||||
|
Corporate |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||||||||
|
Total |
|
$ |
2,457 |
|
$ |
2,200 |
|
$ |
4,538 |
|
$ |
12,862 |
|
$ |
22,057 |
|
$ |
3,174 |
|
$ |
4,756 |
|
$ |
2,302 |
|
$ |
45,272 |
|
$ |
55,504 |
|
$ |
1,073,899 |
|
|
|
|
2011 |
|
2010 |
|
2009 |
| |||||||||||||||||||||||||||
|
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
FYE 12/31 |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
FYE 12/31 |
|
FYE 12/31 |
| |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
|
Amortization of non-cash marketing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
|
Search |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
6,494 |
|
|
Match |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
4,375 |
| |||||||||||
|
Local |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
4,999 |
| |||||||||||
|
Media & Other |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||||||||
|
Corporate |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||||||||
|
Total |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
15,868 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
|
Operating Income Before Amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
|
Search |
|
$ |
48,900 |
|
$ |
50,562 |
|
$ |
46,280 |
|
$ |
59,238 |
|
$ |
204,980 |
|
$ |
36,517 |
|
$ |
34,845 |
|
$ |
33,653 |
|
$ |
35,777 |
|
$ |
140,792 |
|
$ |
103,856 |
|
|
Match |
|
24,988 |
|
42,335 |
|
40,207 |
|
48,744 |
|
156,274 |
|
14,806 |
|
29,104 |
|
39,354 |
|
38,793 |
|
122,057 |
|
94,124 |
| |||||||||||
|
Local |
|
6,301 |
|
9,768 |
|
7,767 |
|
4,448 |
|
28,284 |
|
(770 |
) |
5,028 |
|
4,435 |
|
1,978 |
|
10,671 |
|
12,357 |
| |||||||||||
|
Media & Other |
|
(5,004 |
) |
(4,277 |
) |
(3,990 |
) |
(5,073 |
) |
(18,344 |
) |
(3,743 |
) |
(4,323 |
) |
(4,289 |
) |
(7,403 |
) |
(19,758 |
) |
(23,011 |
) | |||||||||||
|
Corporate |
|
(15,231 |
) |
(14,950 |
) |
(16,101 |
) |
(16,505 |
) |
(62,787 |
) |
(13,166 |
) |
(14,217 |
) |
(16,109 |
) |
(20,691 |
) |
(64,183 |
) |
(65,465 |
) | |||||||||||
|
Total |
|
$ |
59,954 |
|
$ |
83,438 |
|
$ |
74,163 |
|
$ |
90,852 |
|
$ |
308,407 |
|
$ |
33,644 |
|
$ |
50,437 |
|
$ |
57,044 |
|
$ |
48,454 |
|
$ |
189,579 |
|
$ |
121,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
|
Depreciation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
|
Search |
|
$ |
6,166 |
|
$ |
5,399 |
|
$ |
9,824 |
|
$ |
4,095 |
|
$ |
25,484 |
|
$ |
8,534 |
|
$ |
9,392 |
|
$ |
7,526 |
|
$ |
10,302 |
|
$ |
35,754 |
|
$ |
31,395 |
|
|
Match |
|
2,300 |
|
2,278 |
|
2,481 |
|
3,721 |
|
10,780 |
|
3,028 |
|
2,878 |
|
2,612 |
|
2,524 |
|
11,042 |
|
9,821 |
| |||||||||||
|
Local |
|
2,195 |
|
2,392 |
|
2,738 |
|
3,063 |
|
10,388 |
|
1,755 |
|
1,942 |
|
2,022 |
|
2,066 |
|
7,785 |
|
6,259 |
| |||||||||||
|
Media & Other |
|
499 |
|
308 |
|
362 |
|
385 |
|
1,554 |
|
232 |
|
262 |
|
282 |
|
297 |
|
1,073 |
|
2,744 |
| |||||||||||
|
Corporate |
|
2,279 |
|
2,073 |
|
2,079 |
|
2,082 |
|
8,513 |
|
2,244 |
|
2,151 |
|
2,156 |
|
1,692 |
|
8,243 |
|
11,172 |
| |||||||||||
|
Total |
|
$ |
13,439 |
|
$ |
12,450 |
|
$ |
17,484 |
|
$ |
13,346 |
|
$ |
56,719 |
|
$ |
15,793 |
|
$ |
16,625 |
|
$ |
14,598 |
|
$ |
16,881 |
|
$ |
63,897 |
|
$ |
61,391 |
|
Reconciliation of Operating Income Before Amortization to operating income (loss) to net earnings (loss) attributable to IAC shareholders:
|
|
|
2011 |
|
2010 |
|
2009 |
| |||||||||||||||||||||||||||
|
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
FYE 12/31 |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
FYE 12/31 |
|
FYE 12/31 |
| |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
|
Operating Income Before Amortization |
|
$ |
59,954 |
|
$ |
83,438 |
|
$ |
74,163 |
|
$ |
90,852 |
|
$ |
308,407 |
|
$ |
33,644 |
|
$ |
50,437 |
|
$ |
57,044 |
|
$ |
48,454 |
|
$ |
189,579 |
|
$ |
121,861 |
|
|
Non-cash compensation expense |
|
(20,161 |
) |
(23,007 |
) |
(22,885 |
) |
(22,535 |
) |
(88,588 |
) |
(21,545 |
) |
(21,048 |
) |
(17,058 |
) |
(24,629 |
) |
(84,280 |
) |
(70,081 |
) | |||||||||||
|
Amortization of intangibles |
|
(2,457 |
) |
(2,200 |
) |
(4,538 |
) |
(12,862 |
) |
(22,057 |
) |
(3,174 |
) |
(4,756 |
) |
(2,302 |
) |
(17,240 |
) |
(27,472 |
) |
(157,031 |
) | |||||||||||
|
Amortization of non-cash marketing |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(15,868 |
) | |||||||||||
|
Goodwill impairment |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(28,032 |
) |
(28,032 |
) |
(916,868 |
) | |||||||||||
|
Operating income (loss) |
|
37,336 |
|
58,231 |
|
46,740 |
|
55,455 |
|
197,762 |
|
8,925 |
|
24,633 |
|
37,684 |
|
(21,447 |
) |
49,795 |
|
(1,037,987 |
) | |||||||||||
|
Equity in (losses) income of unconsolidated affiliates |
|
(1,879 |
) |
(8,720 |
) |
(15,078 |
) |
(10,623 |
) |
(36,300 |
) |
(22,613 |
) |
(4,002 |
) |
(547 |
) |
1,486 |
|
(25,676 |
) |
(14,014 |
) | |||||||||||
|
Other income (expense), net |
|
752 |
|
5,637 |
|
4,308 |
|
(637 |
) |
10,060 |
|
5,236 |
|
103 |
|
819 |
|
(7,591 |
) |
(1,433 |
) |
105,002 |
| |||||||||||
|
Earnings (loss) from continuing operations before income taxes |
|
36,209 |
|
55,148 |
|
35,970 |
|
44,195 |
|
171,522 |
|
(8,452 |
) |
20,734 |
|
37,956 |
|
(27,552 |
) |
22,686 |
|
(946,999 |
) | |||||||||||
|
Income tax (provision) benefit |
|
(16,041 |
) |
(9,518 |
) |
32,003 |
|
(2,397 |
) |
4,047 |
|
(6,145 |
) |
(5,313 |
) |
(15,516 |
) |
(5,105 |
) |
(32,079 |
) |
(9,474 |
) | |||||||||||
|
Earnings (loss) from continuing operations |
|
20,168 |
|
45,630 |
|
67,973 |
|
41,798 |
|
175,569 |
|
(14,597 |
) |
15,421 |
|
22,440 |
|
(32,657 |
) |
(9,393 |
) |
(956,473 |
) | |||||||||||
|
Gain on Liberty Exchange |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
140,768 |
|
140,768 |
|
— |
| |||||||||||
|
(Loss) earnings from discontinued operations, net of tax |
|
(1,948 |
) |
(2,488 |
) |
(3,922 |
) |
4,366 |
|
(3,992 |
) |
(4,727 |
) |
(2,586 |
) |
(4,795 |
) |
(24,915 |
) |
(37,023 |
) |
(23,439 |
) | |||||||||||
|
Net earnings (loss) |
|
18,220 |
|
43,142 |
|
64,051 |
|
46,164 |
|
171,577 |
|
(19,324 |
) |
12,835 |
|
17,645 |
|
83,196 |
|
94,352 |
|
(979,912 |
) | |||||||||||
|
Net (earnings) loss attributable to noncontrolling interests |
|
(150 |
) |
(718 |
) |
922 |
|
2,602 |
|
2,656 |
|
619 |
|
756 |
|
(136 |
) |
3,768 |
|
5,007 |
|
1,090 |
| |||||||||||
|
Net earnings (loss) attributable to IAC shareholders |
|
$ |
18,070 |
|
$ |
42,424 |
|
$ |
64,973 |
|
$ |
48,766 |
|
$ |
174,233 |
|
$ |
(18,705 |
) |
$ |
13,591 |
|
$ |
17,509 |
|
$ |
86,964 |
|
$ |
99,359 |
|
$ |
(978,822 |
) |
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 of non-cash marketing, (3) amortization and impairment of intangibles, (4) goodwill impairment 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, non-cash marketing, and acquisition related accounting. IAC endeavors to compensate for the limitations of the non-GAAP measure presented by providing the comparable GAAP measure with equal or greater prominence and a reconciliation of the non-GAAP measure to net earnings (loss) attributable to IAC shareholders. The information presented above should be read in conjunction with IAC’s historical consolidated financial statements and notes thereto found on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov.