ServiceMagic 2012 Annual Report Download - page 65

IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Noncontrolling Interests
Noncontrolling interests at December 31, 2012 and 2011 relate principally to Meetic.
Certain Risks and Concentrations
A substantial portion of the Company's revenue is derived from online advertising, the market for which is highly competitive and rapidly
changing. Significant changes in this industry or changes in advertising spending behavior or in customer buying behavior could adversely affect
our operating results. Most of the Company's online advertising revenue is attributable to a services agreement with Google, which expires on
March 31, 2016. Our services agreement requires that we comply with certain guidelines promulgated by Google. Subject to certain limitations,
Google may unilaterally update its policies and guidelines, which could in turn require modifications to, or prohibit and/or render obsolete
certain of, our products, services and/or business practices, which could be costly to address or otherwise have an adverse effect on our business,
financial condition and results of operations. For the years ended December 31, 2012 , 2011 and 2010 , revenue earned from Google is $1.4
billion , $970.4 million and $727.9 million , respectively. This revenue is earned by the businesses comprising the Search & Applications
segment. Accounts receivable related to revenue earned from Google totaled $125.3 million and $105.7 million at December 31, 2012 and 2011
,
respectively.
The Company's business is subject to certain risks and concentrations including dependence on third party technology providers, exposure
to risks associated with online commerce security and credit card fraud.
Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash and cash equivalents
and marketable securities. Cash and cash equivalents are maintained with financial institutions and are in excess of Federal Deposit Insurance
Corporation insurance limits.
NOTE 3—CONSOLIDATED FINANCIAL STATEMENT DETAILS
December 31,
2012
2011
(In thousands)
Other current assets:
Income taxes receivable
$
27,437
$
7,728
Prepaid expenses
22,877
19,769
Capitalized downloadable search toolbar costs, net
22,205
17,704
Deferred income taxes
20,343
41,045
Production costs
20,099
12,538
Other
43,378
13,471
Other current assets
$
156,339
$
112,255