ServiceMagic 2015 Annual Report Download - page 32

TableofContents
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InthecaseofMessrs.BronfmanandRosenblattandMs.Clinton,therewerenosuchpaymentsknowntoCompanymanagementfortheBoardto
consider.Oftheremainingincumbentdirectors,Messrs.Diller,KaufmanandLevinareexecutiveofficersoftheCompanyandMr.vonFurstenbergisMr.Diller’s
stepson.Giventheserelationships,noneofthesedirectorsisindependent.

InadditiontothesatisfactionofthedirectorindependencerequirementssetforthintheMarketplaceRules,membersoftheAuditandCompensationand
HumanResourcesCommitteeshavealsosatisfiedseparateindependencerequirementsunderthecurrentstandardsimposedbytheSECandtheMarketplace
RulesforauditcommitteemembersandbytheSEC,theMarketplaceRulesandtheInternalRevenueServiceforcompensationcommitteemembers.
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InFebruary2015,theBoarddeterminedthatoneformerdirector,SonaliDeRycker,wasindependent.Inconnectionwiththisdetermination,therewere
nosuchpaymentsknowntoCompanymanagementfortheBoardtoconsider.
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Item14.PrincipalAccountingFeesandServices.
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ThefollowingtablesetsforthfeesforallprofessionalservicesrenderedbyErnst&YoungtoIACfortheyearsendedDecember31,2015and2014:
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  2015 2014 
AuditFees

$ 5,919,000(1) $ 3,667,000(2)
Audit-RelatedFees(3)

$ 50,000

$ 50,000

TotalAuditandAudit-RelatedFees

$ 5,969,000

$ 3,717,000

TaxFees(4)

$ 1,250,000

$ 1,175,000

TotalFees

$ 7,219,000

$ 4,892,000
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
(1)AuditFeesin2015include:(i)feesassociatedwiththeannualauditoffinancialstatementsandinternalcontroloverfinancialreportingand
thereviewofperiodicreports,(ii)feesassociatedwiththeinitialpublicofferingofMatchGroup,Inc.(“MatchGroup”)inNovember2015,
aswellasthereviewof(and,inthecaseofconsentsandthecomfortletter,theissuanceof)therelatedSECregistrationstatements,consents
andcomfortletter,accountingconsultationsandotherservicesrelatedtotheoffering,(iii)feesfortheauditperformedinconnectionwith
MatchGroup’sacquisitionofPlentyoffishMediaInc.inOctober2015,(iv)statutoryaudits(auditsperformedforcertainIACbusinessesin
variousjurisdictionsabroad,whichauditsarerequiredbylocallaw),(v)feesforservicesperformedinconnectionwiththeissuanceof
MatchGroup’s6.75%SeniorNotesdue2022inNovember2015,aswellasthereviewandissuanceoftherelatedcomfortletterandother
servicesrelatedtotheissuance,and(vi)accountingconsultations.
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Feesforservicesdescribedin(i),(ii),(iii)and(v)aboveintheaggregateamount$3,980,000wereeitherallocatedbytheCompanytoMatch
Group(basedonMatchGroup’srevenueasapercentageofIAC’stotalrevenue)orpaidbyIACandreimbursedbyMatchGroup.
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(2)AuditFeesin2014include:(i)feesassociatedwiththeannualauditoffinancialstatementsandinternalcontroloverfinancialreporting,the
reviewofperiodicreports,thereviewof(and,inthecaseofconsents,theissuanceof)SECregistrationstatementsandconsentsandother
servicesrelatedtoSECmatters,(ii)accountingconsultationsand(iii)statutoryaudits.

Feesforservicesdescribedin(i)and(iii)aboveintheaggregateamount$2,075,000wereallocatedbytheCompanytoMatchGroup(based
onMatchGroup’srevenueasapercentageofIAC’stotalrevenue).
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(3)Audit-RelatedFeesin2015and2014includefeesforbenefitplanaudits.

(4)TaxFeesin2015and2014primarilyincludefeespaidforthepreparationoffederal,stateandlocaltaxreturns(includingamendedreturns)
intheUnitedStatesandcertainjurisdictionsabroadandresearchanddevelopmenttaxcreditstudies,aswellasthetaxcomplianceservices
in2015.
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