ServiceMagic 2009 Annual Report Download - page 76

Download and view the complete annual report

Please find page 76 of the 2009 ServiceMagic annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 146

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146

Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
buying behavior or advertiser spending behavior, including those changes that may result from the current economic environment, could
adversely affect our operating results. A significant component of the Company's revenue is attributable to a paid listing supply agreement with
Google, which expires on December 31, 2012. For the years ended December 31, 2009, 2008 and 2007, revenue earned from Google was
$564.8 million, $610.8 million and $568.1 million, respectively. Principally all of this revenue is earned by IAC Search & Media. Accounts
receivable, net of allowances related to this agreement totaled $55.0 million and $43.0 million at December 31, 2009 and 2008, 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. The Company also depends on third party service providers for
processing certain fulfillment services.
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 ("FDIC") insurance limits.
Reclassifications
Certain prior year amounts have been reclassified to conform to the current year presentation.
NOTE 3—CONSOLIDATED FINANCIAL STATEMENT DETAILS
Other current assets
The balance of other current assets is as follows (in thousands):
68
December 31,
2009
2008
Income taxes receivable
74,729
115,142
Deferred income taxes
43,048
24,305
Capitalized downloadable search toolbar
costs
15,367
21,092
Prepaid expenses
16,854
19,734
Other
14,629
35,357
Other current assets
164,627
215,630