ServiceMagic 2010 Annual Report Download - page 111

Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 18—SUPPLEMENTAL CASH FLOW INFORMATION (Continued)
On March 10, 2010, Match and Meetic completed a transaction in which Match contributed its Latin American business ("Match Latam")
and Meetic contributed Parperfeito to a newly formed venture. These contributions, along with a $3.0 million payment from Match to Meetic,
resulted in each party owning a 50% equity interest in the newly formed venture, which was valued at $72 million. Match controls the venture
through its voting interests. Accordingly, this transaction was accounted for as an acquisition of Parperfeito and a decrease in ownership of
Match Latam. No gain or loss was recognized on this transaction as the fair value of the consideration received by Match equaled the fair value
of the assets exchanged.
Supplemental Disclosure of Non-Cash Transactions for 2009
The Company recorded a $4.1 million reduction to the Spin-Off distribution. This reflects a reduction in the Company's income tax liability
and a corresponding increase in the income tax liability of the Spincos as of the date of the Spin-
Off. This reduced tax liability is primarily due to
elections made by the Company pursuant to the tax sharing agreement executed in connection with the Spin-Off. The amount is included in the
consolidated statement of shareholders' equity as an increase to additional paid-in-capital.
On June 5, 2009, IAC completed the sale of Match Europe to Meetic. In exchange for Match Europe, IAC received a 27% stake in Meetic
(approximately 6.1 million shares of Meetic common stock), valued at $154.8 million, plus a promissory note valued at $6.2 million. The
promissory note was subsequently paid in the fourth quarter of 2009.
On January 31, 2009, IAC completed the sale of ReserveAmerica to The Active Network, Inc. ("Active"). In exchange for ReserveAmerica,
IAC received approximately 3.5 million shares of Active convertible preferred stock, valued at $33.3 million. No gain or loss was recognized on
the sale of ReserveAmerica as the fair value of the Active convertible preferred stock received was equivalent to the carrying value of
ReserveAmerica.
Supplemental Disclosure of Non-Cash Transactions for 2008
During the year ended December 31, 2008, $12.3 million in aggregate principal amount of Convertible Notes was converted by the holders.
Upon conversion, 0.2 million shares of IAC common stock and 0.2 million shares of Expedia common stock were issued to the holders.
After the close of trading on August 20, 2008, IAC completed the Spin-Off. The net assets of the Spincos, net of cash of $728.0 million, of
$3.2 billion is included in the accompanying consolidated statement of shareholders' equity as a reduction to additional paid-in capital and
retained earnings.
Immediately prior to and in connection with the Spin-Off, the Company exchanged $277.4 million of the Senior Notes for debt of ILG.
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