ServiceMagic 2011 Annual Report Download - page 112

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IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 19—RELATED PARTY TRANSACTIONS
On December 1, 2010, the Company completed a tax-free exchange with Liberty. See Note 12 for additional information regarding this
exchange.
In connection with and following the Expedia spin-off, the Company and Expedia entered into various commercial agreements, which
generally include distribution agreements, services agreements and advertising agreements, as well as a cost sharing agreement. Transactions
related to these agreements have, in recent years, been immaterial. The Company and Expedia are related parties since they are under common
control, given that Mr. Diller serves as Chairman and Senior Executive of both IAC and Expedia.
In addition, each of the Company and Expedia has a 50% ownership interest in an aircraft that may be used by both companies. Members of
this aircraft's flight crew are employed by an entity in which each of the Company and Expedia has a 50% ownership interest. The Company and
Expedia have agreed to share costs relating to flight crew compensation and benefits pro-rata according to each company's respective usage of
the aircraft, for which they are separately billed by the entity described above. From 2009 through 2011, total payments made to this entity by
the Company were immaterial.
NOTE 20—BENEFIT PLANS
IAC has a retirement savings plan in the United States that qualifies under Section 401(k) of the Internal Revenue Code. Participating
employees may contribute up to 50% of their pre-tax earnings, but not more than statutory limits. IAC contributes fifty cents for each dollar a
participant contributes in this plan, with a maximum contribution of 3% of a participant's eligible earnings. Matching contributions for the plan
for the years ended December 31, 2011, 2010 and 2009 were $5.0 million, $4.9 million and $4.5 million, respectively. Matching contributions
are invested in the same manner as each participant's voluntary contributions in the investment options provided under the plan. Investment
options in the plan include IAC common stock, but neither participant nor matching contributions are required to be invested in IAC common
stock.
IAC also has or participates in various benefit plans, principally defined contribution plans, for its international employees. IAC's
contributions for these plans for the years ended December 31, 2011, 2010 and 2009 were $1.4 million, $0.4 million and $0.5 million,
respectively. The increase in contributions for 2011 relates primarily to the acquisition of Meetic.
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