ServiceMagic 2012 Annual Report Download - page 110

IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
stock and all of its shares of Class B common stock, which were valued at $364.2 million based on the closing price of IAC common stock on
December 1, 2010.
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 . 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 Cash Flow Information:
During 2010, IAC received a dividend of $11.4 million from Meetic, which the Company deemed to be a partial return of its investment.
Accordingly, the dividend is reflected as a cash inflow from an investing activity in the accompanying consolidated statement of cash flows.
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. For the years
ended December 31, 2012 , 2011 and 2010 , transactions related to these agreements have 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. For the years ended December 31, 2012 , 2011 and 2010 , 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, 2012, 2011 and 2010 are $6.5 million , $5.0 million and $4.9 million , respectively. The increase in matching
contributions in 2012 is primarily related to increased participation in the plan. 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, 2012, 2011 and 2010 are $2.3 million , $1.4 million and $0.4 million ,
respectively. The increase in contributions for both 2012 and 2011 relates primarily to Meetic, consolidated beginning September 1, 2011.
Years Ended December 31,
2012
2011 2010
(In thousands)
Cash paid (received) during the year for:
Interest
$
5,214
$
5,128
$
5,113
Income tax payments
43,316
42,094
19,311
Income tax refunds
(8,187
)
(3,609
)
(72,198
)