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Table of Contents
Depreciation
For the year ended December 31, 2013 compared to the year ended December 31, 2012
Depreciation in 2013 increased from 2012 resulting from the incremental depreciation associated with capital expenditures made
subsequent to 2012, various acquisitions and the write-off of $2.7 million in capitalized software costs at The About Group during the second
quarter of 2013 primarily related to projects that commenced prior to its acquisition, partially offset by certain fixed assets becoming fully
depreciated.
For the year ended December 31, 2012 compared to the year ended December 31, 2011
Depreciation in 2012 decreased from 2011 resulting primarily from certain fixed assets becoming fully depreciated in 2011 and the write-
off of $4.9 million in capitalized software costs associated with the exit of the Company's direct sponsored listings business in 2011, partially
offset by an increase in depreciation from Match, primarily related to Meetic, which was included for only part of the prior year.
Operating Income Before Amortization
For the year ended December 31, 2013 compared to the year ended December 31, 2012
Search & Applications Operating Income Before Amortization increased 17% to $367.7 million , benefiting from the higher revenue noted
above, partially offset by increases of $42.7 million in selling and marketing expense, $16.3 million in product development expense, $12.4
million in general and administrative expense and $10.1 million in cost of revenue. The increase in selling and marketing expense is primarily
due to new B2C downloadable applications and the inclusion of The About Group, beginning September 24, 2012. The increase in both product
development expense and general and administrative expense is primarily due to an increase in compensation and other employee-related costs
related to the inclusion of The About Group. Product development expense was also impacted by an increase in headcount related to new B2C
products. The increase in costs of revenue is primarily due to an increase in content acquisition costs resulting from the acquisition of The About
Group and the inclusion of CityGrid Media in the Search & Applications segment, effective July 1, 2013, partially offset by a decrease of $7.7
million in traffic acquisition costs driven primarily by decreased revenue from Ask.com. Search & Applications Operating Income Before
Amortization was further impacted in the current year by the write-
off of $2.7 million in capitalized software costs at The About Group primarily
related to projects that commenced prior to its acquisition.
Match Operating Income Before Amortization increased 16% to $262.2 million , primarily due to the revenue growth noted above,
partially offset by increases of $16.8 million in selling and marketing expense, $7.2 million in cost of revenue and $6.4 million in general and
and other employee-related costs due, in part, to an increase in headcount at Meetic and recent acquisitions. The increase in both cost of revenue
and general and administrative expense is primarily due to recent acquisitions. General and administrative expense was also impacted by an
increase in professional fees due, in part, to
28
Years Ended December 31,
2013
$ Change
% Change
2012
$ Change
% Change
2011
(Dollars in thousands)
Depreciation $58,909
$6,428
12%
$52,481
$(4,238)
(7)%
$56,719
As a percentage of revenue 2%
2%
3%
Years Ended December 31,
2013
$ Change
% Change
2012
$ Change
% Change
2011
(Dollars in thousands)
Search & Applications
$
367,674
$
54,528
17
%
$
313,146
$
108,166
53
%
$
204,980
Match
262,159
36,394
16
%
225,765
69,491
44
%
156,274
Local
13,023
(11,909
)
(48
)%
24,932
(3,352
)
(12
)%
28,284
Media
(28,157
)
16,670
37
%
(44,827
)
(28,982
)
(183
)%
(15,845
)
Other
(6,138
)
(43
)
(1
)%
(6,095
)
(3,596
)
(144
)%
(2,499
)
Corporate
(69,167
)
(1,210
)
(2
)%
(67,957
)
(5,170
)
(8
)%
(62,787
)
Total
$
539,394
$
94,430
21
%
$
444,964
$
136,557
44
%
$
308,407
As a percentage of revenue 18%
16%
15%