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Table of Contents
Operating income (loss)
________________________
NM = not meaningful
For the year ended December 31, 2014 compared to the year ended December 31, 2013
Operating income in 2014 decreased from 2013 due to the decrease of $54.2 million in Adjusted EBITDA described above and increases of
$6.6 million in non-cash compensation expense and $2.2 million in depreciation, partially offset by decreases of $13.7 million in acquisition-
related
contingent consideration fair value adjustments and $1.9 million in amortization of intangibles. The increase in non-
cash compensation expense was
primarily due to the issuance of equity awards since the prior year. The decrease in acquisition-related contingent consideration fair value
adjustments was principally related to changes in Twoo's forecast of earnings and operating metrics. The decrease in amortization of intangibles
was primarily related to lower amortization expense at Dating due to certain intangible assets becoming fully amortized, and the inclusion in the
prior year of a $3.4 million impairment charge associated with an indefinite-lived intangible asset related to the CityGrid restructuring, partially
offset by amortization of intangibles related to recent acquisitions.
At December 31, 2014, there was $113.2 million of unrecognized compensation cost, net of estimated forfeitures, related to all equity-based
awards, which is expected to be recognized over a weighted average period of approximately 2.4 years.
For the year ended December 31, 2013 compared to the year ended December 31, 2012
Operating income in 2013 increased from 2012 due to the increase of $100.9 million in Adjusted EBITDA described above and a decrease of
$32.6 million in non-cash compensation expense, partially offset by increases of $24.1 million in amortization of intangibles and $6.4 million in
depreciation. The decrease in non-cash compensation expense was primarily a result of the vesting of certain awards and an increase in the number
of awards forfeited as compared to the prior year. The increase in amortization of intangibles was primarily related to the acquisition of
The About Group and a $3.4 million impairment charge associated with an indefinite-lived intangible asset related to the CityGrid restructuring in
the second quarter of 2013.
Equity in losses of unconsolidated affiliates
Equity in losses of unconsolidated affiliates in 2014 increased from 2013 primarily due to the inclusion in the second quarter of 2014 of a $4.2
million other-than-temporary impairment charge on one of our investments following the sale of a majority of the investee's assets, partially offset
by reduced losses associated with our equity method investments.
Equity in losses of unconsolidated affiliates in 2013 decreased from 2012 due to the inclusion in 2012 of a non-cash charge of $18.6 million
related to the re-measurement of the carrying value of our equity method investment in The Daily Beast to fair value in connection with our
acquisition of a controlling interest.
Years Ended December 31,
2014
$ Change
% Change
2013
$ Change
% Change
2012
(Dollars in thousands)
Search & Applications
$
311,340
$
(28,777
)
(8
)%
$
340,117
$
34,473
11
%
$
305,644
The Match Group
240,912
12,757
6
%
228,155
27,989
14
%
200,166
Media
(40,177
)
(19,374
)
(93
)%
(20,803
)
26,099
56
%
(46,902
)
eCommerce
(1,257
)
(1,196
)
(1,979
)%
(61
)
(15,384
)
NM
15,323
Corporate
(132,091
)
(10,886
)
(9
)%
(121,205
)
29,458
20
%
(150,663
)
Total
$
378,727
$
(47,476
)
(11
)%
$
426,203
$
102,635
32
%
$
323,568
As a percentage of revenue 12%
14%
12%
Years Ended December 31,
2014
$ Change
% Change
2013
$ Change
% Change
2012
(Dollars in thousands)
Equity in losses of
unconsolidated affiliates $(9,697)
$(3,082)
(47)%
$(6,615)
$18,730
74%
$(25,345)