EFTA01378089.pdf

tax years beginning with 2006. Income taxes payable include reserves considered sufficient to pay assessments that may result from examination of prior year tax returns. Changes to reserves from period to period and F-37 Table of Conteigt‘ differences between amounts paid, if any, upon the resolution of audits and amounts previously provided may be material. Differences between the reserves for income tax contingencies and the amounts owed by the Company are recorded in the period they become known. At December 31, 2013 and 2014, unrecognized tax benefits, including interest. are $12.4 million and $12.1 million. respectively. Included in unrecognized tax benefits at December 31, 2013 and 2014, is approximately $0.5 million and $0.7 million, respectively, for tax positions included in IAC's consolidated tax return filings. Unrecognized tax benefits, including interest, for the year ended December 31. 2014 decreased by $0.3 million due principally to foreign statute expirations. If unrecognized tax benefits at December 31. 2014 are subsequently recognized. $11.8 million, net of related deferred tax assets and interest. would reduce income tax expense. The comparable amount as of December 31, 2013 is $12.0 million. The Company believes that it is reasonably possible that its unrecognized tax benefits could decrease by approximately $1.2 million by December 31, 2015, primarily due to expirations of statutes of limitations. Note 4 —Goodwill and intangible assets Goodwill and intangible assets net are as follows December 31, 2013 2014 (In thousands) Goodwill $ 767.746 $ 793.763 Intangible assets with indefinite lives 167.543 180.558 Intangible assets with definite lives. net 11.819 27.055 Total goodwill and intangible assets, net $ 947.108 $ 1,001,376 The following lade presents the balance of goodwill, induding the changes In the carrying value of goodwill, for the year ended December 31. 2013: Balance at Foreign Balance at December 31, exchange December 31, 2012 Additions (Deductions) translation 2013 (In thousands) Dating $ 683.708 $ 62.419 $ — 4.878 S 751.005 Non-dating 27.535 45 (10,839) 16,741 Match Group, Inc. 711.243 $ 62,464 $ (10,839) $ 4.878 S 767.746 Additions primarily relate to the acquisition of Twoo. Deductions primarily relate to the establishment of a deferred tax asset related to Tutor.com's pre- acquisition net operating losses. F-38 Table of Contents The following table presents the balance of goodwill, including the changes in the carrying value of goodwill, for the year ended December 31. 2014. Balance at Foreign Balance at December 31, exchange December 31, 2013 Additions (Deductions) translation 2014 (In thousands) Dating S 751.005 $ 12,371 $ (350) $ (44.897) $ 718.t29 Non-dating 16,741 60.462 (1,581) 12 75.634 Match Group, Inc. 767,746 $ 72.833 $ (1.931) S (44,885) $ 793.763 Additions primanly relate to the acquisition of The Princeton Review. Intangible assets with indefinite lives are trade names and trademarks acquired in various acquisitions At December 31, 2013, Intangible assets with definite lives are as follows: Weighted- Gross average carrying Accumulated useful life amount amortization Net (years) (dollars In thousands) Customer lists 15.068 5 (7,037) $ 8,031 32 Technology 4.679 (2,326) 2,353 30 Trade names 2,679 (1,244) 1,435 24 Total $ 22,426 (10,607) $ 11,819 3.0 hap: vdwv. sec.gov daW1575189,00010474691500643112226458^-talfintiI 1,92013 911:17 AIM CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0075249 CONFIDENTIAL SONY GM_00221433 EFTA01378089