Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2012	Aug. 07, 2012
Document and Entity Information
Entity Registrant Name	Tree.com, Inc.
Entity Central Index Key	0001434621
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		11,376,807
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenue	$ 16,970	$ 16,931	$ 30,205	$ 30,850
Costs and expenses
Cost of revenue	803	1,322	1,599	2,529
Selling and marketing expense	10,969	15,241	21,621	30,771
General and administrative expense	5,831	5,199	10,634	10,671
Product development	756	751	1,530	1,997
Litigation settlements and contingencies	216	246	438	4,994
Restructuring expense (gain)	3	398	(61)	491
Amortization of intangibles	106	267	213	574
Depreciation	1,046	1,225	2,270	2,284
Asset impairments		29,250		29,250
Total costs and expenses	19,730	53,899	38,244	83,561
Operating loss	(2,760)	(36,968)	(8,039)	(52,711)
Other expense
Interest expense	(136)	(76)	(257)	(155)
Total other expense, net	(136)	(76)	(257)	(155)
Loss before income taxes	(2,896)	(37,044)	(8,296)	(52,866)
Income tax benefit	1,142	11,928	3,274	11,663
Net loss from continuing operations	(1,754)	(25,116)	(5,022)	(41,203)
Gain from sale of discontinued operations, net of tax	24,313		24,313
Income (loss) from operations of discontinued operations, net of tax	3,215	(9,389)	20,633	(32,797)
Income (loss) from discontinued operations	27,528	(9,389)	44,946	(32,797)
Net income (loss) attributable to common shareholders	$ 25,774	$ (34,505)	$ 39,924	$ (74,000)
Weighted average common shares outstanding (in shares)	11,303	11,014	11,238	10,948
Weighted average diluted shares outstanding (in shares)	11,303	11,014	11,238	10,948
Net loss per share from continuing operations
Basic (in dollars per share)	$ (0.16)	$ (2.28)	$ (0.45)	$ (3.76)
Diluted (in dollars per share)	$ (0.16)	$ (2.28)	$ (0.45)	$ (3.76)
Net income (loss) per share from discontinued operations
Basic (in dollars per share)	$ 2.44	$ (0.85)	$ 4.00	$ (3.00)
Diluted (in dollars per share)	$ 2.44	$ (0.85)	$ 4.00	$ (3.00)
Net income (loss) per share attributable to common shareholders
Basic (in dollars per share)	$ 2.28	$ (3.13)	$ 3.55	$ (6.76)
Diluted (in dollars per share)	$ 2.28	$ (3.13)	$ 3.55	$ (6.76)

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
ASSETS:
Cash and cash equivalents	$ 94,682	$ 45,541
Restricted cash and cash equivalents	30,025	12,451
Accounts receivable, net of allowance of $70 and $86, respectively	7,409	5,474
Prepaid and other current assets	1,839	1,060
Current assets of discontinued operations	5,453	232,425
Total current assets	139,408	296,951
Property and equipment, net	7,691	8,375
Goodwill	3,632	3,632
Intangible assets, net	10,976	11,189
Other non-current assets	224	246
Non-current assets of discontinued operations	236	10,947
Total assets	162,167	331,340
LIABILITIES:
Accounts payable, trade	4,625	9,072
Deferred revenue	1,443	176
Deferred income taxes	4,335	4,335
Accrued expenses and other current liabilities	15,446	16,712
Current liabilities of discontinued operations	43,053	250,030
Total current liabilities	68,902	280,325
Income taxes payable	7	7
Other long-term liabilities	4,953	4,070
Deferred income taxes	510	435
Non-current liabilities of discontinued operations	452	1,032
Total liabilities	74,824	285,869
Commitments and contingencies (Note 9)
SHAREHOLDERS' EQUITY:
Preferred stock $.01 par value; authorized 5,000,000 shares; none issued or outstanding
Common stock $.01 par value; authorized 50,000,000 shares; issued 12,498,283 and 12,169,226 shares, respectively, and outstanding 11,360,722 and 11,045,965 shares, respectively	125	121
Additional paid-in capital	914,060	911,987
Accumulated deficit	(818,181)	(858,105)
Treasury stock of 1,137,561 and 1,123,261 shares, respectively	(8,661)	(8,532)
Total shareholders' equity	87,343	45,471
Total liabilities and shareholders' equity	$ 162,167	$ 331,340

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance (in dollars)	$ 70	$ 86
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized shares	5,000,000	5,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	50,000,000	50,000,000
Common stock, issued shares	12,498,283	12,169,226
Common stock, outstanding shares	11,360,722	11,045,965
Treasury stock, shares	1,137,561	1,123,261

CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (USD $) In Thousands, unless otherwise specified	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Treasury Stock	Comprehensive Income
Balance at Dec. 31, 2011	$ 45,471	$ 121	$ 911,987	$ (858,105)	$ (8,532)
Balance (in shares) at Dec. 31, 2011		12,169			1,123
Comprehensive income:
Net income for the six months ended June 30, 2012	39,924			39,924		39,924
Comprehensive income	39,924					39,924
Non-cash compensation	2,425		2,425
Issuance of common stock upon exercise of stock options and vesting of restricted stock units, net of withholding taxes	(348)	4	(352)
Issuance of common stock upon exercise of stock options and vesting of restricted stock units, net of withholding taxes (in shares)		329
Purchase of treasury stock	(129)				(129)
Purchase of treasury stock (in shares)					15
Balance at Jun. 30, 2012	$ 87,343	$ 125	$ 914,060	$ (818,181)	$ (8,661)
Balance (in shares) at Jun. 30, 2012		12,498			1,138

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities attributable to continuing operations:
Net income (loss)	$ 39,924	$ (74,000)
Less (income) loss from discontinued operations, net of tax	(44,946)	32,797
Net loss from continuing operations	(5,022)	(41,203)
Adjustments to reconcile net loss from continuing operations to net cash used in operating activities attributable to continuing operations:
Loss on disposal of fixed assets	60	111
Amortization of intangibles	213	574
Depreciation	2,270	2,284
Intangible impairment		29,250
Non-cash compensation expense	2,256	1,908
Deferred income taxes	76	(11,687)
Bad debt expense (recovery)	(8)	19
Changes in current assets and liabilities:
Accounts receivable	(1,928)	(3,537)
Prepaid and other current assets	230	142
Accounts payable and other current liabilities	(6,033)	7,262
Income taxes payable	(855)	(28)
Deferred revenue	1,267	(231)
Other, net	884	195
Net cash used in operating activities attributable to continuing operations	(6,590)	(14,941)
Cash flows from investing activities attributable to continuing operations:
Capital expenditures	(1,459)	(4,138)
Increase in restricted cash	(4,647)	(1,466)
Net cash used in investing activities attributable to continuing operations	(6,106)	(5,604)
Cash flows from financing activities attributable to continuing operations:
Vesting and issuance of common stock, net of withholding taxes	(348)	(901)
Purchase of treasury stock	(129)
(Increase) decrease in restricted cash	4,150	(700)
Net cash provided by (used in) financing activities attributable to continuing operations	3,673	(1,601)
Total cash used in continuing operations	(9,023)	(22,146)
Net cash provided by (used in) operating activities attributable to discontinued operations	225,824	(16,817)
Net cash provided by (used in) investing activities attributable to discontinued operations	29,651	(9,211)
Net cash provided by (used in) financing activities attributable to discontinued operations	(197,311)	13,632
Total cash provided by (used in) discontinued operations	58,164	(12,396)
Net increase (decrease) in cash and cash equivalents	49,141	(34,542)
Cash and cash equivalents at beginning of period	45,541	68,819
Cash and cash equivalents at end of period	$ 94,682	$ 34,277

ORGANIZATION

6 Months Ended

Jun. 30, 2012

ORGANIZATION

ORGANIZATION

NOTE 1—ORGANIZATION

Company Overview

Tree.com, Inc. ("we", "Tree.com" or the "Company") is the parent of LendingTree, LLC, which owns several brands and businesses that provide information, tools, advice, products and services for critical transactions in consumers' lives. Our family of brands includes: LendingTree.com®, GetSmart®, DegreeTree®, LendingTreeAutos, DoneRight®, ServiceTree^SM, InsuranceTree® and HealthTree. Together, these brands serve as an ally for consumers who are looking to comparison shop for loans and other services from multiple businesses and professionals who will compete for their business. We refer to the collection of these brands and businesses as our Exchanges business, which comprises our continuing operations, as detailed herein.

Segment Reporting

Through the quarter ended March 31, 2011, we operated in two reportable business segments: LendingTree Loans and Exchanges. Until the completion on June 6, 2012 of the sale of substantially all of the operating assets of our LendingTree Loans business to a wholly-owned subsidiary of Discover Financial Services, discussed below and in Note 6, the LendingTree Loans segment originated, processed, approved and funded various residential real estate loans through Home Loan Center, Inc. dba LendingTree Loans ("HLC"). The business operated by HLC under the HLC and LendingTree Loans brand names is referred to in this report as "LendingTree Loans." Discover Financial Services and/or any of its affiliates are collectively referred to in this report as "Discover."

The Exchanges segment consists of online lead generation networks and call centers that connect consumers and service providers principally in the lending, higher education, automobile, home services and insurance marketplaces.

In connection with entering into the agreement in the second quarter of 2011 that provided for the sale of substantially all of the operating assets of our LendingTree Loans business, management re-evaluated its reporting segments based on our continuing operations and determined that our continuing operations were one reportable segment, which represents the previous "Exchanges" segment. Prior period results have been reclassified to conform with discontinued operations presentation and the change in reportable segments.

We maintain operations solely in the United States.

Discontinued Operations

The businesses of RealEstate.com and RealEstate.com, REALTORS® (which together represent the former Real Estate segment) and LendingTree Loans are presented as discontinued operations in the accompanying consolidated balance sheets and consolidated statements of operations and cash flows for all periods presented. The notes accompanying these consolidated financial statements reflect our continuing operations and, unless otherwise noted, exclude information related to the discontinued operations.

Real Estate

LendingTree Loans

On May 12, 2011, we entered into an asset purchase agreement, as amended by an amendment to the asset purchase agreement dated as of February 7, 2012, for the sale of substantially all of the operating assets of our LendingTree Loans business. We completed the sale on June 6, 2012.

The asset purchase agreement as amended provided for a purchase price of approximately $55.9 million in cash for the assets, subject to certain conditions. Of this total purchase price, $8.0 million was paid prior to the closing, $37.9 million was paid upon the closing and $10.0 million is due on the first anniversary of the closing, subject to us meeting certain conditions.

Discover generally did not assume liabilities of the LendingTree Loans business that arose before the closing date, except for certain liabilities directly related to assets Discover acquired. Approximately $17.1 million of the initial purchase price payment is being held in escrow pending resolution of certain actual and/or contingent liabilities that remain with us following the sale. The escrowed amount is recorded as restricted cash at June 30, 2012.

Separate from the asset purchase agreement, we agreed to provide certain marketing-related services to Discover in connection with its mortgage origination business for approximately seventeen months following the closing, or such earlier point as the agreed-upon services are satisfactorily completed. Discover is also now a participating lender in our lending network.

The unaudited pro forma financial information in the table below summarizes our results as if the sale of substantially all of the operating assets of LendingTree Loans had occurred as of January 1, 2011. The unaudited pro forma financial information is presented for informational purposes only and is not necessarily indicative of what the results would have been had the sale occurred as of January 1, 2011.

	Six Months Ended June 30, 2012			Six Months Ended June 30, 2011

Revenue	$	30,205		$	30,850
Net loss from continuing operations		(5,022	)		(41,203	)
Net loss attributable to common shareholders		(5,022	)		(41,203	)
Basic earnings per share attributable to common shareholders		(0.45	)		(3.76	)
Diluted earnings per share attributable to common shareholders		(0.45	)		(3.76	)

Business Combinations

On March 15, 2011, our wholly-owned subsidiary, HLC, completed its acquisition of certain assets of First Residential Mortgage Network, Inc. dba SurePoint Lending, pursuant to an asset purchase agreement dated November 15, 2010. SurePoint, a LendingTree network lender for eleven years, was a full-service residential mortgage provider licensed in 45 states and employed over 500 people, including more than 300 licensed loan officers. HLC purchased certain specified assets and assumed certain liabilities of SurePoint related to its business of originating, refinancing, processing, underwriting, funding and closing residential mortgage loans; providing title and escrow services; and providing other mortgage-related services. The acquired assets also included the equity interests of Real Estate Title Services, LLC. HLC paid $8.0 million in cash upon the closing of the transaction, subject to certain adjustments as described in the asset purchase agreement, and $0.2 million in cash for contingent consideration subsequent to the close. HLC used available cash to fund the acquisition.

This asset purchase was accounted for under the acquisition method of accounting. Accordingly, the purchase price was allocated to the acquired assets and liabilities based on their estimated fair values at the acquisition date. The purchase price was allocated as $5.6 million to goodwill, $0.7 million to intangible assets with useful lives of three months to five years, and $1.7 million to equipment and other assets. The pro forma effect of this purchase was not material to our results of operations.

Correction of an Error

As disclosed in our Form 10-K for the year ended December 31, 2011, during the process of preparing our financial statements for the year ended December 31, 2011, we determined that a $29.0 million impairment charge related to trade names and trademarks that we determined to exist as of October 1, 2011, as determined in our annual impairment testing, should have been recorded in the second quarter of 2011 pursuant to the impairment test we performed as a result of our entry into the asset purchase agreement for the sale of substantially all of the assets of our LendingTree Loans business. As a result of this error, certain previously reported amounts in the condensed consolidated financial statements for the quarter ended June 30, 2011 were materially misstated; accordingly we have restated the prior period financial statements.

The restated condensed consolidated statement of operations for the three months ended June 30, 2011 is as follows:

	As Previously Presented			Impairment Correction			As Restated

Asset impairments	$	250		$	29,000		$	29,250
Total costs and expenses		24,899			29,000			53,899
Operating loss		(7,968	)		(29,000	)		(36,968	)
Loss before income taxes		(8,044	)		(29,000	)		(37,044	)
Income tax provision		(37	)		11,965			11,928
Net loss from continuing operations		(8,081	)		(17,035	)		(25,116	)
Loss from operations of discontinued operations, net of tax		(9,737	)		348			(9,389	)
Loss from discontinued operations		(9,737	)		348			(9,389	)
Net loss attributable to common shareholders		(17,818	)		(16,687	)		(34,505	)
Basic and diluted net loss per share from continuing operations		(0.73	)		(1.55	)		(2.28	)
Basic and diluted net loss per share from discontinued operations		(0.89	)		0.04			(0.85	)
Basic and diluted net loss per share attributable to common shareholders		(1.62	)		(1.51	)		(3.13	)

The restated condensed consolidated statement of operations for the six months ended June 30, 2011 is as follows:

	As Previously Presented			Impairment Correction			As Restated

Asset impairments	$	250		$	29,000		$	29,250
Total costs and expenses		54,561			29,000			83,561
Operating loss		(23,711	)		(29,000	)		(52,711	)
Loss before income taxes		(23,866	)		(29,000	)		(52,866	)
Income tax provision		(302	)		11,965			11,663
Net loss from continuing operations		(24,168	)		(17,035	)		(41,203	)
Loss from operations of discontinued operations, net of tax		(33,145	)		348			(32,797	)
Loss from discontinued operations		(33,145	)		348			(32,797	)
Net loss attributable to common shareholders		(57,313	)		(16,687	)		(74,000	)
Basic and diluted net loss per share from continuing operations		(2.21	)		(1.55	)		(3.76	)
Basic and diluted net loss per share from discontinued operations		(3.04	)		0.04			(3.00	)
Basic and diluted net loss per share from attributable to common shareholders		(5.25	)		(1.51	)		(6.76	)

The restated cash flows from operating activities section of the condensed consolidated statement of cash flows for the six months ended June 30, 2011 are as follows:

	As Previously Presented			Impairment Correction			As Restated

Cash Flows from Operating Activities:
Net loss	$	(57,313	)	$	(16,687	)	$	(74,000	)
Less loss from discontinued operations, net of tax		33,145			348			32,797
Net loss from continuing operations		(24,168	)		(17,035	)		(41,203	)
Intangible impairment		250			29,000			29,250
Deferred income taxes		278			(11,965	)		(11,687	)

Basis of Presentation

The accompanying unaudited interim consolidated financial statements as of June 30, 2012 and 2011 and for the three and six months then ended have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for annual financial statements. In the opinion of management, the unaudited interim consolidated financial statements have been prepared on the same basis as the audited financial statements, and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of our financial position for the periods presented. The results for the three and six months ended June 30, 2012 are not necessarily indicative of the results to be expected for the year ending December 31, 2012, or any other period. These financial statements and notes should be read in conjunction with the audited financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2011.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

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+ Details

SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2012

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES

Accounting Estimates

Management is required to make certain estimates and assumptions during the preparation of the consolidated financial statements in accordance with GAAP. These estimates and assumptions impact the reported amount of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. They also impact the reported amount of net earnings during any period. Actual results could differ from those estimates.

Significant estimates underlying the accompanying consolidated financial statements, including discontinued operations, include: valuation allowance for impaired loans held for sale; loan loss obligations; the fair value of loans held for sale and related derivatives; the recoverability of long-lived assets, goodwill and intangible assets; the determination of income taxes payable and deferred income taxes, including related valuation allowances; restructuring reserves; contingent consideration related to business combinations; various other allowances, reserves and accruals; and assumptions related to the determination of stock-based compensation.

Reclassifications

Certain prior period amounts have been reclassified to conform with the current presentation with no effect on net income (loss) or accumulated deficit. Specifically, certain costs within continuing operations totaling $0.3 million and $0.5 million for the three and six months ended June 30, 2011, respectively, were reclassified from general and administrative expense to litigation settlements and contingencies. Prior period results have also been reclassified to conform with discontinued operations presentation.

Cash and Cash Equivalents

Cash and cash equivalents include cash and short-term, highly liquid money market investments with original maturities of three months or less.

Restricted Cash

Restricted cash and cash equivalents consists of the following (in thousands):

	June 30, 2012		December 31, 2011

Cash in escrow for loan loss obligations	$	20,127	$	—
Cash in escrow for surety bonds		6,500		6,500
Cash in escrow for corporate purchasing card program		800		800
Minimum required balances for warehouse lines of credit		100		4,250
Other		2,498		901

Total restricted cash and cash equivalents	$	30,025	$	12,451

Cash in escrow for loan loss obligations includes $17.1 million held in escrow pursuant to the asset purchase agreement for the sale of substantially all of the operating assets of our LendingTree Loans business, pending the resolution of certain actual and/or contingent liabilities that remain with us following the closing of such sale, and $3.0 million is held by an investor that purchased loans from LendingTree Loans to secure potential loan loss obligations.

Revenue Recognition

Revenue principally represents match fees and closed-loan fees paid by lenders that received a transmitted loan request and/or closed a loan for a consumer that originated through one of our websites or affiliates. Revenue also includes match fees paid by institutions of higher education and businesses and professionals in the automobile, home services and insurance industries for a transmitted lead or service request. Match fees are recognized at the time qualification forms are transmitted. Closed-loan fees are recognized at the time the lender reports the closed loan to us, which may be several months after the loan request is transmitted. Revenue also includes fees paid by advertisers on our websites. In addition, during the second quarter of 2012, we recognized approximately $1.1 million of revenue from marketing-related services provided to Discover discussed above.

Recent Accounting Pronouncements

In May 2011, the FASB issued amendments to the fair value accounting guidance. The amendments clarify the application of the highest and best use, and valuation premise concepts, preclude the application of blockage factors in the valuation of all financial instruments and include criteria for applying the fair value measurement principles to portfolios of financial instruments. The amendments additionally prescribe enhanced financial statement disclosures for Level 3 fair value measurements. The new amendments were effective on January 1, 2012. The adoption of this guidance did not have a material impact on our consolidated financial statements. See Note 6 for further information.

In September 2011, the FASB issued the updated accounting standard on testing goodwill for impairment. The update simplifies how an entity tests goodwill for impairment. The amendments allow both public and nonpublic entities an option to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. Under that option, an entity no longer would be required to calculate the fair value of a reporting unit unless the entity determines, based on that qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The amendments were effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The adoption of this guidance did not have a material impact on our consolidated financial statements.

In December 2011, the FASB issued new accounting guidance that requires additional disclosures on financial instruments and derivative instruments that are either offset in accordance with existing accounting guidance or are subject to an enforceable master netting arrangement or similar agreement. The new requirements do not change the accounting guidance on netting, but rather enhance the disclosures to more clearly show the impact of netting arrangements on a company's financial position. This new accounting guidance will be effective, on a retrospective basis for all comparative periods presented, beginning on January 1, 2013. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

In July 2012, the FASB issued new guidance which allows an entity to first assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. This assessment should be used as a basis for determining whether it is necessary to perform the quantitative impairment test. An entity would not be required to calculate the fair value of the intangible asset and perform the quantitative test unless the entity determines, based upon its qualitative assessment, that it is more likely than not that its fair value is less than its carrying value. The update expands previous guidance by providing more examples of events and circumstances that an entity should consider in determining whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount. The update also allows an entity the option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to performing the quantitative impairment test. An entity will be able to resume performing the qualitative assessment in any subsequent period. This update is effective for annual and interim periods beginning after September 15, 2012, with early adoption permitted. We are currently evaluating the effect of this new guidance.

- Definition

The entire disclosure for all significant accounting policies of the reporting entity.

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GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2012

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

NOTE 3—GOODWILL AND INTANGIBLE ASSETS

The balance of goodwill and intangible assets, net is as follows (in thousands):

	June 30, 2012		December 31, 2011

Goodwill	$	3,632	$	3,632

Intangible assets with indefinite lives	$	10,142	$	10,142
Intangible assets with definite lives, net		834		1,047

Total intangible assets, net	$	10,976	$	11,189

Intangible assets with indefinite lives relate principally to the LendingTree trademark.

At June 30, 2012, intangible assets with definite lives relate to the following (in thousands):

	Cost		Accumulated Amortization			Net

Purchase agreements	$	50,411	$	(50,317	)	$	94	5.0
Technology		25,194		(25,106	)		88	3.0
Customer lists		6,682		(6,075	)		607	4.2
Other		1,516		(1,471	)		45	2.5

Total	$	83,803	$	(82,969	)	$	834

At December 31, 2011, intangible assets with definite lives relate to the following (in thousands):

	Cost		Accumulated Amortization			Net

Purchase agreements	$	50,411	$	(50,293	)	$	118	5.0
Technology		25,194		(25,034	)		160	3.0
Customer lists		6,682		(6,045	)		637	4.2
Other		1,516		(1,384	)		132	2.5

Total	$	83,803	$	(82,756	)	$	1,047

Amortization of intangible assets with definite lives is computed on a straight-line basis and, based on June 30, 2012 balances, such amortization for the next five years is estimated to be as follows (in thousands):

	Amount

Six months ending December 31, 2012	$	145
Year ending December 31, 2013		147
Year ending December 31, 2014		86
Year ending December 31, 2015		60
Year ending December 31, 2016		60
Thereafter		336

Total	$	834

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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PROPERTY AND EQUIPMENT

6 Months Ended

Jun. 30, 2012

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

NOTE 4—PROPERTY AND EQUIPMENT

The balance of property and equipment, net is as follows (in thousands):

	June 30, 2012			December 31, 2011

Computer equipment and capitalized software	$	25,260		$	24,940
Leasehold improvements		2,055			2,042
Furniture and other equipment		1,488			1,450
Projects in progress		1,755			826

		30,558			29,258
Less: accumulated depreciation and amortization		(22,867	)		(20,883	)

Total property and equipment, net	$	7,691		$	8,375

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

6 Months Ended

Jun. 30, 2012

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

NOTE 5—ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consist of the following (in thousands):

	June 30, 2012		December 31, 2011

Litigation accruals	$	500	$	3,077
Accrued advertising expense		4,281		2,659
Accrued compensation and benefits		1,523		624
Accrued professional fees		1,738		635
Accrued restructuring costs		305		439
Customer deposits and escrows		1,865		2,211
Deferred rent		207		186
Other		5,027		6,881

Total accrued expenses and other current liabilities	$	15,446	$	16,712

The other category above reflects an earnout payable related to an acquisition, franchise taxes, self-insured health claims and other miscellaneous accrued expenses.

An additional $0.7 million and $0.9 million of accrued restructuring liabilities are classified in other long term liabilities at June 30, 2012 and December 31, 2011, respectively.

DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2012

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

NOTE 6—DISCONTINUED OPERATIONS

On March 10, 2011, management made the decision and finalized a plan to close all of the field offices of the proprietary full-service real estate brokerage business known as RealEstate.com, REALTORS®. We exited all markets by March 31, 2011. In September 2011, we sold the remaining assets of RealEstate.com, which consisted primarily of internet domain names and trademarks. Accordingly, these Real Estate businesses are presented as discontinued operations in the accompanying consolidated balance sheets and consolidated statements of operations and cash flows for all periods presented. No significant future cash flows are anticipated from the disposition of this business.

On May 12, 2011, we entered into an asset purchase agreement that provided for the sale of substantially all of the operating assets of our LendingTree Loans business to Discover. On February 7, 2012, we entered into an amendment to the asset purchase agreement. We completed the sale on June 6, 2012. Discover is now a participating lender in our lending network. We have evaluated the facts and circumstances of the transaction and the applicable accounting guidance for discontinued operations, and have concluded that the LendingTree Loans business should be reflected as discontinued operations in the accompanying consolidated balance sheets and consolidated statements of operations and cash flows for all periods presented. The continuing cash flows related to this transaction are not significant, and accordingly, are not deemed to be direct cash flows of the divested business.

We have agreed to indemnify Discover for a breach or inaccuracy of any representation, warranty or covenant made by us in the asset purchase agreement, for any liability of ours that was not assumed, for any claims by our stockholders against Discover and for our failure to comply with any applicable bulk sales law, subject to certain limitations. Discover has submitted a claim for indemnification relating to our sale prior to the closing of certain loans that were listed in the asset purchase agreement as to be conveyed to Discover at closing. We have evaluated this matter as a potential loss contingency, and have determined that it is probable that a loss could be incurred. We also evaluated a range of potential losses, and a reserve of $1.6 million has been established for this matter, which is reflected as a reduction in gain from sale of discontinued operations and in current liabilities of discontinued operations.

The revenue and net loss for the Real Estate businesses that are reported as discontinued operations for the applicable periods were as follows (in thousands):

	Three Months Ended June 30,

	2012			2011
Revenue	$	34		$	1,121

Loss before income taxes	$	(86	)	$	(192	)
Income tax provision		—			—

Net loss	$	(86	)	$	(192	)

	Six Months Ended June 30,

	2012			2011
Revenue	$	75		$	3,118

Loss before income taxes	$	(160	)	$	(16,298	)
Income tax provision		—			—

Net loss	$	(160	)	$	(16,298	)

Net loss for the six months ended June 30, 2011 includes goodwill disposal charges of $8.0 million, intangible asset impairment charges of $4.1 million and restructuring charges of $2.0 million.

The revenue and net income (loss) for LendingTree Loans that are reported as discontinued operations for the applicable periods were as follows (in thousands):

	Three Months Ended June 30,

	2012			2011
Revenue	$	30,529		$	25,382

Income (loss) before income taxes	$	3,467		$	(9,197	)
Income tax provision		(166	)		—
Gain from sale of discontinued operations, net of tax of $1,267 and $-0-		24,313			—

Net income (loss)	$	27,614		$	(9,197	)

	Six Months Ended June 30,

	2012			2011
Revenue	$	81,395		$	44,632

Income (loss) before income taxes	$	23,189		$	(16,499	)
Income tax provision		(2,396	)		—
Gain from sale of discontinued operations, net of tax of $1,267 and $-0-		24,313			—

Net income (loss)	$	45,106		$	(16,499	)

Net loss for the six months ended June 30, 2012 includes intangible asset impairment charges of $1.4 million. Net loss for the six months ended June 30, 2011 includes restructuring charges of $4.0 million.

The assets and liabilities of Real Estate that are reported as discontinued operations as of June 30, 2012 and December 31, 2011 were as follows (in thousands):

	June 30, 2012			December 31, 2011

Current assets	$	18		$	33

Current liabilities		301			702
Non-current liabilities		—			54

Net liabilities	$	(283	)	$	(723	)

The assets and liabilities of LendingTree Loans that are reported as discontinued operations as of June 30, 2012 and December 31, 2011 were as follows (in thousands):

	June 30, 2012			December 31, 2011

Loans held for sale	$	1,054		$	217,467
Other current assets		4,381			14,925

Current assets		5,435			232,392

Property and equipment		—			4,181
Goodwill		—			5,579
Other non-current assets		236			1,187

Non-current assets		236			10,947

Warehouse lines of credit		347			197,659
Other current liabilities		42,405			51,669

Current liabilities		42,752			249,328

Non-current liabilities		452			978

Net liabilities	$	(37,533	)	$	(6,967	)

Significant Assets and Liabilities of LendingTree Loans

Upon closing of the sale of substantially all of the operating assets of our LendingTree Loans business on June 6, 2012, LendingTree Loans ceased to originate consumer loans and no longer has additional borrowings available under the warehouse lines of credit. The remaining operations are being wound down. These wind-down activities include, among other things, selling the balance of loans held for sale to investors, which is substantially complete, and paying off and then terminating the warehouse lines of credit, which occurred on July 21, 2012. Additionally, liability for losses on previously sold loans will remain with LendingTree Loans. Below is a discussion of these significant items.

Loans Held for Sale

LendingTree Loans originated all of its residential real estate loans with the intent to sell them in the secondary market. Loans held for sale consist primarily of residential first mortgage loans that are secured by residential real estate throughout the United States.

The following table represents the loans held for sale by type of loan as of June 30, 2012 and December 31, 2011 ($ amounts in thousands):

	June 30, 2012					December 31, 2011

	Amount		%			Amount		%
Conforming	$	917		87	%	$	171,375		79	%
FHA		137		13	%		40,433		18	%
Jumbo		—		—	%		5,659		3	%

Total	$	1,054		100	%	$	217,467		100	%

The following presents the difference between the aggregate principal balance of loans on nonaccrual status for which the fair value option has been elected and for loans measured at lower of cost or market valuation as of June 30, 2012 and December 31, 2011 (in thousands):

	As of June 30, 2012

	Loans on Nonaccrual— Measured at Fair Value			Loans on Nonaccrual— Measured at LOCOM		Total Loans on Nonaccrual
Aggregate unpaid principal balance	$	211		$	—	$	211
Difference between fair value and aggregate unpaid principal balance		(44	)		—		(44	)

Loans on nonaccrual	$	167		$	—	$	167

	As of December 31, 2011

	Loans on Nonaccrual— Measured at Fair Value			Loans on Nonaccrual— Measured at LOCOM		Total Loans on Nonaccrual
Aggregate unpaid principal balance	$	539		$	—	$	539
Difference between fair value and aggregate unpaid principal balance		(244	)		—		(244	)

Loans on nonaccrual	$	295		$	—	$	295

There are no repurchased loans included within the loans on nonaccrual status at June 30, 2012 or December 31, 2011. During the six months ended June 30, 2012, LendingTree Loans repurchased two loans with a total unpaid principal balance of $0.7 million. During the six months ended June 30, 2011, LendingTree Loans did not repurchase any loans.

Fair Value Measurements

We categorize our assets and liabilities measured at fair value into a fair value hierarchy that prioritizes the assumptions used in pricing the asset or liability into the following three levels:

•

Level 1: Observable inputs such as quoted prices for identical assets and liabilities in active markets obtained from independent sources.

•

Level 2: Other inputs that are observable directly or indirectly, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs that are derived principally from or corroborated by observable market data.

•

Level 3: Unobservable inputs for which there is little or no market data and which require us to develop our own assumptions, based on the best information available in the circumstances, about the assumptions market participants would use in pricing the asset or liability.

A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Transfers in and out of Level 1, 2 or 3 are recorded at fair value at the beginning of the reporting period.

Following is a description of valuation methodologies used for instruments measured at fair value as well as the general classification of such instruments pursuant to the fair value hierarchy.

LendingTree Loans entered into commitments with consumers to originate loans at a specified interest rate (interest rate lock commitments—"IRLCs"). We reported IRLCs as derivative instruments at fair value with changes in fair value being recorded in discontinued operations. IRLCs for loans to be sold to investors using a mandatory or assignment of trade ("AOT") method were hedged using "to be announced mortgage-backed securities" ("TBA MBS") and were valued using quantitative risk models. The IRLCs derive their base value from an underlying loan type with similar characteristics using the TBA MBS market, which is actively quoted and easily validated through external sources. The most significant data inputs used in this valuation included, but were not limited to, loan type, underlying loan amount, note rate, loan program, and expected sale date of the loan. IRLCs for loans sold to investors on a best-efforts basis were hedged using best-efforts forward delivery commitments and were valued on an individual loan basis using a proprietary database program prior to January 1, 2012. These valuations were based on investor pricing tables stratified by product, note rate and term. The valuations were adjusted at the loan level to consider the servicing release premium and loan pricing adjustments specific to each loan. Effective January 1, 2012, LendingTree Loans began valuing IRLCs for loans sold to investors on a best-efforts basis using quantitative risk models on a loan level basis. The decision to modify the valuation calculation for IRLCs for loans sold on a best-efforts basis evolved from a desire to achieve principally two goals: 1) to include this portion of the IRLCs into the main operating system we use for fair value (known as QRM) allowing us to improve our estimate of loan funding probability and 2) to include elements of the all-in fair value that we could not previously calculate in the previous models. The most significant data inputs used in the valuation of these IRLCs included, but were not limited to, investor pricing tables stratified by product, note rate and term, adjusted for current market conditions. These valuations were adjusted at the loan level to consider the servicing release premium and loan pricing adjustments specific to each loan. LendingTree Loans applied an anticipated loan funding probability based on its own experience to value IRLCs, which resulted in the classification of these derivatives as Level 3. The value of the underlying loans and the anticipated loan funding probability were the most significant assumptions affecting the valuation of IRLCs. A significant change in the unobservable inputs could have resulted in a significant change in the ending fair value measurement.

Loans held for sale measured at fair value and sold to investors using a mandatory or AOT method were also hedged using TBA MBS and valued using quantitative risk models. The valuation was based on the loan amount, note rate, loan program and expected sale date of the loan. Loans held for sale measured at fair value and sold to investors on a best-efforts basis were hedged using best-efforts forward delivery commitments and were valued using a proprietary database program prior to January 1, 2012. The best-efforts valuations prior to that date were based on daily investor pricing tables stratified by product, note rate and term. These valuations were adjusted at the loan level to consider the servicing release premium and loan pricing adjustments specific to each loan. Effective January 1, 2012, LendingTree Loans began valuing the loans held for sale and sold to investors on a best-efforts basis using quantitative risk models. The most significant data inputs used in the valuation of these loans included investor pricing tables stratified by product, note rate and term, adjusted for current market conditions. Loans held for sale, excluding impaired loans, were classified as Level 2. Loans held for sale measured at fair value that become impaired were transferred from Level 2 to Level 3, as the estimate of fair value was based on LendingTree Loans' experience considering lien position and current status of the loan. A significant change in the unobservable inputs could have resulted in a significant change in the ending fair value measurement. LendingTree Loans recognized interest income separately from other changes in fair value.

Under LendingTree Loans' risk management policy, LendingTree Loans economically hedged the changes in fair value of IRLCs and loans held for sale caused by changes in interest rates by using TBA MBS and entering into best-efforts forward delivery commitments. These hedging instruments were recorded at fair value with changes in fair value recorded in current earnings as a component of revenue from the origination and sale of loans. TBA MBS used to hedge both IRLCs and loans were valued using quantitative risk models based primarily on inputs related to characteristics of the MBS stratified by product, coupon and settlement date. These derivatives were classified as Level 2. Prior to January 1, 2012, best-efforts forward delivery commitments were valued using a proprietary database program using investor pricing tables considering the current base loan price. Effective January 1, 2012, best-efforts forward delivery commitments were valued using quantitative risk models based on investor pricing tables stratified by product, note rate and term, adjusted for current market conditions. An anticipated loan funding probability was applied to value best-efforts commitments hedging IRLCs, which resulted in the classification of these contracts as Level 3. The current base loan price and the anticipated loan funding probability were the most significant assumptions affecting the value of the best-efforts commitments. A significant change in the unobservable inputs could have resulted in a significant change in the ending fair value measurement. The best-efforts forward delivery commitments hedging loans held for sale were classified as Level 2, so such contracts were transferred from Level 3 to Level 2 at the time the underlying loan was originated. For the purposes of the tables below, we refer to TBA MBS and best-efforts forward delivery commitments collectively as "Forward Delivery Contracts".

Assets and liabilities measured at fair value on a recurring basis

The following presents our assets and liabilities that are measured at fair value on a recurring basis at June 30, 2012 and December 31, 2011 (in thousands):

	As of June 30, 2012

	Recurring Fair Value Measurements Using
	Quoted Market Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total Fair Value Measurements
Loans held for sale	$	—	$	887		$	167	$	1,054
Forward delivery contracts		—		(2,192	)		—		(2,192	)

Total	$	—	$	(1,305	)	$	167	$	(1,138	)

	As of December 31, 2011

	Recurring Fair Value Measurements Using
	Quoted Market Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total Fair Value Measurements
Loans held for sale	$	—	$	217,172		$	295	$	217,467
Interest rate lock commitments ("IRLCs")		—		—			9,122		9,122
Forward delivery contracts		—		(4,107	)		19		(4,088	)

Total	$	—	$	213,065		$	9,436	$	222,501

The following presents the changes in our assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2012 and 2011 (in thousands):

	Three Months Ended June 30, 2012

	Interest Rate Lock Commitments			Forward Delivery Contracts			Loans Held for Sale
Balance at April 1, 2012	$	9,849		$	132		$	412
Transfers into Level 3		—			—			211
Transfers out of Level 3		—			(329	)		—
Total net gains (losses) included in earnings (realized and unrealized)		30,991			218			215
Purchases, sales, and settlements
Purchases		—			—			—
Sales		(5,640	)		(21	)		(581	)
Settlements		(766	)		—			(90	)
Transfers of IRLCs to closed loans		(34,434	)		—			—

Balance at June 30, 2012	$	—		$	—		$	167

	Six Months Ended June 30, 2012

	Interest Rate Lock Commitments			Forward Delivery Contracts			Loans Held for Sale
Balance at January 1, 2012	$	9,122		$	19		$	295
Transfers into Level 3		—			—			440
Transfers out of Level 3		—			(845	)		—
Total net gains (losses) included in earnings (realized and unrealized)		73,378			847			233
Purchases, sales, and settlements
Purchases		—			—			—
Sales		(5,640	)		(21	)		(581	)
Settlements		(3,401	)		—			(220	)
Transfers of IRLCs to closed loans		(73,459	)		—			—

Balance at June 30, 2012	$	—		$	—		$	167

	Three Months Ended June 30, 2011

	Interest Rate Lock Commitments			Forward Delivery Contracts		Loans Held for Sale
Balance at April 1, 2011	$	5,628		$	112	$	962
Transfers into Level 3		—			—		325
Transfers out of Level 3		—			70		—
Total net gains (losses) included in earnings (realized and unrealized)		25,226			38		29
Purchases, sales, and settlements
Purchases		—			—		—
Sales		—			—		(283	)
Settlements		(2,555	)		—		(172	)
Transfers of IRLCs to closed loans		(22,021	)		—		—

Balance at June 30, 2011	$	6,278		$	220	$	861

	Six Months Ended June 30, 2011

	Interest Rate Lock Commitments			Forward Delivery Contracts			Loans Held for Sale
Balance at January 1, 2011	$	5,986		$	3		$	884
Transfers into Level 3		—			—			660
Transfers out of Level 3		—			42			—
Total net gains (losses) included in earnings (realized and unrealized)		41,167			233			(3	)
Purchases, sales, and settlements
Purchases(a)		970			(58	)		—
Sales		—			—			(503	)
Settlements		(5,997	)		—			(177	)
Transfers of IRLCs to closed loans		(35,848	)		—			—

Balance at June 30, 2011	$	6,278		$	220		$	861

(a): Purchased in conjunction with the acquisition of certain assets of SurePoint.

The following presents the gains (losses) included in earnings for the three and six months ended June 30, 2012 and 2011 relating to our assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands):

	Three Months Ended June 30, 2012							Six Months Ended June 30, 2012

	Interest Rate Lock Commitments		Forward Delivery Contracts		Loans Held for Sale			Interest Rate Lock Commitments		Forward Delivery Contracts		Loans Held for Sale
Total net gains included in earnings, which are included in discontinued operations	$	30,991	$	218	$	215		$	73,378	$	847	$	233

Change in unrealized losses relating to assets and liabilities still held at June 30, 2012, which are included in discontinued operations	$	—	$	—	$	(44	)	$	—	$	—	$	(44	)

	Three Months Ended June 30, 2011							Six Months Ended June 30, 2011

	Interest Rate Lock Commitments		Forward Delivery Contracts		Loans Held for Sale			Interest Rate Lock Commitments		Forward Delivery Contracts		Loans Held for Sale
Total net gains (losses) included in earnings, which are included in discontinued operations	$	25,226	$	38	$	29		$	41,167	$	233	$	(3	)

Change in unrealized gains (losses) relating to assets and liabilities still held at June 30, 2011, which are included in discontinued operations	$	6,278	$	220	$	(96	)	$	6,278	$	220	$	(95	)

The following table summarizes our derivative instruments not designated as hedging instruments as of June 30, 2012 and December 31, 2011 (in thousands):

	June 30, 2012				December 31, 2011

	Balance Sheet Location	Fair Value			Balance Sheet Location	Fair Value
Interest Rate Lock Commitments	Current assets of discontinued operations	$	—		Current assets of discontinued operations	$	9,282
Forward Delivery Contracts	Current assets of discontinued operations		1,470		Current assets of discontinued operations		480
Interest Rate Lock Commitments	Current liabilities of discontinued operations		—		Current liabilities of discontinued operations		(160	)
Forward Delivery Contracts	Current liabilities of discontinued operations		(3,662	)	Current liabilities of discontinued operations		(4,568	)

Total Derivatives		$	(2,192	)		$	5,034

The gain (loss) recognized in the consolidated statements of operations for derivatives for the three and six months ended June 30, 2012 and 2011 was as follows (in thousands):

		Three Months Ended					Six Months Ended

	Location of Gain/(Loss) Recognized in Income on Derivative	June 30, 2012			June 30, 2011		June 30, 2012		June 30, 2011
Interest Rate Lock Commitments	Discontinued operations	$	30,991		$	25,226	$	73,378	$	41,166
Forward Delivery Contracts	Discontinued operations		(2,510	)		348		2,051		(556	)

Total		$	28,481		$	25,574	$	75,429	$	40,610

Assets and liabilities under the fair value option

LendingTree Loans has elected to account for loans held for sale originated on or after January 1, 2008 at fair value. Electing the fair value option allows a better offset of the changes in fair values of the loans and the forward delivery contracts used to economically hedge them without the burden of complying with the requirements for hedge accounting.

LendingTree Loans did not elect the fair value option on loans held for sale originated prior to January 1, 2008 and on loans that were repurchased from investors on or subsequent to that date. As of June 30, 2012 and December 31, 2011, there were no loans held for sale or carried at the lower of cost or market ("LOCOM") value assessed on an individual loan basis.

The following presents the difference between the aggregate principal balance of loans held for sale for which the fair value option has been elected and for loans measured at LOCOM as of June 30, 2012 and December 31, 2011 (in thousands):

	As of June 30, 2012

	Loans Held for Sale— Measured at Fair Value		Loans Held for Sale— Measured at LOCOM		Total Loans Held For Sale
Aggregate unpaid principal balance	$	1,038	$	—	$	1,038
Difference between fair value and aggregate unpaid principal balance		16		—		16

Loans held for sale	$	1,054	$	—	$	1,054

	As of December 31, 2011

	Loans Held for Sale— Measured at Fair Value		Loans Held for Sale— Measured at LOCOM		Total Loans Held For Sale
Aggregate unpaid principal balance	$	208,918	$	—	$	208,918
Difference between fair value and aggregate unpaid principal balance		8,549		—		8,549

Loans held for sale	$	217,467	$	—	$	217,467

During the six months ended June 30, 2012 and 2011, the change in fair value of loans held for sale for which the fair value option was elected was a gain of $3.1 million and $0.5 million, respectively, and is included in discontinued operations in the accompanying consolidated statements of operations.

Significant unobservable inputs for assets and liabilities measured at fair value on a recurring basis and non-recurring basis

The table below presents quantitative information about the significant unobservable inputs for assets and liabilities measured at fair value on a recurring and non-recurring basis as of June 30, 2012 (dollars in thousands):

	Quantitative Information about Level 3 Fair Value Measurements

	Fair Value as of June 30, 2012		Valuation Technique	Significant Unobservable Input	Range (Weighted Average)
Impaired loans—fair value option elected	$	167	Estimated Investor Bid	NA	NA

Loan Loss Obligations

LendingTree Loans sold loans it originated to investors on a servicing-released basis so the risk of loss or default by the borrower was generally transferred to the investor. However, LendingTree Loans was required by these investors to make certain representations and warranties relating to credit information, loan documentation and collateral. These representations and warranties may extend through the contractual life of the loan. Subsequent to the loan sale, if underwriting deficiencies, borrower fraud or documentation defects are discovered in individual loans, LendingTree Loans may be obligated to repurchase the respective loan or indemnify the investors for any losses from borrower defaults if such deficiency or defect cannot be cured within the specified period following discovery.

In the case of early loan payoffs and early defaults on certain loans, LendingTree Loans may be required to repay all or a portion of the premium initially paid by the investor. The estimated obligation associated with early loan payoffs and early defaults is calculated based on historical loss experience by type of loan.

The obligation for losses related to the representations and warranties and other provisions discussed above is initially recorded at its estimated fair value, which includes a projection of expected future losses as well as a market-based premium. Because LendingTree Loans does not service the loans it sells, it does not maintain nor have access to the current balances and loan performance data with respect to the individual loans previously sold to investors. Accordingly, LendingTree Loans is unable to determine, with precision, its maximum exposure for breaches of the representations and warranties it makes to the investors that purchase such loans. However, LendingTree Loans utilizes the original loan balance (before it was sold to an investor), historical and projected loss frequency and loss severity ratios by loan type as well as analyses of losses in process to estimate its exposure to losses on loans previously sold. LendingTree Loans maintains a liability related to this exposure based, in part, on historical and projected loss frequency and loss severity using its loan loss history (adjusted for recent trends in loan loss experience), the original principal amount of the loans previously sold, the years the loans were sold and loan types. Accordingly, subsequent adjustments to the obligation, if any, are not made based on changes in the fair value of the obligation, which might include an estimated change in losses that may be expected in the future, but are made once further losses are determined to be both probable and estimable. As such, given current general industry trends in mortgage loans as well as housing prices, market expectations around losses related to LendingTree Loans' obligations could vary significantly from the obligation recorded as of the balance sheet date or the range estimated below. In estimating its exposure to loan losses, LendingTree Loans segments its loan sales into four segments based on the extent of the documentation provided by the borrower to substantiate income and/or assets (full or limited documentation) and the lien position of the mortgage in the underlying property (first or second position). Each of these segments has a different loss experience, with full documentation, first lien position loans generally having the lowest loss ratios, and limited documentation, second lien position loans generally having the highest loss ratios.

Tree.com has guaranteed certain loans sold to two investors in the event that LendingTree Loans is unable to satisfy its repurchase and warranty obligations related to such loans. The original principal balance of the loans sold to one of these investors is approximately $1.8 billion and $1.5 billion as of June 30, 2012 and December 31, 2011, respectively. The unpaid principal balance of the loans sold to the second investor is approximately $228.6 million and $32.4 million as of June 30, 2012 and December 31, 2011, respectively.

The following table represents the loans sold for the period shown and the aggregate loan losses through June 30, 2012:

	As of June 30, 2012

Period of Loan Sales	Number of loans sold		Original principal balance		Number of loans with losses		Original principal balance of loans with losses		Amount of aggregate losses
			(in billions)				(in millions)		(in millions)
Six months ended June 30, 2012		9,200	$	1.9		—	$	—	$	—
2011		12,500		2.7		1		0.3		0.1
2010		12,400		2.8		4		1.1		0.1
2009		12,800		2.8		4		0.9		0.1
2008		11,000		2.2		33		6.9		2.2
2007		36,300		6.1		160		22.1		8.2
2006		55,000		7.9		207		24.5		13.4
2005 and prior years		86,700		13.0		89		12.3		5.0

Total		235,900	$	39.4		498	$	68.1	$	29.1

The pipeline of 342 requests for loan repurchases and indemnifications was considered in determining the appropriate reserve amount. The status of these loans varied from an initial review stage, which may result in a rescission of the request, to in-process, where the probability of incurring a loss is high, to indemnification, whereby LendingTree Loans has agreed to reimburse the purchaser of that loan if and when losses are incurred. The indemnification obligation may have a specific term, thereby limiting the exposure to LendingTree Loans. The original principal amount of these loans is approximately $66.4 million, comprised of approximately 68% full documentation first liens, 2% full documentation second liens, 26% limited documentation first liens, and 4% limited documentation second liens.

In the fourth quarter of 2009, LendingTree Loans entered into settlement negotiations with two buyers of previously purchased limited documentation loans. The settlement with one buyer was completed in December 2009 and included a payment of $1.9 million related to all second lien loans sold to this buyer, including both full and limited documentation. The settlement was included as a charge-off to the reserve in 2009. Negotiations with the second buyer were completed in January 2010. This settlement of $4.5 million, which was paid in four equal quarterly installments in 2010, relates to all future losses on limited documentation second lien loans sold to this buyer. LendingTree Loans was also required to pay an additional amount of up to $0.3 million in conjunction with this settlement since it did not sell a certain volume of loans to this buyer in 2010. The entire $4.8 million is included in the total settlement amount and was included as a charge-off to the reserve in 2010. The $0.3 million additional liability was recorded as a separate liability from the loss reserve at December 31, 2011, and was paid in January 2012. In the second quarter of 2012, LendingTree Loans completed a settlement with a third buyer of previously purchased loans. This settlement of $3.3 million relates to substantially all future losses on loans sold to this buyer. The settlement amount was included as a charge-off to the reserve in the second quarter of 2012. The settlement amounts for all three of these settlements were not determined on an individual loan basis and are, therefore, not included in the loss amounts disclosed above for the years such loans were sold.

In December 2011, LendingTree Loans agreed to a $1.2 million settlement related to specific loans, which was included as a charge-off to the reserve in 2011 and is included in the table above. This $1.2 million settlement was recorded as a liability separate from the loss reserve at December 31, 2011, and was paid in January 2012.

Based on historical experience, it is anticipated that LendingTree Loans will continue to receive repurchase requests and incur losses on loans sold in prior years. However, the three settlements discussed above will substantially eliminate future repurchase requests from those buyers for the loan types included in those settlements. As of June 30, 2012, LendingTree Loans estimated the range of remaining possible losses due to breach of representations and warranties based on the methodology described above as $30 million to $40 million. We believe that we have adequately reserved for these losses.

The activity related to loss reserves on previously sold loans for the three and six months ended June 30, 2012 and 2011, is as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,

	2012			2011			2012			2011
Balance, beginning of period	$	33,503		$	20,038		$	31,512		$	16,984
Provisions		3,918			4,312			6,384			7,562
Charge offs to reserves		(4,325	)		(33	)		(4,800	)		(229	)

Balance, end of period	$	33,096		$	24,317		$	33,096		$	24,317

The liability for losses on previously sold loans is presented as current liabilities of discontinued operations in the accompanying consolidated balance sheet.

We continue to be liable for indemnification obligations, repurchase obligations and premium repayment obligations following the sale of substantially all of the operating assets of the LendingTree Loans business. $17.1 million of the initial purchase price is being held in escrow pending resolution of certain of these contingent liabilities. We plan to negotiate with secondary market purchasers to settle any then-existing and future contingent liabilities, but we may not be able to do so on acceptable terms, or at all.

Warehouse Lines of Credit

Borrowings on warehouse lines of credit were $0.3 million and $197.7 million at June 30, 2012 and December 31, 2011, respectively.

As of June 30, 2012, LendingTree Loans had two committed lines of credit and one uncommitted line of credit totaling $325.0 million of borrowing capacity. Borrowings under these lines of credit were used to fund, and were secured by, consumer residential loans that are held for sale. Loans under these lines of credit were repaid using proceeds from the sales of loans by LendingTree Loans. As a result of the closing of the sale of substantially all of the operating assets of our LendingTree Loans business on June 6, 2012, all three warehouse lines of credit expired and terminated on July 21, 2012.

The $125.0 million first line was scheduled to expire on the earliest of (i) forty-five days after the closing date of the sale of substantially all of the operating assets of our LendingTree Loans Business or (ii) October 25, 2012. Accordingly, this line expired on July 21, 2012. This line was also guaranteed by Tree.com, LendingTree, LLC and LendingTree Holdings Corp. The interest rate under this first line was the 30-day adjusted LIBOR or 2.0% (whichever was greater) plus 1.5% to 1.75% for loans being sold to the lender and 30-day adjusted LIBOR or 2.0% (whichever was greater) plus 1.5% for loans not being sold to the lender.

The $100.0 million second line was scheduled to expire on the earliest of (i) forty-five days after the closing date of the sale of substantially all of the operating assets of our LendingTree Loans business or (ii) August 20, 2012. Accordingly, this line expired on July 21, 2012. This line was guaranteed by Tree.com and LendingTree, LLC. The interest rate under this line was 30-day LIBOR (subject to adjustment) plus 3.25%.

The $100.0 million third line was scheduled to expire on the earliest of (i) forty-five days after the closing date of the sale of substantially all of the operating assets of our LendingTree Loans business or (ii) January 4, 2013. Accordingly, this line expired on July 21, 2012. This line was guaranteed by Tree.com, LendingTree, LLC and LendingTree Holdings Corp. The interest rate under this line was the overnight interest rate incurred by the lender for borrowing funds plus 3.25% to 3.75% for most loans.

Under the terms of these lines, LendingTree Loans was required to maintain various financial and other covenants, and was restricted from paying dividends under the terms of the first two lines. These financial covenants included, but were not limited to, maintaining (i) for the first two lines, minimum tangible net worth of $25.0 million, and for the third line, minimum adjusted net worth equaling the sum of $20.0 million plus 50% of the positive quarterly net income for the three months prior to any date of determination, (ii) minimum liquidity, (iii) a minimum current ratio, (iv) a maximum ratio of total liabilities to net worth, (v) a minimum unrestricted cash amount, (vi) pre-tax net income requirements, (vii) for the first two lines, a maximum warehouse capacity ratio and (viii) for the third line, a minimum of one additional warehouse line. LendingTree Loans was in compliance with all covenants as of June 30, 2012.

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

EARNINGS PER SHARE AND STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2012

EARNINGS PER SHARE AND STOCK-BASED COMPENSATION

EARNINGS PER SHARE AND STOCK-BASED COMPENSATION

NOTE 7—EARNINGS PER SHARE AND STOCK-BASED COMPENSATION

The following table sets forth the computation of Basic and Diluted earnings per share:

	Three Months Ended June 30,

	2012						2011
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Loss from continuing operations	$	(1,754	)	$	(1,754	)	$	(25,116	)	$	(25116	)
Income (loss) from discontinued operations, net of tax		27,528			27,528			(9,389	)		(9,389	)

Net income (loss) attributable to common shareholders	$	25,774		$	25,774		$	(34,505	)	$	(34,505	)

Denominator:
Weighted average common shares		11,303			11,303			11,014			11,014

Income (loss) per share:
Loss from continuing operations	$	(0.16	)	$	(0.16	)	$	(2.28	)	$	(2.28	)
Income (loss) from discontinued operations, net of tax		2.44			2.44			(0.85	)		(0.85	)

Net income (loss) per common share	$	2.28		$	2.28		$	(3.13	)	$	(3.13	)

	Six Months Ended June 30,

	2012						2011
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Loss from continuing operations	$	(5,022	)	$	(5,022	)		(41,203	)		(41,203	)
Income (loss) from discontinued operations, net of tax		44,946			44,946			(32,797	)		(32,797	)

Net loss available to common shareholders	$	39,924		$	39,924		$	(74,000	)	$	(74,000	)

Denominator:
Weighted average common shares		11,238			11,238			10,948			10,948

Income (loss) per share:
Loss from continuing operations	$	(0.45	)	$	(0.45	)	$	(3.76	)	$	(3.76	)
Income (loss) from discontinued operations, net of tax		4.00			4.00			(3.00	)		(3.00	)

Net income (loss) per common share	$	3.55		$	3.55		$	(6.76	)	$	(6.76	)

The sum of the first and second quarter 2012 diluted earnings per share from discontinued operations does not equal the year-to-date total due to a revision of approximately $0.03 per share to the first quarter amount. The impact of this correction is considered immaterial to the previously reported financial statements.

For the three and six months ended June 30, 2012 and 2011, we had losses from continuing operations and, as a result, no potentially dilutive securities were included in the denominator for computing diluted earnings per share because the impact would have been anti-dilutive. Accordingly, the weighted average basic shares outstanding were used to compute all earnings per share amounts. For the three months ended June 30, 2012 and 2011, approximately 0.5 million and 0.1 million shares, respectively, related to potentially dilutive securities were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. For the six months ended June 30, 2012 and 2011, approximately 0.3 million and 0.1 million shares, respectively, related to potentially dilutive securities were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.

Non-cash compensation expense related to equity awards is included in the following line items in the accompanying consolidated statements of operations for the three and six months ended June 30, 2012 and 2011 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,

	2012		2011		2012		2011
Cost of revenue	$	1	$	1	$	4	$	3
Selling and marketing expense		202		105		359		265
General and administrative expense		761		624		1,636		1,485
Product development		108		58		257		155

Non-cash compensation expense	$	1,072	$	788	$	2,256	$	1,908

The forms of stock-based awards granted to our employees are principally restricted stock units ("RSUs"), restricted stock and stock options. RSUs are awards in the form of units, denominated in a hypothetical equivalent number of shares of our common stock and with the value of each award equal to the fair value of our common stock at the date of grant. RSUs may be settled in cash, stock or both, as determined by the compensation committee of our board of directors at the time of grant. Each stock-based award is subject to service-based vesting, where a specific period of continued employment must pass before an award vests. Certain restricted stock awards also include performance-based vesting, where certain performance targets set at the time of grant must be achieved before an award vests. We recognize expense for all stock-based awards for which vesting is considered probable. For stock-based awards, the accounting charge is measured at the grant date as the fair value of the shares of our common stock subject to the award and expensed ratably as non-cash compensation over the vesting term. For performance-based awards, the expense is measured at the grant date as the fair value of the shares of our common stock subject to the award and expensed as non-cash compensation over the vesting period if the performance targets are considered probable of being achieved.

The amount of stock-based compensation expense recognized in the consolidated statement of operations is reduced by estimated forfeitures, as the amount recorded is based on awards ultimately expected to vest. The forfeiture rate is estimated at the grant date based on historical experience and revised, if necessary, in subsequent periods if the actual forfeiture rate differs from the estimated rate.

A summary of changes in outstanding stock options for the six months ended June 30, 2012 is as follows:

			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value

					(In years)		(In thousands)
Outstanding at January 1, 2012	1,046,746		$	9.09
Granted	150,000			7.43
Exercised	(63,063	)		7.30
Forfeited	—			—
Expired	(19,740	)		11.39

Outstanding at June 30, 2012	1,113,943		$	8.93		6.1	$	3,515

Options exercisable at June 30, 2012	271,513		$	11.89		4.5	$	597

The following table summarizes the information about stock options outstanding and exercisable as of June 30, 2012:

	Options Outstanding						Options Exercisable

Range of Exercise Prices	Outstanding at June 30, 2012		Weighted Average Remaining Contractual Life in Years		Weighted Average Exercise Price		Exercisable at June 30, 2012		Weighted Average Exercise Price
$.01 to $4.99		4,892		1.3	$	3.27		4,892	$	3.27
$5.00 to $7.45		308,556		9.1		6.64		55,976		5.95
$7.46 to $9.99		653,033		5.5		8.39		63,183		7.58
$10.00 to $14.99		19,909		2.3		12.21		19,909		12.21
$15.00 to $19.99		80,890		2.9		15.02		80,890		15.02
$20.00 to $24.99		46,663		2.9		20.19		46,663		20.19

		1,113,943		6.1	$	8.93		271,513	$	11.89

Included in the table above, on March 1, 2012 our Chairman and CEO was granted an option to purchase up to 150,000 shares of our common stock that vests in three equal installments beginning on March 1, 2013. The weighted average exercise price and the weighted average fair value related to this stock option were $7.43 and $3.63, respectively.

Nonvested RSUs and restricted stock outstanding as of June 30, 2012 and changes during the six months ended June 30, 2012 were as follows:

	RSUs					Restricted Stock

	Number of Shares			Weighted Average Grant Date Fair Value		Number of Shares			Weighted Average Grant Date Fair Value
Nonvested at January 1, 2012		933,051		$	6.48		299,642		$	6.70
Granted		92,972			6.75		—			—
Vested		(284,594	)		6.97		(112,142	)		5.45
Forfeited		(38,139	)		6.31		—			—

Nonvested at June 30, 2012		703,290		$	6.38		187,500		$	7.44

INCOME TAXES

6 Months Ended

Jun. 30, 2012

INCOME TAXES

INCOME TAXES

NOTE 8—INCOME TAXES

For the three months ended June 30, 2012 and 2011, we recorded a tax benefit of $1.1 million and $11.9 million, respectively, which represents effective tax rates of 39.5% and 32.2%, respectively. For the six months ended June 30, 2012 and 2011, we recorded a tax benefit of $3.3 million and $11.7 million, respectively, which represents effective tax rates of 39.5% and 22.1%, respectively. For the three and six months ended June 30, 2012, our tax rate is higher than the federal statutory rate of 35% primarily due to the impact of state income taxes. For the three and six months ended June 30, 2011, our tax rate was lower than the federal statutory rate of 35% due to a change in the valuation allowance on deferred tax assets, partially offset by the tax impact of an impairment charge related to an intangible asset.

For the three and six months ended June 30, 2012 and 2011, we used the standard method of calculating a projected annual tax rate to determine the current period's tax provision. We are recognizing the tax effect of discontinued operations discretely in the interim period and in accordance with the intra-period accounting rules. An offsetting tax benefit is recorded in continuing operations in the interim period.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 136, 172

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 43, 44, 45, 46, 47, 48, 49

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

CONTINGENCIES

6 Months Ended

Jun. 30, 2012

CONTINGENCIES

CONTINGENCIES

NOTE 9—CONTINGENCIES

During the six months ended June 30, 2012 and 2011, provisions for litigation settlements and contingencies of $0.4 million and $5.0 million, respectively, were recorded in litigation settlements and contingencies in the accompanying consolidated statements of operations. The balance of the related liability was $0.5 million and $3.1 million at June 30, 2012 and December 31, 2011, respectively. The litigation matters were either settled, or we extended a firm offer for settlement, thereby establishing an accrual amount that is both probable and reasonably estimable.

In the ordinary course of business, we are party to various lawsuits. We establish reserves for specific legal matters when we determine that the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable. Management has also identified certain other legal matters where it believes an unfavorable outcome is not probable and, therefore, no reserve is established. We also evaluate other contingent matters, including tax contingencies, to assess the probability and estimated extent of potential loss.

The North Carolina Department of Revenue conducted an examination of our North Carolina franchise tax returns for the years ended December 31, 2006 through 2008, and issued final audit reports to us in 2011. As of December 31, 2011, we evaluated this matter as a potential loss contingency, and determined that it was reasonably possible that a loss could be incurred. The range of a possible loss was estimated to be $-0- to $3.6 million. No reserve was established for this matter as we had determined that the likelihood of a loss was not probable. In July 2012, the North Carolina Department of Revenue issued amended audit reports to us confirming no further taxes are due.

SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2012

SIGNIFICANT ACCOUNTING POLICIES

Accounting Estimates

Accounting Estimates

Reclassifications

Reclassifications

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash and short-term, highly liquid money market investments with original maturities of three months or less.

Restricted Cash

Restricted Cash

Restricted cash and cash equivalents consists of the following (in thousands):

	June 30, 2012		December 31, 2011

Cash in escrow for loan loss obligations	$	20,127	$	—
Cash in escrow for surety bonds		6,500		6,500
Cash in escrow for corporate purchasing card program		800		800
Minimum required balances for warehouse lines of credit		100		4,250
Other		2,498		901

Total restricted cash and cash equivalents	$	30,025	$	12,451

Revenue Recognition

Revenue Recognition

Recent Accounting Pronouncements

Recent Accounting Pronouncements

- Definition

Disclosure of accounting policy for cash and cash equivalents, including the policy for determining which items are treated as cash equivalents. Other information that may be disclosed includes (1) the nature of any restrictions on the entity's use of its cash and cash equivalents, (2) whether the entity's cash and cash equivalents are insured or expose the entity to credit risk, (3) the classification of any negative balance accounts (overdrafts), and (4) the carrying basis of cash equivalents (for example, at cost) and whether the carrying amount of cash equivalents approximates fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Cash

-URI http://asc.fasb.org/extlink&oid=6506951

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Cash Equivalents

-URI http://asc.fasb.org/extlink&oid=6507016

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 230

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6367179&loc=d3e4273-108586

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 02

-Paragraph 1

-Article 5

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 305

-SubTopic 10

-URI http://asc.fasb.org/subtopic&trid=2122427

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Financial Reporting Release (FRR)

-Number 203

-Paragraph 02-03

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Technical Practice Aid (TPA)

-Number 2110

-Paragraph 6

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 95

-Paragraph 7, 8, 9, 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Entity's cash and cash equivalents accounting policy with respect to restricted balances. Restrictions may include legally restricted deposits held as compensating balances against short-term borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits; however, time deposits and short-term certificates of deposit are not generally included in legally restricted deposits.

+ References+ Details

- Definition

Disclosure of accounting policy for revenue recognition. If the entity has different policies for different types of revenue transactions, the policy for each material type of transaction is generally disclosed. If a sales transaction has multiple element arrangements (for example, delivery of multiple products, services or the rights to use assets) the disclosure may indicate the accounting policy for each unit of accounting as well as how units of accounting are determined and valued. The disclosure may encompass important judgment as to appropriateness of principles related to recognition of revenue. The disclosure also may indicate the entity's treatment of any unearned or deferred revenue that arises from the transaction.

+ References+ Details

- Definition

Disclosure of accounting policy for the use of estimates in the preparation of financial statements in conformity with generally accepted accounting principles.

+ References+ Details

ORGANIZATION (Tables)

6 Months Ended

Jun. 30, 2012

ORGANIZATION

Schedule of unaudited pro forma financial information as if the sale of substantially all of the operating assets had occurred as of January 1, 2011

	Six Months Ended June 30, 2012			Six Months Ended June 30, 2011

Revenue	$	30,205		$	30,850
Net loss from continuing operations		(5,022	)		(41,203	)
Net loss attributable to common shareholders		(5,022	)		(41,203	)
Basic earnings per share attributable to common shareholders		(0.45	)		(3.76	)
Diluted earnings per share attributable to common shareholders		(0.45	)		(3.76	)

Schedule of restated condensed consolidated statement of operations

The restated condensed consolidated statement of operations for the three months ended June 30, 2011 is as follows:

	As Previously Presented			Impairment Correction			As Restated

Asset impairments	$	250		$	29,000		$	29,250
Total costs and expenses		24,899			29,000			53,899
Operating loss		(7,968	)		(29,000	)		(36,968	)
Loss before income taxes		(8,044	)		(29,000	)		(37,044	)
Income tax provision		(37	)		11,965			11,928
Net loss from continuing operations		(8,081	)		(17,035	)		(25,116	)
Loss from operations of discontinued operations, net of tax		(9,737	)		348			(9,389	)
Loss from discontinued operations		(9,737	)		348			(9,389	)
Net loss attributable to common shareholders		(17,818	)		(16,687	)		(34,505	)
Basic and diluted net loss per share from continuing operations		(0.73	)		(1.55	)		(2.28	)
Basic and diluted net loss per share from discontinued operations		(0.89	)		0.04			(0.85	)
Basic and diluted net loss per share attributable to common shareholders		(1.62	)		(1.51	)		(3.13	)

The restated condensed consolidated statement of operations for the six months ended June 30, 2011 is as follows:

	As Previously Presented			Impairment Correction			As Restated

Asset impairments	$	250		$	29,000		$	29,250
Total costs and expenses		54,561			29,000			83,561
Operating loss		(23,711	)		(29,000	)		(52,711	)
Loss before income taxes		(23,866	)		(29,000	)		(52,866	)
Income tax provision		(302	)		11,965			11,663
Net loss from continuing operations		(24,168	)		(17,035	)		(41,203	)
Loss from operations of discontinued operations, net of tax		(33,145	)		348			(32,797	)
Loss from discontinued operations		(33,145	)		348			(32,797	)
Net loss attributable to common shareholders		(57,313	)		(16,687	)		(74,000	)
Basic and diluted net loss per share from continuing operations		(2.21	)		(1.55	)		(3.76	)
Basic and diluted net loss per share from discontinued operations		(3.04	)		0.04			(3.00	)
Basic and diluted net loss per share from attributable to common shareholders		(5.25	)		(1.51	)		(6.76	)

Schedule of restated cash flows from operating activities section of the condensed consolidated statement of cash flows

The restated cash flows from operating activities section of the condensed consolidated statement of cash flows for the six months ended June 30, 2011 are as follows:

	As Previously Presented			Impairment Correction			As Restated

Cash Flows from Operating Activities:
Net loss	$	(57,313	)	$	(16,687	)	$	(74,000	)
Less loss from discontinued operations, net of tax		33,145			348			32,797
Net loss from continuing operations		(24,168	)		(17,035	)		(41,203	)
Intangible impairment		250			29,000			29,250
Deferred income taxes		278			(11,965	)		(11,687	)

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References+ Details

SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2012

SIGNIFICANT ACCOUNTING POLICIES

Schedule of restricted cash and cash equivalents

Restricted cash and cash equivalents consists of the following (in thousands):

	June 30, 2012		December 31, 2011

Cash in escrow for loan loss obligations	$	20,127	$	—
Cash in escrow for surety bonds		6,500		6,500
Cash in escrow for corporate purchasing card program		800		800
Minimum required balances for warehouse lines of credit		100		4,250
Other		2,498		901

Total restricted cash and cash equivalents	$	30,025	$	12,451

- Definition

Tabular disclosure of the cash and cash items which are restricted as to withdrawal or usage. The provisions of any restrictions are described in a note to the financial statements. Restrictions may include legally restricted deposits held as compensating balances against short-term borrowing arrangements, contracts entered into with others, or entity statements of intention with regard to particular deposits; however, time deposits and short-term certificates of deposit are not generally included in legally restricted deposits.

+ References+ Details

GOODWILL AND INTANGIBLE ASSETS (Tables)

6 Months Ended

Jun. 30, 2012

GOODWILL AND INTANGIBLE ASSETS

Schedule of balance of goodwill and intangible assets, net

The balance of goodwill and intangible assets, net is as follows (in thousands):

	June 30, 2012		December 31, 2011

Goodwill	$	3,632	$	3,632

Intangible assets with indefinite lives	$	10,142	$	10,142
Intangible assets with definite lives, net		834		1,047

Total intangible assets, net	$	10,976	$	11,189

Schedule of intangible assets with definite lives

At June 30, 2012, intangible assets with definite lives relate to the following (in thousands):

	Cost		Accumulated Amortization			Net

Purchase agreements	$	50,411	$	(50,317	)	$	94	5.0
Technology		25,194		(25,106	)		88	3.0
Customer lists		6,682		(6,075	)		607	4.2
Other		1,516		(1,471	)		45	2.5

Total	$	83,803	$	(82,969	)	$	834

At December 31, 2011, intangible assets with definite lives relate to the following (in thousands):

	Cost		Accumulated Amortization			Net

Purchase agreements	$	50,411	$	(50,293	)	$	118	5.0
Technology		25,194		(25,034	)		160	3.0
Customer lists		6,682		(6,045	)		637	4.2
Other		1,516		(1,384	)		132	2.5

Total	$	83,803	$	(82,756	)	$	1,047

Schedule of amortization of intangible assets with definite lives for the next five years

	Amount

Six months ending December 31, 2012	$	145
Year ending December 31, 2013		147
Year ending December 31, 2014		86
Year ending December 31, 2015		60
Year ending December 31, 2016		60
Thereafter		336

Total	$	834

PROPERTY AND EQUIPMENT (Tables)

6 Months Ended

Jun. 30, 2012

PROPERTY AND EQUIPMENT

Schedule of balance of property and equipment, net

The balance of property and equipment, net is as follows (in thousands):

	June 30, 2012			December 31, 2011

Computer equipment and capitalized software	$	25,260		$	24,940
Leasehold improvements		2,055			2,042
Furniture and other equipment		1,488			1,450
Projects in progress		1,755			826

		30,558			29,258
Less: accumulated depreciation and amortization		(22,867	)		(20,883	)

Total property and equipment, net	$	7,691		$	8,375

- Definition

Tabular disclosure of the useful life and salvage value of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software.

+ References+ Details

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2012

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Schedule of accrued expenses and other current liabilities

Accrued expenses and other current liabilities consist of the following (in thousands):

	June 30, 2012		December 31, 2011

Litigation accruals	$	500	$	3,077
Accrued advertising expense		4,281		2,659
Accrued compensation and benefits		1,523		624
Accrued professional fees		1,738		635
Accrued restructuring costs		305		439
Customer deposits and escrows		1,865		2,211
Deferred rent		207		186
Other		5,027		6,881

Total accrued expenses and other current liabilities	$	15,446	$	16,712

DISCONTINUED OPERATIONS (Tables)

6 Months Ended

Jun. 30, 2012

DISCONTINUED OPERATIONS

Schedule of loans held for sale by type of loan

The following table represents the loans held for sale by type of loan as of June 30, 2012 and December 31, 2011 ($ amounts in thousands):

	June 30, 2012					December 31, 2011

	Amount		%			Amount		%
Conforming	$	917		87	%	$	171,375		79	%
FHA		137		13	%		40,433		18	%
Jumbo		—		—	%		5,659		3	%

Total	$	1,054		100	%	$	217,467		100	%

Schedule of difference between the aggregate principal balance of loans on nonaccrual status for which the fair value option has been elected and for loans measured at lower of cost or market valuation

	As of June 30, 2012

	Loans on Nonaccrual— Measured at Fair Value			Loans on Nonaccrual— Measured at LOCOM		Total Loans on Nonaccrual
Aggregate unpaid principal balance	$	211		$	—	$	211
Difference between fair value and aggregate unpaid principal balance		(44	)		—		(44	)

Loans on nonaccrual	$	167		$	—	$	167

	As of December 31, 2011

	Loans on Nonaccrual— Measured at Fair Value			Loans on Nonaccrual— Measured at LOCOM		Total Loans on Nonaccrual
Aggregate unpaid principal balance	$	539		$	—	$	539
Difference between fair value and aggregate unpaid principal balance		(244	)		—		(244	)

Loans on nonaccrual	$	295		$	—	$	295

Schedule of assets and liabilities that are measured at fair value on a recurring basis

The following presents our assets and liabilities that are measured at fair value on a recurring basis at June 30, 2012 and December 31, 2011 (in thousands):

	As of June 30, 2012

	Recurring Fair Value Measurements Using
	Quoted Market Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total Fair Value Measurements
Loans held for sale	$	—	$	887		$	167	$	1,054
Forward delivery contracts		—		(2,192	)		—		(2,192	)

Total	$	—	$	(1,305	)	$	167	$	(1,138	)

	As of December 31, 2011

	Recurring Fair Value Measurements Using
	Quoted Market Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total Fair Value Measurements
Loans held for sale	$	—	$	217,172		$	295	$	217,467
Interest rate lock commitments ("IRLCs")		—		—			9,122		9,122
Forward delivery contracts		—		(4,107	)		19		(4,088	)

Total	$	—	$	213,065		$	9,436	$	222,501

Schedule of changes in assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

	Three Months Ended June 30, 2012

	Interest Rate Lock Commitments			Forward Delivery Contracts			Loans Held for Sale
Balance at April 1, 2012	$	9,849		$	132		$	412
Transfers into Level 3		—			—			211
Transfers out of Level 3		—			(329	)		—
Total net gains (losses) included in earnings (realized and unrealized)		30,991			218			215
Purchases, sales, and settlements
Purchases		—			—			—
Sales		(5,640	)		(21	)		(581	)
Settlements		(766	)		—			(90	)
Transfers of IRLCs to closed loans		(34,434	)		—			—

Balance at June 30, 2012	$	—		$	—		$	167

	Six Months Ended June 30, 2012

	Interest Rate Lock Commitments			Forward Delivery Contracts			Loans Held for Sale
Balance at January 1, 2012	$	9,122		$	19		$	295
Transfers into Level 3		—			—			440
Transfers out of Level 3		—			(845	)		—
Total net gains (losses) included in earnings (realized and unrealized)		73,378			847			233
Purchases, sales, and settlements
Purchases		—			—			—
Sales		(5,640	)		(21	)		(581	)
Settlements		(3,401	)		—			(220	)
Transfers of IRLCs to closed loans		(73,459	)		—			—

Balance at June 30, 2012	$	—		$	—		$	167

	Three Months Ended June 30, 2011

	Interest Rate Lock Commitments			Forward Delivery Contracts		Loans Held for Sale
Balance at April 1, 2011	$	5,628		$	112	$	962
Transfers into Level 3		—			—		325
Transfers out of Level 3		—			70		—
Total net gains (losses) included in earnings (realized and unrealized)		25,226			38		29
Purchases, sales, and settlements
Purchases		—			—		—
Sales		—			—		(283	)
Settlements		(2,555	)		—		(172	)
Transfers of IRLCs to closed loans		(22,021	)		—		—

Balance at June 30, 2011	$	6,278		$	220	$	861

	Six Months Ended June 30, 2011

	Interest Rate Lock Commitments			Forward Delivery Contracts			Loans Held for Sale
Balance at January 1, 2011	$	5,986		$	3		$	884
Transfers into Level 3		—			—			660
Transfers out of Level 3		—			42			—
Total net gains (losses) included in earnings (realized and unrealized)		41,167			233			(3	)
Purchases, sales, and settlements
Purchases(a)		970			(58	)		—
Sales		—			—			(503	)
Settlements		(5,997	)		—			(177	)
Transfers of IRLCs to closed loans		(35,848	)		—			—

Balance at June 30, 2011	$	6,278		$	220		$	861

(a): Purchased in conjunction with the acquisition of certain assets of SurePoint.

Schedule of gains (losses) included in earnings relating to assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

	Three Months Ended June 30, 2012							Six Months Ended June 30, 2012

	Interest Rate Lock Commitments		Forward Delivery Contracts		Loans Held for Sale			Interest Rate Lock Commitments		Forward Delivery Contracts		Loans Held for Sale
Total net gains included in earnings, which are included in discontinued operations	$	30,991	$	218	$	215		$	73,378	$	847	$	233

Change in unrealized losses relating to assets and liabilities still held at June 30, 2012, which are included in discontinued operations	$	—	$	—	$	(44	)	$	—	$	—	$	(44	)

	Three Months Ended June 30, 2011							Six Months Ended June 30, 2011

	Interest Rate Lock Commitments		Forward Delivery Contracts		Loans Held for Sale			Interest Rate Lock Commitments		Forward Delivery Contracts		Loans Held for Sale
Total net gains (losses) included in earnings, which are included in discontinued operations	$	25,226	$	38	$	29		$	41,167	$	233	$	(3	)

Change in unrealized gains (losses) relating to assets and liabilities still held at June 30, 2011, which are included in discontinued operations	$	6,278	$	220	$	(96	)	$	6,278	$	220	$	(95	)

Summary of derivative instruments not designated as hedging instruments

The following table summarizes our derivative instruments not designated as hedging instruments as of June 30, 2012 and December 31, 2011 (in thousands):

	June 30, 2012				December 31, 2011

	Balance Sheet Location	Fair Value			Balance Sheet Location	Fair Value
Interest Rate Lock Commitments	Current assets of discontinued operations	$	—		Current assets of discontinued operations	$	9,282
Forward Delivery Contracts	Current assets of discontinued operations		1,470		Current assets of discontinued operations		480
Interest Rate Lock Commitments	Current liabilities of discontinued operations		—		Current liabilities of discontinued operations		(160	)
Forward Delivery Contracts	Current liabilities of discontinued operations		(3,662	)	Current liabilities of discontinued operations		(4,568	)

Total Derivatives		$	(2,192	)		$	5,034

Schedule of gain/(loss) recognized in the consolidated statements of operations for derivatives

The gain (loss) recognized in the consolidated statements of operations for derivatives for the three and six months ended June 30, 2012 and 2011 was as follows (in thousands):

		Three Months Ended					Six Months Ended

	Location of Gain/(Loss) Recognized in Income on Derivative	June 30, 2012			June 30, 2011		June 30, 2012		June 30, 2011
Interest Rate Lock Commitments	Discontinued operations	$	30,991		$	25,226	$	73,378	$	41,166
Forward Delivery Contracts	Discontinued operations		(2,510	)		348		2,051		(556	)

Total		$	28,481		$	25,574	$	75,429	$	40,610

Schedule of difference between the aggregate principal balance of loans held for sale for which the fair value option has been elected and for loans measured at LOCOM

	As of June 30, 2012

	Loans Held for Sale— Measured at Fair Value		Loans Held for Sale— Measured at LOCOM		Total Loans Held For Sale
Aggregate unpaid principal balance	$	1,038	$	—	$	1,038
Difference between fair value and aggregate unpaid principal balance		16		—		16

Loans held for sale	$	1,054	$	—	$	1,054

	As of December 31, 2011

	Loans Held for Sale— Measured at Fair Value		Loans Held for Sale— Measured at LOCOM		Total Loans Held For Sale
Aggregate unpaid principal balance	$	208,918	$	—	$	208,918
Difference between fair value and aggregate unpaid principal balance		8,549		—		8,549

Loans held for sale	$	217,467	$	—	$	217,467

Schedule of quantitative information about significant unobservable inputs for assets and liabilities measured at fair value on a recurring and non-recurring basis

	Quantitative Information about Level 3 Fair Value Measurements

	Fair Value as of June 30, 2012		Valuation Technique	Significant Unobservable Input	Range (Weighted Average)
Impaired loans—fair value option elected	$	167	Estimated Investor Bid	NA	NA

Schedule of loans sold for the period and the aggregate loan losses

The following table represents the loans sold for the period shown and the aggregate loan losses through June 30, 2012:

	As of June 30, 2012

Period of Loan Sales	Number of loans sold		Original principal balance		Number of loans with losses		Original principal balance of loans with losses		Amount of aggregate losses
			(in billions)				(in millions)		(in millions)
Six months ended June 30, 2012		9,200	$	1.9		—	$	—	$	—
2011		12,500		2.7		1		0.3		0.1
2010		12,400		2.8		4		1.1		0.1
2009		12,800		2.8		4		0.9		0.1
2008		11,000		2.2		33		6.9		2.2
2007		36,300		6.1		160		22.1		8.2
2006		55,000		7.9		207		24.5		13.4
2005 and prior years		86,700		13.0		89		12.3		5.0

Total		235,900	$	39.4		498	$	68.1	$	29.1

Schedule of activity related to loss reserves on previously sold loans

The activity related to loss reserves on previously sold loans for the three and six months ended June 30, 2012 and 2011, is as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,

	2012			2011			2012			2011
Balance, beginning of period	$	33,503		$	20,038		$	31,512		$	16,984
Provisions		3,918			4,312			6,384			7,562
Charge offs to reserves		(4,325	)		(33	)		(4,800	)		(229	)

Balance, end of period	$	33,096		$	24,317		$	33,096		$	24,317

RealEstate.com

DISCONTINUED OPERATIONS

Schedule of revenue and net income (loss) of the discontinued operations

The revenue and net loss for the Real Estate businesses that are reported as discontinued operations for the applicable periods were as follows (in thousands):

	Three Months Ended June 30,

	2012			2011
Revenue	$	34		$	1,121

Loss before income taxes	$	(86	)	$	(192	)
Income tax provision		—			—

Net loss	$	(86	)	$	(192	)

	Six Months Ended June 30,

	2012			2011
Revenue	$	75		$	3,118

Loss before income taxes	$	(160	)	$	(16,298	)
Income tax provision		—			—

Net loss	$	(160	)	$	(16,298	)

Schedule of assets and liabilities of the discontinued operations

The assets and liabilities of Real Estate that are reported as discontinued operations as of June 30, 2012 and December 31, 2011 were as follows (in thousands):

	June 30, 2012			December 31, 2011

Current assets	$	18		$	33

Current liabilities		301			702
Non-current liabilities		—			54

Net liabilities	$	(283	)	$	(723	)

LendingTree Loans

DISCONTINUED OPERATIONS

Schedule of revenue and net income (loss) of the discontinued operations

The revenue and net income (loss) for LendingTree Loans that are reported as discontinued operations for the applicable periods were as follows (in thousands):

	Three Months Ended June 30,

	2012			2011
Revenue	$	30,529		$	25,382

Income (loss) before income taxes	$	3,467		$	(9,197	)
Income tax provision		(166	)		—
Gain from sale of discontinued operations, net of tax of $1,267 and $-0-		24,313			—

Net income (loss)	$	27,614		$	(9,197	)

	Six Months Ended June 30,

	2012			2011
Revenue	$	81,395		$	44,632

Income (loss) before income taxes	$	23,189		$	(16,499	)
Income tax provision		(2,396	)		—
Gain from sale of discontinued operations, net of tax of $1,267 and $-0-		24,313			—

Net income (loss)	$	45,106		$	(16,499	)

Schedule of assets and liabilities of the discontinued operations

The assets and liabilities of LendingTree Loans that are reported as discontinued operations as of June 30, 2012 and December 31, 2011 were as follows (in thousands):

	June 30, 2012			December 31, 2011

Loans held for sale	$	1,054		$	217,467
Other current assets		4,381			14,925

Current assets		5,435			232,392

Property and equipment		—			4,181
Goodwill		—			5,579
Other non-current assets		236			1,187

Non-current assets		236			10,947

Warehouse lines of credit		347			197,659
Other current liabilities		42,405			51,669

Current liabilities		42,752			249,328

Non-current liabilities		452			978

Net liabilities	$	(37,533	)	$	(6,967	)

EARNINGS PER SHARE AND STOCK-BASED COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2012

EARNINGS PER SHARE AND STOCK-BASED COMPENSATION

Schedule of computation of Basic and Diluted earnings per share

	Three Months Ended June 30,

	2012						2011
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Loss from continuing operations	$	(1,754	)	$	(1,754	)	$	(25,116	)	$	(25116	)
Income (loss) from discontinued operations, net of tax		27,528			27,528			(9,389	)		(9,389	)

Net income (loss) attributable to common shareholders	$	25,774		$	25,774		$	(34,505	)	$	(34,505	)

Denominator:
Weighted average common shares		11,303			11,303			11,014			11,014

Income (loss) per share:
Loss from continuing operations	$	(0.16	)	$	(0.16	)	$	(2.28	)	$	(2.28	)
Income (loss) from discontinued operations, net of tax		2.44			2.44			(0.85	)		(0.85	)

Net income (loss) per common share	$	2.28		$	2.28		$	(3.13	)	$	(3.13	)

	Six Months Ended June 30,

	2012						2011
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Loss from continuing operations	$	(5,022	)	$	(5,022	)		(41,203	)		(41,203	)
Income (loss) from discontinued operations, net of tax		44,946			44,946			(32,797	)		(32,797	)

Net loss available to common shareholders	$	39,924		$	39,924		$	(74,000	)	$	(74,000	)

Denominator:
Weighted average common shares		11,238			11,238			10,948			10,948

Income (loss) per share:
Loss from continuing operations	$	(0.45	)	$	(0.45	)	$	(3.76	)	$	(3.76	)
Income (loss) from discontinued operations, net of tax		4.00			4.00			(3.00	)		(3.00	)

Net income (loss) per common share	$	3.55		$	3.55		$	(6.76	)	$	(6.76	)

Schedule of non-cash compensation expense related to equity awards

	Three Months Ended June 30,				Six Months Ended June 30,

	2012		2011		2012		2011
Cost of revenue	$	1	$	1	$	4	$	3
Selling and marketing expense		202		105		359		265
General and administrative expense		761		624		1,636		1,485
Product development		108		58		257		155

Non-cash compensation expense	$	1,072	$	788	$	2,256	$	1,908

Summary of changes in outstanding stock options

			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value

					(In years)		(In thousands)
Outstanding at January 1, 2012	1,046,746		$	9.09
Granted	150,000			7.43
Exercised	(63,063	)		7.30
Forfeited	—			—
Expired	(19,740	)		11.39

Outstanding at June 30, 2012	1,113,943		$	8.93		6.1	$	3,515

Options exercisable at June 30, 2012	271,513		$	11.89		4.5	$	597

Summary of the information about stock options outstanding and exercisable

	Options Outstanding						Options Exercisable

Range of Exercise Prices	Outstanding at June 30, 2012		Weighted Average Remaining Contractual Life in Years		Weighted Average Exercise Price		Exercisable at June 30, 2012		Weighted Average Exercise Price
$.01 to $4.99		4,892		1.3	$	3.27		4,892	$	3.27
$5.00 to $7.45		308,556		9.1		6.64		55,976		5.95
$7.46 to $9.99		653,033		5.5		8.39		63,183		7.58
$10.00 to $14.99		19,909		2.3		12.21		19,909		12.21
$15.00 to $19.99		80,890		2.9		15.02		80,890		15.02
$20.00 to $24.99		46,663		2.9		20.19		46,663		20.19

		1,113,943		6.1	$	8.93		271,513	$	11.89

Schedule of non-vested RSUs and restricted stock outstanding as at the end of the period and changes during the reporting period

	RSUs					Restricted Stock

	Number of Shares			Weighted Average Grant Date Fair Value		Number of Shares			Weighted Average Grant Date Fair Value
Nonvested at January 1, 2012		933,051		$	6.48		299,642		$	6.70
Granted		92,972			6.75		—			—
Vested		(284,594	)		6.97		(112,142	)		5.45
Forfeited		(38,139	)		6.31		—			—

Nonvested at June 30, 2012		703,290		$	6.38		187,500		$	7.44

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References+ Details

- Definition

Tabular disclosure of option exercise prices, by grouped ranges, including the upper and lower limits of the price range, the number of shares under option, weighted average exercise price and remaining contractual option terms.

+ References+ Details

ORGANIZATION (Details) (USD $)	3 Months Ended	6 Months Ended	1 Months Ended	6 Months Ended
ORGANIZATION (Details) (USD $)	Mar. 31, 2011 segment	Jun. 30, 2012 segment	Sep. 30, 2011 RealEstate.com Internet domain names and trademarks	Jun. 30, 2012 LendingTree Loans	Jun. 30, 2011 LendingTree Loans	Jun. 30, 2012 LendingTree Loans Discover Bank	Feb. 07, 2012 LendingTree Loans Discover Bank
ORGANIZATION
Number of reportable business segments	2	1
Organization- Discontinued Operations
Proceeds from sale of assets			$ 8,300,000
Gain on sale of internet domain names and trademarks			7,800,000
Amount receivable for sale of assets							55,900,000
Amount received from sale of assets prior to closing							8,000,000
Amount received from sale of assets on the closing							37,900,000
Amount received from sale of assets on the first anniversary of the closing							10,000,000
Portion of the initial purchase price payment held in escrow for certain actual and/or contingent liabilities							17,100,000
Period for which marketing related services are to be provided						17 months
The pro forma financial information
Revenue				30,205,000	30,850,000
Net loss from continuing operations				(5,022,000)	(41,203,000)
Net loss attributable to common shareholders				$ (5,022,000)	$ (41,203,000)
Basic earnings per share attributable to common shareholders				$ (0.45)	$ (3.76)
Diluted earnings per share attributable to common shareholders				$ (0.45)	$ (3.76)

ORGANIZATION (Details 2) (USD $) In Millions, unless otherwise specified	1 Months Ended
	Mar. 31, 2011 item	Mar. 15, 2011 item
SurePoint and Real Estate Title Services, LLC
Business Combinations
Purchase price allocated to goodwill		$ 5.6
Purchase price allocated to intangible assets		0.7
Purchase price allocated to equipment and other assets		1.7
SurePoint and Real Estate Title Services, LLC \| Minimum
Business Combinations
Useful life of finite- lived intangible asset	3 months
SurePoint and Real Estate Title Services, LLC \| Maximum
Business Combinations
Useful life of finite- lived intangible asset	5 years
SurePoint and Real Estate Title Services, LLC \| HLC
Business Combinations
Cash paid upon closing of transaction		8.0
Contingent consideration		$ 0.2
SurePoint
Business Combinations
Period for which network lending services are provided	11 years
Number of states in which resindential mortgage provider service is licensed		45
Number of employees		500
Number of lincensed loan officers	300

ORGANIZATION (Details 3) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Restated condensed consolidated statement of operations
Asset impairments		$ 29,250		$ 29,250
Total costs and expenses	19,730	53,899	38,244	83,561
Operating loss	(2,760)	(36,968)	(8,039)	(52,711)
Loss before income taxes	(2,896)	(37,044)	(8,296)	(52,866)
Income tax benefit	1,142	11,928	3,274	11,663
Net loss from continuing operations	(1,754)	(25,116)	(5,022)	(41,203)
Loss from operations of discontinued operations, net of tax	3,215	(9,389)	20,633	(32,797)
Loss from discontinued operations	27,528	(9,389)	44,946	(32,797)
Net loss attributable to common shareholders	25,774	(34,505)	39,924	(74,000)
Basic and diluted net loss per share from continuing operations (in dollars per share)	$ (0.16)	$ (2.28)	$ (0.45)	$ (3.76)
Basic and diluted net loss per share from discontinued operations (in dollars per share)	$ 2.44	$ (0.85)	$ 4.00	$ (3.00)
Basic and diluted net loss per share from attributable to common shareholders (in dollars per share)	$ 2.28	$ (3.13)	$ 3.55	$ (6.76)
Cash Flows from Operating Activities:
Net loss	25,774	(34,505)	39,924	(74,000)
Less loss from discontinued operations, net of tax	(27,528)	9,389	(44,946)	32,797
Net loss from continuing operations	(1,754)	(25,116)	(5,022)	(41,203)
Intangible impairment				29,250
Deferred income taxes			76	(11,687)
Impairment charge related to trade names and trademarks \| As Previously Presented
Restated condensed consolidated statement of operations
Asset impairments		250		250
Total costs and expenses		24,899		54,561
Operating loss		(7,968)		(23,711)
Loss before income taxes		(8,044)		(23,866)
Income tax benefit		(37)		(302)
Net loss from continuing operations		(8,081)		(24,168)
Loss from operations of discontinued operations, net of tax		(9,737)		(33,145)
Loss from discontinued operations		(9,737)		(33,145)
Net loss attributable to common shareholders		(17,818)		(57,313)
Basic and diluted net loss per share from continuing operations (in dollars per share)		$ (0.73)		$ (2.21)
Basic and diluted net loss per share from discontinued operations (in dollars per share)		$ (0.89)		$ (3.04)
Basic and diluted net loss per share from attributable to common shareholders (in dollars per share)		$ (1.62)		$ (5.25)
Cash Flows from Operating Activities:
Net loss		(17,818)		(57,313)
Less loss from discontinued operations, net of tax		9,737		33,145
Net loss from continuing operations		(8,081)		(24,168)
Intangible impairment				250
Deferred income taxes				278
Impairment charge related to trade names and trademarks \| Impairment Correction
Restated condensed consolidated statement of operations
Asset impairments		29,000		29,000
Total costs and expenses		29,000		29,000
Operating loss		(29,000)		(29,000)
Loss before income taxes		(29,000)		(29,000)
Income tax benefit		11,965		11,965
Net loss from continuing operations		(17,035)		(17,035)
Loss from operations of discontinued operations, net of tax		348		348
Loss from discontinued operations		348		348
Net loss attributable to common shareholders		(16,687)		(16,687)
Basic and diluted net loss per share from continuing operations (in dollars per share)		$ (1.55)		$ (1.55)
Basic and diluted net loss per share from discontinued operations (in dollars per share)		$ 0.04		$ 0.04
Basic and diluted net loss per share from attributable to common shareholders (in dollars per share)		$ (1.51)		$ (1.51)
Cash Flows from Operating Activities:
Net loss		(16,687)		(16,687)
Less loss from discontinued operations, net of tax		(348)		(348)
Net loss from continuing operations		(17,035)		(17,035)
Intangible impairment				29,000
Deferred income taxes				$ (11,965)

SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	3 Months Ended	6 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
SIGNIFICANT ACCOUNTING POLICIES
Certain costs within continuing operations reclassified from general and administrative expense to litigation settlements and contingencies	$ 300,000		$ 500,000
Restricted cash
Restricted cash and cash equivalents		30,025,000		12,451,000
Revenue Recognition
Revenue related to marketing-related services		1,100,000
Cash in escrow for loan loss obligations
Restricted cash
Restricted cash and cash equivalents		20,127,000
Escrow pursuant to the asset purchase agreement \| LendingTree Loans
Restricted cash
Restricted cash and cash equivalents		17,100,000
Escrow held by an investor that purchased loans \| LendingTree Loans
Restricted cash
Restricted cash and cash equivalents		3,000,000
Cash in escrow for surety bonds
Restricted cash
Restricted cash and cash equivalents		6,500,000		6,500,000
Cash in escrow for corporate purchasing card program
Restricted cash
Restricted cash and cash equivalents		800,000		800,000
Minimum required balances for warehouse lines of credit
Restricted cash
Restricted cash and cash equivalents		100,000		4,250,000
Other
Restricted cash
Restricted cash and cash equivalents		$ 2,498,000		$ 901,000

- Definition

The carrying amounts of cash and cash equivalent items which are restricted as to withdrawal or usage. Restrictions may include legally restricted deposits held as compensating balances against short-term borrowing arrangements, contracts entered into with others, or entity statements of intention with regard to particular deposits; however, time deposits and short-term certificates of deposit are not generally included in legally restricted deposits. Excludes compensating balance arrangements that are not agreements which legally restrict the use of cash amounts shown on the balance sheet. For a classified balance sheet represents the current portion only (the noncurrent portion has a separate concept); there is a separate and distinct element for unclassified presentations.

+ References+ Details

GOODWILL AND INTANGIBLE ASSETS (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Balance of goodwill and intangible assets, net
Goodwill	$ 3,632	$ 3,632
Intangible assets with indefinite lives	10,142	10,142
Intangible assets with definite lives, net	834	1,047
Total intangible assets, net	$ 10,976	$ 11,189

- Definition

Carrying amount as of the balance sheet date, which is the cumulative amount paid and (if applicable) the fair value of any noncontrolling interest in the acquiree, adjusted for any amortization recognized prior to the adoption of any changes in generally accepted accounting principles (as applicable) and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 141R

-Paragraph 68

-Subparagraph l

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 350

-SubTopic 20

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 350

-SubTopic 20

-Section 45

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6388280&loc=d3e13770-109266

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 142

-Paragraph 45

-Subparagraph e

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 142

-Paragraph 43

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 141R

-Paragraph 72

-Subparagraph d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 142

-Paragraph 45

-Subparagraph e

-Clause 1

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 141R

-Paragraph 34

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

GOODWILL AND INTANGIBLE ASSETS (Details 2) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Intangible assets with definite lives
Cost	$ 83,803	$ 83,803
Accumulated Amortization	(82,969)	(82,756)
Net	834	1,047
Purchase agreements
Intangible assets with definite lives
Cost	50,411	50,411
Accumulated Amortization	(50,317)	(50,293)
Net	94	118
Purchase agreements \| Weighted average
Intangible assets with definite lives
Amortization Life (in years)	5 years	5 years
Technology
Intangible assets with definite lives
Cost	25,194	25,194
Accumulated Amortization	(25,106)	(25,034)
Net	88	160
Technology \| Weighted average
Intangible assets with definite lives
Amortization Life (in years)	3 years	3 years
Customer lists
Intangible assets with definite lives
Cost	6,682	6,682
Accumulated Amortization	(6,075)	(6,045)
Net	607	637
Customer lists \| Weighted average
Intangible assets with definite lives
Amortization Life (in years)	4 years 2 months 12 days	4 years 2 months 12 days
Other
Intangible assets with definite lives
Cost	1,516	1,516
Accumulated Amortization	(1,471)	(1,384)
Net	$ 45	$ 132
Other \| Weighted average
Intangible assets with definite lives
Amortization Life (in years)	2 years 6 months	2 years 6 months

GOODWILL AND INTANGIBLE ASSETS (Details 3) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Amortization of intangible assets with definite lives computed on a straight-line basis
Six months ending December 31, 2012	$ 145
Year ending December 31, 2013	147
Year ending December 31, 2014	86
Year ending December 31, 2015	60
Year ending December 31, 2016	60
Thereafter	336
Net	$ 834	$ 1,047

PROPERTY AND EQUIPMENT (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
PROPERTY AND EQUIPMENT
Property and equipment, gross	$ 30,558	$ 29,258
Less: accumulated depreciation and amortization	(22,867)	(20,883)
Total property and equipment, net	7,691	8,375
Computer equipment and capitalized software
PROPERTY AND EQUIPMENT
Property and equipment, gross	25,260	24,940
Leasehold improvements
PROPERTY AND EQUIPMENT
Property and equipment, gross	2,055	2,042
Furniture and other equipment
PROPERTY AND EQUIPMENT
Property and equipment, gross	1,488	1,450
Projects in progress
PROPERTY AND EQUIPMENT
Property and equipment, gross	$ 1,755	$ 826

- Definition

The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement.

+ References+ Details

- Definition

Gross amount of long-lived physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, furniture and fixtures, and computer equipment.

+ References+ Details

- Definition

Amount, net of accumulated depreciation, depletion and amortization, of long-lived physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, furniture and fixtures, and computer equipment.

+ References+ Details

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Accrued expenses and other current liabilities
Litigation accruals	$ 500,000	$ 3,077,000
Accrued advertising expense	4,281,000	2,659,000
Accrued compensation and benefits	1,523,000	624,000
Accrued professional fees	1,738,000	635,000
Accrued restructuring costs	305,000	439,000
Customer deposits and escrows	1,865,000	2,211,000
Deferred rent	207,000	186,000
Other	5,027,000	6,881,000
Total accrued expenses and other current liabilities	15,446,000	16,712,000
Accrued restructuring liabilities classified in other long term liabilities	$ 700,000	$ 900,000

DISCONTINUED OPERATIONS (Details) (USD $)	3 Months Ended		6 Months Ended
DISCONTINUED OPERATIONS (Details) (USD $)	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
DISCONTINUED OPERATIONS
Probable loss		$ 1,600,000		$ 1,600,000
Revenue and net income (loss) of discontinued operations
Gain from sale of discontinued operations, net of tax of $1,275 and $0	24,313,000		24,313,000
Income (loss) from discontinued operations	27,528,000	(9,389,000)	44,946,000	(32,797,000)
Intangible impairment				29,250,000
Restructuring charges	3,000	398,000	(61,000)	491,000
Assets and liabilities of facilities reported as discontinued operations
Current assets	5,453,000		5,453,000		232,425,000
Non-current assets	236,000		236,000		10,947,000
Current liabilities	43,053,000		43,053,000		250,030,000
Non-current liabilities	452,000		452,000		1,032,000
Real estate businesses
Revenue and net income (loss) of discontinued operations
Revenue	34,000	1,121,000	75,000	3,118,000
Income (loss) before income taxes	(86,000)	(192,000)	(160,000)	(16,298,000)
Goodwill disposal charges				8,000,000
Intangible impairment				4,100,000
Restructuring charges				2,000,000
Assets and liabilities of facilities reported as discontinued operations
Current assets	18,000		18,000		33,000
Current liabilities	301,000		301,000		702,000
Non-current liabilities					54,000
Net liabilities	(283,000)		(283,000)		(723,000)
LendingTree Loans
Revenue and net income (loss) of discontinued operations
Revenue	30,529,000	25,382,000	81,395,000	44,632,000
Income (loss) before income taxes	3,467,000	(9,197,000)	23,189,000	(16,499,000)
Income tax provision	(166,000)		(2,396,000)
Gain from sale of discontinued operations, net of tax of $1,275 and $0	24,313,000		24,313,000
Income (loss) from discontinued operations	27,614,000	(9,197,000)	45,106,000	(16,499,000)
Tax effect on gain from sale of discontinued operations	1,267,000	0	1,267,000	0
Intangible impairment			1,400,000
Restructuring charges				4,000,000
Assets and liabilities of facilities reported as discontinued operations
Loans held for sale	1,054,000		1,054,000		217,467,000
Other current assets	4,381,000		4,381,000		14,925,000
Current assets	5,435,000		5,435,000		232,392,000
Property and equipment					4,181,000
Goodwill					5,579,000
Other non-current assets	236,000		236,000		1,187,000
Non-current assets	236,000		236,000		10,947,000
Warehouse lines of credit	347,000		347,000		197,659,000
Other current liabilities	42,405,000		42,405,000		51,669,000
Current liabilities	42,752,000		42,752,000		249,328,000
Non-current liabilities	452,000		452,000		978,000
Net liabilities	$ (37,533,000)		$ (37,533,000)		$ (6,967,000)

DISCONTINUED OPERATIONS (Details 2) (LendingTree Loans, Discontinued operations, USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Loans held for sale
Period from funding within which selling of balances of loans held for sale to investors occurred due to wind-down activities	30 days
Loans held for sale	$ 1,054	$ 217,467
Percentage of loan to total loans held for sale	100.00%	100.00%
Conforming
Loans held for sale
Loans held for sale	917	171,375
Percentage of loan to total loans held for sale	87.00%	79.00%
FHA
Loans held for sale
Loans held for sale	137	40,433
Percentage of loan to total loans held for sale	13.00%	18.00%
Jumbo
Loans held for sale
Loans held for sale		$ 5,659
Percentage of loan to total loans held for sale		3.00%

- Definition

The aggregate carrying amount of loans receivable that will be sold to other entities. Includes mortgage and all other loans (collectively, loans) not classified as held for investment. Such loans are stated at the lower of cost or market, or elected fair value. Mortgage loans exclude mortgage-backed securities which are considered a debt security (other loan).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 310

-SubTopic 10

-Section 45

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6375948&loc=d3e4428-111522

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Statement of Position (SOP)

-Number 01-6

-Paragraph 13

-Subparagraph d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 03

-Paragraph 7

-Subparagraph a

-Article 9

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 942

-SubTopic 210

-Section S99

-Paragraph 1

-Subparagraph (SX 210.9-03.7(a))

-URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 310

-SubTopic 10

-Section 35

-Paragraph 49

-URI http://asc.fasb.org/extlink&oid=16382521&loc=d3e3084-111518

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 948

-SubTopic 310

-Section 30

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6490209&loc=d3e48214-111002

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 65

-Paragraph 4, 5, 6, 7, 9, 12, 28, 29

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher OTS

-Name Federal Regulation (FR)

-Number Title 12

-Section 563c.102

-Paragraph 8

-Subparagraph h

-Chapter V

-Subsection I

-LegacyDoc This is a non-GAAP reference that was included in the 2009 taxonomy. It will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 65

-Paragraph 4

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

DISCONTINUED OPERATIONS (Details 3) (LendingTree Loans, Loans held for sale, Discontinued operations, USD $)	6 Months Ended
	Jun. 30, 2012 item	Dec. 31, 2011
Loans on Nonaccrual
Aggregate unpaid principal balance	$ 211,000	$ 539,000
Difference between fair value and aggregate unpaid principal balance	(44,000)	(244,000)
Loans on nonaccrual	167,000	295,000
Number of loans on nonaccrual status repurchased	2
Net book value of repurchased loans	700,000
Measured at Fair Value
Loans on Nonaccrual
Aggregate unpaid principal balance	211,000	539,000
Difference between fair value and aggregate unpaid principal balance	(44,000)	(244,000)
Loans on nonaccrual	$ 167,000	$ 295,000

DISCONTINUED OPERATIONS (Details 4) (LendingTree Loans, USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2012 Fair value on a recurring basis Significant Other Observable Inputs (Level 2)	Dec. 30, 2011 Fair value on a recurring basis Significant Other Observable Inputs (Level 2)	Jun. 30, 2012 Fair value on a recurring basis Significant Other Observable Inputs (Level 2) Forward delivery contracts	Dec. 31, 2011 Fair value on a recurring basis Significant Other Observable Inputs (Level 2) Forward delivery contracts	Jun. 30, 2012 Fair value on a recurring basis Significant Unobservable Inputs (Level 3)	Dec. 31, 2011 Fair value on a recurring basis Significant Unobservable Inputs (Level 3)	Dec. 31, 2011 Fair value on a recurring basis Significant Unobservable Inputs (Level 3) Interest Rate Lock Commitments	Dec. 31, 2011 Fair value on a recurring basis Significant Unobservable Inputs (Level 3) Forward delivery contracts	Jun. 30, 2012 Fair value on a recurring basis Total Fair Value Measurements	Dec. 31, 2011 Fair value on a recurring basis Total Fair Value Measurements	Dec. 31, 2011 Fair value on a recurring basis Total Fair Value Measurements Interest Rate Lock Commitments	Jun. 30, 2012 Fair value on a recurring basis Total Fair Value Measurements Forward delivery contracts	Dec. 31, 2011 Fair value on a recurring basis Total Fair Value Measurements Forward delivery contracts
Fair Value Measurements
Loans held for sale	$ 1,054	$ 217,467	$ 887	$ 217,172			$ 167	$ 295			$ 1,054	$ 217,467
Assets and Liabilities at fair value	$ (37,533)	$ (6,967)	$ (1,305)	$ 213,065	$ (2,192)	$ (4,107)	$ 167	$ 9,436	$ 9,122	$ 19	$ (1,138)	$ 222,501	$ 9,122	$ (2,192)	$ (4,088)

DISCONTINUED OPERATIONS (Details 5) (LendingTree Loans, Discontinued operations, USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Loans held for sale
Changes in assets that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Balance at the beginning of the period	$ 412	$ 962	$ 295	$ 884
Transfers into Level 3	211	325	440	660
Total net gains (losses) included in earnings (realized and unrealized)	215	29	233	(3)
Purchases, sales, and settlements
Sales	(581)	(283)	(581)	(503)
Settlements	(90)	(172)	(220)	(177)
Balance at the ending of the period	167	861	167	861
Interest Rate Lock Commitments
Changes in assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Balance at the beginning of the period	9,849	5,628	9,122	5,986
Total net gains (losses) included in earnings (realized and unrealized)	30,991	25,226	73,378	41,167
Purchases, sales, and settlements
Purchases				970
Sales	(5,640)		(5,640)
Settlements	(766)	(2,555)	(3,401)	(5,997)
Transfers of IRLCs to closed loans	(34,434)	(22,021)	(73,459)	(35,848)
Balance at the ending of the period		6,278		6,278
Forward delivery contracts
Changes in assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Balance at the beginning of the period	132	112	19	3
Transfers out of Level 3	(329)	70	(845)	42
Total net gains (losses) included in earnings (realized and unrealized)	218	38	847	233
Purchases, sales, and settlements
Purchases				(58)
Sales	(21)		(21)
Balance at the ending of the period		$ 220		$ 220

DISCONTINUED OPERATIONS (Details 6) (LendingTree Loans, Discontinued operations, USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Loans held for sale
Gains (losses) included in earnings relating to assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Total net gains (losses) included in earnings relating to assets	$ 215	$ 29	$ 233	$ (3)
Change in unrealized gains (losses) relating to assets still held at the end of the period	(44)	(96)	(44)	(95)
Interest Rate Lock Commitments
Gains (losses) included in earnings relating to assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Total net gains included in earnings	30,991	25,226	73,378	41,167
Change in unrealized losses relating to assets and liabilities still held at the end of the period		6,278		6,278
Forward delivery contracts
Gains (losses) included in earnings relating to assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Total net gains included in earnings	218	38	847	233
Change in unrealized losses relating to assets and liabilities still held at the end of the period		$ 220		$ 220

DISCONTINUED OPERATIONS (Details 7) (Not designated as hedging instrument, LendingTree Loans, Discontinued operations, USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Derivative instruments not designated as hedging instrument
Fair value of total derivatives	$ (2,192)	$ 5,034
Interest Rate Lock Commitments
Derivative instruments not designated as hedging instrument
Fair value of derivative assets included in current assets of discontinued operations		9,282
Fair value of derivative liabilities included in current liabilities of discontinued operations		(160)
Forward delivery contracts
Derivative instruments not designated as hedging instrument
Fair value of derivative assets included in current assets of discontinued operations	1,470	480
Fair value of derivative liabilities included in current liabilities of discontinued operations	$ (3,662)	$ (4,568)

- Definition

Fair value of derivative asset, presented on a gross basis even when the derivative instrument is subject to master netting arrangements and qualifies for net presentation in the statement of financial position.

+ References+ Details

- Definition

Fair value of derivative liability, presented on a gross basis even when the derivative instrument is subject to master netting arrangements and qualifies for net presentation in the statement of financial position.

+ References+ Details

DISCONTINUED OPERATIONS (Details 8) (LendingTree Loans, Discontinued operations, USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Gain/(loss) recognized in the consolidated statements of operations for derivatives
Gain/(Loss) recognized in Income on Derivative	$ 28,481	$ 25,574	$ 75,429	$ 40,610
Interest Rate Lock Commitments
Gain/(loss) recognized in the consolidated statements of operations for derivatives
Gain/(Loss) recognized in Income on Derivative	30,991	25,226	73,378	41,166
Forward delivery contracts
Gain/(loss) recognized in the consolidated statements of operations for derivatives
Gain/(Loss) recognized in Income on Derivative	$ (2,510)	$ 348	$ 2,051	$ (556)

DISCONTINUED OPERATIONS (Details 9) (LendingTree Loans, Discontinued operations, Loans held for sale, USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Loans held for sale
Aggregate unpaid principal balance	$ 1,038,000		$ 208,918,000
Difference between fair value and aggregate unpaid principal balance	16,000		8,549,000
Loans held for sale	1,054,000		217,467,000
Measured at Fair Value
Loans held for sale
Aggregate unpaid principal balance	1,038,000		208,918,000
Difference between fair value and aggregate unpaid principal balance	16,000		8,549,000
Loans held for sale	1,054,000		217,467,000
Gain due to change in fair value of loans held for sale	$ 3,100,000	$ 500,000

DISCONTINUED OPERATIONS (Details 10) (Impaired loans-fair value option elected, Estimated Investor Bid, Level 3, USD $) In Thousands, unless otherwise specified	Jun. 30, 2012
Impaired loans-fair value option elected \| Estimated Investor Bid \| Level 3
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring basis and non-recurring basis
Fair Value	$ 167

DISCONTINUED OPERATIONS (Details 11) (LendingTree Loans, USD $)		6 Months Ended					3 Months Ended			6 Months Ended			3 Months Ended	1 Months Ended		12 Months Ended
	Feb. 07, 2012 Discover	Jun. 30, 2012 Discontinued operations item	Dec. 31, 2012 Discontinued operations Buyer one	Jun. 30, 2012 Discontinued operations Buyer one	Jun. 30, 2012 Discontinued operations Buyer two	Dec. 31, 2011 Discontinued operations Buyer two	Jun. 30, 2012 Loan loss obligations Discontinued operations item	Jun. 30, 2011 Loan loss obligations Discontinued operations	Dec. 31, 2009 Loan loss obligations Discontinued operations item	Jun. 30, 2012 Loan loss obligations Discontinued operations item segment	Jun. 30, 2011 Loan loss obligations Discontinued operations	Dec. 31, 2011 Loan loss obligations Discontinued operations	Jun. 30, 2012 Loan loss obligations Discontinued operations Buyer three	Dec. 31, 2009 Loan loss obligations Discontinued operations Buyer one	Jan. 31, 2010 Loan loss obligations Discontinued operations Buyer two	Dec. 31, 2010 Loan loss obligations Discontinued operations Buyer two item	Dec. 31, 2011 Loan loss obligations Discontinued operations Buyer two	Jun. 30, 2012 Loan loss obligations Discontinued operations Six months ended June 30, 2012 item	Jun. 30, 2012 Loan loss obligations Discontinued operations 2011 item	Jun. 30, 2012 Loan loss obligations Discontinued operations 2010 item	Jun. 30, 2012 Loan loss obligations Discontinued operations 2009 item	Jun. 30, 2012 Loan loss obligations Discontinued operations 2008 item	Jun. 30, 2012 Loan loss obligations Discontinued operations 2007 item	Jun. 30, 2012 Loan loss obligations Discontinued operations 2006 item	Jun. 30, 2012 Loan loss obligations Discontinued operations 2005 and prior years item
Loan Loss Obligations
Number of investors to whom loans are guaranteed		2
Original principal amount of loans related to indemnification			$ 1,500,000,000	$ 1,800,000,000	$ 228,600,000	$ 32,400,000	$ 66,400,000			$ 66,400,000
Number of loan segments used to estimate loan loss obligation										4
Number of loans sold							235,900			235,900								9,200	12,500	12,400	12,800	11,000	36,300	55,000	86,700
Original principal balance							39,400,000,000			39,400,000,000								1,900,000,000	2,700,000,000	2,800,000,000	2,800,000,000	2,200,000,000	6,100,000,000	7,900,000,000	13,000,000,000
Number of loans with losses							498			498									1	4	4	33	160	207	89
Original principal balance of loans with losses							68,100,000			68,100,000									300,000	1,100,000	900,000	6,900,000	22,100,000	24,500,000	12,300,000
Amount of aggregate losses							29,100,000			29,100,000									100,000	100,000	100,000	2,200,000	8,200,000	13,400,000	5,000,000
Number of loan repurchase requests and indemnifications considered in determining the appropriate reserve amount							342			342
Percentage of full documentation first liens of original principal amount of loans related to indemnification							68.00%			68.00%
Percentage of full documentation second liens of original principal amount of loans related to indemnification							2.00%			2.00%
Percentage of limited documentation first liens of original principal amount of loans related to indemnification							26.00%			26.00%
Percentage of limited documentation second liens of original principal amount of loans related to indemnification							4.00%			4.00%
Number of buyers of previously purchased limited documentation loans with whom settlement negotiations are entered									2
Payment for settlement with buyers of previously purchased loans													3,300,000	1,900,000	4,500,000
Total settlement value																4,800,000
Additional amount of settlement payable to buyers of previously purchased loans is up to this amount												1,200,000					300,000
Number of quarterly installment payments																4
Number of settlements										3
Estimated range of remaining possible losses due to representations and warranty issues, minimum							30,000,000			30,000,000
Estimated range of remaining possible losses due to representations and warranty issues, maximum							40,000,000			40,000,000
Activity related to loss reserves on previously sold loans
Balance, beginning of period							33,503,000	20,038,000		31,512,000	16,984,000
Provisions							3,918,000	4,312,000		6,384,000	7,562,000
Charge offs to reserves							(4,325,000)	(33,000)		(4,800,000)	(229,000)
Balance, end of period							33,096,000	24,317,000		33,096,000	24,317,000
Portion of the initial purchase price payment held in escrow for certain actual and/or contingent liabilities	$ 17,100,000

DISCONTINUED OPERATIONS (Details 12) (LendingTree Loans, Discontinued operations, USD $) In Millions, unless otherwise specified	6 Months Ended	1 Months Ended				6 Months Ended		1 Months Ended		1 Months Ended		1 Months Ended			1 Months Ended	6 Months Ended		6 Months Ended		1 Months Ended	6 Months Ended		1 Months Ended
	Jun. 30, 2012 CreditFacility	Jul. 31, 2012 Warehouse lines of credit CreditFacility	Jun. 30, 2012 Warehouse lines of credit	Dec. 31, 2011 Warehouse lines of credit	Jun. 30, 2012 Committed warehouse lines of credit CreditFacility	Jun. 30, 2012 First warehouse line	Jul. 21, 2012 First warehouse line	Jul. 31, 2012 First warehouse line Loans not being sold to lender	Jul. 21, 2012 First warehouse line Loans not being sold to lender	Jul. 31, 2012 First warehouse line Minimum Loans being sold to lender	Jul. 21, 2012 First warehouse line Minimum Loans being sold to lender	Jul. 31, 2012 First warehouse line Maximum Loans being sold to lender	Jul. 21, 2012 First warehouse line Maximum Loans being sold to lender	Jun. 30, 2012 Uncommitted line of credit facility CreditFacility	Jul. 31, 2012 Second warehouse line	Jun. 30, 2012 Second warehouse line	Jul. 21, 2012 Second warehouse line	Jun. 30, 2012 Third warehouse line	Jul. 21, 2012 Third warehouse line	Jul. 31, 2012 Third warehouse line Minimum	Jun. 30, 2012 Third warehouse line Minimum CreditFacility	Jul. 21, 2012 Third warehouse line Minimum	Jul. 31, 2012 Third warehouse line Maximum	Jul. 21, 2012 Third warehouse line Maximum
Warehouse Lines of Credit
Outstanding borrowings			$ 0.3	$ 197.7
Number of lines of credit					2									1
Borrowing capacity					325.0		125.0										100.0		100.0
Number of lines of credit expired		3
Expiration period after the closing of the asset purchase agreement						45 days										45 days		45 days
Variable interest rate basis								Greater of 30-day adjusted LIBOR or 2.0%		Greater of 30-day adjusted LIBOR or 2.0%		Greater of 30-day adjusted LIBOR or 2.0%			30-day LIBOR					Overnight interest rate			Overnight interest rate
Minimum LIBOR interest rate (as a percent)											2.00%		2.00%									2.00%		2.00%
Margin add to variable interest rate (as a percent)									1.50%		1.50%		1.75%				3.25%					3.25%		3.75%
Number of line of credit restricting dividend payments	2
Minimum tangible net worth required to maintain as per financial and other covenants														$ 25.0		$ 25.0		$ 20.0
Percentage of the positive quarterly net income added to the minimum tangible net worth under the covenants																		50.00%
Period prior to date of determination for minimum tangible net worth under the covenants																		3 months
Number of additional warehouse line																					1

EARNINGS PER SHARE AND STOCK-BASED COMPENSATION (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended			6 Months Ended
	Jun. 30, 2012	Mar. 31, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Numerator:
Loss from continuing operations	$ (1,754)		$ (25,116)	$ (5,022)	$ (41,203)
Income (loss) from discontinued operations, net of tax	27,528		(9,389)	44,946	(32,797)
Net income (loss) attributable to common shareholders	$ 25,774		$ (34,505)	$ 39,924	$ (74,000)
Denominator:
Weighted average common shares	11,303,000		11,014,000	11,238,000	10,948,000
Net income (loss) per share attributable to common shareholders
Loss from continuing operations (in dollars per share)	$ (0.16)		$ (2.28)	$ (0.45)	$ (3.76)
Income (loss) from discontinued operations, net of tax (in dollars per share)	$ 2.44		$ (0.85)	$ 4.00	$ (3.00)
Net income (loss) per common share (in dollars per share)	$ 2.28		$ (3.13)	$ 3.55	$ (6.76)
Additional disclosure
Revision in earnings per share (in dollars per share)		$ 0.03
Anti-dilutive securities excluded from calculation of diluted earnings per share	500,000		100,000	300,000	100,000

EARNINGS PER SHARE AND STOCK-BASED COMPENSATION (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Non-cash compensation expense related to equity awards
Non-cash compensation expense	$ 1,072	$ 788	$ 2,256	$ 1,908
Cost of revenue
Non-cash compensation expense related to equity awards
Non-cash compensation expense	1	1	4	3
Selling and marketing expense
Non-cash compensation expense related to equity awards
Non-cash compensation expense	202	105	359	265
General and administrative expense
Non-cash compensation expense related to equity awards
Non-cash compensation expense	761	624	1,636	1,485
Product development
Non-cash compensation expense related to equity awards
Non-cash compensation expense	$ 108	$ 58	$ 257	$ 155

- Definition

Represents the expense recognized during the period arising from equity-based compensation arrangements (for example, shares of stock, unit, stock options or other equity instruments) with employees, directors and certain consultants qualifying for treatment as employees.

+ References+ Details

EARNINGS PER SHARE AND STOCK-BASED COMPENSATION (Details 3) (Stock options, USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Stock options
Stock options, Shares
Outstanding at the beginning of the period (in shares)	1,046,746
Granted (in shares)	150,000
Exercised (in shares)	(63,063)
Expired (in shares)	(19,740)
Outstanding at the end of the period (in shares)	1,113,943
Options exercisable at the end of the period (in shares)	271,513
Stock options, Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 9.09
Granted (in dollars per share)	$ 7.43
Exercised (in dollars per share)	$ 7.30
Expired (in dollars per share)	$ 11.39
Outstanding at the end of the period (in dollars per share)	$ 8.93
Options exercisable at the end of the period (in dollars per share)	$ 11.89
Stock options, Weighted Average Remaining Contractual Term
Outstanding at the end of the period (in years)	6 years 1 month 6 days
Options exercisable at the end of the period (in years)	4 years 6 months
Stock options, Aggregate Intrinsic Value
Outstanding at the end of the period	$ 3,515
Options exercisable at the end of the period	$ 597

EARNINGS PER SHARE AND STOCK-BASED COMPENSATION (Details 4) (Stock options, USD $)	1 Months Ended	6 Months Ended
	Mar. 31, 2012	Jun. 30, 2012 item
Stock options outstanding and exercisable by range of exercise prices
Options Outstanding at the end of the period (in shares)		1,113,943
Options Outstanding - Weighted Average Remaining Contractual Term (in years)		6 years 1 month 6 days
Options Outstanding - Weighted Average Exercise Price (in dollars per share)		$ 8.93
Options Exercisable at the end of the period (in shares)		271,513
Options Exercisable - Weighted Average Exercise Price (in dollars per share)		$ 11.89
Granted (in shares)		150,000
Weighted average exercise price of stock options granted (in dollars per share)		$ 7.43
Chairman and CEO
Stock options outstanding and exercisable by range of exercise prices
Granted (in shares)	150,000
Number of equal installments for vesting of award		3
Weighted average exercise price of stock options granted (in dollars per share)		$ 7.43
Weighted average grant date fair value of stock options granted (in dollars per share)		$ 3.63
Range of exercise price $0.01 to $4.99
Stock options outstanding and exercisable by range of exercise prices
Exercise price, low end of the range (in dollars per share)		$ 0.01
Exercise price, high end of the range (in dollars per share)		$ 4.99
Options Outstanding at the end of the period (in shares)		4,892
Options Outstanding - Weighted Average Remaining Contractual Term (in years)		1 year 3 months 18 days
Options Outstanding - Weighted Average Exercise Price (in dollars per share)		$ 3.27
Options Exercisable at the end of the period (in shares)		4,892
Options Exercisable - Weighted Average Exercise Price (in dollars per share)		$ 3.27
Range of exercise price $5.00 to $7.45
Stock options outstanding and exercisable by range of exercise prices
Exercise price, low end of the range (in dollars per share)		$ 5.00
Exercise price, high end of the range (in dollars per share)		$ 7.45
Options Outstanding at the end of the period (in shares)		308,556
Options Outstanding - Weighted Average Remaining Contractual Term (in years)		9 years 1 month 6 days
Options Outstanding - Weighted Average Exercise Price (in dollars per share)		$ 6.64
Options Exercisable at the end of the period (in shares)		55,976
Options Exercisable - Weighted Average Exercise Price (in dollars per share)		$ 5.95
Range of exercise price $7.46 to $9.99
Stock options outstanding and exercisable by range of exercise prices
Exercise price, low end of the range (in dollars per share)		$ 7.46
Exercise price, high end of the range (in dollars per share)		$ 9.99
Options Outstanding at the end of the period (in shares)		653,033
Options Outstanding - Weighted Average Remaining Contractual Term (in years)		5 years 6 months
Options Outstanding - Weighted Average Exercise Price (in dollars per share)		$ 8.39
Options Exercisable at the end of the period (in shares)		63,183
Options Exercisable - Weighted Average Exercise Price (in dollars per share)		$ 7.58
Range of exercise price $10.00 to $14.99
Stock options outstanding and exercisable by range of exercise prices
Exercise price, low end of the range (in dollars per share)		$ 10.00
Exercise price, high end of the range (in dollars per share)		$ 14.99
Options Outstanding at the end of the period (in shares)		19,909
Options Outstanding - Weighted Average Remaining Contractual Term (in years)		2 years 3 months 18 days
Options Outstanding - Weighted Average Exercise Price (in dollars per share)		$ 12.21
Options Exercisable at the end of the period (in shares)		19,909
Options Exercisable - Weighted Average Exercise Price (in dollars per share)		$ 12.21
Range of exercise price $15.00 to $19.99
Stock options outstanding and exercisable by range of exercise prices
Exercise price, low end of the range (in dollars per share)		$ 15.00
Exercise price, high end of the range (in dollars per share)		$ 19.99
Options Outstanding at the end of the period (in shares)		80,890
Options Outstanding - Weighted Average Remaining Contractual Term (in years)		2 years 10 months 24 days
Options Outstanding - Weighted Average Exercise Price (in dollars per share)		$ 15.02
Options Exercisable at the end of the period (in shares)		80,890
Options Exercisable - Weighted Average Exercise Price (in dollars per share)		$ 15.02
Range of exercise price $20.00 to $24.99
Stock options outstanding and exercisable by range of exercise prices
Exercise price, low end of the range (in dollars per share)		$ 20.00
Exercise price, high end of the range (in dollars per share)		$ 24.99
Options Outstanding at the end of the period (in shares)		46,663
Options Outstanding - Weighted Average Remaining Contractual Term (in years)		2 years 10 months 24 days
Options Outstanding - Weighted Average Exercise Price (in dollars per share)		$ 20.19
Options Exercisable at the end of the period (in shares)		46,663
Options Exercisable - Weighted Average Exercise Price (in dollars per share)		$ 20.19

EARNINGS PER SHARE AND STOCK-BASED COMPENSATION (Details 5) (USD $)	6 Months Ended
	Jun. 30, 2012
RSUs
Nonvested RSUs and Restricted Stock, Number of Shares
Nonvested at the beginning of the period (in shares)	933,051
Granted (in shares)	92,972
Vested (in shares)	(284,594)
Forfeited (in shares)	(38,139)
Nonvested at the end of the period (in shares)	703,290
Nonvested RSUs and Restricted Stock, Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share)	$ 6.48
Granted (in dollars per share)	$ 6.75
Vested (in dollars per share)	$ 6.97
Forfeited (in dollars per share)	$ 6.31
Nonvested at the end of the period (in dollars per share)	$ 6.38
Restricted stock
Nonvested RSUs and Restricted Stock, Number of Shares
Nonvested at the beginning of the period (in shares)	299,642
Vested (in shares)	(112,142)
Nonvested at the end of the period (in shares)	187,500
Nonvested RSUs and Restricted Stock, Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share)	$ 6.70
Vested (in dollars per share)	$ 5.45
Nonvested at the end of the period (in dollars per share)	$ 7.44

INCOME TAXES (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
INCOME TAXES
Tax benefit	$ 1,142	$ 11,928	$ 3,274	$ 11,663
Effective tax rates (as a percent)	39.50%	32.20%	39.50%	22.10%
Federal statutory rate (as a percent)	35.00%	35.00%	35.00%	35.00%

- Definition

A ratio calculated by dividing the reported amount of income tax expense attributable to continuing operations for the period by GAAP-basis pretax income from continuing operations.

+ References+ Details

- Definition

The domestic federal statutory tax rate applicable under enacted tax laws to the Company's pretax income from continuing operations for the period. The "statutory" tax rate is the regular tax rate if there are alternative tax systems.

+ References+ Details

- Definition

The sum of the current income tax expense or benefit and the deferred income tax expense or benefit pertaining to continuing operations.

+ References+ Details

CONTINGENCIES (Details) (USD $)	3 Months Ended		6 Months Ended
CONTINGENCIES (Details) (USD $)	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
CONTINGENCIES
Litigation settlements and contingencies	$ 216,000	$ 246,000	$ 438,000	$ 4,994,000
Liability related to litigation settlements	500,000		500,000		3,100,000
North Carolina Department of Revenue \| Low end of the range
INCOME TAXES
Estimated range of possible loss for 2006 through 2008 tax audit by North Carolina Department of Revenue	0		0
North Carolina Department of Revenue \| High end of the range
INCOME TAXES
Estimated range of possible loss for 2006 through 2008 tax audit by North Carolina Department of Revenue	$ 3,600,000		$ 3,600,000