Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2013	May 16, 2013
Document and Entity Information
Entity Registrant Name	Tree.com, Inc.
Entity Central Index Key	0001434621
Document Type	10-Q
Document Period End Date	Mar. 31, 2013
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		11,251,154
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	$ 28,080	$ 13,235
Costs and expenses
Cost of revenue (exclusive of depreciation shown separately below)	1,356	796
Selling and marketing expense	17,255	10,652
General and administrative expense	6,556	4,803
Product development	1,205	774
Depreciation	885	1,224
Amortization of intangibles	43	107
Restructuring and severance	(2)	(64)
Litigation settlements and contingencies (Note 11)	1,028	222
Total costs and expenses	28,326	18,514
Operating loss	(246)	(5,279)
Other income (expense)
Interest expense	(7)	(121)
Loss before income taxes	(253)	(5,400)
Income tax (provision) benefit	(20)	2,131
Net loss from continuing operations	(273)	(3,269)
Gain from sale of discontinued operations, net of tax	98	0
(Loss) income from operations of discontinued operations, net of tax	(2,542)	17,418
(Loss) income from discontinued operations, net of tax	(2,444)	17,418
Net (loss) income	$ (2,717)	$ 14,149
Weighted average basic shares outstanding (in shares)	10,967	10,555
Weighted average diluted shares outstanding (in shares)	10,967	10,555
Net loss per share from continuing operations
Basic (in dollars per share)	$ (0.02)	$ (0.31)
Diluted (in dollars per share)	$ (0.02)	$ (0.31)
Net (loss) income per share from discontinued operations
Basic (in dollars per share)	$ (0.22)	$ 1.65
Diluted (in dollars per share)	$ (0.22)	$ 1.65
Net (loss) income per share attributable to common shareholders
Basic (in dollars per share)	$ (0.25)	$ 1.34
Diluted (in dollars per share)	$ (0.25)	$ 1.34

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
ASSETS:
Cash and cash equivalents	$ 73,326	$ 80,190
Restricted cash and cash equivalents	29,027	29,414
Accounts receivable, net of allowance of $541 and $503, respectively	13,545	11,488
Prepaid and other current assets	4,008	773
Current assets of discontinued operations	433	407
Total current assets	120,339	122,272
Property and equipment, net	5,833	6,155
Goodwill	3,632	3,632
Intangible assets, net	10,788	10,831
Other non-current assets	126	152
Non-current assets of discontinued operations (Note 6)	129	129
Total assets	140,847	143,171
LIABILITIES:
Accounts payable, trade	2,137	2,741
Deferred revenue	643	648
Accrued expenses and other current liabilities	17,857	19,960
Current liabilities of discontinued operations	32,925	31,017
Total current liabilities	53,562	54,366
Other non-current liabilities	751	936
Deferred income taxes	4,712	4,694
Non-current liabilities of discontinued operations (Note 6)	236	253
Total liabilities	59,261	60,249
Commitments and contingencies (Note 11)
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 12,422,020 and 12,195,209 shares, respectively, and outstanding 11,233,541 and 11,006,730 shares, respectively	124	122
Additional paid-in capital	905,071	903,692
Accumulated deficit	(814,197)	(811,480)
Treasury stock 1,188,479 shares	(9,412)	(9,412)
Total shareholders' equity	81,586	82,922
Total liabilities and shareholders' equity	$ 140,847	$ 143,171

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance (in dollars)	$ 541	$ 503
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	12,422,020	12,195,209
Common stock, outstanding shares	11,233,541	11,006,730
Treasury stock, shares	1,188,479	1,188,479

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
Increase (Decrease) in Stockholders' Equity
Revision (Note 1) (Restatement adjustment)		$ (4)	$ 4
Revision (Note 1) (in shares) (Restatement adjustment)		(430)
Balance at Dec. 31, 2012 (As previously reported)	82,922	126	903,688	(811,480)	(9,412)
Balance at Dec. 31, 2012	82,922	122	903,692	(811,480)	(9,412)
Balance (in shares) at Dec. 31, 2012 (As previously reported)		12,625			1,188
Balance (in shares) at Dec. 31, 2012		12,195			1,188
Comprehensive income (loss):
Net loss for the three months ended March 31, 2013	(2,717)			(2,717)
Comprehensive income	(2,717)					(2,717)
Non-cash compensation	1,433		1,433
Dividends	618		618
Issuance of common stock upon exercise of stock options and vesting of restricted stock units, net of withholding taxes	(670)	2	(672)
Issuance of common stock upon exercise of stock options and vesting of restricted stock units, net of withholding taxes (in shares)		227
Balance at Mar. 31, 2013	$ 81,586	$ 124	$ 905,071	$ (814,197)	$ (9,412)
Balance (in shares) at Mar. 31, 2013		12,422			1,188

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Cash flows from operating activities attributable to continuing operations:
Net (loss) income	$ (2,717)	$ 14,149
Less loss (income) from discontinued operations, net of tax	2,444	(17,418)
Net loss from continuing operations	(273)	(3,269)
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	24	60
Amortization of intangibles	43	107
Depreciation	885	1,224
Non-cash compensation expense	1,433	1,184
Deferred income taxes	18	76
Bad debt expense (benefit)	29	(5)
Changes in current assets and liabilities:
Accounts receivable	(2,085)	(166)
Prepaid and other current assets	(2,348)	(129)
Accounts payable, accrued expenses and other current liabilities	(2,520)	(3,721)
Income taxes payable	(430)	(103)
Deferred revenue	(6)	12
Other, net	(186)	(57)
Net cash used in operating activities attributable to continuing operations	(5,416)	(4,787)
Cash flows from investing activities attributable to continuing operations:
Capital expenditures	(587)	(606)
Decrease (increase) in restricted cash	386	(2,401)
Net cash used in investing activities attributable to continuing operations	(201)	(3,007)
Cash flows from financing activities attributable to continuing operations:
Issuance of common stock, net of withholding taxes	(671)	(827)
Net cash used in financing activities attributable to continuing operations	(671)	(827)
Total cash used in continuing operations	(6,288)	(8,621)
Net cash (used in) provided by operating activities attributable to discontinued operations	(576)	71,421
Net cash provided by investing activities attributable to discontinued operations		6,066
Net cash used in financing activities attributable to discontinued operations		(55,454)
Total cash (used in) provided by discontinued operations	(576)	22,033
Net (decrease) increase in cash and cash equivalents	(6,864)	13,412
Cash and cash equivalents at beginning of period	80,190	45,541
Cash and cash equivalents at end of period	$ 73,326	$ 58,953

ORGANIZATION

3 Months Ended

Mar. 31, 2013

ORGANIZATION

ORGANIZATION

NOTE 1—ORGANIZATION

Company Overview

Tree.com, Inc. 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®, GetSmart®, DegreeTree®, LendingTreeAutos, DoneRight®, ServiceTreeSM and InsuranceTree®. Together, these brands serve as an ally for consumers who are looking to comparison-shop for loans, education programs, home services providers and other services from multiple businesses and professionals that will compete for their business.

Segment Reporting

Effective December 31, 2012, we expanded our reportable segments from one to two, consisting of mortgage and non-mortgage. The change was made as the convergence of economic similarities associated with our mortgage and non-mortgage operating segments was no longer expected. This decision was made in connection with the update of our annual budget and forecast, which occurs in the fourth quarter each year. The non-mortgage reportable segment consists of our auto, education and home services operating segments, which are not yet mature businesses and have been aggregated. Prior period results have been reclassified to conform with the change in reportable segments.

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 with Discover Bank, a wholly-owned subsidiary of Discover Financial Services, as amended on 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 (June 6, 2013), subject to 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. Of the initial purchase price payment, $17.1 million 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 March 31, 2013 and December 31, 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 has been a network lender on our mortgage exchange since closing of the transaction.

Basis of Presentation

The accompanying unaudited interim consolidated financial statements as of March 31, 2013 and 2012 and for the three 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 months ended March 31, 2013 are not necessarily indicative of the results to be expected for the year ending December 31, 2013, 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, 2012.

Revision of Prior Period Financial Statements

In connection with the preparation of our consolidated financial statements for the first quarter of 2013, we determined that the number of outstanding shares has been overstated in prior periods due to issuances of unrestricted shares upon satisfaction of vesting conditions on restricted shares from 2009 to 2012 without canceling the original restricted share certificates. This resulted in double counting of certain vested restricted shares in the calculation of shares outstanding. Management has determined that unrestricted shares issued upon vesting of restricted shares should not have been considered validly issued or outstanding until the associated restricted shares were canceled. All of the restricted stock awards that were double counted were issued to our Chairman and CEO. The error in shares noted above was not reflected in our Chairman and CEO’s filings made under Section 13(d) or Section 16 of the Securities Exchange Act of 1934 or in our disclosures of his holdings in public filings. In addition, our weighted average share calculation has erroneously included restricted shares, resulting in errors in the previously reported weighted average shares and earnings per share.

On December 26, 2012, we paid a special dividend of $1.00 per share to our shareholders of record on December 17, 2012. The dividend was paid on all shares shown as outstanding in our records, including the shares granted to our Chairman and CEO for which management has determined should not have been considered issued or outstanding. As a result, we unintentionally overpaid $0.4 million in dividends to our Chairman and CEO, which was presented as a financing cash outflow at December 31, 2012. Such amount was recorded as a receivable at March 31, 2013 and will be presented as a financing cash inflow when repaid to the Company. Other than that special dividend, we have not declared or paid any cash dividends on our common stock. There was also a related error in the dividend accrual recorded for unvested shares entitled to the dividend upon vesting, resulting in an over accrual of $0.2 million at December 31, 2012.

In accordance with ASC 250-10, we assessed materiality of the errors and concluded that the errors were not material to any of our previously issued financial statements. Accordingly, we will revise our previously issued financial statements prospectively to correct these errors.

The following table presents the effect of these corrections on the Company’s Consolidated Statements of Operations for the years ended December 31, 2012 and December 31, 2011 (in thousands, except per share amounts):

	Year Ended December 31, 2012									Year Ended December 31, 2011
	As Reported			Adjustment			As Revised			As Reported			Adjustment			As Revised
Weighted average basic shares outstanding	11,313			(618		)	10,695			10,995			(618		)	10,377
Weighted average diluted shares outstanding	11,313			(618		)	10,695			10,995			(618		)	10,377
Net loss per share from continuing operations
Basic	$	(0.20	)	$	(0.01	)	$	(0.21	)	$	(4.52	)	$	(0.27	)	$	(4.79	)
Diluted	$	(0.20	)	$	(0.01	)	$	(0.21	)	$	(4.52	)	$	(0.27	)	$	(4.79	)
Net income (loss) per share from discontinuing operations
Basic	$	4.32		$	0.25		$	4.57		$	(0.89	)	$	(0.05	)	$	(0.94	)
Diluted	$	4.32		$	0.25		$	4.57		$	(0.89	)	$	(0.05	)	$	(0.94	)
Net income (loss) per share attributable to common shareholders
Basic	$	4.12		$	0.24		$	4.36		$	(5.41	)	$	(0.32	)	$	(5.73	)
Diluted	$	4.12		$	0.24		$	4.36		$	(5.41	)	$	(0.32	)	$	(5.73	)

For the years ended December 31, 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.

The following tables present the effect of these corrections on the Company’s Consolidated Statements of Operations for each of the quarters in the year ended December 31, 2012 (in thousands, except per share amounts):

	Three months ended March 31, 2012									Three months ended June 30, 2012
	As Reported			Adjustment			As Revised			As Reported			Adjustment			As Revised
Weighted average basic shares outstanding	11,173			(618		)	10,555			11,303			(618		)	10,685
Weighted average diluted shares outstanding	11,414			(859		)*	10,555			11,303			(618		)	10,685
Net loss per share from continuing operations
Basic	$	(0.29	)	$	(0.02	)	$	(0.31	)	$	(0.16	)	$	(0.00	)	$	(0.16	)
Diluted	$	(0.29	)	$	(0.02	)	$	(0.31	)	$	(0.16	)	$	(0.00	)	$	(0.16	)
Net income per share from discontinuing operations
Basic	$	1.56		$	0.09		$	1.65		$	2.44		$	0.14		$	2.58
Diluted	$	1.53		$	0.12	*	$	1.65		$	2.44		$	0.14		$	2.58
Net income per share attributable to common shareholders
Basic	$	1.27		$	0.07		$	1.34		$	2.28		$	0.13		$	2.41
Diluted	$	1.24		$	0.10	*	$	1.34		$	2.28		$	0.13		$	2.41

* Includes correction of an error of 241 shares and $0.03 per share made during the first quarter of 2012 related to the control number utilized for diluted earnings per share.

	Three months ended September 30, 2012							Three months ended December 31, 2012
	As Reported		Adjustment			As Revised		As Reported			Adjustment			As Revised
Weighted average basic shares outstanding	11,389		(618		)	10,771		11,386			(618		)	10,768
Weighted average diluted shares outstanding	12,003		(618		)	11,385		12,175			(618		)	11,557
Net income per share from continuing operations
Basic	$	0.02	$	0.01		$	0.03	$	0.22		$	0.01		$	0.23
Diluted	$	0.02	$	0.00		$	0.02	$	0.21		$	0.01		$	0.22
Net income (loss) per share from discontinuing operations
Basic	$	0.36	$	0.02		$	0.38	$	(0.02	)	$	0.00		$	(0.02	)
Diluted	$	0.35	$	0.01		$	0.36	$	(0.02	)	$	0.00		$	(0.02	)
Net income per share attributable to common shareholders
Basic	$	0.38	$	0.03		$	0.41	$	0.20		$	0.02		$	0.22
Diluted	$	0.37	$	0.01		$	0.38	$	0.19		$	0.01		$	0.20

The following table presents the effect these errors have on the Consolidated Balance Sheet at December 31, 2012:

	December 31, 2012
	As Reported	Adjustment		As Adjusted
Issued shares	12,625,678	(430,469	)	12,195,209
Outstanding shares	11,437,199	(430,469	)	11,006,730

SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2013

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 U.S. generally accepted accounting principles. 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: loan loss obligations; 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.

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):

	March 31, 2013		December 31, 2012
Cash in escrow for surety bonds	$	6,501	$	6,500
Cash in escrow for corporate purchasing card program	400		800
Cash in escrow for sale of LTL (Note 6)	17,077		17,077
Cash in escrow for earnout related to an acquisition (Note 5)	1,956		1,956
Cash restricted for loan loss obligations	3,051		3,051
Other	42		30
Total restricted cash and cash equivalents	$	29,027	$	29,414

Certain Risks and Concentrations

Our business is subject to certain risks and concentrations including dependence on third-party technology providers, exposure to risks associated with online commerce security and credit card fraud.

Financial instruments, which potentially subject us to concentration of credit risk, consist primarily of cash and cash equivalents. Cash and cash equivalents are in excess of Federal Deposit Insurance Corporation insurance limits, but are maintained with quality financial institutions of high credit.

Due to the nature of the mortgage lending industry, interest rate increases may negatively impact future revenue from our lender network.

Lenders participating on our lender network can offer their products directly to consumers through brokers, mass marketing campaigns or through other traditional methods of credit distribution. These lenders can also offer their products online, either directly to prospective borrowers, through one or more of our online competitors, or both. If a significant number of potential consumers are able to obtain loans from our participating lenders without utilizing our service, our ability to generate revenue may be limited. Because we do not have exclusive relationships with the lenders whose loan offerings are offered on our online marketplace, consumers may obtain offers and loans from these lenders without using our service.

We maintain operations solely in the United States.

Recent Accounting Pronouncements

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 is effective on a retrospective basis for all comparative periods presented beginning on January 1, 2013. The adoption of this guidance did not 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. The adoption of this guidance did not have a material impact on our consolidated financial statements.

In February 2013, the FASB issued ASU No. 2013-04, “Liabilities.” ASU No. 2013-04 requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance in this ASU also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We are evaluating the impact that the adoption will have on our consolidated financial statements in fiscal 2014.

- Definition

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

+ References+ Details

GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2013

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):

	March 31, 2013			December 31, 2012
Goodwill	$	486,720		$	486,720
Accumulated impairment losses		(483,088	)		(483,088	)
Net goodwill	$	3,632		$	3,632
Intangible assets with indefinite lives	$	10,142		$	10,142
Intangible assets with definite lives, net	646			689
Total intangible assets, net	$	10,788		$	10,831

Intangible assets with indefinite lives relate to our trademarks.

At March 31, 2013, intangible assets with definite lives relate to the following ($ in thousands):

	Cost		Accumulated Amortization			Net		Weighted Average Amortization Life (Years)
Purchase agreements	$	236	$	(177	)	$	59	5.0
Technology	25,194		(25,173		)	21		3.0
Customer lists	6,682		(6,121		)	561		4.2
Other	1,517		(1,512		)	5		2.5
Total	$	33,629	$	(32,983	)	$	646

At December 31, 2012, intangible assets with definite lives relate to the following ($ in thousands):

	Cost		Accumulated Amortization			Net		Weighted Average Amortization Life (Years)
Purchase agreements	$	236	$	(165	)	$	71	5.0
Technology	25,194		(25,158		)	36		3.0
Customer lists	6,682		(6,106		)	576		4.2
Other	1,517		(1,511		)	6		2.5
Total	$	33,629	$	(32,940	)	$	689

Amortization of intangible assets with definite lives is computed on a straight-line basis and, based on March 31, 2013 balances, such amortization for the next five years is estimated to be as follows (in thousands):

	Amount
Nine months ending December 31, 2013	$	103
Year ending December 31, 2014	86
Year ending December 31, 2015	60
Year ending December 31, 2016	60
Year ending December 31, 2017	60
Thereafter	277
Total	$	646

- 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.

+ References+ Details

PROPERTY AND EQUIPMENT

3 Months Ended

Mar. 31, 2013

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

NOTE 4—PROPERTY AND EQUIPMENT

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

	March 31, 2013			December 31, 2012
Computer equipment and capitalized software	$	25,603		$	25,592
Leasehold improvements	2,074			2,055
Furniture and other equipment	1,303			1,302
Projects in progress	1,026			500
	30,006			29,449
Less: accumulated depreciation and amortization	(24,173		)	(23,294		)
Total property and equipment, net	$	5,833		$	6,155

- 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

3 Months Ended

Mar. 31, 2013

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):

	March 31, 2013		December 31, 2012
Litigation accruals	$	585	$	535
Accrued advertising expense	6,325		6,638
Accrued compensation and benefits	1,727		2,603
Accrued professional fees	1,483		1,399
Accrued restructuring costs	366		364
Customer deposits and escrows	2,399		2,101
Deferred rent	227		217
Other	4,745		6,103
Total accrued expenses and other current liabilities	$	17,857	$	19,960

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

An additional $0.4 million and $0.5 million of accrued restructuring liability is classified in other long-term liabilities at March 31, 2013 and December 31, 2012, respectively.

DISCONTINUED OPERATIONS

3 Months Ended

Mar. 31, 2013

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 has participated as a network lender on our mortgage exchange since the closing of the transaction. 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 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. In May 2013, we settled this indemnification claim by agreeing to credit Discover for $1.5 million in future services. A provision for this matter of $1.5 million and $1.6 million was recorded at March 31, 2013 and December 31, 2012, respectively.

The revenue and net loss for the Real Estate businesses that are reported as discontinued operations for the three months ended March 31, 2013 and 2012 were as follows (in thousands):

	Three Months Ended March 31,
	2013		2012
Revenue	$	1	$	41
Income (loss) before income taxes	$	7	$	(74	)
Income tax benefit (expense)	—		—
Net income (loss)	$	7	$	(74	)

The revenue and net income (loss) for LendingTree Loans that are reported as discontinued operations for the three months ended March 31, 2013 and 2012 were as follows (in thousands):

	Three Months Ended March 31,
	2013			2012
Revenue	$	(1,195	)	$	50,866
Income (loss) before income taxes	$	(2,498	)	$	19,722
Income tax expense	(51		)	(2,230		)
Gain from sale of discontinued operations, net of tax	98			—
Net income (loss)	$	(2,451	)	$	17,492

The assets and liabilities of Real Estate that are reported as discontinued operations as of March 31, 2013 and December 31, 2012 were as follows (in thousands):

	March 31, 2013			December 31, 2012
Current liabilities	(232		)	(206		)
Net liabilities	$	(232	)	$	(206	)

The assets and liabilities of LendingTree Loans that are reported as discontinued operations as of March 31, 2013 and December 31, 2012 were as follows (in thousands):

	March 31, 2013			December 31, 2012
Current assets	$	433		$	407
Non-current assets	129			129
Current liabilities	(32,693		)	(30,811		)
Non-current liabilities	(236		)	(253		)
Net liabilities	$	(32,367	)	$	(30,528	)

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. The remaining operations are being wound down. These wind-down activities have included, among other things, selling the balance of loans held for sale to investors, which has been completed, paying off and then terminating the warehouse lines of credit, which occurred on July 21, 2012, and settling derivative obligations, which has been completed. 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 consisted primarily of residential first mortgage loans that were secured by residential real estate throughout the United States.

Loans held for sale were recorded at fair value, with the exception of any loans that had been repurchased from investors or loans originated prior to January 1, 2008 on which we did not elect the fair value option. The fair value of loans held for sale was determined using current secondary market prices for loans with similar coupons, maturities and credit quality.

Interest on mortgage loans held for sale was recognized as earned and was only accrued if deemed collectible. Interest was generally deemed uncollectible when a loan became three months or more delinquent or when a loan had a defect affecting its salability. Delinquency was calculated based on the contractual due date of the loan. Loans were written off when deemed uncollectible.

There were no loans held for sale as of March 31, 2013 and December 31, 2012.

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 March 31, 2013 and December 31, 2012 (in thousands):

		As of March 31, 2013
		Loans on Nonaccrual—