Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2013	Nov. 05, 2013
Entity Information [Line Items]
Entity Registrant Name	Tree.com, Inc.
Entity Central Index Key	0001434621
Document Type	10-Q
Document Period End Date	Sep. 30, 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		11,139,557
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenue	$ 37,343	$ 23,296	$ 102,829	$ 53,501
Costs and expenses
Cost of revenue (exclusive of depreciation shown separately below)	1,733	1,231	5,039	2,830
Selling and marketing expense	24,832	13,376	68,473	34,997
General and administrative expense	5,610	5,532	17,817	16,166
Product development	1,217	853	3,914	2,383
Depreciation	891	934	2,648	3,204
Amortization of intangibles	33	101	119	314
Restructuring and severance	(70)	(48)	76	(109)
Litigation settlements and contingencies	2,875	510	6,812	948
Total costs and expenses	37,121	22,489	104,898	60,733
Operating income (loss)	222	807	(2,069)	(7,232)
Other income (expense)
Interest expense	(4)	(349)	(18)	(606)
Income (loss) before income taxes	218	458	(2,087)	(7,838)
Income tax benefit (provision)	98	(188)	97	3,086
Net income (loss) from continuing operations	316	270	(1,990)	(4,752)
Gain from sale of discontinued operations, net of tax	0	0	10,101	24,313
Income (loss) from operations of discontinued operations, net of tax	(529)	4,112	(3,962)	24,745
Income (loss) from discontinued operations	(529)	4,112	6,139	49,058
Net income (loss)	$ (213)	$ 4,382		$ 44,306
Weighted average basic shares outstanding	11,017	10,771	11,039	10,670
Weighted average diluted shares outstanding	11,720	11,385	11,039	10,670
Net (loss) per share from continuing operations
Basic (in dollars per share)	$ 0.03	$ 0.03	$ (0.18)	$ (0.45)
Diluted (in dollars per share)	$ 0.03	$ 0.02	$ (0.18)	$ (0.45)
Net income (loss) per share from discontinued operations
Basic (in dollars per share)	$ (0.05)	$ 0.38	$ 0.56	$ 4.60
Diluted (in dollars per share)	$ (0.05)	$ 0.36	$ 0.56	$ 4.60
Net income (loss) per share
Basic (in dollars per share)	$ (0.02)	$ 0.41	$ 0.38	$ 4.15
Diluted (in dollars per share)	$ (0.02)	$ 0.38	$ 0.38	$ 4.15

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
ASSETS:
Cash and cash equivalents	$ 87,752	$ 80,190
Restricted cash and cash equivalents	26,018	29,414
Accounts receivable, net of allowance of $485 and $503, respectively	15,446	11,488
Prepaid and other current assets	2,043	773
Current assets of discontinued operations	31	407
Total current assets	131,290	122,272
Property and equipment, net	5,537	6,155
Goodwill	3,632	3,632
Intangible assets, net	10,712	10,831
Other non-current assets	110	152
Non-current assets of discontinued operations	129	129
Total assets	151,410	143,171
LIABILITIES:
Accounts payable, trade	3,034	2,741
Deferred revenue	8	648
Accrued expenses and other current liabilities	24,562	19,960
Current liabilities of discontinued operations	31,946	31,017
Total current liabilities	59,550	54,366
Other non-current liabilities	481	936
Deferred income taxes	4,595	4,694
Non-current liabilities of discontinued operations	151	253
Total liabilities	64,777	60,249
Commitments and contingencies
SHAREHOLDERS' EQUITY:
Preferred stock $.01 par value; authorized 5,000,000 shares; none issued or outstanding	0	0
Common stock $.01 par value; authorized 50,000,000 shares; issued 12,505,331 and 12,195,209 shares, respectively, and outstanding 11,136,399 and 11,006,730 shares, respectively	125	122
Additional paid-in capital	906,572	903,692
Accumulated deficit	(807,331)	(811,480)
Treasury stock 1,368,932 and 1,188,479 shares, respectively	(12,733)	(9,412)
Total shareholders' equity	86,633	82,922
Total liabilities and shareholders' equity	$ 151,410	$ 143,171

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]
Accounts receivable, allowance (in dollars)	$ 485	$ 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	12,505,331	12,195,209
Common stock, outstanding shares	11,136,399	11,006,730
Treasury stock, shares	1,368,932	1,188,479

CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (USD $) In Thousands, except Share data, 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 (in shares) (Restatement adjustment)		(430,000)
Revision (Restatement adjustment)		$ (4)	$ 4
Balance at Dec. 31, 2012 (As previously reported)	82,922	126	903,688	(811,480)	(9,412)
Balance (in shares) at Dec. 31, 2012 (As previously reported)		12,625,000			1,188,000
Balance at Dec. 31, 2012	82,922	122	903,692	(811,480)	(9,412)
Balance (in shares) at Dec. 31, 2012		12,195,000			1,188,000
Comprehensive income:
Net income for the nine months ended September 30, 2013				4,149		4,149
Comprehensive income						4,149
Non-cash compensation	4,280		4,280
Purchase of treasury stock	(3,321)				(3,321)
Purchase of treasury stock (in shares)	180,453				181,000
Dividends	618		618
Issuance of common stock upon exercise of stock options and vesting of restricted stock units, net of withholding taxes	(2,015)	3	(2,018)
Issuance of common stock upon exercise of stock options and vesting of restricted stock units, net of withholding taxes (in shares)		310,000
Balance at Sep. 30, 2013	$ 86,633	$ 125	$ 906,572	$ (807,331)	$ (12,733)
Balance (in shares) at Sep. 30, 2013		12,505,000			1,369,000

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities attributable to continuing operations:
Net income (loss)		$ 44,306
Income from discontinued operations, net of tax	(6,139)	(49,058)
Net income (loss) from continuing operations	(1,990)	(4,752)
Adjustments to reconcile net loss from continuing operations to net cash provided by (used in) operating activities attributable to continuing operations:
Loss on disposal of fixed assets	25	344
Amortization of intangibles	119	314
Depreciation	2,648	3,204
Non-cash compensation expense	4,278	3,565
Deferred income taxes	(99)	134
Bad debt expense (benefit)	(2)	(4)
Changes in current assets and liabilities:
Accounts receivable	(5,201)	(4,938)
Prepaid and other current assets	(656)	401
Accounts payable, accrued expenses and other current liabilities	5,940	(2,492)
Income taxes payable	(570)	(658)
Deferred revenue	(640)	986
Other, net	(457)	(410)
Net cash provided by (used in) operating activities attributable to continuing operations	3,395	(4,306)
Cash flows from investing activities attributable to continuing operations:
Capital expenditures	(2,054)	(2,046)
Decrease (increase) in restricted cash	3,396	(4,047)
Net cash provided by (used in) investing activities attributable to continuing operations	1,342	(6,093)
Cash flows from financing activities attributable to continuing operations:
Issuance of common stock, net of withholding taxes	(1,889)	(301)
Purchase of treasury stock	(3,321)	(360)
Dividends	185	0
Decrease in restricted cash	0	4,150
Net cash provided by (used in) financing activities attributable to continuing operations	(5,025)	3,489
Total cash used in continuing operations	(288)	(6,910)
Net cash provided by (used in) operating activities attributable to discontinued operations	(2,150)	222,885
Net cash provided by investing activities attributable to discontinued operations	10,000	25,923
Net cash used in financing activities attributable to discontinued operations	0	(197,659)
Total cash provided by discontinued operations	7,850	51,149
Net increase in cash and cash equivalents	7,562	44,239
Cash and cash equivalents at beginning of period	80,190	45,541
Cash and cash equivalents at end of period	$ 87,752	$ 89,780

ORGANIZATION

9 Months Ended

Sep. 30, 2013

ORGANIZATION

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!®, ServiceTree® 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.

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 the contingent amount of $10.0 million was paid in the second quarter of 2013 and recognized as a gain from sale of discontinued operations.

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 purchase price paid, $18.1 million is being held in escrow pending resolution of certain actual and/or contingent liabilities that remain with us following the sale, as of September 30, 2013. The escrowed amount is recorded as restricted cash at September 30, 2013.

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. The services were satisfactorily completed in the second quarter of 2013. Discover remains a network lender on our mortgage exchange following completion of the services.

Basis of Presentation

The accompanying unaudited interim consolidated financial statements as of September 30, 2013 and for the three and nine months ended September 30, 2013 and 2012, respectively, 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 GAAP 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 nine months ended September 30, 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 had 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 had 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 for the year ended December 31, 2012. Such amount was repaid to the company during the second quarter of 2013 and is presented as a financing cash inflow in the nine months ended September 30, 2013. 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 special 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 corrected the dividend errors in the first quarter of 2013 and we are revising our previously issued financial statements prospectively to correct share 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:
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:
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:
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 had 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

9 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

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.

Restricted Cash

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



	September 30, 2013		December 31, 2012
Cash in escrow for surety bonds	$	2,453	$	6,500
Cash in escrow for corporate purchasing card program	400		800
Cash in escrow for sale of LTL (Note 13)	18,117		17,077
Cash in escrow for earnout related to an acquisition	1,956		1,956
Cash restricted for loan loss obligations	3,051		3,051
Other	41		30
Total restricted cash and cash equivalents	$	26,018	$	29,414

During the third quarter of 2013, we obtained a reduction in the collateral requirement for certain of our surety bonds, which are required by the various states in which the company currently operates or previously operated. As a result, $4.0 million of cash previously held in escrow was released.

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 Financial Accounting Standards Board ("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 an 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 new accounting guidance that 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 also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The new accounting guidance is 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.

In July 2013, the FASB issued guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The new accounting guidance is effective for interim and annual reporting periods beginning after December 15, 2013, with early adoption permitted. Prospective or retrospective application is permitted. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

- Definition

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

+ References+ Details

GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

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



	September 30, 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	570			689
Total intangible assets, net	$	10,712		$	10,831

Intangible Assets

Intangible assets with indefinite lives relate to our trademarks. Intangible assets with definite lives relate to the following (dollars in thousands):



	Cost		Accumulated Amortization			Net		Weighted Average Amortization Life (Years)
Purchase agreements	$	236	$	(200	)	$	36	5.0
Technology	25,194		(25,194		)	—		3.0
Customer lists	6,682		(6,151		)	531		4.2
Other	1,517		(1,514		)	3		2.5
Balance at September 30, 2013	$	33,629	$	(33,059	)	$	570



	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
Balance at December 31, 2012	$	33,629	$	(32,940	)	$	689

Amortization of intangible assets with definite lives is computed on a straight-line basis and, based on September 30, 2013 balances, such amortization for the next five years is estimated to be as follows (in thousands):



	Amortization Expense
Three months ending December 31, 2013	$	28
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	276
Total intangible assets with definite lives, net	$	570

- 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

9 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

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



	September 30, 2013			December 31, 2012
Computer equipment and capitalized software	$	26,439		$	25,592
Leasehold improvements	2,096			2,055
Furniture and other equipment	1,303			1,302
Projects in progress	1,545			500
Total gross property and equipment	31,383			29,449
Less: accumulated depreciation and amortization	(25,846		)	(23,294		)
Total property and equipment, net	$	5,537		$	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

9 Months Ended

Sep. 30, 2013

Payables and Accruals [Abstract]

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

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



	September 30, 2013		December 31, 2012
Litigation accruals	$	515	$	535
Accrued advertising expense	9,766		6,638
Accrued compensation and benefits	2,581		2,603
Accrued professional fees	2,863		1,399
Accrued restructuring costs	298		364
Customer deposits and escrows	3,891		2,101
Deferred rent	242		217
Other	4,406		6,103
Total accrued expenses and other current liabilities	$	24,562	$	19,960

An additional $0.3 million and $0.5 million of accrued restructuring liability is classified in other non-current liabilities at September 30, 2013 and December 31, 2012, respectively.

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

The basic and diluted earnings per share were determined based on the following share data (in thousands):



	Three Months Ended September 30,		Nine Months Ended September 30,
	2013	2012	2013	2012
Basic income per share:
Weighted average common shares	11,017	10,771	11,039	10,670
Diluted income per share:
Effect of stock options	419	244	—	—
Effect of dilutive share awards	284	370	—	—
Weighted average common shares	11,720	11,385	11,039	10,670

For the three months ended September 30, 2013 and 2012, we had net income from continuing operations. Accordingly, potentially dilutive securities were included in the denominator for computing diluted earnings per share. Approximately 0.3 million shares related to potentially dilutive securities were excluded from the calculation of diluted earnings per share for the three months ended September 30, 2012 because their inclusion would have been anti-dilutive. No anti-dilutive shares were excluded for the three months ended September 30, 2013.

For the nine months ended September 30, 2013 and 2012, 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 earnings per share amounts for these periods. For the nine months ended September 30, 2013 and 2012, approximately 0.7 million and 2.1 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.

Common Stock Repurchases

On January 11, 2010, our board of directors authorized the repurchase of up to $10 million of our common stock. During the three and nine months ended September 30, 2013, we purchased 97,726 and 180,453 shares of our common stock for aggregate consideration of $1.8 million and $3.3 million, respectively. At September 30, 2013, we had approximately $0.8 million remaining in our share repurchase authorization.

- Definition

The entire disclosure for earnings per share.

+ References+ Details

STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION

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 nine months ended September 30, 2013 and 2012 (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Cost of revenue	$	4	$	2	$	9	$	6
Selling and marketing expense	242		145		765		504
General and administrative expense	976		1,026		2,885		2,662
Product development	190		136		619		393
Total non-cash compensation expense	$	1,412	$	1,309	$	4,278	$	3,565

The forms of stock-based awards granted to Tree.com employees are principally RSUs, restricted stock and stock options. RSUs are awards in the form of units, denominated in a hypothetical equivalent number of shares of Tree.com common stock and with the value of each award equal to the fair value of Tree.com common stock at the date of grant. RSUs may be settled in cash, stock or both, as determined by the Compensation Committee 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 market condition vesting, where certain market conditions must be achieved before an award vests. Tree.com recognizes 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 Tree.com common stock awarded and expensed ratably as non-cash compensation over the vesting term.

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.

During February 2013, our Chairman and CEO was granted 62,500 shares of restricted stock with a fair value of $1.1 million and a three year vesting period. The fair value of the restricted stock is based upon the market price of the underlying common stock as of the date of grant. Compensation expense is recognized on a straight-line basis over the vesting period. He was also granted 62,500 shares of restricted stock which vest based on the achievement of a market-based performance target within three years, but not earlier than one year from the grant date. The market-based performance target was achieved during the third quarter of 2013. The fair value of the market-based performance restricted stock was determined to be $0.9 million using a Monte Carlo simulation model. The fair value on grant date is recognized over the requisite service period.

A summary of changes in outstanding stock options for the nine months ended September 30, 2013 is as follows:



	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
					(in years)	(in thousands)
Options outstanding at January 1, 2013	1,072,503		$	8.97
Granted	—		—
Exercised	(27,029	)	7.79
Forfeited	—		—
Expired	(1,737	)	11.63
Options outstanding at September 30, 2013	1,043,737		8.99		5.00	$	18,020
Options exercisable at September 30, 2013	892,445		$	9.35	4.47	$	15,092

The following table summarizes the information about stock options outstanding and exercisable as of September 30, 2013:



	Options Outstanding				Options Exercisable
Range of Option Exercise Prices	Outstanding	Weighted Average Remaining Contractual Life in Years	Weighted Average Exercise Price		Exercisable	Weighted Average Exercise Price
$0.01 to $4.99	173	0.45	$	2.49	173	$	2.49
$5.00 to $7.45	304,327	7.96	6.65		153,035	6.39
$7.46 to $9.99	602,418	4.27	8.46		602,418	8.46
$10.00 to $14.99	10,029	1.00	12.27		10,029	12.27
$15.00 to $19.99	80,127	1.68	15.00		80,127	15.00
$20.00 to $20.19	46,663	1.68	20.19		46,663	20.19
As of September 30, 2013	1,043,737	5.00	$	8.99	892,445	$	9.35

Nonvested RSUs, restricted stock and restricted stock with a market condition as of September 30, 2013 and changes during the nine months ended September 30, 2013 are as follows:



	RSUs				Restricted Stock				Restricted Stock Market Condition
	Number of Shares		Weighted Average Grant Date Fair Value		Number of Shares		Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
Nonvested at January 1, 2013	757,111		$	9.09	187,501		$	7.44	—	$	—
Granted	289,745		18.04		62,500		17.49		62,500	13.93
Vested	(276,291	)	9.60		(187,501	)	7.44		—	—
Forfeited	(76,545	)	9.56		—		—		—	—
Nonvested at September 30, 2013	694,020		$	12.69	62,500		$	17.49	62,500	$	13.93

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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-Name Staff Accounting Bulletin (SAB)

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-Name Statement of Position (SOP)

-Number 93-6

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+ Details

INCOME TAXES

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

INCOME TAXES



	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
	(in thousands, except percentages)
Income tax benefit (provision)	$	98		$	(188	)	$	97		$	3,086
Effective tax rate	45.0		%	41.0		%	4.6		%	39.4		%

The company established a valuation allowance of approximately $55 million during the year ended December 31, 2012 to offset its U.S. net deferred tax assets, after excluding deferred tax liabilities related to indefinite-lived intangible assets that are not anticipated to provide a source of taxable income in the foreseeable future. For the three and nine months ended September 30, 2013, the effective tax rate was impacted by the indefinite-lived intangible assets, which were adjusted for the change to the North Carolina income tax rate enacted during the period. The effect of a change in tax rates on deferred tax balances is not apportioned among interim periods, but is recognized discretely in the period in which the change occurs. As such, all of the impact of the rate change has been recorded during the three months ended September 30, 2013, resulting in a higher effective tax rate. For the three and nine months ended September 30, 2012, our effective tax rates were higher than the federal statutory rate primarily due to the impact of state income taxes.

- 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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-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.4-08.(h))

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-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 08

-Paragraph h

-Article 4

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-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 136, 172

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+ Details

DISCRETIONARY CASH BONUS	9 Months Ended
DISCRETIONARY CASH BONUS	Sep. 30, 2013
Compensation Related Costs [Abstract]
DISCRETIONARY CASH BONUS	DISCRETIONARY CASH BONUS During February 2013, the company incurred a compensation charge of $0.9 million related to a discretionary cash bonus payment to employee stock option holders.

- Definition

The entire disclosure for compensation costs, including compensated absences accruals, compensated absences liability, deferred compensation arrangements and income statement compensation items. Deferred compensation arrangements may include a description of an arrangement with an individual employee, which is generally an employment contract between the entity and a selected officer or key employee containing a promise by the employer to pay certain amounts at designated future dates, usually including a period after retirement, upon compliance with stipulated requirements. This type of arrangement is distinguished from broader based employee benefit plans as it is usually tailored to the employee. Disclosure also typically includes the amount of related compensation expense recognized during the reporting period, the number of shares (units) issued during the period under such arrangements, and the carrying amount as of the balance sheet date of the related liability.

+ References+ Details

CONTINGENCIES	9 Months Ended
CONTINGENCIES	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES Overview We are involved in legal proceedings on an ongoing basis. If we believe that a loss arising from such matters is probable and can be reasonably estimated, we accrue the estimated liability in our financial statements. If only a range of estimated losses can be determined, we accrue an amount within the range that, in our judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, we accrue the low end of the range. For those proceedings in which an unfavorable outcome is reasonably possible but not probable, we have disclosed an estimate of the reasonably possible loss or range of losses or we have concluded that an estimate of the reasonably possible loss or range of losses arising directly from the proceeding (i.e., monetary damages or amounts paid in judgment or settlement) is not material. In assessing the materiality of a legal proceeding, we evaluate, among other factors, the amount of monetary damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs (e.g., injunctive relief) that may require us to change our business practices in a manner that could have a material adverse impact on our business. With respect to the matters disclosed in this Note 10, unless otherwise indicated, we are unable to estimate the possible loss or range of losses that could potentially result from the application of such non-monetary remedies. Specific Matters Intellectual Property Litigation Zillow LendingTree v. Zillow, Inc., et al. Civil Action No. 3:10-cv-439. On September 8, 2010, the company filed an action for patent infringement in the US District Court for the Western District of North Carolina against Zillow, Inc., Nextag, Inc., Quinstreet, Inc., Quinstreet Media, Inc. and Adchemy, Inc. The complaint was amended to include Leadpoint, Inc. d/b/a Securerights on September 24, 2010. The complaint alleges that each of the defendants infringe one or both of the company's patents—U.S. Patent No. 6,385,594, entitled "Method and Computer Network for Co-Ordinating a Loan over the Internet," and U.S. Patent No. 6,611,816, entitled "Method and Computer Network for Co-Ordinating a Loan over the Internet." Collectively, the asserted patents cover computer hardware and software used in facilitating business between computer users and multiple lenders on the internet. The defendants in this action asserted various counterclaims against the company, including the assertion by certain of the defendants of counterclaims alleging illegal monopolization via our maintenance of the asserted patents. In July 2011, the company reached a settlement agreement with Leadpoint, Inc. On July 20, 2011, all claims against Leadpoint, Inc. and all counter-claims against the company by Leadpoint, Inc. were dismissed. In November 2012, the company reached a settlement agreement with Quinstreet, Inc. and Quinstreet Media, Inc. (collectively, the Quinstreet Parties); all claims against the Quinstreet Parties and all counterclaims against the company by the Quinstreet Parties were dismissed. Trial is currently expected in early 2014. The company intends to vigorously defend against all such counterclaims. Internet Patents Corp. Internet Patents Corporation f/k/a InsWeb v. Tree.com, Inc., No. C-12-6505 (U.S. Dist. Ct., N.D. Cal.). In December 2012, the plaintiff filed a patent infringement lawsuit against the company seeking a judgment that we had infringed a patent held by the plaintiff. Process was formally served with respect to this matter in April 2013. The plaintiff sought injunctive relief, damages, costs, expenses, pre- and post-judgment interest, punitive damages and attorneys' fees. The plaintiff alleged that we infringe U.S. Patent No. 7,707,505, entitled "Dynamic Tabs for a Graphical User Interface". On October 25, 2013, the court dismissed the suit based on the finding that the plaintiff's claims failed as a matter of law because the asserted patent is invalid for lack of patent-eligible subject matter. Plaintiff filed a notice of appeal on November 7, 2013. Money Suite The Money Suite Company v. Lending Tree, LLC, No. 1:13-ev-986 (U.S. Dist. Ct, D Del.). In June 2013, the plaintiff filed a patent infringement lawsuit against the company seeking a judgment that we infringed a patent held by plaintiff. The plaintiff alleges that we infringe U.S. Patent No. 6,685,189 for "an apparatus and method using front end network gateways and search criteria for efficient quoting at a remote location". The plaintiff seeks damages (including pre- and post- judgment interest thereon), costs and attorneys' fees. We believe the plaintiff's allegations lack merit and intend to defend against this action vigorously. Other Litigation Boschma Boschma v. Home Loan Center, Inc., No. SACV7-613 (U.S. Dist. Ct., C.D. Cal.). On May 25, 2007, the plaintiffs filed this putative class action against Home Loan Center, Inc. (HLC) in the U.S. District Court for the Central District of California. The plaintiffs allege that HLC sold them an option "ARM" (adjustable-rate mortgage) loan but failed to disclose in a clear and conspicuous manner, among other things, that the interest rate was not fixed, that negative amortization could occur and that the loan had a prepayment penalty. Based upon these factual allegations, the plaintiffs asserted violations of the federal Truth in Lending Act, violations of the Unfair Competition Law, breach of contract, and breach of the covenant of good faith and fair dealing. The plaintiffs purport to represent a class of all individuals who between June 1, 2003 and May 31, 2007 obtained through HLC an option ARM loan on their primary residence located in California, and seek rescission, damages, attorneys' fees and injunctive relief. The plaintiffs have not yet filed a motion for class certification, but have filed a total of eight complaints in connection with this lawsuit. Each of the first seven complaints has been dismissed by the federal and state courts. The plaintiffs filed the eighth complaint (a Second Amended Complaint) in Orange County (California) Superior Court on March 4, 2010 alleging only the fraud and Unfair Competition Law claims. As with each of the seven previous versions of plaintiffs' complaint, the Second Amended Complaint was dismissed in April 2010. The plaintiffs appealed the dismissal and on August 10, 2011, the appellate court reversed the trial court's dismissal and directed the trial court to overrule the demurrer. The case was remanded to superior court. During the second quarter of 2013, the parties reached a tentative settlement agreement with respect to this matter. A preliminary settlement approval hearing is scheduled for November 2013. A provision is included in current liabilities of discontinued operations as of September 30, 2013. The impact of the settlement was not material. Mortgage Store, Inc. Mortgage Store, Inc. v. LendingTree Loans d/b/a Home Loan Center, Inc., No. 6CC250 (Cal. Super. Ct., Orange Cty.). On November 30, 2006, The Mortgage Store, Inc. and Castleview Home Loans, Inc. filed this putative class action against HLC in the California Superior Court for Orange County. The plaintiffs, two former network lenders, alleged that HLC interfered with LendingTree's contracts with network lenders by taking referrals from LendingTree without adequately disclosing the relationship between them and that HLC charged the plaintiffs higher rates and fees than they otherwise would have been charged. Based upon these factual allegations, the plaintiffs assert claims for intentional interference with contractual relations, intentional interference with prospective economic advantage, and violation of the California Unfair Competition Law and California Business and Professions Code §17500. The plaintiffs purport to represent all network lenders from December 14, 2004 to date, and seek damages, restitution, attorneys' fees and punitive damages. The plaintiffs' motion for class certification was granted April 29, 2010. On October 17, 2011, the court granted HLC's motion for summary judgment. Judgment was entered in favor of HLC on April 9, 2012. On June 15, 2012, the plaintiffs filed a Notice of Appeal. The plaintiffs filed their opening appellate brief on December 17, 2012. We filed our opposition to the plaintiffs' appellate brief in April 2013. Oral arguments were heard on this matter on September 25, 2013. We believe the plaintiffs' allegations lack merit and we intend to defend against this action vigorously. Dijkstra Lijkel Dijkstra v. Harry Carenbauer, Home Loan Center, Inc. et al., No. 5:11-cv-152-JPB (U.S. Dist. Ct., N.D.WV). On November 7, 2008, the plaintiffs filed this putative class action in Circuit Court of Ohio County, West Virginia against Harry Carenbauer, HLC, HLC Escrow, Inc. et al. The complaint alleges that HLC engaged in the unauthorized practice of law in West Virginia by permitting persons who were neither admitted to the practice of law in West Virginia nor under the direct supervision of a lawyer admitted to the practice of law in West Virginia to close mortgage loans. The plaintiffs assert claims for declaratory judgment, contempt, injunctive relief, conversion, unjust enrichment, breach of fiduciary duty, intentional misrepresentation or fraud, negligent misrepresentation, violation of the West Virginia Consumer Credit and Protection Act (CCPA), violation of the West Virginia Lender, Broker & Services Act, civil conspiracy, outrage and negligence. The claims against all defendants other than Mr. Carenbauer, HLC and HLC Escrow, Inc. have been dismissed. The case was removed to federal court in October 2011. On January 3, 2013, the court granted a conditional class certification only with respect to the declaratory judgment, contempt, unjust enrichment and CCPA claims. The conditional class includes consumers with mortgage loans in effect any time after November 8, 2007 who obtained such loans through HLC, and whose loans were closed by persons not admitted to the practice of law in West Virginia or by persons not under the direct supervision of a lawyer admitted to the practice of law in West Virginia. A trial is expected in March 2014. We believe that the plaintiffs' allegations lack merit and we intend to defend against this action vigorously. Massachusetts Division of Banks On February 11, 2011, the Massachusetts Division of Banks (the "Division") delivered a Report of Examination/Inspection to LendingTree, LLC, which identified various alleged violations of Massachusetts and federal laws, including the alleged insufficient delivery by LendingTree, LLC of various disclosures to its customers. On October 14, 2011, the Division provided a proposed Consent Agreement and Order to settle the Division's allegations, which the Division had shared with other state mortgage lending regulators. Thirty-four of such state mortgage lending regulators (the "Joining Regulators") indicated that if LendingTree, LLC would enter into the Consent Agreement and Order, they would agree not to pursue any analogous allegations that they otherwise might assert. As of the date of this report, none of the Joining Regulators have asserted any such allegations. The proposed Consent Agreement and Order calls for a fine to be allocated among the Division and the Joining Regulators and for LendingTree, LLC to adopt various new procedures and practices. We have commenced negotiations toward an acceptable Consent Agreement and Order. We do not believe our mortgage exchange business violated any federal or state mortgage lending laws; nor do we believe that any past operations of the mortgage business have resulted in a material violation of any such laws. Should the Division or any Joining Regulator bring any actions relating to the matters alleged in the February 2011 Report of Examination/Inspection, we intend to defend against such actions vigorously. The range of possible loss is estimated to be between $0.5 million and $6.5 million, and a reserve of $0.5 million has been established for this matter as of September 30, 2013.

SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

SEGMENT INFORMATION

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, home services and other 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.

The expenses presented below for each segment include allocations of certain corporate expenses that are identifiable and directly benefit those segments. The unallocated expenses are those corporate overhead expenses that are not directly attributable to a segment and include: corporate expenses such as finance, legal, executive technology support and human resources, as well as elimination of inter-segment revenue and costs.

Adjusted EBITDA, a non-GAAP measure, is the primary metric by which the chief operating decision maker evaluates the performance of our businesses, on which our internal budgets are based and by which management is compensated. Adjusted EBITDA is defined as operating income or loss (which excludes interest expense and taxes) adjusted to exclude amortization of intangibles and depreciation, and to further exclude (1) non-cash compensation expense, (2) non-cash intangible asset impairment charges, (3) gain/loss on disposal of assets, (4) restructuring and severance expenses, (5) litigation settlements and contingencies, (6) adjustments for significant acquisitions or dispositions, and (7) one-time items.

Assets and other balance sheet information are not used by the chief operating decision maker.

Summarized information by segment and reconciliations to Adjusted EBITDA and income (loss) before income taxes is as follows (in thousands):



	Three Months Ended September 30, 2013
	Mortgage		Non-Mortgage			Corporate			Total
Revenue	$	34,257	$	3,086		$	—		$	37,343
Costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	1,545		168			20			1,733
Selling and marketing expense	23,072		1,760			—			24,832
General and administrative expense	711		604			4,295			5,610
Product development	990		227			—			1,217
Depreciation	357		426			108			891
Amortization of intangibles	—		33			—			33
Restructuring and severance	1		(77		)	6			(70		)
Litigation settlements and contingencies	—		—			2,875			2,875
Total costs and expenses	26,676		3,141			7,304			37,121
Operating income (loss)	7,581		(55		)	(7,304		)	222
Adjustments to reconcile to Adjusted EBITDA:
Amortization of intangibles	—		33			—			33
Depreciation	357		426			108			891
Restructuring and severance	1		(77		)	6			(70		)
Loss on disposal of assets	—		—			1			1
Non-cash compensation	411		220			781			1,412
Litigation settlements and contingencies	—		—			2,875			2,875
Adjusted EBITDA	$	8,350	$	547		$	(3,533	)	$	5,364

Adjustments to reconcile to income before income taxes:
Operating income									$	222
Interest expense									(4		)
Income before income taxes									$	218



	Three Months Ended September 30, 2012
	Mortgage		Non-Mortgage			Corporate			Total
Revenue	$	19,471	$	3,563		$	262		$	23,296
Costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	879		149			203			1,231
Selling and marketing expense	9,755		3,807			(186		)	13,376
General and administrative expense	1,117		551			3,864			5,532
Product development	541		312			—			853
Depreciation	389		429			116			934
Amortization of intangibles	—		101			—			101
Restructuring and severance	16		6			(70		)	(48		)
Litigation settlements and contingencies	—		—			510			510
Total costs and expenses	12,697		5,355			4,437			22,489
Operating income (loss)	6,774		(1,792		)	(4,175		)	807
Adjustments to reconcile to Adjusted EBITDA:
Amortization of intangibles	—		101			—			101
Depreciation	389		429			116			934
Restructuring and severance	16		6			(70		)	(48		)
Loss on disposal of assets	284		—			—			284
Non-cash compensation	201		129			979			1,309
Litigation settlements and contingencies	—		—			510			510
Adjusted EBITDA	$	7,664	$	(1,127	)	$	(2,640	)	$	3,897

Adjustments to reconcile to income before income taxes:
Operating income									$	807
Interest expense									(349		)
Income before income taxes									$	458



	Nine Months Ended September 30, 2013
	Mortgage		Non-Mortgage			Corporate			Total
Revenue	$	93,305	$	8,902		$	622		$	102,829
Costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	4,095		505			439			5,039
Selling and marketing expense	62,351		6,117			5			68,473
General and administrative expense	2,563		1,534			13,720			17,817
Product development	3,166		748			—			3,914
Depreciation	1,076		1,269			303			2,648
Amortization of intangibles	—		119			—			119
Restructuring and severance	24		48			4			76
Litigation settlements and contingencies	—		—			6,812			6,812
Total costs and expenses	73,275		10,340			21,283			104,898
Operating income (loss)	20,030		(1,438		)	(20,661		)	(2,069		)
Adjustments to reconcile to Adjusted EBITDA:
Amortization of intangibles	—		119			—			119
Depreciation	1,076		1,269			303			2,648
Restructuring and severance	24		48			4			76
Loss on disposal of assets	—		—			25			25
Non-cash compensation	1,307		457			2,514			4,278
Discretionary cash bonus	—		—			920			920
Litigation settlements and contingencies	—		—			6,812			6,812
Adjusted EBITDA	$	22,437	$	455		$	(10,083	)	$	12,809

Adjustments to reconcile to loss before income taxes:
Operating loss									$	(2,069	)
Interest expense									(18		)
Loss before income taxes									$	(2,087	)



	Nine Months Ended September 30, 2012
	Mortgage		Non-Mortgage			Corporate			Total
Revenue	$	39,869	$	12,510		$	1,122		$	53,501
Costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	2,201		396			233			2,830
Selling and marketing expense	23,708		11,475			(186		)	34,997
General and administrative expense	2,530		1,635			12,001			16,166
Product development	1,482		907			(6		)	2,383
Depreciation	1,177		1,562			465			3,204
Amortization of intangibles	—		314			—			314
Restructuring and severance	20		7			(136		)	(109		)
Litigation settlements and contingencies	—		—			948			948
Total costs and expenses	31,118		16,296			13,319			60,733
Operating income (loss)	8,751		(3,786		)	(12,197		)	(7,232		)
Adjustments to reconcile to Adjusted EBITDA:
Amortization of intangibles	—		314			—			314
Depreciation	1,177		1,562			465			3,204
Restructuring and severance	20		7			(136		)	(109		)
Loss on disposal of assets	309		30			5			344
Non-cash compensation	552		384			2,629			3,565
Litigation settlements and contingencies	—		—			948			948
Adjusted EBITDA	$	10,809	$	(1,489	)	$	(8,286	)	$	1,034

Adjustments to reconcile to loss before income taxes:
Operating loss									$	(7,232	)
Interest expense									(606		)
Loss before income taxes									$	(7,838	)

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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-Name Statement of Financial Accounting Standard (FAS)

-Number 131

-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.

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+ Details

RESTRUCTURING EXPENSE

9 Months Ended

Sep. 30, 2013

Restructuring and Related Activities [Abstract]

RESTRUCTURING EXPENSE

RESTRUCTURING

The liabilities at September 30, 2013 and December 31, 2012 are primarily related to lease obligations for call center and corporate office leases exited in 2010, which are expected to be completed by 2015. Restructuring expense and payments against liabilities are as follows (in thousands):



	Continuing Lease Obligations
Balance at December 31, 2012	$	906
Restructuring expense	25
Payments	(368		)
Balance at September 30, 2013	$	563

At September 30, 2013, restructuring liabilities of $0.3 million are included in accrued expenses and other current liabilities and $0.3 million are included in other non-current liabilities in the accompanying consolidated balance sheet. At December 31, 2012, restructuring liabilities of $0.4 million are included in accrued expenses and other current liabilities and $0.5 million are included in other non-current liabilities in the accompanying consolidated balance sheet. We do not expect to incur significant additional costs related to the restructuring noted above.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References+ Details

DISCONTINUED OPERATIONS

9 Months Ended

Sep. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

Real Estate

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.

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Revenue	$	—		$	2		$	1		$	77

Loss before income taxes	$	(6	)	$	(282	)	$	(21	)	$	(442	)
Income tax benefit	—			—			—			—
Net loss	$	(6	)	$	(282	)	$	(21	)	$	(442	)

The assets and liabilities of real estate businesses that are reported as discontinued operations as of September 30, 2013 and December 31, 2012 are as follows (in thousands):



	September 30, 2013			December 31, 2012
Current liabilities	$	(78	)	$	(206	)
Net liabilities	$	(78	)	$	(206	)

LendingTree Loans

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 transaction 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. Subsequent to closing of the transaction, 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 and other miscellaneous items by agreeing to credit Discover for $1.3 million in future services. The remaining liability for these future services is included in current liabilities of discontinued operations in the accompanying consolidated balance sheet at September 30, 2013.

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Revenue	$	(37	)	$	5,943		$	(1,524	)	$	87,338

Income (loss) before income taxes	$	(520	)	$	4,470		$	(3,887	)	$	27,660
Income tax benefit (expense)	(3		)	(76		)	(54		)	(2,473		)
Gain from sale of discontinued operations, net of tax	—			—			10,101			24,313
Net income (loss)	$	(523	)	$	4,394		$	6,160		$	49,500

The assets and liabilities of LendingTree Loans that are reported as discontinued operations as of September 30, 2013 and December 31, 2012 are as follows (in thousands):



	September 30, 2013			December 31, 2012
Current assets	$	31		$	407
Non-current assets	129			129
Current liabilities	(31,868		)	(30,811		)
Non-current liabilities	(151		)	(253		)
Net liabilities	$	(31,859	)	$	(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.

Fair Value Measurements

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 specified interest rates (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 used 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. At September 30, 2013 and December 31, 2012, there were no IRLCs outstanding.

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 became 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

There are no assets and liabilities that are measured at fair value on a recurring basis at September 30, 2013 and December 31, 2012.

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



	Three Months Ended September 30, 2012
	Interest Rate Lock Commitments		Forward Delivery Contracts		Loans Held for Sale
Balance at July 1, 2012	$	—	$	—	$	167
Transfers into Level 3	—		—		124
Transfers out of Level 3	—		—		—
Total net gains (losses) included in earnings (realized and unrealized)	—		—		(380		)
Purchases, sales, and settlements:
Purchases	—		—		—
Sales	—		—		90
Settlements	—		—		(1		)
Transfers of IRLCs to closed loans	—		—		—
Balance at September 30, 2012	$	—	$	—	$	—



	Nine Months Ended September 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	—			—			564
Transfers out of Level 3	—			(845		)	—
Total net gains (losses) included in earnings (realized and unrealized)	73,378			846			(147		)
Purchases, sales, and settlements
Purchases	—			—			—
Sales	(5,640		)	(20		)	(491		)
Settlements	(3,401		)	—			(221		)
Transfers of IRLCs to closed loans	(73,459		)	—			—
Balance at September 30, 2012	$	—		$	—		$	—

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



	Three Months Ended September 30, 2012							Nine Months Ended September 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 (losses) included in earnings, which are included in discontinued operations	$	—	$	—	$	(380	)	$	73,378	$	846	$	(147	)
Change in unrealized gains (losses) relating to assets and liabilities still held at September 30, 2012, which are included in discontinued operations	$	—	$	—	$	(412	)	$	—	$	—	$	(412	)

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



	Location of Gain (Loss) Recognized in Income on Derivative	Three Months Ended September 30, 2012		Nine Months Ended September 30, 2012
Interest Rate Lock Commitments	Discontinued operations	$	—	$	73,378
Forward Delivery Contracts	Discontinued operations	2,193		4,244
Total		$	2,193	$	77,622

Assets and liabilities under the fair value option

LendingTree Loans elected to account for loans held for sale originated on or after January 1, 2008 at fair value. Electing the fair value option allowed 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 September 30, 2013 and December 31, 2012, there were no loans held for sale or carried at the lower of cost or market ("LOCOM") value assessed on an individual loan basis.

During the nine months ended September 30, 2012, the change in fair value of loans held for sale for which the fair value option was elected was a gain of $2.7 million, and is included in discontinued operations in the accompanying consolidated statements of operations.

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.

Our Home Loan Center, Inc. subsidiary continues to be liable for these indemnification obligations, repurchase obligations and premium repayment obligations following the sale of substantially all of the operating assets of our LendingTree Loans business in the second quarter of 2012. Approximately $18.1 million of the purchase price associated with the sale is being held in escrow pending resolution of certain of these contingent liabilities. We have been negotiating with certain secondary market purchasers to settle any existing and future contingent liabilities, but we may not be able to complete such negotiations on acceptable terms, or at all.

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 sold, it does not maintain nor generally 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 purchased such loans.

During the third quarter of 2012, in order to reflect our exit from the mortgage loan origination business in the second quarter of 2012 and our current commercial objective to pursue bulk settlements with investors, management revised the estimation process for evaluating the adequacy of the reserve for loan losses.

Prior to the third quarter of 2012, in estimating our exposure to losses on loans previously sold, LendingTree Loans used a model that considered 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. Subsequent adjustments to the obligation, if any, are made once further losses are determined to be both probable and estimable. Further, LendingTree Loans segmented its loan sales into four segments, based on the extent of the documentation provided by the borrower to substantiate their 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 typically 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.

The revised methodology uses the model described above, but also incorporates into the estimation process (a) recent bulk settlements entered into by certain of our investors with governmental agencies and other counterparties, as applied to the attributes of the loans sold by LendingTree Loans and currently held by investors and (b) our own recent investor bulk settlement experience. The historical model described above was weighted 50% in the revised analysis, and each of the other factors were weighted 25% to estimate the range of remaining loan losses, which was determined to be $18.0 million to $37.0 million at September 30, 2013. The reserve balance recorded as of September 30, 2013 is $28.7 million. Management has considered both objective and subjective factors in the estimation process, but given current general industry trends in mortgage loans as well as housing prices, market expectations and actual losses related to LendingTree Loans' obligations could vary significantly from the obligation recorded as of the balance sheet date or the range estimated above.

Additionally, 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 following table represents the loans sold for the periods shown and the aggregate loan losses through September 30, 2013:



	September 30, 2013
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)
2013	—	$	—	—	$	—	$	—
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 increased from 398 requests at December 31, 2012 to 440 requests at September 30, 2013 for loan repurchases and indemnifications which were 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. An indemnification obligation may have a specific term, thereby limiting the exposure to LendingTree Loans. The original principal amount of these loans is approximately $87.6 million, comprised of approximately 74% full documentation first liens, 2% full documentation second liens, 21% limited documentation first liens and 3% limited documentation second liens.

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.

The activity related to loss reserves on previously sold loans for the three and nine months ended September 30, 2013 and 2012, is as follows (in thousands):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2013		2012			2013		2012
Balance, beginning of period	$	28,675	$	33,096		$	27,182	$	31,512
Provisions (recoveries)	38		(6,493		)	1,531		(109		)
Charge offs to reserves	—		(14		)	—		(4,814		)
Balance, end of period	$	28,713	$	26,589		$	28,713	$	26,589

The liability for losses on previously sold loans is presented as current liabilities of discontinued operations in the accompanying consolidated balance sheet as of September 30, 2013 and December 31, 2012.

Home Loan Center, Inc. continues 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 to Discover. A portion of the initial purchase price paid by Discover is being held in escrow pending resolution of certain of these contingent liabilities. We have been negotiating with certain secondary market purchasers to settle any existing and future contingent liabilities, but may not be able to complete such negotiations on acceptable terms, or at all.

Warehouse Lines of Credit

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 then-existing warehouse lines of credit totaling $325.0 million expired and terminated on July 21, 2012. Borrowings under these lines of credit were used to fund, and were secured by, consumer residential loans that were held for sale. Loans under these lines of credit were repaid using proceeds from the sales of loans by LendingTree Loans. The LendingTree Loans business was highly dependent on the availability of these warehouse lines.

- 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).

+ References

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 144

-Paragraph 43-48

-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.

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+ Details

SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Accounting Estimates

Restricted Cash

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



	September 30, 2013		December 31, 2012
Cash in escrow for surety bonds	$	2,453	$	6,500
Cash in escrow for corporate purchasing card program	400		800
Cash in escrow for sale of LTL (Note 13)	18,117		17,077
Cash in escrow for earnout related to an acquisition	1,956		1,956
Cash restricted for loan loss obligations	3,051		3,051
Other	41		30
Total restricted cash and cash equivalents	$	26,018	$	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.

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

We maintain operations solely in the United States.

Recent Accounting Pronouncements

- 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 credit risk.

+ References

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-Name Accounting Standards Codification

-Topic 825

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-Name Statement of Financial Accounting Standard (FAS)

-Number 107

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-Publisher AICPA

-Name Statement of Position (SOP)

-Number 01-6

-Paragraph 14

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+ 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)

9 Months Ended

Sep. 30, 2013

ORGANIZATION

Schedule of effect of corrections on the Company's consolidated statements of operations



	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:
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.



	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:
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	)



	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:
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

Schedule of effect of errors on consolidated balance sheet

The following table presents the effect these errors had 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 (Tables)

9 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Schedule of restricted cash and cash equivalents

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



	September 30, 2013		December 31, 2012
Cash in escrow for surety bonds	$	2,453	$	6,500
Cash in escrow for corporate purchasing card program	400		800
Cash in escrow for sale of LTL (Note 13)	18,117		17,077
Cash in escrow for earnout related to an acquisition	1,956		1,956
Cash restricted for loan loss obligations	3,051		3,051
Other	41		30
Total restricted cash and cash equivalents	$	26,018	$	29,414

- 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)

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of balance of goodwill and intangible assets, net

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



	September 30, 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	570			689
Total intangible assets, net	$	10,712		$	10,831

Schedule of intangible assets with definite lives

Intangible assets with definite lives relate to the following (dollars in thousands):



	Cost		Accumulated Amortization			Net		Weighted Average Amortization Life (Years)
Purchase agreements	$	236	$	(200	)	$	36	5.0
Technology	25,194		(25,194		)	—		3.0
Customer lists	6,682		(6,151		)	531		4.2
Other	1,517		(1,514		)	3		2.5
Balance at September 30, 2013	$	33,629	$	(33,059	)	$	570



	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
Balance at December 31, 2012	$	33,629	$	(32,940	)	$	689

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



	Amortization Expense
Three months ending December 31, 2013	$	28
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	276
Total intangible assets with definite lives, net	$	570

PROPERTY AND EQUIPMENT (Tables)

9 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

Schedule of property and equipment, net

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



	September 30, 2013			December 31, 2012
Computer equipment and capitalized software	$	26,439		$	25,592
Leasehold improvements	2,096			2,055
Furniture and other equipment	1,303			1,302
Projects in progress	1,545			500
Total gross property and equipment	31,383			29,449
Less: accumulated depreciation and amortization	(25,846		)	(23,294		)
Total property and equipment, net	$	5,537		$	6,155

- 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

STOCK-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of non-cash compensation expense related to equity awards



	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Cost of revenue	$	4	$	2	$	9	$	6
Selling and marketing expense	242		145		765		504
General and administrative expense	976		1,026		2,885		2,662
Product development	190		136		619		393
Total non-cash compensation expense	$	1,412	$	1,309	$	4,278	$	3,565

Summary of changes in outstanding stock options

A summary of changes in outstanding stock options for the nine months ended September 30, 2013 is as follows:



	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
					(in years)	(in thousands)
Options outstanding at January 1, 2013	1,072,503		$	8.97
Granted	—		—
Exercised	(27,029	)	7.79
Forfeited	—		—
Expired	(1,737	)	11.63
Options outstanding at September 30, 2013	1,043,737		8.99		5.00	$	18,020
Options exercisable at September 30, 2013	892,445		$	9.35	4.47	$	15,092

Summary of the information about stock options outstanding and exercisable

The following table summarizes the information about stock options outstanding and exercisable as of September 30, 2013:



	Options Outstanding				Options Exercisable
Range of Option Exercise Prices	Outstanding	Weighted Average Remaining Contractual Life in Years	Weighted Average Exercise Price		Exercisable	Weighted Average Exercise Price
$0.01 to $4.99	173	0.45	$	2.49	173	$	2.49
$5.00 to $7.45	304,327	7.96	6.65		153,035	6.39
$7.46 to $9.99	602,418	4.27	8.46		602,418	8.46
$10.00 to $14.99	10,029	1.00	12.27		10,029	12.27
$15.00 to $19.99	80,127	1.68	15.00		80,127	15.00
$20.00 to $20.19	46,663	1.68	20.19		46,663	20.19
As of September 30, 2013	1,043,737	5.00	$	8.99	892,445	$	9.35

Schedule of non-vested RSUs, restricted stock and restricted stock with a market condition as at the end of the period and changes during the reporting period

Nonvested RSUs, restricted stock and restricted stock with a market condition as of September 30, 2013 and changes during the nine months ended September 30, 2013 are as follows:



	RSUs				Restricted Stock				Restricted Stock Market Condition
	Number of Shares		Weighted Average Grant Date Fair Value		Number of Shares		Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
Nonvested at January 1, 2013	757,111		$	9.09	187,501		$	7.44	—	$	—
Granted	289,745		18.04		62,500		17.49		62,500	13.93
Vested	(276,291	)	9.60		(187,501	)	7.44		—	—
Forfeited	(76,545	)	9.56		—		—		—	—
Nonvested at September 30, 2013	694,020		$	12.69	62,500		$	17.49	62,500	$	13.93

- 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

SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Summary of information by segment and reconciliations to Adjusted EBITDA and income (loss) before income taxes

Summarized information by segment and reconciliations to Adjusted EBITDA and income (loss) before income taxes is as follows (in thousands):



	Three Months Ended September 30, 2013
	Mortgage		Non-Mortgage			Corporate			Total
Revenue	$	34,257	$	3,086		$	—		$	37,343
Costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	1,545		168			20			1,733
Selling and marketing expense	23,072		1,760			—			24,832
General and administrative expense	711		604			4,295			5,610
Product development	990		227			—			1,217
Depreciation	357		426			108			891
Amortization of intangibles	—		33			—			33
Restructuring and severance	1		(77		)	6			(70		)
Litigation settlements and contingencies	—		—			2,875			2,875
Total costs and expenses	26,676		3,141			7,304			37,121
Operating income (loss)	7,581		(55		)	(7,304		)	222
Adjustments to reconcile to Adjusted EBITDA:
Amortization of intangibles	—		33			—			33
Depreciation	357		426			108			891
Restructuring and severance	1		(77		)	6			(70		)
Loss on disposal of assets	—		—			1			1
Non-cash compensation	411		220			781			1,412
Litigation settlements and contingencies	—		—			2,875			2,875
Adjusted EBITDA	$	8,350	$	547		$	(3,533	)	$	5,364

Adjustments to reconcile to income before income taxes:
Operating income									$	222
Interest expense									(4		)
Income before income taxes									$	218



	Three Months Ended September 30, 2012
	Mortgage		Non-Mortgage			Corporate			Total
Revenue	$	19,471	$	3,563		$	262		$	23,296
Costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	879		149			203			1,231
Selling and marketing expense	9,755		3,807			(186		)	13,376
General and administrative expense	1,117		551			3,864			5,532
Product development	541		312			—			853
Depreciation	389		429			116			934
Amortization of intangibles	—		101			—			101
Restructuring and severance	16		6			(70		)	(48		)
Litigation settlements and contingencies	—		—			510			510
Total costs and expenses	12,697		5,355			4,437			22,489
Operating income (loss)	6,774		(1,792		)	(4,175		)	807
Adjustments to reconcile to Adjusted EBITDA:
Amortization of intangibles	—		101			—			101
Depreciation	389		429			116			934
Restructuring and severance	16		6			(70		)	(48		)
Loss on disposal of assets	284		—			—			284
Non-cash compensation	201		129			979			1,309
Litigation settlements and contingencies	—		—			510			510
Adjusted EBITDA	$	7,664	$	(1,127	)	$	(2,640	)	$	3,897

Adjustments to reconcile to income before income taxes:
Operating income									$	807
Interest expense									(349		)
Income before income taxes									$	458



	Nine Months Ended September 30, 2013
	Mortgage		Non-Mortgage			Corporate			Total
Revenue	$	93,305	$	8,902		$	622		$	102,829
Costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	4,095		505			439			5,039
Selling and marketing expense	62,351		6,117			5			68,473
General and administrative expense	2,563		1,534			13,720			17,817
Product development	3,166		748			—			3,914
Depreciation	1,076		1,269			303			2,648
Amortization of intangibles	—		119			—			119
Restructuring and severance	24		48			4			76
Litigation settlements and contingencies	—		—			6,812			6,812
Total costs and expenses	73,275		10,340			21,283			104,898
Operating income (loss)	20,030		(1,438		)	(20,661		)	(2,069		)
Adjustments to reconcile to Adjusted EBITDA:
Amortization of intangibles	—		119			—			119
Depreciation	1,076		1,269			303			2,648
Restructuring and severance	24		48			4			76
Loss on disposal of assets	—		—			25			25
Non-cash compensation	1,307		457			2,514			4,278
Discretionary cash bonus	—		—			920			920
Litigation settlements and contingencies	—		—			6,812			6,812
Adjusted EBITDA	$	22,437	$	455		$	(10,083	)	$	12,809

Adjustments to reconcile to loss before income taxes:
Operating loss									$	(2,069	)
Interest expense									(18		)
Loss before income taxes									$	(2,087	)



	Nine Months Ended September 30, 2012
	Mortgage		Non-Mortgage			Corporate			Total
Revenue	$	39,869	$	12,510		$	1,122		$	53,501
Costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	2,201		396			233			2,830
Selling and marketing expense	23,708		11,475			(186		)	34,997
General and administrative expense	2,530		1,635			12,001			16,166
Product development	1,482		907			(6		)	2,383
Depreciation	1,177		1,562			465			3,204
Amortization of intangibles	—		314			—			314
Restructuring and severance	20		7			(136		)	(109		)
Litigation settlements and contingencies	—		—			948			948
Total costs and expenses	31,118		16,296			13,319			60,733
Operating income (loss)	8,751		(3,786		)	(12,197		)	(7,232		)
Adjustments to reconcile to Adjusted EBITDA:
Amortization of intangibles	—		314			—			314
Depreciation	1,177		1,562			465			3,204
Restructuring and severance	20		7			(136		)	(109		)
Loss on disposal of assets	309		30			5			344
Non-cash compensation	552		384			2,629			3,565
Litigation settlements and contingencies	—		—			948			948
Adjusted EBITDA	$	10,809	$	(1,489	)	$	(8,286	)	$	1,034

Adjustments to reconcile to loss before income taxes:
Operating loss									$	(7,232	)
Interest expense									(606		)
Loss before income taxes									$	(7,838	)

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References+ Details

RESTRUCTURING EXPENSE (Tables)

9 Months Ended

Sep. 30, 2013

Restructuring and Related Activities [Abstract]

Schedule of restructuring expense and payments against liabilities

Restructuring expense and payments against liabilities are as follows (in thousands):



	Continuing Lease Obligations
Balance at December 31, 2012	$	906
Restructuring expense	25
Payments	(368		)
Balance at September 30, 2013	$	563

- Definition

Tabular disclosure of restructuring and related costs by type of restructuring including the description of the restructuring costs, such as the expected cost; the costs incurred during the period; the cumulative costs incurred as of the balance sheet date; the income statement caption within which the restructuring charges recognized for the period are included; and changes to an entity's restructuring reserve that occurred during the period associated with the exit from or disposal of business activities or restructurings for each major type of cost.

+ References+ Details

DISCONTINUED OPERATIONS (Tables)

9 Months Ended

Sep. 30, 2013

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 are as follows (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Revenue	$	—		$	2		$	1		$	77

Loss before income taxes	$	(6	)	$	(282	)	$	(21	)	$	(442	)
Income tax benefit	—			—			—			—
Net loss	$	(6	)	$	(282	)	$	(21	)	$	(442	)

Schedule of assets and liabilities of the discontinued operations

The assets and liabilities of real estate businesses that are reported as discontinued operations as of September 30, 2013 and December 31, 2012 are as follows (in thousands):



	September 30, 2013			December 31, 2012
Current liabilities	$	(78	)	$	(206	)
Net liabilities	$	(78	)	$	(206	)

Lending Tree 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 are as follows (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Revenue	$	(37	)	$	5,943		$	(1,524	)	$	87,338

Income (loss) before income taxes	$	(520	)	$	4,470		$	(3,887	)	$	27,660
Income tax benefit (expense)	(3		)	(76		)	(54		)	(2,473		)
Gain from sale of discontinued operations, net of tax	—			—			10,101			24,313
Net income (loss)	$	(523	)	$	4,394		$	6,160		$	49,500

Schedule of assets and liabilities of the discontinued operations

The assets and liabilities of LendingTree Loans that are reported as discontinued operations as of September 30, 2013 and December 31, 2012 are as follows (in thousands):



	September 30, 2013			December 31, 2012
Current assets	$	31		$	407
Non-current assets	129			129
Current liabilities	(31,868		)	(30,811		)
Non-current liabilities	(151		)	(253		)
Net liabilities	$	(31,859	)	$	(30,528	)

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



	Three Months Ended September 30, 2012
	Interest Rate Lock Commitments		Forward Delivery Contracts		Loans Held for Sale
Balance at July 1, 2012	$	—	$	—	$	167
Transfers into Level 3	—		—		124
Transfers out of Level 3	—		—		—
Total net gains (losses) included in earnings (realized and unrealized)	—		—		(380		)
Purchases, sales, and settlements:
Purchases	—		—		—
Sales	—		—		90
Settlements	—		—		(1		)
Transfers of IRLCs to closed loans	—		—		—
Balance at September 30, 2012	$	—	$	—	$	—



	Nine Months Ended September 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	—			—			564
Transfers out of Level 3	—			(845		)	—
Total net gains (losses) included in earnings (realized and unrealized)	73,378			846			(147		)
Purchases, sales, and settlements
Purchases	—			—			—
Sales	(5,640		)	(20		)	(491		)
Settlements	(3,401		)	—			(221		)
Transfers of IRLCs to closed loans	(73,459		)	—			—
Balance at September 30, 2012	$	—		$	—		$	—

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



	Three Months Ended September 30, 2012							Nine Months Ended September 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 (losses) included in earnings, which are included in discontinued operations	$	—	$	—	$	(380	)	$	73,378	$	846	$	(147	)
Change in unrealized gains (losses) relating to assets and liabilities still held at September 30, 2012, which are included in discontinued operations	$	—	$	—	$	(412	)	$	—	$	—	$	(412	)

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 nine months ended September 30, 2012 was as follows (in thousands):



	Location of Gain (Loss) Recognized in Income on Derivative	Three Months Ended September 30, 2012		Nine Months Ended September 30, 2012
Interest Rate Lock Commitments	Discontinued operations	$	—	$	73,378
Forward Delivery Contracts	Discontinued operations	2,193		4,244
Total		$	2,193	$	77,622

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

The following table represents the loans sold for the periods shown and the aggregate loan losses through September 30, 2013:



	September 30, 2013
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)
2013	—	$	—	—	$	—	$	—
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 nine months ended September 30, 2013 and 2012, is as follows (in thousands):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2013		2012			2013		2012
Balance, beginning of period	$	28,675	$	33,096		$	27,182	$	31,512
Provisions (recoveries)	38		(6,493		)	1,531		(109		)
Charge offs to reserves	—		(14		)	—		(4,814		)
Balance, end of period	$	28,713	$	26,589		$	28,713	$	26,589

- Definition

Tabular disclosure of the amount of gains or losses for the period included in earnings or resulted in a change to net assets, have arisen from the use of significant unobservable inputs (level 3) to measure the fair value of assets, liabilities, and financial instruments classified in shareholders' equity.

+ References+ Details

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References+ Details

ORGANIZATION (Details 1) (USD $)	3 Months Ended		9 Months Ended					3 Months Ended	9 Months Ended		1 Months Ended
ORGANIZATION (Details 1) (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Sep. 30, 2013 Cash in escrow for sale of LendingTree Loans	Dec. 31, 2012 Cash in escrow for sale of LendingTree Loans	Jun. 30, 2013 Lending Tree Loans Discover Bank	Sep. 30, 2013 Lending Tree Loans Discover Bank	Feb. 07, 2012 Lending Tree Loans Discover Bank	Sep. 30, 2011 Internet domain names and trademarks RealEstate.com
Organization- Discontinued Operations
Proceeds from sale of assets											$ 8,300,000
Gain on sale of internet domain names and trademarks											7,800,000
Amount of proceeds 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 receivable for sale of assets										10,000,000
Gain from sale of discontinued operations, net of tax	0	0	10,101,000	24,313,000				10,000,000
Restricted cash and cash equivalents	$ 26,018,000		$ 26,018,000		$ 29,414,000	$ 18,117,000	$ 17,077,000
Period for which marketing related services are to be provided									17 months

ORGANIZATION (Details 2) (USD $)
In Millions, except Share data, unless otherwise specified

0 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

Dec. 26, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Sep. 30, 2013

Sep. 30, 2012

Dec. 31, 2012

Dec. 31, 2011

Special dividend paid (in dollars per share)

$ 1.00

Effect of corrections on consolidated statement of operations

Weighted average basic shares outstanding

11,017,000

10,768,000

10,771,000

10,685,000

10,555,000

11,039,000

10,670,000

10,695,000

10,377,000

Weighted average diluted shares outstanding

11,720,000

11,557,000

11,385,000

10,685,000

10,555,000

11,039,000

10,670,000

10,695,000

10,377,000

Net income (loss) per share from continuing operations

Basic (in dollars per share)

$ 0.03

$ 0.23

$ 0.03

$ (0.16)

$ (0.31)

$ (0.18)

$ (0.45)

$ (0.21)

$ (4.79)

Diluted (in dollars per share)

$ 0.03

$ 0.22

$ 0.02

$ (0.16)

$ (0.31)

$ (0.18)

$ (0.45)

$ (0.21)

$ (4.79)

Net income (loss) per share from discontinuing operations

Basic (in dollars per share)

$ (0.05)

$ (0.02)

$ 0.38

$ 2.58

$ 1.65

$ 0.56

$ 4.60

$ 4.57

$ (0.94)

Diluted (in dollars per share)

$ (0.05)

$ (0.02)

$ 0.36

$ 2.58

$ 1.65

$ 0.56

$ 4.60

$ 4.57

$ (0.94)

Net income (loss) per share

Basic (in dollars per share)

$ (0.02)

$ 0.22

$ 0.41

$ 2.41

$ 1.34

$ 0.38

$ 4.15

$ 4.36

$ (5.73)

Diluted (in dollars per share)

$ (0.02)

$ 0.20

$ 0.38

$ 2.41

$ 1.34

$ 0.38

$ 4.15

$ 4.36

$ (5.73)

Anti-dilutive securities excluded from calculation of diluted earnings per share (in shares)

300,000

700,000

2,100,000

Effect of errors on consolidated balance sheet

Common stock, issued shares

12,505,331

12,195,209

12,505,331

12,195,209

Common stock, outstanding shares

11,136,399

11,006,730

11,136,399

11,006,730

Adjustment

Net income (loss) per share

Error correction related to the control number utilized for diluted earnings per share (in shares)

241,000

Error correction related to the control number utilized for diluted earnings per share (in dollar per share)

$ 0.03

Release of restrictions on restricted stock awards | As Reported

Effect of corrections on consolidated statement of operations

Weighted average basic shares outstanding

11,386,000

11,389,000

11,303,000

11,173,000

11,313,000

10,995,000

Weighted average diluted shares outstanding

12,175,000

12,003,000

11,303,000

11,414,000

11,313,000

10,995,000

Net income (loss) per share from continuing operations

Basic (in dollars per share)

$ 0.22

$ 0.02

$ (0.16)

$ (0.29)

$ (0.20)

$ (4.52)

Diluted (in dollars per share)

$ 0.21

$ 0.02

$ (0.16)

$ (0.29)

$ (0.20)

$ (4.52)

Net income (loss) per share from discontinuing operations

Basic (in dollars per share)

$ (0.02)

$ 0.36

$ 2.44

$ 1.56

$ 4.32

$ (0.89)

Diluted (in dollars per share)

$ (0.02)

$ 0.35

$ 2.44

$ 1.53

$ 4.32

$ (0.89)

Net income (loss) per share

Basic (in dollars per share)

$ 0.20

$ 0.38

$ 2.28

$ 1.27

$ 4.12

$ (5.41)

Diluted (in dollars per share)

$ 0.19

$ 0.37

$ 2.28

$ 1.24

$ 4.12

$ (5.41)

Effect of errors on consolidated balance sheet

Common stock, issued shares

12,625,678

Common stock, outstanding shares

11,437,199

Release of restrictions on restricted stock awards | Adjustment

Effect of corrections on consolidated statement of operations

Weighted average basic shares outstanding

(618,000)

Weighted average diluted shares outstanding

(618,000)

(859,000)

^[1]

(618,000)

Net income (loss) per share from continuing operations

Basic (in dollars per share)

$ 0.01

$ 0.00

$ (0.02)

$ (0.01)

$ (0.27)

Diluted (in dollars per share)

$ 0.01

$ 0.00

$ (0.02)

$ (0.01)

$ (0.27)

Net income (loss) per share from discontinuing operations

Basic (in dollars per share)

$ 0.00

$ 0.02

$ 0.14

$ 0.09

$ 0.25

$ (0.05)

Diluted (in dollars per share)

$ 0.00

$ 0.01

$ 0.14

$ 0.12

^[1]

$ 0.25

$ (0.05)

Net income (loss) per share

Basic (in dollars per share)

$ 0.02

$ 0.03

$ 0.13

$ 0.07

$ 0.24

$ (0.32)

Diluted (in dollars per share)

$ 0.01

$ 0.13

$ 0.10

^[1]

$ 0.24

$ (0.32)

Effect of errors on consolidated balance sheet

Common stock, issued shares

(430,469)

Common stock, outstanding shares

(430,469)

Release of restrictions on restricted stock awards | Chairman and CEO

Dividend overpaid

$ 0.4

Over accrual of dividend for unvested shares

$ 0.2

[1]	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.

SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended			3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Sep. 30, 2013 Cash in escrow for surety bonds	Dec. 31, 2012 Cash in escrow for surety bonds	Sep. 30, 2013 Cash in escrow for corporate purchasing card program	Dec. 31, 2012 Cash in escrow for corporate purchasing card program	Sep. 30, 2013 Cash in escrow for sale of LendingTree Loans	Dec. 31, 2012 Cash in escrow for sale of LendingTree Loans	Sep. 30, 2013 Cash in escrow for earnout related to an acquisition	Dec. 31, 2012 Cash in escrow for earnout related to an acquisition	Sep. 30, 2013 Cash restricted for loan loss obligations	Dec. 31, 2012 Cash restricted for loan loss obligations	Sep. 30, 2013 Other	Dec. 31, 2012 Other
Restricted cash
Increase (Decrease) in Restricted Cash	$ (3,396)	$ 4,047		$ 4,000
Restricted cash and cash equivalents	$ 26,018		$ 29,414	$ 2,453	$ 6,500	$ 400	$ 800	$ 18,117	$ 17,077	$ 1,956	$ 1,956	$ 3,051	$ 3,051	$ 41	$ 30

- Definition

The net cash inflow or outflow for the increase (decrease) associated with funds that are not available for withdrawal or use (such as funds held in escrow) and are associated with underlying transactions that are classified as investing activities.

+ References+ Details

- 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	Sep. 30, 2013	Dec. 31, 2012
Goodwill and Intangible Assets Disclosure [Abstract]
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	570	689
Total intangible assets, net	$ 10,712	$ 10,831

- 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	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Intangible assets with definite lives
Cost	$ 33,629	$ 33,629
Accumulated Amortization	(33,059)	(32,940)
Total intangible assets with definite lives, net	570	689
Purchase agreements
Intangible assets with definite lives
Cost	236	236
Accumulated Amortization	(200)	(165)
Total intangible assets with definite lives, net	36	71
Purchase agreements \| Weighted average
Intangible assets with definite lives
Weighted Average Amortization Life (Years)	5 years	5 years
Technology
Intangible assets with definite lives
Cost	25,194	25,194
Accumulated Amortization	(25,194)	(25,158)
Total intangible assets with definite lives, net	0	36
Technology \| Weighted average
Intangible assets with definite lives
Weighted Average Amortization Life (Years)	3 years	3 years
Customer lists
Intangible assets with definite lives
Cost	6,682	6,682
Accumulated Amortization	(6,151)	(6,106)
Total intangible assets with definite lives, net	531	576
Customer lists \| Weighted average
Intangible assets with definite lives
Weighted Average Amortization Life (Years)	4 years 2 months 12 days	4 years 2 months 12 days
Other
Intangible assets with definite lives
Cost	1,517	1,517
Accumulated Amortization	(1,514)	(1,511)
Total intangible assets with definite lives, net	$ 3	$ 6
Other \| Weighted average
Intangible assets with definite lives
Weighted Average Amortization Life (Years)	2 years 6 months	2 years 6 months

GOODWILL AND INTANGIBLE ASSETS (Details 3) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Amortization of intangible assets with definite lives computed on a straight-line basis
December 31, 2013	$ 28
December 31, 2014	86
December 31, 2015	60
December 31, 2016	60
December 31, 2017	60
Thereafter	276
Total intangible assets with definite lives, net	$ 570	$ 689

PROPERTY AND EQUIPMENT (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
PROPERTY AND EQUIPMENT
Property and equipment, gross	$ 31,383	$ 29,449
Less: accumulated depreciation and amortization	(25,846)	(23,294)
Total property and equipment, net	5,537	6,155
Computer equipment and capitalized software
PROPERTY AND EQUIPMENT
Property and equipment, gross	26,439	25,592
Leasehold improvements
PROPERTY AND EQUIPMENT
Property and equipment, gross	2,096	2,055
Furniture and other equipment
PROPERTY AND EQUIPMENT
Property and equipment, gross	1,303	1,302
Projects in progress
PROPERTY AND EQUIPMENT
Property and equipment, gross	$ 1,545	$ 500

- 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 $)	Sep. 30, 2013	Dec. 31, 2012
Accrued expenses and other current liabilities
Litigation accruals	$ 515,000	$ 535,000
Accrued advertising expense	9,766,000	6,638,000
Accrued compensation and benefits	2,581,000	2,603,000
Accrued professional fees	2,863,000	1,399,000
Accrued restructuring costs	298,000	364,000
Customer deposits and escrows	3,891,000	2,101,000
Deferred rent	242,000	217,000
Other	4,406,000	6,103,000
Total accrued expenses and other current liabilities	24,562,000	19,960,000
Accrued restructuring liability classified in other non-current liabilities	$ 300,000	$ 500,000

EARNINGS PER SHARE (Details) (USD $)	0 Months Ended	3 Months Ended					9 Months Ended		12 Months Ended
EARNINGS PER SHARE (Details) (USD $)	Jan. 11, 2010	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011
Basic income per share
Weighted average basic shares outstanding		11,017,000	10,768,000	10,771,000	10,685,000	10,555,000	11,039,000	10,670,000	10,695,000	10,377,000
Diluted income per share
Effect of stock options (in shares)		419,000		244,000			0	0
Effect of dilutive share awards (in shares)		284,000		370,000			0	0
Weighted average common shares, diluted		11,720,000	11,557,000	11,385,000	10,685,000	10,555,000	11,039,000	10,670,000	10,695,000	10,377,000
Anti-dilutive securities excluded from calculation of diluted earnings per share (in shares)		0		300,000			700,000	2,100,000	0	0
Value of common stock authorized to be repurchased	$ 10,000,000
Purchase of treasury stock (in shares)		97,726					180,453
Aggregate consideration for shares repurchased		1,800,000					3,321,000
Remaining authorized repurchase amount							$ 800,000

STOCK-BASED COMPENSATION (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Non-cash compensation expense related to equity awards
Total non-cash compensation expense	$ 1,412	$ 1,309	$ 4,278	$ 3,565
Cost of revenue
Non-cash compensation expense related to equity awards
Total non-cash compensation expense	4	2	9	6
Selling and marketing expense
Non-cash compensation expense related to equity awards
Total non-cash compensation expense	242	145	765	504
General and administrative expense
Non-cash compensation expense related to equity awards
Total non-cash compensation expense	976	1,026	2,885	2,662
Product development
Non-cash compensation expense related to equity awards
Total non-cash compensation expense	$ 190	$ 136	$ 619	$ 393

- 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

STOCK-BASED COMPENSATION (Details 2) (Restricted stock, USD $) In Millions, except Share data, unless otherwise specified	9 Months Ended	1 Months Ended
	Sep. 30, 2013	Feb. 28, 2013 Chairman and CEO Grant one	Feb. 28, 2013 Chairman and CEO Grant two	Feb. 28, 2013 Chairman and CEO Grant two Minimum
STOCK-BASED COMPENSATION
Number of awards granted (in shares)	62,500	62,500	62,500
Fair value of awards		$ 1.1	$ 0.9
Vesting period		3 years	3 years	1 year

STOCK-BASED COMPENSATION (Details 3) (Stock options, USD $) In Thousands, except Share data, unless otherwise specified	9 Months Ended
	Sep. 30, 2013
Stock options
Stock options, Shares
Outstanding at the beginning of the period (in shares)	1,072,503
Exercised (in shares)	(27,029)
Expired (in shares)	(1,737)
Outstanding at the end of the period (in shares)	1,043,737
Options exercisable at the end of the period (in shares)	892,445
Stock options, Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 8.97
Exercised (in dollars per share)	$ 7.79
Expired (in dollars per share)	$ 11.63
Outstanding at the end of the period (in dollars per share)	$ 8.99
Options exercisable at the end of the period (in dollars per share)	$ 9.35
Stock options, Weighted Average Remaining Contractual Term
Outstanding at the end of the period	5 years
Options exercisable at the end of the period	4 years 5 months 19 days
Stock options, Aggregate Intrinsic Value
Outstanding at the end of the period	$ 18,020
Options exercisable at the end of the period	$ 15,092

STOCK-BASED COMPENSATION (Details 4) (Stock options, USD $)	9 Months Ended
	Sep. 30, 2013
Stock options outstanding and exercisable by range of exercise prices
Options Outstanding at the end of the period (in shares)	1,043,737
Options Outstanding - Weighted Average Remaining Contractual Term	5 years
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 8.99
Options Exercisable at the end of the period (in shares)	892,445
Options Exercisable - Weighted Average Exercise Price (in dollars per share)	$ 9.35
Range of exercise price $0.01 to $4.99
Stock options outstanding and exercisable by range of exercise prices
Options Outstanding at the end of the period (in shares)	173
Options Outstanding - Weighted Average Remaining Contractual Term	5 months 12 days
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 2.49
Options Exercisable at the end of the period (in shares)	173
Options Exercisable - Weighted Average Exercise Price (in dollars per share)	$ 2.49
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
Range of exercise price $5.00 to $7.45
Stock options outstanding and exercisable by range of exercise prices
Options Outstanding at the end of the period (in shares)	304,327
Options Outstanding - Weighted Average Remaining Contractual Term	7 years 11 months 16 days
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 6.65
Options Exercisable at the end of the period (in shares)	153,035
Options Exercisable - Weighted Average Exercise Price (in dollars per share)	$ 6.39
Exercise price, low end of the range (in dollars per share)	$ 5
Exercise price, high end of the range (in dollars per share)	$ 7.45
Range of exercise price $7.46 to $9.99
Stock options outstanding and exercisable by range of exercise prices
Options Outstanding at the end of the period (in shares)	602,418
Options Outstanding - Weighted Average Remaining Contractual Term	4 years 3 months 7 days
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 8.46
Options Exercisable at the end of the period (in shares)	602,418
Options Exercisable - Weighted Average Exercise Price (in dollars per share)	$ 8.46
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
Range of exercise price $10.00 to $14.99
Stock options outstanding and exercisable by range of exercise prices
Options Outstanding at the end of the period (in shares)	10,029
Options Outstanding - Weighted Average Remaining Contractual Term	1 year
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 12.27
Options Exercisable at the end of the period (in shares)	10,029
Options Exercisable - Weighted Average Exercise Price (in dollars per share)	$ 12.27
Exercise price, low end of the range (in dollars per share)	$ 10
Exercise price, high end of the range (in dollars per share)	$ 14.99
Range of exercise price $15.00 to $19.99
Stock options outstanding and exercisable by range of exercise prices
Options Outstanding at the end of the period (in shares)	80,127
Options Outstanding - Weighted Average Remaining Contractual Term	1 year 8 months 5 days
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 15.00
Options Exercisable at the end of the period (in shares)	80,127
Options Exercisable - Weighted Average Exercise Price (in dollars per share)	$ 15.00
Exercise price, low end of the range (in dollars per share)	$ 15
Exercise price, high end of the range (in dollars per share)	$ 19.99
Range of exercise price $20.00 to $20.19
Stock options outstanding and exercisable by range of exercise prices
Options Outstanding at the end of the period (in shares)	46,663
Options Outstanding - Weighted Average Remaining Contractual Term	1 year 8 months 5 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
Exercise price, low end of the range (in dollars per share)	$ 20
Exercise price, high end of the range (in dollars per share)	$ 20.19

STOCK-BASED COMPENSATION (Details 5) (USD $)	9 Months Ended
STOCK-BASED COMPENSATION (Details 5) (USD $)	Sep. 30, 2013
RSUs
Nonvested RSUs, Restricted Stock and Restricted Stock with a Market Condition, Number of Shares
Nonvested at the beginning of the period (in shares)	757,111
Granted (in shares)	289,745
Vested (in shares)	(276,291)
Forfeited (in shares)	(76,545)
Nonvested at the end of the period (in shares)	694,020
Nonvested RSUs, Restricted Stock and Restricted Stock with a Market Condition, Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share)	$ 9.09
Granted (in dollars per share)	$ 18.04
Vested (in dollars per share)	$ 9.60
Forfeited (in dollars per share)	$ 9.56
Nonvested at the end of the period (in dollars per share)	$ 12.69
Restricted stock
Nonvested RSUs, Restricted Stock and Restricted Stock with a Market Condition, Number of Shares
Nonvested at the beginning of the period (in shares)	187,501
Granted (in shares)	62,500
Vested (in shares)	(187,501)
Nonvested at the end of the period (in shares)	62,500
Nonvested RSUs, Restricted Stock and Restricted Stock with a Market Condition, Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share)	$ 7.44
Granted (in dollars per share)	$ 17.49
Vested (in dollars per share)	$ 7.44
Nonvested at the end of the period (in dollars per share)	$ 17.49
Restricted stock market condition
Nonvested RSUs, Restricted Stock and Restricted Stock with a Market Condition, Number of Shares
Granted (in shares)	62,500
Nonvested at the end of the period (in shares)	62,500
Nonvested RSUs, Restricted Stock and Restricted Stock with a Market Condition, Weighted Average Grant Date Fair Value
Granted (in dollars per share)	$ 13.93
Nonvested at the end of the period (in dollars per share)	$ 13.93

INCOME TAXES (Details) (USD $)	3 Months Ended		9 Months Ended
INCOME TAXES (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Income tax benefit (provision)	$ 98,000	$ (188,000)	$ 97,000	$ 3,086,000
Effective tax rates (as a percent)	45.00%	41.00%	4.60%	39.40%
Valuation allowance					$ 55,000,000

- Definition

Amount of deferred tax assets for which it is more likely than not that a tax benefit will not be realized.

+ References+ Details

- 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 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 $)	1 Months Ended	0 Months Ended	9 Months Ended
CONTINGENCIES (Details) (USD $)	May 31, 2007 Violation of various laws and breach of contracts and covenants complaint	Nov. 30, 2006 Intentional interference with contractual relations and prospective economic advantage and violation of various laws plaintiff	Sep. 30, 2013 Massachusetts Division of Banks regulator
Contingencies
Number of total complaints filed	8
Number of complaints dismissed by federal and state courts	7
Number of former network lenders		2
Number of Joining Regulators			34
Joining Regulators with analogous allegations			0
Range of possible loss, minimum			$ 500,000
Range of possible loss, maximum			6,500,000
Amount of reserve for contingencies			$ 500,000

- Definition

The estimated maximum amount of possible loss from the contingency.

+ References+ Details

- Definition

The estimated minimum amount of possible loss from the contingency.

+ References+ Details

SEGMENT INFORMATION (Details) (USD $) In Thousands, unless otherwise specified	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Feb. 28, 2013	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013 segment	Sep. 30, 2012	Dec. 31, 2012 segment
SEGMENT INFORMATION
Number of reportable operating segments prior to expansion						1
Number of reportable operating segments				2
Revenue		$ 37,343	$ 23,296	$ 102,829	$ 53,501
Cost of revenue (exclusive of depreciation shown separately below)		1,733	1,231	5,039	2,830
Selling and marketing expense		24,832	13,376	68,473	34,997
General and administrative expense		5,610	5,532	17,817	16,166
Product development		1,217	853	3,914	2,383
Depreciation		891	934	2,648	3,204
Amortization of intangibles		33	101	119	314
Restructuring and severance		(70)	(48)	76	(109)
Litigation settlements and contingencies		2,875	510	6,812	948
Total costs and expenses		37,121	22,489	104,898	60,733
Operating income (loss)		222	807	(2,069)	(7,232)
Adjustments to reconcile to Adjusted EBITDA:
Amortization of intangibles		33	101	119	314
Depreciation		891	934	2,648	3,204
Restructuring and severance		(70)	(48)	76	(109)
Loss (gain) on disposal of assets		1	284	25	344
Non-cash compensation		1,412	1,309	4,278	3,565
Discretionary cash bonus	900			920
Litigation settlements and contingencies		2,875	510	6,812	948
Adjusted EBITDA		5,364	3,897	12,809	1,034
Adjustments to reconcile to Income before taxes:
Operating income (loss)		222	807	(2,069)	(7,232)
Interest expense		(4)	(349)	(18)	(606)
Income (loss) before income taxes		218	458	(2,087)	(7,838)
Mortgage
SEGMENT INFORMATION
Revenue		34,257	19,471	93,305	39,869
Cost of revenue (exclusive of depreciation shown separately below)		1,545	879	4,095	2,201
Selling and marketing expense		23,072	9,755	62,351	23,708
General and administrative expense		711	1,117	2,563	2,530
Product development		990	541	3,166	1,482
Depreciation		357	389	1,076	1,177
Amortization of intangibles		0	0	0	0
Restructuring and severance		1	16	24	20
Litigation settlements and contingencies		0	0	0	0
Total costs and expenses		26,676	12,697	73,275	31,118
Operating income (loss)		7,581	6,774	20,030	8,751
Adjustments to reconcile to Adjusted EBITDA:
Amortization of intangibles		0	0	0	0
Depreciation		357	389	1,076	1,177
Restructuring and severance		1	16	24	20
Loss (gain) on disposal of assets		0	284	0	309
Non-cash compensation		411	201	1,307	552
Discretionary cash bonus				0
Litigation settlements and contingencies		0	0	0	0
Adjusted EBITDA		8,350	7,664	22,437	10,809
Adjustments to reconcile to Income before taxes:
Operating income (loss)		7,581	6,774	20,030	8,751
Non-Mortgage
SEGMENT INFORMATION
Revenue		3,086	3,563	8,902	12,510
Cost of revenue (exclusive of depreciation shown separately below)		168	149	505	396
Selling and marketing expense		1,760	3,807	6,117	11,475
General and administrative expense		604	551	1,534	1,635
Product development		227	312	748	907
Depreciation		426	429	1,269	1,562
Amortization of intangibles		33	101	119	314
Restructuring and severance		(77)	6	48	7
Litigation settlements and contingencies		0	0	0	0
Total costs and expenses		3,141	5,355	10,340	16,296
Operating income (loss)		(55)	(1,792)	(1,438)	(3,786)
Adjustments to reconcile to Adjusted EBITDA:
Amortization of intangibles		33	101	119	314
Depreciation		426	429	1,269	1,562
Restructuring and severance		(77)	6	48	7
Loss (gain) on disposal of assets		0	0	0	30
Non-cash compensation		220	129	457	384
Discretionary cash bonus				0
Litigation settlements and contingencies		0	0	0	0
Adjusted EBITDA		547	(1,127)	455	(1,489)
Adjustments to reconcile to Income before taxes:
Operating income (loss)		(55)	(1,792)	(1,438)	(3,786)
Corporate
SEGMENT INFORMATION
Revenue		0	262	622	1,122
Cost of revenue (exclusive of depreciation shown separately below)		20	203	439	233
Selling and marketing expense		0	(186)	5	(186)
General and administrative expense		4,295	3,864	13,720	12,001
Product development		0	0	0	(6)
Depreciation		108	116	303	465
Amortization of intangibles		0	0	0	0
Restructuring and severance		6	(70)	4	(136)
Litigation settlements and contingencies		2,875	510	6,812	948
Total costs and expenses		7,304	4,437	21,283	13,319
Operating income (loss)		(7,304)	(4,175)	(20,661)	(12,197)
Adjustments to reconcile to Adjusted EBITDA:
Amortization of intangibles		0	0	0	0
Depreciation		108	116	303	465
Restructuring and severance		6	(70)	4	(136)
Loss (gain) on disposal of assets		1	0	25	5
Non-cash compensation		781	979	2,514	2,629
Discretionary cash bonus				920
Litigation settlements and contingencies		2,875	510	6,812	948
Adjusted EBITDA		(3,533)	(2,640)	(10,083)	(8,286)
Adjustments to reconcile to Income before taxes:
Operating income (loss)		$ (7,304)	$ (4,175)	$ (20,661)	$ (12,197)

RESTRUCTURING EXPENSE (Details) (USD $)			9 Months Ended
RESTRUCTURING EXPENSE (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013 Continuing Lease Obligations
Changes in restructuring expenses
December 31, 2012			$ 906,000
Restructuring expense			25,000
Payments			(368,000)
September 30, 2013			563,000
Restructuring liabilities
Restructuring liabilities included in accrued expense and other current liabilities	298,000	364,000
Restructuring liabilities included in other non-current liabilities	$ 300,000	$ 500,000

- Definition

The charge against earnings in the period, comprised of costs incurred associated with an exit or disposal activity other than for a discontinued operations as defined under generally accepted accounting principles. Costs of such activities include those for one-time termination benefits, termination of an operating lease or other contract, consolidating or closing facilities, and relocating employees, and costs associated with an ongoing benefit arrangement, but excludes costs associated with the retirement of a long-lived asset.

+ References+ Details

- Definition

Carrying amount as of the balance sheet date of known and estimated obligations associated with exit from or disposal of business activities or restructurings pursuant to a duly authorized plan, which are expected to be paid in the next twelve months or in the normal operating cycle if longer. Costs of such activities include those for one-time termination benefits, termination of an operating lease or other contract, consolidating or closing facilities, relocating employees, and costs associated with an ongoing benefit arrangement, but excludes costs associated with the retirement of a long-lived asset.

+ References+ Details

- Definition

Carrying amount as of the balance sheet date of known and estimated costs associated with exit from or disposal of business activities or restructurings pursuant to a duly authorized plan, which are expected to be paid after one year or beyond the next operating cycle, if longer. Costs of such activities include those for one-time termination benefits, termination of an operating lease or other contract, consolidating or closing facilities, and relocating employees, and costs associated with an ongoing benefit arrangement, but excludes costs associated with the retirement of a long-lived asset.

+ References+ Details

- Definition

Amount of cash paid in the period to fully or partially settle a specified, previously accrued type of restructuring cost.

+ References+ Details

DISCONTINUED OPERATIONS (Details) (USD $)	3 Months Ended		9 Months Ended			1 Months Ended	3 Months Ended		9 Months Ended			3 Months Ended		9 Months Ended
DISCONTINUED OPERATIONS (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	May 31, 2013 Discover	Sep. 30, 2013 Real estate businesses	Sep. 30, 2012 Real estate businesses	Sep. 30, 2013 Real estate businesses	Sep. 30, 2012 Real estate businesses	Dec. 31, 2012 Real estate businesses	Sep. 30, 2013 Lending Tree Loans	Sep. 30, 2012 Lending Tree Loans	Sep. 30, 2013 Lending Tree Loans	Sep. 30, 2012 Lending Tree Loans	Dec. 31, 2012 Lending Tree Loans
DISCONTINUED OPERATIONS
Indemnification claim settlement value and other miscellaneous items						$ 1,300,000
Revenue and net income (loss) of discontinued operations
Revenue							0	2,000	1,000	77,000		(37,000)	5,943,000	(1,524,000)	87,338,000
Income (loss) before income taxes							(6,000)	(282,000)	(21,000)	(442,000)		(520,000)	4,470,000	(3,887,000)	27,660,000
Income tax benefit (expense)							0	0	0	0		(3,000)	(76,000)	(54,000)	(2,473,000)
Gain from sale of discontinued operations, net of tax												0	0	10,101,000	24,313,000
Income (loss) from discontinued operations	(529,000)	4,112,000	6,139,000	49,058,000			(6,000)	(282,000)	(21,000)	(442,000)		(523,000)	4,394,000	6,160,000	49,500,000
Assets and liabilities of facilities reported as discontinued operations
Current assets	31,000		31,000		407,000							31,000		31,000		407,000
Non-current assets	129,000		129,000		129,000							129,000		129,000		129,000
Current liabilities	(31,946,000)		(31,946,000)		(31,017,000)		(78,000)		(78,000)		(206,000)	(31,868,000)		(31,868,000)		(30,811,000)
Non-current liabilities	(151,000)		(151,000)		(253,000)							(151,000)		(151,000)		(253,000)
Net liabilities							$ (78,000)		$ (78,000)		$ (206,000)	$ (31,859,000)		$ (31,859,000)		$ (30,528,000)

DISCONTINUED OPERATIONS (Details 2) (Lending Tree Loans, USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2012	Sep. 30, 2013 goal	Dec. 31, 2012
Fair Value Measurements
Net liabilities			$ (31,859,000)	$ (30,528,000)
Loans held for sale \| Discontinued operations
Changes in assets that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Total net gains (losses) included in earnings (realized and unrealized)	(380,000)	(147,000)
Fair value on a recurring basis \| Discontinued operations
Fair Value Measurements
Net liabilities			0	0
Interest Rate Lock Commitments \| Discontinued operations
Fair Value Measurements
Number of goals to be achieved by modifying valuation calculation			2
Notional value outstanding			0	0
Changes in 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 (realized and unrealized)	0	73,378,000
Forward delivery contracts \| Discontinued operations
Changes in 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 (realized and unrealized)	0	846,000
Fair Value, Inputs, Level 3 \| Loans held for sale \| Discontinued operations
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	167,000	295,000
Transfers into Level 3	124,000	564,000
Total net gains (losses) included in earnings (realized and unrealized)	(380,000)	(147,000)
Purchases, sales, and settlements
Sales	90,000	(491,000)
Settlements	(1,000)	(221,000)
Balance at the ending of the period	0	0
Fair Value, Inputs, Level 3 \| Interest Rate Lock Commitments \| Discontinued operations
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	0	9,122,000
Total net gains (losses) included in earnings (realized and unrealized)	0	73,378,000
Purchases, sales, and settlements
Sales	0	(5,640,000)
Settlements	0	(3,401,000)
Transfers of IRLCs to closed loans	0	(73,459,000)
Balance at the ending of the period	0	0
Fair Value, Inputs, Level 3 \| Forward delivery contracts \| Discontinued operations
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	0	19,000
Transfers out of Level 3	0	(845,000)
Total net gains (losses) included in earnings (realized and unrealized)	0	846,000
Purchases, sales, and settlements
Sales	0	(20,000)
Balance at the ending of the period	$ 0	$ 0

DISCONTINUED OPERATIONS (Details 3) (Lending Tree Loans, Discontinued operations, USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2012
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	$ (380)	$ (147)
Change in unrealized gains (losses) relating to assets still held at the end of the period	(412)	(412)
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 (losses) included in earnings	0	73,378
Change in unrealized gain (losses) relating to assets and liabilities still held at the end of the period	0	0
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 (losses) included in earnings	0	846
Change in unrealized gain (losses) relating to assets and liabilities still held at the end of the period	$ 0	$ 0

DISCONTINUED OPERATIONS (Details 4) (Lending Tree Loans, Discontinued operations, USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2012
Gain/(loss) recognized in the consolidated statements of operations for derivatives
Gain/(Loss) recognized in Income on Derivative	$ 2,193	$ 77,622
Interest Rate Lock Commitments
Gain/(loss) recognized in the consolidated statements of operations for derivatives
Gain/(Loss) recognized in Income on Derivative	0	73,378
Forward delivery contracts
Gain/(loss) recognized in the consolidated statements of operations for derivatives
Gain/(Loss) recognized in Income on Derivative	$ 2,193	$ 4,244

DISCONTINUED OPERATIONS (Details 5) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2013 Lending Tree Loans Discontinued operations Loans held for sale loan	Dec. 31, 2012 Lending Tree Loans Discontinued operations Loans held for sale loan
Fair Value Measurements
Number of loans held for sale or carried at the lower of cost or market (LOCOM) value assessed on an individual loan basis		0	0
Gain due to change in fair value of loans held for sale	$ 2.7

DISCONTINUED OPERATIONS (Details 6) (USD $)	3 Months Ended		9 Months Ended
DISCONTINUED OPERATIONS (Details 6) (USD $)	Sep. 30, 2013 loan request	Sep. 30, 2012	Sep. 30, 2013 segment loan request	Sep. 30, 2012	Dec. 31, 2012 request
Loan Loss Obligations
Restricted cash and cash equivalents	$ 26,018,000		$ 26,018,000		$ 29,414,000
Lending Tree Loans \| Discontinued operations
Loan Loss Obligations
Number of investors to whom loans are guaranteed			2
Loan loss obligations \| Lending Tree Loans \| Discontinued operations
Loan Loss Obligations
Number of segments			4
Weighted percentage for estimation of range of remaining loan losses in revised analysis			50.00%
Weighted percentage for estimation of range of remaining loan losses on other factor			25.00%
Loss Contingency Accrual, at Carrying Value	28,713,000	26,589,000	28,713,000	26,589,000
Estimated range of remaining possible losses due to loan losses, minimum	18,000,000		18,000,000
Estimated range of remaining possible losses due to loan losses, maximum	37,000,000		37,000,000
Original principal balance	39,400,000,000		39,400,000,000
Loss Contingencies, Number of Loans Sold with Losses	498		498
Number of loans sold	235,900		235,900
Original principal balance of loans with losses	68,100,000		68,100,000
Amount of aggregate losses	29,100,000		29,100,000
Number of requests for loan repurchases and indemnifications considered in determining the appropriate reserve amount	440		440		398
Original principal balance for loans pending	87,600,000		87,600,000
Percentage of full documentation first liens of original principal amount of loans related to indemnification	74.00%		74.00%
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	21.00%		21.00%
Percentage of limited documentation second liens of original principal amount of loans related to indemnification	3.00%		3.00%
Activity related to loss reserves on previously sold loans
Balance, beginning of period	28,675,000	33,096,000	27,182,000	31,512,000
Provisions (recoveries)	38,000	(6,493,000)	1,531,000	(109,000)
Charge offs to reserves		(14,000)		(4,814,000)
Balance, end of period	28,713,000	26,589,000	28,713,000	26,589,000
Loan loss obligations \| Lending Tree Loans \| Discontinued operations \| 2013
Loan Loss Obligations
Original principal balance	0		0
Loss Contingencies, Number of Loans Sold with Losses	0		0
Number of loans sold	0		0
Original principal balance of loans with losses	0		0
Amount of aggregate losses	0		0
Loan loss obligations \| Lending Tree Loans \| Discontinued operations \| 2012
Loan Loss Obligations
Original principal balance	1,900,000,000		1,900,000,000
Loss Contingencies, Number of Loans Sold with Losses	0		0
Number of loans sold	9,200		9,200
Original principal balance of loans with losses	0		0
Amount of aggregate losses	0		0
Loan loss obligations \| Lending Tree Loans \| Discontinued operations \| 2011
Loan Loss Obligations
Original principal balance	2,700,000,000		2,700,000,000
Loss Contingencies, Number of Loans Sold with Losses	1		1
Number of loans sold	12,500		12,500
Original principal balance of loans with losses	300,000		300,000
Amount of aggregate losses	100,000		100,000
Loan loss obligations \| Lending Tree Loans \| Discontinued operations \| 2010
Loan Loss Obligations
Original principal balance	2,800,000,000		2,800,000,000
Loss Contingencies, Number of Loans Sold with Losses	4		4
Number of loans sold	12,400		12,400
Original principal balance of loans with losses	1,100,000		1,100,000
Amount of aggregate losses	100,000		100,000
Loan loss obligations \| Lending Tree Loans \| Discontinued operations \| 2009
Loan Loss Obligations
Original principal balance	2,800,000,000		2,800,000,000
Loss Contingencies, Number of Loans Sold with Losses	4		4
Number of loans sold	12,800		12,800
Original principal balance of loans with losses	900,000		900,000
Amount of aggregate losses	100,000		100,000
Loan loss obligations \| Lending Tree Loans \| Discontinued operations \| 2008
Loan Loss Obligations
Original principal balance	2,200,000,000		2,200,000,000
Loss Contingencies, Number of Loans Sold with Losses	33		33
Number of loans sold	11,000		11,000
Original principal balance of loans with losses	6,900,000		6,900,000
Amount of aggregate losses	2,200,000		2,200,000
Loan loss obligations \| Lending Tree Loans \| Discontinued operations \| 2007
Loan Loss Obligations
Original principal balance	6,100,000,000		6,100,000,000
Loss Contingencies, Number of Loans Sold with Losses	160		160
Number of loans sold	36,300		36,300
Original principal balance of loans with losses	22,100,000		22,100,000
Amount of aggregate losses	8,200,000		8,200,000
Loan loss obligations \| Lending Tree Loans \| Discontinued operations \| 2006
Loan Loss Obligations
Original principal balance	7,900,000,000		7,900,000,000
Loss Contingencies, Number of Loans Sold with Losses	207		207
Number of loans sold	55,000		55,000
Original principal balance of loans with losses	24,500,000		24,500,000
Amount of aggregate losses	13,400,000		13,400,000
Loan loss obligations \| Lending Tree Loans \| Discontinued operations \| 2005 and prior years
Loan Loss Obligations
Original principal balance	13,000,000,000		13,000,000,000
Loss Contingencies, Number of Loans Sold with Losses	89		89
Number of loans sold	86,700		86,700
Original principal balance of loans with losses	12,300,000		12,300,000
Amount of aggregate losses	5,000,000		5,000,000
Cash in escrow for sale of LendingTree Loans
Loan Loss Obligations
Restricted cash and cash equivalents	$ 18,117,000		$ 18,117,000		$ 17,077,000

DISCONTINUED OPERATIONS (Details 7) (Warehouse lines of credit, Lending Tree Loans, Discontinued operations, USD $) In Millions, unless otherwise specified	0 Months Ended
	Jul. 21, 2012 LoCs
Warehouse lines of credit \| Lending Tree Loans \| Discontinued operations
Warehouse Lines of Credit
Number of lines of credit expired	3
Borrowing capacity	$ 325.0