Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes [Abstract]

Income Taxes

11. Income Taxes

ICG Group, Inc., GovDelivery, InvestorForce and Procurian file a consolidated federal income tax return. MSDSonline joined that consolidated federal income tax return as of March 30, 2012. For the six months ended June 30, 2012 and 2011, the effective tax rate for the combined group was (8.0%) and (5.8%), respectively, excluding discrete items. This differs from the statutory rate of 35%, primarily due to the valuation allowance that is maintained on certain deferred tax assets. During the six months ended June 30, 2012, ICG recorded tax expense of $0.9 million related to its consolidated operations. During the six months ended June 30, 2011, ICG recorded tax expense of $2.0 million, primarily net deferred tax expense on discrete items related to the gain on the sale of Metastorm, partially offset by the loss on the sale of ClickEquations.

A valuation allowance has been provided for the portion of ICG’s net deferred tax assets that ICG believes, after evaluating all positive and negative evidence, both historical and prospective, is more likely than not to not be realized.

As of December 31, 2010, ICG was entitled to an income tax refund of $6.3 million, which was received during the six months ended June 30, 2011.