Goodwill and Intangibles Assets

9 Months Ended

Sep. 30, 2012

Goodwill and Intangibles Assets [Abstract]

Goodwill and Intangibles Assets

3. Goodwill and Intangible Assets

Goodwill

The following table summarizes the activity related to ICG’s goodwill (in thousands):

	Gross Carrying Amount		Accumulated Impairment Losses		Net Carrying Amount
Goodwill at December 31, 2011	$	22,538	$	—	$	22,538
Increase in goodwill due to MSDSonline acquisition on March 30, 2012 (Note 4)		15,847		—		15,847
Increase in goodwill due to Channel Intelligence consolidation on July 11, 2012 (Note 4)		47,055		—		47,055
Estimated increase in goodwill due to preliminary allocation of acquisition price for subsidiary acquisition (Note 4)		13,823		—		13,823
Goodwill at September 30, 2012	$	99,263	$	—	$	99,263

As of September 30, 2012 and December 31, 2011, all of ICG’s goodwill was allocated to its consolidated core companies.

Intangible Assets

The following table summarizes ICG’s intangible assets (in thousands):

		As of September 30, 2012
Intangible Assets	Useful Life	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	3-11 years	$	52,707	$	(5,092	)	$	47,615
Trademarks, trade names and domain names	3-11 years		16,547		(856	)		15,691
Technology	5-10 years		9,889		(683	)		9,206
Non-compete agreements	2-5 years		4,384		(698	)		3,686
Licensing and servicing agreements	2-10 years		4,140		(223	)		3,917
Intellectual property	5 years		235		(26	)		209
			87,902		(7,578	)		80,324
Other intellectual property	Indefinite		400		—			400
		$	88,302	$	(7,578	)	$	80,724
		As of December 31, 2011
Intangible Assets	Useful Life	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	3-11 years	$	13,317	$	(2,344	)	$	10,973
Trademarks/trade names	3-11 years		1,547		(243	)		1,304
Technology	10 years		1,559		(149	)		1,410
Non-compete agreements	2-5 years		336		(29	)		307
Intellectual property	5 years		41		(4	)		37
			16,800		(2,769	)		14,031
Other intellectual property	Indefinite		400		—			400
		$	17,200	$	(2,769	)	$	14,431

Amortization expense for intangible assets during the three and nine-month periods ended September 30, 2012 was $2.5 million and $4.4 million, respectively. Additionally, in the three and nine month periods ended September 30, 2012 there was an impairment charge of $0.4 million for customer relationships. That $0.4 million impairment charge was reflected in “Impairment related and other” in ICG’s Consolidated Statements of Operations for the three months ended September 30, 2012 and is included in the $5.1 million accumulated amortization for customer relationships for the period ended September 30, 2012 in the table above. Amortization expense for intangible assets during the three and nine month periods ended September 30, 2011 was $0.3 million and $1.0 million, respectively. ICG amortizes intangibles using the straight line method.

Remaining estimated amortization expense is as follows (in thousands):

2012 (remaining three months)	$	2,670
2013	$	10,676
2014	$	10,409
2015	$	9,428
2016	$	9,124
Thereafter	$	38,017
Remaining amortization expense	$	80,324

Impairment

During the three and nine months ended September 30, 2012, GovDelivery decreased its liability related to contingent consideration payments for a recent acquisition because it believes that performance targets related to those contingent payments will not be met. As a result, GovDelivery performed an impairment analysis with respect to the associated intangible assets and goodwill recorded related to that acquisition, and recorded an impairment charge of $0.4 million related to the intangible assets that is reflected in the line item “Impairment related and other” in ICG’s Consolidated Statements of Operations for the three and nine months ended September 30, 2012. There were no impairment charges related to goodwill or intangible assets associated with ICG’s consolidated subsidiaries during the three and nine months ended September 30, 2011.