Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2012

Classifications and Fair Value of Derivative Instruments

The following table presents the classifications and fair values of our derivative instruments as of December 31, 2012 and 2011 (in thousands):


Consolidated Balance Sheets
Derivative	Classification	December 31, 2012			December 31, 2011
Interest rate swap	Accrued expenses	$	(90	)	$	(36	)

Mark-to-Market Impact on Earnings Resulting from Hedging Activities

The following table presents the mark-to-market impact on earnings resulting from ICG’s hedging activities for the years ended December 31, 2012, 2011 and 2010, respectively (in thousands):


Consolidated Statements of Operations
		Year ended December 31,
Derivative	Classification	2012			2011			2010
Average rate currency options	Other income (loss), net	$	(262	)	$	(195	)	$	(60	)
Interest rate swap	Interest income (expense)	$	54		$	(24	)	$	(12	)
Cashless collar contracts	Other income (loss), net	$	—		$	—		$	547

Fair Value Hierarchy of Financial Assets Measured at Fair Value on Recurring Basis

The fair value hierarchy of ICG’s financial assets measured at fair value on a recurring basis was as follows (in thousands):


	Asset (liability) at December 31, 2012			Valuation Technique (Approach)		Level 1		Level 2			Level 3

Cash equivalents (money market accounts and commercial paper investments)	$	23,598			Market	$	23,598	$	—		$	—
Hedges of interest rate risk⁽¹⁾		(90	)		Market		—		(90	)		—

	$	23,508				$	23,598	$	(90	)	$	—


	Asset (liability) at December 31, 2011			Valuation Technique (Approach)		Level 1		Level 2			Level 3

Cash equivalents (money market accounts and commercial paper investments)	$	111,775			Market	$	111,775	$	—		$	—
Hedges of interest rate risk ⁽¹⁾		(36	)		Market		—		(36	)		—
Acquisition contingent consideration obligations		(1,197	)		Income		—		—			(1,197	)

	$	110,542				$	111,775	$	(36	)	$	(1,197	)

⁽¹⁾

ICG’s respective counterparties under the arrangements provide quarterly statements of market values of those instruments based on significant inputs that are observable or can be derived principally from, or corroborated by, observable market data for substantially the full term of the asset or liability.

Goodwill and Intangibles, Net, Measured on Non-Recurring Basis Using Market Approach

As discussed in Note 3, “Goodwill and Intangibles, net,” ICG’s non-financial assets measured on a non-recurring basis using the market approach were as follows (in thousands):


	As of December 31,
	2012		2011
	(in thousands)
Significant unobservable inputs (Level 3):
Goodwill (annual impairment assessment)	$	107,794	$	21,843
Acquired intangible assets (periodic assessment, as necessary)		84,715		14,431

	$	192,509	$	36,274

- 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.

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