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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2012
Total Income Tax (Benefit) Expense

Total income tax (benefit) expense was allocated as follows:

 

     Year Ended December 31,  
     2012     2011     2010  
     (in thousands)  

Income tax (benefit) expense from continuing operations:

      

Current taxes

      

Federal taxes

   $ 57      $ (464   $ (811

State taxes

     640        329        72   

Foreign taxes

     506        164        310   
  

 

 

   

 

 

   

 

 

 

Current taxes

   $ 1,203      $ 29      $ (429
  

 

 

   

 

 

   

 

 

 

Deferred taxes

      

Federal taxes

   $ (376   $ 56      $ 807   

State taxes

     537        (4,372     (15

Foreign taxes

     (28     —          (1
  

 

 

   

 

 

   

 

 

 

Deferred taxes

   $ 133      $ (4,316   $ 791   
  

 

 

   

 

 

   

 

 

 

Income tax (benefit) expense

   $ 1,336      $ (4,287   $ 362   
  

 

 

   

 

 

   

 

 

 
Net Deferred Tax Asset (Liability)

ICG’s net deferred tax asset (liability) consists of the following:

 

     As of December 31,  
     2012     2011  
     (in thousands)  

Deferred tax assets:

    

Net operating loss and capital loss carryforward – 382 limited

   $ 97,760      $ 85,306   

Net operating loss carryforward – not 382 limited

     35,811        31,236   

State net operating loss carryforward, net

     4,345        4,719   

Capital loss carryforward – not 382 limited

     44,806        5,039   

Company basis difference

     18,958        65,482   

Reserves and accruals

     5,563        3,175   

Equity-based compensation expense

     9,196        7,450   

AMT and other credits

     582        582   

Other, net

     1,348        2,684   
  

 

 

   

 

 

 

Total deferred tax assets

     218,369        205,673   

Valuation allowance

     (162,283     (168,355
  

 

 

   

 

 

 

Deferred tax asset

     56,086        37,318   
  

 

 

   

 

 

 

Deferred tax liabilities:

    

Intangible assets

     (25,968     (4,765
  

 

 

   

 

 

 

Total deferred tax liabilities

     (25,968     (4,765
  

 

 

   

 

 

 

Total net deferred tax assets

   $ 30,118      $ 32,553   
  

 

 

   

 

 

 
Differences in Effective Tax Rate and Federal Statutory Rate

The effective tax rate differs from the federal statutory rate as follows:

 

     Year Ended December 31,  
     2012     2011     2010  

Tax expense (benefit) at statutory rate

     35.0     35.0     35.0

IRS audit adjustment and interest

     —          (0.9 )%      (1.4 )% 

Foreign and state taxes

     4.6     2.1     0.8

Non-deductible expenses and other

     0.1     3.7     (1.8 )% 

Valuation allowance

     (24.4 )%      (57.8 )%      (55.1 )% 

Consolidation of Procurian

     —          —          74.7

Reduction in deferred tax liability

     —          —          (51.7 )% 

Prior period adjustment

     (3.6 )%      —          —     

Acquisition of MSDSonline

     (6.3 )%      —          —     
  

 

 

   

 

 

   

 

 

 
     5.4     (17.9 )%      0.5