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	%