Goodwill and Intangibles, Net

6 Months Ended

Jun. 30, 2013

3. Goodwill and Intangibles, net

Goodwill

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

	Gross Carrying Amount					Accumulated Impairment Losses					Net Carrying Amount
Goodwill as of June 30, 2013 and December 31, 2012	$		120,149			$		(304	)		$		119,845

During the three months ended June 30, 2013, ICG finalized its allocation of purchase price related to ICG’s 2012 consolidation of Bolt. During the six months ended June 30, 2013, the allocation of purchase price related to Procurian’s acquisition of Utilities Analyses, Inc. (“UAI”) was also finalized. Accordingly, based on revisions to initial estimates, ICG retrospectively increased the value of goodwill as of December 31, 2012 by $12.1 million, which was primarily offset by a decrease in intangible assets. The final purchase price allocations related to those transactions are detailed in Note 4, “Consolidated Core Companies.” As of June 30, 2013 and December 31, 2012, all of ICG’s goodwill was allocated to its consolidated core companies.

Intangible Assets

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

		As of June 30, 2013
Intangible Assets	Useful Life	Gross Carrying Amount			Accumulated Amortization				Net Carrying Amount
Customer relationships	1-11 years	$	50,031	$		(7,909	)	$		42,122
Trademarks/trade names	3-11 years		15,673			(1,679	)			13,994
Technology	5-10 years		9,077			(1,424	)			7,653
Non-compete agreements	2-5 years		4,636			(1,778	)			2,858
Intellectual property	5 years		248			(44	)			204
			79,665			(12,834	)			66,831
Other intellectual property	Indefinite		400			—				400
		$	80,065	$		(12,834	)	$		67,231

		As of December 31, 2012
Intangible Assets	Useful Life	Gross Carrying Amount			Accumulated Amortization				Net Carrying Amount
Customer relationships	3-11 years	$	49,995	$		(5,904	)	$		44,091
Trademarks/trade names	3-11 years		15,673			(965	)			14,708
Technology	10 years		11,607			(852	)			10,755
Non-compete agreements	2-5 years		4,636			(1,047	)			3,589
Intellectual property	5 years		248			(33	)			215
			82,159			(8,801	)			73,358
Other intellectual property	Indefinite		400			—				400
		$	82,559	$		(8,801	)	$		73,758

Amortization expense for intangible assets during the three- and six-month periods ended June 30, 2013 was $1.9 million and $4.8 million, respectively. Amortization expense for intangible assets during the three- and six-month periods ended June 30, 2012 was $1.4 million and $1.9 million, respectively. ICG amortizes intangibles using the straight line method.

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

2013	$	4,774
2014		9,406
2015		8,409
2016		8,074
2017		7,693
Thereafter		28,475
Remaining amortization expense	$	66,831

As discussed above, intangible assets decreased $11.0 million during the six months ended June 30, 2013 due to the finalization of acquisition accounting related to ICG’s 2012 consolidation of Bolt. Amortization expense for intangible assets recorded in connection with the consolidation of Bolt was $1.0 million and $0.1 million for the three-month periods ended March 31, 2013 and June 30, 2013, respectively. The impact on amortization expense for each of those three-month periods based on the finalization of the acquisition accounting was immaterial. Amortization for the six-month period ended June 30, 2013 is based on the intangible assets recorded upon the finalization of the acquisition accounting, which occurred during the three months ended June 30, 2013.

Impairment

ICG completes its annual impairment testing in the fourth quarter of each year, or more frequently as conditions warrant. There were no impairment charges related to goodwill or intangible assets associated with ICG’s consolidated subsidiaries during the three- and six-month periods ended June 30, 2013 and 2012.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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