7. Equity and Cost Method Businesses

Equity Method Businesses

The following unaudited summarized financial information relates to ICG’s businesses accounted for under the equity method of accounting as of December 31, 2013 and 2012. This aggregate information has been compiled from the financial statements of those businesses.

Balance Sheets (Unaudited)

	December 31, 2013⁽¹⁾			December 31, 2012 ⁽²⁾
	(in thousands)
Cash and cash equivalents	$	5,909		$	5,572
Other current assets		2,002			11,268
Non-current assets		399			13,218
Total assets	$	8,310		$	30,058
Current liabilities	$	11,085		$	21,115
Non-current liabilities		65			1,397
Long-term debt		—			12,670
Stockholders’ deficit		(2,840	)		(5,124	)
Total liabilities and stockholders’ deficit	$	8,310		$	30,058
Total carrying value	$	775		$	13,333

⁽¹⁾	Includes (ICG voting ownership): Acquirgy (25%) and CIML (38%).

⁽²⁾	Includes (ICG voting ownership): Acquirgy (25%), Freeborders (31%) and WhiteFence (36%).

As of December 31, 2013, ICG’s aggregate carrying value in its equity method businesses exceeded ICG’s share of the net assets of those businesses by $1.3 million. Of this excess, $0.6 million is allocated to goodwill, which is not amortized, and $0.7 million is allocated to intangibles, which are generally being amortized over five years. As of December 31, 2012, this excess was $15.3 million, $12.0 million of which was allocated to goodwill, and $3.3 million of which was allocated to intangibles. Amortization expense associated with those intangibles for the years ended December 31, 2013, 2012 and 2011 was $0.2 million, $1.2 million and $2.0 million, respectively; that amortization expense is included in the table below in the line item “Amortization of intangible assets” and is included in the line item “Equity loss” on ICG’s Consolidated Statements of Operations.

Results of Operations (Unaudited)

	Year ended December 31,
	2013 ⁽¹⁾			2012 ⁽²⁾			2011 ⁽³⁾
Revenue	$	48,316		$	89,958		$	176,481
Net income (loss)	$	(9,238	)	$	(20,159	)	$	(31,976	)
Equity income (loss) excluding impairments and amortization of intangible assets	$	(2,798	)	$	(7,518	)	$	(9,946	)
Amortization of intangible assets	$	(165	)		(1,154	)		(2,018	)
Total equity income (loss)	$	(2,963	)	$	(8,672	)	$	(11,964	)

⁽¹⁾	Includes Acquirgy, CIML, Freeborders (through October 18, 2013, the date of disposition) and WhiteFence (through October 28, 2013, the date of disposition).

⁽²⁾	Includes Acquirgy, Bolt (through December 27, 2012, the date of consolidation), CIML (through July 11, 2012, the date of consolidation), Freeborders, GoIndustry (through July 5, 2012, the date of disposition) and WhiteFence.

⁽³⁾	Includes Acquirgy, Bolt, CIML, ClickEquations (through June 14, 2011, the date of disposition), Freeborders, GoIndustry, Metastorm (through February 17, 2011, the date of disposition), StarCite (through December 30, 2011, the date of disposition) and WhiteFence.

Other Equity Method Businesses Information

During the year ended December 31, 2012, ICG participated in a follow-on equity financing transaction for Bolt (prior to ICG’s consolidation of the company). ICG acquired $9.0 million of Bolt preferred stock in the transaction, increasing its ownership in Bolt from 26% to 38%. Also during the year ended December 31, 2012, ICG purchased $13.2 million of Bolt preferred stock from existing shareholders, collectively increasing its ownership in Bolt from 38% to 53%. See Note 4, “Consolidated Businesses,” subsection “Acquisitions,” for additional information related to the consolidation of Bolt.

Cost Method Businesses

ICG’s carrying value of its holdings in cost method businesses was $19.6 million and $13.0 million as December 31, 2013 and 2012, respectively. Those amounts are reflected in the line item “Equity and cost method businesses” on ICG’s Consolidated Balance Sheets as of the relevant dates.

ICG owns approximately 9% of Anthem Ventures Fund, L.P. (formerly eColony, Inc.) and Anthem Ventures Annex Fund, L.P. (collectively, “Anthem”), which invest in technology companies. ICG acquired its interest in Anthem in 2000 and currently has no carrying value in Anthem. Accordingly, the receipt of distributions from Anthem by ICG would result in a gain at the time ICG receives those distributions.

Marketable Securities

Marketable securities represent ICG’s holdings of publicly-traded equity securities and are accounted for as available-for-sale securities. During the years ended December 31, 2012 and 2011, ICG received, and subsequently sold, publicly-traded equity securities that it has accounted for as marketable securities. ICG does not hold any marketable securities as of December 31, 2013. The fair value of the shares of Active common stock held by ICG as of December 31, 2012 of $0.7 million is reflected in both the line item “Marketable Securities” ($0.3 million) and the line item “Prepaid expenses and other current assets” ($0.4 million) on ICG’s Consolidated Balance Sheets. See Note 13, “Other Income (Loss)” for additional information related to the receipt and sale of marketable securities.

Impairments

ICG performs ongoing business reviews of its equity and cost method businesses to determine whether ICG’s carrying value in those businesses is impaired. ICG determined its carrying value in its equity and cost method businesses was not impaired during the years ended December 31, 2013, 2012 and 2011.