7. Financial Instruments

Fair Value Measurements

Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. There are three levels of inputs that may be used to measure fair value, which are as follows:

Level 1 – Observable inputs, such as quoted market prices for identical assets and liabilities in active public markets.

Level 2 – Observable inputs other than Level 1 prices based on quoted prices in markets with insufficient volume or infrequent transactions, or valuations in which all significant inputs are observable for substantially the full term of the asset or liability.

Level 3 – Unobservable inputs to the valuation techniques that are significant to the fair value of the asset or liability.

Assets and liabilities are measured at fair value based on one or more of the following three valuation techniques:

Market Approach – Fair value is determined based on prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities.

Income Approach – Fair value is determined by converting relevant future amounts to a single present amount based on market expectations (including present value techniques and option pricing models).

Cost Approach – Fair value represents the amount that currently would be required to replace the service capacity of the relevant asset (often referred to as replacement cost).

The fair value hierarchy of ICG’s financial assets measured at fair value on a recurring basis as of March 31, 2014 and December 31, 2013 was as follows (in thousands):

			Valuation
	Asset (liability) at		Technique
	March 31, 2014		(Approach)	Level 1		Level 2		Level 3

Cash equivalents (money market accounts and
commercial paper investments)	$	313,882	Market	$	313,882	$	-	$	-
	$	313,882		$	313,882	$	-	$	-

			Valuation
	Asset (liability) at		Technique
	December 31, 2013		(Approach)	Level 1		Level 2		Level 3


Cash equivalents (money market accounts)	$	325,652	Market	$	325,652	$	-	$	-
	$	325,652		$	325,652	$	-	$	-