Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2014

3. Goodwill and Intangible Assets

Goodwill

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

	Gross Carrying		Accumulated			Net Carrying
	Amount		Impairment			Amount
			Losses
Goodwill as of December 31, 2013	$	90,770	$	(304	)	$	90,466
Change in goodwill during the six months ended June 30, 2014		-		-			-
Goodwill as of June 30, 2014	$	90,770	$	(304	)	$	90,466

As of June 30, 2014 and December 31, 2013, all of ICG’s goodwill was allocated to its consolidated businesses.

Intangible Assets

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

		As of June 30, 2014
		Gross Carrying		Accumulated			Net Carrying
Intangible Assets	Useful Life	Amount		Amortization			Amount
Customer relationships	1-11 years	$	45,597	$	(11,845	)	$	33,752
Trademarks/trade names	3-11 years		15,813		(3,187	)		12,626
Technology	5-10 years		9,527		(3,028	)		6,499
Non-compete agreements	2-5 years		3,666		(2,768	)		898
Other intellectual property ⁽¹⁾	2 years	400			-			400
		$	75,003	$	(20,828	)	$	54,175

⁽¹⁾ ICG currently estimates the residual value of this asset to be $0.4 million.

		As of December 31, 2013
		Gross Carrying		Accumulated			Net Carrying
Intangible Assets	Useful Life	Amount		Amortization			Amount
Customer relationships	1-11 years	$	45,601	$	(9,546	)	$	36,055
Trademarks/trade names	3-11 years		15,813		(2,373	)		13,440
Technology	5-10 years		9,527		(2,161	)		7,366
Non-compete agreements	2-5 years		3,666		(2,172	)		1,494
			74,607		(16,252	)		58,355
Other intellectual property	Indefinite	400			-		400
		$	75,007	$	(16,252	)	$	58,755

Amortization expense for intangible assets during the three and six month periods ended June 30, 2014 was $2.3 million and $4.6 million, respectively. Amortization expense for intangible assets during the three and six month periods ended June 30, 2013 was $1.5 million and $4.0 million, respectively. ICG amortizes intangible assets using the straight line method.

Remaining estimated amortization expense for the respective years set forth below is as follows (in thousands):

2014 (remaining six months)	$	4,579
2015		8,254
2016		7,844
2017		7,426
2018		6,168
Thereafter		19,504
Remaining amortization expense	$	53,775

Impairment

ICG conducts 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, 2014 and 2013.

- 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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