Introduction
The following Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including those set forth elsewhere in this Report and the risks discussed in our other SEC filings. The following discussion should be read in conjunction with the Consolidated Financial Statements and related Notes thereto included in this Report.
Although we refer in this Report to companies in which we have acquired a convertible debt or an equity ownership interest as our "partner companies" and indicate that we have a "partnership" with these companies, we do not act as an agent or legal representative for any of our partner companies, we do not have the power or authority to legally bind any of our partner companies, and we do not have the types of liabilities in relation to our partner companies that a general partner of a partnership would have.
The Consolidated Financial Statements include the consolidated accounts of Internet Capital Group, Inc., a company incorporated in Delaware, and its subsidiaries, both wholly-owned and consolidated (Internet Capital Group, Inc. and all such subsidiaries are hereinafter referred to as "we," "us," "our," "ICG," the "Company" or "Internet Capital Group"), and have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America ("GAAP").
Executive Summary
Since our inception in 1996, we have focused on acquiring and building Internet software and services companies that improve the productivity and efficiency of their business customers. We call these companies our "partner companies." As of September 30, 2009 and the date of this Report, we hold ownership interests in fourteen companies that we consider our partner companies. Additionally, from time to time we hold marketable securities in other companies, which, as of September 30, 2009 and the date of this Report, consist solely of Blackboard common stock. The results of operations of our partner companies are reported within two segments: the "core" reporting segment and the "other holdings" reporting segment. The core reporting segment includes those partner companies in which ICG's management takes a very active role in providing strategic direction and management assistance. We devote significant expertise and capital to maximizing the success of these core partner companies. The other holdings reporting segment includes partner companies over which, in general, we have less influence because they are public companies and/or we have a relatively small ownership stake in those partner companies.
The various interests that we acquire in our partner companies are accounted for under one of three accounting methods: the consolidation method, the equity method or the cost method. The applicable accounting method is generally determined based on our voting interest in a partner company. Generally, if we own more than 50% of the outstanding voting securities of a partner company, and other stockholders do not possess the right to affect the significant management decisions of that partner company, the partner company's accounts are reflected within our Consolidated Financial Statements. Generally, if we own between 20% and 50% of the outstanding voting securities of a partner company, that partner company's accounts are not reflected within our Consolidated Financial Statements, but our share of the earnings or losses of the partner company is reflected in the caption "Equity loss" in our consolidated statements of operations. Partner companies not accounted for under either the consolidation or the equity method of accounting are accounted for under the cost method of accounting. Under this method, our share of the earnings or losses of these companies is not included in our consolidated statements of operations.

Because we own significant interests in software and services companies, many of which have generated net losses, we have experienced, and expect to continue to experience, significant volatility in our quarterly results. While many of our partner companies have consistently reported losses, we have recorded net income in certain periods and experienced significant volatility from period-to-period due to infrequently occurring transactions and other events relating to our ownership interests in partner companies. These transactions and events are described in more detail in our Notes to Consolidated Financial Statements included hereto and include dispositions of, changes to and impairment of our partner company ownership interests, dispositions of our holdings of marketable securities and debt repurchases.
Liquidity and Capital Resources
The following table summarizes our and our consolidated subsidiaries' cash and cash equivalents, restricted cash, and marketable securities as of September 30, 2009 and December 31, 2008:

                                          September 30, 2009                                  December 31, 2008
                                               Consolidated                                       Consolidated
                              Corporate        Subsidiaries        Total         Corporate        Subsidiaries        Total
                                                                      (in thousands)
Cash and cash equivalents    $    56,243      $       20,985      $ 77,228      $    73,208      $       16,087      $ 89,295
Restricted cash                        -                 240           240                -                 232           232

                             $    56,243      $       21,225      $ 77,468      $    73,208      $       16,319      $ 89,527

Marketable securities (1)    $    68,116      $            -      $ 68,116      $    63,918      $            -      $ 63,918

(1) Includes a contributing asset of $0.6 million and $6.5 million at September 30, 2009 and December 31, 2008, respectively, related to derivative instruments associated with the Company's marketable securities.

We believe existing cash and cash equivalents and proceeds from the potential sales of all or a portion of our interests in certain marketable securities and partner companies to be sufficient to fund our cash requirements for the foreseeable future, including any future commitments to partner companies, debt obligations and general operating requirements. As of the date of this filing, we were not obligated for any material funding and guarantee commitments to existing partner companies. We will continue to evaluate acquisition opportunities and may acquire additional ownership interests in new and existing partner companies in the next twelve months; however, such acquisitions will generally be made at our discretion.
ICG Commerce and Investor Force fund their operations through a combination of cash flow from operations, borrowings and equity issuances. ICG Commerce expects that its existing cash balance and cash flow from operations will be sufficient to fund its operations for the next twelve months, while Investor Force is likely to require additional borrowings and/or equity issuances to fund its operations through the next twelve months.
Consolidated working capital decreased by $3.6 million from December 31, 2008 to September 30, 2009, primarily due to fundings to partner companies and the payment of bonuses, offset by distributions from sales of partner companies and sales of Blackboard common stock.