Intangible Assets

12 Months Ended

Dec. 31, 2013

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Intangible assets are reported in Other assets in our consolidated balance sheets and consist of the following (in thousands):



	2013		2012
Indefinite-life intangible asset—Pullmantur trademarks and trade names	$	204,866	$	218,883
Impairment charge	—		(17,356		)
Foreign currency translation adjustment	9,246		3,339
Total	$	214,112	$	204,866

During the fourth quarter of 2013 and 2012, we performed the annual impairment review of our trademarks and trade names using a discounted cash flow model and the relief-from-royalty method. The royalty rate used is based on comparable royalty agreements in the tourism and hospitality industry. These trademarks and trade names relate to Pullmantur and we have used a discount rate comparable to the rate used in valuing the Pullmantur reporting unit in our goodwill impairment test. Based on the results of our testing, we did not record an impairment of Pullmantur's tradenames and trademarks for the year ended December 31, 2013 but for the year ended December 31, 2012, we recorded an impairment of $17.4 million.

As described in Note 3. Goodwill, the persistent economic instability in Pullmantur's markets has created significant uncertainties in forecasting operating results and future cash flows used in our impairment analysis. We continue to monitor economic events in these markets for their potential impact on Pullmantur’s business and valuation. Further, the estimation of fair value utilizing discounted expected future cash flows includes numerous uncertainties which require our significant judgment when making assumptions of expected revenues, operating costs, marketing, selling and administrative expenses, interest rates, ship additions and retirements as well as assumptions regarding the cruise vacation industry's competitive environment and general economic and business conditions, among other factors. If there are modest changes to the projected future cash flows used in the impairment analysis, especially in Net Yields or if certain transfers of vessels from our other cruise brands to the Pullmantur fleet do not take place, an impairment charge with respect to the Pullmantur reporting unit’s trademarks and trade names may be required.

Finite-life intangible assets and related accumulated amortization are immaterial to our 2013, 2012, and 2011 consolidated financial statements.