Intangible Assets

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



	2014			2013
Indefinite-life intangible asset—Pullmantur trademarks and trade names	$	214,112		$	204,866
Foreign currency translation adjustment	(26,074		)	9,246
Total	$	188,038		$	214,112

During the fourth quarter of 2014, 2013 and 2012, we performed the annual impairment review of Pullmantur's trademarks and trade names using a discounted cash flow model and the relief-from-royalty method to compare the fair value of these indefinite-lived intangible assets to its carrying value. The royalty rate used is based on comparable royalty agreements in the tourism and hospitality industry. We 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, 2014 and December 31, 2013, but for the year ended December 31, 2012, we recorded an impairment of $17.4 million. During our 2014 annual impairment review, we determined the fair value of the trademarks and trade names exceeded its carrying value by approximately 4% resulting in no impairment to Pullmantur's trademarks and tradenames.

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 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 will likely be required.

Finite-life intangible assets and related accumulated amortization are immaterial to our 2014, 2013, and 2012 consolidated financial statements.