Intangible Assets

9 Months Ended

Sep. 30, 2013

NOTE C — INTANGIBLE ASSETS

Intangible assets consist of the following (in thousands):


	September 30, 2013							December 31, 2012
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net

Goodwill	$	5,085				$	5,085	$	5,085				$	5,085
Indefinite-lived intangible assets:
Trade names		18,364					18,364		18,364					18,364

Finite-lived intangible assets:
Licenses		15,847		(7,437	)		8,410		15,847		(7,096	)		8,751
Trade names		10,056		(2,458	)		7,598		10,056		(1,800	)		8,256
Customer relationships		18,406		(2,405	)		16,001		18,406		(1,409	)		16,997
Patents		584		(220	)		364		584		(195	)		389

Total	$	68,342	$	(12,520	)	$	55,822	$	68,342	$	(10,500	)	$	57,842

The Company performed its 2013 annual impairment test for its indefinite-lived intangible assets as of October 1, 2013. The test, which is required to be performed annually, involved the assessment of the fair market value of the Company’s indefinite-lived intangible assets based on Level 2 observable inputs, using a discounted cash flow approach, assuming a discount rate of 12.5%-14.0% and an average annual growth rate of 2.0%-3.5%. The result of the assessment of the Company’s indefinite-lived intangibles indicated that the fair values exceeded the carrying values as of October 1, 2013. In addition, the Company assessed the carrying value of its goodwill and determined based on qualitative factors that no impairment existed.

In the third quarter of 2012, the Company recorded an impairment charge of $1.1 million in its statement of operations which reduced the book value of its Elements^® trade name as of September 30, 2012.