NOTE D — INTANGIBLE ASSETS

Intangible assets consist of the following (in thousands):


	September 30, 2014							December 31, 2013
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Goodwill	$	18,515	$	—		$	18,515	$	5,085	$	—		$	5,085
Indefinite-lived intangible assets:
Trade names		14,980		—			14,980		18,364		—			18,364
Finite-lived intangible assets:
Licenses		15,847		(7,893	)		7,954		15,847		(7,551	)		8,296
Trade names		22,384		(3,939	)		18,445		10,056		(2,677	)		7,379
Customer relationships		50,641		(5,717	)		44,924		18,406		(2,736	)		15,670
Other		1,202		(380	)		822		584		(229	)		355

Total	$	123,569	$	(17,929	)	$	105,640	$	68,342	$	(13,193	)	$	55,149

A summary of the activities related to the Company’s intangible assets for the nine months ended September 30, 2014 consists of the following (in thousands):


Goodwill and Intangible Assets, December 31, 2013	$	55,149
Impairment of trade names		(3,384	)
Goodwill acquired		13,430
Intangibles acquired		45,181
Amortization		(4,736	)

Goodwill and Intangible Assets, September 30, 2014	$	105,640

The Company performed its annual impairment test for its indefinite-lived trade names as of October 1, 2014. The test involved the assessment of the fair market values of the Company’s indefinite-lived trade names based on Level 3 unobservable inputs, using a relief from royalty approach, assuming a discount rate of 14.0%-15.5% and an average long term growth rate of 2.5%-3%. The result of the impairment assessment of the Company’s indefinite-lived trade names indicated that the carrying values of the Elements^®, and Melannco^® trade names exceeded their fair values as of October 1, 2014.

The Company’s home décor products category has experienced a decline in sales and profit in recent years. The Company believes the most significant factor resulting in the decline was the reduction in retail space allocated to the category which has also contributed to pricing pressure. The Company has been re-branding a portion of the home décor products under the Mikasa^® and Pfaltzgraff^® trade names and more recently through the Bombay^® license. The Company is also taking advantage of promotional sale opportunities, such as flash sale websites and online retailers to offset the effect of a reduction in retail space for this product category and pricing pressures. As a result of these factors, the Company recorded an impairment charge of $3.4 million, related to these brands, in its condensed consolidated statement of operations for the three and nine month periods ended September 30, 2014.