ASSET IMPAIRMENTS

The Company performs its annual impairment assessment of the carrying value of its goodwill and intangible franchise rights as of October 31st of each year. The Company also performs interim reviews of all of its long-lived and indefinite-lived assets for impairment when evidence exists that the carrying value may not be recoverable.

In the Company’s 2018 annual goodwill assessment, the fair value of each of its reporting units exceeded the carrying value of its net assets (step one of the goodwill impairment test). As a result, the Company was not required to conduct the second step of the impairment test for goodwill. If, in future periods, the Company determines that the carrying amount of its net assets exceeds the respective fair value of its goodwill for any or all of its reporting units, the Company could be required to recognize a material non-cash asset impairment charge to the goodwill associated with the reporting unit(s).

In the Company’s 2018 interim and annual impairment assessments of long-lived assets and intangible franchise rights, the Company determined that the carrying values of certain of its intangible franchise rights were greater than the fair value, and as a result, recognized $38.7 million in aggregate pre-tax non-cash asset impairment charges. In addition, the Company determined that the carrying value of various other long-lived assets were no longer recoverable, and recognized $5.1 million in pre-tax non-cash asset impairment charges, all of which are reflected in Asset impairments in the Consolidated Statements of Operations.

In the Company’s 2017 annual goodwill assessment, the fair value of each of its reporting units exceeded the carrying value of its net assets (step one of the goodwill impairment test). As a result, the Company was not required to conduct the second step of the impairment test for goodwill. In the Company’s 2017 interim and annual impairment assessments of long-lived assets and intangible franchise rights, the Company recorded the following non-cash asset impairment charges, all of which are reflected in Asset impairments within the Consolidated Statements of Operations:


•	The Company determined that the carrying values of certain of its intangible franchise rights were greater than the fair value and, as a result, recognized $19.3 million in aggregate pre-tax non-cash asset impairment charges during the third and fourth quarters of 2017.


•	In addition, the Company determined that the carrying value of various other long-term assets was no longer recoverable, and recognized $0.2 million in pre-tax non-cash asset impairment charges.

In the Company’s 2016 annual goodwill assessment, the fair value of each of its reporting units exceeded the carrying value of its net assets (step one of the goodwill impairment test). As a result, the Company was not required to conduct the second step of the impairment test for goodwill. During 2016, the Company also completed other impairment assessments on an annual and interim basis, as applicable, and recorded the following non-cash asset impairment charges, all of which are reflected in asset impairments in the accompanying Consolidated Statements of Operations:


•	The Company determined that the carrying values of certain of its intangible franchise rights were greater than the fair value and, as a result, recognized a $30.0 million pre-tax non-cash asset impairment charge.


•	In addition, the Company determined that the carrying amounts of various real estate holdings and other long-lived assets were no longer fully recoverable, and recognized $2.8 million in pre-tax non-cash asset impairment charges.