Intangibles

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

The following is a roll-forward of the company’s goodwill accounts by reportable segment (in millions):



	Goodwill
	U.S.			U.K.			Brazil			Total
Balance, December 31, 2018 ⁽¹⁾	$	861.6		$	87.6		$	14.7		$	963.9
Additions through acquisitions	19.3			1.3			—			20.6
Disposals and purchase price allocation adjustments	(1.3		)	—			(0.3		)	(1.6		)
Currency translation	—			(3.0		)	(0.9		)	(3.9		)
Balance, September 30, 2019 ⁽¹⁾	$	879.6		$	85.9		$	13.5		$	979.0

⁽¹⁾Net of accumulated impairments of $97.8 million. There were no impairments to goodwill during the nine months ended September 30, 2019.

The Company evaluates its intangible assets, consisting entirely of indefinite-lived franchise rights and goodwill assets, for impairment annually, or more frequently if events or circumstances indicate possible impairment. The Company performs interim reviews of its intangible assets when evidence exists that the carrying value may not be recoverable. The ongoing uncertainty related to the ultimate resolution of the Referendum of the United Kingdom’s Membership of the European Union

(“E.U.”) advising for the exit of the U.K. from the E.U. (referred to as “Brexit”), continues to generate much uncertainty in the U.K., as well as in global markets. During the three months ended September 30, 2019, as a result of increased uncertainty in the U.K. regarding the outcome and timing of Brexit and the related impact on our U.K. new vehicle business and certain U.S. dealerships identified in our quarterly review, the Company identified circumstances indicating possible impairment of its franchise rights, requiring a quantitative assessment as of August 31, 2019. In estimating fair value, the Company used a direct value method discounted cash flow model, or income approach, specifically the excess earnings method. Significant inputs to the model included an estimated weighted average cost of capital and estimated residual values at the end of the forecasted period, which were unobservable inputs, or level 3 in the fair value hierarchy. Based on the results of the Company's assessment, the Company determined that the fair value of the franchise rights on seven of its U.K. dealerships and one of its U.S. dealerships were below its respective carrying values. This resulted in franchise rights impairment charges of $5.6 million in the U.K segment and $3.0 million in the U.S. segment. The impairment charges were recognized within Asset impairments in the Company's Condensed Consolidated Statements of Operations. There were no events or circumstances indicating possible impairments of goodwill.

During the three months ended September 30, 2019, the Company recorded $3.1 million in additional indefinite-lived intangible franchise rights and $19.3 million in additional goodwill associated with acquisitions in the U.S. and $1.3 million in additional goodwill associated with acquisitions in the U.K. See Note 3, “Acquisitions and Dispositions”, for additional discussion.