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Intangible Assets and Goodwill | 12 Months Ended
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Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Pursuant to the applicable accounting pronouncements, we were required to evaluate the recoverability of our indefinite lived intangible assets during the first quarter of 2020 as a result of the effects of the COVID-19 pandemic on our operations and market value. Based on this evaluation, we determined the carrying value of the goodwill related to our franchised dealership reporting unit was greater than the fair value of the reporting unit. Accordingly, we recorded a non-cash goodwill impairment charge of $268.0 million and a corresponding income tax benefit of $51.3 million to reduce the carrying value to fair value as of March 31, 2020. We utilized the DCF method, using unobservable inputs (Level 3) to estimate Sonic’s enterprise value as of March 31, 2020 and reconciled the discounted cash flows to Sonic's market capitalization, using quoted market price inputs (Level 1). The significant assumptions in our DCF model include projected earnings, a discount rate (and estimates in the discount rate inputs), control premium factors and residual growth rates. Based on the improvement in our business operations and market value during the second, third and fourth quarters of 2020, our future forecast expectations, and the results of our qualitative test, it was determined to be more likely than not that the fair value of our reporting units exceeded the carrying value. The changes in the carrying amount of franchise assets and goodwill for 2020 and 2019 were as follows:
| Franchise Assets |  | Net Goodwill |
| (In thousands) |
Balance at December 31, 2018 | $ | 65,700 |  |  | $ | 509,592 |  | (1)
Reductions from dispositions | (1,400) |  |  | (33,801) |  |
Balance at December 31, 2019 | $ | 64,300 |  |  | $ | 475,791 |  | (1)
Additions through current year acquisitions | — |  |  | 6,680 |  |
Reductions from dispositions | — |  |  | (494) |  |
Reductions from impairment | — |  |  | (268,000) |  |
Balance at December 31, 2020 | $ | 64,300 |  |  | $ | 213,977 |  | (2)
(1)Net of accumulated impairment losses of $796.7 million. (2)Net of accumulated impairment losses of $1.1 billion. Other Intangible Assets Other intangible assets consist of franchise assets on the accompanying consolidated balance sheets. Pursuant to applicable accounting pronouncements, we evaluate our franchise assets for impairment annually (as of October 1 of each year) or more frequently if indications of impairment exist. There were no franchise asset impairment charges for 2020 or 2019.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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