Consolidating Condensed Financial Information (Tables)

6 Months Ended

Jun. 30, 2011

Consolidating Condensed Financial Information (Tables) [Abstract]

CONSOLIDATING CONDENSED BALANCE SHEET

CONDENSED CONSOLIDATING BALANCE SHEET
June 30, 2011

						Penske
	Total					Automotive		Guarantor		Non-Guarantor
	Company		Eliminations			Group		Subsidiaries		Subsidiaries
	(In thousands)
Cash and cash equivalents	$	3,346	$	—		$	—	$	1,455	$	1,891
Accounts receivable, net		365,794		(287,636	)		287,635		191,091		174,704
Inventories		1,456,409		—			—		784,818		671,591
Other current assets		91,772		—			3,529		40,711		47,532
Assets held for sale		56,826		—			—		56,826		—
Total current assets		1,974,147		(287,636	)		291,164		1,074,901		895,718
Property and equipment, net		776,386		—			4,941		475,265		296,180
Intangible assets		1,032,914		—			—		578,196		454,718
Equity method investments		288,028		—			232,836		—		55,192
Other long-term assets		15,404		(1,206,290	)		1,214,041		6,024		1,629
Total assets	$	4,086,879	$	(1,493,926	)	$	1,742,982	$	2,134,386	$	1,703,437
Floor plan notes payable	$	854,224	$	—		$	—	$	428,753	$	425,471
Floor plan notes payable — non-trade		562,906		—			45,200		265,768		251,938
Accounts payable		215,923		—			2,440		76,059		137,424
Accrued expenses		232,431		(287,636	)		2,787		134,202		383,078
Current portion of long-term debt		10,285		—			—		4,366		5,919
Liabilities held for sale		52,480		—			—		52,480		—
Total current liabilities		1,928,249		(287,636	)		50,427		961,628		1,203,830
Long-term debt		706,522		(40,311	)		572,324		53,016		121,493
Deferred tax liabilities		169,993		—			—		156,787		13,206
Other long-term liabilities		161,884		—			—		115,452		46,432
Total liabilities		2,966,648		(327,947	)		622,751		1,286,883		1,384,961
Total equity		1,120,231		(1,165,979	)		1,120,231		847,503		318,476
Total liabilities and equity	$	4,086,879	$	(1,493,926	)	$	1,742,982	$	2,134,386	$	1,703,437

CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2010

						Penske
	Total					Automotive		Guarantor		Non-Guarantor
	Company		Eliminations			Group		Subsidiaries		Subsidiaries
	(In thousands)
Cash and cash equivalents	$	17,868	$	—		$	—	$	15,497	$	2,371
Accounts receivable, net		383,675		(269,021	)		269,021		228,274		155,401
Inventories		1,453,546		—			—		878,571		574,975
Other current assets		68,457		—			1,127		32,371		34,959
Assets held for sale		110,485		—			—		110,485		—
Total current assets		2,034,031		(269,021	)		270,148		1,265,198		767,706
Property and equipment, net		720,834		—			4,957		448,116		267,761
Intangible assets		1,011,889		—			—		489,301		522,588
Equity method investments		288,406		—			234,214		—		54,192
Other long-term assets		14,672		(1,212,538	)		1,222,168		3,088		1,954
Total assets	$	4,069,832	$	(1,481,559	)	$	1,731,487	$	2,205,703	$	1,614,201
Floor plan notes payable	$	922,295	$	—		$	—	$	570,282	$	352,013
Floor plan notes payable — non-trade		492,595		—			25,000		288,274		179,321
Accounts payable		253,424		—			2,186		85,926		165,312
Accrued expenses		202,644		(269,021	)		564		95,970		375,131
Current portion of long-term debt		10,593		—			—		1,264		9,329
Liabilities held for sale		79,455		—			—		79,455		—
Total current liabilities		1,961,006		(269,021	)		27,750		1,121,171		1,081,106
Long-term debt		769,285		(77,593	)		657,884		49,689		139,305
Deferred tax liabilities		178,406		—			—		165,666		12,740
Other long-term liabilities		115,282		—			—		99,238		16,044
Total liabilities		3,023,979		(346,614	)		685,634		1,435,764		1,249,195
Total equity		1,045,853		(1,134,945	)		1,045,853		769,939		365,006
Total liabilities and equity	$	4,069,832	$	(1,481,559	)	$	1,731,487	$	2,205,703	$	1,614,201

CONSOLIDATING CONDENSED STATEMENT OF INCOME

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Three Months Ended June 30, 2011

							Penske
	Total						Automotive			Guarantor			Non-Guarantor
	Company			Eliminations			Group			Subsidiaries			Subsidiaries
	(In thousands)
Revenues	$	2,888,420		$	—		$	—		$	1,659,489		$	1,228,931
Cost of sales		2,424,780			—			—			1,372,419			1,052,361
Gross profit		463,640			—			—			287,070			176,570
Selling, general and administrative expenses		380,350			—			4,790			232,097			143,463
Depreciation		12,093			—			257			6,538			5,298
Operating income (loss)		71,197			—			(5,047	)		48,435			27,809
Floor plan interest expense		(7,113	)		—			(329	)		(3,458	)		(3,326	)
Other interest expense		(10,575	)		—			(5,818	)		(638	)		(4,119	)
Debt discount amortization		—			—			—			—			—
Equity in earnings of affiliates		7,882			—			6,121			—			1,761
Equity in earnings of subsidiaries		—			(65,965	)		65,965			—			—
Income (loss) from continuing operations before income taxes		61,391			(65,965	)		60,892			44,339			22,125
Income taxes		(20,996	)		22,745			(20,996	)		(16,296	)		(6,449	)
Income (loss) from continuing operations		40,395			(43,220	)		39,896			28,043			15,676
(Loss) income from discontinued operations, net of tax		(336	)		336			(336	)		(336	)		—
Net income (loss)		40,059			(42,884	)		39,560			27,707			15,676
Less: Income attributable to non- controlling interests		499			—			—			—			499
Net income (loss) attributable to Penske Automotive Group common stockholders	$	39,560		$	(42,884	)	$	39,560		$	27,707		$	15,177

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Three Months Ended June 30, 2010

							Penske
	Total						Automotive			Guarantor			Non-Guarantor
	Company			Eliminations			Group			Subsidiaries			Subsidiaries
	(In thousands)
Revenues	$	2,614,602		$	—		$	—		$	1,529,401		$	1,085,201
Cost of sales		2,197,796			—			—			1,272,432			925,364
Gross profit		416,806			—			—			256,969			159,837
Selling, general and administrative expenses		339,676			—			3,497			209,910			126,269
Depreciation		11,516			—			300			6,446			4,770
Operating income (loss)		65,614			—			(3,797	)		40,613			28,798
Floor plan interest expense		(7,983	)		—			—			(5,829	)		(2,154	)
Other interest expense		(12,542	)		—			(8,343	)		(33	)		(4,166	)
Debt discount amortization		(2,428	)		—			(2,428	)		—			—
Equity in earnings of affiliates		4,784			—			3,937			—			847
Gain on debt repurchase		422			—			422			—			—
Equity in earnings of subsidiaries		—			(57,833	)		57,833			—			—
Income (loss) from continuing operations before income taxes		47,867			(57,833	)		47,624			34,751			23,325
Income taxes		(16,628	)		20,192			(16,628	)		(13,554	)		(6,638	)
Income (loss) from continuing operations		31,239			(37,641	)		30,996			21,197			16,687
(Loss) income from discontinued operations, net of tax		(1,555	)		1,555			(1,555	)		(1,555	)		—
Net income (loss)		29,684			(36,086	)		29,441			19,642			16,687
Less: Income attributable to non- controlling interests		243			—			—			—			243
Net income (loss) attributable to Penske Automotive Group common stockholders	$	29,441		$	(36,086	)	$	29,441		$	19,642		$	16,444

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Six Months Ended June 30, 2011

							Penske
	Total						Automotive			Guarantor			Non-Guarantor
	Company			Eliminations			Group			Subsidiaries			Subsidiaries
	(In thousands)
Revenues	$	5,683,907		$	—		$	—		$	3,227,865		$	2,456,042
Cost of sales		4,775,190			—			—			2,678,525			2,096,665
Gross profit		908,717			—			—			549,340			359,377
Selling, general and administrative expenses		738,462			—			9,739			446,030			282,693
Depreciation		24,031			—			542			12,893			10,596
Operating income (loss)		146,224			—			(10,281	)		90,417			66,088
Floor plan interest expense		(14,131	)		—			(462	)		(7,370	)		(6,299	)
Other interest expense		(21,976	)		—			(12,234	)		(1,249	)		(8,493	)
Debt discount amortization		(1,718	)		—			(1,718	)		—			—
Equity in earnings of affiliates		7,904			—			7,352			—			552
Equity in earnings of subsidiaries		—			(133,077	)		133,077			—			—
Income (loss) from continuing operations before income taxes		116,303			(133,077	)		115,734			81,798			51,848
Income taxes		(37,784	)		43,446			(37,784	)		(28,714	)		(14,732	)
Income (loss) from continuing operations		78,519			(89,631	)		77,950			53,084			37,116
(Loss) income from discontinued operations, net of tax		(4,463	)		4,463			(4,463	)		(4,463	)		—
Net income (loss)		74,056			(85,168	)		73,487			48,621			37,116
Less: Income attributable to non- controlling interests		569			—			—			—			569
Net income (loss) attributable to Penske Automotive Group common stockholders	$	73,487		$	(85,168	)	$	73,487		$	48,621		$	36,547

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Six Months Ended June 30, 2010

							Penske
	Total						Automotive			Guarantor			Non-Guarantor
	Company			Eliminations			Group			Subsidiaries			Subsidiaries
	(In thousands)
Revenues	$	5,038,789		$	—		$	—		$	2,856,374		$	2,182,415
Cost of sales		4,221,931			—			—			2,367,531			1,854,400
Gross profit		816,858			—			—			488,843			328,015
Selling, general and administrative expenses		666,039			—			8,075			403,466			254,498
Depreciation		23,374			—			590			12,890			9,894
Operating income (loss)		127,445			—			(8,665	)		72,487			63,623
Floor plan interest expense		(16,125	)		—			—			(11,511	)		(4,614	)
Other interest expense		(25,262	)		—			(16,390	)		(589	)		(8,283	)
Debt discount amortization		(5,343	)		—			(5,343	)		—			—
Equity in earnings of affiliates		4,355			—			4,283			—			72
Gain on debt repurchase		1,027			—			1,027			—			—
Equity in earnings of subsidiaries		—			(110,964	)		110,964			—			—
Income (loss) from continuing operations before income taxes		86,097			(110,964	)		85,876			60,387			50,798
Income taxes		(30,878	)		39,899			(30,878	)		(25,754	)		(14,145	)
Income (loss) from continuing operations		55,219			(71,065	)		54,998			34,633			36,653
(Loss) income from discontinued operations, net of tax		(5,203	)		5,203			(5,203	)		(5,203	)		—
Net income (loss)		50,016			(65,862	)		49,795			29,430			36,653
Less: Income attributable to non- controlling interests		221			—			—			—			221
Net income (loss) attributable to Penske Automotive Group common stockholders	$	49,795		$	(65,862	)	$	49,795		$	29,430		$	36,432

CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Six Months Ended June 30, 2011

				Penske
	Total			Automotive			Guarantor			Non-Guarantor
	Company			Group			Subsidiaries			Subsidiaries
	(In thousands)
Net cash from continuing operating activities	$	43,990		$	84,594		$	5,591		$	(46,195	)
Investing activities:
Purchase of equipment and improvements		(51,784	)		(1,308	)		(27,754	)		(22,722	)
Dealership acquisitions, net		(14,011	)		—			(12,331	)		(1,680	)
Other		2,865			—			—			2,865
Net cash from continuing investing activities		(62,930	)		(1,308	)		(40,085	)		(21,537	)
Financing activities:
Repurchase of 3.5% senior subordinated convertible notes		(87,278	)		(87,278	)		—			—
Net borrowings (repayments) of other long-term debt		15,372			—			23,215			(7,843	)
Net borrowings (repayments) of floor plan notes payable — non-trade		70,311			20,200			(30,056	)		80,167
Proceeds from exercises of options, including excess tax benefit		2,698			2,698			—			—
Repurchases of common stock		(12,413	)		(12,413	)		—			—
Dividends		(6,493	)		(6,493	)		—			—
Distributions from (to) parent		—			—			4,245			(4,245	)
Net cash from continuing financing activities		(17,803	)		(83,286	)		(2,596	)		68,079
Net cash from discontinued operations		22,221			—			22,221			—
Net change in cash and cash equivalents		(14,522	)		—			(14,869	)		347
Cash and cash equivalents, beginning of period		17,868			—			16,324			1,544
Cash and cash equivalents, end of period	$	3,346		$	—		$	1,455		$	1,891

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Six Months Ended June 30, 2010

				Penske
	Total			Automotive			Guarantor			Non-Guarantor
	Company			Group			Subsidiaries			Subsidiaries
	(In thousands)
Net cash from continuing operating activities	$	57,526		$	55,493		$	(35,703	)	$	37,736
Investing activities:
Purchase of equipment and improvements		(35,989	)		—			(26,176	)		(9,813	)
Dealership acquisitions, net		(9,362	)		—			(9,362	)		—
Other		—			—			83			(83	)
Net cash from continuing investing activities		(45,351	)		—			(35,455	)		(9,896	)
Financing activities:
Repurchase of 3.5% senior subordinated convertible notes		(113,604	)		(113,604	)		—			—
Net borrowings (repayments) of other long-term debt		18,503			28,000			7,739			(17,236	)
Net borrowings (repayments) of floor plan notes payable — non-trade		73,592			29,900			51,354			(7,662	)
Proceeds from exercises of options, including excess tax benefit		211			211			—			—
Distributions from (to) parent		—			—			473			(473	)
Net cash from continuing financing activities		(21,298	)		(55,493	)		59,566			(25,371	)
Net cash from discontinued operations		12,717			—			12,717			—
Net change in cash and cash equivalents		3,594			—			1,125			2,469
Cash and cash equivalents, beginning of period		14,584			—			12,929			1,655
Cash and cash equivalents, end of period	$	18,178		$	—		$	14,054		$	4,124