Consolidating Condensed Financial Information (Tables)

9 Months Ended

Sep. 30, 2011

Consolidating Condensed Financial Information [Abstract]

CONSOLIDATING CONDENSED BALANCE SHEET

CONDENSED CONSOLIDATING BALANCE SHEET
September 30, 2011

						Penske				Non-
	Total					Automotive		Guarantor		Guarantor
	Company		Eliminations			Group		Subsidiaries		Subsidiaries
	(In thousands)
Cash and cash equivalents	$	7,735	$	—		$	—	$	6,156	$	1,579
Accounts receivable, net		385,137		(297,782	)		297,782		186,608		198,529
Inventories		1,481,629		—			—		805,587		676,042
Other current assets		88,676		—			2,141		39,914		46,621
Assets held for sale		54,168		—			—		54,168		—
Total current assets		2,017,345		(297,782	)		299,923		1,092,433		922,771
Property and equipment, net		821,421		—			5,134		518,945		297,342
Intangible assets		1,148,247		—			—		707,451		440,796
Equity method investments		293,819		—			241,598		—		52,221
Other long-term assets		14,637		(1,341,834	)		1,349,226		5,719		1,526
Total assets	$	4,295,469	$	(1,639,616	)	$	1,895,881	$	2,324,548	$	1,714,656
Floor plan notes payable	$	902,163	$	—		$	—	$	446,364	$	455,799
Floor plan notes payable — non-trade		597,982		—			89,008		261,497		247,477
Accounts payable		226,709		—			1,761		85,387		139,561
Accrued expenses		247,185		(297,782	)		370		152,696		391,901
Current portion of long-term debt		9,642		—			—		5,161		4,481
Liabilities held for sale		34,464		—			—		34,464		—
Total current liabilities		2,018,145		(297,782	)		91,139		985,569		1,239,219
Long-term debt		841,927		(37,810	)		692,324		77,571		109,842
Deferred tax liabilities		183,708		—			—		163,025		20,683
Other long-term liabilities		139,271		—			—		92,207		47,064
Total liabilities		3,183,051		(335,592	)		783,463		1,318,372		1,416,808
Total equity		1,112,418		(1,304,024	)		1,112,418		1,006,176		297,848
Total liabilities and equity	$	4,295,469	$	(1,639,616	)	$	1,895,881	$	2,324,548	$	1,714,656

CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2010

						Penske				Non-
	Total					Automotive		Guarantor		Guarantor
	Company		Eliminations			Group		Subsidiaries		Subsidiaries
	(In thousands)
Cash and cash equivalents	$	17,808	$	—		$	—	$	15,437	$	2,371
Accounts receivable, net		383,379		(269,021	)		269,021		227,978		155,401
Inventories		1,449,157		—			—		874,182		574,975
Other current assets		68,355		—			1,127		32,269		34,959
Assets held for sale		117,018		—			—		117,018		—
Total current assets		2,035,717		(269,021	)		270,148		1,266,884		767,706
Property and equipment, net		719,762		—			4,957		447,044		267,761
Intangible assets		1,011,275		—			—		488,687		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	$	918,628	$	—		$	—	$	566,615	$	352,013
Floor plan notes payable — non-trade		491,889		—			25,000		287,568		179,321
Accounts payable		253,277		—			2,186		85,779		165,312
Accrued expenses		202,480		(269,021	)		564		95,806		375,131
Current portion of long-term debt		10,593		—			—		1,264		9,329
Liabilities held for sale		84,139		—			—		84,139		—
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 September 30, 2011

							Penske						Non-
	Total						Automotive			Guarantor			Guarantor
	Company			Eliminations			Group			Subsidiaries			Subsidiaries
	(In thousands)
Revenues	$	2,951,046		$	—		$	—		$	1,715,582		$	1,235,464
Cost of sales		2,483,939			—			—			1,427,489			1,056,450
Gross profit		467,107			—			—			288,093			179,014
Selling, general and administrative expenses		375,432			—			4,381			226,720			144,331
Depreciation		12,590			—			471			6,687			5,432
Operating income (loss)		79,085			—			(4,852	)		54,686			29,251
Floor plan interest expense		(7,020	)		—			(449	)		(3,258	)		(3,313	)
Other interest expense		(11,288	)		—			(6,347	)		(988	)		(3,953	)
Debt discount amortization		—			—			—			—			—
Equity in earnings of affiliates		9,623			—			7,359			825			1,439
Equity in earnings of subsidiaries		—			(74,351	)		74,351			—			—
Income (loss) from continuing operations before income taxes		70,400			(74,351	)		70,062			51,265			23,424
Income taxes		(13,355	)		14,173			(13,355	)		(7,439	)		(6,734	)
Income (loss) from continuing operations		57,045			(60,178	)		56,707			43,826			16,690
(Loss) income from discontinued operations, net of tax		(1,000	)		1,000			(1,000	)		(1,000	)		—
Net income (loss)		56,045			(59,178	)		55,707			42,826			16,690
Less: Income attributable to non- controlling interests		338			—			—			—			338
Net income (loss) attributable to Penske Automotive Group common stockholders	$	55,707		$	(59,178	)	$	55,707		$	42,826		$	16,352

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

							Penske						Non-
	Total						Automotive			Guarantor			Guarantor
	Company			Eliminations			Group			Subsidiaries			Subsidiaries
	(In thousands)
Revenues	$	2,669,773		$	—		$	—		$	1,518,861		$	1,150,912
Cost of sales		2,251,604			—			—			1,266,293			985,311
Gross profit		418,169			—			—			252,568			165,601
Selling, general and administrative expenses		339,120			—			4,547			202,676			131,897
Depreciation		11,820			—			241			6,490			5,089
Operating income (loss)		67,229			—			(4,788	)		43,402			28,615
Floor plan interest expense		(8,805	)		—			(380	)		(5,975	)		(2,450	)
Other interest expense		(12,229	)		—			(7,471	)		(558	)		(4,200	)
Debt discount amortization		(1,647	)		—			(1,647	)		—			—
Equity in earnings of affiliates		7,370			—			6,441			—			929
Gain on debt repurchase		607			—			607			—			—
Equity in earnings of subsidiaries		—			(59,480	)		59,480			—			—
Income (loss) from continuing operations before income taxes		52,525			(59,480	)		52,242			36,869			22,894
Income taxes		(17,428	)		19,843			(17,428	)		(13,221	)		(6,622	)
Income (loss) from continuing operations		35,097			(39,637	)		34,814			23,648			16,272
(Loss) income from discontinued operations, net of tax		(4,837	)		4,837			(4,837	)		(4,837	)		—
Net income (loss)		30,260			(34,800	)		29,977			18,811			16,272
Less: Income attributable to non- controlling interests		283			—			—			—			283
Net income (loss) attributable to Penske Automotive Group common stockholders	$	29,977		$	(34,800	)	$	29,977		$	18,811		$	15,989

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Nine Months Ended September 30, 2011

							Penske						Non-
	Total						Automotive			Guarantor			Guarantor
	Company			Eliminations			Group			Subsidiaries			Subsidiaries
	(In thousands)
Revenues	$	8,623,710		$	—		$	—		$	4,932,204		$	3,691,506
Cost of sales		7,249,638			—			—			4,096,523			3,153,115
Gross profit		1,374,072			—			—			835,681			538,391
Selling, general and administrative expenses		1,111,812			—			14,120			670,668			427,024
Depreciation		36,578			—			1,013			19,537			16,028
Operating income (loss)		225,682			—			(15,133	)		145,476			95,339
Floor plan interest expense		(21,131	)		—			(911	)		(10,608	)		(9,612	)
Other interest expense		(33,264	)		—			(18,581	)		(2,237	)		(12,446	)
Debt discount amortization		(1,718	)		—			(1,718	)		—			—
Equity in earnings of affiliates		17,527			—			14,711			825			1,991
Equity in earnings of subsidiaries		—			(207,667	)		207,667			—			—
Income (loss) from continuing operations before income taxes		187,096			(207,667	)		186,035			133,456			75,272
Income taxes		(51,293	)		57,085			(51,139	)		(35,773	)		(21,466	)
Income (loss) from continuing operations		135,803			(150,582	)		134,896			97,683			53,806
(Loss) income from discontinued operations, net of tax		(5,702	)		5,702			(5,702	)		(5,702	)		—
Net income (loss)		130,101			(144,880	)		129,194			91,981			53,806
Less: Income attributable to non- controlling interests		907			—			—			—			907
Net income (loss) attributable to Penske Automotive Group common stockholders	$	129,194		$	(144,880	)	$	129,194		$	91,981		$	52,899

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Nine Months Ended September 30, 2010

							Penske						Non-
	Total						Automotive			Guarantor			Guarantor
	Company			Eliminations			Group			Subsidiaries			Subsidiaries
	(In thousands)
Revenues	$	7,697,770		$	—		$	—		$	4,364,444		$	3,333,326
Cost of sales		6,464,394			—			—			3,624,683			2,839,711
Gross profit		1,233,376			—			—			739,761			493,615
Selling, general and administrative expenses		1,003,151			—			12,634			604,122			386,395
Depreciation		35,123			—			831			19,309			14,983
Operating income (loss)		195,102			—			(13,465	)		116,330			92,237
Floor plan interest expense		(24,907	)		—			(380	)		(17,463	)		(7,064	)
Other interest expense		(37,491	)		—			(23,861	)		(1,147	)		(12,483	)
Debt discount amortization		(6,990	)		—			(6,990	)		—			—
Equity in earnings of affiliates		11,725			—			10,724			—			1,001
Gain on debt repurchase		1,634			—			1,634			—			—
Equity in earnings of subsidiaries		—			(170,907	)		170,907			—			—
Income (loss) from continuing operations before income taxes		139,073			(170,907	)		138,569			97,720			73,691
Income taxes		(48,485	)		59,800			(48,485	)		(39,033	)		(20,767	)
Income (loss) from continuing operations		90,588			(111,107	)		90,084			58,687			52,924
(Loss) income from discontinued operations, net of tax		(10,312	)		10,312			(10,312	)		(10,312	)		—
Net income (loss)		80,276			(100,795	)		79,772			48,375			52,924
Less: Income attributable to non- controlling interests		504			—			—			—			504
Net income (loss) attributable to Penske Automotive Group common stockholders	$	79,772		$	(100,795	)	$	79,772		$	48,375		$	52,420

CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Nine Months Ended September 30, 2011

				Penske						Non-
	Total			Automotive			Guarantor			Guarantor
	Company			Group			Subsidiaries			Subsidiaries
	(In thousands)
Net cash from continuing operating activities	$	175,800		$	(39,647	)	$	229,486		$	(14,039	)
Investing activities:
Purchase of equipment and improvements		(80,269	)		(1,972	)		(44,779	)		(33,518	)
Dealership acquisitions, net		(232,106	)		—			(230,426	)		(1,680	)
Other		2,865			—			—			2,865
Net cash from continuing investing activities		(309,510	)		(1,972	)		(275,205	)		(32,333	)
Financing activities:
Repurchase of 3.5% senior subordinated convertible notes		(87,278	)		(87,278	)		—			—
Net borrowings (repayments) of other long-term debt		152,461			120,000			57,015			(24,554	)
Net borrowings (repayments) of floor plan notes payable — non-trade		106,092			64,008			(33,622	)		75,706
Proceeds from exercises of options, including excess tax benefit		3,018			3,018			—			—
Repurchases of common stock		(44,263	)		(44,263	)		—			—
Dividends		(13,866	)		(13,866	)		—			—
Distributions from (to) parent		—			—			5,572			(5,572	)
Net cash from continuing financing activities		116,164			41,619			28,965			45,580
Net cash from discontinued operations		7,473			—			7,473			—
Net change in cash and cash equivalents		(10,073	)		—			(9,281	)		(792	)
Cash and cash equivalents, beginning of period		17,808			—			15,437			2,371
Cash and cash equivalents, end of period	$	7,735		$	—		$	6,156		$	1,579

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Nine Months Ended September 30, 2010

				Penske						Non-
	Total			Automotive			Guarantor			Guarantor
	Company			Group			Subsidiaries			Subsidiaries
	(In thousands)
Net cash from continuing operating activities	$	118,723		$	109,785		$	37,411		$	(28,473	)
Investing activities:
Purchase of equipment and improvements		(56,433	)		367			(38,691	)		(18,109	)
Dealership acquisitions, net		(9,280	)		—			(9,280	)		—
Other		—			—			83			(83	)
Net cash from continuing investing activities		(65,713	)		367			(47,888	)		(18,192	)
Financing activities:
Repurchase of 3.5% senior subordinated convertible notes		(156,604	)		(156,604	)		—			—
Net borrowings (repayments) of other long-term debt		46,395			26,500			(12,520	)		32,415
Net borrowings (repayments) of floor plan notes payable — non-trade		50,656			20,300			15,809			14,547
Proceeds from exercises of options, including excess tax benefit		403			403			—			—
Repurchases of common stock		(751	)		(751	)		—			—
Distributions from (to) parent		—			—			954			(954	)
Net cash from continuing financing activities		(59,901	)		(110,152	)		4,243			46,008
Net cash from discontinued operations		455			—			455			—
Net change in cash and cash equivalents		(6,436	)		—			(5,779	)		(657	)
Cash and cash equivalents, beginning of period		14,489			—			12,834			1,655
Cash and cash equivalents, end of period	$	8,053		$	—		$	7,055		$	998