Equity Method Investees

12 Months Ended

Dec. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

As of December 31, 2023, we had investments in the following companies that are accounted for under the equity method: the Nix Group (50%) operating automotive dealerships in Germany, Barcelona Premium SL (50%) operating automotive dealerships in Spain, and Penske Commercial Leasing Australia (28%).

We also have a 28.9% ownership interest in PTS, a leading provider of transportation and supply chain services. The partnership agreement requires PTS, subject to applicable law and the terms of its credit agreements, to make quarterly distributions to the partners with respect to each fiscal year by no later than 45 days after the end of each of the first three quarters of the year and by April 15 of the following year. PTS' partnership agreement and certain of its debt agreements allow partner distributions only as long as it is not in default under those agreements and the amount it pays does not exceed 50% of its consolidated net income, unless its debt-to-equity ratio is less than 3.0 to 1.0, in which case its distributions may not exceed 80% of its consolidated net income. Our investment in PTS, which is accounted for under the equity method, amounted to $1,725.1 million and $1,590.9 million at December 31, 2023, and 2022, respectively.

The net book value of our equity method investments was $1,774.9 million and $1,636.9 million as of December 31, 2023, and 2022, respectively. We recorded $293.7 million, $494.2 million, and $374.5 million during the years ended December 31, 2023, 2022, and 2021, respectively, on our statements of income under the caption “Equity in earnings of affiliates” related to earnings from our equity method investments. We received $169.9 million, $356.6 million, and $169.7 million of dividends from our equity method investments during the years ended December 31, 2023, 2022, and

2021, respectively. Retained earnings as of December 31, 2023, included undistributed earnings from our equity method investments of $845.5 million.

The combined results of operations and financial position of our equity method investees as of December 31 for each of the years presented are summarized as follows:

Condensed income statement information:


	Year Ended December 31,
	2023		2022		2021
Revenues	$	13,884.1	$	13,587.3	$	11,526.9
Gross profit	2,917.3		3,025.5		2,736.2
Net income	1,008.3		1,701.3		1,272.0

Condensed balance sheet information:


	December 31,
	2023		2022
Current assets	$	2,355.5	$	2,126.5
Noncurrent assets	20,966.4		17,867.9
Total assets	$	23,321.9	$	19,994.4
Current liabilities	$	3,140.9	$	4,110.2
Noncurrent liabilities	15,545.7		11,719.0
Equity	4,635.3		4,165.2
Total liabilities and equity	$	23,321.9	$	19,994.4