Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2012

Condensed Consolidating Financial Information

CONDENSED CONSOLIDATING BALANCE SHEET

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2012

	Total Company		Eliminations			Penske Automotive Group		Guarantor Subsidiaries		Non-Guarantor Subsidiaries
	(In thousands)
Cash and cash equivalents	$	43,753	$	—		$	—	$	36,783	$	6,970
Accounts receivable, net	552,868		(340,917		)	340,917		372,638		180,230
Inventories	1,991,167		—			—		1,197,456		793,711
Other current assets	90,854		—			3,546		55,836		31,472
Assets held for sale	94,441		—			—		59,113		35,328
Total current assets	2,773,083		(340,917		)	344,463		1,721,826		1,047,711
Property and equipment, net	1,023,781		—			4,474		654,248		365,059
Intangible assets	1,258,012		—			—		756,655		501,357
Equity method investments	303,160		—			252,816		—		50,344
Other long-term assets	20,954		(1,527,156		)	1,540,447		5,025		2,638
Total assets	$	5,378,990	$	(1,868,073	)	$	2,142,200	$	3,137,754	$	1,967,109
Floor plan notes payable	$	1,408,363	$	—		$	—	$	917,390	$	490,973
Floor plan notes payable — non-trade	716,621		—			112,085		334,122		270,414
Accounts payable	263,349		—			3,344		123,754		136,251
Accrued expenses	223,574		(340,917		)	450		113,753		450,288
Current portion of long-term debt	19,493		—			—		9,745		9,748
Liabilities held for sale	62,156		—			—		33,163		28,993
Total current liabilities	2,693,556		(340,917		)	115,879		1,531,927		1,386,667
Long-term debt	918,024		(38,692		)	710,000		121,618		125,098
Deferred tax liabilities	287,818		—			—		260,445		27,373
Other long-term liabilities	163,271		—			—		84,108		79,163
Total liabilities	4,062,669		(379,609		)	825,879		1,998,098		1,618,301
Total equity	1,316,321		(1,488,464		)	1,316,321		1,139,656		348,808
Total liabilities and equity	$	5,378,990	$	(1,868,073	)	$	2,142,200	$	3,137,754	$	1,967,109

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2011

	Total Company		Eliminations			Penske Automotive Group		Guarantor Subsidiaries		Non-Guarantor Subsidiaries
	(In thousands)
Cash and cash equivalents	$	27,201	$	—		$	—	$	27,201	$	—
Accounts receivable, net	429,633		(297,782		)	305,386		277,291		144,738
Inventories	1,535,386		—			—		877,032		658,354
Other current assets	72,981		—			2,306		34,584		36,091
Assets held for sale	159,243		—			—		77,850		81,393
Total current assets	2,224,444		(297,782		)	307,692		1,293,958		920,576
Property and equipment, net	839,630		—			6,730		534,607		298,293
Intangible assets	1,123,206		—			—		692,481		430,725
Equity method investments	298,640		—			246,658		—		51,982
Other long-term assets	13,481		(1,369,967		)	1,378,341		3,373		1,734
Total assets	$	4,499,401	$	(1,667,749	)	$	1,939,421	$	2,524,419	$	1,703,310
Floor plan notes payable	$	966,579	$	—		$	—	$	558,325	$	408,254
Floor plan notes payable — non-trade	668,581		—			90,892		322,814		254,875
Accounts payable	214,870		—			1,633		111,373		101,864
Accrued expenses	195,108		(297,782		)	—		97,426		395,464
Current portion of long-term debt	3,414		—			—		3,414		—
Liabilities held for sale	103,001		—			—		37,276		65,725
Total current liabilities	2,151,553		(297,782		)	92,525		1,130,628		1,226,182
Long-term debt	846,777		(38,073		)	697,324		77,060		110,466
Deferred tax liabilities	205,845		—			—		186,291		19,554
Other long-term liabilities	145,654		—			—		91,447		54,207
Total liabilities	3,349,829		(335,855		)	789,849		1,485,426		1,410,409
Total equity	1,149,572		(1,331,894		)	1,149,572		1,038,993		292,901
Total liabilities and equity	$	4,499,401	$	(1,667,749	)	$	1,939,421	$	2,524,419	$	1,703,310

CONDENSED CONSOLIDATING STATEMENT OF INCOME

CONDENSED CONSOLIDATING STATEMENT OF INCOME

Year Ended December 31, 2012

	Total Company			Eliminations			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In thousands)
Revenues	$	13,163,517		$	—		$	—		$	7,891,931		$	5,271,586
Cost of sales	11,150,569			—			—			6,646,738			4,503,831
Gross profit	2,012,948			—			—			1,245,193			767,755
Selling, general, and administrative expenses	1,594,095			—			19,361			963,493			611,241
Depreciation	53,995			—			1,354			29,488			23,153
Operating income (loss)	364,858			—			(20,715		)	252,212			133,361
Floor plan interest expense	(38,797		)	—			(8,572		)	(16,947		)	(13,278		)
Other interest expense	(46,892		)	—			(29,492		)	(3,661		)	(13,739		)
Debt discount amortization	—			—			—			—			—
Equity in earnings of affiliates	27,572			—			23,965			—			3,607
Debt redemption costs	(17,753		)	—			(17,753		)	—			—
Equity in earnings of subsidiaries	—			(339,928		)	339,928			—			—
Income from continuing operations before income taxes	288,988			(339,928		)	287,361			231,604			109,951
Income taxes	(94,330		)	111,586			(94,330		)	(87,804		)	(23,782		)
Income from continuing operations	194,658			(228,342		)	193,031			143,800			86,169
Loss from discontinued operations, net of tax	(7,491		)	7,491			(7,491		)	6			(7,497		)
Net income	187,167			(220,851		)	185,540			143,806			78,672
Other comprehensive income (loss), net of tax	17,610			(16,620		)	17,610			966			15,654
Comprehensive income	204,777			(237,471		)	203,150			144,772			94,326
Less: Comprehensive income attributable to the non-controlling interests	1,879			(252		)	252			—			1,879
Comprehensive income attributable to Penske Automotive Group common stockholders	$	202,898		$	(237,219	)	$	202,898		$	144,772		$	92,447

CONDENSED CONSOLIDATING STATEMENT OF INCOME

Year Ended December 31, 2011

	Total Company			Eliminations			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In thousands)
Revenues	$	11,127,492		$	—		$	—		$	6,637,084		$	4,490,408
Cost of sales	9,365,670			—			—			5,532,337			3,833,333
Gross profit	1,761,822			—			—			1,104,747			657,075
Selling, general, and administrative expenses	1,419,123			—			18,978			880,319			519,826
Depreciation	47,101			—			1,369			25,745			19,987
Operating income (loss)	295,598			—			(20,347		)	198,683			117,262
Floor plan interest expense	(27,218		)	—			(1,364		)	(13,895		)	(11,959		)
Other interest expense	(44,256		)	—			(25,464		)	(3,276		)	(15,516		)
Debt discount amortization	(1,718		)	—			(1,718		)	—			—
Equity in earnings of affiliates	25,451			—			23,044			—			2,407
Equity in earnings of subsidiaries	—			(272,329		)	272,329			—			—
Income from continuing operations before income taxes	247,857			(272,329		)	246,480			181,512			92,194
Income taxes	(71,690		)	79,208			(71,690		)	(52,780		)	(26,428		)
Income from continuing operations	176,167			(193,121		)	174,790			128,732			65,766
Loss from discontinued operations, net of tax	2,091			(2,091		)	2,091			3,063			(972		)
Net income	178,258			(195,212		)	176,881			131,795			64,794
Other comprehensive income (loss), net of tax	(24,061		)	21,212			(24,061		)	(9,574		)	(11,638		)
Comprehensive income	154,197			(174,000		)	152,820			122,221			53,156
Less: Comprehensive income attributable to non-controlling interests	1,377			—			—			—			1,377
Comprehensive income attributable to Penske Automotive Group common stockholders	$	152,820		$	(174,000	)	$	152,820		$	122,221		$	51,779

CONDENSED CONSOLIDATING STATEMENT OF INCOME

Year Ended December 31, 2010

	Total Company			Eliminations			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In thousands)
Revenues	$	9,943,350		$	—		$	—		$	5,777,494		$	4,165,856
Cost of sales	8,358,079			—			—			4,809,883			3,548,196
Gross profit	1,585,271			—			—			967,611			617,660
Selling, general, and administrative expenses	1,287,315			—			17,182			784,652			485,481
Depreciation	44,523			—			1,116			24,502			18,905
Operating income (loss)	253,433			—			(18,298		)	158,457			113,274
Floor plan interest expense	(32,822		)	—			(576		)	(22,952		)	(9,294		)
Other interest expense	(48,541		)	—			(30,237		)	(2,225		)	(16,079		)
Debt discount amortization	(8,637		)	—			(8,637		)	—			—
Equity in earnings of affiliates	20,569			—			18,367			—			2,202
Gain on debt repurchase	1,634			—			1,634			—			—
Equity in earnings of subsidiaries	—			(222,317		)	222,317			—			—
Income from continuing operations before income taxes	185,636			(222,317		)	184,570			133,280			90,103
Income taxes	(63,441		)	76,404			(63,441		)	(50,744		)	(25,660		)
Income from continuing operations	122,195			(145,913		)	121,129			82,536			64,443
Loss from discontinued operations, net of tax	(12,848		)	12,848			(12,848		)	(14,379		)	1,531
Net income	109,347			(133,065		)	108,281			68,157			65,974
Other comprehensive income (loss), net of tax	(10,722		)	12,986			(10,722		)	5,435			(18,421		)
Comprehensive income	98,625			(120,079		)	97,559			73,592			47,553
Less: Comprehensive income attributable to the non-controlling interests	1,066			—			—			—			1,066
Comprehensive income attributable to Penske Automotive Group common stockholders	$	97,559		$	(120,079	)	$	97,559		$	73,592		$	46,487

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2012

	Total Company			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In thousands)
Net cash from (used in) continuing operating activities	$	327,931		$	45,556		$	155,830		$	126,545
Investing activities:
Purchase of property and equipment	(161,286		)	(1,131		)	(121,503		)	(38,652		)
Proceeds from sale-leaseback transactions	1,584			—			—			1,584
Dealership acquisitions, net	(250,170		)	—			(115,781		)	(134,389		)
Other	8,778			(3,292		)	4,762			7,308
Net cash from (used in) continuing investing activities	(401,094		)	(4,423		)	(232,522		)	(164,149		)
Financing activities:
Issuance of 5.75% senior subordinated notes	550,000			550,000			—			—
Repurchase of 7.75% senior subordinated notes	(390,755		)	(390,755		)	—			—
Repurchase of 3.5% senior subordinated convertible notes	(62,687		)	(62,687		)	—			—
Net borrowings (repayments) of long-term debt	(27,634		)	(99,000		)	50,889			20,477
Net (repayments) borrowings of floor plan notes payable — non-trade	65,329			21,193			23,054			21,082
Repurchase of common stock	(9,829		)	(9,829		)	—			—
Dividends	(41,505		)	(41,505		)	—			—
Payment of deferred financing fees	(8,550		)	(8,550		)	—			—
Distributions from (to) parent	—			—			5,202			(5,202		)
Other	(1,116		)	—			—			(1,116		)
Net cash from (used in) continuing financing activities	73,253			(41,133		)	79,145			35,241
Net cash from discontinued operations	16,462			—			7,129			9,333
Net change in cash and cash equivalents	16,552			—			9,582			6,970
Cash and cash equivalents, beginning of period	27,201			—			27,201			—
Cash and cash equivalents, end of period	$	43,753		$	—		$	36,783		$	6,970

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2011

	Total Company			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In thousands)
Net cash from (used in) continuing operating activities	$	133,268		$	(39,449	)	$	192,351		$	(19,634	)
Investing activities:
Purchase of property and equipment	(131,971		)	(1,280		)	(81,244		)	(49,447		)
Dealership acquisitions, net	(232,106		)	—			(230,426		)	(1,680		)
Other	2,865			—			—			2,865
Net cash from (used in) continuing investing activities	(361,212		)	(1,280		)	(311,670		)	(48,262		)
Financing activities:
Repayment under U.S. credit agreement term loan	(7,000		)	(7,000		)	—			—
Repurchase of 3.5% senior subordinated convertible notes	(87,278		)	(87,278		)	—			—
Net borrowings (repayments) of long-term debt	162,218			132,000			54,494			(24,276		)
Net (repayments) borrowings of floor plan notes payable — non-trade	202,938			65,892			39,571			97,475
Proceeds from exercises of options, including excess tax benefit	3,370			3,370			—			—
Repurchase of common stock	(44,263		)	(44,263		)	—			—
Dividends	(21,992		)	(21,992		)	—			—
Distributions from (to) parent	—			—			6,139			(6,139		)
Net cash from (used in) continuing financing activities	207,993			40,729			100,204			67,060
Net cash from discontinued operations	28,904			—			30,448			(1,544		)
Net change in cash and cash equivalents	8,953			—			11,333			(2,380		)
Cash and cash equivalents, beginning of period	18,248			—			15,868			2,380
Cash and cash equivalents, end of period	$	27,201		$	—		$	27,201		$	—

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2010

	Total Company			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In thousands)
Net cash from (used in) continuing operating activities	$	207,416		$	133,059		$	51,276		$	23,081
Investing activities:
Purchase of property and equipment	(74,900		)	(66		)	(51,026		)	(23,808		)
Dealership acquisitions, net	(22,232		)	—			(22,232		)	—
Other	13,822			13,822			—			—
Net cash from (used in) continuing investing activities	(83,310		)	13,756			(73,258		)	(23,808		)
Financing activities:
Repayment under U.S. credit agreement term loan	(15,000		)	(15,000		)	—			—
Repurchase of 3.5% senior subordinated convertible notes	(156,604		)	(156,604		)	—			—
Net borrowings (repayments) of long-term debt	(14,369		)	—			(13,613		)	(756		)
Net (repayments) borrowings of floor plan notes payable — non-trade	64,036			25,000			36,148			2,888
Proceeds from exercises of options, including excess tax benefit	540			540			—			—
Repurchase of common stock	(751		)	(751		)	—			—
Distributions from (to) parent	—			—			1,365			(1,365		)
Net cash from (used in) continuing financing activities	(122,148		)	(146,815		)	23,900			767
Net cash from discontinued operations	2,151			—			1,409			742
Net change in cash and cash equivalents	4,109			—			3,327			782
Cash and cash equivalents, beginning of period	14,139			—			12,541			1,598
Cash and cash equivalents, end of period	$	18,248		$	—		$	15,868		$	2,380