Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2013

Condensed Consolidating Financial Information

CONDENSED CONSOLIDATING BALANCE SHEET
March 31, 2013

	Total Company		Eliminations			Penske Automotive Group		Guarantor Subsidiaries		Non-Guarantor Subsidiaries
	(In thousands)
Cash and cash equivalents	$	31,627	$	—		$	—	$	19,102	$	12,525
Accounts receivable, net	527,663		(352,395		)	352,395		293,820		233,843
Inventories	2,023,529		—			—		1,206,377		817,152
Other current assets	89,488		—			3,375		41,500		44,613
Assets held for sale	108,468		—			—		66,477		41,991

Total current assets	2,780,775		(352,395		)	355,770		1,627,276		1,150,124
Property and equipment, net	1,078,627		—			4,353		727,320		346,954
Intangible assets	1,225,591		—			—		763,430		462,161
Equity method investments	311,251		—			254,392		—		56,859
Other long-term assets	18,738		(1,459,958		)	1,473,072		4,086		1,538

Total assets	$	5,414,982	$	(1,812,353	)	$	2,087,587	$	3,122,112	$	2,017,636

Floor plan notes payable	$	1,425,199	$	—		$	—	$	884,419	$	540,780
Floor plan notes payable — non-trade	744,223		—			109,321		317,087		317,815
Accounts payable	287,744		—			2,564		124,555		160,625
Accrued expenses	226,080		(352,395		)	126		127,936		450,413
Current portion of long-term debt	33,053		—			—		23,932		9,121
Liabilities held for sale	81,452		—			—		42,717		38,735

Total current liabilities	2,797,751		(352,395		)	112,011		1,520,646		1,517,489
Long-term debt	858,676		(39,314		)	670,000		156,321		71,669
Deferred tax liabilities	297,851		—			—		272,900		24,951
Other long-term liabilities	155,128		—			—		81,088		74,040

Total liabilities	4,109,406		(391,709		)	782,011		2,030,955		1,688,149
Total equity	1,305,576		(1,420,644		)	1,305,576		1,091,157		329,487

Total liabilities and equity	$	5,414,982	$	(1,812,353	)	$	2,087,587	$	3,122,112	$	2,017,636

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 STATEMENT OF INCOME

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Three Months Ended March 31, 2013

	Total Company			Eliminations			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In thousands)
Revenues	$	3,399,867		$	—		$	—		$	2,017,973		$	1,381,894
Cost of sales	2,866,880			—			—			1,685,065			1,181,815

Gross profit	532,987			—			—			332,908			200,079
Selling, general and administrative expenses	413,312			—			5,158			256,469			151,685
Depreciation	14,449			—			378			8,251			5,820

Operating income (loss)	105,226			—			(5,536		)	68,188			42,574
Floor plan interest expense	(10,211		)	—			(2,287		)	(4,810		)	(3,114		)
Other interest expense	(11,776		)	—			(6,716		)	(1,067		)	(3,993		)
Equity in earnings of affiliates	2,348			—			1,912			—			436
Equity in earnings of subsidiaries	—			(97,859		)	97,859			—			—

Income (loss) from continuing operations before income taxes	85,587			(97,859		)	85,232			62,311			35,903
Income taxes	(28,381		)	32,586			(28,381		)	(24,426		)	(8,160		)

Income (loss) from continuing operations	57,206			(65,273		)	56,851			37,885			27,743
(Loss) income from discontinued operations, net of tax	813			(813		)	813			601			212

Net income (loss)	58,019			(66,086		)	57,664			38,486			27,955
Other comprehensive income (loss), net of tax	(37,119		)	36,784			(37,119		)	1,051			(37,835		)

Comprehensive income	20,900			(29,302		)	20,545			39,537			(9,880		)
Less: Comprehensive income attributable to the non-controlling interests	889			(534		)	534			—			889

Comprehensive income attributable to Penske Automotive Group common stockholders	$	20,011		$	(28,768	)	$	20,011		$	39,537		$	(10,769	)

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Three Months Ended March 31, 2012

	Total Company			Eliminations			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In thousands)
Revenues	$	3,156,390		$	—		$	—		$	1,806,894		$	1,349,496
Cost of sales	2,662,531			—			—			1,514,572			1,147,959

Gross profit	493,859			—			—			292,322			201,537
Selling, general and administrative expenses	386,705			—			4,595			234,721			147,389
Depreciation	12,950			—			362			6,958			5,630

Operating income (loss)	94,204			—			(4,957		)	50,643			48,518
Floor plan interest expense	(9,493		)	—			(2,198		)	(3,723		)	(3,572		)
Other interest expense	(12,131		)	—			(7,563		)	(910		)	(3,658		)
Equity in earnings of affiliates	4,410			—			3,760			—			650
Equity in earnings of subsidiaries	—			(87,760		)	87,760			—			—

Income (loss) from continuing operations before income taxes	76,990			(87,760		)	76,802			46,010			41,938
Income taxes	(26,908		)	30,742			(26,908		)	(20,635		)	(10,107		)

Income (loss) from continuing operations	50,082			(57,018		)	49,894			25,375			31,831
(Loss) income from discontinued operations, net of tax	(3,076		)	3,076			(3,076		)	(1,741		)	(1,335		)

Net income (loss)	47,006			(53,942		)	46,818			23,634			30,496
Other comprehensive income (loss), net of tax	10,701			(9,692		)	10,701			(234		)	9,926

Comprehensive income	57,707			(63,634		)	57,519			23,400			40,422
Less: Comprehensive income attributable to non-controlling interests	188			—			—			—			188

Comprehensive income attributable to Penske Automotive Group common stockholders	$	57,519		$	(63,634	)	$	57,519		$	23,400		$	40,234

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Three Months Ended March 31, 2013

	Total Company			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In thousands)
Net cash from continuing operating activities	$	103,075		$	68,356		$	28,962		$	5,757

Investing activities:
Purchase of equipment and improvements	(68,398		)	(257		)	(58,038		)	(10,103		)
Dealership acquisitions, net	(27,180		)	—			(27,180		)	—
Other	5,744			—			—			5,744

Net cash from continuing investing activities	(89,834		)	(257		)	(85,218		)	(4,359		)

Financing activities:
Net borrowings (repayments) of long-term debt	(39,589		)	(39,999		)	52,192			(51,782		)
Net borrowings (repayments) of floor plan notes payable — non-trade	33,477			(2,764		)	(17,034		)	53,275
Repurchase of common stock	(12,680		)	(12,680		)	—			—
Dividends	(12,656		)	(12,656		)	—			—
Distributions from (to) parent	—			—			415			(415		)

Net cash from continuing financing activities	(31,448		)	(68,099		)	35,573			1,078

Net cash from discontinued operations	6,081			—			3,002			3,079

Net change in cash and cash equivalents	(12,126		)	—			(17,681		)	5,555
Cash and cash equivalents, beginning of period	43,753			—			36,783			6,970

Cash and cash equivalents, end of period	$	31,627		$	—		$	19,102		$	12,525

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Three Months Ended March 31, 2012

	Total Company			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In thousands)
Net cash from continuing operating activities	$	125,206		$	44,856		$	8,860		$	71,490

Investing activities:
Purchase of equipment and improvements	(26,173		)	(518		)	(17,720		)	(7,935		)
Dealership acquisitions, net	(108,106		)	—			—			(108,106		)
Other	—			—			—			—

Net cash from continuing investing activities	(134,279		)	(518		)	(17,720		)	(116,041		)

Financing activities:
Net borrowings (repayments) of long-term debt	9,766			(25,000		)	(963		)	35,729
Net borrowings (repayments) of floor plan notes payable — non-trade	(367		)	(1,843		)	(17,591		)	19,067
Repurchase of common stock	(8,522		)	(8,522		)	—			—
Dividends	(8,973		)	(8,973		)	—			—
Distributions from (to) parent	—			—			636			(636		)

Net cash from continuing financing activities	(8,096		)	(44,338		)	(17,918		)	54,160

Net cash from discontinued operations	21,105			—			9,994			11,111

Net change in cash and cash equivalents	3,936			—			(16,784		)	20,720
Cash and cash equivalents, beginning of period	27,201			—			27,201			—

Cash and cash equivalents, end of period	$	31,137		$	—		$	10,417		$	20,720