13. Condensed Consolidating Financial Information

The following tables include condensed consolidating financial information as of March 31, 2015 and December 31, 2014 and for the three month periods ended March 31, 2015 and 2014 for Penske Automotive Group, Inc. (as the issuer of the 5.75% and 5.375% Notes), guarantor subsidiaries and non-guarantor subsidiaries (primarily representing non-U.S. entities). Guarantor subsidiaries are directly or indirectly 100% owned by PAG, and the guarantees are full and unconditional, and joint and several. The guarantees may be released under certain circumstances upon resale, or transfer by us of the stock of the related guarantor or all or substantially all of the assets of the guarantor to a non-affiliate.

CONDENSED CONSOLIDATING BALANCE SHEET
March 31, 2015

	Total Company		Eliminations			Penske Automotive Group		Guarantor Subsidiaries		Non-Guarantor Subsidiaries
	(In millions)

Cash and cash equivalents	$	66.8	$	—		$	—	$	—	$	66.8
Accounts receivable, net	746.4		(415.0		)	415.0		364.2		382.2
Inventories	2,885.7		—			—		1,488.4		1,397.3
Other current assets	106.7		—			5.3		27.4		74.0
Assets held for sale	62.2		—			—		28.2		34.0
Total current assets	3,867.8		(415.0		)	420.3		1,908.2		1,954.3
Property and equipment, net	1,326.6		—			4.5		761.7		560.4
Intangible assets	1,657.7		—			—		834.2		823.5
Equity method investments	350.9		—			288.1		—		62.8
Other long-term assets	24.6		(2,014.8		)	2,031.4		2.4		5.6
Total assets	$	7,227.6	$	(2,429.8	)	$	2,744.3	$	3,506.5	$	3,406.6
Floor plan notes payable	$	1,915.8	$	—		$	—	$	1,089.8	$	826.0
Floor plan notes payable — non-trade	1,021.5		—			131.8		389.0		500.7
Accounts payable	454.1		—			2.2		149.1		302.8
Accrued expenses	342.9		(415.0		)	0.9		162.9		594.1
Current portion of long-term debt	34.5		—			—		6.9		27.6
Liabilities held for sale	43.3		—			—		17.8		25.5
Total current liabilities	3,812.1		(415.0		)	134.9		1,815.5		2,276.7
Long-term debt	1,174.1		(274.2		)	938.0		112.6		397.7
Deferred tax liabilities	385.0		—			—		362.0		23.0
Other long-term liabilities	185.0		—			—		67.5		117.5
Total liabilities	5,556.2		(689.2		)	1,072.9		2,357.6		2,814.9
Total equity	1,671.4		(1,740.6		)	1,671.4		1,148.9		591.7
Total liabilities and equity	$	7,227.6	$	(2,429.8	)	$	2,744.3	$	3,506.5	$	3,406.6

CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2014

	Total Company		Eliminations			Penske Automotive Group		Guarantor Subsidiaries		Non-Guarantor Subsidiaries
	(In millions)

Cash and cash equivalents	$	36.3	$	—		$	—	$	—	$	36.3
Accounts receivable, net	701.4		(409.6		)	409.6		392.6		308.8
Inventories	2,819.2		—			—		1,481.5		1,337.7
Other current assets	124.7		—			4.5		58.3		61.9
Assets held for sale	186.1		—			—		150.4		35.7
Total current assets	3,867.7		(409.6		)	414.1		2,082.8		1,780.4
Property and equipment, net	1,328.8		—			4.3		754.6		569.9
Intangible assets	1,652.5		—			—		818.4		834.1
Equity method investments	352.8		—			285.5		—		67.3
Other long-term assets	26.4		(1,990.8		)	2,005.0		4.4		7.8
Total assets	$	7,228.2	$	(2,400.4	)	$	2,708.9	$	3,660.2	$	3,259.5
Floor plan notes payable	$	1,812.6	$	—		$	—	$	1,102.0	$	710.6
Floor plan notes payable — non-trade	920.5		—			86.8		398.1		435.6
Accounts payable	417.6		—			2.9		208.3		206.4
Accrued expenses	310.3		(409.6		)	—		123.3		596.6
Current portion of long-term debt	36.6		—			—		4.6		32.0
Liabilities held for sale	132.7		—			—		105.9		26.8
Total current liabilities	3,630.3		(409.6		)	89.7		1,942.2		2,008.0
Long-term debt	1,316.0		(247.0		)	938.0		116.1		508.9
Deferred tax liabilities	409.9		—			—		385.6		24.3
Other long-term liabilities	190.8		—			—		66.9		123.9
Total liabilities	5,547.0		(656.6		)	1,027.7		2,510.8		2,665.1
Total equity	1,681.2		(1,743.8		)	1,681.2		1,149.4		594.4
Total liabilities and equity	$	7,228.2	$	(2,400.4	)	$	2,708.9	$	3,660.2	$	3,259.5

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Three Months Ended March 31, 2015

	Total Company			Eliminations			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In millions)

Revenues	$	4,471.1		$	—		$	—		$	2,348.3		$	2,122.8
Cost of sales	3,782.4			—			—			1,971.6			1,810.8
Gross profit	688.7			—			—			376.7			312.0
Selling, general and administrative expenses	534.5			—			6.7			293.2			234.6
Depreciation	18.6			—			0.4			10.2			8.0
Operating income	135.6			—			(7.1		)	73.3			69.4
Floor plan interest expense	(10.1		)	—			(0.7		)	(5.2		)	(4.2		)
Other interest expense	(16.3		)	—			(9.8		)	(1.3		)	(5.2		)
Equity in earnings of affiliates	6.7			—			5.8			—			0.9
Equity in earnings of subsidiaries	—			(127.0		)	127.0			—			—
Income from continuing operations before income taxes	115.9			(127.0		)	115.2			66.8			60.9
Income taxes	(38.8		)	42.8			(38.8		)	(28.3		)	(14.5		)
Income from continuing operations	77.1			(84.2		)	76.4			38.5			46.4
(Loss) income from discontinued operations, net of tax	(1.2		)	1.2			(1.2		)	(1.1		)	(0.1		)
Net income	75.9			(83.0		)	75.2			37.4			46.3
Other comprehensive income (loss), net of tax	(55.1		)	52.3			(55.1		)	—			(52.3		)
Comprehensive income	20.8			(30.7		)	20.1			37.4			(6.0		)
Less: Comprehensive income attributable to non-controlling interests	0.1			0.6			(0.6		)	—			0.1
Comprehensive income attributable to Penske Automotive Group common stockholders	$	20.7		$	(31.3	)	$	20.7		$	37.4		$	(6.1	)

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Three Months Ended March 31, 2014

	Total Company			Eliminations			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In millions)

Revenues	$	4,015.2		$	—		$	—		$	2,157.8		$	1,857.4
Cost of sales	3,401.2			—			—			1,811.0			1,590.2
Gross profit	614.0			—			—			346.8			267.2
Selling, general and administrative expenses	477.2			—			5.8			277.4			194.0
Depreciation	16.1			—			0.3			8.9			6.9
Operating income	120.7			—			(6.1		)	60.5			66.3
Floor plan interest expense	(11.1		)	—			(2.4		)	(5.0		)	(3.7		)
Other interest expense	(12.4		)	—			(7.1		)	(0.5		)	(4.8		)
Equity in earnings of affiliates	5.1			—			4.2			—			0.9
Equity in earnings of subsidiaries	—			(113.4		)	113.4			—			—
Income from continuing operations before income taxes	102.3			(113.4		)	102.0			55.0			58.7
Income taxes	(34.7		)	38.6			(34.8		)	(24.6		)	(13.9		)
Income from continuing operations	67.6			(74.8		)	67.2			30.4			44.8
(Loss) income from discontinued operations, net of tax	0.3			(0.3		)	0.3			5.8			(5.5		)
Net income	67.9			(75.1		)	67.5			36.2			39.3
Other comprehensive income (loss), net of tax	6.2			(6.8		)	6.2			(2.4		)	9.2
Comprehensive income	74.1			(81.9		)	73.7			33.8			48.5
Less: Comprehensive income attributable to non-controlling interests	0.2			0.2			(0.2		)	—			0.2
Comprehensive income attributable to Penske Automotive Group common stockholders	$	73.9		$	(82.1	)	$	73.9		$	33.8		$	48.3

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Three Months Ended March 31, 2015

	Total Company			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In millions)

Net cash provided by (used in) continuing operating activities	$	193.6		$	(10.6	)	$	17.1		$	187.1
Investing activities:
Purchase of equipment and improvements	(33.6		)	(0.5		)	(19.2		)	(13.9		)
Acquisitions, net	(86.4		)	—			(21.7		)	(64.7		)
Net cash used in continuing investing activities	(120.0		)	(0.5		)	(40.9		)	(78.6		)
Financing activities:
Net repayments of long-term debt	(139.3		)	—			(1.3		)	(138.0		)
Net borrowings (repayments) of floor plan notes payable — non-trade	101.0			45.0			(9.1		)	65.1
Payment of deferred financing fees	(1.2		)	—			—			(1.2		)
Repurchases of common stock	(14.0		)	(14.0		)	—			—
Dividends	(19.9		)	(19.9		)	—			—
Distributions from (to) parent	—			—			1.2			(1.2		)
Net cash (used in) provided by continuing financing activities	(73.4		)	11.1			(9.2		)	(75.3		)
Net cash provided by discontinued operations	33.4			—			33.0			0.4
Effect of exchange rate changes on cash and cash equivalents	(3.1		)	—			—			(3.1		)
Net change in cash and cash equivalents	30.5			—			—			30.5
Cash and cash equivalents, beginning of period	36.3			—			—			36.3
Cash and cash equivalents, end of period	$	66.8		$	—		$	—		$	66.8

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Three Months Ended March 31, 2014

	Total Company			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In millions)

Net cash provided by continuing operating activities	$	132.5		$	9.7		$	109.8		$	13.0
Investing activities:
Purchase of equipment and improvements	(39.8		)	(0.3		)	(28.0		)	(11.5		)
Acquisitions, net	(81.8		)	—			(80.0		)	(1.8		)
Net cash used in continuing investing activities	(121.6		)	(0.3		)	(108.0		)	(13.3		)
Financing activities:
Net (repayments) borrowings of long-term debt	(26.3		)	10.0			(5.3		)	(31.0		)
Net borrowings (repayments) of floor plan notes payable — non-trade	6.8			(3.2		)	(29.4		)	39.4
Dividends	(16.2		)	(16.2		)	—			—
Distributions from (to) parent	—			—			0.5			(0.5		)
Net cash (used in) provided by continuing financing activities	(35.7		)	(9.4		)	(34.2		)	7.9
Net cash provided by discontinued operations	29.6			—			27.2			2.4
Net change in cash and cash equivalents	4.8			—			(5.2		)	10.0
Cash and cash equivalents, beginning of period	50.3			—			13.1			37.2
Cash and cash equivalents, end of period	$	55.1		$	—		$	7.9		$	47.2