Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2015

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