13. Condensed Consolidating Financial Information

The following tables include condensed consolidating financial information as of June 30, 2015 and December 31, 2014 and for the three and six month periods ended June 30, 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
June 30, 2015

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

Cash and cash equivalents	$	36.7	$	—		$	—	$	—	$	36.7
Accounts receivable, net	738.8		(422.0		)	422.0		354.3		384.5
Inventories	3,055.4		—			—		1,579.9		1,475.5
Other current assets	107.0		—			2.8		36.5		67.7
Assets held for sale	45.7		—			—		11.3		34.4

Total current assets	3,983.6		(422.0		)	424.8		1,982.0		1,998.8
Property and equipment, net	1,378.3		—			4.3		771.8		602.2
Intangible assets	1,684.0		—			—		833.7		850.3
Equity method investments	359.0		—			294.0		—		65.0
Other long-term assets	29.0		(2,125.6		)	2,139.0		1.1		14.5

Total assets	$	7,433.9	$	(2,547.6	)	$	2,862.1	$	3,588.6	$	3,530.8

Floor plan notes payable	$	2,004.9	$	—		$	—	$	1,195.1	$	809.8
Floor plan notes payable — non-trade	1,042.8		—			150.8		343.5		548.5
Accounts payable	502.1		—			3.3		150.1		348.7
Accrued expenses	329.3		(422.0		)	1.0		148.1		602.2
Current portion of long-term debt	31.2		—			—		6.9		24.3
Liabilities held for sale	29.9		—			—		7.5		22.4

Total current liabilities	3,940.2		(422.0		)	155.1		1,851.2		2,355.9
Long-term debt	1,130.8		(270.8		)	928.0		111.6		362.0
Deferred tax liabilities	391.4		—			—		366.7		24.7
Other long-term liabilities	192.5		—			—		67.9		124.6

Total liabilities	5,654.9		(692.8		)	1,083.1		2,397.4		2,867.2
Total equity	1,779.0		(1,854.8		)	1,779.0		1,191.2		663.6

Total liabilities and equity	$	7,433.9	$	(2,547.6	)	$	2,862.1	$	3,588.6	$	3,530.8

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	186.6		—			—		150.9		35.7

Total current assets	3,868.2		(409.6		)	414.1		2,083.3		1,780.4
Property and equipment, net	1,328.8		—			4.3		754.6		569.9
Intangible assets	1,652.0		—			—		817.9		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 June 30, 2015

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

Revenues	$	4,904.4		$	—		$	—		$	2,609.0		$	2,295.4
Cost of sales	4,174.8			—			—			2,203.6			1,971.2

Gross profit	729.6			—			—			405.4			324.2
Selling, general and administrative expenses	551.3			—			5.6			300.1			245.6
Depreciation	19.2			—			0.4			10.4			8.4

Operating income	159.1			—			(6.0		)	94.9			70.2
Floor plan interest expense	(11.0		)	—			(0.7		)	(5.6		)	(4.7		)
Other interest expense	(16.4		)	—			(10.2		)	(1.4		)	(4.8		)
Equity in earnings of affiliates	12.0			—			10.5			—			1.5
Equity in earnings of subsidiaries	—			(148.4		)	148.4			—			—

Income from continuing operations before income taxes	143.7			(148.4		)	142.0			87.9			62.2
Income taxes	(47.6		)	49.8			(47.6		)	(34.1		)	(15.7		)

Income from continuing operations	96.1			(98.6		)	94.4			53.8			46.5
(Loss) income from discontinued operations, net of tax	(0.4		)	0.4			(0.4		)	(0.2		)	(0.2		)

Net income	95.7			(98.2		)	94.0			53.6			46.3
Other comprehensive income (loss), net of tax	38.3			(37.5		)	38.3			—			37.5

Comprehensive income	134.0			(135.7		)	132.3			53.6			83.8

Less: Comprehensive income attributable to non-controlling interests	1.5			0.2			(0.2		)	—			1.5

Comprehensive income attributable to Penske Automotive Group common stockholders	$	132.5		$	(135.9	)	$	132.5		$	53.6		$	82.3

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Three Months Ended June 30, 2014

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

Revenues	$	4,370.5		$	—		$	—		$	2,454.3		$	1,916.2
Cost of sales	3,715.7			—			—			2,064.7			1,651.0

Gross profit	654.8			—			—			389.6			265.2
Selling, general and administrative expenses	502.0			—			5.9			292.8			203.3
Depreciation	17.0			—			0.3			9.4			7.3

Operating income	135.8			—			(6.2		)	87.4			54.6
Floor plan interest expense	(11.6		)	—			(2.4		)	(5.3		)	(3.9		)
Other interest expense	(12.4		)	—			(7.4		)	(0.4		)	(4.6		)
Equity in earnings of affiliates	10.9			—			9.4			—			1.5
Equity in earnings of subsidiaries	—			(128.3		)	128.3			—			—

Income from continuing operations before income taxes	122.7			(128.3		)	121.7			81.7			47.6
Income taxes	(41.2		)	43.4			(41.2		)	(28.0		)	(15.4		)

Income from continuing operations	81.5			(84.9		)	80.5			53.7			32.2
(Loss) income from discontinued operations, net of tax	(7.6		)	7.6			(7.6		)	—			(7.6		)

Net income	73.9			(77.3		)	72.9			53.7			24.6
Other comprehensive income (loss), net of tax	18.8			(18.4		)	18.8			1.5			16.9

Comprehensive income	92.7			(95.7		)	91.7			55.2			41.5

Less: Comprehensive income attributable to non-controlling interests	0.9			—			—			—			0.9

Comprehensive income attributable to Penske Automotive Group common stockholders	$	91.8		$	(95.7	)	$	91.7		$	55.2		$	40.6

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Six Months Ended June 30, 2015

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

Revenues	$	9,375.5		$	—		$	—		$	4,957.3		$	4,418.2
Cost of sales	7,957.2			—			—			4,175.2			3,782.0

Gross profit	1,418.3			—			—			782.1			636.2
Selling, general and administrative expenses	1,085.8			—			12.3			593.3			480.2
Depreciation	37.8			—			0.8			20.6			16.4

Operating income	294.7			—			(13.1		)	168.2			139.6
Floor plan interest expense	(21.1		)	—			(1.4		)	(10.8		)	(8.9		)
Other interest expense	(32.7		)	—			(20.0		)	(2.7		)	(10.0		)
Equity in earnings of affiliates	18.7			—			16.3			—			2.4
Equity in earnings of subsidiaries	—			(275.4		)	275.4			—			—

Income from continuing operations before income taxes	259.6			(275.4		)	257.2			154.7			123.1
Income taxes	(86.4		)	92.6			(86.4		)	(62.4		)	(30.2		)

Income from continuing operations	173.2			(182.8		)	170.8			92.3			92.9
(Loss) income from discontinued operations, net of tax	(1.6		)	1.6			(1.6		)	(1.3		)	(0.3		)

Net income	171.6			(181.2		)	169.2			91.0			92.6
Other comprehensive income (loss), net of tax	(16.8		)	14.8			(16.8		)	—			(14.8		)

Comprehensive income	154.8			(166.4		)	152.4			91.0			77.8

Less: Comprehensive income attributable to non-controlling interests	1.6			0.8			(0.8		)	—			1.6

Comprehensive income attributable to Penske Automotive Group common stockholders	$	153.2		$	(167.2	)	$	153.2		$	91.0		$	76.2

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Six Months Ended June 30, 2014

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

Revenues	$	8,385.7		$	—		$	—		$	4,612.1		$	3,773.6
Cost of sales	7,116.9			—			—			3,875.7			3,241.2

Gross profit	1,268.8			—			—			736.4			532.4
Selling, general and administrative expenses	979.2			—			11.7			570.2			397.3
Depreciation	33.1			—			0.6			18.3			14.2

Operating income	256.5			—			(12.3		)	147.9			120.9
Floor plan interest expense	(22.7		)	—			(4.8		)	(10.3		)	(7.6		)
Other interest expense	(24.8		)	—			(14.5		)	(0.9		)	(9.4		)
Equity in earnings of affiliates	16.0			—			13.6			—			2.4
Equity in earnings of subsidiaries	—			(241.7		)	241.7			—			—

Income from continuing operations before income taxes	225.0			(241.7		)	223.7			136.7			106.3
Income taxes	(75.9		)	82.0			(76.0		)	(52.6		)	(29.3		)

Income from continuing operations	149.1			(159.7		)	147.7			84.1			77.0
(Loss) income from discontinued operations, net of tax	(7.3		)	7.3			(7.3		)	5.8			(13.1		)

Net income	141.8			(152.4		)	140.4			89.9			63.9
Other comprehensive income (loss), net of tax	25.0			(25.2		)	25.0			(0.9		)	26.1

Comprehensive income	166.8			(177.6		)	165.4			89.0			90.0

Less: Comprehensive income attributable to non-controlling interests	1.1			0.2			(0.2		)	—			1.1

Comprehensive income attributable to Penske Automotive Group common stockholders	$	165.7		$	(177.8	)	$	165.6		$	89.0		$	88.9

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Six Months Ended June 30, 2015

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

Net cash provided by continuing operating activities	$	270.1		$	9.4		$	75.0		$	185.7

Investing activities:
Purchase of equipment and improvements	(82.9		)	(0.7		)	(40.0		)	(42.2		)
Acquisitions, net	(86.4		)	—			(21.7		)	(64.7		)

Net cash used in continuing investing activities	(169.3		)	(0.7		)	(61.7		)	(106.9		)

Financing activities:
Net repayments of long-term debt	(194.6		)	(10.0		)	(5.7		)	(178.9		)
Net borrowings (repayments) of floor plan notes payable — non-trade	122.3			64.0			(54.7		)	113.0
Payment of deferred financing fees	(1.7		)	—			—			(1.7		)
Repurchases of common stock	(22.0		)	(22.0		)	—			—
Dividends	(40.7		)	(40.7		)	—			—
Other	0.2			—			—			0.2
Distributions from (to) parent	—			—			7.4			(7.4		)

Net cash used in continuing financing activities	(136.5		)	(8.7		)	(53.0		)	(74.8		)
Net cash provided by discontinued operations	36.5			—			39.7			(3.2		)
Effect of exchange rates on cash and cash equivalents	(0.4		)	—			—			(0.4		)

Net change in cash and cash equivalents	0.4			—			—			0.4
Cash and cash equivalents, beginning of period	36.3			—			—			36.3

Cash and cash equivalents, end of period	$	36.7		$	—		$	—		$	36.7

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Six Months Ended June 30, 2014

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

Net cash provided by continuing operating activities	$	207.3		$	33.5		$	89.7		$	84.1

Investing activities:
Purchase of equipment and improvements	(81.5		)	(0.4		)	(60.5		)	(20.6		)
Acquisitions, net	(86.2		)	—			(80.5		)	(5.7		)
Other	4.2			4.2			—			—

Net cash (used in) provided by continuing investing activities	(163.5		)	3.8			(141.0		)	(26.3		)

Financing activities:
Net (repayments) borrowings of long-term debt	(37.2		)	10.0			11.0			(58.2		)
Net borrowings of floor plan notes payable — non-trade	32.4			1.7			14.6			16.1
Repurchases of common stock	(15.5		)	(15.5		)	—			—
Dividends	(33.5		)	(33.5		)	—			—
Other	0.3			—			—			0.3
Distributions from (to) parent	—			—			3.6			(3.6		)

Net cash (used in) provided by continuing financing activities	(53.5		)	(37.3		)	29.2			(45.4		)
Net cash provided by discontinued operations	20.8			—			9.0			11.8

Net change in cash and cash equivalents	11.1			—			(13.1		)	24.2
Cash and cash equivalents, beginning of period	50.3			—			13.1			37.2

Cash and cash equivalents, end of period	$	61.4		$	—		$	—		$	61.4