Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2015

Condensed Consolidating Financial Information

CONDENSED CONSOLIDATING BALANCE SHEET

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

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

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