Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2011

Condensed Consolidating Financial Information [Abstract]

CONDENSED CONSOLIDATING BALANCE SHEET

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2011

	Total Company		Eliminations			Penske Automotive Group		Guarantor Subsidiaries		Non-Guarantor Subsidiaries
	(In thousands)
Cash and cash equivalents	$	29,116	$	—		$	—	$	27,035	$	2,081
Accounts receivable, net		444,673		(297,782	)		305,386		283,281		153,788
Inventories		1,605,280		—			—		904,820		700,460
Other current assets		80,307		—			2,306		40,412		37,589
Assets held for sale		33,224		—			—		21,073		12,151
Total current assets		2,192,600		(297,782	)		307,692		1,276,621		906,069
Property and equipment, net		858,975		—			6,730		548,985		303,260
Intangible assets		1,138,586		—			—		701,717		436,869
Equity method investments		298,640		—			246,658		—		51,982
Other long-term assets		13,498		(1,360,808	)		1,369,182		3,389		1,735
Total assets	$	4,502,299	$	(1,658,590	)	$	1,930,262	$	2,530,712	$	1,699,915
Floor plan notes payable	$	988,650	$	—		$	—	$	560,998	$	427,652
Floor plan notes payable — non-trade		713,635		—			90,892		345,674		277,069
Accounts payable		223,313		—			1,633		112,955		108,725
Accrued expenses		202,761		(297,782	)		—		99,528		401,015
Current portion of long-term debt		3,414		—			—		3,414		—
Liabilities held for sale		17,899		—			—		6,465		11,434
Total current liabilities		2,149,672		(297,782	)		92,525		1,129,034		1,225,895
Long-term debt		846,777		(38,073	)		697,324		77,060		110,466
Deferred tax liabilities		217,902		—			—		198,348		19,554
Other long-term liabilities		147,535		—			—		93,328		54,207
Total liabilities		3,361,886		(335,855	)		789,849		1,497,770		1,410,122
Total equity		1,140,413		(1,322,735	)		1,140,413		1,032,942		289,793
Total liabilities and equity	$	4,502,299	$	(1,658,590	)	$	1,930,262	$	2,530,712	$	1,699,915

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2010

	Total Company		Eliminations			Penske Automotive Group		Guarantor Subsidiaries		Non-Guarantor Subsidiaries
	(In thousands)
Cash and cash equivalents	$	19,688	$	—		$	—	$	15,211	$	4,477
Accounts receivable, net		382,382		(269,021	)		269,021		228,306		154,076
Inventories		1,443,284		—			—		873,795		569,489
Other current assets		68,225		—			1,127		32,547		34,551
Assets held for sale		133,019		—			—		124,480		8,539
Total current assets		2,046,598		(269,021	)		270,148		1,274,339		771,132
Property and equipment, net		716,427		—			4,957		445,322		266,148
Intangible assets		1,003,729		—			—		482,953		520,776
Equity method investments		288,406		—			234,214		—		54,192
Other long-term assets		14,672		(1,212,538	)		1,222,168		3,088		1,954
Total assets	$	4,069,832	$	(1,481,559	)	$	1,731,487	$	2,205,702	$	1,614,202
Floor plan notes payable	$	911,548	$	—		$	—	$	562,581	$	348,967
Floor plan notes payable — non-trade		497,074		—			25,000		293,303		178,771
Accounts payable		251,960		—			2,186		86,190		163,584
Accrued expenses		201,714		(269,021	)		564		95,978		374,193
Current portion of long-term debt		10,593		—			—		1,264		9,329
Liabilities held for sale		88,117		—			—		81,854		6,263
Total current liabilities		1,961,006		(269,021	)		27,750		1,121,170		1,081,107
Long-term debt		769,285		(77,593	)		657,884		49,689		139,305
Deferred tax liabilities		178,406		—			—		165,666		12,740
Other long-term liabilities		115,282		—			—		99,238		16,044
Total liabilities		3,023,979		(346,614	)		685,634		1,435,763		1,249,196
Total equity		1,045,853		(1,134,945	)		1,045,853		769,939		365,006
Total liabilities and equity	$	4,069,832	$	(1,481,559	)	$	1,731,487	$	2,205,702	$	1,614,202

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Year Ended December 31, 2011

	Total Company			Eliminations			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In thousands)
Revenues	$	11,556,232		$	—		$	—		$	6,788,576		$	4,767,656
Cost of sales		9,730,842			—			—			5,661,749			4,069,093
Gross profit		1,825,390			—			—			1,126,827			698,563
Selling, general, and administrative expenses		1,478,297			—			18,978			900,362			558,957
Depreciation		48,903			—			1,369			26,490			21,044
Operating income (loss)		298,190			—			(20,347	)		199,975			118,562
Floor plan interest expense		(28,515	)		—			(1,364	)		(14,434	)		(12,717	)
Other interest expense		(45,020	)		—			(25,464	)		(3,276	)		(16,280	)
Debt discount amortization		(1,718	)		—			(1,718	)		—			—
Equity in earnings of affiliates		25,451			—			23,044			—			2,407
Equity in earnings of subsidiaries		—			(272,860	)		272,860			—			—
Income from continuing operations before income taxes		248,388			(272,860	)		247,011			182,265			91,972
Income taxes		(71,933	)		79,461			(71,933	)		(53,097	)		(26,364	)
Income from continuing operations		176,455			(193,399	)		175,078			129,168			65,608
Loss from discontinued operations, net of tax		1,803			(1,803	)		1,803			2,608			(805	)
Net income		178,258			(195,202	)		176,881			131,776			64,803
Less: Income attributable to the non- controlling interests		1,377			—			—			—			1,377
Net income attributable to Penske Automotive Group common stockholders	$	176,881		$	(195,202	)	$	176,881		$	131,776		$	63,426

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Year Ended December 31, 2010

	Total Company			Eliminations			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In thousands)
Revenues	$	10,328,385		$	—		$	—		$	5,923,698		$	4,404,687
Cost of sales		8,684,270			—			—			4,934,474			3,749,796
Gross profit		1,644,115			—			—			989,224			654,891
Selling, general, and administrative expenses		1,339,125			—			17,182			803,007			518,936
Depreciation		46,253			—			1,116			25,236			19,901
Operating income (loss)		258,737			—			(18,298	)		160,981			116,054
Floor plan interest expense		(33,779	)		—			(576	)		(23,539	)		(9,664	)
Other interest expense		(49,176	)		—			(30,237	)		(2,220	)		(16,719	)
Debt discount amortization		(8,637	)		—			(8,637	)		—			—
Equity in earnings of affiliates		20,569			—			18,367			—			2,202
Gain on debt repurchase		1,634			—			1,634			—			—
Equity in earnings of subsidiaries		—			(226,029	)		226,029			—			—
Income from continuing operations before income taxes		189,348			(226,029	)		188,282			135,222			91,873
Income taxes		(64,732	)		77,710			(64,732	)		(51,534	)		(26,176	)
Income from continuing operations		124,616			(148,319	)		123,550			83,688			65,697
Loss from discontinued operations, net of tax		(15,269	)		15,269			(15,269	)		(15,548	)		279
Net income		109,347			(133,050	)		108,281			68,140			65,976
Less: Income attributable to the non- controlling interests		1,066			—			—			—			1,066
Net income attributable to Penske Automotive Group common stockholders	$	108,281		$	(133,050	)	$	108,281		$	68,140		$	64,910

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Year Ended December 31, 2009

	Total Company			Eliminations			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In thousands)
Revenues	$	9,012,217		$	—		$	—		$	5,103,635		$	3,908,582
Cost of sales		7,505,088			—			—			4,214,692			3,290,396
Gross profit		1,507,129			—			—			888,943			618,186
Selling, general, and administrative expenses		1,254,500			—			18,259			749,693			486,548
Depreciation		51,401			—			1,160			30,980			19,261
Operating income (loss)		201,228			—			(19,419	)		108,270			112,377
Floor plan interest expense		(34,097	)		—			—			(23,804	)		(10,293	)
Other interest expense		(55,085	)		—			(41,036	)		(140	)		(13,909	)
Debt discount amortization		(13,043	)		—			(13,043	)		—			—
Equity in earnings of affiliates		13,808			—			11,087			—			2,721
Gain on debt repurchase		10,429			—			10,429			—			—
Equity in earnings of subsidiaries		—			(174,763	)		174,763			—			—
Income from continuing operations before income taxes		123,240			(174,763	)		122,781			84,326			90,896
Income taxes		(43,055	)		61,283			(43,055	)		(35,394	)		(25,889	)
Income from continuing operations		80,185			(113,480	)		79,726			48,932			65,007
Loss from discontinued operations, net of tax		(3,265	)		3,265			(3,265	)		(981	)		(2,284	)
Net income		76,920			(110,215	)		76,461			47,951			62,723
Less: Income attributable to the non- controlling interests		459			—			—			—			459
Net income attributable to Penske Automotive Group common stockholders	$	76,461		$	(110,215	)	$	76,461		$	47,951		$	62,264

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2011

	Total Company			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In thousands)
Net cash from continuing operating activities	$	122,617		$	(39,449	)	$	188,463		$	(26,397	)
Investing activities:
Purchase of property and equipment		(133,115	)		(1,280	)		(81,482	)		(50,353	)
Dealership acquisitions, net		(232,106	)		—			(230,426	)		(1,680	)
Other		2,865			—			—			2,865
Net cash from continuing investing activities		(362,356	)		(1,280	)		(311,908	)		(49,168	)
Financing activities:
Repayment under U.S. credit agreement term loan		(7,000	)		(7,000	)		—			—
Repurchase 3.5% senior subordinated convertible notes		(87,278	)		(87,278	)		—			—
Net borrowings (repayments) of long-term debt		158,395			132,000			54,494			(28,099	)
Net (repayments) borrowings of floor plan notes payable — non-trade		216,561			65,892			44,821			105,848
Proceeds from exercises of options, including excess tax benefit		3,370			3,370			—			—
Repurchase of common stock		(44,263	)		(44,263	)		—			—
Dividends		(21,992	)		(21,992	)		—			—
Distributions from (to) parent		—			—			6,139			(6,139	)
Net cash from continuing financing activities		217,793			40,729			105,454			71,610
Net cash from discontinued operations		31,374			—			29,815			1,559
Net change in cash and cash equivalents		9,428			—			11,824			(2,396	)
Cash and cash equivalents, beginning of period		19,688			—			15,211			4,477
Cash and cash equivalents, end of period	$	29,116		$	—		$	27,035		$	2,081

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2010

	Total Company			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In thousands)
Net cash from continuing operating activities	$	198,440		$	133,059		$	40,532		$	24,849
Investing activities:
Purchase of property and equipment		(75,699	)		(66	)		(51,261	)		(24,372	)
Dealership acquisitions, net		(22,232	)		—			(22,232	)		—
Other		13,822			13,822			—			—
Net cash from continuing investing activities		(84,109	)		13,756			(73,493	)		(24,372	)
Financing activities:
Repayment under U.S. credit agreement term loan		(15,000	)		(15,000	)		—			—
Repurchase 3.5% senior subordinated convertible notes		(156,604	)		(156,604	)		—			—
Net borrowings (repayments) of long-term debt		(15,402	)		—			(13,613	)		(1,789	)
Net (repayments) borrowings of floor plan notes payable — non-trade		80,151			25,000			51,384			3,767
Proceeds from exercises of options, including excess tax benefit		540			540			—			—
Repurchase of common stock		(751	)		(751	)		—			—
Distributions from (to) parent		—			—			1,365			(1,365	)
Net cash from continuing financing activities		(107,066	)		(146,815	)		39,136			613
Net cash from discontinued operations		(5,796	)		—			(3,283	)		(2,513	)
Net change in cash and cash equivalents		1,469			—			2,892			(1,423	)
Cash and cash equivalents, beginning of period		18,219			—			12,319			5,900
Cash and cash equivalents, end of period	$	19,688		$	—		$	15,211		$	4,477

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2009

	Total Company			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In thousands)
Net cash from continuing operating activities	$	302,334		$	42,525		$	85,374		$	174,435
Investing activities:
Purchase of property and equipment		(89,203	)		(240	)		(65,310	)		(23,653	)
Proceeds from sale-leaseback transactions		2,338			—			2,338			—
Dealership acquisitions, net		(8,517	)		—			(597	)		(7,920	)
Other		17,994			11,485			(206	)		6,715
Net cash from continuing investing activities		(77,388	)		11,245			(63,775	)		(24,858	)
Financing activities:
Repayment under U.S. credit agreement term loan		(60,000	)		(60,000	)		—			—
Repurchase 3.5% senior subordinated convertible notes		(51,424	)		(51,424	)		—			—
Net borrowings (repayments) of long-term debt		(17,402	)		57,305			(126	)		(74,581	)
Net (repayments) borrowings of floor plan notes payable — non-trade		(82,799	)		—			(11,608	)		(71,191	)
Proceeds from exercises of options, including excess tax benefit		349			349			—			—
Distributions from (to) parent		—			—			317			(317	)
Net cash from continuing financing activities		(211,276	)		(53,770	)		(11,417	)		(146,089	)
Net cash from discontinued operations		(11,266	)		—			(12,534	)		1,268
Net change in cash and cash equivalents		2,404			—			(2,352	)		4,756
Cash and cash equivalents, beginning of period		15,815			—			14,671			1,144
Cash and cash equivalents, end of period	$	18,219		$	—		$	12,319		$	5,900