Equity Method Investees

12 Months Ended

Dec. 31, 2015

2. Equity Method Investees

As of December 31, 2015, we have investments in the following companies that are accounted for under the equity method: the Nix Group (50%), Ibericar Keldinich SL (50%), Penske Commercial Leasing Australia (45%), Penske Vehicle Services (31%), and National Powersport Auctions (7%). Nix Group and Ibericar Keldinich SL are engaged in the sale and servicing of automobiles. Penske Commercial Leasing Australia rents heavy-duty commercial vehicles in Australia, Penske Vehicle Services is an automotive fleet management company, and National Powersport Auctions is an auctioneer of powersport vehicles. Investments in entities accounted for under the equity method amounted to $45.8 million and $73.3 million at December 31, 2015 and 2014, respectively.

In September 2015, we sold our 50% interest in our Max Cycles non-automotive joint venture, which operates BMW motorcycle dealerships. In October 2015, our Penske-Wynn Ferrari/Maserati joint venture sold substantially all of its assets to a third party. We accounted for both of these investments using the equity method of accounting. The equity earnings associated with these investments is included within continuing operations under the caption “Equity in earnings of affiliates” for the three years ended December 31, 2015. Additionally, in September 2015 we acquired an additional 10% interest in the Jacobs Group, which was previously accounted for under the equity method. We now own a 60% controlling interest in this joint venture, and therefore this entity is consolidated in our financial results for the year ended December 31, 2015. The equity earnings associated with this investment prior to consolidation were included within continuing operations under the caption “Equity in earnings of affiliates” through September 2015 and for the years ended December 31, 2014 and 2013.

We also have a 9.0% ownership interest in PTL, a leading provider of transportation and supply chain services. Our investment in PTL, which is accounted for under the equity method, amounted to $290.6 million and $279.5 million at December 31, 2015 and 2014, respectively.

The combined results of operations and financial position of our equity method investees as of December 31 for each of the years presented are summarized as follows:

Condensed income statement information:


	Year Ended December 31,
	2015		2014		2013
Revenues	$	6,770.3	$	6,620.1	$	6,177.0
Gross margin		2,396.8		2,181.4		2,043.5
Net income		398.5		357.2		304.0
Equity in earnings of affiliates		39.3		40.8		30.7

Condensed balance sheet information:


	December 31,
	2015		2014
Current assets	$	1,069.0	$	1,242.0
Noncurrent assets		10,197.3		9,230.8
Total assets	$	11,266.3	$	10,472.8
Current liabilities	$	851.9	$	958.1
Noncurrent liabilities		8,105.5		7,276.8
Equity		2,308.9		2,237.9
Total liabilities and equity	$	11,266.3	$	10,472.8