Business Combinations

12 Months Ended

Dec. 31, 2015

Business Combinations

Business Combinations

3. Business Combinations

During 2015, we acquired five retail automotive franchises and two retail commercial truck dealerships, and made an additional investment to gain control of an automotive joint venture previously accounted for under the equity method. The companies acquired in 2015 generated $553.9 million of revenue and $12.5 million of pre-tax income from our date of acquisition through December 31, 2015. During 2014, in addition to acquiring two automotive retail franchises, we acquired a distributor of diesel and gas engines and power systems to complement our commercial vehicle distribution business, acquired a controlling interest in a commercial truck dealership group in the U.S., as well as made an additional investment in an entity previously accounted under the equity method. Our financial statements include the results of operations of the acquired entities from the date of acquisition. The fair value of the assets acquired and liabilities assumed have been recorded in our consolidated financial statements, and may be subject to adjustment pending completion of final valuation. A summary of the aggregate consideration paid and the aggregate amounts of the assets acquired and liabilities assumed for the years ended December 31, 2015 and 2014 follows:

	December 31,
	2015		2014
Accounts receivable	$	52.0	$	66.2
Inventory		198.6		197.9
Other current assets		3.2		5.9
Property and equipment		98.1		95.2
Indefinite-lived intangibles		115.6		266.4
Other non-current assets		2.3		10.7
Current liabilities		(66.0)		(83.4)
Non-current liabilities		(75.5)		(12.1)
Total consideration	$	328.3	$	546.8
Seller financed/assumed debt		(2.6)		(134.4)
Seller assumed floorplan		(118.3)		—
Fair value of previously held interest		(28.0)		(47.4)
Fair value of non-controlling interest		(22.5)		(10.0)
Total cash used in acquisitions	$	156.9	$	355.0

The following unaudited consolidated pro forma results of operations of PAG for the years ended December 31, 2015 and 2014 give effect to acquisitions consummated during 2015 and 2014 as if they had occurred on January 1, 2014:

	Year Ended December 31,
	2015		2014
Revenues	$	19,905.7	$	19,128.7
Income from continuing operations		331.4		311.9
Net income		328.0		297.2
Income from continuing operations per diluted common share	$	3.69	$	3.45
Net income per diluted common share	$	3.65	$	3.29