Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2015

Condensed Consolidating Financial Information

December 31, 2015


					Penske
	Total				Automotive		Guarantor		Non‑Guarantor
	Company		Eliminations		Group		Subsidiaries		Subsidiaries
	(In millions)
Cash and cash equivalents	$	62.4	$	—	$	—	$	—	$	62.4
Accounts receivable, net		782.3		(430.4)		430.4		400.8		381.5
Inventories		3,463.5		—		—		1,650.5		1,813.0
Other current assets		86.8		—		3.9		29.5		53.4
Assets held for sale		13.1		—		—		8.9		4.2
Total current assets		4,408.1		(430.4)		434.3		2,089.7		2,314.5
Property and equipment, net		1,520.1		—		4.0		822.0		694.1
Intangible assets		1,730.8		—		—		878.5		852.3
Equity method investments		336.4		—		298.2		—		38.2
Other long-term assets		27.3		(2,253.4)		2,268.0		7.2		5.5
Total assets	$	8,022.7	$	(2,683.8)	$	3,004.5	$	3,797.4	$	3,904.6
Floor plan notes payable	$	2,247.2	$	—	$	—	$	1,295.0	$	952.2
Floor plan notes payable—non-trade		1,132.4		—		154.7		339.8		637.9
Accounts payable		493.8		—		4.8		143.3		345.7
Accrued expenses		378.1		(430.4)		0.1		112.3		696.1
Current portion of long-term debt		29.2		—		—		6.9		22.3
Liabilities held for sale		6.2		—		—		4.4		1.8
Total current liabilities		4,286.9		(430.4)		159.6		1,901.7		2,656.0
Long-term debt		1,255.1		(256.4)		1,010.0		109.2		392.3
Deferred tax liabilities		433.4		—		—		413.4		20.0
Other long-term liabilities		212.4		—		—		68.9		143.5
Total liabilities		6,187.8		(686.8)		1,169.6		2,493.2		3,211.8
Total equity		1,834.9		(1,997.0)		1,834.9		1,304.2		692.8
Total liabilities and equity	$	8,022.7	$	(2,683.8)	$	3,004.5	$	3,797.4	$	3,904.6

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2014


					Penske
	Total				Automotive		Guarantor		Non‑Guarantor
	Company		Eliminations		Group		Subsidiaries		Subsidiaries
	(In millions)
Cash and cash equivalents	$	36.3	$	—	$	—	$	—	$	36.3
Accounts receivable, net		707.1		(409.6)		409.6		392.6		314.5
Inventories		2,836.4		—		—		1,481.5		1,354.9
Other current assets		124.8		—		4.5		58.3		62.0
Assets held for sale		155.6		—		—		150.9		4.7
Total current assets		3,860.2		(409.6)		414.1		2,083.3		1,772.4
Property and equipment, net		1,331.6		—		4.3		754.6		572.7
Intangible assets		1,657.0		—		—		817.9		839.1
Equity method investments		352.8		—		285.5		—		67.3
Other long-term assets		26.6		(1,990.8)		2,005.0		4.4		8.0
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		933.8		—		86.8		398.1		448.9
Accounts payable		422.5		—		2.9		208.3		211.3
Accrued expenses		316.0		(409.6)		—		123.3		602.3
Current portion of long-term debt		37.2		—		—		4.6		32.6
Liabilities held for sale		108.2		—		—		105.9		2.3
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

Year Ended December 31, 2015


					Penske
	Total				Automotive		Guarantor		Non‑Guarantor
	Company		Eliminations		Group		Subsidiaries		Subsidiaries
	(In millions)
Revenues	$	19,284.9	$	—	$	—	$	10,152.4	$	9,132.5
Cost of sales		16,417.4		—		—		8,582.4		7,835.0
Gross profit		2,867.5		—		—		1,570.0		1,297.5
Selling, general and administrative expenses		2,223.0		—		23.6		1,193.0		1,006.4
Depreciation		78.0		—		1.6		42.0		34.4
Operating income		566.5		—		(25.2)		335.0		256.7
Floor plan interest expense		(44.5)		—		(2.8)		(22.0)		(19.7)
Other interest expense		(69.4)		—		(45.6)		(5.3)		(18.5)
Equity in earnings of affiliates		39.3		—		34.8		—		4.5
Equity in earnings of subsidiaries		—		(527.0)		527.0		—		—
Income from continuing operations before income taxes		491.9		(527.0)		488.2		307.7		223.0
Income taxes		(158.0)		170.5		(158.0)		(117.4)		(53.1)
Income from continuing operations		333.9		(356.5)		330.2		190.3		169.9
(Loss) income from discontinued operations, net of tax		(3.5)		4.0		(4.0)		(1.4)		(2.1)
Net income		330.4		(352.5)		326.2		188.9		167.8
Other comprehensive income (loss), net of tax		(70.3)		62.9		(70.3)		—		(62.9)
Comprehensive income		260.1		(289.6)		255.9		188.9		104.9
Less: Comprehensive income attributable to non-controlling interests		3.2		1.1		(1.1)		—		3.2
Comprehensive income attributable to Penske Automotive Group common stockholders	$	256.9	$	(290.7)	$	257.0	$	188.9	$	101.7

CONDENSED CONSOLIDATING STATEMENT OF INCOME

Year Ended December 31, 2014


					Penske
	Total				Automotive		Guarantor		Non‑Guarantor
	Company		Eliminations		Group		Subsidiaries		Subsidiaries
	(In millions)
Revenues	$	17,232.0	$	—	$	—	$	9,589.0	$	7,643.0
Cost of sales		14,652.8		—		—		8,092.5		6,560.3
Gross profit		2,579.2		—		—		1,496.5		1,082.7
Selling, general and administrative expenses		2,008.6		—		28.7		1,133.9		846.0
Depreciation		70.2		—		1.3		37.8		31.1
Operating income		500.4		—		(30.0)		324.8		205.6
Floor plan interest expense		(46.5)		—		(10.4)		(20.7)		(15.4)
Other interest expense		(52.8)		—		(29.8)		(5.0)		(18.0)
Gain on investment		16.0		—		16.0		—		—
Equity in earnings of affiliates		40.8		—		36.5		—		4.3
Equity in earnings of subsidiaries		—		(473.2)		473.2		—		—
Income from continuing operations before income taxes		457.9		(473.2)		455.5		299.1		176.5
Income taxes		(153.1)		157.9		(152.0)		(110.3)		(48.7)
Income from continuing operations		304.8		(315.3)		303.5		188.8		127.8
(Loss) income from discontinued operations, net of tax		(14.7)		16.8		(16.8)		(2.4)		(12.3)
Net income		290.1		(298.5)		286.7		186.4		115.5
Other comprehensive income (loss), net of tax		(66.2)		62.5		(66.2)		4.7		(67.2)
Comprehensive income		223.9		(236.0)		220.5		191.1		48.3
Less: Comprehensive income attributable to non-controlling interests		2.1		1.4		(1.4)		—		2.1
Comprehensive income attributable to Penske Automotive Group common stockholders	$	221.8	$	(237.4)	$	221.9	$	191.1	$	46.2

CONDENSED CONSOLIDATING STATEMENT OF INCOME

Year Ended December 31, 2013


					Penske
	Total				Automotive		Guarantor		Non‑Guarantor
	Company		Eliminations		Group		Subsidiaries		Subsidiaries
	(In millions)
Revenues	$	14,482.5	$	—	$	—	$	8,534.2	$	5,948.3
Cost of sales		12,281.5		—		—		7,178.5		5,103.0
Gross profit		2,201.0		—		—		1,355.7		845.3
Selling, general and administrative expenses		1,711.6		—		21.4		1,025.9		664.3
Depreciation		59.6		—		1.8		33.8		24.0
Operating income		429.8		—		(23.2)		296.0		157.0
Floor plan interest expense		(43.4)		—		(9.6)		(19.5)		(14.3)
Other interest expense		(45.3)		—		(26.1)		(1.9)		(17.3)
Equity in earnings of affiliates		30.7		—		25.5		—		5.2
Equity in earnings of subsidiaries		—		(406.1)		406.1		—		—
Income from continuing operations before income taxes		371.8		(406.1)		372.7		274.6		130.6
Income taxes		(123.3)		135.0		(123.9)		(100.4)		(34.0)
Income from continuing operations		248.5		(271.1)		248.8		174.2		96.6
(Loss) income from discontinued operations, net of tax		(2.8)		4.6		(4.6)		0.9		(3.7)
Net income		245.7		(266.5)		244.2		175.1		92.9
Other comprehensive income (loss), net of tax		18.9		(9.8)		18.9		4.0		5.8
Comprehensive income		264.6		(276.3)		263.1		179.1		98.7
Less: Comprehensive income attributable to non-controlling interests		2.0		(0.5)		0.5		—		2.0
Comprehensive income attributable to Penske Automotive Group common stockholders	$	262.6	$	(275.8)	$	262.6	$	179.1	$	96.7

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2015


			Penske
	Total		Automotive		Guarantor		Non‑Guarantor
	Company		Group		Subsidiaries		Subsidiaries
	(In millions)
Net cash provided by (used in) continuing operating activities	$	391.5	$	(4.9)	$	230.3	$	166.1
Investing activities:
Purchase of equipment and improvements		(199.5)		(1.3)		(119.7)		(78.5)
Acquisitions, net		(156.9)		—		(93.2)		(63.7)
Other		4.7		—		—		4.7
Net cash used in continuing investing activities		(351.7)		(1.3)		(212.9)		(137.5)
Financing activities:
Net (repayments) borrowings of long-term debt		(62.1)		72.0		(4.9)		(129.2)
Net borrowings (repayments) of floor plan notes payable—non-trade		154.2		67.9		(58.3)		144.6
Payment of deferred financing fees		(1.8)		—		—		(1.8)
Repurchases of common stock		(48.9)		(48.9)		—		—
Dividends		(84.8)		(84.8)		—		—
Other		(5.9)		—		—		(5.9)
Distributions from (to) parent		—		—		8.8		(8.8)
Net cash (used in) provided by continuing financing activities		(49.3)		6.2		(54.4)		(1.1)
Net cash provided by discontinued operations		37.0		—		37.0		—
Effect of exchange rate changes on cash and cash equivalents		(1.4)		—		—		(1.4)
Net change in cash and cash equivalents		26.1		—		—		26.1
Cash and cash equivalents, beginning of period		36.3		—		—		36.3
Cash and cash equivalents, end of period	$	62.4	$	—	$	—	$	62.4

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2014


			Penske
	Total		Automotive		Guarantor		Non‑Guarantor
	Company		Group		Subsidiaries		Subsidiaries
	(In millions)
Net cash provided by (used in) continuing operating activities	$	359.3	$	(70.7)	$	209.7	$	220.3
Investing activities:
Purchase of equipment and improvements		(176.1)		(1.7)		(101.2)		(73.2)
Acquisitions, net		(355.0)		—		(175.3)		(179.7)
Other		(22.6)		4.2		—		(26.8)
Net cash (used in) provided by continuing investing activities		(553.7)		2.5		(276.5)		(279.7)
Financing activities:
Issuance of 5.375% senior subordinated notes		300.0		300.0		—		—
Net (repayments) borrowings of long-term debt		(71.3)		(100.0)		9.0		19.7
Net borrowings (repayments) of floor plan notes payable—non-trade		26.1		(41.4)		35.9		31.6
Payment of deferred financing fees		(4.4)		(4.4)		—		—
Repurchases of common stock		(15.5)		(15.5)		—		—
Dividends		(70.5)		(70.5)		—		—
Other		0.3		—		—		0.3
Distributions from (to) parent		—		—		5.5		(5.5)
Net cash provided by continuing financing activities		164.7		68.2		50.4		46.1
Net cash provided by discontinued operations		17.0		—		3.3		13.7
Effect of exchange rate changes on cash and cash equivalents		(1.3)		—		—		(1.3)
Net change in cash and cash equivalents		(14.0)		—		(13.1)		(0.9)
Cash and cash equivalents, beginning of period		50.3		—		13.1		37.2
Cash and cash equivalents, end of period	$	36.3	$	—	$	—	$	36.3

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2013


			Penske
	Total		Automotive		Guarantor		Non‑Guarantor
	Company		Group		Subsidiaries		Subsidiaries
	(In millions)
Net cash provided by continuing operating activities	$	298.9	$	46.5	$	18.4	$	234.0
Investing activities:
Purchase of equipment and improvements		(175.0)		(1.3)		(116.7)		(57.0)
Acquisitions, net		(314.0)		—		(103.4)		(210.6)
Other		(2.6)		(17.5)		10.7		4.2
Net cash used in continuing investing activities		(491.6)		(18.8)		(209.4)		(263.4)
Financing activities:
Net borrowings of long-term debt		81.1		28.0		2.7		50.4
Net borrowings (repayments) of floor plan notes payable—non-trade		191.1		16.1		181.1		(6.1)
Repurchases of common stock		(15.8)		(15.8)		—		—
Dividends		(56.0)		(56.0)		—		—
Other		0.2		—		—		0.2
Distributions from (to) parent		—		—		0.9		(0.9)
Net cash provided by (used in) continuing financing activities		200.6		(27.7)		184.7		43.6
Net cash (used in) provided by discontinued operations		(1.5)		—		(15.4)		13.9
Net change in cash and cash equivalents		6.4		—		(21.7)		28.1
Cash and cash equivalents, beginning of period		43.9		—		34.8		9.1
Cash and cash equivalents, end of period	$	50.3	$	—	$	13.1	$	37.2