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Business Combinations
 9 Months Ended
Sep. 30, 2016
Business Combinations  
Business Combinations

3. Business Combinations

 

We acquired thirteen retail automotive franchises and five retail commercial truck dealerships during the nine months ended September 30, 2016. During the nine months ended September 30, 2015, we acquired one retail automotive franchise and two retail commercial truck dealerships and made an additional investment in the Jacobs Group, discussed above, to gain control of that joint venture which was previously accounted for 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 condensed 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 nine months ended September 30, 2016 and 2015 follows:

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

    

2016

    

2015

    

Accounts receivable

 

$
3.9

 

$
52.0

 

Inventory

 

 
63.4

 

 
171.7

 

Other current assets

 

 
0.2

 

 
1.3

 

Property and equipment

 

 
12.1

 

 
72.1

 

Indefinite-lived intangibles

 

 
32.9

 

 
68.2

 

Other non-current assets

 

 
2.7

 

 
1.3

 

Current liabilities

 

 
(4.4)

 

 
(42.1)

 

Non-current liabilities

 

 
(4.8)

 

 
(67.8)

 

Total consideration

 

 
106.0

 

 
256.7

 

Seller financed/assumed debt

 

 

 —

 

 
(2.6)

 

Seller assumed floor plan

 

 

 —

 

 
(118.3)

 

Fair value of previously held interest

 

 

 —

 

 
(28.0)

 

Fair value of non-controlling interest

 

 

 —

 

 
(22.4)

 

Total cash used in acquisitions

 

$
106.0

 

$
85.4

 

 

The following unaudited consolidated pro forma results of operations of PAG for the three and nine months ended September 30, 2016 and 2015 give effect to acquisitions consummated during 2016 and 2015 as if they had occurred effective at the beginning of the periods:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

    

2016

    

2015

 

2016

    

2015

    

Revenues

 

$
5,152.0

 

$
5,232.2

    

$
15,425.8

 

$
15,314.0

 

Income from continuing operations

 

 
87.4

 

 
88.1

 

 
262.4

 

 
262.1

 

Net income

 

 
87.5

 

 
88.1

 

 
261.3

 

 
261.0

 

Income from continuing operations per diluted common share

 

$
1.03

 

$
0.98

 

$
3.04

 

$
2.90

 

Net income per diluted common share

 

$
1.03

 

$
0.98

 

$
3.03

 

$
2.89