Business Combinations

12 Months Ended

Dec. 31, 2016

Business Combinations

Business Combinations

3. Business Combinations

During 2016, we acquired twenty retail automotive franchises and seven retail commercial truck dealerships. The companies acquired in 2016 generated $315.9 million of revenue and $0.5 million of pre-tax income from our date of acquisition through December 31, 2016. During 2015, we acquired five retail automotive franchises and two retail commercial truck dealerships, and made an additional investment in the Jacobs Group, discussed previously, 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 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, 2016 and 2015 follows:

	December 31,
	2016		2015
Accounts receivable	$	3.9	$	52.0
Inventory		80.5		198.6
Other current assets		0.1		3.2
Property and equipment		16.4		98.1
Indefinite-lived intangibles		51.1		115.6
Other non-current assets		2.7		2.3
Current liabilities		(9.2)		(66.0)
Non-current liabilities		(4.7)		(75.5)
Total consideration	$	140.8	$	328.3
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		—		(22.5)
Total cash used in acquisitions	$	140.8	$	156.9

The following unaudited consolidated pro forma results of operations of PAG for the years ended December 31, 2016 and 2015 give effect to acquisitions consummated during 2016 and 2015 as if they had occurred on January 1, 2015:

	Year Ended December 31,
	2016		2015
Revenues	$	20,513.1	$	20,646.3
Income from continuing operations		347.1		338.8
Net income		346.0		335.3
Income from continuing operations per diluted common share	$	4.04	$	3.77
Net income per diluted common share	$	4.02	$	3.74