Business Combinations

3 Months Ended

Mar. 31, 2017

Business Combinations

Business Combinations

3. Business Combinations

We acquired CarSense, a stand-alone specialty retailer of used vehicles in the U.S. representing five locations, acquired CarShop,a stand-alone specialty retailer of used vehicles in the U.K. representing five locations, and acquired four retail automotive franchises, during the three months ended March 31, 2017. During the three months ended March 31, 2016, we acquired one retail automotive franchise. 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 three months ended March 31, 2017 and 2016 follows:

	March 31,
	2017		2016
Accounts receivable	$	6.9	$	—
Inventory		109.5		0.1
Other current assets		2.5		—
Property and equipment		13.2		0.1
Indefinite-lived intangibles		263.0		4.6
Other non-current assets		0.1		—
Current liabilities		(22.0)		(4.4)
Non-current liabilities		(2.8)		—
Total consideration		370.4		0.4
Consideration transferred through common stock issuance		(32.4)		—
Contingent consideration		(20.0)		—
Seller financed/assumed debt		(3.8)		—
Total cash used in acquisitions	$	314.2	$	0.4

The following unaudited consolidated pro forma results of operations of PAG for the three months ended March 31, 2017 and 2016 give effect to acquisitions consummated during 2017 and 2016 as if they had occurred effective at the beginning of the periods:

	Three Months Ended March 31,
	2017		2016
Revenues	$	5,150.5	$	5,246.9
Income from continuing operations		84.3		85.2
Net income		83.8		85.2
Income from continuing operations per diluted common share	$	0.98	$	0.97
Net income per diluted common share	$	0.98	$	0.96