Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2017

March 31, 2017


					Penske
	Total				Automotive		Guarantor		Non-Guarantor
	Company		Eliminations		Group		Subsidiaries		Subsidiaries
Cash and cash equivalents	$	72.2	$	—	$	—	$	1.5	$	70.7
Accounts receivable, net		852.2		(434.1)		434.1		371.2		481.0
Inventories		3,565.8		—		—		1,896.2		1,669.6
Other current assets		99.3		—		14.9		16.1		68.3
Assets held for sale		—		—		—		—		—
Total current assets		4,589.5		(434.1)		449.0		2,285.0		2,289.6
Property and equipment, net		1,874.7		—		3.7		967.7		903.3
Intangible assets		1,985.4		—		—		1,236.3		749.1
Equity method investments		906.8		—		847.2		—		59.6
Other long-term assets		39.0		(2,379.3)		2,384.7		14.8		18.8
Total assets	$	9,395.4	$	(2,813.4)	$	3,684.6	$	4,503.8	$	4,020.4
Floor plan notes payable	$	2,104.8	$	—	$	—	$	1,123.1	$	981.7
Floor plan notes payable — non-trade		1,296.4		—		154.9		659.7		481.8
Accounts payable		555.9		—		6.7		147.5		401.7
Accrued expenses		413.9		(434.1)		1.0		93.8		753.2
Current portion of long-term debt		48.4		—		—		6.5		41.9
Liabilities held for sale		0.8		—		—		0.8		—
Total current liabilities		4,420.2		(434.1)		162.6		2,031.4		2,660.3
Long-term debt		1,989.0		(180.3)		1,625.1		198.3		345.9
Deferred tax liabilities		608.6		—		—		602.9		5.7
Other long-term liabilities		480.7		—		—		68.2		412.5
Total liabilities		7,498.5		(614.4)		1,787.7		2,900.8		3,424.4
Total equity		1,896.9		(2,199.0)		1,896.9		1,603.0		596.0
Total liabilities and equity	$	9,395.4	$	(2,813.4)	$	3,684.6	$	4,503.8	$	4,020.4

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2016


					Penske
	Total				Automotive		Guarantor		Non-Guarantor
	Company		Eliminations		Group		Subsidiaries		Subsidiaries
Cash and cash equivalents	$	24.0	$	—	$	—	$	9.4	$	14.6
Accounts receivable, net		879.0		(447.0)		447.0		483.6		395.4
Inventories		3,408.2		—		—		1,830.5		1,577.7
Other current assets		73.9		—		14.3		14.6		45.0
Assets held for sale		8.4		—		—		8.4		—
Total current assets		4,393.5		(447.0)		461.3		2,346.5		2,032.7
Property and equipment, net		1,806.5		—		3.3		961.0		842.2
Intangible assets		1,711.3		—		—		1,079.6		631.7
Equity method investments		893.4		—		833.7		—		59.7
Other long-term assets		28.3		(2,215.0)		2,220.6		4.1		18.6
Total assets	$	8,833.0	$	(2,662.0)	$	3,518.9	$	4,391.2	$	3,584.9
Floor plan notes payable	$	2,084.5	$	—	$	—	$	1,178.0	$	906.5
Floor plan notes payable — non-trade		1,233.3		—		156.0		623.2		454.1
Accounts payable		497.4		—		4.9		171.9		320.6
Accrued expenses		360.0		(447.0)		0.9		77.2		728.9
Current portion of long-term debt		48.3		—		—		6.0		42.3
Liabilities held for sale		6.1		—		—		6.1		—
Total current liabilities		4,229.6		(447.0)		161.8		2,062.4		2,452.4
Long-term debt		1,828.8		(175.8)		1,577.6		186.0		241.0
Deferred tax liabilities		564.6		—		—		560.9		3.7
Other long-term liabilities		430.5		—		—		65.2		365.3
Total liabilities		7,053.5		(622.8)		1,739.4		2,874.5		3,062.4
Total equity		1,779.5		(2,039.2)		1,779.5		1,516.7		522.5
Total liabilities and equity	$	8,833.0	$	(2,662.0)	$	3,518.9	$	4,391.2	$	3,584.9

Three Months Ended March 31, 2017


					Penske
	Total				Automotive		Guarantor		Non-Guarantor
	Company		Eliminations		Group		Subsidiaries		Subsidiaries
Revenues	$	5,081.1	$	—	$	—	$	2,667.9	$	2,413.2
Cost of sales		4,306.8		—		—		2,231.2		2,075.6
Gross profit		774.3		—		—		436.7		337.6
Selling, general and administrative expenses		601.7		—		6.0		338.4		257.3
Depreciation		22.4		—		0.4		12.7		9.3
Operating income		150.2		—		(6.4)		85.6		71.0
Floor plan interest expense		(13.7)		—		(1.0)		(8.4)		(4.3)
Other interest expense		(25.0)		—		(16.5)		(2.1)		(6.4)
Equity in earnings of affiliates		13.2		—		12.5		—		0.7
Equity in earnings of subsidiaries		—		(135.7)		135.7		—		—
Income from continuing operations before income taxes		124.7		(135.7)		124.3		75.1		61.0
Income taxes		(41.1)		44.9		(41.1)		(32.6)		(12.3)
Income from continuing operations		83.6		(90.8)		83.2		42.5		48.7
Loss from discontinued operations, net of tax		(0.6)		0.6		(0.6)		(0.6)		—
Net income		83.0		(90.2)		82.6		41.9		48.7
Other comprehensive income (loss), net of tax		26.1		(23.5)		26.1		—		23.5
Comprehensive income		109.1		(113.7)		108.7		41.9		72.2
Less: Comprehensive income attributable to non-controlling interests		0.8		(0.4)		0.4		—		0.8
Comprehensive income attributable to Penske Automotive Group common stockholders	$	108.3	$	(113.3)	$	108.3	$	41.9	$	71.4

CONDENSED CONSOLIDATING STATEMENT OF INCOME

Three Months Ended March 31, 2016


					Penske
	Total				Automotive		Guarantor		Non-Guarantor
	Company		Eliminations		Group		Subsidiaries		Subsidiaries
Revenues	$	4,824.6	$	—	$	—	$	2,389.2	$	2,435.4
Cost of sales		4,100.8		—		—		2,006.2		2,094.6
Gross profit		723.8		—		—		383.0		340.8
Selling, general and administrative expenses		558.9		—		6.1		295.8		257.0
Depreciation		20.8		—		0.4		10.8		9.6
Operating income		144.1		—		(6.5)		76.4		74.2
Floor plan interest expense		(12.8)		—		(0.8)		(6.7)		(5.3)
Other interest expense		(17.2)		—		(13.3)		1.3		(5.2)
Equity in earnings of affiliates		5.5		—		4.2		—		1.3
Equity in earnings of subsidiaries		—		(135.1)		135.1		—		—
Income from continuing operations before income taxes		119.6		(135.1)		118.7		71.0		65.0
Income taxes		(39.4)		44.8		(39.4)		(29.2)		(15.6)
Income from continuing operations		80.2		(90.3)		79.3		41.8		49.4
Loss from discontinued operations, net of tax		—		0.1		(0.1)		0.1		(0.1)
Net income		80.2		(90.2)		79.2		41.9		49.3
Other comprehensive income (loss), net of tax		1.2		0.3		1.2		—		(0.3)
Comprehensive income		81.4		(89.9)		80.4		41.9		49.0
Less: Comprehensive income attributable to non-controlling interests		2.4		(1.5)		1.5		—		2.4
Comprehensive income attributable to Penske Automotive Group common stockholders	$	79.0	$	(88.4)	$	78.9	$	41.9	$	46.6

Three Months Ended March 31, 2017


			Penske
	Total		Automotive		Guarantor		Non-Guarantor
	Company		Group		Subsidiaries		Subsidiaries
Net cash provided by (used in) continuing operating activities	$	198.6	$	(17.1)	$	127.1	$	88.6
Investing activities:
Purchase of equipment and improvements		(36.9)		(0.4)		(20.1)		(16.4)
Acquisitions, net		(314.2)		—		(199.2)		(115.0)
Other		9.0		—		9.0		—
Net cash used in continuing investing activities		(342.1)		(0.4)		(210.3)		(131.4)
Financing activities:
Net borrowings of long-term debt		153.1		47.0		12.7		93.4
Net borrowings (repayments) of floor plan notes payable — non-trade		63.0		(1.2)		59.4		4.8
Repurchases of common stock		(2.7)		(2.7)		—		—
Dividends		(25.6)		(25.6)		—		—
Distributions from (to) parent		—		—		0.7		(0.7)
Net cash provided by continuing financing activities		187.8		17.5		72.8		97.5
Net cash provided by discontinued operations		2.5		—		2.5		—
Effect of exchange rate changes on cash and cash equivalents		1.4		—		—		1.4
Net change in cash and cash equivalents		48.2		—		(7.9)		56.1
Cash and cash equivalents, beginning of period		24.0		—		9.4		14.6
Cash and cash equivalents, end of period	$	72.2	$	—	$	1.5	$	70.7

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Three Months Ended March 31, 2016


			Penske
	Total		Automotive		Guarantor		Non-Guarantor
	Company		Group		Subsidiaries		Subsidiaries
Net cash provided by (used in) continuing operating activities	$	82.6	$	(12.5)	$	104.2	$	(9.1)
Investing activities:
Purchase of equipment and improvements		(46.8)		(0.4)		(26.4)		(20.0)
Acquisitions, net		(0.4)		—		—		(0.4)
Other		(25.7)		—		(0.3)		(25.4)
Net cash used in continuing investing activities		(72.9)		(0.4)		(26.7)		(45.8)
Financing activities:
Net borrowings of long-term debt		111.5		77.0		21.2		13.3
Net borrowings of floor plan notes payable — non-trade		54.9		0.3		28.5		26.1
Repurchases of common stock		(167.9)		(167.9)		—		—
Dividends		(23.3)		(23.3)		—		—
Other		(4.6)		—		—		(4.6)
Distributions from (to) parent		—		126.8		(126.8)		—
Net cash (used in) provided by continuing financing activities		(29.4)		12.9		(77.1)		34.8
Net cash provided by (used in) discontinued operations		2.2		—		(0.4)		2.6
Effect of exchange rate changes on cash and cash equivalents		0.7		—		—		0.7
Net change in cash and cash equivalents		(16.8)		—		—		(16.8)
Cash and cash equivalents, beginning of period		62.4		—		—		62.4
Cash and cash equivalents, end of period	$	45.6	$	—	$	—	$	45.6