Business Combinations

6 Months Ended

Jun. 30, 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 six retail automotive franchises during the six months ended June 30, 2017. During the six months ended June 30, 2016, we acquired one retail automotive franchise and five retail commercial truck dealerships. 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 six months ended June 30, 2017 and 2016 follows:

	June 30,
	2017		2016
Accounts receivable	$	6.9	$	3.9
Inventory		130.3		45.2
Other current assets		2.5		0.1
Property and equipment		12.8		0.6
Indefinite-lived intangibles		362.1		24.8
Other non-current assets		0.1		—
Current liabilities		(23.8)		(9.2)
Non-current liabilities		(2.8)		—
Total consideration		488.1		65.4
Consideration transferred through common stock issuance		(32.4)		—
Contingent consideration		(20.0)		—
Seller financed/assumed debt		(3.8)		—
Total cash used in acquisitions	$	431.9	$	65.4

The following unaudited consolidated pro forma results of operations of PAG for the three and six months ended June 30, 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 June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Revenues	$	5,383.4	$	5,693.4	$	10,595.7	$	11,000.0
Income from continuing operations		106.0		101.5		191.2		188.1
Net income		106.2		100.3		190.8		186.9
Income from continuing operations per diluted common share	$	1.23	$	1.19	$	2.23	$	2.17
Net income per diluted common share	$	1.23	$	1.18	$	2.22	$	2.15