Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2017

Condensed Consolidating Financial Information

June 30, 2017


					Penske
	Total				Automotive		Guarantor		Non-Guarantor
	Company		Eliminations		Group		Subsidiaries		Subsidiaries
Cash and cash equivalents	$	20.7	$	—	$	—	$	1.9	$	18.8
Accounts receivable, net		827.7		(456.0)		456.0		392.1		435.6
Inventories		3,711.9		—		—		1,944.9		1,767.0
Other current assets		104.2		—		7.5		19.2		77.5
Assets held for sale		—		—		—		—		—
Total current assets		4,664.5		(456.0)		463.5		2,358.1		2,298.9
Property and equipment, net		1,990.3		—		3.8		984.0		1,002.5
Intangible assets		2,109.0		—		—		1,334.8		774.2
Equity method investments		921.5		—		856.6		—		64.9
Other long-term assets		26.6		(2,542.0)		2,547.5		4.3		16.8
Total assets	$	9,711.9	$	(2,998.0)	$	3,871.4	$	4,681.2	$	4,157.3
Floor plan notes payable	$	2,151.1	$	—	$	—	$	1,126.0	$	1,025.1
Floor plan notes payable — non-trade		1,364.7		—		185.6		678.9		500.2
Accounts payable		559.9		—		6.5		159.8		393.6
Accrued expenses		413.2		(456.0)		1.1		95.7		772.4
Current portion of long-term debt		70.1		—		—		10.0		60.1
Liabilities held for sale		0.7		—		—		0.7		—
Total current liabilities		4,559.7		(456.0)		193.2		2,071.1		2,751.4
Long-term debt		1,955.8		(177.3)		1,661.5		192.7		278.9
Deferred tax liabilities		655.2		—		—		649.4		5.8
Other long-term liabilities		524.5		—		—		61.7		462.8
Total liabilities		7,695.2		(633.3)		1,854.7		2,974.9		3,498.9
Total equity		2,016.7		(2,364.7)		2,016.7		1,706.3		658.4
Total liabilities and equity	$	9,711.9	$	(2,998.0)	$	3,871.4	$	4,681.2	$	4,157.3

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

CONDENSED CONSOLIDATING STATEMENT OF INCOME

Three Months Ended June 30, 2017


					Penske
	Total				Automotive		Guarantor		Non-Guarantor
	Company		Eliminations		Group		Subsidiaries		Subsidiaries
Revenues	$	5,383.4	$	—	$	—	$	3,034.8	$	2,348.6
Cost of sales		4,566.1		—		—		2,550.4		2,015.7
Gross profit		817.3		—		—		484.4		332.9
Selling, general and administrative expenses		622.0		—		6.2		344.5		271.3
Depreciation		23.3		—		0.4		13.2		9.7
Operating income		172.0		—		(6.6)		126.7		51.9
Floor plan interest expense		(15.5)		—		(1.1)		(9.7)		(4.7)
Other interest expense		(26.4)		—		(17.8)		(2.2)		(6.4)
Equity in earnings of affiliates		26.8		—		25.2		—		1.6
Equity in earnings of subsidiaries		—		(156.6)		156.6		—		—
Income from continuing operations before income taxes		156.9		(156.6)		156.3		114.8		42.4
Income taxes		(50.2)		50.3		(50.2)		(41.2)		(9.1)
Income from continuing operations		106.7		(106.3)		106.1		73.6		33.3
Income (loss) from discontinued operations, net of tax		0.2		(0.2)		0.2		0.2		—
Net income		106.9		(106.5)		106.3		73.8		33.3
Other comprehensive income (loss), net of tax		40.5		(37.6)		40.5		—		37.6
Comprehensive income		147.4		(144.1)		146.8		73.8		70.9
Less: Comprehensive income attributable to non-controlling interests		2.4		(1.6)		1.6		—		2.4
Comprehensive income attributable to Penske Automotive Group common stockholders	$	145.0	$	(142.5)	$	145.2	$	73.8	$	68.5

CONDENSED CONSOLIDATING STATEMENT OF INCOME

Three Months Ended June 30, 2016


					Penske
	Total				Automotive		Guarantor		Non-Guarantor
	Company		Eliminations		Group		Subsidiaries		Subsidiaries
Revenues	$	5,254.1	$	—	$	—	$	2,868.6	$	2,385.5
Cost of sales		4,482.8		—		—		2,429.3		2,053.5
Gross profit		771.3		—		—		439.3		332.0
Selling, general and administrative expenses		582.7		—		5.2		326.3		251.2
Depreciation		24.5		—		0.4		11.7		12.4
Operating income		164.1		—		(5.6)		101.3		68.4
Floor plan interest expense		(13.1)		—		(0.5)		(7.7)		(4.9)
Other interest expense		(19.5)		—		(12.3)		(1.9)		(5.3)
Equity in earnings of affiliates		12.0		—		10.5		—		1.5
Equity in earnings of subsidiaries		—		(149.9)		149.9		—		—
Income from continuing operations before income taxes		143.5		(149.9)		142.0		91.7		59.7
Income taxes		(47.3)		49.9		(47.3)		(36.7)		(13.2)
Income from continuing operations		96.2		(100.0)		94.7		55.0		46.5
(Loss) income from discontinued operations, net of tax		(1.2)		1.2		(1.2)		(1.2)		—
Net income		95.0		(98.8)		93.5		53.8		46.5
Other comprehensive income (loss), net of tax		(55.5)		55.7		(55.5)		—		(55.7)
Comprehensive income		39.5		(43.1)		38.0		53.8		(9.2)
Less: Comprehensive income attributable to non-controlling interests		0.8		0.7		(0.7)		0.1		0.7
Comprehensive income attributable to Penske Automotive Group common stockholders	$	38.7	$	(43.8)	$	38.7	$	53.7	$	(9.9)

CONDENSED CONSOLIDATING STATEMENT OF INCOME

Six Months Ended June 30, 2017


					Penske
	Total				Automotive		Guarantor		Non-Guarantor
	Company		Eliminations		Group		Subsidiaries		Subsidiaries
Revenues	$	10,464.5	$	—	$	—	$	5,702.7	$	4,761.8
Cost of sales		8,872.9		—		—		4,781.6		4,091.3
Gross profit		1,591.6		—		—		921.1		670.5
Selling, general and administrative expenses		1,223.7		—		12.2		682.9		528.6
Depreciation		45.7		—		0.8		25.9		19.0
Operating income		322.2		—		(13.0)		212.3		122.9
Floor plan interest expense		(29.2)		—		(2.1)		(18.1)		(9.0)
Other interest expense		(51.4)		—		(34.3)		(4.3)		(12.8)
Equity in earnings of affiliates		40.0		—		37.7		—		2.3
Equity in earnings of subsidiaries		—		(292.3)		292.3		—		—
Income from continuing operations before income taxes		281.6		(292.3)		280.6		189.9		103.4
Income taxes		(91.3)		95.2		(91.3)		(73.8)		(21.4)
Income from continuing operations		190.3		(197.1)		189.3		116.1		82.0
(Loss) income from discontinued operations, net of tax		(0.4)		0.4		(0.4)		(0.4)		—
Net income		189.9		(196.7)		188.9		115.7		82.0
Other comprehensive income (loss), net of tax		66.6		(61.1)		66.6		—		61.1
Comprehensive income		256.5		(257.8)		255.5		115.7		143.1
Less: Comprehensive income attributable to non-controlling interests		3.2		(2.0)		2.0		—		3.2
Comprehensive income attributable to Penske Automotive Group common stockholders	$	253.3	$	(255.8)	$	253.5	$	115.7	$	139.9

CONDENSED CONSOLIDATING STATEMENT OF INCOME

Six Months Ended June 30, 2016


					Penske
	Total				Automotive		Guarantor		Non-Guarantor
	Company		Eliminations		Group		Subsidiaries		Subsidiaries
Revenues	$	10,078.7	$	—	$	—	$	5,257.8	$	4,820.9
Cost of sales		8,583.6		—		—		4,435.5		4,148.1
Gross profit		1,495.1		—		—		822.3		672.8
Selling, general and administrative expenses		1,141.6		—		11.3		622.1		508.2
Depreciation		45.3		—		0.8		22.5		22.0
Operating income		308.2		—		(12.1)		177.7		142.6
Floor plan interest expense		(25.9)		—		(1.3)		(14.4)		(10.2)
Other interest expense		(36.7)		—		(25.6)		(0.6)		(10.5)
Equity in earnings of affiliates		17.5		—		14.7		—		2.8
Equity in earnings of subsidiaries		—		(285.0)		285.0		—		—
Income from continuing operations before income taxes		263.1		(285.0)		260.7		162.7		124.7
Income taxes		(86.7)		94.7		(86.7)		(65.9)		(28.8)
Income from continuing operations		176.4		(190.3)		174.0		96.8		95.9
(Loss) income from discontinued operations, net of tax		(1.2)		1.3		(1.3)		(1.1)		(0.1)
Net income		175.2		(189.0)		172.7		95.7		95.8
Other comprehensive income (loss), net of tax		(54.3)		56.0		(54.3)		—		(56.0)
Comprehensive income		120.9		(133.0)		118.4		95.7		39.8
Less: Comprehensive income attributable to non-controlling interests		3.2		(0.8)		0.8		0.1		3.1
Comprehensive income attributable to Penske Automotive Group common stockholders	$	117.7	$	(132.2)	$	117.6	$	95.6	$	36.7

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Six Months Ended June 30, 2017


			Penske
	Total		Automotive		Guarantor		Non-Guarantor
	Company		Group		Subsidiaries		Subsidiaries
Net cash provided by (used in) continuing operating activities	$	320.5	$	(50.5)	$	252.6	$	118.4
Investing activities:
Purchase of equipment and improvements		(113.4)		(1.4)		(49.4)		(62.6)
Acquisitions, net		(431.9)		—		(316.9)		(115.0)
Other		15.0		6.0		9.0		—
Net cash (used in) provided by continuing investing activities		(530.3)		4.6		(357.3)		(177.6)
Financing activities:
Net borrowings of long-term debt		137.9		83.0		10.8		44.1
Net borrowings of floor plan notes payable — non-trade		131.3		29.6		80.2		21.5
Repurchases of common stock		(8.5)		(8.5)		—		—
Dividends		(52.4)		(52.4)		—		—
Other		(5.8)		(5.8)		—		—
Distributions from (to) parent		—		—		3.7		(3.7)
Net cash provided by continuing financing activities		202.5		45.9		94.7		61.9
Net cash provided by discontinued operations		2.5		—		2.5		—
Effect of exchange rate changes on cash and cash equivalents		1.5		—		—		1.5
Net change in cash and cash equivalents		(3.3)		—		(7.5)		4.2
Cash and cash equivalents, beginning of period		24.0		—		9.4		14.6
Cash and cash equivalents, end of period	$	20.7	$	—	$	1.9	$	18.8

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Six Months Ended June 30, 2016


			Penske
	Total		Automotive		Guarantor		Non-Guarantor
	Company		Group		Subsidiaries		Subsidiaries
Net cash provided by (used in) continuing operating activities	$	270.6	$	(84.0)	$	109.5	$	245.1
Investing activities:
Purchase of equipment and improvements		(136.7)		(0.4)		(149.9)		13.6
Acquisitions, net		(65.4)		—		(65.1)		(0.3)
Other		(25.0)		—		0.4		(25.4)
Net cash used in continuing investing activities		(227.1)		(0.4)		(214.6)		(12.1)
Financing activities:
Issuance of 5.50% senior subordinated notes		500.0		500.0		—		—
Net (repayments) borrowings of long-term debt		(99.1)		(160.0)		36.9		24.0
Net (repayments) borrowings of floor plan notes payable — non-trade		(163.0)		(149.7)		209.3		(222.6)
Payment of debt issuance costs		(6.6)		(6.6)		—		—
Repurchases of common stock		(173.6)		(173.6)		—		—
Dividends		(46.4)		(46.4)		—		—
Other		(15.9)		(6.1)		(5.2)		(4.6)
Distributions from (to) parent		—		126.8		(125.0)		(1.8)
Net cash (used in) provided by continuing financing activities		(4.6)		84.4		116.0		(205.0)
Net cash provided by discontinued operations		2.9		—		0.3		2.6
Effect of exchange rate changes on cash and cash equivalents		(6.7)		—		—		(6.7)
Net change in cash and cash equivalents		35.1		—		11.2		23.9
Cash and cash equivalents, beginning of period		62.4		—		—		62.4
Cash and cash equivalents, end of period	$	97.5	$	—	$	11.2	$	86.3