Business Combinations

12 Months Ended

Dec. 31, 2017

Business Combinations

Business Combinations

3. Business Combinations

During 2017,  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 retail locations and a vehicle preparation center, and acquired eight retail automotive franchises. The companies acquired in 2017 generated $1,046.4 million of revenue and $37.1 million of pre-tax income from our date of acquisition through December 31, 2017. During 2016, we acquired twenty retail automotive franchises and seven 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 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, 2017 and 2016 follows:

	December 31,
	2017		2016
Accounts receivable	$	11.1	$	3.9
Inventory		139.9		80.5
Other current assets		2.9		0.1
Property and equipment		21.8		16.4
Indefinite-lived intangibles		365.6		51.1
Other noncurrent assets		0.1		2.7
Current liabilities		(33.6)		(9.2)
Noncurrent liabilities		(1.9)		(4.7)
Total consideration	$	505.9	$	140.8
Consideration transferred through common stock issuance		(32.4)		—
Contingent consideration		(20.0)		—
Seller financed/assumed debt		(3.8)		—
Total cash used in acquisitions	$	449.7	$	140.8

The following unaudited consolidated pro forma results of operations of PAG for the years ended December 31, 2017 and 2016 give effect to acquisitions consummated during 2017 and 2016 as if they had occurred on January 1, 2016:

	Year Ended December 31,
	2017		2016
Revenues	$	21,548.1	$	21,766.5
Income from continuing operations		617.0		370.7
Net income		616.8		369.6
Income from continuing operations per diluted common share	$	7.18	$	4.31
Net income per diluted common share	$	7.18	$	4.30