Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2018

March 31, 2018


					Penske
	Total				Automotive		Guarantor		Non-Guarantor
	Company		Eliminations		Group		Subsidiaries		Subsidiaries
Cash and cash equivalents	$	52.8	$	—	$	—	$	—	$	52.8
Accounts receivable, net		1,035.4		(466.7)		466.7		444.0		591.4
Inventories		3,972.2		—		—		1,878.3		2,093.9
Other current assets		105.0		—		8.1		17.7		79.2
Total current assets		5,165.4		(466.7)		474.8		2,340.0		2,817.3
Property and equipment, net		2,173.5		—		3.0		997.7		1,172.8
Intangible assets		2,213.2		—		—		1,328.6		884.6
Equity method investments		1,276.2		—		1,204.7		—		71.5
Other long-term assets		14.7		(2,775.6)		2,780.8		4.3		5.2
Total assets	$	10,843.0	$	(3,242.3)	$	4,463.3	$	4,670.6	$	4,951.4
Floor plan notes payable	$	2,355.6	$	—	$	—	$	1,203.1	$	1,152.5
Floor plan notes payable — non-trade		1,413.8		—		197.5		558.8		657.5
Accounts payable		720.5		—		4.2		168.2		548.1
Accrued expenses		563.9		(466.7)		1.0		180.5		849.1
Current portion of long-term debt		84.3		—		—		4.5		79.8
Liabilities held for sale		0.7		—		—		0.7		—
Total current liabilities		5,138.8		(466.7)		202.7		2,115.8		3,287.0
Long-term debt		2,136.9		(152.0)		1,766.2		170.6		352.1
Deferred tax liabilities		505.5		—		—		503.3		2.2
Other long-term liabilities		567.4		—		—		64.0		503.4
Total liabilities		8,348.6		(618.7)		1,968.9		2,853.7		4,144.7
Total equity		2,494.4		(2,623.6)		2,494.4		1,816.9		806.7
Total liabilities and equity	$	10,843.0	$	(3,242.3)	$	4,463.3	$	4,670.6	$	4,951.4

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2017


					Penske
	Total				Automotive		Guarantor		Non-Guarantor
	Company		Eliminations		Group		Subsidiaries		Subsidiaries
Cash and cash equivalents	$	45.7	$	—	$	—	$	14.8	$	30.9
Accounts receivable, net		954.9		(463.6)		463.6		523.8		431.1
Inventories		3,944.1		—		—		1,935.0		2,009.1
Other current assets		81.8		—		7.3		16.8		57.7
Total current assets		5,026.5		(463.6)		470.9		2,490.4		2,528.8
Property and equipment, net		2,108.6		—		3.3		1,032.9		1,072.4
Intangible assets		2,134.5		—		—		1,334.6		799.9
Equity method investments		1,256.6		—		1,186.9		—		69.7
Other long-term assets		14.4		(2,772.7)		2,777.8		4.6		4.7
Total assets	$	10,540.6	$	(3,236.3)	$	4,438.9	$	4,862.5	$	4,475.5
Floor plan notes payable	$	2,343.2	$	—	$	—	$	1,272.4	$	1,070.8
Floor plan notes payable — non-trade		1,418.6		—		196.6		601.9		620.1
Accounts payable		641.6		—		3.9		194.4		443.3
Accrued expenses		523.5		(463.6)		1.0		165.2		820.9
Current portion of long-term debt		72.8		—		—		5.5		67.3
Liabilities held for sale		0.7		—		—		0.7		—
Total current liabilities		5,000.4		(463.6)		201.5		2,240.1		3,022.4
Long-term debt		2,090.4		(150.2)		1,809.4		191.6		239.6
Deferred tax liabilities		481.5		—		—		480.1		1.4
Other long-term liabilities		540.3		—		—		64.7		475.6
Total liabilities		8,112.6		(613.8)		2,010.9		2,976.5		3,739.0
Total equity		2,428.0		(2,622.5)		2,428.0		1,886.0		736.5
Total liabilities and equity	$	10,540.6	$	(3,236.3)	$	4,438.9	$	4,862.5	$	4,475.5

Three Months Ended March 31, 2018


					Penske
	Total				Automotive		Guarantor		Non-Guarantor
	Company		Eliminations		Group		Subsidiaries		Subsidiaries
Revenues	$	5,746.9	$	—	$	—	$	2,856.5	$	2,890.4
Cost of sales		4,882.5		—		—		2,395.2		2,487.3
Gross profit		864.4		—		—		461.3		403.1
Selling, general and administrative expenses		663.1		—		6.5		343.0		313.6
Depreciation		25.6		—		0.4		13.6		11.6
Operating income		175.7		—		(6.9)		104.7		77.9
Floor plan interest expense		(18.9)		—		(1.6)		(11.3)		(6.0)
Other interest expense		(29.8)		—		(20.8)		(1.9)		(7.1)
Equity in earnings of affiliates		17.3		—		16.0		—		1.3
Equity in earnings of subsidiaries		—		(157.9)		157.9		—		—
Income from continuing operations before income taxes		144.3		(157.9)		144.6		91.5		66.1
Income taxes		(36.6)		40.0		(36.6)		(25.2)		(14.8)
Income from continuing operations		107.7		(117.9)		108.0		66.3		51.3
Income from discontinued operations, net of tax		0.1		(0.1)		0.1		0.1		—
Net income		107.8		(118.0)		108.1		66.4		51.3
Other comprehensive income, net of tax		31.8		(31.5)		31.8		—		31.5
Comprehensive income		139.6		(149.5)		139.9		66.4		82.8
Less: Comprehensive loss attributable to non-controlling interests		(0.3)		—		—		—		(0.3)
Comprehensive income attributable to Penske Automotive Group common stockholders	$	139.9	$	(149.5)	$	139.9	$	66.4	$	83.1

CONDENSED CONSOLIDATING STATEMENT OF INCOME

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, 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

Three Months Ended March 31, 2018


			Penske
	Total		Automotive		Guarantor		Non-Guarantor
	Company		Group		Subsidiaries		Subsidiaries
Net cash provided by (used in) continuing operating activities	$	174.8	$	(23.0)	$	137.0	$	60.8
Investing activities:
Purchase of equipment and improvements		(64.7)		(1.1)		(38.6)		(25.0)
Proceeds from sale of dealerships		58.4		—		55.9		2.5
Acquisitions, net		(156.5)		—		—		(156.5)
Other		(6.3)		(1.6)		—		(4.7)
Net cash (used in) provided by continuing investing activities		(169.1)		(2.7)		17.3		(183.7)
Financing activities:
Net borrowings (repayments) of long-term debt		84.6		(44.0)		9.3		119.3
Net (repayments) borrowings of floor plan notes payable — non-trade		(4.8)		1.0		(43.2)		37.4
Repurchases of common stock		(50.0)		(50.0)		—		—
Dividends		(29.2)		(29.2)		—		—
Distributions from (to) parent		—		147.9		(135.3)		(12.6)
Net cash provided by (used in) continuing financing activities		0.6		25.7		(169.2)		144.1
Net cash provided by discontinued operations		0.1		—		0.1		—
Effect of exchange rate changes on cash and cash equivalents		0.7		—		—		0.7
Net change in cash and cash equivalents		7.1		—		(14.8)		21.9
Cash and cash equivalents, beginning of period		45.7		—		14.8		30.9
Cash and cash equivalents, end of period	$	52.8	$	—	$	—	$	52.8

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

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)
Proceeds from sale of dealerships		9.0		—		9.0		—
Acquisitions, net		(314.2)		—		(199.2)		(115.0)
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