Interim Financial Statements (Tables)

6 Months Ended

Jun. 30, 2018

Interim Financial Statements

Summary of carrying values and fair values of senior subordinated notes and fixed rate mortgage facilities

	June 30, 2018				December 31, 2017
	Carrying Value		Fair Value		Carrying Value		Fair Value
3.75% senior subordinated notes due 2020	$	297.2	$	294.0	$	296.5	$	301.7
5.75% senior subordinated notes due 2022		546.4		559.6		545.9		562.3
5.375% senior subordinated notes due 2024		297.4		292.8		297.2		300.2
5.50% senior subordinated notes due 2026		494.7		484.9		494.4		505.0
Mortgage facilities		245.8		243.2		235.5		233.4

ASC 606

Interim Financial Statements

Schedule of impacts of adopting ASC 606

	Balance at		Adjustments Due		Balance at
	December 31, 2017		to ASC 606		January 1, 2018
Assets
Accounts receivable	$	954.9	$	22.4	$	977.3
Inventories		3,944.1		(13.4)		3,930.7
Liabilities and Equity
Accrued expenses	$	523.5	$	0.1	$	523.6
Deferred tax liabilities		481.5		2.3		483.8
Retained earnings		2,009.4		6.6		2,016.0

The following tables summarize the impact of the adoption of ASC 606 on our consolidated condensed statement of income and consolidated condensed balance sheet for the three and six months ended and as of June 30, 2018:

	For the Three Months Ended June 30, 2018
Statement of Income	As		Without Adoption		Impact of Adoption
	Reported		of ASC 606		of ASC 606
Revenue:
Retail automotive dealership	$	5,455.5	$	5,453.3	$	2.2
Retail commercial truck dealership		338.8		339.6		(0.8)
Commercial vehicle distribution and other		146.0		143.7		2.3
Cost of sales:
Retail automotive dealership		4,657.5		4,656.3		1.2
Retail commercial truck dealership		286.4		286.8		(0.4)
Commercial vehicle distribution and other		106.6		106.1		0.5
Gross profit		889.8		887.4		2.4
Income taxes		(41.0)		(40.3)		0.7
Net income		135.2		133.5		1.7

	For the Six Months Ended June 30, 2018
Statement of Income	As		Without Adoption		Impact of Adoption
	Reported		of ASC 606		of ASC 606
Revenue:
Retail automotive dealership	$	10,751.5	$	10,748.8	$	2.7
Retail commercial truck dealership		631.2		631.1		0.1
Commercial vehicle distribution and other		304.5		300.7		3.8
Cost of sales:
Retail automotive dealership		9,175.2		9,173.4		1.8
Retail commercial truck dealership		532.2		532.1		0.1
Commercial vehicle distribution and other		225.6		223.9		1.7
Gross profit		1,754.2		1,751.2		3.0
Income taxes		(77.6)		(76.7)		0.9
Net income		243.0		240.9		2.1

	June 30, 2018
Balance Sheet	As		Without Adoption		Impact of ASC 606
	Reported		of ASC 606		Adoption
Assets
Accounts receivable	$	919.6	$	890.6	$	29.0
Inventories		3,895.1		3,912.0		(16.9)
Liabilities and Equity
Accrued expenses	$	529.7	$	529.5	$	0.2
Deferred tax liabilities		530.8		527.7		3.1
Retained earnings		2,199.7		2,190.9		8.8