Equity Method Investees

12 Months Ended

Dec. 31, 2012

2. Equity Method Investees

As of December 31, 2012, we have investments in the following companies that are accounted for under the equity method: the Jacobs Group (50%), the Nix Group (50%), Penske Wynn Ferrari Maserati (50%), Max Cycles (50%), Innovative Media (45%), QEK Global Solutions (22.5%), Fleetwash, LLC (7%), and National Powersport Auctions (7%), which we reacquired in 2012. Jacobs Group, Nix Group, and Penske Wynn Ferrari Maserati are engaged in the sale and servicing of automobiles. Max Cycles is engaged in the sale and servicing of BMW motorcycles, QEK is an automotive fleet management company, Innovative Media provides dealership graphics, Fleetwash provides vehicle fleet washing services, and National Powersport Auctions is an auctioneer of powersport vehicles. We sold our original investment in National Powersport Auctions in the fourth quarter of 2010 for $14,616, which resulted in a pre-tax gain of $5,295. These investments in entities accounted for under the equity method amounted to $60,369 and $58,386 at December 31, 2012 and 2011, respectively.

We also have a 9.0% limited partnership interest in PTL, a leading provider of transportation services and supply chain management. Our investment in PTL, which is accounted for under the equity method, amounted to $242,791 and $240,254 at December 31, 2012 and 2011, respectively.

The combined results of operations and financial position of our equity method investees are summarized as follows:

Condensed income statement information:

	Year Ended December 31,
	2012		2011		2010
Revenues	$	6,043,432	$	5,970,595	$	4,531,588
Gross margin	1,897,310		1,802,301		1,749,504
Net income	284,228		255,145		198,793
Equity in net income of affiliates	27,572		25,451		20,569

Condensed balance sheet information:

	December 31,
	2012		2011
Current assets	$	1,129,698	$	1,159,066
Noncurrent assets	8,139,122		7,228,052
Total assets	$	9,268,820	$	8,387,118

Current liabilities	$	866,219	$	916,344
Noncurrent liabilities	6,475,453		6,330,666
Equity	1,927,148		1,140,108
Total liabilities and equity	$	9,268,820	$	8,387,118

- Definition

The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

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