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Consolidating Condensed Financial Information (Tables) | 6 Months Ended
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Jun. 30, 2013
Consolidating Condensed Financial Information |
CONDENSED CONSOLIDATING BALANCE SHEET | CONDENSED CONSOLIDATING BALANCE SHEET June 30, 2013
|  | Total Company |  | Eliminations |  | Penske Automotive Group |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |
|  | (In thousands) |
Cash and cash equivalents |  | $ | 26,254 |  | $ | — |  | $ | — |  | $ | 759 |  | $ | 25,495 |
Accounts receivable, net |  | 530,647 |  | (364,074 | ) | 364,074 |  | 328,455 |  | 202,192 |
Inventories |  | 2,125,771 |  | — |  | — |  | 1,318,613 |  | 807,158 |
Other current assets |  | 90,352 |  | — |  | 7,068 |  | 33,953 |  | 49,331 |
Assets held for sale |  | 33,849 |  | — |  | — |  | 15,984 |  | 17,865 |
Total current assets |  | 2,806,873 |  | (364,074 | ) | 371,142 |  | 1,697,764 |  | 1,102,041 |
Property and equipment, net |  | 1,148,495 |  | — |  | 4,356 |  | 789,341 |  | 354,798 |
Intangible assets |  | 1,231,166 |  | — |  | — |  | 767,816 |  | 463,350 |
Equity method investments |  | 332,503 |  | — |  | 273,827 |  | — |  | 58,676 |
Other long-term assets |  | 18,595 |  | (1,490,576 | ) | 1,503,443 |  | 4,030 |  | 1,698 |
Total assets |  | $ | 5,537,632 |  | $ | (1,854,650 | ) | $ | 2,152,768 |  | $ | 3,258,951 |  | $ | 1,980,563 |
Floor plan notes payable |  | $ | 1,474,440 |  | $ | — |  | $ | — |  | $ | 962,001 |  | $ | 512,439 |
Floor plan notes payable — non-trade |  | 753,130 |  | — |  | 122,700 |  | 340,030 |  | 290,400 |
Accounts payable |  | 314,050 |  | — |  | 3,338 |  | 130,711 |  | 180,001 |
Accrued expenses |  | 226,968 |  | (364,074 | ) | 465 |  | 129,726 |  | 460,851 |
Current portion of long-term debt |  | 44,896 |  | — |  | — |  | 35,769 |  | 9,127 |
Liabilities held for sale |  | 23,547 |  | — |  | — |  | 9,598 |  | 13,949 |
Total current liabilities |  | 2,837,031 |  | (364,074 | ) | 126,503 |  | 1,607,835 |  | 1,466,767 |
Long-term debt |  | 875,307 |  | (38,182 | ) | 670,000 |  | 175,856 |  | 67,633 |
Deferred tax liabilities |  | 313,756 |  | — |  | — |  | 288,245 |  | 25,511 |
Other long-term liabilities |  | 155,273 |  | — |  | — |  | 79,733 |  | 75,540 |
Total liabilities |  | 4,181,367 |  | (402,256 | ) | 796,503 |  | 2,151,669 |  | 1,635,451 |
Total equity |  | 1,356,265 |  | (1,452,394 | ) | 1,356,265 |  | 1,107,282 |  | 345,112 |
Total liabilities and equity |  | $ | 5,537,632 |  | $ | (1,854,650 | ) | $ | 2,152,768 |  | $ | 3,258,951 |  | $ | 1,980,563 |
CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2012
|  | Total Company |  | Eliminations |  | Penske Automotive Group |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |
|  | (In thousands) |
Cash and cash equivalents |  | $ | 43,447 |  | $ | — |  | $ | — |  | $ | 36,478 |  | $ | 6,969 |
Accounts receivable, net |  | 554,851 |  | (340,917 | ) | 340,917 |  | 375,442 |  | 179,409 |
Inventories |  | 2,000,206 |  | — |  | — |  | 1,212,521 |  | 787,685 |
Other current assets |  | 90,485 |  | — |  | 3,546 |  | 55,841 |  | 31,098 |
Assets held for sale |  | 73,398 |  | — |  | — |  | 29,400 |  | 43,998 |
Total current assets |  | 2,762,387 |  | (340,917 | ) | 344,463 |  | 1,709,682 |  | 1,049,159 |
Property and equipment, net |  | 1,031,188 |  | — |  | 4,474 |  | 662,722 |  | 363,992 |
Intangible assets |  | 1,261,299 |  | — |  | — |  | 760,321 |  | 500,978 |
Equity method investments |  | 303,160 |  | — |  | 252,816 |  | — |  | 50,344 |
Other long-term assets |  | 20,956 |  | (1,527,156 | ) | 1,540,447 |  | 5,029 |  | 2,636 |
Total assets |  | $ | 5,378,990 |  | $ | (1,868,073 | ) | $ | 2,142,200 |  | $ | 3,137,754 |  | $ | 1,967,109 |
Floor plan notes payable |  | $ | 1,408,362 |  | $ | — |  | $ | — |  | $ | 917,391 |  | $ | 490,971 |
Floor plan notes payable — non-trade |  | 725,526 |  | — |  | 112,085 |  | 346,683 |  | 266,758 |
Accounts payable |  | 263,881 |  | — |  | 3,344 |  | 124,663 |  | 135,874 |
Accrued expenses |  | 223,972 |  | (340,917 | ) | 450 |  | 114,636 |  | 449,803 |
Current portion of long-term debt |  | 19,493 |  | — |  | — |  | 9,745 |  | 9,748 |
Liabilities held for sale |  | 51,279 |  | — |  | — |  | 17,766 |  | 33,513 |
Total current liabilities |  | 2,692,513 |  | (340,917 | ) | 115,879 |  | 1,530,884 |  | 1,386,667 |
Long-term debt |  | 918,024 |  | (38,692 | ) | 710,000 |  | 121,618 |  | 125,098 |
Deferred tax liabilities |  | 287,818 |  | — |  | — |  | 260,445 |  | 27,373 |
Other long-term liabilities |  | 164,314 |  | — |  | — |  | 85,151 |  | 79,163 |
Total liabilities |  | 4,062,669 |  | (379,609 | ) | 825,879 |  | 1,998,098 |  | 1,618,301 |
Total equity |  | 1,316,321 |  | (1,488,464 | ) | 1,316,321 |  | 1,139,656 |  | 348,808 |
Total liabilities and equity |  | $ | 5,378,990 |  | $ | (1,868,073 | ) | $ | 2,142,200 |  | $ | 3,137,754 |  | $ | 1,967,109 |
CONDENSED CONSOLIDATING STATEMENT OF INCOME | CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended June 30, 2013
|  | Total Company |  | Eliminations |  | Penske Automotive Group |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |
|  | (In thousands) |
Revenues |  | $ | 3,699,175 |  | $ | — |  | $ | — |  | $ | 2,285,609 |  | $ | 1,413,566 |
Cost of sales |  | 3,130,152 |  | — |  | — |  | 1,913,900 |  | 1,216,252 |
Gross profit |  | 569,023 |  | — |  | — |  | 371,709 |  | 197,314 |
Selling, general and administrative expenses |  | 440,331 |  | — |  | 4,695 |  | 281,360 |  | 154,276 |
Depreciation |  | 14,985 |  | — |  | 411 |  | 8,843 |  | 5,731 |
Operating income (loss) |  | 113,707 |  | — |  | (5,106 | ) | 81,506 |  | 37,307 |
Floor plan interest expense |  | (10,900 | ) | — |  | (2,459 | ) | (5,219 | ) | (3,222 | )
Other interest expense |  | (12,066 | ) | — |  | (6,668 | ) | (1,196 | ) | (4,202 | )
Equity in earnings of affiliates |  | 8,901 |  | — |  | 6,918 |  | — |  | 1,983 |
Equity in earnings of subsidiaries |  | — |  | (106,504 | ) | 106,504 |  | — |  | — |
Income (loss) from continuing operations before income taxes |  | 99,642 |  | (106,504 | ) | 99,189 |  | 75,091 |  | 31,866 |
Income taxes |  | (35,164 | ) | 37,757 |  | (35,164 | ) | (29,130 | ) | (8,627 | )
Income (loss) from continuing operations |  | 64,478 |  | (68,747 | ) | 64,025 |  | 45,961 |  | 23,239 |
(Loss) income from discontinued operations, net of tax |  | (1,983 | ) | 1,983 |  | (1,983 | ) | (540 | ) | (1,443 | )
Net income (loss) |  | 62,495 |  | (66,764 | ) | 62,042 |  | 45,421 |  | 21,796 |
Other comprenhensive income (loss), net of tax |  | 2,981 |  | (2,676 | ) | 2,981 |  | 1,122 |  | 1,554 |
Comprehensive income |  | 65,476 |  | (69,440 | ) | 65,023 |  | 46,543 |  | 23,350 |
Less: Comprehensive income attributable to the non-controlling interests |  | 453 |  | — |  | — |  | — |  | 453 |
Comprehensive income attributable to Penske Automotive Group common stockholders |  | $ | 65,023 |  | $ | (69,440 | ) | $ | 65,023 |  | $ | 46,543 |  | $ | 22,897 |
CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended June 30, 2012
|  | Total Company |  | Eliminations |  | Penske Automotive Group |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |
|  | (In thousands) |
Revenues |  | $ | 3,315,051 |  | $ | — |  | $ | — |  | $ | 2,001,589 |  | $ | 1,313,462 |
Cost of sales |  | 2,810,080 |  | — |  | — |  | 1,681,433 |  | 1,128,647 |
Gross profit |  | 504,971 |  | — |  | — |  | 320,156 |  | 184,815 |
Selling, general and administrative expenses |  | 400,637 |  | — |  | 4,740 |  | 247,494 |  | 148,403 |
Depreciation |  | 13,319 |  | — |  | 246 |  | 7,394 |  | 5,679 |
Operating income (loss) |  | 91,015 |  | — |  | (4,986 | ) | 65,268 |  | 30,733 |
Floor plan interest expense |  | (9,845 | ) | — |  | (2,254 | ) | (4,175 | ) | (3,416 | )
Other interest expense |  | (11,478 | ) | — |  | (7,079 | ) | (603 | ) | (3,796 | )
Equity in earnings (losses) of affiliates |  | 8,168 |  | — |  | 6,994 |  | (40 | ) | 1,214 |
Equity in earnings of subsidiaries |  | — |  | (84,665 | ) | 84,665 |  | — |  | — |
Income (loss) from continuing operations before income taxes |  | 77,860 |  | (84,665 | ) | 77,340 |  | 60,450 |  | 24,735 |
Income taxes |  | (27,093 | ) | 29,659 |  | (27,093 | ) | (23,227 | ) | (6,432 | )
Income (loss) from continuing operations |  | 50,767 |  | (55,006 | ) | 50,247 |  | 37,223 |  | 18,303 |
(Loss) income from discontinued operations, net of tax |  | (1,155 | ) | 1,155 |  | (1,155 | ) | (399 | ) | (756 | )
Net income (loss) |  | 49,612 |  | (53,851 | ) | 49,092 |  | 36,824 |  | 17,547 |
Other comprehensive income (loss), net of tax |  | (10,896 | ) | 11,430 |  | (10,896 | ) | (15 | ) | (11,415 | )
Comprehensive income |  | 38,716 |  | (42,421 | ) | 38,196 |  | 36,809 |  | 6,132 |
Less: Comprehensive income attributable to non-controlling interests |  | 520 |  | — |  | — |  | — |  | 520 |
Comprehensive income attributable to Penske Automotive Group common stockholders |  | $ | 38,196 |  | $ | (42,421 | ) | $ | 38,196 |  | $ | 36,809 |  | $ | 5,612 |
CONDENSED CONSOLIDATING STATEMENT OF INCOME Six Months Ended June 30, 2013
|  | Total Company |  | Eliminations |  | Penske Automotive Group |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |
|  | (In thousands) |
Revenues |  | $ | 7,103,774 |  | $ | — |  | $ | — |  | $ | 4,319,855 |  | $ | 2,783,919 |
Cost of sales |  | 6,000,544 |  | — |  | — |  | 3,612,699 |  | 2,387,845 |
Gross profit |  | 1,103,230 |  | — |  | — |  | 707,156 |  | 396,074 |
Selling, general and administrative expenses |  | 854,770 |  | — |  | 9,853 |  | 540,027 |  | 304,890 |
Depreciation |  | 29,516 |  | — |  | 789 |  | 17,205 |  | 11,522 |
Operating income (loss) |  | 218,944 |  | — |  | (10,642 | ) | 149,924 |  | 79,662 |
Floor plan interest expense |  | (21,168 | ) | — |  | (4,746 | ) | (10,093 | ) | (6,329 | )
Other interest expense |  | (23,793 | ) | — |  | (13,395 | ) | (2,263 | ) | (8,135 | )
Equity in earnings (losses) of affiliates |  | 11,249 |  | — |  | 8,830 |  | — |  | 2,419 |
Equity in earnings of subsidiaries |  | — |  | (204,038 | ) | 204,038 |  | — |  | — |
Income (loss) from continuing operations before income taxes |  | 185,232 |  | (204,038 | ) | 184,085 |  | 137,568 |  | 67,617 |
Income taxes |  | (63,571 | ) | 70,461 |  | (63,571 | ) | (53,709 | ) | (16,752 | )
Income (loss) from continuing operations |  | 121,661 |  | (133,577 | ) | 120,514 |  | 83,859 |  | 50,865 |
(Loss) income from discontinued operations, net of tax |  | (1,147 | ) | 808 |  | (808 | ) | (33 | ) | (1,114 | )
Net income (loss) |  | 120,514 |  | (132,769 | ) | 119,706 |  | 83,826 |  | 49,751 |
Other comprehensive income (loss), net of tax |  | (34,138 | ) | 36,313 |  | (34,138 | ) | (32 | ) | (36,281 | )
Comprehensive income |  | 86,376 |  | (96,456 | ) | 85,568 |  | 83,794 |  | 13,470 |
Less: Comprehensive income attributable to non-controlling interests |  | 1,342 |  | (534 | ) | 534 |  | — |  | 1,342 |
Comprehensive income attributable to Penske Automotive Group common stockholders |  | $ | 85,034 |  | $ | (95,922 | ) | $ | 85,034 |  | $ | 83,794 |  | $ | 12,128 |
CONDENSED CONSOLIDATING STATEMENT OF INCOME Six Months Ended June 30, 2012
|  | Total Company |  | Eliminations |  | Penske Automotive Group |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |
|  | (In thousands) |
Revenues |  | $ | 6,478,764 |  | $ | — |  | $ | — |  | $ | 3,824,510 |  | $ | 2,654,254 |
Cost of sales |  | 5,478,829 |  | — |  | — |  | 3,209,681 |  | 2,269,148 |
Gross profit |  | 999,935 |  | — |  | — |  | 614,829 |  | 385,106 |
Selling, general and administrative expenses |  | 788,619 |  | — |  | 9,335 |  | 484,583 |  | 294,701 |
Depreciation |  | 26,310 |  | — |  | 608 |  | 14,438 |  | 11,264 |
Operating income (loss) |  | 185,006 |  | — |  | (9,943 | ) | 115,808 |  | 79,141 |
Floor plan interest expense |  | (19,368 | ) | — |  | (4,452 | ) | (7,947 | ) | (6,969 | )
Other interest expense |  | (23,572 | ) | — |  | (14,642 | ) | (1,513 | ) | (7,417 | )
Equity in earnings (losses) of affiliates |  | 12,578 |  | — |  | 10,754 |  | (40 | ) | 1,864 |
Equity in earnings of subsidiaries |  | — |  | (172,219 | ) | 172,219 |  | — |  | — |
Income (loss) from continuing operations before income taxes |  | 154,644 |  | (172,219 | ) | 153,936 |  | 106,308 |  | 66,619 |
Income taxes |  | (53,926 | ) | 60,331 |  | (53,926 | ) | (43,806 | ) | (16,525 | )
Income (loss) from continuing operations |  | 100,718 |  | (111,888 | ) | 100,010 |  | 62,502 |  | 50,094 |
(Loss) income from discontinued operations, net of tax |  | (4,100 | ) | 4,100 |  | (4,100 | ) | (2,049 | ) | (2,051 | )
Net income (loss) |  | 96,618 |  | (107,788 | ) | 95,910 |  | 60,453 |  | 48,043 |
Other comprehensive income (loss), net of tax |  | (195 | ) | 1,738 |  | (195 | ) | (249 | ) | (1,489 | )
Comprehensive income |  | 96,423 |  | (106,050 | ) | 95,715 |  | 60,204 |  | 46,554 |
Less: Comprehensive income attributable to non-controlling interests |  | 708 |  | — |  | — |  | — |  | 708 |
Comprehensive income attributable to Penske Automotive Group common stockholders |  | $ | 95,715 |  | $ | (106,050 | ) | $ | 95,715 |  | $ | 60,204 |  | $ | 45,846 |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Six Months Ended June 30, 2013
|  | Total Company |  | Penske Automotive Group |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |
|  | (In thousands)
Net cash from continuing operating activities |  | $ | 175,643 |  | $ | 72,085 |  | $ | 51,307 |  | $ | 52,251 |
Investing activities: |  |  |  |  |  |  |  |  |
Purchase of equipment and improvements |  | (143,591 | ) | (671 | ) | (120,322 | ) | (22,598 | )
Dealership acquisitions, net |  | (30,734 | ) | — |  | (29,314 | ) | (1,420 | )
Other |  | (9,695 | ) | — |  | (15,503 | ) | 5,808 |
Net cash from continuing investing activities |  | (184,020 | ) | (671 | ) | (165,139 | ) | (18,210 | )
Financing activities: |  |  |  |  |  |  |  |  |
Net borrowings (repayments) of long-term debt |  | (11,171 | ) | (40,000 | ) | 80,273 |  | (51,444 | )
Net borrowings (repayments) of floor plan notes payable — non-trade |  | 33,478 |  | 10,615 |  | (6,654 | ) | 29,517 |
Repurchase of common stock |  | (15,813 | ) | (15,813 | ) | — |  | — |
Dividends |  | (26,216 | ) | (26,216 | ) | — |  | — |
Distributions from (to) parent |  | — |  | — |  | 392 |  | (392 | )
Other |  | 235 |  | — |  | — |  | 235 |
Net cash from continuing financing activities |  | (19,487 | ) | (71,414 | ) | 74,011 |  | (22,084 | )
Net cash from discontinued operations |  | 10,671 |  | — |  | 4,102 |  | 6,569 |
Net change in cash and cash equivalents |  | (17,193 | ) | — |  | (35,719 | ) | 18,526 |
Cash and cash equivalents, beginning of period |  | 43,447 |  | — |  | 36,478 |  | 6,969 |
Cash and cash equivalents, end of period |  | $ | 26,254 |  | $ | — |  | $ | 759 |  | $ | 25,495 |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Six Months Ended June 30, 2012
|  | Total Company |  | Penske Automotive Group |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |
|  | (In thousands) |
Net cash from continuing operating activities |  | $ | 201,953 |  | $ | 56,571 |  | $ | 10,787 |  | $ | 134,595 |
Investing activities: |  |  |  |  |  |  |  |  |
Purchase of equipment and improvements |  | (57,322 | ) | (754 | ) | (44,404 | ) | (12,164 | )
Dealership acquisitions, net |  | (111,522 | ) | — |  | (3,416 | ) | (108,106 | )
Other |  | (3,653 | ) | — |  | (970 | ) | (2,683 | )
Net cash from continuing investing activities |  | (172,497 | ) | (754 | ) | (48,790 | ) | (122,953 | )
Financing activities: |  |  |  |  |  |  |  |  |
Repurchase of 3.5% senior subordinated convertible notes |  | (37,778 | ) | (37,778 | ) | — |  | — |
Net borrowings (repayments) of long-term debt |  | (6,427 | ) | (18,000 | ) | (967 | ) | 12,540 |
Net borrowings (repayments) of floor plan notes payable — non-trade |  | 35,218 |  | 28,708 |  | 19,651 |  | (13,141 | )
Repurchase of common stock |  | (9,829 | ) | (9,829 | ) | — |  | — |
Dividends |  | (18,918 | ) | (18,918 | ) | — |  | — |
Distributions from (to) parent |  | — |  | — |  | 585 |  | (585 | )
Net cash from continuing financing activities |  | (37,734 | ) | (55,817 | ) | 19,269 |  | (1,186 | )
Net cash from discontinued operations |  | 17,228 |  | — |  | 9,933 |  | 7,295 |
Net change in cash and cash equivalents |  | 8,950 |  | — |  | (8,801 | ) | 17,751 |
Cash and cash equivalents, beginning of period |  | 26,997 |  | — |  | 26,767 |  | 230 |
Cash and cash equivalents, end of period |  | $ | 35,947 |  | $ | — |  | $ | 17,966 |  | $ | 17,981 |

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