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Consolidating Condensed Financial Information (Tables) | 9 Months Ended
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Sep. 30, 2013
Consolidating Condensed Financial Information |
CONDENSED CONSOLIDATING BALANCE SHEET | CONDENSED CONSOLIDATING BALANCE SHEET September 30, 2013
|  | Total Company |  | Eliminations |  | Penske Automotive Group |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |
|  | (In thousands) |
Cash and cash equivalents |  | $ | 71,101 |  | $ | — |  | $ | — |  | $ | 7,514 |  | $ | 63,587 |
Accounts receivable, net |  | 588,311 |  | (378,659 | ) | 378,659 |  | 292,806 |  | 295,505 |
Inventories |  | 2,293,390 |  | — |  | — |  | 1,300,592 |  | 992,798 |
Other current assets |  | 83,508 |  | — |  | 2,955 |  | 32,593 |  | 47,960 |
Assets held for sale |  | 1,065 |  | — |  | — |  | 165 |  | 900 |
Total current assets |  | 3,037,375 |  | (378,659 | ) | 381,614 |  | 1,633,670 |  | 1,400,750 |
Property and equipment, net |  | 1,211,020 |  | — |  | 4,251 |  | 814,083 |  | 392,686 |
Intangible assets |  | 1,401,497 |  | — |  | — |  | 768,677 |  | 632,820 |
Equity method investments |  | 333,081 |  | — |  | 280,730 |  | — |  | 52,351 |
Other long-term assets |  | 27,831 |  | (1,602,664 | ) | 1,613,941 |  | 5,232 |  | 11,322 |
Total assets |  | $ | 6,010,804 |  | $ | (1,981,323 | ) | $ | 2,280,536 |  | $ | 3,221,662 |  | $ | 2,489,929 |
Floor plan notes payable |  | $ | 1,537,185 |  | $ | — |  | $ | — |  | $ | 884,700 |  | $ | 652,485 |
Floor plan notes payable — non-trade |  | 802,051 |  | — |  | 128,100 |  | 375,983 |  | 297,968 |
Accounts payable |  | 380,000 |  | — |  | 2,841 |  | 128,236 |  | 248,923 |
Accrued expenses |  | 275,483 |  | (378,659 | ) | 205 |  | 142,530 |  | 511,407 |
Current portion of long-term debt |  | 46,894 |  | — |  | — |  | 36,236 |  | 10,658 |
Liabilities held for sale |  | 2,592 |  | — |  | — |  | 383 |  | 2,209 |
Total current liabilities |  | 3,044,205 |  | (378,659 | ) | 131,146 |  | 1,568,068 |  | 1,723,650 |
Long-term debt |  | 1,014,070 |  | (96,472 | ) | 692,000 |  | 166,262 |  | 252,280 |
Deferred tax liabilities |  | 338,430 |  | — |  | — |  | 313,342 |  | 25,088 |
Other long-term liabilities |  | 156,708 |  | — |  | — |  | 77,865 |  | 78,843 |
Total liabilities |  | 4,553,413 |  | (475,131 | ) | 823,146 |  | 2,125,537 |  | 2,079,861 |
Total equity |  | 1,457,391 |  | (1,506,192 | ) | 1,457,390 |  | 1,096,125 |  | 410,068 |
Total liabilities and equity |  | $ | 6,010,804 |  | $ | (1,981,323 | ) | $ | 2,280,536 |  | $ | 3,221,662 |  | $ | 2,489,929 |
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 |  | 71,107 |  | — |  | — |  | 28,716 |  | 42,391 |
Total current assets |  | 2,760,096 |  | (340,917 | ) | 344,463 |  | 1,708,998 |  | 1,047,552 |
Property and equipment, net |  | 1,031,188 |  | — |  | 4,474 |  | 662,722 |  | 363,992 |
Intangible assets |  | 1,263,590 |  | — |  | — |  | 761,005 |  | 502,585 |
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 September 30, 2013
|  | Total Company |  | Eliminations |  | Penske Automotive Group |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |
|  | (In thousands) |
Revenues |  | $ | 3,824,143 |  | $ | — |  | $ | — |  | $ | 2,296,224 |  | $ | 1,527,919 |
Cost of sales |  | 3,244,235 |  | — |  | — |  | 1,933,197 |  | 1,311,038 |
Gross profit |  | 579,908 |  | — |  | — |  | 363,027 |  | 216,881 |
Selling, general and administrative expenses |  | 454,188 |  | — |  | 5,475 |  | 280,222 |  | 168,491 |
Depreciation |  | 15,784 |  | — |  | 417 |  | 9,538 |  | 5,829 |
Operating income (loss) |  | 109,936 |  | — |  | (5,892 | ) | 73,267 |  | 42,561 |
Floor plan interest expense |  | (10,840 | ) | — |  | (2,428 | ) | (4,951 | ) | (3,461 | )
Other interest expense |  | (12,370 | ) | — |  | (7,159 | ) | (1,951 | ) | (3,260 | )
Equity in earnings of affiliates |  | 11,240 |  | — |  | 10,035 |  | — |  | 1,205 |
Equity in earnings of subsidiaries |  | — |  | (103,153 | ) | 103,153 |  | — |  | — |
Income (loss) from continuing operations before income taxes |  | 97,966 |  | (103,153 | ) | 97,709 |  | 66,365 |  | 37,045 |
Income taxes |  | (31,692 | ) | 33,458 |  | (31,692 | ) | (24,116 | ) | (9,342 | )
Income (loss) from continuing operations |  | 66,274 |  | (69,695 | ) | 66,017 |  | 42,249 |  | 27,703 |
Income (loss) from discontinued operations, net of tax |  | (742 | ) | 742 |  | (742 | ) | (151 | ) | (591 | )
Net income (loss) |  | 65,532 |  | (68,953 | ) | 65,275 |  | 42,098 |  | 27,112 |
Other comprenhensive income (loss), net of tax |  | 38,449 |  | (38,622 | ) | 38,449 |  | 824 |  | 37,798 |
Comprehensive income |  | 103,981 |  | (107,575 | ) | 103,724 |  | 42,922 |  | 64,910 |
Less: Comprehensive income attributable to non-controlling interests |  | 257 |  | — |  | — |  | — |  | 257 |
Comprehensive income attributable to Penske Automotive Group common stockholders |  | $ | 103,724 |  | $ | (107,575 | ) | $ | 103,724 |  | $ | 42,922 |  | $ | 64,653 |
CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended September 30, 2012
|  | Total Company |  | Eliminations |  | Penske Automotive Group |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |
|  | (In thousands) |
Revenues |  | $ | 3,336,020 |  | $ | — |  | $ | — |  | $ | 1,997,423 |  | $ | 1,338,597 |
Cost of sales |  | 2,834,536 |  | — |  | — |  | 1,687,417 |  | 1,147,119 |
Gross profit |  | 501,484 |  | — |  | — |  | 310,006 |  | 191,478 |
Selling, general and administrative expenses |  | 400,039 |  | — |  | 5,073 |  | 244,259 |  | 150,707 |
Depreciation |  | 13,704 |  | — |  | 328 |  | 7,580 |  | 5,796 |
Operating income (loss) |  | 87,741 |  | — |  | (5,401 | ) | 58,167 |  | 34,975 |
Floor plan interest expense |  | (9,951 | ) | — |  | (2,322 | ) | (4,300 | ) | (3,329 | )
Other interest expense |  | (11,583 | ) | — |  | (7,695 | ) | (804 | ) | (3,084 | )
Equity in earnings of affiliates |  | 8,814 |  | — |  | 7,784 |  | — |  | 1,030 |
Equity in earnings of subsidiaries |  | — |  | (82,373 | ) | 82,373 |  | — |  | — |
Debt redemption costs |  | (17,753 | ) | — |  | (17,753 | ) | — |  | — |
Income (loss) from continuing operations before income taxes |  | 57,268 |  | (82,373 | ) | 56,986 |  | 53,063 |  | 29,592 |
Income taxes |  | (15,421 | ) | 22,292 |  | (15,421 | ) | (14,733 | ) | (7,559 | )
Income (loss) from continuing operations |  | 41,847 |  | (60,081 | ) | 41,565 |  | 38,330 |  | 22,033 |
Income (loss) from discontinued operations, net of tax |  | (534 | ) | 534 |  | (534 | ) | 219 |  | (753 | )
Net income (loss) |  | 41,313 |  | (59,547 | ) | 41,031 |  | 38,549 |  | 21,280 |
Other comprehensive income (loss), net of tax |  | 17,948 |  | (16,882 | ) | 17,948 |  | 175 |  | 16,707 |
Comprehensive income |  | 59,261 |  | (76,429 | ) | 58,979 |  | 38,724 |  | 37,987 |
Less: Comprehensive income attributable to non-controlling interests |  | 489 |  | (207 | ) | 207 |  | — |  | 489 |
Comprehensive income attributable to Penske Automotive Group common stockholders |  | $ | 58,772 |  | $ | (76,222 | ) | $ | 58,772 |  | $ | 38,724 |  | $ | 37,498 |
CONDENSED CONSOLIDATING STATEMENT OF INCOME Nine Months Ended September 30, 2013
|  | Total Company |  | Eliminations |  | Penske Automotive Group |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |
|  | (In thousands) |
Revenues |  | $ | 10,927,917 |  | $ | — |  | $ | — |  | $ | 6,616,079 |  | $ | 4,311,838 |
Cost of sales |  | 9,244,779 |  | — |  | — |  | 5,545,896 |  | 3,698,883 |
Gross profit |  | 1,683,138 |  | — |  | — |  | 1,070,183 |  | 612,955 |
Selling, general and administrative expenses |  | 1,308,958 |  | — |  | 15,328 |  | 820,249 |  | 473,381 |
Depreciation |  | 45,300 |  | — |  | 1,206 |  | 26,743 |  | 17,351 |
Operating income (loss) |  | 328,880 |  | — |  | (16,534 | ) | 223,191 |  | 122,223 |
Floor plan interest expense |  | (32,008 | ) | — |  | (7,174 | ) | (15,044 | ) | (9,790 | )
Other interest expense |  | (36,163 | ) | — |  | (20,555 | ) | (4,214 | ) | (11,394 | )
Equity in earnings of affiliates |  | 22,489 |  | — |  | 18,865 |  | — |  | 3,624 |
Equity in earnings of subsidiaries |  | — |  | (307,531 | ) | 307,531 |  | — |  | — |
Income (loss) from continuing operations before income taxes |  | 283,198 |  | (307,531 | ) | 282,133 |  | 203,933 |  | 104,663 |
Income taxes |  | (95,263 | ) | 103,839 |  | (95,263 | ) | (77,745 | ) | (26,094 | )
Income (loss) from continuing operations |  | 187,935 |  | (203,692 | ) | 186,870 |  | 126,188 |  | 78,569 |
Income (loss) from discontinued operations, net of tax |  | (1,889 | ) | 1,889 |  | (1,889 | ) | (184 | ) | (1,705 | )
Net income (loss) |  | 186,046 |  | (201,803 | ) | 184,981 |  | 126,004 |  | 76,864 |
Other comprehensive income (loss), net of tax |  | 4,313 |  | (4,516 | ) | 4,313 |  | 2,997 |  | 1,519 |
Comprehensive income |  | 190,359 |  | (206,319 | ) | 189,294 |  | 129,001 |  | 78,383 |
Less: Comprehensive income attributable to non-controlling interests |  | 1,599 |  | (534 | ) | 534 |  | — |  | 1,599 |
Comprehensive income attributable to Penske Automotive Group common stockholders |  | $ | 188,760 |  | $ | (205,785 | ) | $ | 188,760 |  | $ | 129,001 |  | $ | 76,784 |
CONDENSED CONSOLIDATING STATEMENT OF INCOME Nine Months Ended September 30, 2012
|  | Total Company |  | Eliminations |  | Penske Automotive Group |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |
|  | (In thousands) |
Revenues |  | $ | 9,814,784 |  | $ | — |  | $ | — |  | $ | 5,821,934 |  | $ | 3,992,850 |
Cost of sales |  | 8,313,365 |  | — |  | — |  | 4,897,098 |  | 3,416,267 |
Gross profit |  | 1,501,419 |  | — |  | — |  | 924,836 |  | 576,583 |
Selling, general and administrative expenses |  | 1,188,658 |  | — |  | 14,408 |  | 728,842 |  | 445,408 |
Depreciation |  | 40,014 |  | — |  | 936 |  | 22,018 |  | 17,060 |
Operating income (loss) |  | 272,747 |  | — |  | (15,344 | ) | 173,976 |  | 114,115 |
Floor plan interest expense |  | (29,319 | ) | — |  | (6,774 | ) | (12,247 | ) | (10,298 | )
Other interest expense |  | (35,155 | ) | — |  | (21,986 | ) | (2,668 | ) | (10,501 | )
Equity in earnings of affiliates |  | 21,392 |  | — |  | 18,538 |  | — |  | 2,854 |
Equity in earnings of subsidiaries |  | — |  | (254,241 | ) | 254,241 |  | — |  | — |
Debt redemption costs |  | (17,753 | ) | — |  | (17,753 | ) | — |  | — |
Income (loss) from continuing operations before income taxes |  | 211,912 |  | (254,241 | ) | 210,922 |  | 159,061 |  | 96,170 |
Income taxes |  | (69,347 | ) | 83,603 |  | (69,347 | ) | (59,519 | ) | (24,084 | )
Income (loss) from continuing operations |  | 142,565 |  | (170,638 | ) | 141,575 |  | 99,542 |  | 72,086 |
Income (loss) from discontinued operations, net of tax |  | (4,634 | ) | 4,634 |  | (4,634 | ) | (1,830 | ) | (2,804 | )
Net income (loss) |  | 137,931 |  | (166,004 | ) | 136,941 |  | 97,712 |  | 69,282 |
Other comprehensive income (loss), net of tax |  | 17,758 |  | (15,150 | ) | 17,758 |  | (74 | ) | 15,224 |
Comprehensive income |  | 155,689 |  | (181,154 | ) | 154,699 |  | 97,638 |  | 84,506 |
Less: Comprehensive income attributable to non-controlling interests |  | 1,197 |  | (207 | ) | 207 |  | — |  | 1,197 |
Comprehensive income attributable to Penske Automotive Group common stockholders |  | $ | 154,492 |  | $ | (180,947 | ) | $ | 154,492 |  | $ | 97,638 |  | $ | 83,309 |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Nine Months Ended September 30, 2013
|  | Total Company |  | Penske Automotive Group |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |
|  | (In thousands) |
Net cash from continuing operating activities |  | $ | 297,997 |  | $ | 59,444 |  | $ | 56,502 |  | $ | 182,051 |
Investing activities: |  |  |  |  |  |  |  |  |
Purchase of equipment and improvements |  | (122,952 | ) | (983 | ) | (84,506 | ) | (37,463 | )
Purchase of Penske Car Rental vehicles |  | (82,313 | ) | — |  | (82,313 | ) | — |
Acquisitions, net |  | (221,160 | ) | — |  | (22,005 | ) | (199,155 | )
Other |  | (7,493 | ) | — |  | (7,522 | ) | 29 |
Net cash from continuing investing activities |  | (433,918 | ) | (983 | ) | (196,346 | ) | (236,589 | )
Financing activities: |  |  |  |  |  |  |  |  |
Net borrowings (repayments) of long-term debt |  | 123,825 |  | (18,000 | ) | 71,147 |  | 70,678 |
Net borrowings (repayments) of floor plan notes payable — non-trade |  | 76,525 |  | 16,015 |  | 29,300 |  | 31,210 |
Repurchases of common stock |  | (15,813 | ) | (15,813 | ) | — |  | — |
Dividends |  | (40,663 | ) | (40,663 | ) | — |  | — |
Distributions from (to) parent |  | — |  | — |  | 1,154 |  | (1,154 | )
Other |  | 235 |  | — |  | — |  | 235 |
Net cash from continuing financing activities |  | 144,109 |  | (58,461 | ) | 101,601 |  | 100,969 |
Net cash from discontinued operations |  | 19,466 |  | — |  | 9,279 |  | 10,187 |
Net change in cash and cash equivalents |  | 27,654 |  | — |  | (28,964 | ) | 56,618 |
Cash and cash equivalents, beginning of period |  | 43,447 |  | — |  | 36,478 |  | 6,969 |
Cash and cash equivalents, end of period |  | $ | 71,101 |  | $ | — |  | $ | 7,514 |  | $ | 63,587 |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Nine Months Ended September 30, 2012
|  | Total Company |  | Penske Automotive Group |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |
|  | (In thousands) |
Net cash from continuing operating activities |  | $ | 262,748 |  | $ | 95,748 |  | $ | 40,064 |  | $ | 126,936 |
Investing activities: |  |  |  |  |  |  |  |  |
Purchase of equipment and improvements |  | (96,380 | ) | (766 | ) | (67,233 | ) | (28,381 | )
Proceeds from sale-leaseback transactions |  | 1,584 |  | — |  | — |  | 1,584 |
Acquisitions, net |  | (137,805 | ) | — |  | (3,416 | ) | (134,389 | )
Other |  | 3,496 |  | (3,812 | ) | — |  | 7,308 |
Net cash from continuing investing activities |  | (229,105 | ) | (4,578 | ) | (70,649 | ) | (153,878 | )
Financing activities: |  |  |  |  |  |  |  |  |
Repurchase of 3.5% senior subordinated convertible notes |  | (62,687 | ) | (62,687 | ) | — |  | — |
Issuance of 5.75% senior subordinated notes |  | 550,000 |  | 550,000 |  | — |  | — |
Repurchase of 7.75% senior subordinated notes |  | (390,755 | ) | (390,755 | ) | — |  | — |
Net borrowings (repayments) of long-term debt |  | (133,913 | ) | (149,000 | ) | (1,598 | ) | 16,685 |
Net borrowings (repayments) of floor plan notes payable — non-trade |  | 32,410 |  | 9,363 |  | 11,471 |  | 11,576 |
Repurchases of common stock |  | (9,829 | ) | (9,829 | ) | — |  | — |
Dividends |  | (29,760 | ) | (29,760 | ) | — |  | — |
Payment of deferred financing fees |  | (8,502 | ) | (8,502 | ) | — |  | — |
Distributions from (to) parent |  | — |  | — |  | 4,747 |  | (4,747 | )
Net cash from continuing financing activities |  | (53,036 | ) | (91,170 | ) | 14,620 |  | 23,514 |
Net cash from discontinued operations |  | 18,282 |  | — |  | 6,725 |  | 11,557 |
Net change in cash and cash equivalents |  | (1,111 | ) | — |  | (9,240 | ) | 8,129 |
Cash and cash equivalents, beginning of period |  | 26,997 |  | — |  | 26,767 |  | 230 |
Cash and cash equivalents, end of period |  | $ | 25,886 |  | $ | — |  | $ | 17,527 |  | $ | 8,359 |

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