Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2014

CONDENSED CONSOLIDATING BALANCE SHEET
March 31, 2014

	Total Company		Eliminations			Penske Automotive Group		Guarantor Subsidiaries		Non-Guarantor Subsidiaries
						(In millions)

Cash and cash equivalents	$	54.9	$	—		$	—	$	7.7	$	47.2
Accounts receivable, net	677.7		(396.2		)	396.2		354.3		323.4
Inventories	2,547.3		—			—		1,400.5		1,146.8
Other current assets	101.8		—			2.5		31.9		67.4
Assets held for sale	55.6		—			—		11.8		43.8

Total current assets	3,437.3		(396.2		)	398.7		1,806.2		1,628.6
Property and equipment, net	1,301.2		—			4.0		835.3		461.9
Intangible assets	1,501.9		—			—		826.4		675.5
Equity method investments	352.0		—			298.5		—		53.5
Other long-term assets	19.8		(1,747.7		)	1,759.0		5.1		3.4

Total assets	$	6,612.2	$	(2,143.9	)	$	2,460.2	$	3,473.0	$	2,822.9

Floor plan notes payable	$	1,721.6	$	—		$	—	$	979.5	$	742.1
Floor plan notes payable — non-trade	908.7		—			125.0		416.6		367.1
Accounts payable	411.7		—			4.0		143.2		264.5
Accrued expenses	319.1		(396.2		)	—		150.1		565.2
Current portion of long-term debt	65.1		—			—		52.3		12.8
Liabilities held for sale	36.9		—			—		7.8		29.1

Total current liabilities	3,463.1		(396.2		)	129.0		1,749.5		1,980.8
Long-term debt	1,010.3		(126.9		)	748.0		158.9		230.3
Deferred tax liabilities	364.8		—			—		340.4		24.4
Other long-term liabilities	190.8		—			—		64.0		126.8

Total liabilities	5,029.0		(523.1		)	877.0		2,312.8		2,362.3
Total equity	1,583.2		(1,620.8		)	1,583.2		1,160.2		460.6

Total liabilities and equity	$	6,612.2	$	(2,143.9	)	$	2,460.2	$	3,473.0	$	2,822.9

CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2013

	Total Company		Eliminations			Penske Automotive Group		Guarantor Subsidiaries		Non-Guarantor Subsidiaries
						(In millions)

Cash and cash equivalents	$	49.8	$	—		$	—	$	12.6	$	37.2
Accounts receivable, net	600.8		(392.5		)	392.5		382.1		218.7
Inventories	2,518.3		—			—		1,416.2		1,102.1
Other current assets	88.4		—			2.9		43.4		42.1
Assets held for sale	107.3		—			—		61.0		46.3

Total current assets	3,364.6		(392.5		)	395.4		1,915.3		1,446.4
Property and equipment, net	1,232.2		—			4.0		800.0		428.2
Intangible assets	1,439.9		—			—		771.6		668.3
Equity method investments	346.9		—			294.9		—		52.0
Other long-term assets	31.9		(1,686.0		)	1,697.5		5.2		15.2

Total assets	$	6,415.5	$	(2,078.5	)	$	2,391.8	$	3,492.1	$	2,610.1


Floor plan notes payable	$	1,685.1	$	—		$	—	$	1,009.5	$	675.6
Floor plan notes payable — non-trade	901.6		—			128.1		445.7		327.8
Accounts payable	373.3		—			3.5		141.7		228.1
Accrued expenses	262.6		(392.5		)	0.1		122.2		532.8
Current portion of long-term debt	50.0		—			—		39.5		10.5
Liabilities held for sale	59.7		—			—		31.0		28.7

Total current liabilities	3,332.3		(392.5		)	131.7		1,789.6		1,803.5
Long-term debt	1,033.2		(123.6		)	738.0		158.4		260.4
Deferred tax liabilities	361.4		—			—		337.6		23.8
Other long-term liabilities	166.5		—			—		68.8		97.7

Total liabilities	4,893.4		(516.1		)	869.7		2,354.4		2,185.4
Total equity	1,522.1		(1,562.4		)	1,522.1		1,137.7		424.7

Total liabilities and equity	$	6,415.5	$	(2,078.5	)	$	2,391.8	$	3,492.1	$	2,610.1

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Three Months Ended March 31, 2014

	Total Company			Eliminations			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In millions)

Revenues	$	4,048.0		$	—		$	—		$	2,180.5		$	1,867.5
Cost of sales	3,424.0			—			—			1,825.3			1,598.7

Gross profit	624.0			—			—			355.2			268.8
Selling, general and administrative expenses	487.8			—			5.8			286.6			195.4
Depreciation	16.5			—			0.3			9.3			6.9

Operating income (loss)	119.7			—			(6.1		)	59.3			66.5
Floor plan interest expense	(11.1		)	—			(2.4		)	(5.0		)	(3.7		)
Other interest expense	(13.1		)	—			(7.1		)	(1.2		)	(4.8		)
Equity in earnings of affiliates	5.1			—			4.2			—			0.9
Equity in earnings of subsidiaries	—			(111.6		)	111.6			—			—

Income (loss) from continuing operations before income taxes	100.6			(111.6		)	100.2			53.1			58.9
Income taxes	(34.1		)	37.9			(34.1		)	(23.9		)	(14.0		)

Income (loss) from continuing operations	66.5			(73.7		)	66.1			29.2			44.9
(Loss) income from discontinued operations, net of tax	1.4			(1.4		)	1.4			7.0			(5.6		)

Net income (loss)	67.9			(75.1		)	67.5			36.2			39.3
Other comprehensive income (loss), net of tax	6.2			(6.8		)	6.2			(2.4		)	9.2

Comprehensive income	74.1			(81.9		)	73.7			33.8			48.5
Less: Comprehensive income attributable to the non-controlling interests	0.2			0.2			(0.2		)	—			0.2

Comprehensive income attributable to Penske Automotive Group common stockholders	$	73.9		$	(82.1	)	$	73.9		$	33.8		$	48.3

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Three Months Ended March 31, 2013

	Total Company			Eliminations			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In millions)

Revenues	$	3,349.3		$	—		$	—		$	1,960.9		$	1,388.4
Cost of sales	2,822.7			—			—			1,636.1			1,186.6

Gross profit	526.6			—			—			324.8			201.8
Selling, general and administrative expenses	407.1			—			5.2			250.0			151.9
Depreciation	14.3			—			0.4			8.0			5.9

Operating income (loss)	105.2			—			(5.6		)	66.8			44.0
Floor plan interest expense	(10.1		)	—			(2.3		)	(4.7		)	(3.1		)
Other interest expense	(11.5		)	—			(6.3		)	(1.1		)	(4.1		)
Equity in earnings of affiliates	2.3			—			1.9			—			0.4
Equity in earnings of subsidiaries	—			(97.9		)	97.9			—			—

Income (loss) from continuing operations before income taxes	85.9			(97.9		)	85.6			61.0			37.2
Income taxes	(28.3		)	32.2			(28.3		)	(23.8		)	(8.4		)

Income (loss) from continuing operations	57.6			(65.7		)	57.3			37.2			28.8
(Loss) income from discontinued operations, net of tax	0.4			(0.4		)	0.4			0.8			(0.4		)

Net income (loss)	58.0			(66.1		)	57.7			38.0			28.4
Other comprehensive income (loss), net of tax	(37.1		)	36.8			(37.1		)	1.0			(37.8		)

Comprehensive income	20.9			(29.3		)	20.6			39.0			(9.4		)
Less: Comprehensive income attributable to non-controlling interests	0.9			(0.5		)	0.5			—			0.9

Comprehensive income attributable to Penske Automotive Group common stockholders	$	20.0		$	(28.8	)	$	20.1		$	39.0		$	(10.3	)

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Three Months Ended March 31, 2014

	Total Company			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In millions)

Net cash from continuing operating activities	$	132.5		$	9.7		$	112.2		$	10.6

Investing activities:
Purchase of equipment and improvements	(34.5		)	(0.3		)	(22.7		)	(11.5		)
Purchase of car rental vehicles	(28.5		)	—			(28.5		)	—
Acquisitions, net	(81.8		)	—			(80.0		)	(1.8		)
Other	8.3			—			8.3			—

Net cash from continuing investing activities	(136.5		)	(0.3		)	(122.9		)	(13.3		)

Financing activities:
Net borrowings (repayments) of long-term debt	(12.0		)	10.0			9.0			(31.0		)
Net borrowings (repayments) of floor plan notes payable — non-trade	7.1			(3.2		)	(29.1		)	39.4
Dividends	(16.2		)	(16.2		)	—			—
Distributions from (to) parent	—			—			0.5			(0.5		)

Net cash from continuing financing activities	(21.1		)	(9.4		)	(19.6		)	7.9

Net cash from discontinued operations	30.2			—			25.4			4.8

Net change in cash and cash equivalents	5.1			—			(4.9		)	10.0
Cash and cash equivalents, beginning of period	49.8			—			12.6			37.2

Cash and cash equivalents, end of period	$	54.9		$	—		$	7.7		$	47.2

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Three Months Ended March 31, 2013

	Total Company			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
	(In millions)

Net cash from continuing operating activities	$	97.9		$	68.4		$	26.6		$	2.9

Investing activities:
Purchase of equipment and improvements	(32.8		)	(0.3		)	(21.6		)	(10.9		)
Purchase of car rental vehicles	(35.9		)	—			(35.9		)	—
Acquisitions, net	(27.2		)	—			(27.2		)	—
Other	5.7			—			—			5.7

Net cash from continuing investing activities	(90.2		)	(0.3		)	(84.7		)	(5.2		)

Financing activities:
Net borrowings (repayments) of long-term debt	(39.5		)	(40.0		)	52.3			(51.8		)
Net borrowings (repayments) of floor plan notes payable — non-trade	41.7			(2.8		)	(12.7		)	57.2
Repurchase of common stock	(12.7		)	(12.7		)	—			—
Dividends	(12.6		)	(12.6		)	—			—
Distributions from (to) parent	—			—			0.4			(0.4		)
Other	—			—			—			—

Net cash from continuing financing activities	(23.1		)	(68.1		)	40.0			5.0

Net cash from discontinued operations	3.6			—			0.4			3.2

Net change in cash and cash equivalents	(11.8		)	0.0			(17.7		)	5.9
Cash and cash equivalents, beginning of period	43.8			—			34.7			9.1

Cash and cash equivalents, end of period	$	32.0		$	0.0		$	17.0		$	15.0