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Condensed Consolidating Financial Information (Tables) | 12 Months Ended
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Dec. 31, 2013
Condensed Consolidating Financial Information |
CONDENSED CONSOLIDATING BALANCE SHEET | CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2013
|  | Total Company |  | Eliminations |  | Penske Automotive Group |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |
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 |  | — |  | — |  | 1,416.1 |  | 1,102.2 |
Other current assets |  | 88.4 |  | — |  | 2.9 |  | 43.4 |  | 42.1 |
Assets held for sale |  | 107.3 |  | — |  | — |  | 61.1 |  | 46.2 |
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 |  | — |  | 295.0 |  | — |  | 51.9 |
Other long-term assets |  | 31.9 |  | (1,686.0 | ) | 1,697.4 |  | 5.2 |  | 15.3 |
Total assets |  | $ | 6,415.5 |  | $ | (2,078.5 | ) | $ | 2,391.8 |  | $ | 3,492.1 |  | $ | 2,610.1 |
Floor plan notes payable |  | $ | 1,685.1 |  | $ | — |  | $ | — |  | $ | 1,009.4 |  | $ | 675.7 |
Floor plan notes payable — non-trade |  | 901.6 |  | — |  | 128.2 |  | 445.7 |  | 327.7 |
Accounts payable |  | 373.3 |  | — |  | 3.4 |  | 141.8 |  | 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 |  | (123.5 | ) | 738.0 |  | 158.3 |  | 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 |  | (516.0 | ) | 869.7 |  | 2,354.3 |  | 2,185.4 |
Total equity |  | 1,522.1 |  | (1,562.5 | ) | 1,522.1 |  | 1,137.8 |  | 424.7 |
Total liabilities and equity |  | $ | 6,415.5 |  | $ | (2,078.5 | ) | $ | 2,391.8 |  | $ | 3,492.1 |  | $ | 2,610.1 |
CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2012
|  | Total Company |  | Eliminations |  | Penske Automotive Group |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |
Cash and cash equivalents |  | $ | 43.8 |  | $ | — |  | $ | — |  | $ | 34.7 |  | $ | 9.1 |
Accounts receivable, net |  | 545.1 |  | (345.5 | ) | 345.5 |  | 360.4 |  | 184.7 |
Inventories |  | 1,959.3 |  | — |  | — |  | 1,177.2 |  | 782.1 |
Other current assets |  | 90.2 |  | — |  | 3.5 |  | 55.6 |  | 31.1 |
Assets held for sale |  | 164.1 |  | — |  | — |  | 82.8 |  | 81.3 |
Total current assets |  | 2,802.5 |  | (345.5 | ) | 349.0 |  | 1,710.7 |  | 1,088.3 |
Property and equipment, net |  | 1,013.7 |  | — |  | 4.5 |  | 631.6 |  | 377.6 |
Intangible assets |  | 1,239.0 |  | — |  | — |  | 711.5 |  | 527.5 |
Equity method investments |  | 303.2 |  | — |  | 252.8 |  | — |  | 50.4 |
Other long-term assets |  | 20.6 |  | (1,522.6 | ) | 1,535.9 |  | 4.9 |  | 2.4 |
Total assets |  | $ | 5,379.0 |  | $ | (1,868.1 | ) | $ | 2,142.2 |  | $ | 3,058.7 |  | $ | 2,046.2 |
Floor plan notes payable |  | $ | 1,388.7 |  | $ | — |  | $ | — |  | $ | 877.6 |  | $ | 511.1 |
Floor plan notes payable — non-trade |  | 710.4 |  | — |  | 112.1 |  | 343.8 |  | 254.5 |
Accounts payable |  | 259.8 |  | — |  | 3.3 |  | 121.2 |  | 135.3 |
Accrued expenses |  | 221.3 |  | (345.5 | ) | 0.5 |  | 112.2 |  | 454.1 |
Current portion of long-term debt |  | 19.5 |  | — |  | — |  | 9.8 |  | 9.7 |
Liabilities held for sale |  | 95.9 |  | — |  | — |  | 42.1 |  | 53.8 |
Total current liabilities |  | 2,695.6 |  | (345.5 | ) | 115.9 |  | 1,506.7 |  | 1,418.5 |
Long-term debt |  | 917.1 |  | (76.0 | ) | 710.0 |  | 121.6 |  | 161.5 |
Deferred tax liabilities |  | 287.8 |  | — |  | — |  | 260.4 |  | 27.4 |
Other long-term liabilities |  | 162.2 |  | — |  | — |  | 84.6 |  | 77.6 |
Total liabilities |  | 4,062.7 |  | (421.5 | ) | 825.9 |  | 1,973.3 |  | 1,685.0 |
Total equity |  | 1,316.3 |  | (1,446.6 | ) | 1,316.3 |  | 1,085.4 |  | 361.2 |
Total liabilities and equity |  | $ | 5,379.0 |  | $ | (1,868.1 | ) | $ | 2,142.2 |  | $ | 3,058.7 |  | $ | 2,046.2 |
CONDENSED CONSOLIDATING STATEMENT OF INCOME | CONDENSED CONSOLIDATING STATEMENT OF INCOME Year Ended December 31, 2013
|  | Total Company |  | Eliminations |  | Penske Automotive Group |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |
Revenues |  | $ | 14,563.9 |  | $ | — |  | $ | — |  | $ | 8,620.1 |  | $ | 5,943.8 |
Cost of sales |  | 12,325.3 |  | — |  | — |  | 7,228.1 |  | 5,097.2 |
Gross profit |  | 2,238.6 |  | — |  | — |  | 1,392.0 |  | 846.6 |
Selling, general, and administrative expenses |  | 1,744.6 |  | — |  | 21.4 |  | 1,060.1 |  | 663.1 |
Depreciation |  | 61.1 |  | — |  | 1.8 |  | 35.2 |  | 24.1 |
Operating income (loss) |  | 432.9 |  | — |  | (23.2 | ) | 296.7 |  | 159.4 |
Floor plan interest expense |  | (43.3 | ) | — |  | (9.6 | ) | (19.7 | ) | (14.0 | )
Other interest expense |  | (47.7 | ) | — |  | (26.1 | ) | (4.3 | ) | (17.3 | )
Equity in earnings of affiliates |  | 30.7 |  | — |  | 25.5 |  | — |  | 5.2 |
Equity in earnings of subsidiaries |  | — |  | (404.5 | ) | 404.5 |  | — |  | — |
Income from continuing operations before income taxes |  | 372.6 |  | (404.5 | ) | 371.1 |  | 272.7 |  | 133.3 |
Income taxes |  | (123.2 | ) | 134.3 |  | (123.2 | ) | (99.7 | ) | (34.6 | )
Income from continuing operations |  | 249.4 |  | (270.2 | ) | 247.9 |  | 173.0 |  | 98.7 |
Loss from discontinued operations, net of tax |  | (3.7 | ) | 3.7 |  | (3.7 | ) | 2.1 |  | (5.8 | )
Net income |  | 245.7 |  | (266.5 | ) | 244.2 |  | 175.1 |  | 92.9 |
Other comprehensive income (loss), net of tax |  | 18.9 |  | (9.8 | ) | 18.9 |  | 4.0 |  | 5.8 |
Comprehensive income |  | 264.6 |  | (276.3 | ) | 263.1 |  | 179.1 |  | 98.7 |
Less: Comprehensive income attributable to the non-controlling interests |  | 2.0 |  | (0.5 | ) | 0.5 |  | — |  | 2.0 |
Comprehensive income attributable to Penske Automotive Group common stockholders |  | $ | 262.6 |  | $ | (275.8 | ) | $ | 262.6 |  | $ | 179.1 |  | $ | 96.7 |
CONDENSED CONSOLIDATING STATEMENT OF INCOME Year Ended December 31, 2012
|  | Total Company |  | Eliminations |  | Penske Automotive Group |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |
Revenues |  | $ | 12,957.3 |  | $ | — |  | $ | — |  | $ | 7,656.6 |  | $ | 5,300.7 |
Cost of sales |  | 10,971.3 |  | — |  | — |  | 6,444.6 |  | 4,526.7 |
Gross profit |  | 1,986.0 |  | — |  | — |  | 1,212.0 |  | 774.0 |
Selling, general, and administrative expenses |  | 1,570.5 |  | — |  | 19.4 |  | 938.5 |  | 612.6 |
Depreciation |  | 52.9 |  | — |  | 1.3 |  | 28.6 |  | 23.0 |
Operating income (loss) |  | 362.6 |  | — |  | (20.7 | ) | 244.9 |  | 138.4 |
Floor plan interest expense |  | (38.1 | ) | — |  | (8.6 | ) | (16.5 | ) | (13.0 | )
Other interest expense |  | (46.6 | ) | — |  | (29.5 | ) | (0.4 | ) | (16.7 | )
Equity in earnings of affiliates |  | 27.6 |  | — |  | 24.0 |  | — |  | 3.6 |
Debt redemption costs |  | (17.8 | ) | — |  | (17.8 | ) | — |  | — |
Equity in earnings of subsidiaries |  | — |  | (338.7 | ) | 338.7 |  | — |  | — |
Income from continuing operations before income taxes |  | 287.7 |  | (338.7 | ) | 286.1 |  | 228.0 |  | 112.3 |
Income taxes |  | (93.4 | ) | 110.7 |  | (93.4 | ) | (86.4 | ) | (24.3 | )
Income from continuing operations |  | 194.3 |  | (228.0 | ) | 192.7 |  | 141.6 |  | 88.0 |
Loss from discontinued operations, net of tax |  | (7.1 | ) | 7.1 |  | (7.1 | ) | 1.5 |  | (8.6 | )
Net income |  | 187.2 |  | (220.9 | ) | 185.6 |  | 143.1 |  | 79.4 |
Other comprehensive income (loss), net of tax |  | 17.6 |  | (16.6 | ) | 17.6 |  | 1.0 |  | 15.6 |
Comprehensive income |  | 204.8 |  | (237.5 | ) | 203.2 |  | 144.1 |  | 95.0 |
Less: Comprehensive income attributable to non-controlling interests |  | 1.9 |  | (0.3 | ) | 0.3 |  | — |  | 1.9 |
Comprehensive income attributable to Penske Automotive Group common stockholders |  | $ | 202.9 |  | $ | (237.2 | ) | $ | 202.9 |  | $ | 144.1 |  | $ | 93.1 |
CONDENSED CONSOLIDATING STATEMENT OF INCOME Year Ended December 31, 2011
|  | Total Company |  | Eliminations |  | Penske Automotive Group |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |
Revenues |  | $ | 10,926.4 |  | $ | — |  | $ | — |  | $ | 6,496.3 |  | $ | 4,430.1 |
Cost of sales |  | 9,193.8 |  | — |  | — |  | 5,414.3 |  | 3,779.5 |
Gross profit |  | 1,732.6 |  | — |  | — |  | 1,082.0 |  | 650.6 |
Selling, general, and administrative expenses |  | 1,394.6 |  | — |  | 19.0 |  | 863.3 |  | 512.3 |
Depreciation |  | 45.8 |  | — |  | 1.3 |  | 25.1 |  | 19.4 |
Operating income (loss) |  | 292.2 |  | — |  | (20.3 | ) | 193.6 |  | 118.9 |
Floor plan interest expense |  | (26.6 | ) | — |  | (1.4 | ) | (13.6 | ) | (11.6 | )
Other interest expense |  | (44.1 | ) | — |  | (25.4 | ) | (1.0 | ) | (17.7 | )
Debt discount amortization |  | (1.7 | ) | — |  | (1.7 | ) | — |  | — |
Equity in earnings of affiliates |  | 25.4 |  | — |  | 23.0 |  | — |  | 2.4 |
Equity in earnings of subsidiaries |  | — |  | (269.7 | ) | 269.7 |  | — |  | — |
Income from continuing operations before income taxes |  | 245.2 |  | (269.7 | ) | 243.9 |  | 179.0 |  | 92.0 |
Income taxes |  | (70.6 | ) | 78.3 |  | (70.7 | ) | (51.9 | ) | (26.3 | )
Income from continuing operations |  | 174.6 |  | (191.4 | ) | 173.2 |  | 127.1 |  | 65.7 |
Loss from discontinued operations, net of tax |  | 3.7 |  | (3.7 | ) | 3.7 |  | 4.8 |  | (1.1 | )
Net income |  | 178.3 |  | (195.1 | ) | 176.9 |  | 131.9 |  | 64.6 |
Other comprehensive income (loss), net of tax |  | (24.1 | ) | 21.2 |  | (24.1 | ) | (9.6 | ) | (11.6 | )
Comprehensive income |  | 154.2 |  | (173.9 | ) | 152.8 |  | 122.3 |  | 53.0 |
Less: Comprehensive income attributable to the non-controlling interests |  | 1.4 |  | — |  | — |  | — |  | 1.4 |
Comprehensive income attributable to Penske Automotive Group common stockholders |  | $ | 152.8 |  | $ | (173.9 | ) | $ | 152.8 |  | $ | 122.3 |  | $ | 51.6 |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2013
|  | Total Company |  | Penske Automotive Group |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |
Net cash from (used in) continuing operating activities |  | $ | 312.1 |  | $ | 46.6 |  | $ | 28.7 |  | $ | 236.8 |
Investing activities: |  |  |  |  |  |  |  |  |
Purchase of property and equipment |  | (169.6 | ) | (1.4 | ) | (111.4 | ) | (56.8 | )
Purchase of car rental vehicles |  | (86.4 | ) | — |  | (86.4 | ) | — |
Acquisitions, net |  | (338.1 | ) | — |  | (127.5 | ) | (210.6 | )
Other |  | 6.7 |  | (17.5 | ) | 19.9 |  | 4.3 |
Net cash from (used in) continuing investing activities |  | (587.4 | ) | (18.9 | ) | (305.4 | ) | (263.1 | )
Financing activities: |  |  |  |  |  |  |  |  |
Net borrowings (repayments) of long-term debt |  | 144.8 |  | 28.0 |  | 66.4 |  | 50.4 |
Net (repayments) borrowings of floor plan notes payable — non-trade |  | 191.3 |  | 16.1 |  | 181.3 |  | (6.1 | )
Repurchase of common stock |  | (15.8 | ) | (15.8 | ) | — |  | — |
Dividends |  | (56.0 | ) | (56.0 | ) | — |  | — |
Distributions from (to) parent |  | — |  | — |  | 0.9 |  | (0.9 | )
Other |  | 0.2 |  | — |  | — |  | 0.2 |
Net cash from (used in) continuing financing activities |  | 264.5 |  | (27.7 | ) | 248.6 |  | 43.6 |
Net cash from discontinued operations |  | 16.8 |  | — |  | 6.0 |  | 10.8 |
Net change in cash and cash equivalents |  | 6.0 |  | — |  | (22.1 | ) | 28.1 |
Cash and cash equivalents, beginning of period |  | 43.8 |  | — |  | 34.7 |  | 9.1 |
Cash and cash equivalents, end of period |  | $ | 49.8 |  | $ | — |  | $ | 12.6 |  | $ | 37.2 |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2012
|  | Total Company |  | Penske Automotive Group |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |
Net cash from (used in) continuing operating activities |  | $ | 323.5 |  | $ | 45.5 |  | $ | 125.8 |  | $ | 152.2 |
Investing activities: |  |  |  |  |  |  |  |  |
Purchase of equipment and improvements |  | (152.0 | ) | (1.1 | ) | (101.4 | ) | (49.5 | )
Purchase of car rental vehicles |  | (9.9 | ) | — |  | (9.9 | ) | — |
Proceeds from sale-leaseback transactions |  | 1.6 |  | — |  | — |  | 1.6 |
Acquisitions, net |  | (250.2 | ) | — |  | (115.8 | ) | (134.4 | )
Other |  | 8.8 |  | (3.3 | ) | 4.8 |  | 7.3 |
Net cash from (used in) continuing investing activities |  | (401.7 | ) | (4.4 | ) | (222.3 | ) | (175.0 | )
Financing activities: |  |  |  |  |  |  |  |  |
Repurchase of 3.5% senior subordinated convertible notes |  | (62.7 | ) | (62.7 | ) | — |  | — |
Issuance of 5.75% senior subordinated notes |  | 550.0 |  | 550.0 |  | — |  | — |
Repurchase of 7.75% senior subordinated notes |  | (390.8 | ) | (390.8 | ) | — |  | — |
Net borrowings (repayments) of long-term debt |  | (28.5 | ) | (98.9 | ) | 50.9 |  | 19.5 |
Net borrowings (repayments) of floor plan notes payable — non-trade |  | 70.5 |  | 21.2 |  | 41.6 |  | 7.7 |
Repurchases of common stock |  | (9.8 | ) | (9.8 | ) | — |  | — |
Dividends |  | (41.5 | ) | (41.5 | ) | — |  | — |
Payment of deferred financing fees |  | (8.6 | ) | (8.6 | ) | — |  | — |
Other |  | (1.1 | ) | — |  | — |  | (1.1 | )
Distributions from (to) parent |  | — |  | — |  | 5.2 |  | (5.2 | )
Net cash from (used in) continuing financing activities |  | 77.5 |  | (41.1 | ) | 97.7 |  | 20.9 |
Net cash from (used in) discontinued operations |  | 17.7 |  | — |  | 7.7 |  | 10.0 |
Net change in cash and cash equivalents |  | 17.0 |  | — |  | 8.9 |  | 8.1 |
Cash and cash equivalents, beginning of period |  | 26.8 |  | — |  | 25.8 |  | 1.0 |
Cash and cash equivalents, end of period |  | $ | 43.8 |  | $ | — |  | $ | 34.7 |  | $ | 9.1 |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2011
|  | Total Company |  | Penske Automotive Group |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |
Net cash from (used in) continuing operating activities |  | $ | 134.3 |  | $ | (39.4 | ) | $ | 186.1 |  | $ | (12.4 | )
Investing activities: |  |  |  |  |  |  |  |  |
Purchase of equipment and improvements |  | (131.2 | ) | (1.3 | ) | (75.6 | ) | (54.3 | )
Acquisitions, net |  | (232.1 | ) | — |  | (194.3 | ) | (37.8 | )
Other |  | 2.9 |  | — |  | — |  | 2.9 |
Net cash from (used in) continuing investing activities |  | (360.4 | ) | (1.3 | ) | (269.9 | ) | (89.2 | )
Financing activities: |  |  |  |  |  |  |  |  |
Repurchase of 3.5% senior subordinated convertible notes |  | (87.3 | ) | (87.3 | ) | — |  | — |
Net borrowings (repayments) of long-term debt |  | 155.2 |  | 125.0 |  | 18.4 |  | 11.8 |
Net borrowings (repayments) of floor plan notes payable — non-trade |  | 197.0 |  | 65.9 |  | 34.9 |  | 96.2 |
Proceeds from exercises of options, including excess tax benefit |  | 3.4 |  | 3.4 |  | — |  | — |
Repurchases of common stock |  | (44.3 | ) | (44.3 | ) | — |  | — |
Dividends |  | (22.0 | ) | (22.0 | ) | — |  | — |
Distributions from (to) parent |  | — |  | — |  | 6.1 |  | (6.1 | )
Net cash from (used in) continuing financing activities |  | 202.0 |  | 40.7 |  | 59.4 |  | 101.9 |
Net cash from discontinued operations |  | 32.8 |  | — |  | 34.4 |  | (1.6 | )
Net change in cash and cash equivalents |  | 8.7 |  | — |  | 10.0 |  | (1.3 | )
Cash and cash equivalents, beginning of period |  | 18.1 |  | — |  | 15.8 |  | 2.3 |
Cash and cash equivalents, end of period |  | $ | 26.8 |  | $ | — |  | $ | 25.8 |  | $ | 1.0 |

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