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Related Party Transactions | 12 Months Ended
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Dec. 31, 2014
Related Party Transactions |
Related Party Transactions | 12. Related Party Transactions We sometimes pay to and/or receive fees from Penske Corporation and its affiliates for services rendered in the normal course of business, or to reimburse payments made to third parties on each other's behalf. These transactions are reviewed periodically by our Audit Committee and reflect the provider's cost or an amount mutually agreed upon by both parties. During 2014, 2013, and 2012, Penske Corporation and its affiliates billed us $7.3 million, $6.3 million, and $5.3 million, respectively, and we billed Penske Corporation and its affiliates $56 thousand, $24 thousand, and $31 thousand, respectively, for such services. As of December 31, 2014 and 2013, we had $14 thousand and $0 thousand of receivables from and $0.7 million and $0.6 million of payables to Penske Corporation and its subsidiaries, respectively. PAG, Penske Corporation and certain affiliates have entered into a joint insurance agreement which provides that, with respect to any joint insurance (such as our joint commercial crime insurance policy), available coverage with respect to a loss shall be paid to each party per occurrence as stipulated in the policies. In the event of losses by us and Penske Corporation that exceed the limit of liability for any policy or policy period, the total policy proceeds will be allocated based on the ratio of premiums paid. We are a 9.0% limited partner of PTL, a leading provider of transportation and supply chain services. PTL is owned 41.1% by Penske Corporation, 9.0% by us and the remaining 49.9% is owned by direct and indirect subsidiaries of GECC. We are party to agreements among the other partners which, among other things, provide us with specified distribution and governance rights and restrict our ability to transfer our interests. In 2014, 2013, and 2012, we received $11.6 million, $9.9 million, and $18.5 million, respectively, from PTL in pro rata cash dividends. In 2014, we formed a venture with PTL, Penske Commercial Leasing Australia. The venture combines PTL's fleet operations expertise with our market knowledge of commercial vehicles to rent heavy-duty commercial vehicles in Australia. This venture is accounted for as an equity method investment as discussed in Note 2. In 2014, we acquired Transportation Resource Partners' ("TRP") ownership interest in PCV US for $58.8 million, and now own 91% of that business, as previously discussed. TRP is an organization that invests in transportation-related industries in which our CEO, Roger S. Penske, is a managing member of. From time to time we enter into joint venture relationships in the ordinary course of business, pursuant to which we own and operate automotive dealerships together with other investors. We may also provide these dealerships with working capital and other debt financing at costs that are based on our incremental borrowing rate. As of December 31, 2014, our automotive joint venture relationships were as follows:
Location |  | Dealerships |  | Ownership Interest |
Fairfield, Connecticut |  | Audi, Mercedes-Benz, Sprinter, Porsche, smart |  |  | 82.19 | %(A)(C)
Greenwich, Connecticut |  | Mercedes-Benz |  |  | 80.00 | %(B)(C)
Las Vegas, Nevada |  | Ferrari, Maserati |  |  | 50.00 | %(D)
Frankfurt, Germany |  | Lexus, Toyota, Volkswagen |  |  | 50.00 | %(D)
Aachen, Germany |  | Audi, Citroën, Kia, Maserati, SEAT, Skoda, Toyota, Volkswagen |  |  | 50.00 | %(D)
Northern Italy |  | BMW, MINI, Maserati |  |  | 70.00 | %(C)
Barcelona, Spain |  | BMW, MINI |  |  | 50.00 | %(D)
(A) | An entity controlled by one of our directors, Lucio A. Noto (the "Investor"), owns a 17.81% interest in this joint venture which entitles the Investor to 20% of the joint venture's operating profits. In addition, the Investor has an option to purchase up to a total 20% interest in the joint venture for specified amounts.
(B) | An entity controlled by one of our directors, Lucio A. Noto (the "Investor"), owns a 20% interest in this joint venture.
(C) | Entity is consolidated in our financial statements.
(D) | Entity is accounted for using the equity method of accounting.
Additionally, we are party to non-automotive joint ventures including our investments in Max Cycles (50%), Penske Commercial Leasing Australia (45%), Penske Vehicle Services (31%), and National Powersport Auctions (7%) that are accounted for under the equity method as more fully discussed in Note 2, and our controlling interests in PCV US (91%) and i.M. Branded (90%) that are consolidated in our financial statements.

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39622-107864 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph b -Article 3A Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(k)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph k -Article 4 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39678-107864 + Details
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