13. Condensed Consolidating Financial Information

The following tables include condensed consolidating financial information as of September 30, 2015 and December 31, 2014 and for the three and nine month periods ended September 30, 2015 and 2014 for Penske Automotive Group, Inc. (as the issuer of the 5.75% and 5.375% Notes), guarantor subsidiaries and non-guarantor subsidiaries (primarily representing non-U.S. entities). Guarantor subsidiaries are directly or indirectly 100% owned by PAG, and the guarantees are full and unconditional, and joint and several. The guarantees may be released under certain circumstances upon resale, or transfer by us of the stock of the related guarantor or all or substantially all of the assets of the guarantor to a non-affiliate.

CONDENSED CONSOLIDATING BALANCE SHEET
September 30, 2015

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

Cash and cash equivalents	$	49.7	$	—		$	—	$	—	$	49.7
Accounts receivable, net	775.5		(428.1		)	428.1		307.0		468.5
Inventories	3,188.4		—			—		1,526.0		1,662.4
Other current assets	109.0		—			4.7		34.2		70.1
Assets held for sale	15.3		—			—		9.2		6.1

Total current assets	4,137.9		(428.1		)	432.8		1,876.4		2,256.8
Property and equipment, net	1,476.9		—			4.1		796.3		676.5
Intangible assets	1,690.4		—			—		833.9		856.5
Equity method investments	340.1		—			298.9		—		41.2
Other long-term assets	29.6		(2,155.9		)	2,170.9		1.5		13.1

Total assets	$	7,674.9	$	(2,584.0	)	$	2,906.7	$	3,508.1	$	3,844.1

Floor plan notes payable	$	2,096.0	$	—		$	—	$	1,186.7	$	909.3
Floor plan notes payable — non-trade	1,072.6		—			153.6		268.0		651.0
Accounts payable	482.4		—			3.1		131.1		348.2
Accrued expenses	358.3		(428.1		)	0.9		157.3		628.2
Current portion of long-term debt	29.7		—			—		6.9		22.8
Liabilities held for sale	8.3		—			—		4.6		3.7

Total current liabilities	4,047.3		(428.1		)	157.6		1,754.6		2,563.2
Long-term debt	1,155.2		(262.0		)	928.0		110.4		378.8
Deferred tax liabilities	395.6		—			—		371.8		23.8
Other long-term liabilities	255.7		—			—		67.2		188.5

Total liabilities	5,853.8		(690.1		)	1,085.6		2,304.0		3,154.3
Total equity	1,821.1		(1,893.9		)	1,821.1		1,204.1		689.8

Total liabilities and equity	$	7,674.9	$	(2,584.0	)	$	2,906.7	$	3,508.1	$	3,844.1

CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2014

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

Cash and cash equivalents	$	36.3	$	—		$	—	$	—	$	36.3
Accounts receivable, net	707.1		(409.6		)	409.6		392.6		314.5
Inventories	2,836.4		—			—		1,481.5		1,354.9
Other current assets	124.8		—			4.5		58.3		62.0
Assets held for sale	156.1		—			—		150.9		5.2

Total current assets	3,860.7		(409.6		)	414.1		2,083.3		1,772.9
Property and equipment, net	1,331.6		—			4.3		754.6		572.7
Intangible assets	1,656.5		—			—		817.9		838.6
Equity method investments	352.8		—			285.5		—		67.3
Other long-term assets	26.6		(1,990.8		)	2,005.0		4.4		8.0

Total assets	$	7,228.2	$	(2,400.4	)	$	2,708.9	$	3,660.2	$	3,259.5

Floor plan notes payable	$	1,812.6	$	—		$	—	$	1,102.0	$	710.6
Floor plan notes payable — non-trade	933.8		—			86.8		398.1		448.9
Accounts payable	422.5		—			2.9		208.3		211.3
Accrued expenses	316.0		(409.6		)	—		123.3		602.3
Current portion of long-term debt	37.2		—			—		4.6		32.6
Liabilities held for sale	108.2		—			—		105.9		2.3

Total current liabilities	3,630.3		(409.6		)	89.7		1,942.2		2,008.0
Long-term debt	1,316.0		(247.0		)	938.0		116.1		508.9
Deferred tax liabilities	409.9		—			—		385.6		24.3
Other long-term liabilities	190.8		—			—		66.9		123.9

Total liabilities	5,547.0		(656.6		)	1,027.7		2,510.8		2,665.1
Total equity	1,681.2		(1,743.8		)	1,681.2		1,149.4		594.4

Total liabilities and equity	$	7,228.2	$	(2,400.4	)	$	2,708.9	$	3,660.2	$	3,259.5

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Three Months Ended September 30, 2015

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

Revenues	$	4,960.1		$	—		$	—		$	2,591.2		$	2,368.9
Cost of sales	4,230.9			—			—			2,197.2			2,033.7

Gross profit	729.2			—			—			394.0			335.2
Selling, general and administrative expenses	563.4			—			5.7			302.6			255.1
Depreciation	19.8			—			0.4			10.6			8.8

Operating income	146.0			—			(6.1		)	80.8			71.3
Floor plan interest expense	(11.4		)	—			(0.7		)	(5.6		)	(5.1		)
Other interest expense	(16.3		)	—			(10.6		)	(1.3		)	(4.4		)
Equity in earnings of affiliates	11.0			—			11.0			—			—
Equity in earnings of subsidiaries	—			(134.8		)	134.8			—			—

Income from continuing operations before income taxes	129.3			(134.8		)	128.4			73.9			61.8
Income taxes	(41.7		)	43.8			(41.7		)	(29.4		)	(14.4		)

Income from continuing operations	87.6			(91.0		)	86.7			44.5			47.4
(Loss) income from discontinued operations, net of tax	(0.1		)	0.1			(0.1		)	(0.1		)	—

Net income	87.5			(90.9		)	86.6			44.4			47.4
Other comprehensive income (loss), net of tax	(42.5		)	40.8			(42.5		)	—			(40.8		)

Comprehensive income	45.0			(50.1		)	44.1			44.4			6.6

Less: Comprehensive income attributable to non-controlling interests	1.5			(0.6		)	0.6			—			1.5

Comprehensive income attributable to Penske Automotive Group common stockholders	$	43.5		$	(49.5	)	$	43.5		$	44.4		$	5.1

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Three Months Ended September 30, 2014

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

Revenues	$	4,396.7		$	—		$	—		$	2,489.9		$	1,906.8
Cost of sales	3,749.1			—			—			2,112.5			1,636.6

Gross profit	647.6			—			—			377.4			270.2
Selling, general and administrative expenses	502.3			—			11.5			283.0			207.8
Depreciation	17.3			—			0.4			9.6			7.3

Operating income	128.0			—			(11.9		)	84.8			55.1
Floor plan interest expense	(11.3		)	—			(2.5		)	(5.1		)	(3.7		)
Other interest expense	(12.4		)	—			(7.4		)	(0.5		)	(4.5		)
Equity in earnings of affiliates	12.7			—			11.7			—			1.0
Equity in earnings of subsidiaries	—			(126.8		)	126.8			—			—

Income from continuing operations before income taxes	117.0			(126.8		)	116.7			79.2			47.9
Income taxes	(39.7		)	43.1			(39.7		)	(31.4		)	(11.7		)

Income from continuing operations	77.3			(83.7		)	77.0			47.8			36.2
(Loss) income from discontinued operations, net of tax	(2.2		)	2.5			(2.5		)	(1.6		)	(0.6		)

Net income	75.1			(81.2		)	74.5			46.2			35.6
Other comprehensive income (loss), net of tax	(51.0		)	50.1			(51.0		)	1.1			(51.2		)

Comprehensive income	24.1			(31.1		)	23.5			47.3			(15.6		)

Less: Comprehensive income attributable to non-controlling interests	(0.1		)	0.7			(0.7		)	—			(0.1		)

Comprehensive income attributable to Penske Automotive Group common stockholders	$	24.2		$	(31.8	)	$	24.2		$	47.3		$	(15.5	)

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Nine Months Ended September 30, 2015

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

Revenues	$	14,363.6		$	—		$	—		$	7,548.5		$	6,815.1
Cost of sales	12,213.2			—			—			6,372.4			5,840.8

Gross profit	2,150.4			—			—			1,176.1			974.3
Selling, general and administrative expenses	1,652.3			—			18.0			895.9			738.4
Depreciation	57.7			—			1.2			31.2			25.3

Operating income	440.4			—			(19.2		)	249.0			210.6
Floor plan interest expense	(32.7		)	—			(2.1		)	(16.4		)	(14.2		)
Other interest expense	(49.0		)	—			(30.6		)	(4.0		)	(14.4		)
Equity in earnings of affiliates	29.7			—			27.3			—			2.4
Equity in earnings of subsidiaries	—			(410.2		)	410.2			—			—

Income from continuing operations before income taxes	388.4			(410.2		)	385.6			228.6			184.4
Income taxes	(128.2		)	136.3			(128.2		)	(91.8		)	(44.5		)

Income from continuing operations	260.2			(273.9		)	257.4			136.8			139.9
(Loss) income from discontinued operations, net of tax	(1.1		)	1.7			(1.7		)	(1.3		)	0.2

Net income	259.1			(272.2		)	255.7			135.5			140.1
Other comprehensive income (loss), net of tax	(59.3		)	55.6			(59.3		)	—			(55.6		)

Comprehensive income	199.8			(216.6		)	196.4			135.5			84.5

Less: Comprehensive income attributable to non-controlling interests	3.1			0.2			(0.2		)	—			3.1

Comprehensive income attributable to Penske Automotive Group common stockholders	$	196.7		$	(216.8	)	$	196.6		$	135.5		$	81.4

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Nine Months Ended September 30, 2014

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

Revenues	$	12,806.4		$	—		$	—		$	7,102.0		$	5,704.4
Cost of sales	10,887.3			—			—			5,988.2			4,899.1

Gross profit	1,919.1			—			—			1,113.8			805.3
Selling, general and administrative expenses	1,486.0			—			23.2			853.2			609.6
Depreciation	50.6			—			1.0			27.9			21.7

Operating income	382.5			—			(24.2		)	232.7			174.0
Floor plan interest expense	(34.2		)	—			(7.3		)	(15.4		)	(11.5		)
Other interest expense	(37.2		)	—			(21.9		)	(1.4		)	(13.9		)
Equity in earnings of affiliates	28.7			—			25.3			—			3.4
Equity in earnings of subsidiaries	—			(368.5		)	368.5			—			—

Income from continuing operations before income taxes	339.8			(368.5		)	340.4			215.9			152.0
Income taxes	(115.7		)	125.1			(115.7		)	(84.0		)	(41.1		)

Income from continuing operations	224.1			(243.4		)	224.7			131.9			110.9
(Loss) income from discontinued operations, net of tax	(7.2		)	9.8			(9.8		)	4.2			(11.4		)

Net income	216.9			(233.6		)	214.9			136.1			99.5
Other comprehensive income (loss), net of tax	(26.0		)	24.9			(26.0		)	3.2			(28.1		)

Comprehensive income	190.9			(208.7		)	188.9			139.3			71.4

Less: Comprehensive income attributable to non-controlling interests	1.0			0.9			(0.9		)	—			1.0

Comprehensive income attributable to Penske Automotive Group common stockholders	$	189.9		$	(209.6	)	$	189.8		$	139.3		$	70.4

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Nine Months Ended September 30, 2015

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

Net cash provided by continuing operating activities	$	373.4		$	28.4		$	154.3		$	190.7

Investing activities:
Purchase of equipment and improvements	(151.1		)	(1.0		)	(74.0		)	(76.1		)
Acquisitions, net	(85.4		)	—			(21.7		)	(63.7		)
Other	0.2			—			—			0.2

Net cash used in continuing investing activities	(236.3		)	(1.0		)	(95.7		)	(139.6		)

Financing activities:
Net (repayments) borrowings of long-term debt	(165.7		)	(10.0		)	24.0			(179.7		)
Net borrowings (repayments) of floor plan notes payable — non-trade	94.6			66.9			(130.1		)	157.8
Payment of deferred financing fees	(1.8		)	—			—			(1.8		)
Repurchases of common stock	(22.0		)	(22.0		)	—			—
Dividends	(62.3		)	(62.3		)	—			—
Other	(5.9		)	—			—			(5.9		)
Distributions from (to) parent	—			—			8.3			(8.3		)

Net cash used in continuing financing activities	(163.1		)	(27.4		)	(97.8		)	(37.9		)
Net cash provided by discontinued operations	39.7			—			39.2			0.5
Effect of exchange rate changes on cash and cash equivalents	(0.3		)	—			—			(0.3		)

Net change in cash and cash equivalents	13.4			—			—			13.4
Cash and cash equivalents, beginning of period	36.3			—			—			36.3

Cash and cash equivalents, end of period	$	49.7		$	—		$	—		$	49.7

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Nine Months Ended September 30, 2014

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

Net cash provided by (used in) continuing operating activities	$	276.0		$	(19.4	)	$	169.0		$	126.4

Investing activities:
Purchase of equipment and improvements	(139.6		)	(0.6		)	(82.9		)	(56.1		)
Acquisitions, net	(86.2		)	—			(80.5		)	(5.7		)
Other	(25.3		)	4.2			(10.6		)	(18.9		)

Net cash (used in) provided by continuing investing activities	(251.1		)	3.6			(174.0		)	(80.7		)

Financing activities:
Net borrowings of long-term debt	127.0			84.0			9.6			33.4
Net borrowings (repayments) of floor plan notes payable — non-trade	—			(1.2		)	(20.9		)	22.1
Repurchases of common stock	(15.5		)	(15.5		)	—			—
Dividends	(51.5		)	(51.5		)	—			—
Other	0.2			—			—			0.2
Distributions from (to) parent	—			—			4.8			(4.8		)

Net cash provided by (used in) continuing financing activities	60.2			15.8			(6.5		)	50.9
Net cash provided by (used in) discontinued operations	15.1			—			(1.5		)	16.6

Net change in cash and cash equivalents	100.2			—			(13.0		)	113.2
Cash and cash equivalents, beginning of period	50.3			—			13.0			37.3

Cash and cash equivalents, end of period	$	150.5		$	—		$	—		$	150.5