XML 44 R31.htm IDEA: XBRL DOCUMENT
v3.4.0.3

Condensed Consolidating Financial Information (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2016
Condensed Consolidating Financial Information |
CONDENSED CONSOLIDATING BALANCE SHEET | CONDENSED CONSOLIDATING BALANCE SHEET March 31, 2016
|  |  |  |  |  |  |  | Penske |  |  |  |  |  |  |
|  | Total |  |  |  |  | Automotive |  | Guarantor |  | Non‑Guarantor |
|  | Company |  | Eliminations |  | Group |  | Subsidiaries |  | Subsidiaries |
|  | (In millions) |
Cash and cash equivalents |  | $ | 45.6 |  | $ | — |  | $ | — |  | $ | — |  | $ | 45.6 |
Accounts receivable, net |  |  | 835.6 |  |  | (434.6) |  |  | 434.6 |  |  | 323.1 |  |  | 512.5 |
Inventories |  |  | 3,513.4 |  |  | — |  |  | — |  |  | 1,685.3 |  |  | 1,828.1 |
Other current assets |  |  | 101.5 |  |  | — |  |  | 4.2 |  |  | 29.7 |  |  | 67.6 |
Assets held for sale |  |  | 9.8 |  |  | — |  |  | — |  |  | 9.7 |  |  | 0.1 |
Total current assets |  |  | 4,505.9 |  |  | (434.6) |  |  | 438.8 |  |  | 2,047.8 |  |  | 2,453.9 |
Property and equipment, net |  |  | 1,545.8 |  |  | — |  |  | 4.0 |  |  | 837.3 |  |  | 704.5 |
Intangible assets |  |  | 1,734.8 |  |  | — |  |  | — |  |  | 878.5 |  |  | 856.3 |
Equity method investments |  |  | 366.6 |  |  | — |  |  | 303.6 |  |  | — |  |  | 63.0 |
Other long-term assets |  |  | 19.8 |  |  | (2,209.1) |  |  | 2,215.4 |  |  | 7.6 |  |  | 5.9 |
Total assets |  | $ | 8,172.9 |  | $ | (2,643.7) |  | $ | 2,961.8 |  | $ | 3,771.2 |  | $ | 4,083.6 |
Floor plan notes payable |  | $ | 2,262.5 |  | $ | — |  | $ | — |  | $ | 1,267.7 |  | $ | 994.8 |
Floor plan notes payable—non-trade |  |  | 1,187.3 |  |  | — |  |  | 155.0 |  |  | 368.3 |  |  | 664.0 |
Accounts payable |  |  | 541.5 |  |  | — |  |  | 2.4 |  |  | 140.4 |  |  | 398.7 |
Accrued expenses |  |  | 388.0 |  |  | (434.6) |  |  | 1.1 |  |  | 144.7 |  |  | 676.8 |
Current portion of long-term debt |  |  | 54.5 |  |  | — |  |  | — |  |  | 4.1 |  |  | 50.4 |
Liabilities held for sale |  |  | 5.1 |  |  | — |  |  | — |  |  | 4.9 |  |  | 0.2 |
Total current liabilities |  |  | 4,438.9 |  |  | (434.6) |  |  | 158.5 |  |  | 1,930.1 |  |  | 2,784.9 |
Long-term debt |  |  | 1,330.1 |  |  | (255.6) |  |  | 1,079.3 |  |  | 132.0 |  |  | 374.4 |
Deferred tax liabilities |  |  | 437.8 |  |  | — |  |  | — |  |  | 421.3 |  |  | 16.5 |
Other long-term liabilities |  |  | 242.1 |  |  | — |  |  | — |  |  | 68.3 |  |  | 173.8 |
Total liabilities |  |  | 6,448.9 |  |  | (690.2) |  |  | 1,237.8 |  |  | 2,551.7 |  |  | 3,349.6 |
Total equity |  |  | 1,724.0 |  |  | (1,953.5) |  |  | 1,724.0 |  |  | 1,219.5 |  |  | 734.0 |
Total liabilities and equity |  | $ | 8,172.9 |  | $ | (2,643.7) |  | $ | 2,961.8 |  | $ | 3,771.2 |  | $ | 4,083.6 |
CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2015
|  |  |  |  |  |  |  | Penske |  |  |  |  |  |  |
|  | Total |  |  |  |  | Automotive |  | Guarantor |  | Non‑Guarantor |
|  | Company |  | Eliminations |  | Group |  | Subsidiaries |  | Subsidiaries |
|  | (In millions) |
Cash and cash equivalents |  | $ | 62.4 |  | $ | — |  | $ | — |  | $ | — |  | $ | 62.4 |
Accounts receivable, net |  |  | 782.3 |  |  | (430.4) |  |  | 430.4 |  |  | 400.8 |  |  | 381.5 |
Inventories |  |  | 3,463.5 |  |  | — |  |  | — |  |  | 1,650.5 |  |  | 1,813.0 |
Other current assets |  |  | 85.6 |  |  | — |  |  | 3.9 |  |  | 28.3 |  |  | 53.4 |
Assets held for sale |  |  | 13.1 |  |  | — |  |  | — |  |  | 8.9 |  |  | 4.2 |
Total current assets |  |  | 4,406.9 |  |  | (430.4) |  |  | 434.3 |  |  | 2,088.5 |  |  | 2,314.5 |
Property and equipment, net |  |  | 1,520.1 |  |  | — |  |  | 4.0 |  |  | 822.0 |  |  | 694.1 |
Intangible assets |  |  | 1,730.8 |  |  | — |  |  | — |  |  | 878.5 |  |  | 852.3 |
Equity method investments |  |  | 336.4 |  |  | — |  |  | 298.2 |  |  | — |  |  | 38.2 |
Other long-term assets |  |  | 19.2 |  |  | (2,253.4) |  |  | 2,259.9 |  |  | 7.2 |  |  | 5.5 |
Total assets |  | $ | 8,013.4 |  | $ | (2,683.8) |  | $ | 2,996.4 |  | $ | 3,796.2 |  | $ | 3,904.6 |
Floor plan notes payable |  | $ | 2,247.2 |  | $ | — |  | $ | — |  | $ | 1,295.0 |  | $ | 952.2 |
Floor plan notes payable—non-trade |  |  | 1,132.4 |  |  | — |  |  | 154.7 |  |  | 339.8 |  |  | 637.9 |
Accounts payable |  |  | 493.8 |  |  | — |  |  | 4.8 |  |  | 143.3 |  |  | 345.7 |
Accrued expenses |  |  | 378.1 |  |  | (430.4) |  |  | 0.1 |  |  | 112.3 |  |  | 696.1 |
Current portion of long-term debt |  |  | 28.0 |  |  | — |  |  | — |  |  | 5.7 |  |  | 22.3 |
Liabilities held for sale |  |  | 6.2 |  |  | — |  |  | — |  |  | 4.4 |  |  | 1.8 |
Total current liabilities |  |  | 4,285.7 |  |  | (430.4) |  |  | 159.6 |  |  | 1,900.5 |  |  | 2,656.0 |
Long-term debt |  |  | 1,247.0 |  |  | (256.4) |  |  | 1,001.9 |  |  | 109.2 |  |  | 392.3 |
Deferred tax liabilities |  |  | 433.4 |  |  | — |  |  | — |  |  | 413.4 |  |  | 20.0 |
Other long-term liabilities |  |  | 212.4 |  |  | — |  |  | — |  |  | 68.9 |  |  | 143.5 |
Total liabilities |  |  | 6,178.5 |  |  | (686.8) |  |  | 1,161.5 |  |  | 2,492.0 |  |  | 3,211.8 |
Total equity |  |  | 1,834.9 |  |  | (1,997.0) |  |  | 1,834.9 |  |  | 1,304.2 |  |  | 692.8 |
Total liabilities and equity |  | $ | 8,013.4 |  | $ | (2,683.8) |  | $ | 2,996.4 |  | $ | 3,796.2 |  | $ | 3,904.6 |
CONDENSED CONSOLIDATING STATEMENT OF INCOME | CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended March 31, 2016
|  |  |  |  |  |  |  | Penske |  |  |  |  |  |  |
|  | Total |  |  |  |  | Automotive |  | Guarantor |  | Non-Guarantor |
|  | Company |  | Eliminations |  | Group |  | Subsidiaries |  | Subsidiaries |
|  | (In millions) |
Revenues |  | $ | 4,824.6 |  | $ | — |  | $ | — |  | $ | 2,389.2 |  | $ | 2,435.4 |
Cost of sales |  |  | 4,100.8 |  |  | — |  |  | — |  |  | 2,006.2 |  |  | 2,094.6 |
Gross profit |  |  | 723.8 |  |  | — |  |  | — |  |  | 383.0 |  |  | 340.8 |
Selling, general and administrative expenses |  |  | 558.9 |  |  | — |  |  | 6.1 |  |  | 295.8 |  |  | 257.0 |
Depreciation |  |  | 20.8 |  |  | — |  |  | 0.4 |  |  | 10.8 |  |  | 9.6 |
Operating income |  |  | 144.1 |  |  | — |  |  | (6.5) |  |  | 76.4 |  |  | 74.2 |
Floor plan interest expense |  |  | (12.8) |  |  | — |  |  | (0.8) |  |  | (6.7) |  |  | (5.3) |
Other interest expense |  |  | (17.2) |  |  | — |  |  | (13.3) |  |  | 1.3 |  |  | (5.2) |
Equity in earnings of affiliates |  |  | 5.5 |  |  | — |  |  | 4.2 |  |  | — |  |  | 1.3 |
Equity in earnings of subsidiaries |  |  | — |  |  | (135.1) |  |  | 135.1 |  |  | — |  |  | — |
Income from continuing operations before income taxes |  |  | 119.6 |  |  | (135.1) |  |  | 118.7 |  |  | 71.0 |  |  | 65.0 |
Income taxes |  |  | (39.4) |  |  | 44.8 |  |  | (39.4) |  |  | (29.2) |  |  | (15.6) |
Income from continuing operations |  |  | 80.2 |  |  | (90.3) |  |  | 79.3 |  |  | 41.8 |  |  | 49.4 |
(Loss) income from discontinued operations, net of tax |  |  | — |  |  | 0.1 |  |  | (0.1) |  |  | 0.1 |  |  | (0.1) |
Net income |  |  | 80.2 |  |  | (90.2) |  |  | 79.2 |  |  | 41.9 |  |  | 49.3 |
Other comprehensive income (loss), net of tax |  |  | 1.2 |  |  | 0.3 |  |  | 1.2 |  |  | — |  |  | (0.3) |
Comprehensive income |  |  | 81.4 |  |  | (89.9) |  |  | 80.4 |  |  | 41.9 |  |  | 49.0 |
Less: Comprehensive income attributable to non-controlling interests |  |  | 2.4 |  |  | (1.5) |  |  | 1.5 |  |  | — |  |  | 2.4 |
Comprehensive income attributable to Penske Automotive Group common stockholders |  | $ | 79.0 |  | $ | (88.4) |  | $ | 78.9 |  | $ | 41.9 |  | $ | 46.6 |
CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended March 31, 2015
|  |  |  |  |  |  |  | Penske |  |  |  |  |  |  |
|  | Total |  |  |  |  | Automotive |  | Guarantor |  | Non-Guarantor |
|  | Company |  | Eliminations |  | Group |  | Subsidiaries |  | Subsidiaries |
|  | (In millions) |
Revenues |  | $ | 4,482.9 |  | $ | — |  | $ | — |  | $ | 2,348.3 |  | $ | 2,134.6 |
Cost of sales |  |  | 3,793.0 |  |  | — |  |  | — |  |  | 1,971.6 |  |  | 1,821.4 |
Gross profit |  |  | 689.9 |  |  | — |  |  | — |  |  | 376.7 |  |  | 313.2 |
Selling, general and administrative expenses |  |  | 535.8 |  |  | — |  |  | 6.7 |  |  | 293.2 |  |  | 235.9 |
Depreciation |  |  | 18.6 |  |  | — |  |  | 0.4 |  |  | 10.2 |  |  | 8.0 |
Operating income |  |  | 135.5 |  |  | — |  |  | (7.1) |  |  | 73.3 |  |  | 69.3 |
Floor plan interest expense |  |  | (10.3) |  |  | — |  |  | (0.7) |  |  | (5.2) |  |  | (4.4) |
Other interest expense |  |  | (16.3) |  |  | — |  |  | (9.8) |  |  | (1.3) |  |  | (5.2) |
Equity in earnings of affiliates |  |  | 6.7 |  |  | — |  |  | 5.8 |  |  | — |  |  | 0.9 |
Equity in earnings of subsidiaries |  |  | — |  |  | (127.0) |  |  | 127.0 |  |  | — |  |  | — |
Income from continuing operations before income taxes |  |  | 115.6 |  |  | (127.0) |  |  | 115.2 |  |  | 66.8 |  |  | 60.6 |
Income taxes |  |  | (38.8) |  |  | 42.8 |  |  | (38.8) |  |  | (28.3) |  |  | (14.5) |
Income from continuing operations |  |  | 76.8 |  |  | (84.2) |  |  | 76.4 |  |  | 38.5 |  |  | 46.1 |
(Loss) income from discontinued operations, net of tax |  |  | (0.9) |  |  | 1.2 |  |  | (1.2) |  |  | (1.1) |  |  | 0.2 |
Net income |  |  | 75.9 |  |  | (83.0) |  |  | 75.2 |  |  | 37.4 |  |  | 46.3 |
Other comprehensive income (loss), net of tax |  |  | (55.1) |  |  | 52.3 |  |  | (55.1) |  |  | — |  |  | (52.3) |
Comprehensive income |  |  | 20.8 |  |  | (30.7) |  |  | 20.1 |  |  | 37.4 |  |  | (6.0) |
Less: Comprehensive income attributable to non-controlling interests |  |  | 0.1 |  |  | 0.6 |  |  | (0.6) |  |  | — |  |  | 0.1 |
Comprehensive income attributable to Penske Automotive Group common stockholders |  | $ | 20.7 |  | $ | (31.3) |  | $ | 20.7 |  | $ | 37.4 |  | $ | (6.1) |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Three Months Ended March 31, 2016
|  |  |  |  | Penske |  |  |  |  |  |  |
|  | Total |  | Automotive |  | Guarantor |  | Non‑Guarantor |
|  | Company |  | Group |  | Subsidiaries |  | Subsidiaries |
|  | (In millions) |
Net cash provided by (used in) continuing operating activities |  | $ | 82.6 |  | $ | (12.5) |  | $ | 104.2 |  | $ | (9.1) |
Investing activities: |  |  |  |  |  |  |  |  |  |  |  |  |
Purchase of equipment and improvements |  |  | (46.8) |  |  | (0.4) |  |  | (26.4) |  |  | (20.0) |
Acquisitions, net |  |  | (0.4) |  |  | — |  |  | — |  |  | (0.4) |
Other |  |  | (25.7) |  |  | — |  |  | (0.3) |  |  | (25.4) |
Net cash used in continuing investing activities |  |  | (72.9) |  |  | (0.4) |  |  | (26.7) |  |  | (45.8) |
Financing activities: |  |  |  |  |  |  |  |  |  |  |  |  |
Net borrowings of long-term debt |  |  | 111.5 |  |  | 77.0 |  |  | 21.2 |  |  | 13.3 |
Net borrowings of floor plan notes payable—non-trade |  |  | 54.9 |  |  | 0.3 |  |  | 28.5 |  |  | 26.1 |
Repurchases of common stock |  |  | (167.9) |  |  | (167.9) |  |  | — |  |  | — |
Dividends |  |  | (23.3) |  |  | (23.3) |  |  | — |  |  | — |
Other |  |  | (4.6) |  |  | — |  |  | — |  |  | (4.6) |
Distributions from (to) parent |  |  | — |  |  | 126.8 |  |  | (126.8) |  |  | — |
Net cash (used in) provided by continuing financing activities |  |  | (29.4) |  |  | 12.9 |  |  | (77.1) |  |  | 34.8 |
Net cash provided by (used in) discontinued operations |  |  | 2.2 |  |  | — |  |  | (0.4) |  |  | 2.6 |
Effect of exchange rate changes on cash and cash equivalents |  |  | 0.7 |  |  | — |  |  | — |  |  | 0.7 |
Net change in cash and cash equivalents |  |  | (16.8) |  |  | — |  |  | — |  |  | (16.8) |
Cash and cash equivalents, beginning of period |  |  | 62.4 |  |  | — |  |  | — |  |  | 62.4 |
Cash and cash equivalents, end of period |  | $ | 45.6 |  | $ | — |  | $ | — |  | $ | 45.6 |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Three Months Ended March 31, 2015
|  |  |  |  | Penske |  |  |  |  |  |  |
|  | Total |  | Automotive |  | Guarantor |  | Non‑Guarantor |
|  | Company |  | Group |  | Subsidiaries |  | Subsidiaries |
|  | (In millions) |
Net cash provided by (used in) continuing operating activities |  | $ | 193.3 |  | $ | (10.6) |  | $ | 16.3 |  | $ | 187.6 |
Investing activities: |  |  |  |  |  |  |  |  |  |  |  |  |
Purchase of equipment and improvements |  |  | (33.7) |  |  | (0.5) |  |  | (19.2) |  |  | (14.0) |
Acquisitions, net |  |  | (86.4) |  |  | — |  |  | (21.7) |  |  | (64.7) |
Net cash used in continuing investing activities |  |  | (120.1) |  |  | (0.5) |  |  | (40.9) |  |  | (78.7) |
Financing activities: |  |  |  |  |  |  |  |  |  |  |  |  |
Net repayments of long-term debt |  |  | (139.3) |  |  | — |  |  | (1.3) |  |  | (138.0) |
Net borrowings (repayments) of floor plan notes payable—non-trade |  |  | 100.9 |  |  | 45.0 |  |  | (9.1) |  |  | 65.0 |
Payment of debt issuance costs |  |  | (1.2) |  |  | — |  |  | — |  |  | (1.2) |
Repurchases of common stock |  |  | (14.0) |  |  | (14.0) |  |  | — |  |  | — |
Dividends |  |  | (19.9) |  |  | (19.9) |  |  | — |  |  | — |
Other |  |  | — |  |  | — |  |  | — |  |  | — |
Distributions from (to) parent |  |  | — |  |  | — |  |  | 1.2 |  |  | (1.2) |
Net cash (used in) provided by continuing financing activities |  |  | (73.5) |  |  | 11.1 |  |  | (9.2) |  |  | (75.4) |
Net cash provided by discontinued operations |  |  | 33.9 |  |  | — |  |  | 33.8 |  |  | 0.1 |
Effect of exchange rate changes on cash and cash equivalents |  |  | (3.1) |  |  | — |  |  | — |  |  | (3.1) |
Net change in cash and cash equivalents |  |  | 30.5 |  |  | — |  |  | — |  |  | 30.5 |
Cash and cash equivalents, beginning of period |  |  | 36.3 |  |  | — |  |  | — |  |  | 36.3 |
Cash and cash equivalents, end of period |  | $ | 66.8 |  | $ | — |  | $ | — |  | $ | 66.8 |

X
- References No definition available. + Details
Name: | us-gaap_CondensedFinancialInformationOfParentCompanyOnlyDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of condensed balance sheet, including, but not limited to, balance sheets of consolidated entities and consolidation eliminations. + References No definition available. + Details
Name: | us-gaap_ScheduleOfCondensedBalanceSheetTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of condensed cash flow statement, including, but not limited to, cash flow statements of consolidated entities and consolidation eliminations. + References No definition available. + Details
Name: | us-gaap_ScheduleOfCondensedCashFlowStatementTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of condensed income statement, including, but not limited to, income statements of consolidated entities and consolidation eliminations. + References No definition available. + Details
Name: | us-gaap_ScheduleOfCondensedIncomeStatementTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration