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Condensed Consolidating Financial Information (Tables) | 3 Months Ended
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Mar. 31, 2017
Condensed Consolidating Financial Information |
CONDENSED CONSOLIDATING BALANCE SHEET | CONDENSED CONSOLIDATING BALANCE SHEET March 31, 2017
|  |  |  |  |  |  |  | Penske |  |  |  |  |  |  |
|  | Total |  |  |  |  | Automotive |  | Guarantor |  | Non-Guarantor |
|  | Company |  | Eliminations |  | Group |  | Subsidiaries |  | Subsidiaries |
Cash and cash equivalents |  | $ | 72.2 |  | $ | — |  | $ | — |  | $ | 1.5 |  | $ | 70.7 |
Accounts receivable, net |  |  | 852.2 |  |  | (434.1) |  |  | 434.1 |  |  | 371.2 |  |  | 481.0 |
Inventories |  |  | 3,565.8 |  |  | — |  |  | — |  |  | 1,896.2 |  |  | 1,669.6 |
Other current assets |  |  | 99.3 |  |  | — |  |  | 14.9 |  |  | 16.1 |  |  | 68.3 |
Assets held for sale |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total current assets |  |  | 4,589.5 |  |  | (434.1) |  |  | 449.0 |  |  | 2,285.0 |  |  | 2,289.6 |
Property and equipment, net |  |  | 1,874.7 |  |  | — |  |  | 3.7 |  |  | 967.7 |  |  | 903.3 |
Intangible assets |  |  | 1,985.4 |  |  | — |  |  | — |  |  | 1,236.3 |  |  | 749.1 |
Equity method investments |  |  | 906.8 |  |  | — |  |  | 847.2 |  |  | — |  |  | 59.6 |
Other long-term assets |  |  | 39.0 |  |  | (2,379.3) |  |  | 2,384.7 |  |  | 14.8 |  |  | 18.8 |
Total assets |  | $ | 9,395.4 |  | $ | (2,813.4) |  | $ | 3,684.6 |  | $ | 4,503.8 |  | $ | 4,020.4 |
Floor plan notes payable |  | $ | 2,104.8 |  | $ | — |  | $ | — |  | $ | 1,123.1 |  | $ | 981.7 |
Floor plan notes payable — non-trade |  |  | 1,296.4 |  |  | — |  |  | 154.9 |  |  | 659.7 |  |  | 481.8 |
Accounts payable |  |  | 555.9 |  |  | — |  |  | 6.7 |  |  | 147.5 |  |  | 401.7 |
Accrued expenses |  |  | 413.9 |  |  | (434.1) |  |  | 1.0 |  |  | 93.8 |  |  | 753.2 |
Current portion of long-term debt |  |  | 48.4 |  |  | — |  |  | — |  |  | 6.5 |  |  | 41.9 |
Liabilities held for sale |  |  | 0.8 |  |  | — |  |  | — |  |  | 0.8 |  |  | — |
Total current liabilities |  |  | 4,420.2 |  |  | (434.1) |  |  | 162.6 |  |  | 2,031.4 |  |  | 2,660.3 |
Long-term debt |  |  | 1,989.0 |  |  | (180.3) |  |  | 1,625.1 |  |  | 198.3 |  |  | 345.9 |
Deferred tax liabilities |  |  | 608.6 |  |  | — |  |  | — |  |  | 602.9 |  |  | 5.7 |
Other long-term liabilities |  |  | 480.7 |  |  | — |  |  | — |  |  | 68.2 |  |  | 412.5 |
Total liabilities |  |  | 7,498.5 |  |  | (614.4) |  |  | 1,787.7 |  |  | 2,900.8 |  |  | 3,424.4 |
Total equity |  |  | 1,896.9 |  |  | (2,199.0) |  |  | 1,896.9 |  |  | 1,603.0 |  |  | 596.0 |
Total liabilities and equity |  | $ | 9,395.4 |  | $ | (2,813.4) |  | $ | 3,684.6 |  | $ | 4,503.8 |  | $ | 4,020.4 |
CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2016
|  |  |  |  |  |  |  | Penske |  |  |  |  |  |  |
|  | Total |  |  |  |  | Automotive |  | Guarantor |  | Non-Guarantor |
|  | Company |  | Eliminations |  | Group |  | Subsidiaries |  | Subsidiaries |
Cash and cash equivalents |  | $ | 24.0 |  | $ | — |  | $ | — |  | $ | 9.4 |  | $ | 14.6 |
Accounts receivable, net |  |  | 879.0 |  |  | (447.0) |  |  | 447.0 |  |  | 483.6 |  |  | 395.4 |
Inventories |  |  | 3,408.2 |  |  | — |  |  | — |  |  | 1,830.5 |  |  | 1,577.7 |
Other current assets |  |  | 73.9 |  |  | — |  |  | 14.3 |  |  | 14.6 |  |  | 45.0 |
Assets held for sale |  |  | 8.4 |  |  | — |  |  | — |  |  | 8.4 |  |  | — |
Total current assets |  |  | 4,393.5 |  |  | (447.0) |  |  | 461.3 |  |  | 2,346.5 |  |  | 2,032.7 |
Property and equipment, net |  |  | 1,806.5 |  |  | — |  |  | 3.3 |  |  | 961.0 |  |  | 842.2 |
Intangible assets |  |  | 1,711.3 |  |  | — |  |  | — |  |  | 1,079.6 |  |  | 631.7 |
Equity method investments |  |  | 893.4 |  |  | — |  |  | 833.7 |  |  | — |  |  | 59.7 |
Other long-term assets |  |  | 28.3 |  |  | (2,215.0) |  |  | 2,220.6 |  |  | 4.1 |  |  | 18.6 |
Total assets |  | $ | 8,833.0 |  | $ | (2,662.0) |  | $ | 3,518.9 |  | $ | 4,391.2 |  | $ | 3,584.9 |
Floor plan notes payable |  | $ | 2,084.5 |  | $ | — |  | $ | — |  | $ | 1,178.0 |  | $ | 906.5 |
Floor plan notes payable — non-trade |  |  | 1,233.3 |  |  | — |  |  | 156.0 |  |  | 623.2 |  |  | 454.1 |
Accounts payable |  |  | 497.4 |  |  | — |  |  | 4.9 |  |  | 171.9 |  |  | 320.6 |
Accrued expenses |  |  | 360.0 |  |  | (447.0) |  |  | 0.9 |  |  | 77.2 |  |  | 728.9 |
Current portion of long-term debt |  |  | 48.3 |  |  | — |  |  | — |  |  | 6.0 |  |  | 42.3 |
Liabilities held for sale |  |  | 6.1 |  |  | — |  |  | — |  |  | 6.1 |  |  | — |
Total current liabilities |  |  | 4,229.6 |  |  | (447.0) |  |  | 161.8 |  |  | 2,062.4 |  |  | 2,452.4 |
Long-term debt |  |  | 1,828.8 |  |  | (175.8) |  |  | 1,577.6 |  |  | 186.0 |  |  | 241.0 |
Deferred tax liabilities |  |  | 564.6 |  |  | — |  |  | — |  |  | 560.9 |  |  | 3.7 |
Other long-term liabilities |  |  | 430.5 |  |  | — |  |  | — |  |  | 65.2 |  |  | 365.3 |
Total liabilities |  |  | 7,053.5 |  |  | (622.8) |  |  | 1,739.4 |  |  | 2,874.5 |  |  | 3,062.4 |
Total equity |  |  | 1,779.5 |  |  | (2,039.2) |  |  | 1,779.5 |  |  | 1,516.7 |  |  | 522.5 |
Total liabilities and equity |  | $ | 8,833.0 |  | $ | (2,662.0) |  | $ | 3,518.9 |  | $ | 4,391.2 |  | $ | 3,584.9 |
CONDENSED CONSOLIDATING STATEMENT OF INCOME | CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended March 31, 2017
|  |  |  |  |  |  |  | Penske |  |  |  |  |  |  |
|  | Total |  |  |  |  | Automotive |  | Guarantor |  | Non-Guarantor |
|  | Company |  | Eliminations |  | Group |  | Subsidiaries |  | Subsidiaries |
Revenues |  | $ | 5,081.1 |  | $ | — |  | $ | — |  | $ | 2,667.9 |  | $ | 2,413.2 |
Cost of sales |  |  | 4,306.8 |  |  | — |  |  | — |  |  | 2,231.2 |  |  | 2,075.6 |
Gross profit |  |  | 774.3 |  |  | — |  |  | — |  |  | 436.7 |  |  | 337.6 |
Selling, general and administrative expenses |  |  | 601.7 |  |  | — |  |  | 6.0 |  |  | 338.4 |  |  | 257.3 |
Depreciation |  |  | 22.4 |  |  | — |  |  | 0.4 |  |  | 12.7 |  |  | 9.3 |
Operating income |  |  | 150.2 |  |  | — |  |  | (6.4) |  |  | 85.6 |  |  | 71.0 |
Floor plan interest expense |  |  | (13.7) |  |  | — |  |  | (1.0) |  |  | (8.4) |  |  | (4.3) |
Other interest expense |  |  | (25.0) |  |  | — |  |  | (16.5) |  |  | (2.1) |  |  | (6.4) |
Equity in earnings of affiliates |  |  | 13.2 |  |  | — |  |  | 12.5 |  |  | — |  |  | 0.7 |
Equity in earnings of subsidiaries |  |  | — |  |  | (135.7) |  |  | 135.7 |  |  | — |  |  | — |
Income from continuing operations before income taxes |  |  | 124.7 |  |  | (135.7) |  |  | 124.3 |  |  | 75.1 |  |  | 61.0 |
Income taxes |  |  | (41.1) |  |  | 44.9 |  |  | (41.1) |  |  | (32.6) |  |  | (12.3) |
Income from continuing operations |  |  | 83.6 |  |  | (90.8) |  |  | 83.2 |  |  | 42.5 |  |  | 48.7 |
Loss from discontinued operations, net of tax |  |  | (0.6) |  |  | 0.6 |  |  | (0.6) |  |  | (0.6) |  |  | — |
Net income |  |  | 83.0 |  |  | (90.2) |  |  | 82.6 |  |  | 41.9 |  |  | 48.7 |
Other comprehensive income (loss), net of tax |  |  | 26.1 |  |  | (23.5) |  |  | 26.1 |  |  | — |  |  | 23.5 |
Comprehensive income |  |  | 109.1 |  |  | (113.7) |  |  | 108.7 |  |  | 41.9 |  |  | 72.2 |
Less: Comprehensive income attributable to non-controlling interests |  |  | 0.8 |  |  | (0.4) |  |  | 0.4 |  |  | — |  |  | 0.8 |
Comprehensive income attributable to Penske Automotive Group common stockholders |  | $ | 108.3 |  | $ | (113.3) |  | $ | 108.3 |  | $ | 41.9 |  | $ | 71.4 |
CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended March 31, 2016
|  |  |  |  |  |  |  | Penske |  |  |  |  |  |  |
|  | Total |  |  |  |  | Automotive |  | Guarantor |  | Non-Guarantor |
|  | Company |  | Eliminations |  | Group |  | Subsidiaries |  | Subsidiaries |
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 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 CASH FLOWS | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Three Months Ended March 31, 2017
|  |  |  |  | Penske |  |  |  |  |  |  |
|  | Total |  | Automotive |  | Guarantor |  | Non-Guarantor |
|  | Company |  | Group |  | Subsidiaries |  | Subsidiaries |
Net cash provided by (used in) continuing operating activities |  | $ | 198.6 |  | $ | (17.1) |  | $ | 127.1 |  | $ | 88.6 |
Investing activities: |  |  |  |  |  |  |  |  |  |  |  |  |
Purchase of equipment and improvements |  |  | (36.9) |  |  | (0.4) |  |  | (20.1) |  |  | (16.4) |
Acquisitions, net |  |  | (314.2) |  |  | — |  |  | (199.2) |  |  | (115.0) |
Other |  |  | 9.0 |  |  | — |  |  | 9.0 |  |  | — |
Net cash used in continuing investing activities |  |  | (342.1) |  |  | (0.4) |  |  | (210.3) |  |  | (131.4) |
Financing activities: |  |  |  |  |  |  |  |  |  |  |  |  |
Net borrowings of long-term debt |  |  | 153.1 |  |  | 47.0 |  |  | 12.7 |  |  | 93.4 |
Net borrowings (repayments) of floor plan notes payable — non-trade |  |  | 63.0 |  |  | (1.2) |  |  | 59.4 |  |  | 4.8 |
Repurchases of common stock |  |  | (2.7) |  |  | (2.7) |  |  | — |  |  | — |
Dividends |  |  | (25.6) |  |  | (25.6) |  |  | — |  |  | — |
Distributions from (to) parent |  |  | — |  |  | — |  |  | 0.7 |  |  | (0.7) |
Net cash provided by continuing financing activities |  |  | 187.8 |  |  | 17.5 |  |  | 72.8 |  |  | 97.5 |
Net cash provided by discontinued operations |  |  | 2.5 |  |  | — |  |  | 2.5 |  |  | — |
Effect of exchange rate changes on cash and cash equivalents |  |  | 1.4 |  |  | — |  |  | — |  |  | 1.4 |
Net change in cash and cash equivalents |  |  | 48.2 |  |  | — |  |  | (7.9) |  |  | 56.1 |
Cash and cash equivalents, beginning of period |  |  | 24.0 |  |  | — |  |  | 9.4 |  |  | 14.6 |
Cash and cash equivalents, end of period |  | $ | 72.2 |  | $ | — |  | $ | 1.5 |  | $ | 70.7 |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Three Months Ended March 31, 2016
|  |  |  |  | Penske |  |  |  |  |  |  |
|  | Total |  | Automotive |  | Guarantor |  | Non-Guarantor |
|  | Company |  | Group |  | Subsidiaries |  | Subsidiaries |
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 |

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