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Condensed Consolidating Financial Information (Tables) | 3 Months Ended
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Mar. 31, 2018
Condensed Consolidating Financial Information |
CONDENSED CONSOLIDATING BALANCE SHEET | CONDENSED CONSOLIDATING BALANCE SHEET March 31, 2018
|  |  |  |  |  |  |  | Penske |  |  |  |  |  |  |
|  | Total |  |  |  |  | Automotive |  | Guarantor |  | Non-Guarantor |
|  | Company |  | Eliminations |  | Group |  | Subsidiaries |  | Subsidiaries |
Cash and cash equivalents |  | $ | 52.8 |  | $ | — |  | $ | — |  | $ | — |  | $ | 52.8 |
Accounts receivable, net |  |  | 1,035.4 |  |  | (466.7) |  |  | 466.7 |  |  | 444.0 |  |  | 591.4 |
Inventories |  |  | 3,972.2 |  |  | — |  |  | — |  |  | 1,878.3 |  |  | 2,093.9 |
Other current assets |  |  | 105.0 |  |  | — |  |  | 8.1 |  |  | 17.7 |  |  | 79.2 |
Total current assets |  |  | 5,165.4 |  |  | (466.7) |  |  | 474.8 |  |  | 2,340.0 |  |  | 2,817.3 |
Property and equipment, net |  |  | 2,173.5 |  |  | — |  |  | 3.0 |  |  | 997.7 |  |  | 1,172.8 |
Intangible assets |  |  | 2,213.2 |  |  | — |  |  | — |  |  | 1,328.6 |  |  | 884.6 |
Equity method investments |  |  | 1,276.2 |  |  | — |  |  | 1,204.7 |  |  | — |  |  | 71.5 |
Other long-term assets |  |  | 14.7 |  |  | (2,775.6) |  |  | 2,780.8 |  |  | 4.3 |  |  | 5.2 |
Total assets |  | $ | 10,843.0 |  | $ | (3,242.3) |  | $ | 4,463.3 |  | $ | 4,670.6 |  | $ | 4,951.4 |
Floor plan notes payable |  | $ | 2,355.6 |  | $ | — |  | $ | — |  | $ | 1,203.1 |  | $ | 1,152.5 |
Floor plan notes payable — non-trade |  |  | 1,413.8 |  |  | — |  |  | 197.5 |  |  | 558.8 |  |  | 657.5 |
Accounts payable |  |  | 720.5 |  |  | — |  |  | 4.2 |  |  | 168.2 |  |  | 548.1 |
Accrued expenses |  |  | 563.9 |  |  | (466.7) |  |  | 1.0 |  |  | 180.5 |  |  | 849.1 |
Current portion of long-term debt |  |  | 84.3 |  |  | — |  |  | — |  |  | 4.5 |  |  | 79.8 |
Liabilities held for sale |  |  | 0.7 |  |  | — |  |  | — |  |  | 0.7 |  |  | — |
Total current liabilities |  |  | 5,138.8 |  |  | (466.7) |  |  | 202.7 |  |  | 2,115.8 |  |  | 3,287.0 |
Long-term debt |  |  | 2,136.9 |  |  | (152.0) |  |  | 1,766.2 |  |  | 170.6 |  |  | 352.1 |
Deferred tax liabilities |  |  | 505.5 |  |  | — |  |  | — |  |  | 503.3 |  |  | 2.2 |
Other long-term liabilities |  |  | 567.4 |  |  | — |  |  | — |  |  | 64.0 |  |  | 503.4 |
Total liabilities |  |  | 8,348.6 |  |  | (618.7) |  |  | 1,968.9 |  |  | 2,853.7 |  |  | 4,144.7 |
Total equity |  |  | 2,494.4 |  |  | (2,623.6) |  |  | 2,494.4 |  |  | 1,816.9 |  |  | 806.7 |
Total liabilities and equity |  | $ | 10,843.0 |  | $ | (3,242.3) |  | $ | 4,463.3 |  | $ | 4,670.6 |  | $ | 4,951.4 |
CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2017
|  |  |  |  |  |  |  | Penske |  |  |  |  |  |  |
|  | Total |  |  |  |  | Automotive |  | Guarantor |  | Non-Guarantor |
|  | Company |  | Eliminations |  | Group |  | Subsidiaries |  | Subsidiaries |
Cash and cash equivalents |  | $ | 45.7 |  | $ | — |  | $ | — |  | $ | 14.8 |  | $ | 30.9 |
Accounts receivable, net |  |  | 954.9 |  |  | (463.6) |  |  | 463.6 |  |  | 523.8 |  |  | 431.1 |
Inventories |  |  | 3,944.1 |  |  | — |  |  | — |  |  | 1,935.0 |  |  | 2,009.1 |
Other current assets |  |  | 81.8 |  |  | — |  |  | 7.3 |  |  | 16.8 |  |  | 57.7 |
Total current assets |  |  | 5,026.5 |  |  | (463.6) |  |  | 470.9 |  |  | 2,490.4 |  |  | 2,528.8 |
Property and equipment, net |  |  | 2,108.6 |  |  | — |  |  | 3.3 |  |  | 1,032.9 |  |  | 1,072.4 |
Intangible assets |  |  | 2,134.5 |  |  | — |  |  | — |  |  | 1,334.6 |  |  | 799.9 |
Equity method investments |  |  | 1,256.6 |  |  | — |  |  | 1,186.9 |  |  | — |  |  | 69.7 |
Other long-term assets |  |  | 14.4 |  |  | (2,772.7) |  |  | 2,777.8 |  |  | 4.6 |  |  | 4.7 |
Total assets |  | $ | 10,540.6 |  | $ | (3,236.3) |  | $ | 4,438.9 |  | $ | 4,862.5 |  | $ | 4,475.5 |
Floor plan notes payable |  | $ | 2,343.2 |  | $ | — |  | $ | — |  | $ | 1,272.4 |  | $ | 1,070.8 |
Floor plan notes payable — non-trade |  |  | 1,418.6 |  |  | — |  |  | 196.6 |  |  | 601.9 |  |  | 620.1 |
Accounts payable |  |  | 641.6 |  |  | — |  |  | 3.9 |  |  | 194.4 |  |  | 443.3 |
Accrued expenses |  |  | 523.5 |  |  | (463.6) |  |  | 1.0 |  |  | 165.2 |  |  | 820.9 |
Current portion of long-term debt |  |  | 72.8 |  |  | — |  |  | — |  |  | 5.5 |  |  | 67.3 |
Liabilities held for sale |  |  | 0.7 |  |  | — |  |  | — |  |  | 0.7 |  |  | — |
Total current liabilities |  |  | 5,000.4 |  |  | (463.6) |  |  | 201.5 |  |  | 2,240.1 |  |  | 3,022.4 |
Long-term debt |  |  | 2,090.4 |  |  | (150.2) |  |  | 1,809.4 |  |  | 191.6 |  |  | 239.6 |
Deferred tax liabilities |  |  | 481.5 |  |  | — |  |  | — |  |  | 480.1 |  |  | 1.4 |
Other long-term liabilities |  |  | 540.3 |  |  | — |  |  | — |  |  | 64.7 |  |  | 475.6 |
Total liabilities |  |  | 8,112.6 |  |  | (613.8) |  |  | 2,010.9 |  |  | 2,976.5 |  |  | 3,739.0 |
Total equity |  |  | 2,428.0 |  |  | (2,622.5) |  |  | 2,428.0 |  |  | 1,886.0 |  |  | 736.5 |
Total liabilities and equity |  | $ | 10,540.6 |  | $ | (3,236.3) |  | $ | 4,438.9 |  | $ | 4,862.5 |  | $ | 4,475.5 |
CONDENSED CONSOLIDATING STATEMENT OF INCOME | CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended March 31, 2018
|  |  |  |  |  |  |  | Penske |  |  |  |  |  |  |
|  | Total |  |  |  |  | Automotive |  | Guarantor |  | Non-Guarantor |
|  | Company |  | Eliminations |  | Group |  | Subsidiaries |  | Subsidiaries |
Revenues |  | $ | 5,746.9 |  | $ | — |  | $ | — |  | $ | 2,856.5 |  | $ | 2,890.4 |
Cost of sales |  |  | 4,882.5 |  |  | — |  |  | — |  |  | 2,395.2 |  |  | 2,487.3 |
Gross profit |  |  | 864.4 |  |  | — |  |  | — |  |  | 461.3 |  |  | 403.1 |
Selling, general and administrative expenses |  |  | 663.1 |  |  | — |  |  | 6.5 |  |  | 343.0 |  |  | 313.6 |
Depreciation |  |  | 25.6 |  |  | — |  |  | 0.4 |  |  | 13.6 |  |  | 11.6 |
Operating income |  |  | 175.7 |  |  | — |  |  | (6.9) |  |  | 104.7 |  |  | 77.9 |
Floor plan interest expense |  |  | (18.9) |  |  | — |  |  | (1.6) |  |  | (11.3) |  |  | (6.0) |
Other interest expense |  |  | (29.8) |  |  | — |  |  | (20.8) |  |  | (1.9) |  |  | (7.1) |
Equity in earnings of affiliates |  |  | 17.3 |  |  | — |  |  | 16.0 |  |  | — |  |  | 1.3 |
Equity in earnings of subsidiaries |  |  | — |  |  | (157.9) |  |  | 157.9 |  |  | — |  |  | — |
Income from continuing operations before income taxes |  |  | 144.3 |  |  | (157.9) |  |  | 144.6 |  |  | 91.5 |  |  | 66.1 |
Income taxes |  |  | (36.6) |  |  | 40.0 |  |  | (36.6) |  |  | (25.2) |  |  | (14.8) |
Income from continuing operations |  |  | 107.7 |  |  | (117.9) |  |  | 108.0 |  |  | 66.3 |  |  | 51.3 |
Income from discontinued operations, net of tax |  |  | 0.1 |  |  | (0.1) |  |  | 0.1 |  |  | 0.1 |  |  | — |
Net income |  |  | 107.8 |  |  | (118.0) |  |  | 108.1 |  |  | 66.4 |  |  | 51.3 |
Other comprehensive income, net of tax |  |  | 31.8 |  |  | (31.5) |  |  | 31.8 |  |  | — |  |  | 31.5 |
Comprehensive income |  |  | 139.6 |  |  | (149.5) |  |  | 139.9 |  |  | 66.4 |  |  | 82.8 |
Less: Comprehensive loss attributable to non-controlling interests |  |  | (0.3) |  |  | — |  |  | — |  |  | — |  |  | (0.3) |
Comprehensive income attributable to Penske Automotive Group common stockholders |  | $ | 139.9 |  | $ | (149.5) |  | $ | 139.9 |  | $ | 66.4 |  | $ | 83.1 |
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, 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 CASH FLOWS | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Three Months Ended March 31, 2018
|  |  |  |  | Penske |  |  |  |  |  |  |
|  | Total |  | Automotive |  | Guarantor |  | Non-Guarantor |
|  | Company |  | Group |  | Subsidiaries |  | Subsidiaries |
Net cash provided by (used in) continuing operating activities |  | $ | 174.8 |  | $ | (23.0) |  | $ | 137.0 |  | $ | 60.8 |
Investing activities: |  |  |  |  |  |  |  |  |  |  |  |  |
Purchase of equipment and improvements |  |  | (64.7) |  |  | (1.1) |  |  | (38.6) |  |  | (25.0) |
Proceeds from sale of dealerships |  |  | 58.4 |  |  | — |  |  | 55.9 |  |  | 2.5 |
Acquisitions, net |  |  | (156.5) |  |  | — |  |  | — |  |  | (156.5) |
Other |  |  | (6.3) |  |  | (1.6) |  |  | — |  |  | (4.7) |
Net cash (used in) provided by continuing investing activities |  |  | (169.1) |  |  | (2.7) |  |  | 17.3 |  |  | (183.7) |
Financing activities: |  |  |  |  |  |  |  |  |  |  |  |  |
Net borrowings (repayments) of long-term debt |  |  | 84.6 |  |  | (44.0) |  |  | 9.3 |  |  | 119.3 |
Net (repayments) borrowings of floor plan notes payable — non-trade |  |  | (4.8) |  |  | 1.0 |  |  | (43.2) |  |  | 37.4 |
Repurchases of common stock |  |  | (50.0) |  |  | (50.0) |  |  | — |  |  | — |
Dividends |  |  | (29.2) |  |  | (29.2) |  |  | — |  |  | — |
Distributions from (to) parent |  |  | — |  |  | 147.9 |  |  | (135.3) |  |  | (12.6) |
Net cash provided by (used in) continuing financing activities |  |  | 0.6 |  |  | 25.7 |  |  | (169.2) |  |  | 144.1 |
Net cash provided by discontinued operations |  |  | 0.1 |  |  | — |  |  | 0.1 |  |  | — |
Effect of exchange rate changes on cash and cash equivalents |  |  | 0.7 |  |  | — |  |  | — |  |  | 0.7 |
Net change in cash and cash equivalents |  |  | 7.1 |  |  | — |  |  | (14.8) |  |  | 21.9 |
Cash and cash equivalents, beginning of period |  |  | 45.7 |  |  | — |  |  | 14.8 |  |  | 30.9 |
Cash and cash equivalents, end of period |  | $ | 52.8 |  | $ | — |  | $ | — |  | $ | 52.8 |
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) |
Proceeds from sale of dealerships |  |  | 9.0 |  |  | — |  |  | 9.0 |  |  | — |
Acquisitions, net |  |  | (314.2) |  |  | — |  |  | (199.2) |  |  | (115.0) |
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 |

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