Business Combinations

12 Months Ended

Dec. 31, 2014

Business Combinations

Business Combinations

3. Business Combinations

        During 2014, in addition to acquiring two automotive retail franchises, we acquired a distributor of diesel and gas engines and power systems to complement our commercial vehicle distribution business, acquired a controlling interest in a commercial vehicle dealership group in the U.S., as well as made an additional investment in an entity previously accounted under the equity method. The companies acquired in 2014 generated $351.5 million of revenue and $5.7 million of pre-tax income from our date of acquisition through December 31, 2014. As previously discussed in Note 1, in 2014, we recognized a gain of $16.0 million for the difference between the carrying value and the fair value of the previously held equity interest in PCV US, which is included in "Gain on investment" on our statement of income. During 2013, we acquired our commercial vehicle distribution business and nine automotive retail franchises. Our financial statements include the results of operations of the acquired entities from the date of acquisition. The fair value of the assets acquired and liabilities assumed have been recorded in our consolidated financial statements, and may be subject to adjustment pending completion of final valuation. A summary of the aggregate consideration paid and the aggregate amounts of the assets acquired and liabilities assumed for the years ended December 31, 2014 and 2013 follows:

	December 31,
	2014			2013
Accounts receivable	$	66.2		$	20.1
Inventory		197.9			161.5
Other current assets		5.9			2.6
Property and equipment		95.2			14.0
Indefinite-lived intangibles		266.4			187.6
Other non-current assets		10.7			9.0
Current liabilities		(83.4	)		(79.5	)
Non-current liabilities		(12.1	)		(1.3	)
Total		546.8			314.0
Seller financed/assumed debt		(134.4	)		—
Fair value of previously held interest in PCV US		(47.4	)		—
Fair value of PCV US noncontrolling interest		(10.0	)		—
Total cash used in acquisitions		355.0			314.0

        The following unaudited consolidated pro forma results of operations of PAG for the years ended December 31, 2014 and 2013 give effect to acquisitions consummated during 2014 and 2013 as if they had occurred on January 1, 2013:

	Year Ended December 31,
	2014		2013
Revenues	$	17,964.5	$	16,687.5
Income from continuing operations		311.1		286.2
Net income		292.4		281.6
Income from continuing operations per diluted common share	$	3.44	$	3.17
Net income per diluted common share	$	3.23	$	3.12