19. Condensed Consolidating Financial Information

The following tables include condensed consolidating financial information as of December 31, 2014 and 2013 and for the years ended December 31, 2014, 2013, and 2012 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
December 31, 2014

	Total Company		Eliminations			Penske Automotive Group		Guarantor Subsidiaries		Non-Guarantor Subsidiaries
Cash and cash equivalents	$	36.3	$	—		$	—	$	—	$	36.3
Accounts receivable, net		701.4		(409.6	)		409.6		392.6		308.8
Inventories		2,819.2		—			—		1,481.5		1,337.7
Other current assets		124.7		—			4.5		58.3		61.9
Assets held for sale		186.1		—			—		150.4		35.7

Total current assets		3,867.7		(409.6	)		414.1		2,082.8		1,780.4
Property and equipment, net		1,328.8		—			4.3		754.6		569.9
Intangible assets		1,652.5		—			—		818.4		834.1
Equity method investments		352.8		—			285.5		—		67.3
Other long-term assets		26.4		(1,990.8	)		2,005.0		4.4		7.8

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		920.5		—			86.8		398.1		435.6
Accounts payable		417.6		—			2.9		208.3		206.4
Accrued expenses		310.3		(409.6	)		—		123.3		596.6
Current portion of long-term debt		36.6		—			—		4.6		32.0
Liabilities held for sale		132.7		—			—		105.9		26.8

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 BALANCE SHEET
December 31, 2013

	Total Company		Eliminations			Penske Automotive Group		Guarantor Subsidiaries		Non-Guarantor Subsidiaries
Cash and cash equivalents	$	50.3	$	—		$	—	$	13.1	$	37.2
Accounts receivable, net		594.9		(392.5	)		392.5		376.5		218.4
Inventories		2,501.4		—			—		1,402.3		1,099.1
Other current assets		87.7		—			2.9		42.9		41.9
Assets held for sale		253.8		—			—		202.1		51.7

Total current assets		3,488.1		(392.5	)		395.4		2,036.9		1,448.3
Property and equipment, net		1,119.5		—			4.0		688.0		427.5
Intangible assets		1,430.1		—			—		763.0		667.1
Equity method investments		346.9		—			295.0		—		51.9
Other long-term assets		30.9		(1,686.0	)		1,697.4		4.2		15.3

Total assets	$	6,415.5	$	(2,078.5	)	$	2,391.8	$	3,492.1	$	2,610.1


Floor plan notes payable	$	1,671.9	$	—		$	—	$	997.9	$	674.0
Floor plan notes payable—non-trade		900.9		—			128.2		445.0		327.7
Accounts payable		369.0		—			3.4		138.1		227.5
Accrued expenses		260.9		(392.5	)		0.1		120.9		532.4
Current portion of long-term debt		14.5		—			—		4.0		10.5
Liabilities held for sale		166.5		—			—		135.1		31.4

Total current liabilities		3,383.7		(392.5	)		131.7		1,841.0		1,803.5
Long-term debt		981.8		(123.5	)		738.0		106.9		260.4
Deferred tax liabilities		361.4		—			—		337.7		23.7
Other long-term liabilities		166.5		—			—		68.7		97.8

Total liabilities		4,893.4		(516.0	)		869.7		2,354.3		2,185.4
Total equity		1,522.1		(1,562.5	)		1,522.1		1,137.8		424.7

Total liabilities and equity	$	6,415.5	$	(2,078.5	)	$	2,391.8	$	3,492.1	$	2,610.1

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Year Ended December 31, 2014

	Total Company			Eliminations			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Revenues	$	17,177.2		$	—		$	—		$	9,589.0		$	7,588.2
Cost of sales		14,603.5			—			—			8,092.5			6,511.0

Gross profit		2,573.7			—			—			1,496.5			1,077.2
Selling, general and administrative expenses		1,999.6			—			28.7			1,133.9			837.0
Depreciation		70.0			—			1.3			37.8			30.9

Operating income		504.1			—			(30.0	)		324.8			209.3
Floor plan interest expense		(46.1	)		—			(10.4	)		(20.7	)		(15.0	)
Other interest expense		(52.8	)		—			(29.8	)		(5.0	)		(18.0	)
Equity in earnings of affiliates		40.8			—			36.5			—			4.3
Gain on investment		16.0			—			16.0			—			—
Equity in earnings of subsidiaries		—			(473.2	)		473.2			—			—

Income from continuing operations before income taxes		462.0			(473.2	)		455.5			299.1			180.6
Income taxes		(153.2	)		157.9			(152.0	)		(110.3	)		(48.8	)

Income from continuing operations		308.8			(315.3	)		303.5			188.8			131.8
Loss from discontinued operations, net of tax		(18.7	)		16.8			(16.8	)		(2.4	)		(16.3	)

Net income		290.1			(298.5	)		286.7			186.4			115.5
Other comprehensive income (loss), net of tax		(66.2	)		62.5			(66.2	)		4.7			(67.2	)

Comprehensive income		223.9			(236.0	)		220.5			191.1			48.3

Less: Comprehensive income attributable to non-controlling interests		2.1			1.4			(1.4	)		—			2.1

Comprehensive income attributable to Penske Automotive Group common stockholders	$	221.8		$	(237.4	)	$	221.9		$	191.1		$	46.2

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Year Ended December 31, 2013

	Total Company			Eliminations			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Revenues	$	14,443.9		$	—		$	—		$	8,534.2		$	5,909.7
Cost of sales		12,246.9			—			—			7,178.5			5,068.4

Gross profit		2,197.0			—			—			1,355.7			841.3
Selling, general and administrative expenses		1,705.6			—			21.4			1,025.9			658.3
Depreciation		59.6			—			1.8			33.8			24.0

Operating income		431.8			—			(23.2	)		296.0			159.0
Floor plan interest expense		(43.1	)		—			(9.6	)		(19.5	)		(14.0	)
Other interest expense		(45.2	)		—			(26.1	)		(1.9	)		(17.2	)
Equity in earnings of affiliates		30.7			—			25.5			—			5.2
Equity in earnings of subsidiaries		—			(406.1	)		406.1			—			—

Income from continuing operations before income taxes		374.2			(406.1	)		372.7			274.6			133.0
Income taxes		(123.9	)		135.0			(123.9	)		(100.4	)		(34.6	)

Income from continuing operations		250.3			(271.1	)		248.8			174.2			98.4
Loss from discontinued operations, net of tax		(4.6	)		4.6			(4.6	)		0.9			(5.5	)

Net income		245.7			(266.5	)		244.2			175.1			92.9
Other comprehensive income (loss), net of tax		18.9			(9.8	)		18.9			4.0			5.8

Comprehensive income		264.6			(276.3	)		263.1			179.1			98.7

Less: Comprehensive income attributable to non-controlling interests		2.0			(0.5	)		0.5			—			2.0

Comprehensive income attributable to Penske Automotive Group common stockholders	$	262.6		$	(275.8	)	$	262.6		$	179.1		$	96.7

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Year Ended December 31, 2012

	Total Company			Eliminations			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Revenues	$	12,902.6		$	—		$	—		$	7,630.7		$	5,271.9
Cost of sales		10,927.0			—			—			6,424.2			4,502.8

Gross profit		1,975.6			—			—			1,206.5			769.1
Selling, general and administrative expenses		1,558.3			—			19.4			930.8			608.1
Depreciation		52.2			—			1.3			28.0			22.9

Operating income		365.1			—			(20.7	)		247.7			138.1
Floor plan interest expense		(38.0	)		—			(8.6	)		(16.4	)		(13.0	)
Other interest expense		(46.1	)		—			(29.5	)		—			(16.6	)
Equity in earnings of affiliates		27.6			—			24.0			—			3.6
Debt redemption costs		(17.8	)		—			(17.8	)		—			—
Equity in earnings of subsidiaries		—			(341.8	)		341.8			—			—

Income from continuing operations before income taxes		290.8			(341.8	)		289.2			231.3			112.1
Income taxes		(94.6	)		111.9			(94.6	)		(87.7	)		(24.2	)

Income from continuing operations		196.2			(229.9	)		194.6			143.6			87.9
Loss from discontinued operations, net of tax		(9.0	)		9.0			(9.0	)		(0.5	)		(8.5	)

Net income		187.2			(220.9	)		185.6			143.1			79.4
Other comprehensive income (loss), net of tax		17.6			(16.6	)		17.6			1.0			15.6

Comprehensive income		204.8			(237.5	)		203.2			144.1			95.0

Less: Comprehensive income attributable to non-controlling interests		1.9			(0.3	)		0.3			—			1.9

Comprehensive income attributable to Penske Automotive Group common stockholders	$	202.9		$	(237.2	)	$	202.9		$	144.1		$	93.1

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Year Ended December 31, 2014

	Total Company			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net cash provided by continuing operating activities	$	366.3		$	(70.7	)	$	209.2		$	227.8

Investing activities:
Purchase of equipment and improvements		(174.8	)		(1.7	)		(101.2	)		(71.9	)
Acquisitions, net		(355.0	)		—			(175.3	)		(179.7	)
Other		(22.6	)		4.2			—			(26.8	)

Net cash used in continuing investing activities		(552.4	)		2.5			(276.5	)		(278.4	)

Financing activities:
Issuance of 5.375% senior subordinated notes		300.0			300.0			—			—
Net (repayments) borrowings of long-term debt		(71.3	)		(100.0	)		9.0			19.7
Net borrowings (repayments) of floor plan notes payable—non-trade		19.6			(41.4	)		35.9			25.1
Payment of deferred financing fees		(4.4	)		(4.4	)		—			—
Repurchases of common stock		(15.5	)		(15.5	)		—			—
Dividends		(70.5	)		(70.5	)		—			—
Other		0.3			—			—			0.3
Distributions from (to) parent		—			—			5.5			(5.5	)

Net cash provided by continuing financing activities		158.2			68.2			50.4			39.6
Net cash provided by discontinued operations		15.2			—			3.8			11.4
Effect of exchange rate changes on cash and cash equivalents		(1.3	)		—			—			(1.3	)

Net change in cash and cash equivalents		(14.0	)		—			(13.1	)		(0.9	)
Cash and cash equivalents, beginning of period		50.3			—			13.1			37.2

Cash and cash equivalents, end of period	$	36.3		$	—		$	—		$	36.3

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Year Ended December 31, 2013

	Total Company			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net cash provided by continuing operating activities	$	301.0		$	46.5		$	17.9		$	236.6

Investing activities:
Purchase of equipment and improvements		(174.7	)		(1.3	)		(116.7	)		(56.7	)
Acquisitions, net		(314.0	)		—			(103.4	)		(210.6	)
Other		(2.6	)		(17.5	)		10.7			4.2

Net cash used in continuing investing activities		(491.3	)		(18.8	)		(209.4	)		(263.1	)

Financing activities:
Net borrowings of long-term debt		81.1			28.0			2.7			50.4
Net borrowings (repayments) of floor plan notes payable—non-trade		191.2			16.1			181.1			(6.0	)
Repurchases of common stock		(15.8	)		(15.8	)		—			—
Dividends		(56.0	)		(56.0	)		—			—
Other		0.2			—			—			0.2
Distributions from (to) parent		—			—			0.9			(0.9	)

Net cash provided by (used in) continuing financing activities		200.7			(27.7	)		184.7			43.7
Net cash (used in) provided by discontinued operations		(4.0	)		—			(14.9	)		10.9

Net change in cash and cash equivalents		6.4			—			(21.7	)		28.1
Cash and cash equivalents, beginning of period		43.9			—			34.8			9.1

Cash and cash equivalents, end of period	$	50.3		$	—		$	13.1		$	37.2

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Year Ended December 31, 2012

	Total Company			Penske Automotive Group			Guarantor Subsidiaries			Non-Guarantor Subsidiaries
Net cash provided by continuing operating activities	$	325.7		$	45.5		$	125.8		$	154.4

Investing activities:
Purchase of equipment and improvements		(150.9	)		(1.1	)		(100.4	)		(49.4	)
Proceeds from sale-leaseback transactions		1.6			—			—			1.6
Acquisitions, net		(233.3	)		—			(98.9	)		(134.4	)
Other		8.8			(3.3	)		4.8			7.3

Net cash used in continuing investing activities		(373.8	)		(4.4	)		(194.5	)		(174.9	)

Financing activities:
Issuance of 5.75% senior subordinated notes		550.0			550.0			—			—
Repurchase of 7.75% senior subordinated notes		(390.8	)		(390.8	)		—			—
Repurchase of 3.5% senior subordinated convertible notes		(62.7	)		(62.7	)		—			—
Net (repayments) borrowings of long-term debt		(51.7	)		(98.9	)		27.7			19.5
Net borrowings of floor plan notes payable—non-trade		70.2			21.2			41.0			8.0
Repurchases of common stock		(9.8	)		(9.8	)		—			—
Dividends		(41.5	)		(41.5	)		—			—
Payment of deferred financing fees		(8.6	)		(8.6	)		—			—
Other		(1.1	)		—			—			(1.1	)
Distributions from (to) parent		—			—			5.2			(5.2	)

Net cash provided by (used in) continuing financing activities		54.0			(41.1	)		73.9			21.2
Net cash provided by discontinued operations		11.2			—			3.8			7.4

Net change in cash and cash equivalents		17.1			—			9.0			8.1
Cash and cash equivalents, beginning of period		26.8			—			25.8			1.0

Cash and cash equivalents, end of period	$	43.9		$	—		$	34.8		$	9.1