Segment Information

9 Months Ended

Sep. 30, 2013

Segment Information

Segment Information

12. Segment Information

Our operations are organized by management into operating segments by line of business and geography. We have determined that we have two reportable segments as defined in generally accepted accounting principles for segment reporting: (i) Retail, consisting of our automotive retail operations, and (ii) Other, consisting of our Hertz rental car business operating segment, our investments in non-automotive retail operations operating segment and our Penske Commercial Vehicles operating segment. The Retail reportable segment includes all automotive dealerships and all departments relevant to the operation of the dealerships and the retail automotive joint ventures. The individual dealership operations included in the Retail reportable segment have been grouped into four geographic operating segments: Eastern, Central, and Western United States and International. The geographic operating segments have been aggregated into one reportable segment as their operations (A) have similar economic characteristics (all are automotive dealerships having similar margins), (B) offer similar products and services (all sell new and used vehicles, service, parts and third-party finance and insurance products), (C) have similar target markets and customers (generally individuals) and (D) have similar distribution and marketing practices (all distribute products and services through dealership facilities that market to customers in similar fashions).

Three Months Ended September 30

	Retail		Other		Intersegment Elimination			Total
Revenues
2013	$	3,763,840	$	66,050	$	(5,747	)	$	3,824,143
2012	3,336,020		—		—			3,336,020
Segment income
2013	51,732		13,485		58			65,275
2012	33,119		7,912		—			41,031

Nine Months Ended September 30

	Retail		Other		Intersegment Elimination			Total
Revenues
2013	$	10,867,035	$	88,026	$	(27,144	)	$	10,927,917
2012	9,814,784		—		—			9,814,784
Segment income
2013	162,074		23,178		(271		)	184,981
2012	117,994		18,947		—			136,941