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Condensed Consolidating Financial Information (Tables)
 9 Months Ended
Sep. 30, 2014
Condensed Consolidating Financial Information  
CONDENSED CONSOLIDATING BALANCE SHEET

CONDENSED CONSOLIDATING BALANCE SHEET
September 30, 2014

 

 

 

Total
Company

 

Eliminations

 

Penske
Automotive
Group

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

 

 

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$
150.5

 

$

—

 

$

—

 

$

—

 

$
150.5

 

Accounts receivable, net

 
643.8

 
(405.2

)
405.2

 
311.9

 
331.9

 

Inventories

 
2,479.0

 

—

 

—

 
1,368.2

 
1,110.8

 

Other current assets

 
100.4

 

—

 
3.9

 
30.3

 
66.2

 

Assets held for sale

 
45.6

 

—

 

—

 
10.4

 
35.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current assets

 
3,419.3

 
(405.2

)
409.1

 
1,720.8

 
1,694.6

 

Property and equipment, net

 
1,375.1

 

—

 
3.7

 
885.7

 
485.7

 

Intangible assets

 
1,482.7

 

—

 

—

 
826.6

 
656.1

 

Equity method investments

 
386.5

 

—

 
316.8

 

—

 
69.7

 

Other long-term assets

 
18.7

 
(1,867.3

)
1,878.0

 
5.4

 
2.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$
6,682.3

 

$
(2,272.5

)

$
2,607.6

 

$
3,438.5

 

$
2,908.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Floor plan notes payable

 

$
1,606.1

 

$

—

 

$

—

 

$
893.9

 

$
712.2

 

Floor plan notes payable — non-trade

 
893.6

 

—

 
127.0

 
414.6

 
352.0

 

Accounts payable

 
382.7

 

—

 
3.0

 
139.3

 
240.4

 

Accrued expenses

 
317.3

 
(405.2

)
0.2

 
153.0

 
569.3

 

Current portion of long-term debt

 
71.8

 

—

 

—

 
57.7

 
14.1

 

Liabilities held for sale

 
33.7

 

—

 

—

 
4.6

 
29.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 
3,305.2

 
(405.2

)
130.2

 
1,663.1

 
1,917.1

 

Long-term debt

 
1,161.6

 
(255.0

)
822.0

 
174.3

 
420.3

 

Deferred tax liabilities

 
374.3

 

—

 

—

 
349.1

 
25.2

 

Other long-term liabilities

 
185.8

 

—

 

—

 
61.9

 
123.9

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 
5,026.9

 
(660.2

)
952.2

 
2,248.4

 
2,486.5

 

Total equity

 
1,655.4

 
(1,612.3

)
1,655.4

 
1,190.1

 
422.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

 

$
6,682.3

 

$
(2,272.5

)

$
2,607.6

 

$
3,438.5

 

$
2,908.7

 

 

CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2013

 

 

Total
Company

 

Eliminations

 

Penske
Automotive
Group

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

 

 

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$
49.8

 

$

—

 

$

—

 

$
12.6

 

$
37.2

 

Accounts receivable, net

 
600.8

 
(392.5

)
392.5

 
382.1

 
218.7

 

Inventories

 
2,518.3

 

—

 

—

 
1,416.2

 
1,102.1

 

Other current assets

 
88.4

 

—

 
2.9

 
43.4

 
42.1

 

Assets held for sale

 
107.3

 

—

 

—

 
61.0

 
46.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current assets

 
3,364.6

 
(392.5

)
395.4

 
1,915.3

 
1,446.4

 

Property and equipment, net

 
1,232.2

 

—

 
4.0

 
800.0

 
428.2

 

Intangible assets

 
1,439.9

 

—

 

—

 
771.6

 
668.3

 

Equity method investments

 
346.9

 

—

 
294.9

 

—

 
52.0

 

Other long-term assets

 
31.9

 
(1,686.0

)
1,697.5

 
5.2

 
15.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$
6,415.5

 

$
(2,078.5

)

$
2,391.8

 

$
3,492.1

 

$
2,610.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Floor plan notes payable

 

$
1,685.1

 

$

—

 

$

—

 

$
1,009.5

 

$
675.6

 

Floor plan notes payable — non-trade

 
901.6

 

—

 
128.1

 
445.7

 
327.8

 

Accounts payable

 
373.3

 

—

 
3.5

 
141.7

 
228.1

 

Accrued expenses

 
262.6

 
(392.5

)
0.1

 
122.2

 
532.8

 

Current portion of long-term debt

 
50.0

 

—

 

—

 
39.5

 
10.5

 

Liabilities held for sale

 
59.7

 

—

 

—

 
31.0

 
28.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 
3,332.3

 
(392.5

)
131.7

 
1,789.6

 
1,803.5

 

Long-term debt

 
1,033.2

 
(123.6

)
738.0

 
158.4

 
260.4

 

Deferred tax liabilities

 
361.4

 

—

 

—

 
337.6

 
23.8

 

Other long-term liabilities

 
166.5

 

—

 

—

 
68.8

 
97.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 
4,893.4

 
(516.1

)
869.7

 
2,354.4

 
2,185.4

 

Total equity

 
1,522.1

 
(1,562.4

)
1,522.1

 
1,137.7

 
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

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Three Months Ended September 30, 2014

 

 

 

Total
Company

 

Eliminations

 

Penske
Automotive
Group

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

 

 

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$
4,417.9

 

$

—

 

$

—

 

$
2,516.9

 

$
1,901.0

 

Cost of sales

 
3,759.2

 

—

 

—

 
2,128.5

 
1,630.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 
658.7

 

—

 

—

 
388.4

 
270.3

 

Selling, general and administrative expenses

 
512.9

 

—

 
11.5

 
293.8

 
207.6

 

Depreciation

 
17.8

 

—

 
0.4

 
10.1

 
7.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 
128.0

 

—

 
(11.9

)
84.5

 
55.4

 

Floor plan interest expense

 
(11.2

)

—

 
(2.4

)
(5.2

)
(3.6

)

Other interest expense

 
(13.3

)

—

 
(7.5

)
(1.3

)
(4.5

)

Equity in earnings of affiliates

 
12.7

 

—

 
11.7

 

—

 
1.0

 

Equity in earnings of subsidiaries

 

—

 
(125.7

)
125.7

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 
116.2

 
(125.7

)
115.6

 
78.0

 
48.3

 

Income taxes

 
(39.2

)
42.6

 
(39.2

)
(30.9

)
(11.7

)

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 
77.0

 
(83.1

)
76.4

 
47.1

 
36.6

 

(Loss) income from discontinued operations, net of tax

 
(1.9

)
1.9

 
(1.9

)
(0.9

)
(1.0

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 
75.1

 
(81.2

)
74.5

 
46.2

 
35.6

 

Other comprehensive income (loss), net of tax

 
(51.0

)
50.1

 
(51.0

)
1.1

 
(51.2

)

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 
24.1

 
(31.1

)
23.5

 
47.3

 
(15.6

)

Less: Comprehensive income attributable to the non-controlling interests

 
(0.1

)
0.7

 
(0.7

)

—

 
(0.1

)

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to Penske Automotive Group common stockholders

 

$
24.2

 

$
(31.8

)

$
24.2

 

$
47.3

 

$
(15.5

)

 

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Three Months Ended September 30, 2013

 

 

 

Total
Company

 

Eliminations

 

Penske
Automotive
Group

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

 

 

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$
3,759.1

 

$

—

 

$

—

 

$
2,207.9

 

$
1,551.2

 

Cost of sales

 
3,188.0

 

—

 

—

 
1,857.3

 
1,330.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 
571.1

 

—

 

—

 
350.6

 
220.5

 

Selling, general and administrative expenses

 
446.4

 

—

 
5.5

 
270.6

 
170.3

 

Depreciation

 
15.4

 

—

 
0.4

 
9.1

 
5.9

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 
109.3

 

—

 
(5.9

)
70.9

 
44.3

 

Floor plan interest expense

 
(10.6

)

—

 
(2.4

)
(4.8

)
(3.4

)

Other interest expense

 
(12.3

)

—

 
(6.4

)
(1.9

)
(4.0

)

Equity in earnings of affiliates

 
11.2

 

—

 
10.0

 

—

 
1.2

 

Equity in earnings of subsidiaries

 

—

 
(102.0

)
102.0

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 
97.6

 
(102.0

)
97.3

 
64.2

 
38.1

 

Income taxes

 
(31.3

)
32.3

 
(31.3

)
(22.8

)
(9.5

)

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 
66.3

 
(69.7

)
66.0

 
41.4

 
28.6

 

(Loss) income from discontinued operations, net of tax

 
(0.8

)
0.8

 
(0.8

)
0.4

 
(1.2

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 
65.5

 
(68.9

)
65.2

 
41.8

 
27.4

 

Other comprehensive income (loss), net of tax

 
38.4

 
(38.6

)
38.4

 
0.8

 
37.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 
103.9

 
(107.5

)
103.6

 
42.6

 
65.2

 

Less: Comprehensive income attributable to the non-controlling interests

 
0.2

 

—

 

—

 

—

 
0.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to Penske Automotive Group common stockholders

 

$
103.7

 

$
(107.5

)

$
103.6

 

$
42.6

 

$
65.0

 

 

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Nine Months Ended September 30, 2014

 

 

 

Total
Company

 

Eliminations

 

Penske
Automotive
Group

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

 

 

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$
12,872.6

 

$

—

 

$

—

 

$
7,178.0

 

$
5,694.6

 

Cost of sales

 
10,923.0

 

—

 

—

 
6,034.2

 
4,888.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 
1,949.6

 

—

 

—

 
1,143.8

 
805.8

 

Selling, general and administrative expenses

 
1,513.9

 

—

 
23.2

 
882.9

 
607.8

 

Depreciation

 
51.8

 

—

 
1.0

 
29.2

 
21.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 
383.9

 

—

 
(24.2

)
231.7

 
176.4

 

Floor plan interest expense

 
(33.9

)

—

 
(7.2

)
(15.6

)
(11.1

)

Other interest expense

 
(39.5

)

—

 
(22.0

)
(3.6

)
(13.9

)

Equity in earnings of affiliates

 
28.7

 

—

 
25.3

 

—

 
3.4

 

Equity in earnings of subsidiaries

 

—

 
(365.3

)
365.3

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 
339.2

 
(365.3

)
337.2

 
212.5

 
154.8

 

Income taxes

 
(114.4

)
123.8

 
(114.4

)
(82.7

)
(41.1

)

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 
224.8

 
(241.5

)
222.8

 
129.8

 
113.7

 

(Loss) income from discontinued operations, net of tax

 
(7.9

)
7.9

 
(7.9

)
6.3

 
(14.2

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 
216.9

 
(233.6

)
214.9

 
136.1

 
99.5

 

Other comprehensive income (loss), net of tax

 
(26.0

)
24.9

 
(26.0

)
3.2

 
(28.1

)

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 
190.9

 
(208.7

)
188.9

 
139.3

 
71.4

 

Less: Comprehensive income attributable to the non-controlling interests

 
1.0

 
0.9

 
(0.9

)

—

 
1.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to Penske Automotive Group common stockholders

 

$
189.9

 

$
(209.6

)

$
189.8

 

$
139.3

 

$
70.4

 

 

CONDENSED CONSOLIDATING STATEMENT OF INCOME
Nine Months Ended September 30, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total
Company

 

Eliminations

 

Penske
Automotive
Group

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

 

 

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$
10,739.0

 

$

—

 

$

—

 

$
6,364.8

 

$
4,374.2

 

Cost of sales

 
9,081.8

 

—

 

—

 
5,330.3

 
3,751.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 
1,657.2

 

—

 

—

 
1,034.5

 
622.7

 

Selling, general and administrative expenses

 
1,286.2

 

—

 
15.3

 
792.6

 
478.3

 

Depreciation

 
44.4

 

—

 
1.2

 
25.6

 
17.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 
326.6

 

—

 
(16.5

)
216.3

 
126.8

 

Floor plan interest expense

 
(31.4

)

—

 
(7.2

)
(14.5

)
(9.7

)

Other interest expense

 
(35.7

)

—

 
(18.1

)
(4.1

)
(13.5

)

Equity in earnings of affiliates

 
22.4

 

—

 
18.8

 

—

 
3.6

 

Equity in earnings of subsidiaries

 

—

 
(303.8

)
303.8

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 
281.9

 
(303.8

)
280.8

 
197.7

 
107.2

 

Income taxes

 
(94.5

)
100.7

 
(94.4

)
(74.0

)
(26.8

)

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 
187.4

 
(203.1

)
186.4

 
123.7

 
80.4

 

(Loss) income from discontinued operations, net of tax

 
(1.4

)
1.4

 
(1.4

)
1.2

 
(2.6

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 
186.0

 
(201.7

)
185.0

 
124.9

 
77.8

 

Other comprehensive income (loss), net of tax

 
4.3

 
(4.4

)
4.3

 
2.9

 
1.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 
190.3

 
(206.1

)
189.3

 
127.8

 
79.3

 

Less: Comprehensive income attributable to the non-controlling interests

 
1.5

 
(0.5

)
0.5

 

—

 
1.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to Penske Automotive Group common stockholders

 

$
188.8

 

$
(205.6

)

$
188.8

 

$
127.8

 

$
77.8

 

 

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

 

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Nine Months Ended September 30, 2014

 

 

 

Total
Company

 

Penske
Automotive
Group

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

 

 

(In millions)

 

 

 

 

 

 

 

 

 

 

 

Net cash from continuing operating activities

 

$
277.3

 

$
(19.3

)

$
168.9

 

$
127.7

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

Purchase of equipment and improvements

 
(119.6

)
(0.6

)
(65.5

)
(53.5

)

Purchase of car rental vehicles

 
(93.5

)

—

 
(93.5

)

—

 

Disposal of car rental vehicles

 
45.1

 

—

 
45.1

 

—

 

Acquisitions, net

 
(86.2

)

—

 
(80.5

)
(5.7

)

Other

 
(25.3

)
4.1

 
(10.6

)
(18.8

)

 

 

 

 

 

 

 

 

 

 

Net cash from continuing investing activities

 
(279.5

)
3.5

 
(205.0

)
(78.0

)

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

Net borrowings (repayments) of long-term debt

 
149.9

 
84.0

 
33.2

 
32.7

 

Net borrowings (repayments) of floor plan notes payable — non-trade

 
(8.0

)
(1.2

)
(28.8

)
22.0

 

Repurchases of common stock

 
(15.5

)
(15.5

)

—

 

—

 

Dividends

 
(51.5

)
(51.5

)

—

 

—

 

Distributions from (to) parent

 

—

 

—

 
4.8

 
(4.8

)

Other

 
0.3

 

—

 

—

 
0.3

 

 

 

 

 

 

 

 

 

 

 

Net cash from continuing financing activities

 
75.2

 
15.8

 
9.2

 
50.2

 

 

 

 

 

 

 

 

 

 

 

Net cash from discontinued operations

 
27.7

 

—

 
14.3

 
13.4

 

 

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 
100.7

 

—

 
(12.6

)
113.3

 

Cash and cash equivalents, beginning of period

 
49.8

 

—

 
12.6

 
37.2

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

$
150.5

 

$

—

 

$

—

 

$
150.5

 

 

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Nine Months Ended September 30, 2013

 

 

 

Total
Company

 

Penske
Automotive
Group

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

 

 

(In millions)

 

 

 

 

 

 

 

 

 

 

 

Net cash from continuing operating activities

 

$
296.6

 

$
59.4

 

$
55.0

 

$
182.2

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

Purchase of equipment and improvements

 
(122.2

)
(0.9

)
(83.0

)
(38.3

)

Purchase of car rental vehicles

 
(82.3

)

—

 
(82.3

)

—

 

Disposal of car rental vehicles

 
8.0

 

—

 
8.0

 

—

 

Acquisitions, net

 
(221.2

)

—

 
(22.0

)
(199.2

)

Other

 
(15.5

)

—

 
(15.5

)

—

 

 

 

 

 

 

 

 

 

 

 

Net cash from continuing investing activities

 
(433.2

)
(0.9

)
(194.8

)
(237.5

)

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

Net borrowings (repayments) of long-term debt

 
123.9

 
(18.0

)
71.2

 
70.7

 

Net borrowings (repayments) of floor plan notes payable — non-trade

 
78.0

 
16.0

 
28.8

 
33.2

 

Repurchases of common stock

 
(15.8

)
(15.8

)

—

 

—

 

Dividends

 
(40.7

)
(40.7

)

—

 

—

 

Distributions from (to) parent

 

—

 

—

 
1.1

 
(1.1

)

Other

 
0.2

 

—

 

—

 
0.2

 

 

 

 

 

 

 

 

 

 

 

Net cash from continuing financing activities

 
145.6

 
(58.5

)
101.1

 
103.0

 

 

 

 

 

 

 

 

 

 

 

Net cash from discontinued operations

 
18.5

 

—

 
8.7

 
9.8

 

 

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 
27.5

 

—

 
(30.0

)
57.5

 

Cash and cash equivalents, beginning of period

 
43.8

 

—

 
34.7

 
9.1

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

$
71.3

 

$

—

 

$
4.7

 

$
66.6