Significant Equity Method Investees

9 Months Ended

Sep. 30, 2019

Significant Equity Method Investees

Significant Equity Method Investees

4. Significant Equity Method Investees

We hold a 28.9% ownership interest in Penske Truck Leasing Co., L.P. (“PTL”), a leading provider of transportation and supply chain services. Our investment in PTL is accounted for using the equity method of accounting. For the nine months ended September 30, 2019, PTL equity earnings represented a significant portion of our consolidated pre-tax income. We recorded $106.0 million and $91.7 million during the nine months ended September 30, 2019 and 2018, respectively, on our statements of income under the caption “Equity in earnings of affiliates” related to earnings from PTL investment.

Rule 10-01(b)(1) of Regulation S-X requires separate interim period summarized income statement information for each 50-percent-or-less-owned subsidiary not consolidated that would have been a significant subsidiary for annual periods in accordance with Rule 3-09 of Regulation S-X.

Pursuant to this requirement, unaudited summarized income statement information for PTL for the nine months ended September 30, 2019 and 2018 is as follows:

	Nine Months Ended September 30,
	2019		2018
Revenues	$	6,701	$	6,158
Gross profit		1,397		1,272
Income from continuing operations		367		317
Net income		367		317