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Condensed Consolidating Financial Information (Tables)
9 Months Ended
Sep. 30, 2019
Condensed Consolidating Financial Information  
CONDENSED CONSOLIDATING BALANCE SHEET

CONDENSED CONSOLIDATING BALANCE SHEET

September 30, 2019

    

    

    

Penske

    

    

 

Total

Automotive

Guarantor

Non-Guarantor

 

Company

Eliminations

Group

Subsidiaries

Subsidiaries

 

Cash and cash equivalents

$

77.5

$

$

$

$

77.5

Accounts receivable, net

 

967.3

 

(493.6)

 

493.6

 

467.9

 

499.4

Inventories

 

4,043.9

 

 

 

2,156.7

 

1,887.2

Other current assets

 

98.8

 

 

7.7

 

21.6

 

69.5

Total current assets

 

5,187.5

 

(493.6)

 

501.3

 

2,646.2

 

2,533.6

Property and equipment, net

 

2,309.3

 

 

3.6

 

1,110.9

 

1,194.8

Operating lease right-of-use assets

 

2,384.4

 

 

9.3

 

1,632.9

 

742.2

Intangible assets

 

2,423.9

 

 

 

1,635.8

 

788.1

Equity method investments

 

1,362.8

 

 

1,298.2

 

 

64.6

Other long-term assets

 

21.6

 

(2,911.0)

 

2,920.2

 

3.1

 

9.3

Total assets

$

13,689.5

$

(3,404.6)

$

4,732.6

$

7,028.9

$

5,332.6

Floor plan notes payable

$

2,444.1

$

$

$

1,447.0

$

997.1

Floor plan notes payable — non-trade

 

1,410.6

 

 

227.2

 

515.4

 

668.0

Accounts payable

 

672.3

 

 

5.1

 

213.1

 

454.1

Accrued expenses and other current liabilities

 

722.2

 

(493.6)

 

1.6

 

296.0

 

918.2

Current portion of long-term debt

 

96.8

 

 

13.0

 

10.6

 

73.2

Liabilities held for sale

 

0.5

 

 

 

0.5

 

Total current liabilities

 

5,346.5

 

(493.6)

 

246.9

 

2,482.6

 

3,110.6

Long-term debt

 

2,282.5

 

(82.5)

 

1,817.6

 

256.4

 

291.0

Long-term operating lease liabilities

 

2,334.7

 

 

9.0

 

1,603.7

 

722.0

Deferred tax liabilities

 

620.7

 

 

 

615.8

 

4.9

Other long-term liabilities

 

446.0

 

 

 

36.6

 

409.4

Total liabilities

 

11,030.4

 

(576.1)

 

2,073.5

 

4,995.1

 

4,537.9

Total equity

 

2,659.1

 

(2,828.5)

 

2,659.1

 

2,033.8

 

794.7

Total liabilities and equity

$

13,689.5

$

(3,404.6)

$

4,732.6

$

7,028.9

$

5,332.6

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2018

    

    

    

Penske

    

    

 

Total

Automotive

Guarantor

Non-Guarantor

 

Company

Eliminations

Group

Subsidiaries

Subsidiaries

 

Cash and cash equivalents

$

39.4

$

$

$

12.9

$

26.5

Accounts receivable, net

 

929.1

 

(481.7)

 

481.7

 

507.1

 

422.0

Inventories

 

4,040.1

 

 

 

1,961.6

 

2,078.5

Other current assets

 

86.6

 

 

10.6

 

17.8

 

58.2

Total current assets

 

5,095.2

 

(481.7)

 

492.3

 

2,499.4

 

2,585.2

Property and equipment, net

 

2,250.0

 

 

3.9

 

1,077.7

 

1,168.4

Intangible assets

 

2,238.2

 

 

 

1,422.6

 

815.6

Equity method investments

 

1,305.2

 

 

1,239.9

 

 

65.3

Other long-term assets

15.9

 

(2,814.3)

 

2,821.0

 

2.9

 

6.3

Total assets

$

10,904.5

$

(3,296.0)

$

4,557.1

$

5,002.6

$

4,640.8

Floor plan notes payable

$

2,362.2

$

$

$

1,348.3

$

1,013.9

Floor plan notes payable — non-trade

 

1,428.6

 

 

232.3

 

505.9

 

690.4

Accounts payable

 

598.2

 

 

4.9

 

196.6

 

396.7

Accrued expenses

 

566.6

 

(481.7)

 

1.4

 

160.2

 

886.7

Current portion of long-term debt

 

92.0

 

 

 

6.3

 

85.7

Liabilities held for sale

 

0.7

 

 

 

0.7

 

Total current liabilities

 

5,048.3

 

(481.7)

 

238.6

 

2,218.0

 

3,073.4

Long-term debt

 

2,124.7

 

(88.6)

 

1,683.8

 

225.7

 

303.8

Deferred tax liabilities

 

577.8

 

 

 

570.5

 

7.3

Other long-term liabilities

 

519.0

 

 

 

57.6

 

461.4

Total liabilities

 

8,269.8

 

(570.3)

 

1,922.4

 

3,071.8

 

3,845.9

Total equity

 

2,634.7

 

(2,725.7)

 

2,634.7

 

1,930.8

 

794.9

Total liabilities and equity

$

10,904.5

$

(3,296.0)

$

4,557.1

$

5,002.6

$

4,640.8

CONDENSED CONSOLIDATING STATEMENT OF INCOME

CONDENSED CONSOLIDATING STATEMENT OF INCOME

Three Months Ended September 30, 2019

    

    

    

Penske

    

    

 

Total

Automotive

Guarantor

Non-Guarantor

 

Company

Eliminations

Group

Subsidiaries

Subsidiaries

 

Revenues

$

5,967.6

$

$

$

3,478.6

$

2,489.0

Cost of sales

 

5,097.9

 

 

 

2,951.1

 

2,146.8

Gross profit

 

869.7

 

 

 

527.5

 

342.2

Selling, general and administrative expenses

 

672.8

 

 

6.6

 

375.1

 

291.1

Depreciation

 

27.5

 

 

0.3

 

15.2

 

12.0

Operating income

 

169.4

 

 

(6.9)

 

137.2

 

39.1

Floor plan interest expense

 

(21.4)

 

 

(1.9)

 

(14.7)

 

(4.8)

Other interest expense

 

(32.9)

 

 

(24.0)

 

(3.3)

 

(5.6)

Equity in earnings of affiliates

 

43.3

 

 

42.2

 

 

1.1

Equity in earnings of subsidiaries

 

 

(149.2)

 

149.2

 

 

Income from continuing operations before income taxes

 

158.4

 

(149.2)

 

158.6

 

119.2

 

29.8

Income taxes

 

(42.4)

 

40.0

 

(42.5)

 

(33.0)

 

(6.9)

Income from continuing operations

 

116.0

 

(109.2)

 

116.1

 

86.2

 

22.9

Income from discontinued operations, net of tax

 

0.1

 

(0.1)

 

0.1

0.1

 

Net income

 

116.1

 

(109.3)

 

116.2

 

86.3

 

22.9

Other comprehensive (loss) income, net of tax

 

(46.2)

 

44.7

 

(46.2)

 

 

(44.7)

Comprehensive income

 

69.9

 

(64.6)

 

70.0

 

86.3

 

(21.8)

Less: Comprehensive (loss) income attributable to non-controlling interests

 

(0.6)

 

0.5

 

(0.5)

 

 

(0.6)

Comprehensive income attributable to Penske Automotive Group common stockholders

$

70.5

$

(65.1)

$

70.5

$

86.3

$

(21.2)

CONDENSED CONSOLIDATING STATEMENT OF INCOME

Three Months Ended September 30, 2018

    

    

    

Penske

    

    

 

Total

Automotive

Guarantor

Non-Guarantor

 

Company

Eliminations

Group

Subsidiaries

Subsidiaries

 

Revenues

$

5,658.6

$

$

$

3,061.9

$

2,596.7

Cost of sales

 

4,806.0

 

 

 

2,584.1

 

2,221.9

Gross profit

 

852.6

 

 

 

477.8

 

374.8

Selling, general and administrative expenses

 

662.8

 

 

6.3

 

356.6

 

299.9

Depreciation

 

25.9

 

 

0.4

 

14.0

 

11.5

Operating income

 

163.9

 

 

(6.7)

 

107.2

 

63.4

Floor plan interest expense

 

(20.2)

 

 

(1.9)

 

(12.7)

 

(5.6)

Other interest expense

 

(28.3)

 

 

(19.1)

 

(2.3)

 

(6.9)

Equity in earnings of affiliates

 

41.7

 

 

40.7

 

 

1.0

Equity in earnings of subsidiaries

 

 

(144.2)

 

144.2

 

 

Income from continuing operations before income taxes

 

157.1

 

(144.2)

 

157.2

 

92.2

 

51.9

Income taxes

 

(27.1)

 

24.8

 

(27.1)

 

(14.6)

 

(10.2)

Income from continuing operations

 

130.0

 

(119.4)

 

130.1

 

77.6

 

41.7

Income from discontinued operations, net of tax

 

0.1

 

(0.1)

 

0.1

0.1

 

Net income

 

130.1

 

(119.5)

 

130.2

 

77.7

 

41.7

Other comprehensive (loss) income, net of tax

 

(17.5)

 

19.8

 

(17.5)

 

 

(19.8)

Comprehensive income

 

112.6

 

(99.7)

 

112.7

 

77.7

 

21.9

Less: Comprehensive (loss) income attributable to non-controlling interests

 

(0.2)

 

0.1

 

(0.1)

 

 

(0.2)

Comprehensive income attributable to Penske Automotive Group common stockholders

$

112.8

$

(99.8)

$

112.8

$

77.7

$

22.1

CONDENSED CONSOLIDATING STATEMENT OF INCOME

Nine Months Ended September 30, 2019

    

    

    

    

    

Penske

    

    

    

    

 

Total

Automotive

Guarantor

Non-Guarantor

 

Company

Eliminations

Group

Subsidiaries

Subsidiaries

 

Revenues

$

17,287.8

$

$

$

9,457.6

$

7,830.2

Cost of sales

 

14,698.8

 

 

 

7,962.9

 

6,735.9

Gross profit

 

2,589.0

 

 

 

1,494.7

 

1,094.3

Selling, general and administrative expenses

 

2,008.1

 

 

20.0

 

1,098.0

 

890.1

Depreciation

 

81.0

 

 

1.0

 

44.3

 

35.7

Operating income

 

499.9

 

 

(21.0)

 

352.4

 

168.5

Floor plan interest expense

 

(64.2)

 

 

(6.1)

 

(44.0)

 

(14.1)

Other interest expense

 

(93.2)

 

 

(62.5)

 

(9.3)

 

(21.4)

Equity in earnings of affiliates

 

109.6

 

 

106.0

 

 

3.6

Equity in earnings of subsidiaries

 

 

(436.3)

 

436.3

 

 

Income from continuing operations before income taxes

 

452.1

 

(436.3)

 

452.7

 

299.1

 

136.6

Income taxes

 

(118.6)

 

114.4

 

(118.8)

 

(85.5)

 

(28.7)

Income from continuing operations

 

333.5

 

(321.9)

 

333.9

 

213.6

 

107.9

Income from discontinued operations, net of tax

 

0.3

 

(0.3)

 

0.3

 

0.3

 

Net income

 

333.8

 

(322.2)

 

334.2

 

213.9

 

107.9

Other comprehensive (loss) income, net of tax

 

(52.2)

 

55.0

 

(52.2)

 

 

(55.0)

Comprehensive income

 

281.6

 

(267.2)

 

282.0

 

213.9

 

52.9

Less: Comprehensive (loss) income attributable to non-controlling interests

 

(1.1)

 

0.6

 

(0.6)

 

 

(1.1)

Comprehensive income attributable to Penske Automotive Group common stockholders

$

282.7

$

(267.8)

$

282.6

$

213.9

$

54.0

CONDENSED CONSOLIDATING STATEMENT OF INCOME

Nine Months Ended September 30, 2018

Penske

 

Total

Automotive

Guarantor

Non-Guarantor

 

    

Company

    

Eliminations

    

Group

    

Subsidiaries

    

Subsidiaries

 

Revenues

$

17,345.8

$

$

$

8,990.2

$

8,355.6

Cost of sales

 

14,739.0

 

 

 

7,561.6

 

7,177.4

Gross profit

 

2,606.8

 

 

 

1,428.6

 

1,178.2

Selling, general and administrative expenses

 

2,001.3

 

 

19.1

 

1,059.6

 

922.6

Depreciation

 

77.2

 

 

1.2

 

41.3

 

34.7

Operating income

 

528.3

 

 

(20.3)

 

327.7

 

220.9

Floor plan interest expense

 

(59.0)

 

 

(5.3)

 

(36.3)

 

(17.4)

Other interest expense

 

(86.7)

 

 

(58.8)

 

(6.2)

 

(21.7)

Equity in earnings of affiliates

 

95.0

 

 

91.7

 

 

3.3

Equity in earnings of subsidiaries

 

 

(470.1)

 

470.1

 

 

Income from continuing operations before income taxes

 

477.6

 

(470.1)

 

477.4

 

285.2

 

185.1

Income taxes

 

(104.7)

 

104.0

 

(104.7)

 

(67.0)

 

(37.0)

Income from continuing operations

 

372.9

 

(366.1)

 

372.7

 

218.2

 

148.1

Loss from discontinued operations, net of tax

 

0.2

 

(0.2)

 

0.2

 

0.2

 

Net income

 

373.1

 

(366.3)

 

372.9

 

218.4

 

148.1

Other comprehensive (loss) income, net of tax

 

(58.5)

 

56.4

 

(58.5)

 

 

(56.4)

Comprehensive income

 

314.6

 

(309.9)

 

314.4

 

218.4

 

91.7

Less: Comprehensive (loss) income attributable to non-controlling interests

 

(1.0)

 

1.2

 

(1.2)

 

 

(1.0)

Comprehensive income attributable to Penske Automotive Group common stockholders

$

315.6

$

(311.1)

$

315.6

$

218.4

$

92.7

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Nine Months Ended September 30, 2019

    

    

Penske

    

    

 

Total

Automotive

Guarantor

Non-Guarantor

 

Company

Group

Subsidiaries

Subsidiaries

 

Net cash provided by (used in) continuing operating activities

$

660.8

$

(38.1)

$

457.0

$

241.9

Investing activities:

Purchase of equipment and improvements

 

(188.8)

 

(0.7)

 

(72.9)

 

(115.2)

Proceeds from sale of dealerships

7.3

 

 

7.3

 

Proceeds from sale-leaseback transactions

7.3

 

 

 

7.3

Acquisitions, net

 

(326.9)

 

 

(325.8)

 

(1.1)

Other

 

(2.3)

 

(2.6)

 

 

0.3

Net cash used in continuing investing activities

 

(503.4)

 

(3.3)

 

(391.4)

 

(108.7)

Financing activities:

Net borrowings (repayments) of long-term debt

 

170.3

 

144.9

 

34.1

 

(8.7)

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

 

(18.0)

 

(5.1)

 

9.5

 

(22.4)

Repurchases of common stock

 

(174.1)

 

(174.1)

 

 

Dividends

 

(97.3)

 

(97.3)

 

 

Other

 

0.1

 

0.1

 

 

Distributions from (to) parent

 

 

172.9

 

(122.3)

 

(50.6)

Net cash (used in) provided by continuing financing activities

 

(119.0)

 

41.4

 

(78.7)

 

(81.7)

Net cash provided by discontinued operations

 

0.2

 

 

0.2

 

Effect of exchange rate changes on cash and cash equivalents

(0.5)

(0.5)

Net change in cash and cash equivalents

 

38.1

 

 

(12.9)

 

51.0

Cash and cash equivalents, beginning of period

 

39.4

 

 

12.9

 

26.5

Cash and cash equivalents, end of period

$

77.5

$

$

(0.0)

$

77.5

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Nine Months Ended September 30, 2018

    

    

Penske

    

    

 

Total

Automotive

Guarantor

Non-Guarantor

 

Company

Group

Subsidiaries

Subsidiaries

 

Net cash provided by (used in) continuing operating activities

$

535.9

$

16.1

$

356.2

$

163.6

Investing activities:

Purchase of equipment and improvements

 

(188.5)

 

(2.3)

 

(95.1)

 

(91.1)

Proceeds from sale of dealerships

58.4

 

55.9

 

2.5

Proceeds from sale-leaseback transactions

10.7

 

 

10.7

Acquisitions, net

 

(168.6)

 

 

 

(168.6)

Other

 

(3.5)

 

(2.4)

 

 

(1.1)

Net cash (used in) provided by continuing investing activities

 

(291.5)

 

(4.7)

 

(39.2)

 

(247.6)

Financing activities:

Net (repayments) borrowings of long-term debt

 

(41.0)

 

(172.0)

 

41.6

 

89.4

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

 

(59.6)

 

(23.3)

 

(50.1)

 

13.8

Repurchases of common stock

 

(55.8)

 

(55.8)

 

 

Dividends

 

(89.7)

 

(89.7)

 

 

Other

 

(6.2)

 

(0.3)

 

(5.9)

 

Distributions from (to) parent

 

 

329.7

 

(314.3)

 

(15.4)

Net cash (used in) provided by continuing financing activities

 

(252.3)

 

(11.4)

 

(328.7)

 

87.8

Net cash provided by discontinued operations

 

0.3

 

 

0.3

 

Effect of exchange rate changes on cash and cash equivalents

(0.5)

(0.5)

Net change in cash and cash equivalents

 

(8.1)

 

 

(11.4)

 

3.3

Cash and cash equivalents, beginning of period

 

45.7

 

 

14.8

 

30.9

Cash and cash equivalents, end of period

$

37.6

$

$

3.4

$

34.2