Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 19, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-12297 | |
Entity Registrant Name | Penske Automotive Group, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 22-3086739 | |
Entity Address, Address Line One | 2555 Telegraph Road | |
Entity Address, City or Town | Bloomfield Hills | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48302-0954 | |
City Area Code | 248 | |
Local Phone Number | 648-2500 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | PAG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 69,000,218 | |
Entity Central Index Key | 0001019849 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 100.6 | $ 106.5 |
Accounts receivable, net of allowance for doubtful accounts of $6.7 and $6.6 | 920.2 | 906.7 |
Inventories | 3,630.4 | 3,509.1 |
Other current assets | 171.7 | 141.9 |
Total current assets | 4,822.9 | 4,664.2 |
Property and equipment, net | 2,566.8 | 2,496.5 |
Operating lease right-of-use assets | 2,375.6 | 2,416.1 |
Goodwill | 2,162.5 | 2,154.7 |
Other indefinite-lived intangible assets | 692.3 | 690.9 |
Equity method investments | 1,719.5 | 1,636.9 |
Other long-term assets | 56.2 | 55.3 |
Total assets | 14,395.8 | 14,114.6 |
LIABILITIES AND EQUITY | ||
Floor plan notes payable | 1,584.2 | 1,565.7 |
Floor plan notes payable — non-trade | 1,311.9 | 1,430.6 |
Accounts payable | 922.2 | 853.5 |
Accrued expenses and other current liabilities | 861.1 | 788.1 |
Current portion of long-term debt | 81.5 | 75.2 |
Total current liabilities | 4,760.9 | 4,713.1 |
Long-term debt | 1,619.8 | 1,546.9 |
Long-term operating lease liabilities | 2,302.5 | 2,335.7 |
Deferred tax liabilities | 1,138 | 1,121 |
Other long-term liabilities | 223.2 | 223.1 |
Total liabilities | 10,044.4 | 9,939.8 |
Commitments and contingent liabilities (Note 10) | ||
Penske Automotive Group stockholders' equity: | ||
Preferred Stock, $0.0001 par value; 100,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock | 0 | 0 |
Additional paid-in capital | 0 | 0 |
Retained earnings | 4,635.8 | 4,483.3 |
Accumulated other comprehensive income (loss) | (312.5) | (335.3) |
Total Penske Automotive Group stockholders' equity | 4,323.3 | 4,148 |
Non-controlling interest | 28.1 | 26.8 |
Total equity | 4,351.4 | 4,174.8 |
Total liabilities and equity | 14,395.8 | 14,114.6 |
Non-voting Common Stock | ||
Penske Automotive Group stockholders' equity: | ||
Common stock | 0 | 0 |
Class C Common Stock | ||
Penske Automotive Group stockholders' equity: | ||
Common stock | $ 0 | $ 0 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts receivable, allowance for doubtful accounts | $ 6.7 | $ 6.6 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 100,000 | 100,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 240,000,000 | 240,000,000 |
Common stock, shares issued (in shares) | 69,000,558 | 69,681,891 |
Common stock, shares outstanding (in shares) | 69,000,558 | 69,681,891 |
Non-voting Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 7,125,000 | 7,125,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Class C Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue: | ||
Total revenues | $ 7,339 | $ 6,975.4 |
Cost of sales: | ||
Total cost of sales | 6,086.7 | 5,743.7 |
Gross profit | 1,252.3 | 1,231.7 |
Selling, general, and administrative expenses | 844.9 | 797.8 |
Depreciation | 33.9 | 31.9 |
Operating income | 373.5 | 402 |
Floor plan interest expense | (27.9) | (7.5) |
Other interest expense | (20.8) | (16.5) |
Equity in earnings of affiliates | 82.1 | 119.6 |
Income before income taxes | 406.9 | 497.6 |
Income taxes | (107.3) | (128.1) |
Net income | 299.6 | 369.5 |
Less: Income attributable to non-controlling interests | 1.3 | 1.6 |
Net income attributable to Penske Automotive Group common stockholders | $ 298.3 | $ 367.9 |
Basic earnings per share attributable to Penske Automotive Group common stockholders: | ||
Net income attributable to Penske Automotive Group common stockholders (in dollars per share) | $ 4.31 | $ 4.76 |
Shares used in determining basic earnings per share (in shares) | 69,201,232 | 77,224,165 |
Diluted earnings per share attributable to Penske Automotive Group common stockholders: | ||
Net income attributable to Penske Automotive Group common stockholders (in dollars per share) | $ 4.31 | $ 4.76 |
Shares used in determining diluted earnings per share (in shares) | 69,218,861 | 77,249,165 |
Amounts attributable to Penske Automotive Group common stockholders: | ||
Net income | $ 299.6 | $ 369.5 |
Less: Income attributable to non-controlling interests | 1.3 | 1.6 |
Net income attributable to Penske Automotive Group common stockholders | $ 298.3 | $ 367.9 |
Cash dividends per share (in dollars per share) | $ 0.61 | $ 0.47 |
Retail automotive dealership | ||
Revenue: | ||
Total revenues | $ 6,299.8 | $ 6,029.2 |
Cost of sales: | ||
Total cost of sales | 5,237.2 | 4,978.5 |
Retail commercial truck dealership | ||
Revenue: | ||
Total revenues | 895.6 | 792.3 |
Cost of sales: | ||
Total cost of sales | 748.6 | 651.1 |
Commercial vehicle distribution and other | ||
Revenue: | ||
Total revenues | 143.6 | 153.9 |
Cost of sales: | ||
Total cost of sales | $ 100.9 | $ 114.1 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 299.6 | $ 369.5 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | 18.3 | (28.5) |
Other adjustments to comprehensive income, net | 4.8 | (1.2) |
Other comprehensive income (loss), net of tax | 23.1 | (29.7) |
Comprehensive income | 322.7 | 339.8 |
Less: Comprehensive income attributable to non-controlling interests | 1.6 | 1.2 |
Comprehensive income attributable to Penske Automotive Group common stockholders | $ 321.1 | $ 338.6 |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Activities: | ||
Net income | $ 299.6 | $ 369.5 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation | 33.9 | 31.9 |
Earnings of equity method investments | (82.1) | (119.6) |
Deferred income taxes | 13.7 | 41.4 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (10.2) | (101.1) |
Inventories | (95.2) | 30.8 |
Floor plan notes payable | 8.1 | (12.9) |
Accounts payable and accrued expenses | 131.6 | 134.6 |
Other | 11.8 | 6 |
Net cash provided by operating activities | 311.2 | 380.6 |
Investing Activities: | ||
Purchases of property, equipment, and improvements | (102.4) | (56.2) |
Proceeds from sale of property and equipment | 0 | 1.8 |
Acquisitions net, including repayment of sellers' floor plan notes payable of $0.0 and $16.5, respectively | 0 | (93.6) |
Other | (3.1) | (1.8) |
Net cash used in investing activities | (105.5) | (149.8) |
Financing Activities: | ||
Proceeds from borrowings under revolving U.S. credit agreement and mortgage facility | 611.7 | 409 |
Repayments under revolving U.S. credit agreement and mortgage facility | (512) | (409) |
Net repayments of other debt | (23.9) | (9.9) |
Net (repayments) borrowings of floor plan notes payable — non-trade | (133.1) | 6.5 |
Repurchases of common stock | (110.2) | (119.2) |
Dividends | (42.3) | (36.4) |
Payment of debt issuance costs | (2) | (0.1) |
Net cash used in financing activities | (211.8) | (159.1) |
Effect of exchange rate changes on cash and cash equivalents | 0.2 | (2.1) |
Net change in cash and cash equivalents | (5.9) | 69.6 |
Cash and cash equivalents, beginning of period | 106.5 | 100.7 |
Cash and cash equivalents, end of period | 100.6 | 170.3 |
Cash paid for: | ||
Interest | 47.7 | 24.7 |
Income taxes | $ 23.9 | $ 19.3 |
CONSOLIDATED CONDENSED STATEM_4
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Cash Flows [Abstract] | ||
Repayment of sellers' floor plan notes payable | $ 0 | $ 16.5 |
CONSOLIDATED CONDENSED STATEM_5
CONSOLIDATED CONDENSED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Total Penske Automotive Group Stockholders' Equity | Total Penske Automotive Group Stockholders' Equity Cumulative Effect, Period of Adoption, Adjustment | Voting and Non-voting Common Stock | Additional Paid-in Capital | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest |
Beginning balance (in shares) at Dec. 31, 2021 | 77,574,172 | |||||||||
Beginning balance at Dec. 31, 2021 | $ 4,095 | $ (121.6) | $ 4,070 | $ (121.6) | $ 0 | $ 42.2 | $ 4,196.6 | $ (121.6) | $ (168.8) | $ 25 |
Increase (decrease) in stockholders' equity | ||||||||||
Equity compensation (in shares) | 287,682 | |||||||||
Equity compensation | 7.4 | 7.4 | 7.4 | |||||||
Repurchase of common stock (in shares) | (1,203,449) | |||||||||
Repurchases of common stock | (119.2) | (119.2) | (49.6) | (69.6) | ||||||
Dividends | (36.4) | (36.4) | (36.4) | |||||||
Distributions to non-controlling interest | (0.6) | (0.6) | ||||||||
Foreign currency translation | (28.5) | (28.1) | (28.1) | (0.4) | ||||||
Other | (1.2) | (1.2) | (1.2) | |||||||
Net income | 369.5 | 367.9 | 367.9 | 1.6 | ||||||
Ending balance (in shares) at Mar. 31, 2022 | 76,658,405 | |||||||||
Ending balance at Mar. 31, 2022 | $ 4,164.4 | 4,138.8 | $ 0 | 0 | 4,336.9 | (198.1) | 25.6 | |||
Beginning balance (in shares) at Dec. 31, 2022 | 69,681,891 | 69,681,891 | ||||||||
Beginning balance at Dec. 31, 2022 | $ 4,174.8 | 4,148 | $ 0 | 0 | 4,483.3 | (335.3) | 26.8 | |||
Increase (decrease) in stockholders' equity | ||||||||||
Equity compensation (in shares) | 208,994 | |||||||||
Equity compensation | 7.8 | 7.8 | 7.8 | |||||||
Repurchase of common stock (in shares) | (890,327) | |||||||||
Repurchases of common stock | (111.3) | (111.3) | (7.8) | (103.5) | ||||||
Dividends | (42.3) | (42.3) | (42.3) | |||||||
Distributions to non-controlling interest | (0.3) | (0.3) | ||||||||
Foreign currency translation | 18.3 | 18 | 18 | 0.3 | ||||||
Other | 4.8 | 4.8 | 4.8 | |||||||
Net income | $ 299.6 | 298.3 | 298.3 | 1.3 | ||||||
Ending balance (in shares) at Mar. 31, 2023 | 69,000,558 | 69,000,558 | ||||||||
Ending balance at Mar. 31, 2023 | $ 4,351.4 | $ 4,323.3 | $ 0 | $ 0 | $ 4,635.8 | $ (312.5) | $ 28.1 |
Interim Financial Statements
Interim Financial Statements | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Financial Statements | Interim Financial Statements Unless the context otherwise requires, the use of the terms "PAG," "we," "us," and "our" in these Notes to the Consolidated Condensed Financial Statements refers to Penske Automotive Group, Inc. and its consolidated subsidiaries. Business Overview and Concentrations We are a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers. We operate dealerships in the United States, the United Kingdom, Canada, Germany, Italy, and Japan, and we are one of the largest retailers of commercial trucks in North America for Freightliner. We also distribute and retail commercial vehicles, diesel and gas engines, power systems, and related parts and services principally in Australia and New Zealand. We employ over 27,000 people worldwide. Additionally, we own 28.9% of Penske Transportation Solutions, a business that employs over 43,000 people worldwide, manages one of the largest, most comprehensive and modern trucking fleets in North America with over 419,000 trucks, tractors, and trailers under lease, rental, and/or maintenance contracts, and provides innovative transportation, supply chain, and technology solutions to its customers. Retail Automotive. We are one of the largest global automotive retailers as measured by the $23.7 billion in total retail automotive dealership revenue we generated in 2022. We are diversified geographically with 54% of our total retail automotive dealership revenues in the three months ended March 31, 2023, generated in the U.S. and Puerto Rico and 46% generated outside of the U.S. We offer over 35 vehicle brands with 72% of our retail automotive franchised dealership revenue generated from premium brands, such as Audi, BMW, Land Rover, Mercedes-Benz, and Porsche, in the three months ended March 31, 2023. As of March 31, 2023, we operated 333 retail automotive franchised dealerships, of which 148 are located in the U.S. and 185 are located outside of the U.S. The franchised dealerships outside of the U.S. are located primarily in the U.K. As of March 31, 2023, we also operated 20 used vehicle dealerships, with seven dealerships in the U.S. and 13 dealerships in the U.K., which retailed used vehicles under a one price, "no-haggle" methodology under the CarShop brand. Each of our franchised dealerships offers a wide selection of new and used vehicles for sale. In addition to selling new and used vehicles, we generate higher-margin revenue at each of our dealerships through maintenance and repair services, the sale and placement of third-party finance and insurance products, third-party extended service and maintenance contracts, replacement and aftermarket automotive products, and at certain of our locations, collision repair services. We operate our franchised dealerships under franchise agreements with a number of automotive manufacturers and distributors that are subject to certain rights and restrictions typical of the industry. Beginning in 2023, we transitioned our Mercedes-Benz U.K. dealerships to an agency model under which these dealerships receive a fee for facilitating the sale by the manufacturer of a new vehicle but do not hold the vehicle in inventory. Vehicles sold under this agency model do not count as new retail units sold by us, and only the fee we receive from the manufacturer, not the price of the vehicle, is reported as new revenue (as opposed to previously recording all of the vehicle sale price as new revenue) with no corresponding cost of sale. We continue to provide new vehicle customer service at our Mercedes-Benz U.K. dealerships, and the Mercedes-Benz U.K. agency model is not expected to structurally change our used vehicle sales operations or service and parts operations, although the impact of the agency model at these dealerships as well as other agency models proposed by our manufacturer partners is uncertain. During the three months ended March 31, 2023, we closed four locations in the U.S., consisting of three retail automotive franchises and one CarShop location. Retail Commercial Truck Dealership. We operate Premier Truck Group ("PTG"), a heavy- and medium-duty truck dealership group offering primarily Freightliner and Western Star trucks (both Daimler brands), with locations across nine U.S. states and Ontario, Canada. As of March 31, 2023, PTG operated 39 locations selling new and used trucks, parts and service, and offering collision repair services. Penske Australia . Penske Australia is the exclusive importer and distributor of Western Star heavy-duty trucks (a Daimler brand), MAN heavy- and medium-duty trucks and buses (a VW Group brand), and Dennis Eagle refuse collection vehicles, together with associated parts, across Australia, New Zealand, and portions of the Pacific. In most of these same markets, we are also a leading distributor of diesel and gas engines and power systems, principally representing MTU (a Rolls-Royce solution), Detroit Diesel, Allison Transmission, and Bergen Engines. Penske Australia offers products across the on- and off-highway markets, including in the trucking, mining, power generation, defense, marine, rail, and construction sectors and supports full parts and aftersales service through a network of branches, field service locations, and dealers across the region. Penske Transportation Solutions. We hold a 28.9% ownership interest in Penske Truck Leasing Co., L.P. ("PTL"). PTL is owned 41.1% by Penske Corporation, 28.9% by us, and 30.0% by Mitsui & Co., Ltd. ("Mitsui"). We account for our investment in PTL under the equity method, and we therefore record our share of PTL's earnings on our statements of income under the caption "Equity in earnings of affiliates," which also includes the results of our other equity method investments. Penske Transportation Solutions ("PTS") is the universal brand name for PTL's various business lines through which it is capable of meeting customers' needs across the supply chain with a broad product offering that includes full-service truck leasing, truck rental, and contract maintenance along with logistic services, such as dedicated contract carriage, distribution center management, freight management, and dry van truckload carrier services. Basis of Presentation The accompanying unaudited consolidated condensed financial statements of PAG have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and disclosures normally included in our annual financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") have been condensed or omitted pursuant to the SEC rules and regulations. The information presented as of March 31, 2023 and for the three months ended March 31, 2023 and 2022 is unaudited but includes all adjustments which our management believes to be necessary for the fair presentation of results for the periods presented. Results for interim periods are not necessarily indicative of results to be expected for the year. These consolidated condensed financial statements should be read in conjunction with our audited financial statements for the year ended December 31, 2022, which are included as part of our Annual Report on Form 10-K. Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The accounts requiring the use of significant estimates include accounts receivable, inventories, income taxes, intangible assets, leases, and certain reserves. Fair Value of Financial Instruments Accounting standards define fair value as the price that would be received from selling an asset, or paid to transfer a liability in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date. Accounting standards establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and also establishes the following three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted market prices in markets that are not active, or model-derived valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities Our financial instruments consist of cash and cash equivalents, debt, floor plan notes payable, and forward exchange contracts used to hedge future cash flows. Other than our fixed rate debt, the carrying amount of all significant financial instruments approximates fair value due either to length of maturity, the existence of variable interest rates that approximate prevailing market rates, or as a result of mark to market accounting. Our fixed rate debt consists of amounts outstanding under our senior subordinated notes and mortgage facilities. We estimate the fair value of our senior unsecured notes using quoted prices for the identical liability (Level 2), and we estimate the fair value of our mortgage facilities using a present value technique based on our current market interest rates for similar types of financial instruments (Level 2). A summary of our fixed rate debt is as follows: March 31, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value 3.50% senior subordinated notes due 2025 546.5 517.5 546.2 $ 508.7 3.75% senior subordinated notes due 2029 495.2 428.0 495.1 404.2 Mortgage facilities (1) 590.9 564.5 494.3 462.1 _____________________ (1) In addition to fixed rate debt, our mortgage facilities also include a revolving mortgage facility through Toyota Motor Credit Corporation that bears interest at a variable rate based on LIBOR. The fair value equals the carrying value. Disposals The results of operations for disposals are included within net income unless they meet the criteria to be classified as held for sale and treated as discontinued operations. Income Taxes Tax regulations may require items to be included in our tax return at different times than when those items are reflected in our financial statements. Some of the differences are permanent, such as expenses that are not deductible on our tax return, and some are temporary differences, such as the timing of depreciation expense. Temporary differences create deferred tax assets and liabilities. Deferred tax assets generally represent items that will be used as a tax deduction or credit in our tax return in future years which we have already recorded in our financial statements. Deferred tax liabilities generally represent deductions taken on our tax return that have not yet been recognized as an expense in our financial statements. We establish valuation allowances for our deferred tax assets if the amount of expected future taxable income is not more likely than not to allow for the use of the deduction or credit. Recent Accounting Pronouncements Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This ASU provides optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued due to reference rate reform. Additionally, entities can elect to continue applying hedge accounting for hedging relationships affected by reference rate reform if certain conditions are met. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848): Scope." This ASU refines the scope of ASC 848 and clarifies some of its guidance as part of the Board's monitoring of global reference rate reform activities. The ASU permits entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, for computing variation margin settlements, and for calculating price alignment interest in connection with reference rate reform activities. In December 2022, the FASB issued ASU 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848." This ASU defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. These new standards were effective upon issuance and generally can be applied to applicable contract modifications. While many of our floorplan arrangements utilize LIBOR as a benchmark for calculating the applicable interest rate, some of our floorplan arrangements and our U.S. and U.K. credit agreements have already transitioned to utilizing an alternative benchmark rate. We are continuing to evaluate the impact of the transition from LIBOR to alternative reference interest rates. We cannot predict the effect of the potential changes to or elimination of LIBOR, the establishment and use of alternative rates or benchmarks, and the corresponding effects on our cost of capital but do not expect a significant impact on our consolidated financial position, results of operations, and cash flows. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Automotive and commercial truck dealerships generate the majority of our revenues. New and used vehicle revenues typically include sales to retail customers, to fleet customers, and to leasing companies providing consumer leasing. We generate finance and insurance revenues from sales of third-party extended service contracts, sales of third-party insurance policies, commissions relating to the sale of finance and lease contracts to third parties, and the sales of certain other products. Service and parts revenues include fees paid by customers for repair, maintenance and collision services, and the sale of replacement parts and other aftermarket accessories as well as warranty repairs that are reimbursed directly by various vehicle manufacturers. Revenues are recognized upon satisfaction of our performance obligations under contracts with our customers and are measured at the amount of consideration we expect to be entitled to in exchange for transferring goods or providing services. A discussion of revenue recognition by reportable segment is included below. Retail Automotive and Retail Commercial Truck Dealership Revenue Recognition Dealership Vehicle Sales. We record revenue for vehicle sales at a point in time when vehicles are delivered, which is when the transfer of title, risks and rewards of ownership, and control are considered passed to the customer. For dealerships operating under a franchise model, the amount of consideration we receive for vehicle sales is stated within the executed contract with our customer and is reduced by any non-cash consideration representing the fair value of trade-in vehicles, if applicable. Payment is typically due and collected within 30 days subsequent to transfer of control of the vehicle. For dealerships operating under an agency model, we receive a commission for each vehicle sale that we facilitate under the terms of the agency agreement with the manufacturer, which is recorded as new vehicle revenue. Dealership Parts and Service Sales. We record revenue for vehicle service and collision work over time as work is completed and when parts are delivered to our customers. For service and parts revenues recorded over time, we utilize a method that considers total costs incurred to date and the applicable margin in relation to total expected efforts to complete our performance obligation in order to determine the appropriate amount of revenue to recognize over time. Recognition of this revenue over time reflects the amount of consideration we expect to be entitled to for the transfer of goods and services performed to date, representative of the amount for which we have a right to payment. The amount of consideration we receive for parts and service sales, including collision repair work, is based upon labor hours expended and parts utilized to perform and complete the necessary services to our customers. Payment is typically due upon delivery or within a period of time shortly thereafter. We receive payment from our customers upon transfer of control or within a period typically less than 30 days subsequent to the completion of services for the customer. We allow for customer returns of parts sales up to 30 days after the sale; however, parts returns are not material. Dealership Finance and Insurance Sales. Subsequent to the sale of a vehicle to a customer, we sell installment sale contracts to various financial institutions on a non-recourse basis (with specified exceptions) to mitigate the risk of default. We receive a commission from the lender equal to either the difference between the interest rate charged to the customer and the interest rate set by the financing institution or a flat fee. We also receive commissions for facilitating the sale of various products to customers, including voluntary vehicle protection insurance, vehicle theft protection, and extended service contracts. These commissions are recorded as revenue at a point in time when the customer enters into the contract. Payment is typically due and collected within 30 days subsequent to the execution of the contract with the customer. In the case of finance contracts, a customer may prepay or fail to pay their contract, thereby terminating the contract. Customers may also terminate extended service contracts and other insurance products, which are fully paid at purchase, and become eligible for refunds of unused premiums. In these circumstances, a portion of the commissions we received may be charged back based on the terms of the contracts. The revenue we record relating to these transactions is net of an estimate of the amount of chargebacks we will be required to pay. Our estimate is based upon our historical experience with similar contracts, including the impact of refinance and default rates on retail finance contracts and cancellation rates on extended service contracts and other insurance products. Aggregate reserves relating to chargeback activity were $39.7 million and $38.4 million as of March 31, 2023, and December 31, 2022, respectively. Commercial Vehicle Distribution and Other Revenue Recognition Penske Australia. We record revenue from the distribution of vehicles and other products at a point in time when delivered, which is when the transfer of title, risks and rewards of ownership, and control are considered passed to the customer. We record revenue for service or repair work over time as work is completed and when parts are delivered to our customers. For service and parts revenues recorded over time, we utilize a method that considers total costs incurred to date and the applicable margin in relation to total expected efforts to complete our performance obligation in order to determine the appropriate amount of revenue to recognize over time. Recognition of this revenue over time reflects the amount of consideration we expect to be entitled to for the transfer of goods and services performed to date, representative of the amount for which we have a right to payment. The amount of consideration we receive for vehicle and product sales is stated within the executed contract with our customer. The amount of consideration we receive for parts and service sales is based upon labor hours expended and parts utilized to perform and complete the necessary services to our customers. Payment is typically due upon delivery, upon invoice, or within a period of time shortly thereafter. We receive payment from our customers upon transfer of control or within a period typically less than 30 days subsequent to transfer of control or invoice. We record revenue from the distribution of engines and other products at a point in time when delivered, which is when the transfer of title, risks and rewards of ownership, and control are considered passed to the customer. We record revenue for service or repair work over time as work is completed and when parts are delivered to our customers. For service and parts revenues recorded over time, we utilize a method that considers total costs incurred to date and the applicable margin in relation to total expected efforts to complete our performance obligation in order to determine the appropriate amount of revenue to recognize over time. Recognition of revenue over time reflects the amount of consideration we expect to be entitled to for the transfer of goods and services performed to date, representative of the amount for which we have a right to payment. For our long-term power generation contracts, we record revenue over time as services are provided in accordance with contract milestones, which is considered an output method that requires judgment to determine our progress towards contract completion and the corresponding amount of revenue to recognize. Any revisions to estimates related to revenues or costs to complete contracts are recorded in the period in which the revisions to estimates are identified and the amounts can be reasonably estimated. The amount of consideration we receive for engine, product, and power generation sales is stated within the executed contract with our customer. The amount of consideration we receive for service sales is based upon labor hours expended and parts utilized to perform and complete the necessary services to our customers. Payment is typically due upon delivery, upon invoice, or within a period of time shortly thereafter. We receive payment from our customers upon transfer of control or within a period typically less than 30 days subsequent to transfer of control or invoice. Retail Automotive Dealership The following tables disaggregate our retail automotive segment revenue by product type and geographic location for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, Retail Automotive Dealership Revenue 2023 2022 New vehicle $ 2,721.3 $ 2,445.5 Used vehicle 2,297.1 2,422.9 Finance and insurance, net 206.8 217.3 Service and parts 683.0 586.2 Fleet and wholesale 391.6 357.3 Total retail automotive dealership revenue $ 6,299.8 $ 6,029.2 Three Months Ended March 31, Retail Automotive Dealership Revenue 2023 2022 U.S. $ 3,378.2 $ 3,343.6 U.K. 2,472.4 2,262.9 Germany, Italy, and Japan 449.2 422.7 Total retail automotive dealership revenue $ 6,299.8 $ 6,029.2 Retail Commercial Truck Dealership The following table disaggregates our retail commercial truck segment revenue by product type for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, Retail Commercial Truck Dealership Revenue 2023 2022 New truck $ 600.2 $ 471.7 Used truck 49.5 100.3 Finance and insurance, net 5.0 6.4 Service and parts 228.0 197.0 Other 12.9 16.9 Total retail commercial truck dealership revenue $ 895.6 $ 792.3 Commercial Vehicle Distribution and Other Contract Balances The following table summarizes our accounts receivable and unearned revenues as of March 31, 2023, and December 31, 2022: March 31, December 31, Accounts receivable Contracts in transit $ 246.9 $ 281.7 Vehicle receivables 263.6 235.1 Manufacturer receivables 193.3 178.9 Trade receivables 198.7 191.1 Accrued expenses Unearned revenues $ 280.6 $ 291.7 Contracts in transit represent receivables from unaffiliated finance companies relating to the sale of customers' installment sales and lease contracts arising in connection with the sale of a vehicle by us. Vehicle receivables represent receivables for any portion of the vehicle sales price not paid by the finance company. Manufacturer receivables represent amounts due from manufacturers, including incentives, holdbacks, rebates, warranty claims, and other receivables due from the factory. Trade receivables represent receivables due from customers, including amounts due for parts and service sales as well as receivables due from finance companies and others for the commissions earned on financing and commissions earned on insurance and extended service products provided by third parties. We evaluate collectability of receivables and estimate an allowance for doubtful accounts based on the age of the receivable, contractual life, historical collection experience, current conditions, and forecasts of future economic conditions, which is recorded within "Accounts receivable" on our consolidated balance sheets with our receivables presented net of the allowance. Unearned revenues primarily relate to payments received from customers prior to satisfaction of our performance obligations, such as refundable customer deposits, non-refundable customer deposits, and deferred revenues from operating leases. These amounts are presented within "Accrued expenses and other current liabilities" on our consolidated balance sheets. Of the amounts recorded as unearned revenues as of December 31, 2022, $118.7 million was recognized as revenue during the three months ended March 31, 2023. Additional Revenue Recognition Related Policies We do not have any material significant payment terms associated with contracts with our customers. Payment is due and collected as previously detailed for each reportable segment. We do not offer material rights of return or service-type warranties. Taxes collected from customers and remitted to governmental authorities are recorded on a net basis (excluded from revenue). Shipping costs incurred subsequent to transfer of control to our customers are recognized as cost of sales. Sales promotions that we offer to customers are accounted for as a reduction of revenues at the time of sale. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases We lease land and facilities, including certain dealerships and office space. Our property leases are generally for an initial period between 5 and 20 years and are typically structured to include renewal options at our election. We include renewal options that we are reasonably certain to exercise in the measurement of our lease liabilities and right-of-use assets. We also have equipment leases that primarily relate to office and computer equipment, service and shop equipment, company vehicles, and other miscellaneous items. These leases are generally for a period of less than 5 years. We do not have any material leases, individually or in the aggregate, classified as a finance leasing arrangement. We estimate the total undiscounted rent obligations under these leases, including any extension periods that we are reasonably certain to exercise, to be $5.2 billion as of March 31, 2023. Some of our lease arrangements include rental payments that are adjusted based on an index or rate, such as the Consumer Price Index (CPI). As the rate implicit in the lease is generally not readily determinable for our operating leases, the discount rates used to determine the present value of our lease liability are based on our incremental borrowing rate at the lease commencement date and commensurate with the remaining lease term. Our incremental borrowing rate for a lease is the rate of interest we would have to pay to borrow on a collateralized basis over a similar term for an amount equal to the lease payments in a similar economic environment. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Pursuant to the leases for some of our larger facilities, we are required to comply with specified financial ratios, including a "rent coverage" ratio and a debt to EBITDA ratio, each as defined. For these leases, non-compliance with the ratios may require us to post collateral in the form of a letter of credit. A breach of the other lease covenants gives rise to certain remedies by the landlord, the most severe of which include the termination of the applicable lease and acceleration of the total rent payments due under the lease. The following table summarizes our net operating lease cost during the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 Lease Cost Operating lease cost (1) $ 64.4 $ 63.4 Sublease income (4.2) (5.1) Total lease cost $ 60.2 $ 58.3 _________________ (1) Includes short-term leases and variable lease costs, which are immaterial. The following table summarizes supplemental cash flow information related to our operating leases: Three Months Ended Three Months Ended Other Information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 64.0 $ 62.0 Right-of-use assets modified or obtained in exchange for operating lease liabilities, net $ (23.2) $ 12.9 Supplemental balance sheet information related to the weighted average remaining lease term and discount rate of our leases is as follows: March 31, 2023 December 31, 2022 Lease Term and Discount Rate Weighted-average remaining lease term - operating leases 25 years 25 years Weighted-average discount rate - operating leases 6.5 % 6.5 % The following table summarizes the maturity of our lease liabilities on an undiscounted cash flow basis and a reconciliation to the operating lease liabilities recognized on our consolidated condensed balance sheet as of March 31, 2023: Maturity of Lease Liabilities March 31, 2023 2023 (1) $ 241.9 2024 239.0 2025 234.9 2026 227.8 2027 221.1 2028 211.5 2029 and thereafter 3,860.7 Total future minimum lease payments $ 5,236.9 Less: Imputed interest (2,844.1) Present value of future minimum lease payments $ 2,392.8 Current operating lease liabilities (2) $ 90.3 Long-term operating lease liabilities 2,302.5 Total operating lease liabilities $ 2,392.8 ____________________ (1) Excludes the three months ended March 31, 2023. (2) Included within "Accrued expenses and other current liabilities" on Consolidated Condensed Balance Sheet as of March 31, 2023. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: March 31, December 31, Retail automotive dealership new vehicles $ 1,429.1 $ 1,326.5 Retail automotive dealership used vehicles 1,285.5 1,279.6 Retail automotive parts, accessories, and other 147.5 145.6 Retail commercial truck dealership vehicles and parts 483.3 506.2 Commercial vehicle distribution vehicles, parts, and engines 285.0 251.2 Total inventories $ 3,630.4 $ 3,509.1 |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations During the three months ended March 31, 2023, we made no acquisitions. During the three months ended March 31, 2022, we acquired TEAM Truck Centres, a retailer of heavy- and medium-duty Freightliner and Western Star commercial trucks located in Ontario, Canada representing four full-service dealerships. Our financial statements include the results of operations of the acquired entity from the date of acquisition. The fair value of the assets acquired and liabilities assumed have been recorded in our consolidated condensed financial statements and may be subject to adjustment pending completion of final valuation. The following table summarizes the aggregate consideration paid and the aggregate amounts of the assets acquired and liabilities assumed for the three months ended March 31, 2022: March 31, 2022 Accounts receivable $ — Inventories 21.9 Other current assets 0.1 Property and equipment 10.0 Indefinite-lived intangibles 64.6 Other noncurrent assets — Current liabilities (2.9) Noncurrent liabilities (0.1) Total cash used in acquisitions $ 93.6 Our following unaudited consolidated pro forma results of operations for the three months ended March 31, 2022, give effect to acquisitions consummated during 2022 as if they had occurred effective at the beginning of the period: Three Months Ended March 31, 2022 Revenues $ 7,223.9 Net income attributable to Penske Automotive Group common stockholders 372.1 Net income per diluted common share $ 4.82 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Following is a summary of the changes in the carrying amount of goodwill and other indefinite-lived intangible assets during the three months ended March 31, 2023: Goodwill Other Indefinite- Balance, January 1, 2023 $ 2,154.7 $ 690.9 Additions — — Disposals — — Foreign currency translation 7.8 1.4 Balance, March 31, 2023 $ 2,162.5 $ 692.3 As of March 31, 2023, the goodwill balance within our Retail Automotive, Retail Commercial Truck, and Other reportable segments was $1,626.5 million, $462.4 million, and $73.6 million, respectively. There is no goodwill recorded in our Non-Automotive Investments reportable segment. |
Vehicle Financing
Vehicle Financing | 3 Months Ended |
Mar. 31, 2023 | |
Short-Term Debt [Abstract] | |
Vehicle Financing | Vehicle Financing We finance substantially all of the commercial vehicles we purchase for distribution, new vehicles for retail sale, and a portion of our used vehicle inventories for retail sale under floor plan and other revolving arrangements with various lenders, including the captive finance companies associated with automotive manufacturers. In the U.S., the floor plan arrangements are due on demand; however, we have not historically been required to repay floor plan advances prior to the sale of the vehicles that have been financed. We typically make monthly interest payments on the amount financed. Outside of the U.S., substantially all of the floor plan arrangements are payable on demand or have an original maturity of 90 days or less, and we are generally required to repay floor plan advances at the earlier of the sale of the vehicles that have been financed or the stated maturity. The agreements typically grant a security interest in substantially all of the assets of our dealership and distribution subsidiaries and in the U.S., Australia, and New Zealand are guaranteed or partially guaranteed by us. Interest rates under the arrangements are variable and increase or decrease based on changes in the prime rate, the Secured Overnight Financing Rate ("SOFR"), LIBOR, the Sterling Overnight Index Average ("SONIA"), the Bank of England Base Rate, the Finance House Base Rate, the Euro Interbank Offered Rate, the Canadian Prime Rate, the Tokyo Interbank Offered Rate, the Australian Bank Bill Swap Rate, or the New Zealand Bank Bill Benchmark Rate. To date, we have not experienced any material limitation with respect to the amount or availability of financing from any institution providing us vehicle financing. We also receive non-refundable credits from certain of our vehicle manufacturers, which are treated as a reduction of cost of sales as vehicles are sold. The weighted average interest rate on floor plan borrowings was 4.0% and 1.2% for the three months ended March 31, 2023 and 2022, respectively. We classify floor plan notes payable to a party other than the manufacturer of a particular new vehicle and all floor plan notes payable relating to pre-owned vehicles as "Floor plan notes payable — non-trade" on our consolidated balance sheets and classify related cash flows as a financing activity on our consolidated statements of cash flows. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per ShareBasic earnings per share is computed by dividing net income attributable to common stockholders by the number of weighted average shares of voting common stock outstanding, including unvested restricted stock awards which contain rights to non-forfeitable dividends. Diluted earnings per share is computed by dividing net income attributable to common stockholders by the number of weighted average shares of voting common stock outstanding, adjusted for the dilutive impact of unissued shares paid to directors as compensation. A reconciliation of the number of shares used in the calculation of basic and diluted earnings per share for the three months ended March 31, 2023 and 2022 follows: Three Months Ended 2023 2022 Weighted average number of common shares outstanding 69,201,232 77,224,165 Effect of non-participatory equity compensation 17,629 25,000 Weighted average number of common shares outstanding, including effect of dilutive securities 69,218,861 77,249,165 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following: March 31, December 31, U.S. credit agreement — revolving credit line $ — $ — U.K. credit agreement — revolving credit line — 24.2 3.50% senior subordinated notes due 2025 546.5 546.2 3.75% senior subordinated notes due 2029 495.2 495.1 Australia credit agreement 26.2 21.6 Mortgage facilities 590.9 494.3 Other 42.5 40.7 Total long-term debt 1,701.3 1,622.1 Less: current portion (81.5) (75.2) Net long-term debt $ 1,619.8 $ 1,546.9 U.S. Credit Agreement On April 20, 2023, we entered into the Tenth Amendment (the “Amendment”) to our U.S. credit agreement with Mercedes-Benz Financial Services USA LLC and Toyota Motor Credit Corporation (as amended, the “U.S. Credit Agreement”) principally to increase the facility borrowing capacity from $800 million to $1.2 billion, add an additional lender, Daimler Truck Financial Services USA LLC, and provide us with additional flexibility in regard to the operating covenants discussed below. As amended, the U.S. Credit Agreement provides for up to $1.2 billion in revolving loans for working capital, acquisitions, capital expenditures, investments and other general corporate purposes, and provides up to an additional $75 million of letters of credit. The U.S. Credit Agreement now provides for a maximum of $400 million of borrowings for foreign acquisitions and expires on September 30, 2025. The interest rate on revolving loans has transitioned from LIBOR based loans to Secured Overnight Financing Rate based loans (SOFR), but the interest rate is expected to be unchanged from the previous rates of LIBOR plus 1.50%, subject to an incremental 1.50% for uncollateralized borrowings in excess of a defined borrowing base. The U.S. credit agreement is fully and unconditionally guaranteed on a joint and several basis by substantially all of our U.S. subsidiaries and contains a number of significant operating covenants that, among other things, restrict our ability to dispose of assets, incur additional indebtedness, repay certain other indebtedness, pay dividends, create liens on assets, make investments or acquisitions, and engage in mergers or consolidations. We are also required to comply with specified financial and other tests and ratios, each as defined in the U.S. credit agreement, including a ratio of current assets to current liabilities, a fixed charge coverage ratio, a ratio of debt to stockholders' equity, and a ratio of debt to earnings before interest, taxes, depreciation, and amortization ("EBITDA"). A breach of these requirements would give rise to certain remedies under the agreement, the most severe of which is the termination of the agreement and acceleration of the amounts owed. The U.S. credit agreement also contains typical events of default, including change of control, non-payment of obligations, and cross-defaults to our other material indebtedness. Substantially all of our U.S. assets are subject to security interests granted to the lenders under the U.S. credit agreement. As of March 31, 2023, we had no outstanding revolver borrowings under the U.S. credit agreement. U.K. Credit Agreement Our subsidiaries in the U.K. (the "U.K. subsidiaries") previously were party to a £150.0 million revolving credit agreement with the National Westminster Bank plc and BMW Financial Services (GB) Limited (the "U.K. credit agreement") to be used for working capital, acquisitions, capital expenditures, investments, and general corporate purposes. We amended and restated this agreement on January 31, 2023, principally to expand the facility from £150.0 million to £200.0 million, extend the term to January 2027 (with an option to extend the term to January 2028 as described below), and provide additional flexibility with respect to the operating covenants noted below. The revolving loans bear interest between SONIA plus 1.10% and SONIA plus 2.10%. In addition, the U.K. credit agreement includes a £100.0 million "accordion" feature which allows the U.K. subsidiaries to request up to an additional £100.0 million of facility capacity, subject to certain limitations. The lenders may agree to provide additional capacity, and, if not, the U.K. subsidiaries may add an additional lender, if available, to the facility to provide such additional capacity. The U.K. subsidiaries may request an extension of the term of the U.K. credit agreement by an additional year by providing notice beginning in December 2023, with the effectiveness of such extension subject to lender approval. As of March 31, 2023, we had no outstanding borrowings under the U.K. credit agreement. The U.K. credit agreement is fully and unconditionally guaranteed on a joint and several basis by our U.K. subsidiaries and contains a number of significant covenants that, among other things, limit the ability of our U.K. subsidiaries to pay dividends, dispose of assets, incur additional indebtedness, repay other indebtedness, create liens on assets, make investments or acquisitions, and engage in mergers or consolidations. In addition, our U.K. subsidiaries are required to comply with defined ratios and tests, including a ratio of earnings before interest, taxes, amortization, and rental payments ("EBITAR") to interest plus rental payments, a measurement of maximum capital expenditures, and a debt to EBITDA ratio. A breach of these requirements would give rise to certain remedies under the agreement, the most severe of which is the termination of the agreement and acceleration of any amounts owed. The U.K. credit agreement also contains typical events of default, including change of control and non-payment of obligations and cross-defaults to other material indebtedness of our U.K. subsidiaries. Substantially all of our U.K. subsidiaries' assets are subject to security interests granted to the lenders under the U.K. credit agreement. Senior Subordinated Notes We have issued the following senior subordinated notes: Description Maturity Date Interest Payment Dates Principal Amount 3.50% Notes September 1, 2025 February 15, August 15 $550 million 3.75% Notes June 15, 2029 June 15, December 15 $500 million Each of these notes are our unsecured, senior subordinated obligations and are guaranteed on an unsecured senior subordinated basis by our 100% owned U.S. subsidiaries. Each also contain customary negative covenants and events of default. If we experience certain "change of control" events specified in the indentures, holders of these notes will have the option to require us to purchase for cash all or a portion of their notes at a price equal to 101% of the principal amount of the notes, plus accrued and unpaid interest. In addition, if we make certain asset sales and do not reinvest the proceeds thereof or use such proceeds to repay certain debt, we will be required to use the proceeds of such asset sales to make an offer to purchase the notes at a price equal to 100% of the principal amount of the notes, plus accrued and unpaid interest. Optional redemption. We may redeem the 3.50% Notes at the redemption prices noted in the indenture. Prior to June 15, 2024, we may redeem the 3.75% Notes at a redemption price equal to 100% of the principal thereof, plus an applicable make-whole premium, and any accrued and unpaid interest. In addition, we may redeem up to 40% of the Notes before June 15, 2024, with net cash proceeds from certain equity offerings at a redemption price equal to 103.750% of the principal thereof, plus accrued and unpaid interest. We may redeem the 3.75% Notes on or after June 15, 2024, at the redemption prices specified in the indenture. Australia Loan Agreements Penske Australia previously was party to two facilities with Volkswagen Financial Services Australia Pty Limited representing a three-year AU $35.4 million capital loan and a one-year AU $50.0 million working capital loan. Both facilities were subject to annual extensions. These agreements each provided the lender with a secured interest in all assets of these businesses. The loans bore interest at the Australian Bank Bill Swap Rate ("BBSW") 30-day Bill Rate plus 3.0%. We terminated both of these facilities on November 18, 2022, and entered into a new AU $75.0 million credit agreement between Penske Australia and Daimler Truck Financial Services Australia Pty Ltd (the "Australia credit agreement"). The Australia credit agreement provides the lender with a secured interest in all assets of these businesses, is terminable with six months' notice, and carries an interest rate of Australian BBSW 30-day Bill Rate plus 2.29%. As of March 31, 2023, we had AU $39.2 million ($26.2 million) outstanding borrowings under the Australia credit agreement. Mortgage Facilities We are party to mortgages that bear interest at defined rates and require monthly principal and interest payments. We also have a revolving mortgage facility through Toyota Motor Credit Corporation with a maximum borrowing capacity of $300.0 million contingent on property values and a borrowing capacity as of March 31, 2023, of $251.8 million. The facility bears interest at LIBOR plus 1.50% and expires in December 2025. As of March 31, 2023, we had $208.8 million outstanding borrowings under this mortgage facility. Our mortgage facilities also contain typical events of default, including non-payment of obligations, cross-defaults to our other material indebtedness, certain change of control events, and the loss or sale of certain dealerships operated at the properties. Substantially all of the buildings and improvements on the properties financed pursuant to the mortgage facilities are subject to security interests granted to the lender. As of March 31, 2023, we owed $590.9 million of principal under our mortgage facilities. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities We are involved in litigation which may relate to claims brought by governmental authorities, issues with customers, and employment related matters, including class action claims and purported class action claims. As of March 31, 2023, we were not party to any legal proceedings, including class action lawsuits that, individually or in the aggregate, are reasonably expected to have a material adverse effect on our results of operations, financial condition, or cash flows. However, the results of these matters cannot be predicted with certainty, and an unfavorable resolution of one or more of these matters could have a material adverse effect on our results of operations, financial condition, or cash flows. We lease land and facilities, including certain dealerships and office space. Pursuant to the leases for some of our larger facilities, we are required to comply with specified financial ratios, including a "rent coverage" ratio and a debt to EBITDA ratio, each as defined. For these leases, non-compliance with the ratios may require us to post collateral in the form of a letter of credit. A breach of the other lease covenants gives rise to certain remedies by the landlord, the most severe of which include the termination of the applicable lease and acceleration of the total rent payments due under the lease. Refer to the disclosures provided in Note 3 for further description of our leases. We have sold a number of dealerships to third parties and as a condition to certain of those sales, remain liable for the lease payments relating to the properties on which those businesses operate in the event of non-payment by the buyer. We are also party to lease agreements on properties that we no longer use in our retail operations that we have sublet to third parties. We rely on subtenants to pay the rent and maintain the property at these locations. In the event the subtenant does not perform as expected, we may not be able to recover amounts owed to us, and we could be required to fulfill these obligations. We believe we have made appropriate reserves relating to these locations. Our floor plan credit agreements with Mercedes-Benz Financial Services Australia and Mercedes-Benz Financial Services New Zealand ("MBA") provide us revolving loans for the acquisition of commercial vehicles for distribution to our retail network. These facilities include a commitment to repurchase dealer vehicles in the event the dealer's floor plan agreement with MBA is terminated. We have $26.8 million of letters of credit outstanding and $19.0 million of bank guarantees as of March 31, 2023, and have posted $21.5 million of surety bonds in the ordinary course of business. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Equity | Equity During the three months ended March 31, 2023, we repurchased 890,327 shares of our common stock for $110.2 million, or an average of $123.76 per share, under our securities repurchase program approved by our Board of Directors. In February 2023, our Board of Directors delegated to management an additional $250 million in authority to repurchase our outstanding securities, of which $214.1 million remained outstanding a s of March 31, 2023. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by component and the reclassifications out of accumulated other comprehensive income (loss) during the three months ended March 31, 2023 and 2022, respectively, attributable to Penske Automotive Group common stockholders follows: Three Months Ended March 31, 2023 Foreign Other Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2022 $ (328.1) $ (7.2) $ (335.3) Other comprehensive income (loss) before reclassifications 18.0 4.8 22.8 Amounts reclassified from accumulated other comprehensive income (loss) — net of tax — — — Net current period other comprehensive income (loss) 18.0 4.8 22.8 Balance at March 31, 2023 $ (310.1) $ (2.4) $ (312.5) Three Months Ended March 31, 2022 Foreign Other Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2021 $ (174.4) $ 5.6 $ (168.8) Other comprehensive income (loss) before reclassifications (28.1) (1.2) (29.3) Amounts reclassified from accumulated other comprehensive income (loss) — net of tax — — — Net current period other comprehensive income (loss) (28.1) (1.2) (29.3) Balance at March 31, 2022 $ (202.5) $ 4.4 $ (198.1) |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment InformationOur operations are organized by management into operating segments by line of business and geography. We have determined that we have four reportable segments as defined in generally accepted accounting principles for segment reporting: (i) Retail Automotive, consisting of our retail automotive dealership operations; (ii) Retail Commercial Truck, consisting of our retail commercial truck dealership operations in the U.S. and Canada; (iii) Other, consisting of our commercial vehicle and power systems distribution operations; and (iv) Non-Automotive Investments, consisting of our equity method investments in non-automotive operations which includes our investment in PTS and other various investments. The Retail Automotive reportable segment includes all automotive dealerships and all departments relevant to the operation of the dealerships and our retail automotive joint ventures. The individual dealership operations included in the Retail Automotive reportable segment represent six operating segments: Eastern, Central, and Western United States, Used Vehicle Dealerships United States, International, and Used Vehicle Dealerships International. These 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/or 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). Revenue and segment income for the three months ended March 31, 2023 and 2022 follows: Three Months Ended March 31, Retail Retail Commercial Other Non-Automotive Intersegment Total Revenues 2023 $ 6,299.8 $ 895.6 $ 143.6 $ — $ — $ 7,339.0 2022 6,029.2 $ 792.3 $ 153.9 $ — $ — $ 6,975.4 Segment income 2023 $ 256.7 $ 57.1 $ 12.1 $ 81.0 $ — $ 406.9 2022 309.9 $ 58.5 $ 10.5 $ 118.7 $ — $ 497.6 |
Interim Financial Statements (P
Interim Financial Statements (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated condensed financial statements of PAG have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and disclosures normally included in our annual financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") have been condensed or omitted pursuant to the SEC rules and regulations. The information presented as of March 31, 2023 and for the three months ended March 31, 2023 and 2022 is unaudited but includes all adjustments which our management believes to be necessary for the fair presentation of results for the periods presented. Results for interim periods are not necessarily indicative of results to be expected for the year. These consolidated condensed financial statements should be read in conjunction with our audited financial statements for the year ended December 31, 2022, which are included as part of our Annual Report on Form 10-K. |
Estimates | Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The accounts requiring the use of significant estimates include accounts receivable, inventories, income taxes, intangible assets, leases, and certain reserves. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Accounting standards define fair value as the price that would be received from selling an asset, or paid to transfer a liability in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date. Accounting standards establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and also establishes the following three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted market prices in markets that are not active, or model-derived valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities Our financial instruments consist of cash and cash equivalents, debt, floor plan notes payable, and forward exchange contracts used to hedge future cash flows. Other than our fixed rate debt, the carrying amount of all significant financial instruments approximates fair value due either to length of maturity, the existence of variable interest rates that approximate prevailing market rates, or as a result of mark to market accounting. |
Disposals | Disposals The results of operations for disposals are included within net income unless they meet the criteria to be classified as held for sale and treated as discontinued operations. |
Income Taxes | Income Taxes Tax regulations may require items to be included in our tax return at different times than when those items are reflected in our financial statements. Some of the differences are permanent, such as expenses that are not deductible on our tax return, and some are temporary differences, such as the timing of depreciation expense. Temporary differences create deferred tax assets and liabilities. Deferred tax assets generally represent items that will be used as a tax deduction or credit in our tax return in future years which we have already recorded in our financial statements. Deferred tax liabilities generally represent deductions taken on our tax return that have not yet been recognized as an expense in our financial statements. We establish valuation allowances for our deferred tax assets if the amount of expected future taxable income is not more likely than not to allow for the use of the deduction or credit. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This ASU provides optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued due to reference rate reform. Additionally, entities can elect to continue applying hedge accounting for hedging relationships affected by reference rate reform if certain conditions are met. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848): Scope." This ASU refines the scope of ASC 848 and clarifies some of its guidance as part of the Board's monitoring of global reference rate reform activities. The ASU permits entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, for computing variation margin settlements, and for calculating price alignment interest in connection with reference rate reform activities. In December 2022, the FASB issued ASU 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848." This ASU defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. These new standards were effective upon issuance and generally can be applied to applicable contract modifications. While many of our floorplan arrangements utilize LIBOR as a benchmark for calculating the applicable interest rate, some of our floorplan arrangements and our U.S. and U.K. credit agreements have already transitioned to utilizing an alternative benchmark rate. We are continuing to evaluate the impact of the transition from LIBOR to alternative reference interest rates. We cannot predict the effect of the potential changes to or elimination of LIBOR, the establishment and use of alternative rates or benchmarks, and the corresponding effects on our cost of capital but do not expect a significant impact on our consolidated financial position, results of operations, and cash flows. |
Interim Financial Statements (T
Interim Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of carrying values and fair values of senior subordinated notes and fixed rate mortgage facilities | A summary of our fixed rate debt is as follows: March 31, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value 3.50% senior subordinated notes due 2025 546.5 517.5 546.2 $ 508.7 3.75% senior subordinated notes due 2029 495.2 428.0 495.1 404.2 Mortgage facilities (1) 590.9 564.5 494.3 462.1 _____________________ (1) In addition to fixed rate debt, our mortgage facilities also include a revolving mortgage facility through Toyota Motor Credit Corporation that bears interest at a variable rate based on LIBOR. The fair value equals the carrying value. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenues | |
Schedule of accounts receivable and unearned revenues | The following table summarizes our accounts receivable and unearned revenues as of March 31, 2023, and December 31, 2022: March 31, December 31, Accounts receivable Contracts in transit $ 246.9 $ 281.7 Vehicle receivables 263.6 235.1 Manufacturer receivables 193.3 178.9 Trade receivables 198.7 191.1 Accrued expenses Unearned revenues $ 280.6 $ 291.7 |
Retail automotive dealership | |
Revenues | |
Schedule of disaggregation of revenues | The following tables disaggregate our retail automotive segment revenue by product type and geographic location for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, Retail Automotive Dealership Revenue 2023 2022 New vehicle $ 2,721.3 $ 2,445.5 Used vehicle 2,297.1 2,422.9 Finance and insurance, net 206.8 217.3 Service and parts 683.0 586.2 Fleet and wholesale 391.6 357.3 Total retail automotive dealership revenue $ 6,299.8 $ 6,029.2 Three Months Ended March 31, Retail Automotive Dealership Revenue 2023 2022 U.S. $ 3,378.2 $ 3,343.6 U.K. 2,472.4 2,262.9 Germany, Italy, and Japan 449.2 422.7 Total retail automotive dealership revenue $ 6,299.8 $ 6,029.2 |
Retail commercial truck dealership | |
Revenues | |
Schedule of disaggregation of revenues | The following table disaggregates our retail commercial truck segment revenue by product type for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, Retail Commercial Truck Dealership Revenue 2023 2022 New truck $ 600.2 $ 471.7 Used truck 49.5 100.3 Finance and insurance, net 5.0 6.4 Service and parts 228.0 197.0 Other 12.9 16.9 Total retail commercial truck dealership revenue $ 895.6 $ 792.3 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Summary of net operating lease cost | The following table summarizes our net operating lease cost during the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 Lease Cost Operating lease cost (1) $ 64.4 $ 63.4 Sublease income (4.2) (5.1) Total lease cost $ 60.2 $ 58.3 _________________ (1) Includes short-term leases and variable lease costs, which are immaterial. The following table summarizes supplemental cash flow information related to our operating leases: Three Months Ended Three Months Ended Other Information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 64.0 $ 62.0 Right-of-use assets modified or obtained in exchange for operating lease liabilities, net $ (23.2) $ 12.9 Supplemental balance sheet information related to the weighted average remaining lease term and discount rate of our leases is as follows: March 31, 2023 December 31, 2022 Lease Term and Discount Rate Weighted-average remaining lease term - operating leases 25 years 25 years Weighted-average discount rate - operating leases 6.5 % 6.5 % |
Schedule of maturity of lease liabilities | The following table summarizes the maturity of our lease liabilities on an undiscounted cash flow basis and a reconciliation to the operating lease liabilities recognized on our consolidated condensed balance sheet as of March 31, 2023: Maturity of Lease Liabilities March 31, 2023 2023 (1) $ 241.9 2024 239.0 2025 234.9 2026 227.8 2027 221.1 2028 211.5 2029 and thereafter 3,860.7 Total future minimum lease payments $ 5,236.9 Less: Imputed interest (2,844.1) Present value of future minimum lease payments $ 2,392.8 Current operating lease liabilities (2) $ 90.3 Long-term operating lease liabilities 2,302.5 Total operating lease liabilities $ 2,392.8 ____________________ (1) Excludes the three months ended March 31, 2023. (2) Included within "Accrued expenses and other current liabilities" on Consolidated Condensed Balance Sheet as of March 31, 2023. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: March 31, December 31, Retail automotive dealership new vehicles $ 1,429.1 $ 1,326.5 Retail automotive dealership used vehicles 1,285.5 1,279.6 Retail automotive parts, accessories, and other 147.5 145.6 Retail commercial truck dealership vehicles and parts 483.3 506.2 Commercial vehicle distribution vehicles, parts, and engines 285.0 251.2 Total inventories $ 3,630.4 $ 3,509.1 |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of the aggregate consideration paid and the aggregate amounts of the assets acquired and liabilities assumed | The following table summarizes the aggregate consideration paid and the aggregate amounts of the assets acquired and liabilities assumed for the three months ended March 31, 2022: March 31, 2022 Accounts receivable $ — Inventories 21.9 Other current assets 0.1 Property and equipment 10.0 Indefinite-lived intangibles 64.6 Other noncurrent assets — Current liabilities (2.9) Noncurrent liabilities (0.1) Total cash used in acquisitions $ 93.6 |
Summary of unaudited consolidated pro forma results of operations | Our following unaudited consolidated pro forma results of operations for the three months ended March 31, 2022, give effect to acquisitions consummated during 2022 as if they had occurred effective at the beginning of the period: Three Months Ended March 31, 2022 Revenues $ 7,223.9 Net income attributable to Penske Automotive Group common stockholders 372.1 Net income per diluted common share $ 4.82 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of the changes in the carrying amount of goodwill and other indefinite-lived intangible assets | Following is a summary of the changes in the carrying amount of goodwill and other indefinite-lived intangible assets during the three months ended March 31, 2023: Goodwill Other Indefinite- Balance, January 1, 2023 $ 2,154.7 $ 690.9 Additions — — Disposals — — Foreign currency translation 7.8 1.4 Balance, March 31, 2023 $ 2,162.5 $ 692.3 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of number of shares used in calculation of basic and diluted earning per share | A reconciliation of the number of shares used in the calculation of basic and diluted earnings per share for the three months ended March 31, 2023 and 2022 follows: Three Months Ended 2023 2022 Weighted average number of common shares outstanding 69,201,232 77,224,165 Effect of non-participatory equity compensation 17,629 25,000 Weighted average number of common shares outstanding, including effect of dilutive securities 69,218,861 77,249,165 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consisted of the following: March 31, December 31, U.S. credit agreement — revolving credit line $ — $ — U.K. credit agreement — revolving credit line — 24.2 3.50% senior subordinated notes due 2025 546.5 546.2 3.75% senior subordinated notes due 2029 495.2 495.1 Australia credit agreement 26.2 21.6 Mortgage facilities 590.9 494.3 Other 42.5 40.7 Total long-term debt 1,701.3 1,622.1 Less: current portion (81.5) (75.2) Net long-term debt $ 1,619.8 $ 1,546.9 |
Schedule of senior subordinated notes issuances | We have issued the following senior subordinated notes: Description Maturity Date Interest Payment Dates Principal Amount 3.50% Notes September 1, 2025 February 15, August 15 $550 million 3.75% Notes June 15, 2029 June 15, December 15 $500 million |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of the changes in accumulated other comprehensive income/(loss) by component and the reclassifications out of accumulated other comprehensive income/(loss) attributable to the entity's common stockholders | Changes in accumulated other comprehensive income (loss) by component and the reclassifications out of accumulated other comprehensive income (loss) during the three months ended March 31, 2023 and 2022, respectively, attributable to Penske Automotive Group common stockholders follows: Three Months Ended March 31, 2023 Foreign Other Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2022 $ (328.1) $ (7.2) $ (335.3) Other comprehensive income (loss) before reclassifications 18.0 4.8 22.8 Amounts reclassified from accumulated other comprehensive income (loss) — net of tax — — — Net current period other comprehensive income (loss) 18.0 4.8 22.8 Balance at March 31, 2023 $ (310.1) $ (2.4) $ (312.5) Three Months Ended March 31, 2022 Foreign Other Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2021 $ (174.4) $ 5.6 $ (168.8) Other comprehensive income (loss) before reclassifications (28.1) (1.2) (29.3) Amounts reclassified from accumulated other comprehensive income (loss) — net of tax — — — Net current period other comprehensive income (loss) (28.1) (1.2) (29.3) Balance at March 31, 2022 $ (202.5) $ 4.4 $ (198.1) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Revenues and segment income by reportable segment | Revenue and segment income for the three months ended March 31, 2023 and 2022 follows: Three Months Ended March 31, Retail Retail Commercial Other Non-Automotive Intersegment Total Revenues 2023 $ 6,299.8 $ 895.6 $ 143.6 $ — $ — $ 7,339.0 2022 6,029.2 $ 792.3 $ 153.9 $ — $ — $ 6,975.4 Segment income 2023 $ 256.7 $ 57.1 $ 12.1 $ 81.0 $ — $ 406.9 2022 309.9 $ 58.5 $ 10.5 $ 118.7 $ — $ 497.6 |
Interim Financial Statements -
Interim Financial Statements - Business Overview (Details) vehicle in Thousands, employee in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 USD ($) vehicle dealership brand franchise state location employee | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Interim Financial Statements [Line Items] | |||
Number of PAG employees | employee | 27 | ||
Number of PTL employees | employee | 43 | ||
Revenues | $ | $ 7,339 | $ 6,975.4 | |
Minimum number of vehicle brands offered | brand | 35 | ||
U.S. and Puerto Rico | Retail automotive dealership revenues | Geographic | |||
Interim Financial Statements [Line Items] | |||
Percentage of total | 54% | ||
Outside the U.S. | Retail automotive dealership revenues | Geographic | |||
Interim Financial Statements [Line Items] | |||
Percentage of total | 46% | ||
U.S. | |||
Interim Financial Statements [Line Items] | |||
Number of franchises disposed | 4 | ||
Retail automotive dealership | |||
Interim Financial Statements [Line Items] | |||
Revenues | $ | $ 6,299.8 | 6,029.2 | $ 23,700 |
Total number of owned and operated franchises | 333 | ||
Retail automotive dealership | Retail automotive dealership revenues | Premium brands | |||
Interim Financial Statements [Line Items] | |||
Percentage of total | 72% | ||
Retail automotive dealership | Outside the U.S. | |||
Interim Financial Statements [Line Items] | |||
Number of owned and operated franchises outside US | 185 | ||
Retail automotive dealership | U.S. and U.K. | |||
Interim Financial Statements [Line Items] | |||
Number of stand-alone used vehicle dealerships operated in United States and United Kingdom | dealership | 20 | ||
Retail automotive dealership | U.S. | |||
Interim Financial Statements [Line Items] | |||
Revenues | $ | $ 3,378.2 | 3,343.6 | |
Number of owned and operated franchises in US | 148 | ||
Number of retail locations operated | dealership | 7 | ||
Number of franchises disposed | 3 | ||
Retail automotive dealership | U.K. | |||
Interim Financial Statements [Line Items] | |||
Revenues | $ | $ 2,472.4 | 2,262.9 | |
Number of retail locations operated | dealership | 13 | ||
CarShop Satellite | U.S. | |||
Interim Financial Statements [Line Items] | |||
Number of franchises disposed | 1 | ||
Retail commercial truck dealership | |||
Interim Financial Statements [Line Items] | |||
Revenues | $ | $ 895.6 | $ 792.3 | |
Number of operating locations | location | 39 | ||
Retail commercial truck dealership | U.S. and Ontario, Canada | |||
Interim Financial Statements [Line Items] | |||
Number of dealerships | state | 9 | ||
Penske Truck Leasing Co L P | |||
Interim Financial Statements [Line Items] | |||
Number of vehicles in fleet | vehicle | 419 | ||
Penske Truck Leasing Co L P | Penske Corporation | |||
Interim Financial Statements [Line Items] | |||
Penske transportation solutions, ownership percentage | 41.10% | ||
Penske Truck Leasing Co L P | Mitsui and Co | |||
Interim Financial Statements [Line Items] | |||
Penske transportation solutions, ownership percentage | 30% | ||
Penske Truck Leasing Co L P | |||
Interim Financial Statements [Line Items] | |||
Penske transportation solutions, ownership percentage | 28.90% |
Interim Financial Statements _2
Interim Financial Statements - Fair Value, Assets Held For Sale, Discontinued Operations (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Carrying Value | $ 1,701.3 | $ 1,622.1 |
3.50% senior subordinated notes due 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.50% | |
Carrying Value | $ 546.5 | 546.2 |
Fair Value | $ 517.5 | 508.7 |
3.75% senior subordinated notes due 2029 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.75% | |
Carrying Value | $ 495.2 | 495.1 |
Fair Value | 428 | 404.2 |
Mortgage facilities | ||
Debt Instrument [Line Items] | ||
Carrying Value | 590.9 | 494.3 |
Fair Value | $ 564.5 | $ 462.1 |
Revenues - Other Disclosures (D
Revenues - Other Disclosures (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Revenues | |||
Total revenues | $ 7,339 | $ 6,975.4 | |
Commercial vehicle distribution and other | |||
Revenues | |||
Total revenues | $ 143.6 | 153.9 | |
Vehicle Sales | Retail Automotive and Retail Commercial Truck Dealership | |||
Revenues | |||
Payment period | 30 days | ||
Service and parts | Retail Automotive and Retail Commercial Truck Dealership | |||
Revenues | |||
Payment period | 30 days | ||
Finance and insurance, net | Retail Automotive and Retail Commercial Truck Dealership | |||
Revenues | |||
Payment period | 30 days | ||
Aggregate reserves relating to chargeback activity | $ 39.7 | $ 38.4 | |
Penske Australia | Commercial vehicle distribution and other | |||
Revenues | |||
Payment period | 30 days | ||
Penske Australia | Service and parts | Commercial vehicle distribution and other | |||
Revenues | |||
Total revenues | $ 61.3 | $ 55.1 |
Revenues - Retail Automotive De
Revenues - Retail Automotive Dealership (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Revenues | |||
Total revenues | $ 7,339 | $ 6,975.4 | |
Retail automotive dealership | |||
Revenues | |||
Total revenues | 6,299.8 | 6,029.2 | $ 23,700 |
Retail automotive dealership | U.S. | |||
Revenues | |||
Total revenues | 3,378.2 | 3,343.6 | |
Retail automotive dealership | U.K. | |||
Revenues | |||
Total revenues | 2,472.4 | 2,262.9 | |
Retail automotive dealership | Germany, Italy, and Japan | |||
Revenues | |||
Total revenues | 449.2 | 422.7 | |
New vehicle | Retail automotive dealership | |||
Revenues | |||
Total revenues | 2,721.3 | 2,445.5 | |
Used vehicle | Retail automotive dealership | |||
Revenues | |||
Total revenues | 2,297.1 | 2,422.9 | |
Finance and insurance, net | Retail automotive dealership | |||
Revenues | |||
Total revenues | 206.8 | 217.3 | |
Service and parts | Retail automotive dealership | |||
Revenues | |||
Total revenues | 683 | 586.2 | |
Fleet and wholesale | Retail automotive dealership | |||
Revenues | |||
Total revenues | $ 391.6 | $ 357.3 |
Revenues - Retail Commercial Tr
Revenues - Retail Commercial Truck Dealership (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues | ||
Total revenues | $ 7,339 | $ 6,975.4 |
Retail commercial truck dealership | ||
Revenues | ||
Total revenues | 895.6 | 792.3 |
New truck | Retail commercial truck dealership | ||
Revenues | ||
Total revenues | 600.2 | 471.7 |
Used truck | Retail commercial truck dealership | ||
Revenues | ||
Total revenues | 49.5 | 100.3 |
Finance and insurance, net | Retail commercial truck dealership | ||
Revenues | ||
Total revenues | 5 | 6.4 |
Service and parts | Retail commercial truck dealership | ||
Revenues | ||
Total revenues | 228 | 197 |
Other | Retail commercial truck dealership | ||
Revenues | ||
Total revenues | $ 12.9 | $ 16.9 |
Revenues - Commercial Vehicle D
Revenues - Commercial Vehicle Distribution (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues | ||
Total revenues | $ 7,339 | $ 6,975.4 |
Commercial vehicle distribution and other | ||
Revenues | ||
Total revenues | $ 143.6 | $ 153.9 |
Revenues - Contract Balances (D
Revenues - Contract Balances (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Contract Balances | ||
Accounts receivable | $ 920.2 | $ 906.7 |
Unearned revenues | 280.6 | 291.7 |
Unearned revenue recognized as revenue | 118.7 | |
Contracts in transit | ||
Contract Balances | ||
Accounts receivable | 246.9 | 281.7 |
Vehicle receivables | ||
Contract Balances | ||
Accounts receivable | 263.6 | 235.1 |
Manufacturer receivables | ||
Contract Balances | ||
Accounts receivable | 193.3 | 178.9 |
Trade receivables | ||
Contract Balances | ||
Accounts receivable | $ 198.7 | $ 191.1 |
Leases - Other (Details)
Leases - Other (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases | ||
Total undiscounted rent obligations | $ 5,236.9 | |
Sublease rent received | $ 4.2 | $ 5.1 |
Property leases | Minimum | ||
Leases | ||
Initial lease period (in years) | 5 years | |
Property leases | Maximum | ||
Leases | ||
Initial lease period (in years) | 20 years | |
Equipment leases | Maximum | ||
Leases | ||
Initial lease period (in years) | 5 years |
Leases - Net operating lease co
Leases - Net operating lease cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Lease Cost | ||
Operating lease cost | $ 64.4 | $ 63.4 |
Sublease income | (4.2) | (5.1) |
Total lease cost | $ 60.2 | $ 58.3 |
Leases - Cash flow information,
Leases - Cash flow information, weighted average remaining term and discount rate (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash flows from operating leases | $ 64 | $ 62 | |
Right-of-use assets disposed in exchange for operating lease liabilities | $ (23.2) | $ 12.9 | |
Weighted-average remaining lease term - operating leases | 25 years | 25 years | |
Weighted-average discount rate - operating leases | 6.50% | 6.50% |
Leases - Maturity of lease liab
Leases - Maturity of lease liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Maturity of Lease Liabilities | ||
2023 | $ 241.9 | |
2024 | 239 | |
2025 | 234.9 | |
2026 | 227.8 | |
2027 | 221.1 | |
2028 | 211.5 | |
2029 and thereafter | 3,860.7 | |
Total future minimum lease payments | 5,236.9 | |
Less: Imputed interest | $ (2,844.1) | |
Current operating lease liabilities | Accrued expenses and other current liabilities | |
Current operating lease liabilities | $ 90.3 | |
Long-term operating lease liabilities | 2,302.5 | $ 2,335.7 |
Total operating lease liabilities | $ 2,392.8 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory [Line Items] | ||
Total inventories | $ 3,630.4 | $ 3,509.1 |
Retail automotive dealership new vehicles | ||
Inventory [Line Items] | ||
Total inventories | 1,429.1 | 1,326.5 |
Retail automotive dealership used vehicles | ||
Inventory [Line Items] | ||
Total inventories | 1,285.5 | 1,279.6 |
Retail automotive parts, accessories, and other | ||
Inventory [Line Items] | ||
Total inventories | 147.5 | 145.6 |
Retail commercial truck dealership vehicles and parts | ||
Inventory [Line Items] | ||
Total inventories | 483.3 | 506.2 |
Commercial vehicle distribution vehicles, parts, and engines | ||
Inventory [Line Items] | ||
Total inventories | $ 285 | $ 251.2 |
Inventory (Narrative) (Details)
Inventory (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | ||
Interest credits and advertising assistance | $ 13.3 | $ 15.2 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2022 dealership | |
TEAM Truck Centres | Retail Commercial Truck Dealership | |
Business Acquisition [Line Items] | |
Number of full service dealerships acquired | 4 |
Business Combinations - Conside
Business Combinations - Consideration Paid and Assets Acquired and Liabilities Assumed (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022 USD ($) | |
Summary of the aggregate consideration paid and the aggregate amounts of the assets acquired and liabilities assumed | |
Accounts receivable | $ 0 |
Inventories | 21.9 |
Other current assets | 0.1 |
Property and equipment | 10 |
Indefinite-lived intangibles | 64.6 |
Other noncurrent assets | 0 |
Current liabilities | (2.9) |
Noncurrent liabilities | (0.1) |
Total cash used in acquisitions | $ 93.6 |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2022 USD ($) $ / shares | |
Summary of unaudited consolidated pro forma results of operations | |
Revenues | $ 7,223.9 |
Net income attributable to Penske Automotive Group common stockholders | $ 372.1 |
Net income per diluted common share (in dollars per share) | $ / shares | $ 4.82 |
Intangible Assets - Summary of
Intangible Assets - Summary of Changes (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Goodwill | |
Beginning balance | $ 2,154.7 |
Additions | 0 |
Disposals | 0 |
Foreign currency translation | 7.8 |
Ending balance | 2,162.5 |
Other Indefinite- Lived Intangible Assets | |
Beginning balance | 690.9 |
Additions | 0 |
Disposals | 0 |
Foreign currency translation | 1.4 |
Ending balance | $ 692.3 |
Intangible Assets - Information
Intangible Assets - Information by Segment (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Goodwill [Line Items] | ||
Goodwill | $ 2,162.5 | $ 2,154.7 |
Retail automotive dealership | ||
Goodwill [Line Items] | ||
Goodwill | 1,626.5 | |
Retail commercial truck dealership | ||
Goodwill [Line Items] | ||
Goodwill | 462.4 | |
Other | ||
Goodwill [Line Items] | ||
Goodwill | 73.6 | |
Non-Automotive Investments | ||
Goodwill [Line Items] | ||
Goodwill | $ 0 |
Vehicle Financing (Details)
Vehicle Financing (Details) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Short-Term Debt [Abstract] | ||
Maturity period of floor plan arrangements outside the U.S. if not payable on demand | 90 days | |
Weighted average interest rate on floor plan borrowings (as a percent) | 4% | 1.20% |
Earnings Per Share - (Details)
Earnings Per Share - (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Reconciliation of number of shares used in calculation of basic and diluted earnings per share | ||
Weighted average number of common shares outstanding (in shares) | 69,201,232 | 77,224,165 |
Effect of non-participatory equity compensation (in shares) | 17,629 | 25,000 |
Weighted average number of common shares outstanding, including effect of dilutive securities (in shares) | 69,218,861 | 77,249,165 |
Long-Term Debt - Summary (Detai
Long-Term Debt - Summary (Details) £ in Millions, $ in Millions, $ in Millions | Mar. 31, 2023 USD ($) | Mar. 31, 2023 GBP (£) | Mar. 31, 2023 AUD ($) | Dec. 31, 2022 USD ($) |
Long Term Debt | ||||
Total long-term debt | $ 1,701.3 | $ 1,622.1 | ||
Less: current portion | (81.5) | (75.2) | ||
Net long-term debt | 1,619.8 | 1,546.9 | ||
U.S. credit agreement — revolving credit line | ||||
Long Term Debt | ||||
Total long-term debt | 0 | 0 | ||
U.K. credit agreement — revolving credit line | ||||
Long Term Debt | ||||
Total long-term debt | 0 | £ 0 | 24.2 | |
3.50% senior subordinated notes due 2025 | ||||
Long Term Debt | ||||
Total long-term debt | $ 546.5 | 546.2 | ||
Interest rate | 3.50% | 3.50% | 3.50% | |
3.75% senior subordinated notes due 2029 | ||||
Long Term Debt | ||||
Total long-term debt | $ 495.2 | 495.1 | ||
Interest rate | 3.75% | 3.75% | 3.75% | |
Australia credit agreement | ||||
Long Term Debt | ||||
Total long-term debt | $ 26.2 | $ 75 | 21.6 | |
Mortgage facilities | ||||
Long Term Debt | ||||
Total long-term debt | 590.9 | 494.3 | ||
Other | ||||
Long Term Debt | ||||
Total long-term debt | $ 42.5 | $ 40.7 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) £ in Millions, $ in Millions, $ in Millions | 3 Months Ended | |||||
Apr. 20, 2023 USD ($) | Mar. 31, 2023 USD ($) facility | Mar. 31, 2023 GBP (£) | Mar. 31, 2023 AUD ($) | Jan. 31, 2023 GBP (£) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||
Outstanding debt | $ 1,701.3 | $ 1,622.1 | ||||
U.S. credit agreement — revolving credit line | ||||||
Debt Instrument [Line Items] | ||||||
Maximum credit available | 800 | |||||
Outstanding debt | 0 | 0 | ||||
U.S. credit agreement — revolving credit line | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Maximum credit available | $ 1,200 | |||||
Maximum amount available for letters of credit | 75 | |||||
Future borrowings available for foreign acquisitions | $ 400 | |||||
U.S. credit agreement — revolving credit line | Secured Overnight Financing Rate (SOFR) | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit basis spread on variable rate (as a percent) | 1.50% | |||||
U.K. credit agreement — revolving credit line | ||||||
Debt Instrument [Line Items] | ||||||
Maximum credit available | £ | £ 200 | £ 150 | ||||
Outstanding debt | $ 0 | 0 | 24.2 | |||
Additional facility capacity under accordion feature | £ | £ 100 | |||||
U.K. credit agreement — revolving credit line | Sterling Overnight Index Average (SONIA) | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit basis spread on variable rate (as a percent) | 1.10% | |||||
U.K. credit agreement — revolving credit line | Sterling Overnight Index Average (SONIA) | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit basis spread on variable rate (as a percent) | 2.10% | |||||
Senior Subordinated Notes | ||||||
Debt Instrument [Line Items] | ||||||
Domestic Subsidiaries ownership guaranteeing obligations (as a percent) | 100% | 100% | 100% | |||
Change of control, redemption price as a percentage of principal | 101% | |||||
Sale of assets, redemption price as percentage of principal | 100% | |||||
3.50% senior subordinated notes due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding debt | $ 546.5 | 546.2 | ||||
Interest rate | 3.50% | 3.50% | 3.50% | |||
3.75% senior subordinated notes due 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding debt | $ 495.2 | 495.1 | ||||
Interest rate | 3.75% | 3.75% | 3.75% | |||
3.75% senior subordinated notes due 2029 | Debt Redemption, Prior To June 12, 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price percentage | 100% | |||||
3.75% senior subordinated notes due 2029 | Debt Instrument Redemption Period Prior To May2021 | ||||||
Debt Instrument [Line Items] | ||||||
Specified equity offerings, percentage of debt which may be redeemed | 103.75% | |||||
3.75% senior subordinated notes due 2029 | Minimum | Debt Instrument Redemption Period Prior To September 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price percentage | 40% | |||||
Australia capital loan agreement | ||||||
Debt Instrument [Line Items] | ||||||
Maximum credit available | $ 35.4 | |||||
Number of facilities | facility | 2 | |||||
Debt instrument, term | 3 years | |||||
Australia capital loan agreement | Australian BBSW 30-Day Bill Rate | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit basis spread on variable rate (as a percent) | 3% | |||||
Base rate of interest on loans | 30-day Bill Rate | |||||
Australia working capital loan agreement | ||||||
Debt Instrument [Line Items] | ||||||
Maximum credit available | 50 | |||||
Outstanding debt | 39.2 | |||||
Debt instrument, term | 1 year | |||||
Australia working capital loan agreement | Australian BBSW 30-Day Bill Rate | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit basis spread on variable rate (as a percent) | 3% | |||||
Base rate of interest on loans | 30-day Bill Rate | |||||
Australia credit agreement | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit basis spread on variable rate (as a percent) | 2.29% | |||||
Outstanding debt | $ 26.2 | $ 75 | 21.6 | |||
Revolving Mortgage Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum credit available | 300 | |||||
Outstanding debt | 208.8 | |||||
Current borrowing capacity | $ 251.8 | |||||
Revolving Mortgage Facility | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit basis spread on variable rate (as a percent) | 1.50% | |||||
Mortgage facilities | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding debt | $ 590.9 | $ 494.3 |
Long-Term Debt - Summary of Sen
Long-Term Debt - Summary of Senior Subordinated Notes (Details) $ in Millions | Mar. 31, 2023 USD ($) |
3.50% senior subordinated notes due 2025 | |
Debt Instrument [Line Items] | |
Interest rate | 3.50% |
Senior unsecured notes issued | $ 550 |
3.75% senior subordinated notes due 2029 | |
Debt Instrument [Line Items] | |
Interest rate | 3.75% |
Senior unsecured notes issued | $ 500 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Letters of credit outstanding | $ 26.8 |
Bank guarantees | 19 |
Surety bonds posted | $ 21.5 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Feb. 28, 2023 | |
Securities Repurchase Program | |||
Repurchase of common stock | $ 111.3 | $ 119.2 | |
Securities Repurchase Program | |||
Securities Repurchase Program | |||
Repurchased shares (in shares) | 890,327 | ||
Repurchase of common stock | $ 110.2 | ||
Repurchased shares, average price (in dollars per share) | $ 123.76 | ||
Amount authorized to be repurchased | $ 250 | ||
Remaining amount authorized to be repurchased | $ 214.1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 4,174.8 | $ 4,095 |
Other comprehensive income (loss) before reclassifications | 22.8 | (29.3) |
Amounts reclassified from accumulated other comprehensive income (loss) - net of tax provision | 0 | 0 |
Net current period other comprehensive income (loss) | 22.8 | (29.3) |
Ending balance | 4,351.4 | 4,164.4 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (335.3) | (168.8) |
Ending balance | (312.5) | (198.1) |
Foreign Currency Translation | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (328.1) | (174.4) |
Other comprehensive income (loss) before reclassifications | 18 | (28.1) |
Amounts reclassified from accumulated other comprehensive income (loss) - net of tax provision | 0 | 0 |
Net current period other comprehensive income (loss) | 18 | (28.1) |
Ending balance | (310.1) | (202.5) |
Other | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (7.2) | 5.6 |
Other comprehensive income (loss) before reclassifications | 4.8 | (1.2) |
Amounts reclassified from accumulated other comprehensive income (loss) - net of tax provision | 0 | 0 |
Net current period other comprehensive income (loss) | 4.8 | (1.2) |
Ending balance | $ (2.4) | $ 4.4 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 USD ($) segment | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Segment Reporting Information | |||
Number of reportable segments | segment | 4 | ||
Revenues and segment income by reportable segment | |||
Revenues | $ 7,339 | $ 6,975.4 | |
Segment income | 406.9 | 497.6 | |
Intersegment Elimination | |||
Revenues and segment income by reportable segment | |||
Revenues | 0 | 0 | |
Segment income | $ 0 | 0 | |
Retail automotive dealership | |||
Segment Reporting Information | |||
Number of reportable segments | segment | 1 | ||
Number of operating segments | segment | 6 | ||
Revenues and segment income by reportable segment | |||
Revenues | $ 6,299.8 | 6,029.2 | $ 23,700 |
Retail automotive dealership | Operating segments | |||
Revenues and segment income by reportable segment | |||
Revenues | 6,299.8 | 6,029.2 | |
Segment income | 256.7 | 309.9 | |
Retail commercial truck dealership | |||
Revenues and segment income by reportable segment | |||
Revenues | 895.6 | 792.3 | |
Retail commercial truck dealership | Operating segments | |||
Revenues and segment income by reportable segment | |||
Revenues | 895.6 | 792.3 | |
Segment income | 57.1 | 58.5 | |
Other | Operating segments | |||
Revenues and segment income by reportable segment | |||
Revenues | 143.6 | 153.9 | |
Segment income | 12.1 | 10.5 | |
Non-Automotive Investments | Operating segments | |||
Revenues and segment income by reportable segment | |||
Revenues | 0 | 0 | |
Segment income | $ 81 | $ 118.7 |
Uncategorized Items - pag-20230
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-02 [Member] |