Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 13, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | Voting Common Stock, par value $0.0001 per share | ||
Trading Symbol | PAG | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,059,947,330 | ||
Entity Common Stock, Shares Outstanding | 66,990,047 | ||
Documents Incorporated by Reference | Documents Incorporated by Reference Certain portions, as expressly described in this report, of the registrant's proxy statement for the 2024 Annual Meeting of the Stockholders to be held May 9, 2024, are incorporated by reference into Part III, Items 10-14. | ||
Entity Central Index Key | 0001019849 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 34 |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Detroit, Michigan |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 96.4 | $ 106.5 |
Accounts receivable, net of allowance for doubtful accounts of $6.8 and $6.6 | 1,114.6 | 906.7 |
Inventories | 4,293.1 | 3,509.1 |
Other current assets | 175.6 | 141.9 |
Total current assets | 5,679.7 | 4,664.2 |
Property and equipment, net | 2,765.2 | 2,496.5 |
Operating lease right-of-use assets | 2,405.5 | 2,416.1 |
Goodwill | 2,234.9 | 2,154.7 |
Other indefinite-lived intangible assets | 748.2 | 690.9 |
Equity method investments | 1,774.9 | 1,636.9 |
Other long-term assets | 63.1 | 55.3 |
Total assets | 15,671.5 | 14,114.6 |
LIABILITIES AND EQUITY | ||
Floor plan notes payable | 2,255.6 | 1,565.7 |
Floor plan notes payable — non-trade | 1,515.9 | 1,430.6 |
Accounts payable | 866.9 | 853.5 |
Accrued expenses and other current liabilities | 809.8 | 788.1 |
Current portion of long-term debt | 209.7 | 75.2 |
Total current liabilities | 5,657.9 | 4,713.1 |
Long-term debt | 1,419.5 | 1,546.9 |
Long-term operating lease liabilities | 2,336 | 2,335.7 |
Deferred tax liabilities | 1,231.7 | 1,121 |
Other long-term liabilities | 270.8 | 223.1 |
Total liabilities | 10,915.9 | 9,939.8 |
Commitments and contingent liabilities (Note 11) | ||
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 | 4,990.3 | 4,483.3 |
Accumulated other comprehensive income (loss) | (264.1) | (335.3) |
Total Penske Automotive Group stockholders' equity | 4,726.2 | 4,148 |
Non-controlling interest | 29.4 | 26.8 |
Total equity | 4,755.6 | 4,174.8 |
Total liabilities and equity | 15,671.5 | 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 BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts receivable, allowance for doubtful accounts | $ 6.8 | $ 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 outstanding (in shares) | 67,111,181 | 69,681,891 |
Common stock, shares issued (in shares) | 67,111,181 | 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 outstanding (in shares) | 0 | 0 |
Common stock, shares issued (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 outstanding (in shares) | 0 | 0 |
Common stock, shares issued (in shares) | 0 | 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue: | |||
Total revenues | $ 29,527.4 | $ 27,814.8 | $ 25,554.7 |
Cost of sales: | |||
Total cost of sales | 24,593.6 | 22,976 | 21,113.9 |
Gross profit | 4,933.8 | 4,838.8 | 4,440.8 |
Selling, general and administrative expenses | 3,400.6 | 3,223.7 | 2,962.9 |
Impairment charges | 40.7 | 0 | 0 |
Depreciation | 141 | 127.3 | 121.5 |
Operating income | 1,351.5 | 1,487.8 | 1,356.4 |
Floor plan interest expense | (133.1) | (52.4) | (26.2) |
Other interest expense | (92.6) | (70.4) | (68.6) |
Debt redemption costs | 0 | 0 | (17) |
Loss on investment | 0 | 0 | (11.4) |
Equity in earnings of affiliates | 293.7 | 494.2 | 374.5 |
Income from continuing operations before income taxes | 1,419.5 | 1,859.2 | 1,607.7 |
Income taxes | (360.9) | (473) | (416.3) |
Income from continuing operations | 1,058.6 | 1,386.2 | 1,191.4 |
Income from discontinued operations, net of tax | 0 | 0 | 1.3 |
Net income | 1,058.6 | 1,386.2 | 1,192.7 |
Less: Income attributable to non-controlling interests | 5.4 | 6.2 | 4.9 |
Net income attributable to Penske Automotive Group common stockholders | $ 1,053.2 | $ 1,380 | $ 1,187.8 |
Basic earnings per share attributable to Penske Automotive Group common stockholders: | |||
Continuing operations (in dollars per share) | $ 15.50 | $ 18.55 | $ 14.88 |
Discontinued operations (in dollars per share) | 0 | 0 | 0.01 |
Net income attributable to Penske Automotive Group common stockholders (in dollars per share) | $ 15.50 | $ 18.55 | $ 14.89 |
Shares used in determining basic earnings per share (in shares) | 67,963,956 | 74,394,799 | 79,746,106 |
Diluted earnings per share attributable to Penske Automotive Group common stockholders: | |||
Continuing operations (in dollars per share) | $ 15.50 | $ 18.55 | $ 14.88 |
Discontinued operations (in dollars per share) | 0 | 0 | 0.01 |
Net income attributable to Penske Automotive Group common stockholders (in dollars per share) | $ 15.50 | $ 18.55 | $ 14.89 |
Shares used in determining diluted earnings per share (in shares) | 67,963,956 | 74,394,799 | 79,746,106 |
Amounts attributable to Penske Automotive Group common stockholders: | |||
Income from continuing operations | $ 1,058.6 | $ 1,386.2 | $ 1,191.4 |
Less: Income attributable to non-controlling interests | 5.4 | 6.2 | 4.9 |
Income from continuing operations, net of tax | 1,053.2 | 1,380 | 1,186.5 |
Income from discontinued operations, net of tax | 0 | 0 | 1.3 |
Net income attributable to Penske Automotive Group common stockholders | $ 1,053.2 | $ 1,380 | $ 1,187.8 |
Cash dividends per share (in dollars per share) | $ 2.78 | $ 2.07 | $ 1.78 |
Retail automotive dealership | |||
Revenue: | |||
Total revenues | $ 25,209.1 | $ 23,694.7 | $ 22,513.3 |
Cost of sales: | |||
Total cost of sales | 21,032.9 | 19,568.3 | 18,643.1 |
Impairment charges | 40.7 | ||
Retail commercial truck dealership | |||
Revenue: | |||
Total revenues | 3,684.3 | 3,541.3 | 2,465.7 |
Cost of sales: | |||
Total cost of sales | 3,091.9 | 2,986.2 | 2,048.8 |
Impairment charges | 0 | ||
Commercial vehicle distribution and other | |||
Revenue: | |||
Total revenues | 634 | 578.8 | 575.7 |
Cost of sales: | |||
Total cost of sales | $ 468.8 | $ 421.5 | $ 422 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,058.6 | $ 1,386.2 | $ 1,192.7 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 66.1 | (154.6) | (39.8) |
Unrealized gain on interest rate swaps: | |||
Unrealized gain arising during the period, net of tax provision of $0.0, $0.0, and $1.2, respectively | 0 | 0 | 4.4 |
Reclassification adjustment for gain included in floor plan interest expense, net of tax provision of $0.0, $0.0, and $0.3, respectively | 0 | 0 | (1.2) |
Unrealized gain on interest rate swaps, net of tax | 0 | 0 | 3.2 |
Other adjustments to comprehensive income, net | 5.7 | (12.8) | 27.5 |
Other comprehensive income (loss), net of tax | 71.8 | (167.4) | (9.1) |
Comprehensive income | 1,130.4 | 1,218.8 | 1,183.6 |
Less: Comprehensive income attributable to non-controlling interests | 6 | 5.3 | 4 |
Comprehensive income attributable to Penske Automotive Group common stockholders | $ 1,124.4 | $ 1,213.5 | $ 1,179.6 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Unrealized gain (loss) on interest rate swaps, tax: | |||
Unrealized gain arising during the period, tax provision (benefit) | $ 0 | $ 0 | $ (1.2) |
Reclassification adjustment for gain included in floor plan interest expense, tax provision (benefit) | $ 0 | $ 0 | $ 0.3 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Activities: | |||
Net income | $ 1,058.6 | $ 1,386.2 | $ 1,192.7 |
Adjustments to reconcile net income to net cash from continuing operating activities: | |||
Depreciation | 141 | 127.3 | 121.5 |
Loss on investment | 0 | 0 | 11.4 |
Earnings of equity method investments, net of distributions | (174.6) | (183.3) | (234.9) |
Income from discontinued operations, net of tax | 0 | 0 | (1.3) |
Deferred income taxes | 101.8 | 124.2 | 184.8 |
Debt redemption costs | 0 | 0 | 17 |
Impairment charges | 40.7 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (194.7) | (192.9) | 75.6 |
Inventories | (666.2) | (444.4) | 402.6 |
Floor plan notes payable | 659.7 | 487.1 | (628.6) |
Accounts payable and accrued expenses | (13) | 81.7 | 139 |
Other | 140.3 | 73.1 | 12.2 |
Net cash provided by continuing operating activities | 1,093.6 | 1,459 | 1,292 |
Investing Activities: | |||
Purchases of property, equipment, and improvements | (375.3) | (282.5) | (248.9) |
Proceeds from sale of dealerships | 0 | 13.1 | 4.3 |
Proceeds from sale of property and equipment | 30.7 | 32.3 | 54.9 |
Acquisitions net, including repayment of sellers' floor plan notes payable of $24.3, $51.3, and $43.0, respectively | (214.9) | (393.4) | (431.8) |
Other | (12.8) | (11.2) | (1.6) |
Net cash used in continuing investing activities | (572.3) | (641.7) | (623.1) |
Financing Activities: | |||
Proceeds from borrowings under revolving U.S. credit agreement and mortgage facilities | 3,150.3 | 2,101 | 1,856 |
Repayments under revolving U.S. credit agreement and mortgage facilities | (3,227.8) | (2,101) | (1,964) |
Net borrowings (repayments) of other debt | 73.2 | 160.1 | (104.2) |
Net borrowings of floor plan notes payable — non-trade | 46.5 | 82.9 | 38.9 |
Repurchases of common stock | (358.7) | (869.3) | (280.6) |
Payments of tax withholding for stock-based compensation | (23.5) | (17.2) | (12.9) |
Dividends | (189.1) | (154.1) | (142.5) |
Payment of debt issuance costs | (2.1) | (0.3) | (6.3) |
Other | 0.1 | (0.1) | 0.1 |
Net cash used in continuing financing activities | (531.1) | (798) | (615.5) |
Discontinued operations: | |||
Net cash provided by discontinued operating activities | 0 | 0 | 1.3 |
Net cash provided by discontinued operations | 0 | 0 | 1.3 |
Effect of exchange rate changes on cash and cash equivalents | (0.3) | (13.5) | (3.5) |
Net change in cash and cash equivalents | (10.1) | 5.8 | 51.2 |
Cash and cash equivalents, beginning of period | 106.5 | 100.7 | 49.5 |
Cash and cash equivalents, end of period | 96.4 | 106.5 | 100.7 |
Cash paid for: | |||
Interest | 214.3 | 112.8 | 95.3 |
Income taxes | 288.1 | 343.4 | 160.1 |
3.75% senior subordinated notes due 2029 | |||
Financing Activities: | |||
Issuance of 3.75% senior subordinated notes | 0 | 0 | 500 |
5.50% senior subordinated notes due 2026 | |||
Financing Activities: | |||
Repayment of 5.50% senior subordinated notes | $ 0 | $ 0 | $ (500) |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Repayment of sellers' floor plan notes payable | $ 24.3 | $ 51.3 | $ 43 |
3.75% senior subordinated notes due 2029 | |||
Interest rate | 3.75% | 3.75% | 3.75% |
5.50% senior subordinated notes due 2026 | |||
Interest rate | 5.50% | 5.50% | 5.50% |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED 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, 2020 | 80,392,662 | |||||||||
Beginning balance at Dec. 31, 2020 | $ 3,326.1 | $ 3,302.5 | $ 0 | $ 311.8 | $ 3,151.3 | $ (160.6) | $ 23.6 | |||
Increase (decrease) in stockholders' equity | ||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-02 [Member] | |||||||||
Equity compensation (in shares) | 443,090 | |||||||||
Equity compensation | $ 23.9 | 23.9 | 23.9 | |||||||
Repurchases of common stock (in shares) | (3,261,580) | |||||||||
Repurchases of common stock | (293.5) | (293.5) | (293.5) | |||||||
Dividends | (142.5) | (142.5) | (142.5) | |||||||
Interest rate swaps | 3.2 | 3.2 | 3.2 | |||||||
Distributions to non-controlling interest | (2.6) | (2.6) | ||||||||
Foreign currency translation | (39.8) | (38.9) | (38.9) | (0.9) | ||||||
Other | 27.5 | 27.5 | 27.5 | |||||||
Net income | 1,192.7 | 1,187.8 | 1,187.8 | 4.9 | ||||||
Ending balance (in shares) at Dec. 31, 2021 | 77,574,172 | |||||||||
Ending 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) | 321,866 | |||||||||
Equity compensation | 26.7 | 26.7 | 26.7 | |||||||
Repurchases of common stock (in shares) | (8,214,147) | |||||||||
Repurchases of common stock | (886.5) | (886.5) | (68.9) | (817.6) | ||||||
Dividends | (154.1) | (154.1) | (154.1) | |||||||
Interest rate swaps | 0 | |||||||||
Distributions to non-controlling interest | (3.5) | (3.5) | ||||||||
Foreign currency translation | (154.6) | (153.7) | (153.7) | (0.9) | ||||||
Other | (12.8) | (12.8) | (12.8) | |||||||
Net income | $ 1,386.2 | 1,380 | 1,380 | 6.2 | ||||||
Ending balance (in shares) at Dec. 31, 2022 | 69,681,891 | 69,681,891 | ||||||||
Ending 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) | (237,906) | |||||||||
Equity compensation | 28.1 | 28.1 | 28.1 | |||||||
Repurchases of common stock (in shares) | (2,808,616) | |||||||||
Repurchases of common stock | (385.2) | (385.2) | (28.1) | (357.1) | ||||||
Dividends | (189.1) | (189.1) | (189.1) | |||||||
Interest rate swaps | 0 | |||||||||
Distributions to non-controlling interest | (3.4) | (3.4) | ||||||||
Foreign currency translation | 66.1 | 65.5 | 65.5 | 0.6 | ||||||
Other | 5.7 | 5.7 | 5.7 | |||||||
Net income | $ 1,058.6 | 1,053.2 | 1,053.2 | 5.4 | ||||||
Ending balance (in shares) at Dec. 31, 2023 | 67,111,181 | 67,111,181 | ||||||||
Ending balance at Dec. 31, 2023 | $ 4,755.6 | $ 4,726.2 | $ 0 | $ 0 | $ 4,990.3 | $ (264.1) | $ 29.4 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends per share (in dollars per share) | $ 2.78 | $ 2.07 | $ 1.78 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies Unless the context otherwise requires, the use of the terms "PAG," "we," "us," and "our" in these Notes to the Consolidated 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. Additionally, we own 28.9% of Penske Transportation Solutions, a business that manages one of the largest, most comprehensive and modern trucking fleets in North America with 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. As of December 31, 2023, we operated 336 retail automotive franchised dealerships, of which 147 are located in the U.S. and 189 are located outside of the U.S. The franchised dealerships outside of the U.S. are located primarily in the U.K. As of December 31, 2023, we also operated 19 used vehicle dealerships, with seven dealerships in the U.S. and 12 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, and a limited number of our other dealerships in Europe, 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 are counted as new agency units sold instead of 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 under the agency model, and the Mercedes-Benz U.K. agency model at this time has not changed our used vehicle sales operations or service and parts operations, although the long-term impact of the agency model at these dealerships as well as other agency models proposed by our manufacturer partners is uncertain. During 2023, we acquired two retail automotive franchises in the U.S and two retail automotive franchises in Italy. We also closed seven locations in the U.S., consisting of six retail automotive franchises and one CarShop location, and we closed five locations in the U.K., consisting of four retail automotive franchises and one CarShop location. In January 2024, we acquired Rybrook Group Limited, consisting of 16 retail automotive franchises in the U.K., including four BMW franchises, four MINI franchises, four Volvo franchises, two Land Rover franchises, one Jaguar franchise, and one Porsche franchise. Three of the BMW locations also retail BMW Motorrad motorcycles. In January 2024, we also closed one CarShop location in the U.S. and acquired one Ford dealership and one Chrysler, Dodge, Jeep, Ram dealership in the U.S. 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 the Canadian provinces of Ontario and Manitoba. During 2023, we acquired three full-service dealerships and two service and parts centers in Canada. As of December 31, 2023, PTG operated 44 locations selling new and/or used trucks, performing service and parts operations, or offering collision repair services. In January 2024, we closed one service and parts location in Canada. 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 consolidated financial statements include all majority-owned subsidiaries. Investments in affiliated companies, representing an ownership interest in the voting stock of the affiliate of between 20% and 50% or an investment in a limited partnership or a limited liability corporation for which our investment is more than minor, are stated at the cost of acquisition plus our equity in undistributed net earnings since acquisition. All intercompany accounts and transactions have been eliminated in consolidation. 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 estimates include accounts receivable, inventories, income taxes, intangible assets, leases, and certain reserves. Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments that have an original maturity of three months or less at the date of purchase. Contracts in Transit 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. Contracts in transit, included in accounts receivable, net in our consolidated balance sheets, amounted to $361.9 million and $281.7 million as of December 31, 2023, and 2022, respectively. Inventory Valuation Inventories are stated at the lower of cost or net realizable value. Cost for new and used vehicle inventories includes acquisition, reconditioning, dealer installed accessories, and transportation expenses and is determined using the specific identification method. Inventories of dealership parts and accessories are accounted for using the “first-in, first-out” (“FIFO”) method of inventory accounting, and the cost is based on factory list prices. Property and Equipment Property and equipment are recorded at cost and depreciated over estimated useful lives using the straight-line method. Useful lives for purposes of computing depreciation for assets, other than leasehold improvements, range between 3 and 15 years. Leasehold improvements and equipment under capital leases are depreciated over the shorter of the term of the lease or the estimated useful life of the asset, not to exceed 40 years. Expenditures relating to recurring repair and maintenance are expensed as incurred. Expenditures that increase the useful life or substantially increase the serviceability of an existing asset are capitalized. When equipment is sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the balance sheet, with any resulting gain or loss being reflected in income. 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. Refer to Note 16 "Income Taxes" for additional detail on our accounting for income taxes. Intangible Assets Our principal intangible assets relate to our agreements with vehicle manufacturers and distributors, which represent the estimated value of franchises acquired in business combinations; our distribution agreements with commercial vehicle manufacturers, which represent the estimated value of distribution rights acquired in business combinations; and goodwill, which represents the excess of cost over the fair value of tangible and identified intangible assets acquired in business combinations. We believe the franchise values of our automotive dealerships and the distribution agreements of our commercial vehicle distribution operations have an indefinite useful life based on the following: • Automotive retailing and commercial vehicle distribution are mature industries and are based on franchise, agency, and distribution agreements with the vehicle manufacturers and distributors; • Certain franchise agreement terms are indefinite; • Franchise and distribution agreements that have limited terms have historically been renewed by us without substantial cost; and • Manufacturers and distributors have not historically terminated our agreements. Impairment Testing Other indefinite-lived intangible assets are assessed for impairment annually on October 1 and upon the occurrence of an indicator of impairment through a comparison of its fair value to its carrying value. An indicator of impairment exists if the carrying value exceeds its fair value, and an impairment loss may be recognized up to that excess. The fair value is determined using an income approach, which includes assumptions about revenue growth, terminal growth rates, and earnings before interest, taxes, depreciation, and amortization (“EBITDA”) margins, and the selection of the weighted average cost of capital. Changes in these assumptions could have a significant effect on the fair value of these intangible assets and the amount of any impairment charge. Each of the significant assumptions to the fair value model are considered level 3 inputs within the fair value hierarchy. We also evaluate in connection with the annual impairment testing whether events and circumstances continue to support our assessment that the other indefinite-lived intangible assets continue to have an indefinite life. Goodwill impairment is assessed at the reporting unit level annually on October 1 and upon the occurrence of an indicator of impairment. Our 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. We have determined that the dealerships in each of our operating segments within the Retail Automotive reportable segment are components that were aggregated into six reporting units for the purpose of goodwill impairment testing as of October 1, 2023, as they (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). The reporting units were Eastern, Central, and Western United States, Used Vehicle Dealerships United States, International, and Used Vehicle Dealerships International. Our Retail Commercial Truck reportable segment has been determined to represent one operating segment and reporting unit. The goodwill included in our Other reportable segment relates primarily to our commercial vehicle distribution operating segment. There is no goodwill recorded in our Non-Automotive Investments reportable segment. During 2023, we implemented, and are continuing to implement, certain managerial and financial reporting changes further integrating operations within our Retail Automotive reportable segment. This integration involved realigning management roles, consolidating administrative functions, and system conversions, among other measures. As a result of these changes and subsequent to our goodwill impairment assessment as of October 1, 2023, we determined that the dealerships in each of our operating segments within the Retail Automotive reportable segment are components that are aggregated into two reporting units: United States Retail Automotive and International Retail Automotive. As such, we reassigned our U.S. East, U.S. Central, U.S. West, and Used Vehicle Dealerships U.S. reporting units to the United States Retail Automotive reporting unit and our Used Vehicle Dealerships International reporting unit to the International Retail Automotive reporting unit. We reviewed the quantitative and qualitative factors associated with the change in reporting units and determined that the reassigned reporting units had no indicators of impairment at the time of the reporting unit change and reassignment of goodwill. As of December 31, 2023, we have four reporting units: United States Retail Automotive, International Retail Automotive, Retail Commercial Truck, and Commercial Vehicle and Power Systems Distribution. Refer to Note 8 "Intangible Assets" for detail on our impairment testing. Investments We account for each of our investments under the equity method, pursuant to which we record our proportionate share of the investee's income each period. The net book value of our investments was $1,774.9 million and $1,636.9 million as of December 31, 2023, and 2022, respectively, including $1,725.1 million and $1,590.9 million relating to PTS as of December 31, 2023, and 2022, respectively. We currently hold a 28.9% ownership interest in PTS. Foreign Currency Translation For all of our non-U.S. operations, the functional currency is the local currency. The revenue and expense accounts of our non-U.S. operations are translated into U.S. dollars using the average exchange rates that prevailed during the period. Assets and liabilities of non-U.S. operations are translated into U.S. dollars using period end exchange rates. Cumulative translation adjustments relating to foreign functional currency assets and liabilities are recorded in accumulated other comprehensive income (loss), a separate component of equity. 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: December 31, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value 3.50% senior subordinated notes due 2025 $ 547.7 $ 529.7 $ 546.2 $ 508.7 3.75% senior subordinated notes due 2029 495.8 444.4 495.1 404.2 Mortgage facilities (1) 402.1 378.5 494.3 462.1 _____________________ (1) In addition to fixed rate debt, our mortgage facilities also include revolving mortgage facilities through Toyota Motor Credit Corporation that bear interest at variable rates. The fair value equals the carrying value. Revenue Recognition Dealership Vehicle, Parts, and Service 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. We record revenue for vehicle service and collision work over time as work is completed and when parts are delivered to our customers. Sales promotions that we offer to customers are accounted for as a reduction of revenues at the time of sale. Rebates and other incentives offered directly to us by manufacturers are recognized as a reduction of cost of sales. Reimbursements of qualified advertising expenses are treated as a reduction of selling, general, and administrative expenses. The amounts received under certain manufacturer rebate and incentive programs are based on the attainment of program objectives, and such earnings are recognized either upon the sale of the vehicle for which the award was received or upon attainment of the particular program goals if not associated with individual vehicles. 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 guaranteed 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 $42.7 million and $38.4 million as of December 31, 2023, and December 31, 2022, respectively. Commercial Vehicle Distribution and Other We record revenue from the distribution of vehicles, 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 our long-term power generation contracts, we record revenue over time as services are provided in accordance with contract milestones. Refer to Note 2 “Revenues” for additional disclosures on revenue recognition. Defined Contribution Plans We sponsor a number of defined contribution plans covering a significant majority of our employees. Our contributions to such plans are discretionary and are based on the level of compensation and contributions by plan participants. We incurred expenses of $39.2 million, $36.1 million, and $31.5 million relating to such plans during the years ended December 31, 2023, 2022, and 2021, respectively. Advertising Advertising costs are expensed as incurred or when such advertising takes place. We incurred net advertising costs of $135.9 million, $122.0 million, and $119.2 million during the years ended December 31, 2023, 2022, and 2021, respectively. Qualified advertising expenditures reimbursed by manufacturers, which are treated as a reduction of advertising expense, were $17.8 million, $16.4 million, and $15.4 million during the years ended December 31, 2023, 2022, and 2021, respectively. Self-Insurance We retain risk relating to certain of our general liability insurance, workers' compensation insurance, vehicle physical damage insurance, property insurance, information security risk insurance, directors' and officers' insurance, and employee medical benefits in the U.S. As a result, we are likely to be responsible for a significant portion of the claims and losses incurred under these programs. The amount of risk we retain varies by program, and for certain exposures, we either have no insurance or we have pre-determined maximum loss limits for certain individual claims and/or insurance periods. Losses, if any, above the pre-determined loss limits are paid by third-party insurance carriers. Certain insurers have limited available property coverage in response to the natural catastrophes experienced in recent years. Our estimate of future losses is prepared by management using our historical loss experience and industry-based development factors. Aggregate reserves relating to retained risk were $33.2 million and $34.5 million as of December 31, 2023, and 2022, respectively. Earnings Per Share Basic 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 during the year as compensation. A reconciliation of the number of shares used in the calculation of basic and diluted earnings per share for the years ended December 31, 2023, 2022, and 2021 follows: Year Ended December 31, 2023 2022 2021 Weighted average number of common shares outstanding 67,963,956 74,394,799 79,746,106 Effect of non-participatory equity compensation — — — Weighted average number of common shares outstanding, including effect of dilutive securities 67,963,956 74,394,799 79,746,106 Hedging Generally accepted accounting principles relating to derivative instruments and hedging activities require all derivatives, whether designated in hedging relationships or not, to be recorded on the balance sheet at fair value. These accounting principles also define requirements for designation and documentation of hedging relationships as well as ongoing effectiveness assessments, which must be met in order to qualify for hedge accounting. For a derivative that does not qualify as a hedge, changes in fair value are recorded in earnings immediately. If the derivative is designated as a fair-value hedge, the changes in the fair value of the derivative and the hedged item are recorded in earnings. If the derivative is designated as a cash-flow hedge, effective changes in the fair value of the derivative are recorded in accumulated other comprehensive income (loss), a separate component of equity, and recorded in the income statement only when the hedged item affects earnings. Changes in the fair value of the derivative attributable to hedge ineffectiveness are recorded in earnings immediately. Stock-Based Compensation Generally accepted accounting principles relating to share-based payments require us to record compensation expense for all awards based on their grant-date fair value. Our share-based payments have generally been in the form of “non-vested shares,” the fair value of which are measured as if they were vested and issued on the grant date. 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 some of our floorplan arrangements and certain credit agreements had historically used LIBOR as a benchmark for calculating the applicable interest rate, all of our agreements previously utilizing LIBOR have transitioned to an alternative benchmark rate on or before July 1, 2023. These changes have not had a significant impact on our consolidated financial position, results of operations, and cash flows. Segment Reporting In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." This ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss and also requires that public entities provide all annual disclosures about a reportable segment’s profit or loss and assets in interim periods. This ASU is effective for financial statements issued for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures. Income Taxes In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." This ASU expands public entities’ annual income tax disclosures by requiring disclosure of specific categories in the rate reconciliation and disclosure of additional information for reconciling items that meet a quantitative threshold. This ASU is effective for financial statements issued for annual periods beginning after December 15, 2024, with early adoption permitted. The amendments should be applied on a prospective basis with retrospective application permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures. |
Revenues
Revenues | 12 Months Ended |
Dec. 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. The amount of consideration we receive for vehicle sales, including any non-cash consideration representing the fair value of trade-in vehicles if applicable, is stated within the executed contract with our customer. 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 $42.7 million and $38.4 million as of December 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 years ended December 31, 2023, 2022, and 2021: Year Ended December 31, Retail Automotive Dealership Revenue 2023 2022 2021 New vehicle $ 11,273.3 $ 10,050.5 $ 9,843.2 Used vehicle 8,919.5 9,011.6 8,549.0 Finance and insurance, net 838.6 848.1 780.5 Service and parts 2,734.3 2,426.7 2,165.6 Fleet and wholesale 1,443.4 1,357.8 1,175.0 Total retail automotive dealership revenue $ 25,209.1 $ 23,694.7 $ 22,513.3 Year Ended December 31, Retail Automotive Dealership Revenue 2023 2022 2021 U.S. $ 14,160.5 $ 13,712.7 $ 13,075.8 U.K. 9,240.4 8,443.4 7,984.1 Germany, Italy, and Japan 1,808.2 1,538.6 1,453.4 Total retail automotive dealership revenue $ 25,209.1 $ 23,694.7 $ 22,513.3 Retail Commercial Truck Dealership The following table disaggregates our retail commercial truck segment revenue by product type for the years ended December 31, 2023, 2022, and 2021: Year Ended December 31, Retail Commercial Truck Dealership Revenue 2023 2022 2021 New truck $ 2,480.2 $ 2,308.7 $ 1,540.1 Used truck 229.9 301.3 270.6 Finance and insurance, net 21.9 20.5 16.8 Service and parts 907.3 852.2 609.0 Other 45.0 58.6 29.2 Total retail commercial truck dealership revenue $ 3,684.3 $ 3,541.3 $ 2,465.7 Commercial Vehicle Distribution and Other Our other reportable segment relates to our Penske Australia business. Commercial vehicle distribution and other revenue was $634.0 million, $578.8 million, and $575.7 million, including $265.2 million, $241.0 million, and $242.8 million of service and parts revenue, during the years ended December 31, 2023, 2022, and 2021, respectively. Contract Balances The following table summarizes our accounts receivable and unearned revenues as of December 31, 2023, and December 31, 2022: December 31, December 31, Accounts receivable Contracts in transit $ 361.9 $ 281.7 Vehicle receivables 170.6 235.1 Manufacturer receivables 218.9 178.9 Trade receivables 344.1 191.1 Accrued expenses Unearned revenues $ 280.2 $ 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, $220.7 million was recognized as revenue during the year ended December 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. |
Leases
Leases | 12 Months Ended |
Dec. 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 $5.3 billion as of December 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. In connection with the sale, relocation, and closure of certain of our dealerships, we have entered into a number of third-party sublease agreements. The rent paid by our sub-tenants on such properties for the years ended December 31, 2023, 2022, and 2021 was $17.0 million, $17.9 million, and $22.4 million, respectively. We have in the past and may in the future enter into sale-leaseback transactions to finance certain property acquisitions and capital expenditures, pursuant to which we sell property to third parties and agree to lease those assets back for a certain period of time. Such sales generate proceeds that vary from period to period. We do not have any material leases that have not yet commenced as of December 31, 2023. The following table summarizes our net operating lease cost during the years ended December 31, 2023, 2022, and 2021: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Lease Cost Operating lease cost (1) $ 258.0 $ 254.3 $ 250.1 Sublease income (17.0) (17.9) (22.4) Total lease cost $ 241.0 $ 236.4 $ 227.7 _________________ (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: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Other Information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 258.1 248.5 249.6 Right-of-use assets modified or obtained in exchange for operating lease liabilities, net 30.4 116.2 124.2 Supplemental balance sheet information related to the weighted average remaining lease term and discount rate of our leases is as follows: December 31, 2023 December 31, 2022 Lease Term and Discount Rate Weighted-average remaining lease term - operating leases 24 years 25 years Weighted-average discount rate - operating leases 6.7% 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 balance sheet as of December 31, 2023: Maturity of Lease Liabilities December 31, 2023 2024 $ 246.2 2025 240.5 2026 234.8 2027 226.7 2028 221.4 2029 and thereafter 4,127.3 Total future minimum lease payments $ 5,296.9 Less: Imputed interest (2,873.0) Present value of future minimum lease payments $ 2,423.9 Current operating lease liabilities (1) $ 87.9 Long-term operating lease liabilities 2,336.0 Total operating lease liabilities $ 2,423.9 ____________________ (1) Included within "Accrued expenses and other current liabilities" on Consolidated Balance Sheet as of December 31, 2023. |
Equity Method Investees
Equity Method Investees | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investees | Equity Method Investees As of December 31, 2023, we had investments in the following companies that are accounted for under the equity method: the Nix Group (50%) operating automotive dealerships in Germany, Barcelona Premium SL (50%) operating automotive dealerships in Spain, and Penske Commercial Leasing Australia (28%). We also have a 28.9% ownership interest in PTS, a leading provider of transportation and supply chain services. The partnership agreement requires PTS, subject to applicable law and the terms of its credit agreements, to make quarterly distributions to the partners with respect to each fiscal year by no later than 45 days after the end of each of the first three quarters of the year and by April 15 of the following year. PTS' partnership agreement and certain of its debt agreements allow partner distributions only as long as it is not in default under those agreements and the amount it pays does not exceed 50% of its consolidated net income, unless its debt-to-equity ratio is less than 3.0 to 1.0, in which case its distributions may not exceed 80% of its consolidated net income. Our investment in PTS, which is accounted for under the equity method, amounted to $1,725.1 million and $1,590.9 million at December 31, 2023, and 2022, respectively. The net book value of our equity method investments was $1,774.9 million and $1,636.9 million as of December 31, 2023, and 2022, respectively. We recorded $293.7 million, $494.2 million, and $374.5 million during the years ended December 31, 2023, 2022, and 2021, respectively, on our statements of income under the caption “Equity in earnings of affiliates” related to earnings from our equity method investments. We received $169.9 million, $356.6 million, and $169.7 million of dividends from our equity method investments during the years ended December 31, 2023, 2022, and 2021, respectively. Retained earnings as of December 31, 2023, included undistributed earnings from our equity method investments of $845.5 million. The combined results of operations and financial position of our equity method investees as of December 31 for each of the years presented are summarized as follows: Condensed income statement information: Year Ended December 31, 2023 2022 2021 Revenues $ 13,884.1 $ 13,587.3 $ 11,526.9 Gross profit 2,917.3 3,025.5 2,736.2 Net income 1,008.3 1,701.3 1,272.0 Condensed balance sheet information: December 31, 2023 2022 Current assets $ 2,355.5 $ 2,126.5 Noncurrent assets 20,966.4 17,867.9 Total assets $ 23,321.9 $ 19,994.4 Current liabilities $ 3,140.9 $ 4,110.2 Noncurrent liabilities 15,545.7 11,719.0 Equity 4,635.3 4,165.2 Total liabilities and equity $ 23,321.9 $ 19,994.4 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations During 2023, we acquired three full-service commercial truck dealerships and two service and parts centers in Canada adding to PTG's operations. We also acquired two retail automotive franchises in the U.S., acquired two retail automotive franchises and one body shop in Italy, and acquired one service center in Australia. The companies acquired in 2023 generated $146.6 million of revenue and $5.1 million of pre-tax income from our date of acquisition through December 31, 2023. During 2022, we acquired 19 retail automotive franchises, consisting of 15 franchises in the U.K. and four franchises in the U.S. During 2022, we also acquired four full-service commercial truck dealerships in Canada adding to PTG's operations. 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 years ended December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Accounts receivable $ — $ 8.3 Inventories 34.2 111.4 Other current assets 0.2 3.2 Property and equipment 38.7 134.1 Indefinite-lived intangibles 145.2 160.4 Other noncurrent assets — — Current liabilities (3.4) (14.3) Noncurrent liabilities — (9.7) Total cash used in acquisitions $ 214.9 $ 393.4 Our following unaudited consolidated pro forma results of operations for the years ended December 31, 2023 and 2022 give effect to acquisitions consummated during 2023 and 2022 as if they had occurred on January 1, 2022. This pro forma information is based on historical results of operations, adjusted for the income statement effects of incremental interest expense directly resulting from the acquisitions and the related tax effects. The pro forma information is not necessarily indicative of the results that would have been achieved had the transactions occurred on the first day of each of the periods presented or that may be achieved in the future: Year Ended December 31, 2023 2022 Revenues $ 29,727.6 $ 28,624.7 Income from continuing operations attributable to Penske Automotive Group common stockholders 1,057.0 1,393.4 Net income attributable to Penske Automotive Group common stockholders 1,057.0 1,393.4 Income from continuing operations per diluted common share $ 15.55 $ 18.73 Net income per diluted common share $ 15.55 $ 18.73 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: December 31, 2023 2022 Retail automotive dealership new vehicles $ 1,951.3 $ 1,326.5 Retail automotive dealership used vehicles 1,186.3 1,279.6 Retail automotive parts, accessories, and other 156.2 145.6 Retail commercial truck dealership vehicles and parts 543.7 506.2 Commercial vehicle distribution vehicles, parts, and engines 455.6 251.2 Total inventories $ 4,293.1 $ 3,509.1 We receive credits from certain vehicle manufacturers that reduce cost of sales when the vehicles are sold. Such credits amounted to $49.1 million, $53.3 million, and $63.7 million during the years ended December 31, 2023, 2022, and 2021, respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following: December 31, 2023 2022 Buildings and leasehold improvements $ 2,763.2 $ 2,437.9 Furniture, fixtures, and equipment 1,024.1 960.9 Total $ 3,787.3 $ 3,398.8 Less: Accumulated depreciation (1,022.1) (902.3) Property and equipment, net $ 2,765.2 $ 2,496.5 Approximately $30.9 million and $30.1 million of net capitalized interest is included in buildings and leasehold improvements as of December 31, 2023 and 2022, respectively, and is being depreciated over the useful life of the related assets. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 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 years ended December 31, 2023, and 2022: Goodwill Other Indefinite-Lived Intangible Balance — December 31, 2021 (1) $ 2,124.1 $ 641.5 Additions 93.8 66.6 Disposals (1.9) (3.7) Foreign currency translation (61.3) (13.5) Balance — December 31, 2022 (1) $ 2,154.7 $ 690.9 Additions 95.9 51.3 Disposals — (0.1) Impairment (40.7) — Foreign currency translation 25.0 6.1 Balance — December 31, 2023 (2) $ 2,234.9 $ 748.2 ____________________ (1) Net of accumulated goodwill impairment losses of $606.3 million recorded prior to December 31, 2012 (2) Net of accumulated goodwill impairment losses of $647.0 million Following is a summary of the changes in the carrying amount of goodwill by reportable segment during the years ended December 31, 2023, and 2022: Retail Retail Other Total Balance — December 31, 2021 $ 1,622.2 $ 422.3 $ 79.6 $ 2,124.1 Additions 49.9 43.9 — 93.8 Disposals (1.9) — — (1.9) Foreign currency translation (52.6) (3.9) (4.8) (61.3) Balance — December 31, 2022 $ 1,617.6 $ 462.3 $ 74.8 $ 2,154.7 Additions 64.3 29.9 1.7 95.9 Disposals — — — — Impairment (40.7) — — (40.7) Foreign currency translation 22.8 2.1 0.1 25.0 Balance — December 31, 2023 $ 1,664.0 $ 494.3 $ 76.6 $ 2,234.9 For reporting units within our Retail Automotive, Retail Commercial Truck, and Other reportable segments, we prepared a quantitative assessment of the carrying value of goodwill. We estimated the fair value of our reporting units using an income approach. The income approach measures fair value by discounting expected future cash flows at a weighted average cost of capital. We also validate the fair value for each reporting unit using the income approach by calculating a cash earnings multiple and determining whether the multiple was reasonable compared to recent market transactions completed by the Company or in the industry. As part of that assessment, we also reconcile the estimated aggregate fair values of our reporting units to our market capitalization. We believe this reconciliation process is consistent with a market participant perspective. This consideration would also include a control premium that represents the estimated amount an investor would pay for our equity securities to obtain a controlling interest and other significant assumptions, including revenue growth, terminal growth rates, EBITDA margin, and the weighted average cost of capital. Based on our assessment as of October 1, 2023, and in conjunction with our fourth quarter annual forecasting process for 2024 which impacts key assumptions used in our goodwill impairment assessment, we determined the carrying value of goodwill related our Used Vehicle Dealerships International reporting unit was greater than the fair value of the reporting unit. As a result, we recorded a non-cash impairment charge of $40.7 million to reduce the carrying value to fair value. We had no impairment charges relating to our intangible assets with respect to the sale or closure of certain franchised dealerships during 2023 and 2022. There is no goodwill recorded in our Non-Automotive Investments reportable segment. |
Vehicle Financing
Vehicle Financing | 12 Months Ended |
Dec. 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"), 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 with 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 4.5%, 1.9%, and 0.9% for 2023, 2022, and 2021, 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. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following: December 31, 2023 2022 U.S. credit agreement — revolving credit line $ — $ — U.K. credit agreement — revolving credit line — 24.2 3.50% senior subordinated notes due 2025 547.7 546.2 3.75% senior subordinated notes due 2029 495.8 495.1 Canada credit agreement 81.5 — Australia credit agreement 62.7 21.6 Mortgage facilities 402.1 494.3 Other 39.4 40.7 Total long-term debt $ 1,629.2 $ 1,622.1 Less: current portion (209.7) (75.2) Net long-term debt $ 1,419.5 $ 1,546.9 Scheduled maturities of long-term debt for each of the next five years and thereafter are as follows: 2024 $ 209.7 2025 581.5 2026 23.2 2027 37.6 2028 54.1 2029 and thereafter 723.1 Total long-term debt reported $ 1,629.2 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, which added as a lender Daimler Truck Financial Services USA LLC (the credit agreement as amended, the “U.S. Credit Agreement”). 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 provides for a maximum of $400 million of borrowings for foreign acquisitions and expires on September 30, 2026. The interest rate on revolving loans is based on an adjusted Secured Overnight Financing Rate plus 1.50%, with uncollateralized borrowings in excess of a defined borrowing base bearing interest at adjusted SOFR plus 3.00%. 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 December 31, 2023, we had no revolver borrowings under the U.S. credit agreement. U.K. Credit Agreement On December 5, 2023, Penske Automotive Group, Inc. (the “Company”) amended its revolving credit agreement among its subsidiaries in the U.K. (the “U.K. subsidiaries”), National Westminster Bank Plc and BMW Financial Services (GB) Limited (“BMW Financial”) (the “U.K. credit agreement”) to increase permitted capital expenditures under the facility from £100.0 million to £150.0 million per year. The U.K. credit agreement provides up to a £200.0 million revolving line of credit to be used for working capital, acquisitions, capital expenditures, investments and general corporate purposes. The revolving loans bear interest between defined Sterling Overnight Index Average (“SONIA”) plus 1.10% and defined 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. In January 2024, the lenders agreed to extend the facility by one year, and it now expires in January 2028. The U.K. credit agreement is guaranteed by the holding company of a majority of our international subsidiaries, PAG International Ltd. As of December 31, 2023, we had no revolver 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 U.K. credit 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. Canada Credit Agreement One of our Canadian subsidiaries is party to a CAD $150.0 million revolving line of credit with Daimler Truck Financial Services Canada Corporation ("DTFS") which we use in relation to our Canadian Premier Truck Group retail operations (the "Canada credit agreement"). The Canada credit agreement bears interest at a rate of Canadian Prime (determined by the Royal Bank of Canada) ("Canadian Prime Rate") minus 0.50%; provided that DTFS is entitled to demand repayment of any outstanding borrowings under the Canada revolving note and, following such demand, the interest rate on outstanding borrowings shall be increased to the Canadian Prime Rate plus 2.00%. The Canada credit agreement is guaranteed by PAG International Ltd. As of December 31, 2023, we had CAD $108.0 million ($81.5 million) of outstanding borrowings under the Canada credit agreement. Australia Credit Agreement Penske Australia is party to an AU $100.0 million credit agreement with Daimler Truck Financial Services Australia Pty Ltd (the "Australia credit agreement"), which agreement was extended from AU $75.0 million to AU $100.0 million in November 2023. 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 December 31, 2023, we had AU $92.0 million ($62.7 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 with Toyota Motor Credit Corporation in the U.S. with a maximum borrowing capacity of $300.0 million contingent on property values and a borrowing capacity as of December 31, 2023, of $252.3 million. The facility bears interest at the prime rate minus 1.68% and expires in December 2025. As of December 31, 2023, we had $10.0 million of 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 December 31, 2023, we owed $402.1 million of principal under all of our mortgage facilities. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 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 December 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. Rent expense for land and facilities for the years ended December 31, 2023, 2022, and 2021 amounted to $247.9 million, $243.3 million, and $237.9 million, respectively. 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. We currently guarantee or are otherwise liable for approximately $95.2 million of these lease payments, including lease payments during available renewal periods. Our floor plan credit agreements with Daimler Truck 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 $25.2 million of letters of credit outstanding and $19.8 million of bank guarantees as of December 31, 2023, and have posted $30.3 million of surety bonds in the ordinary course of business. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions We sometimes pay to and/or receive fees from Penske Corporation, its subsidiaries, and its affiliates for services rendered in the ordinary course of business or to reimburse payments made to third parties on each other's behalf. These transactions are reviewed periodically by our Audit Committee and reflect the provider's cost or an amount mutually agreed upon by both parties. During 2023, 2022, and 2021, Penske Corporation and its affiliates billed us $5.3 million, $5.1 million, and $6.7 million, respectively, and we billed Penske Corporation and its affiliates $1.3 million, $1.3 million, and $38 thousand, respectively, for such services. As of December 31, 2023, and 2022, we had $44 thousand and $50 thousand of receivables from, and $0.5 million and $0.6 million of payables to, Penske Corporation and its subsidiaries, respectively. Our officers, directors, and their affiliates periodically purchase, lease, or sell vehicles and parts from us or PTS at fair market value. This includes purchases and sales of trucks, logistics, and other services and parts as between our subsidiaries and those of PTS (principally consisting of purchases of $42.3 million of trucks and parts by PTS from our PTG subsidiaries and purchases of $2.7 million of used trucks and towing services by PTG from PTS). PTS is owned 41.1% by Penske Corporation, 28.9% by us, and 30.0% by Mitsui. The PTS partnership agreement, among other things, provides us with specified partner distribution and governance rights and restricts our ability to transfer our interest. The partnership has an eleven-member Advisory Board. We have the right to appoint one Advisory Board member and appointed Robert H. Kurnick, Jr., our President. Lisa Davis and Michael Eisenson, our directors, are also members of the Advisory Board. We have the right to pro rata quarterly distributions equal to at least 50% of PTS' consolidated net income, as well as specified minority rights which require our and/or Mitsui's consent for certain actions taken by PTS as specified in the PTS partnership agreement. We are able to transfer our directly owned interests with the unanimous consent of the other partners or if we provide the remaining partners with a right of first offer to acquire our interests, except that we may transfer up to 9.02% of our interest to Penske Corporation without complying with the right of first offer to the remaining partner. We and Penske Corporation have agreed that (1) in the event of any transfer by Penske Corporation of their partnership interests to a third party, we will be entitled to “tag-along” by transferring a pro rata amount of our partnership interests on similar terms and conditions, and (2) Penske Corporation is entitled to a right of first refusal in the event of any transfer of our partnership interests, subject to the terms of the partnership agreement. Additionally, PTS has agreed to indemnify the general partner for any actions in connection with managing PTS, except those taken in bad faith or in violation of the partnership agreement. The partnership agreement allows Penske Corporation to give notice to require PTS to begin to effect an initial public offering of equity securities, subject to certain limitations, as soon as practicable after the first anniversary of the initial notice, and beginning in 2025, we and Mitsui continue to have a similar right to require PTS to begin an initial public offering of equity securities, subject to certain limitations, as soon as reasonably practicable. The term of the partnership agreement is indefinite. In 2023, 2022, and 2021, we received $168.8 million, $356.6 million, and $165.5 million, respectively, from PTS in pro rata cash dividends. In 2014, we formed a venture with PTS, Penske Commercial Leasing Australia. This venture combines PTS' fleet operations expertise with our market knowledge of commercial vehicles to rent heavy-duty commercial vehicles in Australia. This venture is accounted for as an equity method investment as discussed in Note 4. On December 22, 2023, we entered into a Stock Purchase Agreement (the “Purchase Agreement”) with Penske Investments Limited Partnership, a Nevada partnership owned by entities affiliated with our Chair and Chief Executive Officer Roger S. Penske (“PILP”), to acquire all of the issued and outstanding capital stock of Don Allen Auto Service, Inc., a Massachusetts corporation (the “Dealership Entity”), for an initial purchase price of $12,340,000 in cash, subject to certain adjustments. The Dealership Entity owns Don Allen Ford Nantucket and Don Allen Chrysler Dodge Jeep Ram (the “Dealerships”) located in Nantucket, MA, as well as associated real property. Under the terms of the Purchase Agreement, the purchase price was to be increased or decreased after the closing based on the finally determined net worth of the Dealership Entity as of the closing date compared to a net worth target based on the Dealership Entity’s historical assets and liabilities. We closed the transactions contemplated by the Purchase Agreement on January 16, 2024. Joint Venture Relationships From time to time, we enter into joint venture relationships in the ordinary course of business, pursuant to which we own and operate automotive dealerships together with other investors. We may also provide these dealerships with working capital and other debt financing at costs that are based on our incremental borrowing rate. As of December 31, 2023, our automotive joint venture relationships were as follows: Location Dealerships Ownership Interest Fairfield, Connecticut Audi, Mercedes-Benz, Sprinter, Porsche 80.00% (A) Greenwich, Connecticut Mercedes-Benz 80.00% (A) Northern Italy BMW, MINI, Maserati, Porsche, Audi, Jaguar, Land Rover, Volvo, Mercedes-Benz, smart, Lamborghini 84.10% (A) Frankfurt, Germany Lexus, Toyota, Volkswagen 50.00% (B) Barcelona, Spain BMW, MINI 50.00% (B) _________________ (A) Entity is consolidated in our financial statements. (B) Entity is accounted for using the equity method of accounting. As noted above, we are party to non-automotive joint ventures representing our investments in PTS (28.9%) and Penske Commercial Leasing Australia (28%) that are accounted for under the equity method, as more fully discussed in Note 4. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Our key employees, outside directors, consultants, and advisors are eligible to receive stock-based compensation pursuant to the terms of our 2020 Equity Incentive Plan (the “2020 Plan”). This plan allows for the issuance of shares for stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, and other awards. The 2020 Plan allows for up to 5,000,000 awards, of which 3,944,430 shares of common stock were available for grant as of December 31, 2023, and terminates once all awards have been issued. Compensation expense related to our equity incentive plans were $27.9 million, $25.5 million, and $23.1 million during 2023, 2022, and 2021, respectively. Restricted Stock During 2023, 2022, and 2021, we granted 210,222, 291,832, and 439,633 shares, respectively, of restricted common stock and restricted stock units at no cost to participants under the plan. These awards provide dividend rights prior to vesting, and the restricted stock provides voting rights prior to vesting. The awards are subject to forfeiture and are non-transferable, which restrictions generally lapse over a four-year period from the grant date at a rate of 15%, 15%, 20% and 50% per year. We have determined that the grant date quoted market price of the underlying common stock is the appropriate measure of compensation cost. This cost is amortized as expense over the restriction period. As of December 31, 2023, there was $44.2 million of unrecognized compensation cost related to the restricted stock, which is expected to be recognized over the restricted period. Presented below is a summary of the status of our restricted stock as of December 31, 2023 and 2022 and changes during the year ended December 31, 2023: Shares Weighted Average Aggregate December 31, 2021 1,082,844 $ 56.26 Granted 291,832 100.53 Vested (352,585) 53.07 Forfeited (4,071) 62.91 December 31, 2022 1,018,020 $ 70.03 $ 117.0 Granted 210,222 146.48 Vested (399,362) 58.62 Forfeited (5,407) 87.40 December 31, 2023 823,473 $ 94.98 $ 132.2 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Equity | Equity A summary of shares repurchased under our securities repurchase program, and shares acquired, is as follows: Year Ended December 31, 2023 2022 2021 Shares repurchased (1) 2,640,152 8,065,707 3,112,404 Aggregate purchase price $ 358.7 $ 869.3 $ 280.6 Average purchase price per share $ 135.86 $ 107.78 $ 90.13 Shares acquired (2) 168,464 148,440 149,176 Aggregate purchase price $ 23.5 $ 17.2 $ 12.9 Average purchase price per share $ 139.45 $ 115.97 $ 86.78 ________________________ (1) Shares were repurchased under our securities repurchase program. We had $215.5 million in repurchase authorization remaining under the repurchase program as of December 31, 2023. (2) Shares were acquired from employees in connection with a net share settlement feature of employee equity awards. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 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 years ended December 31, 2023, 2022, and 2021 attributable to Penske Automotive Group common stockholders follows: Foreign Interest Rate Other Accumulated Balance at January 1, 2021 $ (135.5) $ (3.2) $ (21.9) $ (160.6) Other comprehensive income (loss) before reclassifications (38.9) 4.4 27.5 (7.0) Amounts reclassified from accumulated other comprehensive income (loss) — net of tax provision of $0.3 — (1.2) — (1.2) Net current-period other comprehensive income (loss) (38.9) 3.2 27.5 (8.2) Balance at December 31, 2021 $ (174.4) $ — $ 5.6 $ (168.8) Other comprehensive income (loss) before reclassifications (153.7) — (12.8) (166.5) Amounts reclassified from accumulated other comprehensive income (loss) — net of tax — — — — Net current-period other comprehensive income (loss) (153.7) — (12.8) (166.5) Balance at December 31, 2022 $ (328.1) $ — $ (7.2) $ (335.3) Other comprehensive income (loss) before reclassifications 65.5 — 5.7 71.2 Amounts reclassified from accumulated other comprehensive income (loss) — net of tax — — — — Net current-period other comprehensive income (loss) 65.5 — 5.7 71.2 Balance at December 31, 2023 $ (262.6) $ — $ (1.5) $ (264.1) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income from continuing operations before income taxes by geographic region was as follows: Year Ended December 31, 2023 2022 2021 U.S. $ 1,119.9 $ 1,474.5 $ 1,242.6 Non-U.S. 299.6 384.7 365.1 Income from continuing operations before income taxes $ 1,419.5 $ 1,859.2 $ 1,607.7 Income taxes relating to income from continuing operations consisted of the following: Year Ended December 31, 2023 2022 2021 Current: Federal $ 131.0 $ 200.6 $ 115.7 State and local 53.4 71.6 48.1 Non-U.S. 74.7 76.6 67.7 Total current $ 259.1 $ 348.8 $ 231.5 Deferred: Federal 85.5 98.8 129.9 State and local 10.0 17.1 33.9 Non-U.S. 6.3 8.3 21.0 Total deferred $ 101.8 $ 124.2 $ 184.8 Income taxes $ 360.9 $ 473.0 $ 416.3 Income taxes relating to income from continuing operations varied from the U.S. federal statutory income tax rate due to the following: Year Ended December 31, 2023 2022 2021 Income taxes at federal statutory rate $ 298.1 $ 390.4 $ 337.6 State and local income taxes, net of federal taxes 47.7 67.3 64.6 Non-U.S. income taxed at other rates 18.2 4.1 11.9 Other (3.1) 11.2 2.2 Income taxes $ 360.9 $ 473.0 $ 416.3 The components of deferred tax assets and liabilities as of December 31, 2023 and 2022 were as follows: December 31, 2023 2022 Deferred Tax Assets Accrued liabilities $ 77.3 $ 68.9 Net operating loss and credit carryforwards 49.3 50.5 Leasing liabilities 624.8 628.7 Other 36.6 36.6 Total deferred tax assets 788.0 784.7 Valuation allowance (58.2) (62.8) Net deferred tax assets $ 729.8 $ 721.9 Deferred Tax Liabilities Depreciation and amortization (354.2) (314.1) Partnership investments (972.1) (890.4) Leasing assets (624.8) (628.7) Other (10.4) (9.7) Total deferred tax liabilities (1,961.5) (1,842.9) Net deferred tax liabilities $ (1,231.7) $ (1,121.0) We are not permanently reinvested in a portion of our previously taxed unremitted foreign earnings, which may be distributed in the future. At December 31, 2023, we have accrued the appropriate amount of U.S. state income taxes and foreign withholding taxes for the unremitted foreign earnings that are not permanently reinvested. We have not provided any U.S. taxes on a total temporary difference of $352.8 million related to the excess of financial reporting basis over tax basis in our non-U.S. subsidiaries as it is our position that we are permanently reinvested for this basis difference. At December 31, 2023, we have $108.9 million of state net operating loss carryforwards in the U.S. that expire at various dates beginning in 2024 through 2044, a U.S. foreign tax credit carryforward of $32.0 million that will expire beginning in 2027, U.K. capital loss carryforwards of $6.4 million that will not expire, Germany net operating loss carryforwards of $29.1 million that will not expire, and Italy net operating loss carryforwards of $0.1 million that will not expire. The Company used $17.3 million of state net operating loss carryforwards in the U.S. in 2023. A valuation allowance of $0.7 million has been recorded against the state net operating loss carryforwards in the U.S. and a valuation allowance of $32.0 million has been recorded against the U.S. foreign tax credit carryforward as of December 31, 2023. A valuation allowance of $2.4 million has been recorded against German net operating losses and other deferred tax assets. A valuation allowance of $23.1 million has been recorded against U.K. deferred tax assets related to buildings as of December 31, 2023. Generally accepted accounting principles relating to uncertain income tax positions prescribe a minimum recognition threshold a tax position is required to meet before being recognized and provides guidance on the derecognition, measurement, classification, and disclosure relating to income taxes. We have elected to include interest and penalties in our income tax expense. The total interest and penalties included within uncertain tax positions at December 31, 2023, were $0. We do not expect a significant change to the amount of uncertain tax positions within the next twelve months. Our U.S. federal returns remain open to examination for 2017, 2020, 2021, and 2022 and various U.S. state jurisdictions are open for periods ranging from 2018 through 2022. The portion of the total amount of uncertain tax positions that would, if recognized, impact the effective tax rate was $0.5 million as of December 31, 2023, 2022, and 2021, respectively. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our 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 now represent two operating segments as previously discussed in Note 1: United States Retail Automotive and International Retail Automotive. 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). The accounting policies of the segments are the same and are described in Note 1. The following table summarizes revenues, gross profit, selling, general, and administrative expenses, floor plan interest expense, other interest expense, depreciation, equity in earnings of affiliates, and income from continuing operations before income taxes, which is the measure of segment performance by which management allocates resources to its segments and which we refer to as segment income, for each of our reportable segments. Retail Retail Commercial Other Non-Automotive Total Revenues 2023 $ 25,209.1 $ 3,684.3 $ 634.0 $ — $ 29,527.4 2022 23,694.7 3,541.3 578.8 — 27,814.8 2021 22,513.3 2,465.7 575.7 — 25,554.7 Gross profit 2023 $ 4,176.2 $ 592.4 $ 165.2 $ — $ 4,933.8 2022 4,126.4 555.1 157.3 — 4,838.8 2021 3,870.2 416.9 153.7 — 4,440.8 Selling, general, and administrative expenses 2023 $ 2,948.8 $ 339.2 $ 112.6 $ — $ 3,400.6 2022 2,790.4 318.3 115.0 — 3,223.7 2021 2,607.3 243.3 112.3 — 2,962.9 Floor plan interest expense 2023 $ 116.0 $ 14.5 $ 2.6 $ — $ 133.1 2022 44.5 7.5 0.4 — 52.4 2021 23.9 1.9 0.4 — 26.2 Other interest expense 2023 $ 90.3 $ 1.3 $ 1.0 $ — $ 92.6 2022 65.1 3.9 1.4 — 70.4 2021 63.8 3.3 1.5 — 68.6 Depreciation 2023 $ 124.7 $ 11.6 $ 4.7 $ — $ 141.0 2022 112.7 10.0 4.6 — 127.3 2021 108.7 7.9 4.9 — 121.5 Equity in earnings of affiliates 2023 $ 3.9 $ — $ — $ 289.8 $ 293.7 2022 3.5 — — 490.7 494.2 2021 8.2 — — 366.3 374.5 Segment income 2023 (1) $ 860.5 $ 225.0 $ 44.2 $ 289.8 $ 1,419.5 2022 1,118.0 214.7 35.8 490.7 1,859.2 2021 1,046.6 160.3 34.5 366.3 1,607.7 __________________________ (1) Retail automotive segment income includes $40.7 million of impairment charges in 2023 related to our Used Vehicle Dealerships International reporting unit. Total assets, equity method investments, and capital expenditures by reportable segment are as set forth in the table below: Retail Retail Commercial Other Non-Automotive Total Total assets 2023 $ 11,408.3 $ 1,690.8 $ 842.0 $ 1,730.4 $ 15,671.5 2022 10,483.3 1,471.9 563.6 1,595.8 14,114.6 Equity method investments 2023 $ 44.5 $ — $ — $ 1,730.4 $ 1,774.9 2022 41.1 — — 1,595.8 1,636.9 Capital expenditures 2023 $ 306.9 $ 60.1 $ 8.3 $ — $ 375.3 2022 245.6 31.2 5.7 — 282.5 2021 239.4 6.3 3.2 — 248.9 The following table presents revenue and long-lived assets (all non-current assets except goodwill, other indefinite-lived intangible assets, and operating lease right-of-use assets) by geographic area: Year Ended December 31, 2023 2022 2021 Revenue from external customers: U.S. $ 17,186.5 $ 16,801.7 $ 15,275.9 Non-U.S. 12,340.9 11,013.1 10,278.8 Total revenue from external customers $ 29,527.4 $ 27,814.8 $ 25,554.7 Long-lived assets, net: U.S. $ 3,255.4 $ 3,001.8 Non-U.S. 1,347.8 1,186.9 Total long-lived assets $ 4,603.2 $ 4,188.7 The Company's non-U.S. operations are predominantly based in the U.K. |
Schedule II VALUATION AND QUALI
Schedule II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II VALUATION AND QUALIFYING ACCOUNTS | Schedule II PENSKE AUTOMOTIVE GROUP, INC. VALUATION AND QUALIFYING ACCOUNTS (In millions) Description Balance at Additions Deductions, Balance Year Ended December 31, 2023 Allowance for doubtful accounts $ 6.6 $ 2.2 $ (2.0) $ 6.8 Tax valuation allowance 62.8 3.4 (8.0) 58.2 Year Ended December 31, 2022 Allowance for doubtful accounts $ 6.8 $ 3.7 $ (3.9) $ 6.6 Tax valuation allowance 67.0 0.6 (4.8) 62.8 Year Ended December 31, 2021 Allowance for doubtful accounts $ 5.5 $ 4.8 $ (3.5) $ 6.8 Tax valuation allowance 64.2 6.4 (3.6) 67.0 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) Attributable to Parent | $ 1,053.2 | $ 1,380 | $ 1,187.8 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include all majority-owned subsidiaries. Investments in affiliated companies, representing an ownership interest in the voting stock of the affiliate of between 20% and 50% or an investment in a limited partnership or a limited liability corporation for which our investment is more than minor, are stated at the cost of acquisition plus our equity in undistributed net earnings since acquisition. All intercompany accounts and transactions have been eliminated in consolidation. |
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 estimates include accounts receivable, inventories, income taxes, intangible assets, leases, and certain reserves. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments that have an original maturity of three months or less at the date of purchase. |
Contracts in Transit | Contracts in Transit 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. Contracts in transit, included in accounts receivable, net in our consolidated balance sheets, amounted to $361.9 million and $281.7 million as of December 31, 2023, and 2022, respectively. |
Inventory Valuation | Inventory Valuation Inventories are stated at the lower of cost or net realizable value. Cost for new and used vehicle inventories includes acquisition, reconditioning, dealer installed accessories, and transportation expenses and is determined using the specific identification method. Inventories of dealership parts and accessories are accounted for using the “first-in, first-out” (“FIFO”) method of inventory accounting, and the cost is based on factory list prices. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and depreciated over estimated useful lives using the straight-line method. Useful lives for purposes of computing depreciation for assets, other than leasehold improvements, range between 3 and 15 years. Leasehold improvements and equipment under capital leases are depreciated over the shorter of the term of the lease or the estimated useful life of the asset, not to exceed 40 years. Expenditures relating to recurring repair and maintenance are expensed as incurred. Expenditures that increase the useful life or substantially increase the serviceability of an existing asset are capitalized. When equipment is sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the balance sheet, with any resulting gain or loss being reflected in income. |
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. |
Intangible Assets | Intangible Assets Our principal intangible assets relate to our agreements with vehicle manufacturers and distributors, which represent the estimated value of franchises acquired in business combinations; our distribution agreements with commercial vehicle manufacturers, which represent the estimated value of distribution rights acquired in business combinations; and goodwill, which represents the excess of cost over the fair value of tangible and identified intangible assets acquired in business combinations. We believe the franchise values of our automotive dealerships and the distribution agreements of our commercial vehicle distribution operations have an indefinite useful life based on the following: • Automotive retailing and commercial vehicle distribution are mature industries and are based on franchise, agency, and distribution agreements with the vehicle manufacturers and distributors; • Certain franchise agreement terms are indefinite; • Franchise and distribution agreements that have limited terms have historically been renewed by us without substantial cost; and • Manufacturers and distributors have not historically terminated our agreements. |
Impairment Testing | Impairment Testing Other indefinite-lived intangible assets are assessed for impairment annually on October 1 and upon the occurrence of an indicator of impairment through a comparison of its fair value to its carrying value. An indicator of impairment exists if the carrying value exceeds its fair value, and an impairment loss may be recognized up to that excess. The fair value is determined using an income approach, which includes assumptions about revenue growth, terminal growth rates, and earnings before interest, taxes, depreciation, and amortization (“EBITDA”) margins, and the selection of the weighted average cost of capital. Changes in these assumptions could have a significant effect on the fair value of these intangible assets and the amount of any impairment charge. Each of the significant assumptions to the fair value model are considered level 3 inputs within the fair value hierarchy. We also evaluate in connection with the annual impairment testing whether events and circumstances continue to support our assessment that the other indefinite-lived intangible assets continue to have an indefinite life. Goodwill impairment is assessed at the reporting unit level annually on October 1 and upon the occurrence of an indicator of impairment. Our 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. We have determined that the dealerships in each of our operating segments within the Retail Automotive reportable segment are components that were aggregated into six reporting units for the purpose of goodwill impairment testing as of October 1, 2023, as they (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). The reporting units were Eastern, Central, and Western United States, Used Vehicle Dealerships United States, International, and Used Vehicle Dealerships International. Our Retail Commercial Truck reportable segment has been determined to represent one operating segment and reporting unit. The goodwill included in our Other reportable segment relates primarily to our commercial vehicle distribution operating segment. There is no goodwill recorded in our Non-Automotive Investments reportable segment. During 2023, we implemented, and are continuing to implement, certain managerial and financial reporting changes further integrating operations within our Retail Automotive reportable segment. This integration involved realigning management roles, consolidating administrative functions, and system conversions, among other measures. As a result of these changes and subsequent to our goodwill impairment assessment as of October 1, 2023, we determined that the dealerships in each of our operating segments within the Retail Automotive reportable segment are components that are aggregated into two reporting units: United States Retail Automotive and International Retail Automotive. As such, we reassigned our U.S. East, U.S. Central, U.S. West, and Used Vehicle Dealerships U.S. reporting units to the United States Retail Automotive reporting unit and our Used Vehicle Dealerships International reporting unit to the International Retail Automotive reporting unit. We reviewed the quantitative and qualitative factors associated with the change in reporting units and determined that the reassigned reporting units had no indicators of impairment at the time of the reporting unit change and reassignment of goodwill. As of December 31, 2023, we have four reporting units: United States Retail Automotive, International Retail Automotive, Retail Commercial Truck, and Commercial Vehicle and Power Systems Distribution. |
Investments | Investments We account for each of our investments under the equity method, pursuant to which we record our proportionate share of the investee's income each period. The net book value of our investments was $1,774.9 million and $1,636.9 million as of December 31, 2023, and 2022, respectively, including $1,725.1 million and $1,590.9 million relating to PTS as of December 31, 2023, and 2022, respectively. We currently hold a 28.9% ownership interest in PTS. |
Foreign Currency Translation | Foreign Currency Translation For all of our non-U.S. operations, the functional currency is the local currency. The revenue and expense accounts of our non-U.S. operations are translated into U.S. dollars using the average exchange rates that prevailed during the period. Assets and liabilities of non-U.S. operations are translated into U.S. dollars using period end exchange rates. Cumulative translation adjustments relating to foreign functional currency assets and liabilities are recorded in accumulated other comprehensive income (loss), a separate component of equity. |
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. |
Revenue Recognition | Revenue Recognition Dealership Vehicle, Parts, and Service 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. We record revenue for vehicle service and collision work over time as work is completed and when parts are delivered to our customers. Sales promotions that we offer to customers are accounted for as a reduction of revenues at the time of sale. Rebates and other incentives offered directly to us by manufacturers are recognized as a reduction of cost of sales. Reimbursements of qualified advertising expenses are treated as a reduction of selling, general, and administrative expenses. The amounts received under certain manufacturer rebate and incentive programs are based on the attainment of program objectives, and such earnings are recognized either upon the sale of the vehicle for which the award was received or upon attainment of the particular program goals if not associated with individual vehicles. 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 guaranteed 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 $42.7 million and $38.4 million as of December 31, 2023, and December 31, 2022, respectively. Commercial Vehicle Distribution and Other We record revenue from the distribution of vehicles, 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 our long-term power generation contracts, we record revenue over time as services are provided in accordance with contract milestones. |
Defined Contribution Plans | Defined Contribution Plans |
Advertising | Advertising Advertising costs are expensed as incurred or when such advertising takes place. We incurred net advertising costs of $135.9 million, $122.0 million, and $119.2 million during the years ended December 31, 2023, 2022, and 2021, respectively. Qualified advertising expenditures reimbursed by manufacturers, which are treated as a reduction of advertising expense, were $17.8 million, $16.4 million, and $15.4 million during the years ended December 31, 2023, 2022, and 2021, respectively. |
Self-Insurance | Self-Insurance |
Earnings Per Share | Earnings Per Share Basic 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 during the year as compensation. |
Hedging | Hedging Generally accepted accounting principles relating to derivative instruments and hedging activities require all derivatives, whether designated in hedging relationships or not, to be recorded on the balance sheet at fair value. These accounting principles also define requirements for designation and documentation of hedging relationships as well as ongoing effectiveness assessments, which must be met in order to qualify for hedge accounting. For a derivative that does not qualify as a hedge, changes in fair value are recorded in earnings immediately. If the derivative is designated as a fair-value hedge, the changes in the fair value of the derivative and the hedged item are recorded in earnings. If the derivative is designated as a cash-flow hedge, effective changes in the fair value of the derivative are recorded in accumulated other comprehensive income (loss), a separate component of equity, and recorded in the income statement only when the hedged item affects earnings. Changes in the fair value of the derivative attributable to hedge ineffectiveness are recorded in earnings immediately. |
Stock-Based Compensation | Stock-Based Compensation Generally accepted accounting principles relating to share-based payments require us to record compensation expense for all awards based on their grant-date fair value. Our share-based payments have generally been in the form of “non-vested shares,” the fair value of which are measured as if they were vested and issued on the grant date. |
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 some of our floorplan arrangements and certain credit agreements had historically used LIBOR as a benchmark for calculating the applicable interest rate, all of our agreements previously utilizing LIBOR have transitioned to an alternative benchmark rate on or before July 1, 2023. These changes have not had a significant impact on our consolidated financial position, results of operations, and cash flows. Segment Reporting In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." This ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss and also requires that public entities provide all annual disclosures about a reportable segment’s profit or loss and assets in interim periods. This ASU is effective for financial statements issued for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures. Income Taxes In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." This ASU expands public entities’ annual income tax disclosures by requiring disclosure of specific categories in the rate reconciliation and disclosure of additional information for reconciling items that meet a quantitative threshold. This ASU is effective for financial statements issued for annual periods beginning after December 15, 2024, with early adoption permitted. The amendments should be applied on a prospective basis with retrospective application permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [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: December 31, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value 3.50% senior subordinated notes due 2025 $ 547.7 $ 529.7 $ 546.2 $ 508.7 3.75% senior subordinated notes due 2029 495.8 444.4 495.1 404.2 Mortgage facilities (1) 402.1 378.5 494.3 462.1 _____________________ (1) In addition to fixed rate debt, our mortgage facilities also include revolving mortgage facilities through Toyota Motor Credit Corporation that bear interest at variable rates. The fair value equals the carrying value. |
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 years ended December 31, 2023, 2022, and 2021 follows: Year Ended December 31, 2023 2022 2021 Weighted average number of common shares outstanding 67,963,956 74,394,799 79,746,106 Effect of non-participatory equity compensation — — — Weighted average number of common shares outstanding, including effect of dilutive securities 67,963,956 74,394,799 79,746,106 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenues | The following tables disaggregate our retail automotive segment revenue by product type and geographic location for the years ended December 31, 2023, 2022, and 2021: Year Ended December 31, Retail Automotive Dealership Revenue 2023 2022 2021 New vehicle $ 11,273.3 $ 10,050.5 $ 9,843.2 Used vehicle 8,919.5 9,011.6 8,549.0 Finance and insurance, net 838.6 848.1 780.5 Service and parts 2,734.3 2,426.7 2,165.6 Fleet and wholesale 1,443.4 1,357.8 1,175.0 Total retail automotive dealership revenue $ 25,209.1 $ 23,694.7 $ 22,513.3 Year Ended December 31, Retail Automotive Dealership Revenue 2023 2022 2021 U.S. $ 14,160.5 $ 13,712.7 $ 13,075.8 U.K. 9,240.4 8,443.4 7,984.1 Germany, Italy, and Japan 1,808.2 1,538.6 1,453.4 Total retail automotive dealership revenue $ 25,209.1 $ 23,694.7 $ 22,513.3 The following table disaggregates our retail commercial truck segment revenue by product type for the years ended December 31, 2023, 2022, and 2021: Year Ended December 31, Retail Commercial Truck Dealership Revenue 2023 2022 2021 New truck $ 2,480.2 $ 2,308.7 $ 1,540.1 Used truck 229.9 301.3 270.6 Finance and insurance, net 21.9 20.5 16.8 Service and parts 907.3 852.2 609.0 Other 45.0 58.6 29.2 Total retail commercial truck dealership revenue $ 3,684.3 $ 3,541.3 $ 2,465.7 |
Schedule of accounts receivable and unearned revenues | The following table summarizes our accounts receivable and unearned revenues as of December 31, 2023, and December 31, 2022: December 31, December 31, Accounts receivable Contracts in transit $ 361.9 $ 281.7 Vehicle receivables 170.6 235.1 Manufacturer receivables 218.9 178.9 Trade receivables 344.1 191.1 Accrued expenses Unearned revenues $ 280.2 $ 291.7 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Summary of net operating lease cost | The following table summarizes our net operating lease cost during the years ended December 31, 2023, 2022, and 2021: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Lease Cost Operating lease cost (1) $ 258.0 $ 254.3 $ 250.1 Sublease income (17.0) (17.9) (22.4) Total lease cost $ 241.0 $ 236.4 $ 227.7 _________________ (1) Includes short-term leases and variable lease costs, which are immaterial. |
Summary of supplemental cash flow information related to operating leases and weighted average remaining lease term and discount rate of leases | The following table summarizes supplemental cash flow information related to our operating leases: Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Other Information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 258.1 248.5 249.6 Right-of-use assets modified or obtained in exchange for operating lease liabilities, net 30.4 116.2 124.2 Supplemental balance sheet information related to the weighted average remaining lease term and discount rate of our leases is as follows: December 31, 2023 December 31, 2022 Lease Term and Discount Rate Weighted-average remaining lease term - operating leases 24 years 25 years Weighted-average discount rate - operating leases 6.7% 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 balance sheet as of December 31, 2023: Maturity of Lease Liabilities December 31, 2023 2024 $ 246.2 2025 240.5 2026 234.8 2027 226.7 2028 221.4 2029 and thereafter 4,127.3 Total future minimum lease payments $ 5,296.9 Less: Imputed interest (2,873.0) Present value of future minimum lease payments $ 2,423.9 Current operating lease liabilities (1) $ 87.9 Long-term operating lease liabilities 2,336.0 Total operating lease liabilities $ 2,423.9 ____________________ (1) Included within "Accrued expenses and other current liabilities" on Consolidated Balance Sheet as of December 31, 2023. |
Equity Method Investees (Tables
Equity Method Investees (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity method investment summarized income statement information | The combined results of operations and financial position of our equity method investees as of December 31 for each of the years presented are summarized as follows: Condensed income statement information: Year Ended December 31, 2023 2022 2021 Revenues $ 13,884.1 $ 13,587.3 $ 11,526.9 Gross profit 2,917.3 3,025.5 2,736.2 Net income 1,008.3 1,701.3 1,272.0 Condensed balance sheet information: December 31, 2023 2022 Current assets $ 2,355.5 $ 2,126.5 Noncurrent assets 20,966.4 17,867.9 Total assets $ 23,321.9 $ 19,994.4 Current liabilities $ 3,140.9 $ 4,110.2 Noncurrent liabilities 15,545.7 11,719.0 Equity 4,635.3 4,165.2 Total liabilities and equity $ 23,321.9 $ 19,994.4 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 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 years ended December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Accounts receivable $ — $ 8.3 Inventories 34.2 111.4 Other current assets 0.2 3.2 Property and equipment 38.7 134.1 Indefinite-lived intangibles 145.2 160.4 Other noncurrent assets — — Current liabilities (3.4) (14.3) Noncurrent liabilities — (9.7) Total cash used in acquisitions $ 214.9 $ 393.4 |
Summary of unaudited consolidated pro forma results of operations | Our following unaudited consolidated pro forma results of operations for the years ended December 31, 2023 and 2022 give effect to acquisitions consummated during 2023 and 2022 as if they had occurred on January 1, 2022. This pro forma information is based on historical results of operations, adjusted for the income statement effects of incremental interest expense directly resulting from the acquisitions and the related tax effects. The pro forma information is not necessarily indicative of the results that would have been achieved had the transactions occurred on the first day of each of the periods presented or that may be achieved in the future: Year Ended December 31, 2023 2022 Revenues $ 29,727.6 $ 28,624.7 Income from continuing operations attributable to Penske Automotive Group common stockholders 1,057.0 1,393.4 Net income attributable to Penske Automotive Group common stockholders 1,057.0 1,393.4 Income from continuing operations per diluted common share $ 15.55 $ 18.73 Net income per diluted common share $ 15.55 $ 18.73 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: December 31, 2023 2022 Retail automotive dealership new vehicles $ 1,951.3 $ 1,326.5 Retail automotive dealership used vehicles 1,186.3 1,279.6 Retail automotive parts, accessories, and other 156.2 145.6 Retail commercial truck dealership vehicles and parts 543.7 506.2 Commercial vehicle distribution vehicles, parts, and engines 455.6 251.2 Total inventories $ 4,293.1 $ 3,509.1 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of components of property and equipment | Property and equipment consisted of the following: December 31, 2023 2022 Buildings and leasehold improvements $ 2,763.2 $ 2,437.9 Furniture, fixtures, and equipment 1,024.1 960.9 Total $ 3,787.3 $ 3,398.8 Less: Accumulated depreciation (1,022.1) (902.3) Property and equipment, net $ 2,765.2 $ 2,496.5 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 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 years ended December 31, 2023, and 2022: Goodwill Other Indefinite-Lived Intangible Balance — December 31, 2021 (1) $ 2,124.1 $ 641.5 Additions 93.8 66.6 Disposals (1.9) (3.7) Foreign currency translation (61.3) (13.5) Balance — December 31, 2022 (1) $ 2,154.7 $ 690.9 Additions 95.9 51.3 Disposals — (0.1) Impairment (40.7) — Foreign currency translation 25.0 6.1 Balance — December 31, 2023 (2) $ 2,234.9 $ 748.2 ____________________ (1) Net of accumulated goodwill impairment losses of $606.3 million recorded prior to December 31, 2012 (2) Net of accumulated goodwill impairment losses of $647.0 million |
Summary of the changes in the carrying amount of goodwill by reportable segment | Following is a summary of the changes in the carrying amount of goodwill by reportable segment during the years ended December 31, 2023, and 2022: Retail Retail Other Total Balance — December 31, 2021 $ 1,622.2 $ 422.3 $ 79.6 $ 2,124.1 Additions 49.9 43.9 — 93.8 Disposals (1.9) — — (1.9) Foreign currency translation (52.6) (3.9) (4.8) (61.3) Balance — December 31, 2022 $ 1,617.6 $ 462.3 $ 74.8 $ 2,154.7 Additions 64.3 29.9 1.7 95.9 Disposals — — — — Impairment (40.7) — — (40.7) Foreign currency translation 22.8 2.1 0.1 25.0 Balance — December 31, 2023 $ 1,664.0 $ 494.3 $ 76.6 $ 2,234.9 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | Long-term debt consisted of the following: December 31, 2023 2022 U.S. credit agreement — revolving credit line $ — $ — U.K. credit agreement — revolving credit line — 24.2 3.50% senior subordinated notes due 2025 547.7 546.2 3.75% senior subordinated notes due 2029 495.8 495.1 Canada credit agreement 81.5 — Australia credit agreement 62.7 21.6 Mortgage facilities 402.1 494.3 Other 39.4 40.7 Total long-term debt $ 1,629.2 $ 1,622.1 Less: current portion (209.7) (75.2) Net long-term debt $ 1,419.5 $ 1,546.9 |
Scheduled maturities of long-term debt for each of the next five years and thereafter | Scheduled maturities of long-term debt for each of the next five years and thereafter are as follows: 2024 $ 209.7 2025 581.5 2026 23.2 2027 37.6 2028 54.1 2029 and thereafter 723.1 Total long-term debt reported $ 1,629.2 |
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 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of automotive joint venture relationships | As of December 31, 2023, our automotive joint venture relationships were as follows: Location Dealerships Ownership Interest Fairfield, Connecticut Audi, Mercedes-Benz, Sprinter, Porsche 80.00% (A) Greenwich, Connecticut Mercedes-Benz 80.00% (A) Northern Italy BMW, MINI, Maserati, Porsche, Audi, Jaguar, Land Rover, Volvo, Mercedes-Benz, smart, Lamborghini 84.10% (A) Frankfurt, Germany Lexus, Toyota, Volkswagen 50.00% (B) Barcelona, Spain BMW, MINI 50.00% (B) _________________ (A) Entity is consolidated in our financial statements. (B) Entity is accounted for using the equity method of accounting. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of the Company's restricted stock activity | Presented below is a summary of the status of our restricted stock as of December 31, 2023 and 2022 and changes during the year ended December 31, 2023: Shares Weighted Average Aggregate December 31, 2021 1,082,844 $ 56.26 Granted 291,832 100.53 Vested (352,585) 53.07 Forfeited (4,071) 62.91 December 31, 2022 1,018,020 $ 70.03 $ 117.0 Granted 210,222 146.48 Vested (399,362) 58.62 Forfeited (5,407) 87.40 December 31, 2023 823,473 $ 94.98 $ 132.2 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of stockholders equity | A summary of shares repurchased under our securities repurchase program, and shares acquired, is as follows: Year Ended December 31, 2023 2022 2021 Shares repurchased (1) 2,640,152 8,065,707 3,112,404 Aggregate purchase price $ 358.7 $ 869.3 $ 280.6 Average purchase price per share $ 135.86 $ 107.78 $ 90.13 Shares acquired (2) 168,464 148,440 149,176 Aggregate purchase price $ 23.5 $ 17.2 $ 12.9 Average purchase price per share $ 139.45 $ 115.97 $ 86.78 ________________________ (1) Shares were repurchased under our securities repurchase program. We had $215.5 million in repurchase authorization remaining under the repurchase program as of December 31, 2023. (2) Shares were acquired from employees in connection with a net share settlement feature of employee equity awards. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 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 years ended December 31, 2023, 2022, and 2021 attributable to Penske Automotive Group common stockholders follows: Foreign Interest Rate Other Accumulated Balance at January 1, 2021 $ (135.5) $ (3.2) $ (21.9) $ (160.6) Other comprehensive income (loss) before reclassifications (38.9) 4.4 27.5 (7.0) Amounts reclassified from accumulated other comprehensive income (loss) — net of tax provision of $0.3 — (1.2) — (1.2) Net current-period other comprehensive income (loss) (38.9) 3.2 27.5 (8.2) Balance at December 31, 2021 $ (174.4) $ — $ 5.6 $ (168.8) Other comprehensive income (loss) before reclassifications (153.7) — (12.8) (166.5) Amounts reclassified from accumulated other comprehensive income (loss) — net of tax — — — — Net current-period other comprehensive income (loss) (153.7) — (12.8) (166.5) Balance at December 31, 2022 $ (328.1) $ — $ (7.2) $ (335.3) Other comprehensive income (loss) before reclassifications 65.5 — 5.7 71.2 Amounts reclassified from accumulated other comprehensive income (loss) — net of tax — — — — Net current-period other comprehensive income (loss) 65.5 — 5.7 71.2 Balance at December 31, 2023 $ (262.6) $ — $ (1.5) $ (264.1) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of income from continuing operations before income taxes by geographic region | Income from continuing operations before income taxes by geographic region was as follows: Year Ended December 31, 2023 2022 2021 U.S. $ 1,119.9 $ 1,474.5 $ 1,242.6 Non-U.S. 299.6 384.7 365.1 Income from continuing operations before income taxes $ 1,419.5 $ 1,859.2 $ 1,607.7 |
Schedule of income taxes relating to income from continuing operations | Income taxes relating to income from continuing operations consisted of the following: Year Ended December 31, 2023 2022 2021 Current: Federal $ 131.0 $ 200.6 $ 115.7 State and local 53.4 71.6 48.1 Non-U.S. 74.7 76.6 67.7 Total current $ 259.1 $ 348.8 $ 231.5 Deferred: Federal 85.5 98.8 129.9 State and local 10.0 17.1 33.9 Non-U.S. 6.3 8.3 21.0 Total deferred $ 101.8 $ 124.2 $ 184.8 Income taxes $ 360.9 $ 473.0 $ 416.3 |
Schedule of reconciliation of income taxes from continuing operations at federal statutory rate | Income taxes relating to income from continuing operations varied from the U.S. federal statutory income tax rate due to the following: Year Ended December 31, 2023 2022 2021 Income taxes at federal statutory rate $ 298.1 $ 390.4 $ 337.6 State and local income taxes, net of federal taxes 47.7 67.3 64.6 Non-U.S. income taxed at other rates 18.2 4.1 11.9 Other (3.1) 11.2 2.2 Income taxes $ 360.9 $ 473.0 $ 416.3 |
Schedule of components of deferred tax assets and liabilities | The components of deferred tax assets and liabilities as of December 31, 2023 and 2022 were as follows: December 31, 2023 2022 Deferred Tax Assets Accrued liabilities $ 77.3 $ 68.9 Net operating loss and credit carryforwards 49.3 50.5 Leasing liabilities 624.8 628.7 Other 36.6 36.6 Total deferred tax assets 788.0 784.7 Valuation allowance (58.2) (62.8) Net deferred tax assets $ 729.8 $ 721.9 Deferred Tax Liabilities Depreciation and amortization (354.2) (314.1) Partnership investments (972.1) (890.4) Leasing assets (624.8) (628.7) Other (10.4) (9.7) Total deferred tax liabilities (1,961.5) (1,842.9) Net deferred tax liabilities $ (1,231.7) $ (1,121.0) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Income statement or balance sheet information by reportable segment | The following table summarizes revenues, gross profit, selling, general, and administrative expenses, floor plan interest expense, other interest expense, depreciation, equity in earnings of affiliates, and income from continuing operations before income taxes, which is the measure of segment performance by which management allocates resources to its segments and which we refer to as segment income, for each of our reportable segments. Retail Retail Commercial Other Non-Automotive Total Revenues 2023 $ 25,209.1 $ 3,684.3 $ 634.0 $ — $ 29,527.4 2022 23,694.7 3,541.3 578.8 — 27,814.8 2021 22,513.3 2,465.7 575.7 — 25,554.7 Gross profit 2023 $ 4,176.2 $ 592.4 $ 165.2 $ — $ 4,933.8 2022 4,126.4 555.1 157.3 — 4,838.8 2021 3,870.2 416.9 153.7 — 4,440.8 Selling, general, and administrative expenses 2023 $ 2,948.8 $ 339.2 $ 112.6 $ — $ 3,400.6 2022 2,790.4 318.3 115.0 — 3,223.7 2021 2,607.3 243.3 112.3 — 2,962.9 Floor plan interest expense 2023 $ 116.0 $ 14.5 $ 2.6 $ — $ 133.1 2022 44.5 7.5 0.4 — 52.4 2021 23.9 1.9 0.4 — 26.2 Other interest expense 2023 $ 90.3 $ 1.3 $ 1.0 $ — $ 92.6 2022 65.1 3.9 1.4 — 70.4 2021 63.8 3.3 1.5 — 68.6 Depreciation 2023 $ 124.7 $ 11.6 $ 4.7 $ — $ 141.0 2022 112.7 10.0 4.6 — 127.3 2021 108.7 7.9 4.9 — 121.5 Equity in earnings of affiliates 2023 $ 3.9 $ — $ — $ 289.8 $ 293.7 2022 3.5 — — 490.7 494.2 2021 8.2 — — 366.3 374.5 Segment income 2023 (1) $ 860.5 $ 225.0 $ 44.2 $ 289.8 $ 1,419.5 2022 1,118.0 214.7 35.8 490.7 1,859.2 2021 1,046.6 160.3 34.5 366.3 1,607.7 __________________________ (1) Retail automotive segment income includes $40.7 million of impairment charges in 2023 related to our Used Vehicle Dealerships International reporting unit. Total assets, equity method investments, and capital expenditures by reportable segment are as set forth in the table below: Retail Retail Commercial Other Non-Automotive Total Total assets 2023 $ 11,408.3 $ 1,690.8 $ 842.0 $ 1,730.4 $ 15,671.5 2022 10,483.3 1,471.9 563.6 1,595.8 14,114.6 Equity method investments 2023 $ 44.5 $ — $ — $ 1,730.4 $ 1,774.9 2022 41.1 — — 1,595.8 1,636.9 Capital expenditures 2023 $ 306.9 $ 60.1 $ 8.3 $ — $ 375.3 2022 245.6 31.2 5.7 — 282.5 2021 239.4 6.3 3.2 — 248.9 |
Schedule of revenue and long-lived assets by geographic area | The following table presents revenue and long-lived assets (all non-current assets except goodwill, other indefinite-lived intangible assets, and operating lease right-of-use assets) by geographic area: Year Ended December 31, 2023 2022 2021 Revenue from external customers: U.S. $ 17,186.5 $ 16,801.7 $ 15,275.9 Non-U.S. 12,340.9 11,013.1 10,278.8 Total revenue from external customers $ 29,527.4 $ 27,814.8 $ 25,554.7 Long-lived assets, net: U.S. $ 3,255.4 $ 3,001.8 Non-U.S. 1,347.8 1,186.9 Total long-lived assets $ 4,603.2 $ 4,188.7 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Business Overview and Concentrations (Details) | Dec. 31, 2023 |
Penske Truck Leasing Co LP | Corporate Joint Venture | |
Summary Of Significant Accounting Policies [Line Items] | |
Ownership percentage | 28.90% |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Retail Automotive (Details) - Retail automotive dealership | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2024 franchise dealership | Dec. 31, 2023 franchise dealership | Dec. 31, 2022 franchise | |
U.S. | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of locations closed | 7 | ||
U.K. | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of locations closed | 5 | ||
Franchised Dealerships | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of Businesses Acquired | 19 | ||
Number of locations operated | 336 | ||
Franchised Dealerships | Outside of the U.S. | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of locations operated | 189 | ||
Franchised Dealerships | U.S. | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of Businesses Acquired | 2 | 4 | |
Number of locations operated | 147 | ||
Number of locations closed | 6 | ||
Franchised Dealerships | U.S. | Ford | Subsequent Event | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of Businesses Acquired | dealership | 1 | ||
Franchised Dealerships | U.S. | Chrysler, Dodge, Jeep, Ram | Subsequent Event | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of Businesses Acquired | dealership | 1 | ||
Franchised Dealerships | U.K. | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of Businesses Acquired | 15 | ||
Number of locations closed | 4 | ||
Franchised Dealerships | U.K. | Rybrook Group Limited | Subsequent Event | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of Businesses Acquired | 16 | ||
Franchised Dealerships | U.K. | BMW | Rybrook Group Limited | Subsequent Event | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of Businesses Acquired | 4 | ||
Franchised Dealerships | U.K. | BMW | Rybrook Group Limited | Subsequent Event | BMW Motorrad Motorcycles | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of Businesses Acquired | 3 | ||
Franchised Dealerships | U.K. | MINI | Rybrook Group Limited | Subsequent Event | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of Businesses Acquired | 4 | ||
Franchised Dealerships | U.K. | Volvo | Rybrook Group Limited | Subsequent Event | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of Businesses Acquired | 4 | ||
Franchised Dealerships | U.K. | Land Rover | Rybrook Group Limited | Subsequent Event | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of Businesses Acquired | 2 | ||
Franchised Dealerships | U.K. | Jaguar | Rybrook Group Limited | Subsequent Event | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of Businesses Acquired | 1 | ||
Franchised Dealerships | U.K. | Porsche | Rybrook Group Limited | Subsequent Event | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of Businesses Acquired | 1 | ||
Franchised Dealerships | Italy | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of Businesses Acquired | 2 | ||
CarShop Used Vehicle Dealerships | U.S. | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of locations operated | dealership | 7 | ||
Number of locations closed | 1 | ||
CarShop Used Vehicle Dealerships | U.S. | Subsequent Event | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of locations closed | 1 | ||
CarShop Used Vehicle Dealerships | U.S. and U.K. | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of locations operated | dealership | 19 | ||
CarShop Used Vehicle Dealerships | U.K. | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of locations operated | dealership | 12 | ||
Number of locations closed | 1 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies - Retail Commercial Truck Dealership (Details) - Retail commercial truck dealership | 1 Months Ended | 12 Months Ended |
Jan. 31, 2024 franchise | Dec. 31, 2023 state location dealership center | |
Summary Of Significant Accounting Policies [Line Items] | ||
Number of locations operated | location | 44 | |
U.S. and Ontario/Manitoba, Canada | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of states with locations | state | 9 | |
Canada | Full-Service Commercial Truck Dealerships | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of Businesses Acquired | dealership | 3 | |
Canada | Service and Parts Centers | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of Businesses Acquired | center | 2 | |
Canada | Subsequent Event | Service and Parts Centers | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of locations closed | franchise | 1 |
Organization and Summary of S_7
Organization and Summary of Significant Accounting Policies - Penske Transportation Solutions (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Penske Truck Leasing Co LP | Penske Corporation | |
Summary Of Significant Accounting Policies [Line Items] | |
Ownership interest in Penske Truck Leasing Company | 41.10% |
Penske Truck Leasing Co LP | Mitsui and Co | |
Summary Of Significant Accounting Policies [Line Items] | |
Ownership interest in Penske Truck Leasing Company | 30% |
Penske Truck Leasing Co LP | Corporate Joint Venture | |
Summary Of Significant Accounting Policies [Line Items] | |
Ownership percentage | 28.90% |
Organization and Summary of S_8
Organization and Summary of Significant Accounting Policies - Contracts in Transit (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Contract Balances | ||
Accounts receivable | $ 1,114.6 | $ 906.7 |
Contracts in transit | ||
Contract Balances | ||
Accounts receivable | $ 361.9 | $ 281.7 |
Organization and Summary of S_9
Organization and Summary of Significant Accounting Policies - Property and Equipment (Details) | Dec. 31, 2023 |
Leasehold improvements and equipment under capital lease | |
Property and equipment | |
Useful life of property and equipment | 40 years |
Minimum | Property and equipment other than leasehold improvements | |
Property and equipment | |
Useful life of property and equipment | 3 years |
Maximum | Property and equipment other than leasehold improvements | |
Property and equipment | |
Useful life of property and equipment | 15 years |
Organization and Summary of _10
Organization and Summary of Significant Accounting Policies - Impairment Testing (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 USD ($) reporting_unit | Sep. 30, 2023 reporting_unit | Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 4 | ||||
Number of reporting units | reporting_unit | 4 | ||||
Goodwill | $ 2,234,900,000 | $ 2,234,900,000 | $ 2,154,700,000 | $ 2,124,100,000 | |
Retail automotive dealership | |||||
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 1 | ||||
Number of reporting units | reporting_unit | 2 | 6 | |||
Goodwill | $ 1,664,000,000 | $ 1,664,000,000 | 1,617,600,000 | 1,622,200,000 | |
Retail commercial truck dealership | |||||
Segment Reporting Information [Line Items] | |||||
Number of reporting units | segment | 1 | ||||
Goodwill | 494,300,000 | $ 494,300,000 | $ 462,300,000 | $ 422,300,000 | |
Non-Automotive Investments | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill | $ 0 | $ 0 |
Organization and Summary of _11
Organization and Summary of Significant Accounting Policies - Investments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Equity Method Investees | ||
Equity method investments | $ 1,774.9 | $ 1,636.9 |
Penske Truck Leasing Co LP | ||
Equity Method Investees | ||
Equity method investments | $ 1,725.1 | $ 1,590.9 |
Organization and Summary of _12
Organization and Summary of Significant Accounting Policies - Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument | |||
Carrying Value | $ 1,629.2 | $ 1,622.1 | |
3.50% senior subordinated notes due 2025 | |||
Debt Instrument | |||
Interest rate | 3.50% | ||
Carrying Value | $ 547.7 | 546.2 | |
Fair Value | $ 529.7 | $ 508.7 | |
3.75% senior subordinated notes due 2029 | |||
Debt Instrument | |||
Interest rate | 3.75% | 3.75% | 3.75% |
Carrying Value | $ 495.8 | $ 495.1 | |
Fair Value | 444.4 | 404.2 | |
Mortgage facilities | |||
Debt Instrument | |||
Carrying Value | 402.1 | 494.3 | |
Fair Value | $ 378.5 | $ 462.1 |
Organization and Summary of _13
Organization and Summary of Significant Accounting Policies - Revenue Recognition (Details) - Finance and insurance, net - Retail Automotive and Retail Commercial Truck Dealership - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue from external customers and Long-lived assets, net | ||
Payment period | 30 days | |
Aggregate reserves relating to chargeback activity | $ 42.7 | $ 38.4 |
Organization and Summary of _14
Organization and Summary of Significant Accounting Policies - Defined Contribution Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Expense incurred relating to defined contribution plans | $ 39.2 | $ 36.1 | $ 31.5 |
Organization and Summary of _15
Organization and Summary of Significant Accounting Policies - Advertising (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Net advertising costs | $ 135.9 | $ 122 | $ 119.2 |
Reimbursement of advertising expense | $ 17.8 | $ 16.4 | $ 15.4 |
Organization and Summary of _16
Organization and Summary of Significant Accounting Policies - Self-Insurance (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Aggregate reserves relating to retained risk | $ 33.2 | $ 34.5 |
Organization and Summary of _17
Organization and Summary of Significant Accounting Policies - Earnings per share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share | |||
Weighted average number of common shares outstanding (in shares) | 67,963,956 | 74,394,799 | 79,746,106 |
Effect of non-participatory equity compensation (in shares) | 0 | 0 | 0 |
Weighted average number of common shares outstanding, including effect of dilutive securities (in shares) | 67,963,956 | 74,394,799 | 79,746,106 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | |||
Total revenues | $ 29,527.4 | $ 27,814.8 | $ 25,554.7 |
Revenue recognized from unearned revenue | $ 220.7 | ||
Commercial vehicle distribution and other | |||
Revenues | |||
Payment period | 30 days | ||
Total revenues | $ 634 | 578.8 | 575.7 |
Retail automotive dealership | |||
Revenues | |||
Total revenues | 25,209.1 | 23,694.7 | 22,513.3 |
Retail automotive dealership | U.K. | |||
Revenues | |||
Total revenues | $ 9,240.4 | 8,443.4 | 7,984.1 |
Dealership 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 | ||
Service and parts | Commercial vehicle distribution and other | |||
Revenues | |||
Total revenues | $ 265.2 | 241 | 242.8 |
Service and parts | Retail automotive dealership | |||
Revenues | |||
Total revenues | $ 2,734.3 | 2,426.7 | 2,165.6 |
Finance and insurance, net | Retail Automotive and Retail Commercial Truck Dealership | |||
Revenues | |||
Payment period | 30 days | ||
Aggregate reserves relating to chargeback activity | $ 42.7 | 38.4 | |
Finance and insurance, net | Retail automotive dealership | |||
Revenues | |||
Total revenues | $ 838.6 | $ 848.1 | $ 780.5 |
Revenues - Retail Automotive De
Revenues - Retail Automotive Dealership (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | |||
Total revenues | $ 29,527.4 | $ 27,814.8 | $ 25,554.7 |
U.S. | |||
Revenues | |||
Total revenues | 17,186.5 | 16,801.7 | 15,275.9 |
Retail automotive dealership | |||
Revenues | |||
Total revenues | 25,209.1 | 23,694.7 | 22,513.3 |
Retail automotive dealership | U.S. | |||
Revenues | |||
Total revenues | 14,160.5 | 13,712.7 | 13,075.8 |
Retail automotive dealership | U.K. | |||
Revenues | |||
Total revenues | 9,240.4 | 8,443.4 | 7,984.1 |
Retail automotive dealership | Germany, Italy, and Japan | |||
Revenues | |||
Total revenues | 1,808.2 | 1,538.6 | 1,453.4 |
New vehicle | Retail automotive dealership | |||
Revenues | |||
Total revenues | 11,273.3 | 10,050.5 | 9,843.2 |
Used vehicle | Retail automotive dealership | |||
Revenues | |||
Total revenues | 8,919.5 | 9,011.6 | 8,549 |
Finance and insurance, net | Retail automotive dealership | |||
Revenues | |||
Total revenues | 838.6 | 848.1 | 780.5 |
Service and parts | Retail automotive dealership | |||
Revenues | |||
Total revenues | 2,734.3 | 2,426.7 | 2,165.6 |
Fleet and wholesale | Retail automotive dealership | |||
Revenues | |||
Total revenues | $ 1,443.4 | $ 1,357.8 | $ 1,175 |
Revenues - Retail Commercial Tr
Revenues - Retail Commercial Truck Dealership (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | |||
Total revenues | $ 29,527.4 | $ 27,814.8 | $ 25,554.7 |
Retail commercial truck dealership | |||
Revenues | |||
Total revenues | 3,684.3 | 3,541.3 | 2,465.7 |
New vehicle | Retail commercial truck dealership | |||
Revenues | |||
Total revenues | 2,480.2 | 2,308.7 | 1,540.1 |
Used vehicle | Retail commercial truck dealership | |||
Revenues | |||
Total revenues | 229.9 | 301.3 | 270.6 |
Finance and insurance, net | Retail commercial truck dealership | |||
Revenues | |||
Total revenues | 21.9 | 20.5 | 16.8 |
Service and parts | Retail commercial truck dealership | |||
Revenues | |||
Total revenues | 907.3 | 852.2 | 609 |
Other | Retail commercial truck dealership | |||
Revenues | |||
Total revenues | $ 45 | $ 58.6 | $ 29.2 |
Revenues - Contract Balances (D
Revenues - Contract Balances (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Contract Balances | ||
Accounts receivable | $ 1,114.6 | $ 906.7 |
Unearned revenues | 280.2 | 291.7 |
Contracts in transit | ||
Contract Balances | ||
Accounts receivable | 361.9 | 281.7 |
Vehicle receivables | ||
Contract Balances | ||
Accounts receivable | 170.6 | 235.1 |
Manufacturer receivables | ||
Contract Balances | ||
Accounts receivable | 218.9 | 178.9 |
Trade receivables | ||
Contract Balances | ||
Accounts receivable | $ 344.1 | $ 191.1 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases | |||
Total undiscounted rent obligations | $ 5,296.9 | ||
Sublease rent received | $ (17) | $ (17.9) | $ (22.4) |
Land and Building | Minimum | |||
Leases | |||
Initial lease period (in years) | 5 years | ||
Land and Building | Maximum | |||
Leases | |||
Initial lease period (in years) | 20 years | ||
Equipment | Maximum | |||
Leases | |||
Initial lease period (in years) | 5 years |
Leases - Net operating lease co
Leases - Net operating lease cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lease Cost | |||
Operating lease cost | $ 258 | $ 254.3 | $ 250.1 |
Sublease income | (17) | (17.9) | (22.4) |
Total lease cost | $ 241 | $ 236.4 | $ 227.7 |
Leases - Cash flow information,
Leases - Cash flow information, weighted average remaining term and discount rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash flows from operating leases | $ 258.1 | $ 248.5 | $ 249.6 |
Right-of-use assets modified or obtained in exchange for operating lease liabilities, net | $ 30.4 | $ 116.2 | $ 124.2 |
Weighted-average remaining lease term - operating leases | 24 years | 25 years | |
Weighted-average discount rate - operating leases | 6.70% | 6.50% |
Leases - Maturity of lease liab
Leases - Maturity of lease liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Maturity of Lease Liabilities | ||
2024 | $ 246.2 | |
2025 | 240.5 | |
2026 | 234.8 | |
2027 | 226.7 | |
2028 | 221.4 | |
2029 and thereafter | 4,127.3 | |
Total future minimum lease payments | 5,296.9 | |
Less: Imputed interest | (2,873) | |
Present value of future minimum lease payments | 2,423.9 | |
Current operating lease liabilities | 87.9 | |
Long-term operating lease liabilities | $ 2,336 | $ 2,335.7 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and other current liabilities | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Liabilities |
Equity Method Investees - Narra
Equity Method Investees - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity Method Investees | |||
Equity method investments | $ 1,774.9 | $ 1,636.9 | |
Equity in earnings of affiliates | 293.7 | 494.2 | $ 374.5 |
Equity method investment, distribution | 169.9 | 356.6 | 169.7 |
Retained earnings, undistributed earnings from equity method investees | $ 845.5 | ||
The Nix Group | |||
Equity Method Investees | |||
Ownership percentage | 50% | ||
Barcelona Premium SL | |||
Equity Method Investees | |||
Ownership percentage | 50% | ||
Penske Commercial Leasing Australia | Corporate Joint Venture | |||
Equity Method Investees | |||
Ownership percentage | 28% | ||
Penske Truck Leasing Co LP | |||
Equity Method Investees | |||
Equity method investments | $ 1,725.1 | 1,590.9 | |
Penske Truck Leasing Co LP | Corporate Joint Venture | |||
Equity Method Investees | |||
Ownership percentage | 28.90% | ||
Pro rata quarterly distributions, percentage of net income | 50% | ||
Debt-to-equity ratio | 3 | ||
Distribution threshold, percentage of net income | 0.80 | ||
Equity method investment, distribution | $ 168.8 | $ 356.6 | $ 165.5 |
Equity Method Investees - Combi
Equity Method Investees - Combination of Operations and Financial Position (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Income Statement Information | ||||
Gross profit | $ 4,933.8 | $ 4,838.8 | $ 4,440.8 | |
Net income | 1,058.6 | 1,386.2 | 1,192.7 | |
Condensed Balance Sheet Information | ||||
Current assets | 5,679.7 | 4,664.2 | ||
Total assets | 15,671.5 | 14,114.6 | ||
Current liabilities | 5,657.9 | 4,713.1 | ||
Equity | 4,755.6 | 4,174.8 | 4,095 | $ 3,326.1 |
Total liabilities and equity | 15,671.5 | 14,114.6 | ||
Equity method investees | ||||
Condensed Income Statement Information | ||||
Revenues | 13,884.1 | 13,587.3 | 11,526.9 | |
Gross profit | 2,917.3 | 3,025.5 | 2,736.2 | |
Net income | 1,008.3 | 1,701.3 | $ 1,272 | |
Condensed Balance Sheet Information | ||||
Current assets | 2,355.5 | 2,126.5 | ||
Noncurrent assets | 20,966.4 | 17,867.9 | ||
Total assets | 23,321.9 | 19,994.4 | ||
Current liabilities | 3,140.9 | 4,110.2 | ||
Noncurrent liabilities | 15,545.7 | 11,719 | ||
Equity | 4,635.3 | 4,165.2 | ||
Total liabilities and equity | $ 23,321.9 | $ 19,994.4 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 USD ($) franchise shop center dealership | Dec. 31, 2022 franchise dealership | |
Business Acquisition [Line Items] | ||
Revenue from date of acquisition of companies acquired | $ | $ 146.6 | |
Pre-tax income from date of acquisition of companies acquired | $ | $ 5.1 | |
Retail automotive dealership | Franchised Dealerships | ||
Business Acquisition [Line Items] | ||
Number of Businesses Acquired | 19 | |
Canada | Retail commercial truck dealership | Full-Service Commercial Truck Dealerships | ||
Business Acquisition [Line Items] | ||
Number of Businesses Acquired | dealership | 3 | |
Number of full service dealerships acquired | dealership | 4 | |
Canada | Retail commercial truck dealership | Service and Parts Centers | ||
Business Acquisition [Line Items] | ||
Number of Businesses Acquired | center | 2 | |
U.S. | Retail automotive dealership | Franchised Dealerships | ||
Business Acquisition [Line Items] | ||
Number of Businesses Acquired | 2 | 4 |
Italy | Retail automotive dealership | Franchised Dealerships | ||
Business Acquisition [Line Items] | ||
Number of Businesses Acquired | 2 | |
Italy | Retail automotive dealership | Body Shops | ||
Business Acquisition [Line Items] | ||
Number of Businesses Acquired | shop | 1 | |
AUSTRALIA | Commercial vehicle distribution and other | Service Centers | ||
Business Acquisition [Line Items] | ||
Number of Businesses Acquired | center | 1 | |
U.K. | Retail automotive dealership | Franchised Dealerships | ||
Business Acquisition [Line Items] | ||
Number of Businesses Acquired | 15 |
Business Combinations - Conside
Business Combinations - Consideration Paid and Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Summary of the aggregate consideration paid and the aggregate amounts of the assets acquired and liabilities assumed | ||
Accounts receivable | $ 0 | $ 8.3 |
Inventories | 34.2 | 111.4 |
Other current assets | 0.2 | 3.2 |
Property and equipment | 38.7 | 134.1 |
Indefinite-lived intangibles | 145.2 | 160.4 |
Other noncurrent assets | 0 | 0 |
Current liabilities | (3.4) | (14.3) |
Noncurrent liabilities | 0 | (9.7) |
Total cash used in acquisitions | $ 214.9 | $ 393.4 |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Summary of unaudited consolidated pro forma results of operations | ||
Revenues | $ 29,727.6 | $ 28,624.7 |
Income from continuing operations attributable to Penske Automotive Group common stockholders | 1,057 | 1,393.4 |
Net income attributable to Penske Automotive Group common stockholders | $ 1,057 | $ 1,393.4 |
Income from continuing operations per diluted common share (in dollars per share) | $ 15.55 | $ 18.73 |
Net income per diluted common share (in dollars per share) | $ 15.55 | $ 18.73 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory [Line Items] | ||
Total inventories | $ 4,293.1 | $ 3,509.1 |
Retail automotive dealership new vehicles | ||
Inventory [Line Items] | ||
Total inventories | 1,951.3 | 1,326.5 |
Retail automotive dealership used vehicles | ||
Inventory [Line Items] | ||
Total inventories | 1,186.3 | 1,279.6 |
Retail automotive parts, accessories, and other | ||
Inventory [Line Items] | ||
Total inventories | 156.2 | 145.6 |
Retail commercial truck dealership vehicles and parts | ||
Inventory [Line Items] | ||
Total inventories | 543.7 | 506.2 |
Commercial vehicle distribution vehicles, parts, and engines | ||
Inventory [Line Items] | ||
Total inventories | $ 455.6 | $ 251.2 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |||
Interest credits and advertising assistance | $ 49.1 | $ 53.3 | $ 63.7 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Components of Property and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Property and equipment | ||
Total | $ 3,787.3 | $ 3,398.8 |
Less: Accumulated depreciation | (1,022.1) | (902.3) |
Property and equipment, net | 2,765.2 | 2,496.5 |
Buildings and leasehold improvements | ||
Property and equipment | ||
Total | 2,763.2 | 2,437.9 |
Furniture, fixtures, and equipment | ||
Property and equipment | ||
Total | $ 1,024.1 | $ 960.9 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Buildings and leasehold improvements | ||
Property and equipment | ||
Capitalized interest included in buildings and leasehold improvements | $ 30.9 | $ 30.1 |
Intangible Assets - Changes in
Intangible Assets - Changes in the Carrying Amount of Goodwill and Other Indefinite-Lived Intangibles (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2012 | |
Goodwill | ||||
Beginning balance | $ 2,154,700,000 | $ 2,124,100,000 | ||
Additions | 95,900,000 | 93,800,000 | ||
Disposals | 0 | (1,900,000) | ||
Impairment | (40,700,000) | 0 | $ 0 | |
Foreign currency translation | 25,000,000 | (61,300,000) | ||
Ending balance | 2,234,900,000 | 2,154,700,000 | 2,124,100,000 | |
Other Indefinite-Lived Intangible Assets | ||||
Beginning Balance | 690,900,000 | 641,500,000 | ||
Additions | 51,300,000 | 66,600,000 | ||
Disposals | (100,000) | (3,700,000) | ||
Impairment | 0 | 0 | ||
Foreign currency translation | 6,100,000 | (13,500,000) | ||
Ending Balance | 748,200,000 | $ 690,900,000 | $ 641,500,000 | |
Goodwill, accumulated impairment loss | $ 647,000,000 | $ 606,300,000 |
Intangible Assets - Changes i_2
Intangible Assets - Changes in the Carrying Amount of Goodwill by Reportable Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill | |||
Beginning balance | $ 2,154.7 | $ 2,124.1 | |
Additions | 95.9 | 93.8 | |
Disposals | 0 | (1.9) | |
Impairment | (40.7) | 0 | $ 0 |
Foreign currency translation | 25 | (61.3) | |
Ending balance | 2,234.9 | 2,154.7 | 2,124.1 |
Retail automotive dealership | |||
Goodwill | |||
Beginning balance | 1,617.6 | 1,622.2 | |
Additions | 64.3 | 49.9 | |
Disposals | 0 | (1.9) | |
Impairment | (40.7) | ||
Foreign currency translation | 22.8 | (52.6) | |
Ending balance | 1,664 | 1,617.6 | 1,622.2 |
Retail commercial truck dealership | |||
Goodwill | |||
Beginning balance | 462.3 | 422.3 | |
Additions | 29.9 | 43.9 | |
Disposals | 0 | 0 | |
Impairment | 0 | ||
Foreign currency translation | 2.1 | (3.9) | |
Ending balance | 494.3 | 462.3 | 422.3 |
Other | |||
Goodwill | |||
Beginning balance | 74.8 | 79.6 | |
Additions | 1.7 | 0 | |
Disposals | 0 | 0 | |
Impairment | 0 | ||
Foreign currency translation | 0.1 | (4.8) | |
Ending balance | $ 76.6 | $ 74.8 | $ 79.6 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Other Indefinite-Lived Intangible Assets [Line Items] | |||
Goodwill, impairment | $ (40,700,000) | $ 0 | $ 0 |
Impairment of intangible assets | 0 | 0 | |
Goodwill | 2,234,900,000 | $ 2,154,700,000 | $ 2,124,100,000 |
Non-Automotive Investments | |||
Goodwill and Other Indefinite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 0 |
Vehicle Financing (Details)
Vehicle Financing (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument, Redemption [Line Items] | |||
Maturity period of floor plan arrangements outside the U.S. if not payable on demand | 90 days | ||
Floor Plan Notes Payable | |||
Debt Instrument, Redemption [Line Items] | |||
Weighted average interest rate on floor plan borrowings (as a percent) | 4.50% | 1.90% | 0.90% |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt Instruments (Details) $ in Millions, $ in Millions, $ in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2023 GBP (£) | Dec. 31, 2023 CAD ($) | Dec. 31, 2023 AUD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 |
Debt Instrument | ||||||
Total long-term debt | $ 1,629.2 | $ 1,622.1 | ||||
Less: current portion | (209.7) | (75.2) | ||||
Net long-term debt | 1,419.5 | 1,546.9 | ||||
U.S. credit agreement — revolving credit line | ||||||
Debt Instrument | ||||||
Total long-term debt | 0 | 0 | ||||
U.K. credit agreement — revolving credit line | ||||||
Debt Instrument | ||||||
Total long-term debt | $ 0 | £ 0 | 24.2 | |||
3.50% senior subordinated notes due 2025 | ||||||
Debt Instrument | ||||||
Interest rate | 3.50% | 3.50% | 3.50% | 3.50% | ||
Total long-term debt | $ 547.7 | $ 546.2 | ||||
3.75% senior subordinated notes due 2029 | ||||||
Debt Instrument | ||||||
Interest rate | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% |
Total long-term debt | $ 495.8 | $ 495.1 | ||||
Canada credit agreement | ||||||
Debt Instrument | ||||||
Total long-term debt | 81.5 | $ 108 | 0 | |||
Australia credit agreement | ||||||
Debt Instrument | ||||||
Total long-term debt | 62.7 | $ 92 | 21.6 | |||
Mortgage facilities | ||||||
Debt Instrument | ||||||
Total long-term debt | 402.1 | 494.3 | ||||
Other | ||||||
Debt Instrument | ||||||
Total long-term debt | $ 39.4 | $ 40.7 |
Long-Term Debt - Schedules Matu
Long-Term Debt - Schedules Maturities of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
2024 | $ 209.7 | |
2025 | 581.5 | |
2026 | 23.2 | |
2027 | 37.6 | |
2028 | 54.1 | |
2029 and thereafter | 723.1 | |
Total long-term debt | $ 1,629.2 | $ 1,622.1 |
Long-Term Debt - U.S. Credit Ag
Long-Term Debt - U.S. Credit Agreement (Details) - USD ($) $ in Millions | Apr. 20, 2023 | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument | |||
Long-term debt | $ 1,629.2 | $ 1,622.1 | |
U.S. credit agreement — revolving credit line | |||
Debt Instrument | |||
Maximum credit available | $ 1,200 | ||
Maximum amount available for letters of credit | 75 | ||
Future borrowings available for foreign acquisitions | $ 400 | ||
Long-term debt | $ 0 | $ 0 | |
U.S. credit agreement — revolving credit line | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument | |||
Line of credit basis spread on variable rate (as a percent) | 1.50% | ||
Uncollateralized Borrowings in Excess of Defined Borrowings | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument | |||
Line of credit basis spread on variable rate (as a percent) | 3% |
Long-Term Debt - U.K. Credit Ag
Long-Term Debt - U.K. Credit Agreement (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2024 | Dec. 31, 2023 USD ($) | Dec. 31, 2023 GBP (£) | Dec. 05, 2023 GBP (£) | Dec. 04, 2023 GBP (£) | Dec. 31, 2022 USD ($) | |
Debt Instrument | ||||||
Long-term debt | $ | $ 1,629.2 | $ 1,622.1 | ||||
U.K. credit agreement — revolving credit line | ||||||
Debt Instrument | ||||||
Maximum capital expenditures permitted | £ 150,000,000 | £ 100,000,000 | ||||
Maximum credit available | £ 200,000,000 | |||||
Additional facility capacity under accordion feature | 100,000,000 | |||||
Long-term debt | $ 0 | £ 0 | $ 24.2 | |||
U.K. credit agreement — revolving credit line | Subsequent Event | ||||||
Debt Instrument | ||||||
Extended term | 1 year | |||||
U.K. credit agreement — revolving credit line | Minimum | Sterling Overnight Index Average (SONIA) | ||||||
Debt Instrument | ||||||
Line of credit basis spread on variable rate (as a percent) | 1.10% | |||||
U.K. credit agreement — revolving credit line | Maximum | Sterling Overnight Index Average (SONIA) | ||||||
Debt Instrument | ||||||
Line of credit basis spread on variable rate (as a percent) | 2.10% |
Long-Term Debt - Senior Subordi
Long-Term Debt - Senior Subordinated Notes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
3.50% senior subordinated notes due 2025 | |||
Debt Instrument | |||
Interest rate | 3.50% | ||
Principal amount | $ 550 | ||
3.75% senior subordinated notes due 2029 | |||
Debt Instrument | |||
Interest rate | 3.75% | 3.75% | 3.75% |
Principal amount | $ 500 | ||
3.75% senior subordinated notes due 2029 | Debt Redemption, Prior To June 15, 2024 | |||
Debt Instrument | |||
Percentage of principal amount at which the entity may redeem the notes | 100% | ||
Specified equity offerings, percentage of debt which may be redeemed | 103.75% | ||
3.75% senior subordinated notes due 2029 | Debt Redemption, Prior To June 15, 2024 | Maximum | |||
Debt Instrument | |||
Percentage of principal amount at which the entity may redeem the notes | 40% | ||
Senior Subordinated Notes | |||
Debt Instrument | |||
Domestic subsidiaries ownership guaranteeing obligations | 100% | ||
Change of control, redemption price as a percentage of principal | 101% | ||
Sale of assets, redemption price as percentage of principal | 100% |
Long-Term Debt - Canada Credit
Long-Term Debt - Canada Credit Agreements (Details) $ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument | |||
Long-term debt | $ 1,629.2 | $ 1,622.1 | |
Canada credit agreement | |||
Debt Instrument | |||
Maximum credit available | $ 150 | ||
Long-term debt | $ 81.5 | $ 108 | $ 0 |
Canada credit agreement | Canadian Prime Rate | |||
Debt Instrument | |||
Line of credit basis spread on variable rate, increase (decrease) (as a percent) | (0.50%) | ||
Canada credit agreement | Canadian Prime Rate | Maximum | |||
Debt Instrument | |||
Line of credit basis spread on variable rate, increase (decrease) (as a percent) | 2% |
Long-Term Debt - Australia Cred
Long-Term Debt - Australia Credit Agreement (Details) $ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 AUD ($) | Nov. 30, 2023 AUD ($) | Oct. 31, 2023 AUD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument | |||||
Long-term debt | $ 1,629.2 | $ 1,622.1 | |||
Australia credit agreement | |||||
Debt Instrument | |||||
Maximum credit available | $ 100 | $ 75 | |||
Call period | 6 months | ||||
Line of credit basis spread on variable rate (as a percent) | 2.29% | ||||
Long-term debt | $ 62.7 | $ 92 | $ 21.6 | ||
Australia credit agreement | Australian BBSW 30-Day Bill Rate | |||||
Debt Instrument | |||||
Base rate of interest on loans | 30-day Bill Rate |
Long-Term Debt - Mortgage Facil
Long-Term Debt - Mortgage Facilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument | ||
Long-term debt | $ 1,629.2 | $ 1,622.1 |
Revolving Mortgage Facility | ||
Debt Instrument | ||
Maximum credit available | 300 | |
Current borrowing capacity | 252.3 | |
Long-term debt | $ 10 | |
Revolving Mortgage Facility | Prime Rate | ||
Debt Instrument | ||
Line of credit basis spread on variable rate, increase (decrease) (as a percent) | (1.68%) | |
Mortgage facilities | ||
Debt Instrument | ||
Long-term debt | $ 402.1 | $ 494.3 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense for land and facilities | $ 247.9 | $ 243.3 | $ 237.9 |
Aggregate rent currently guaranteed by the Company | 95.2 | ||
Letters of credit outstanding | 25.2 | ||
Bank guarantees | 19.8 | ||
Surety bonds posted | $ 30.3 |
Related Party Transactions - Tr
Related Party Transactions - Transactions (Details) $ in Thousands | 12 Months Ended | |||
Dec. 22, 2023 USD ($) | Dec. 31, 2023 USD ($) member | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Related party transactions | ||||
Revenues | $ 29,527,400 | $ 27,814,800 | $ 25,554,700 | |
Equity method investment, distribution | $ 169,900 | 356,600 | 169,700 | |
Don Allen Auto Service | ||||
Related party transactions | ||||
Stock purchase agreement, cash purchase price | $ 12,340 | |||
Penske Corporation | Penske Truck Leasing Co LP | ||||
Related party transactions | ||||
Ownership interest in Penske Truck Leasing Company | 41.10% | |||
Mitsui and Co | Penske Truck Leasing Co LP | ||||
Related party transactions | ||||
Ownership interest in Penske Truck Leasing Company | 30% | |||
Related Party | ||||
Related party transactions | ||||
Expenses | $ 5,300 | 5,100 | 6,700 | |
Revenues | 1,300 | 1,300 | 38 | |
Receivables | 44 | 50 | ||
Payables | $ 500 | 600 | ||
Corporate Joint Venture | Penske Truck Leasing Co LP | ||||
Related party transactions | ||||
Ownership percentage | 28.90% | |||
Number of members on the advisory board | member | 11 | |||
Number of members on the advisory committee the Company is entitled to | member | 1 | |||
Pro rata quarterly distributions, percentage of net income | 50% | |||
Partnership interest that my be transferred without complying with the right of first offer | 9.02% | |||
Equity method investment, distribution | $ 168,800 | $ 356,600 | $ 165,500 | |
Corporate Joint Venture | Penske Truck Leasing Co LP | ||||
Related party transactions | ||||
Purchases of trucks and parts | 42,300 | |||
Corporate Joint Venture | Premier Truck Group | ||||
Related party transactions | ||||
Purchases of trucks and parts | $ 2,700 |
Related Party Transactions - Jo
Related Party Transactions - Joint venture Relationships (Details) | Dec. 31, 2023 |
Penske Truck Leasing Co LP | Corporate Joint Venture | |
Related party transactions | |
Ownership percentage | 28.90% |
Penske Commercial Leasing Australia | Corporate Joint Venture | |
Related party transactions | |
Ownership percentage | 28% |
Fairfield, Connecticut | Audi, Mercedes-Benz, Sprinter, Porsche | |
Related party transactions | |
Ownership percentage of consolidated entity | 80% |
Greenwich, Connecticut | Mercedes-Benz | |
Related party transactions | |
Ownership percentage of consolidated entity | 80% |
Northern Italy | BMW, MINI, Maserati, Porsche, Audi, Jaguar, Land Rover, Volvo, Mercedes-Benz, smart, Lamborghini | |
Related party transactions | |
Ownership percentage of consolidated entity | 84.10% |
Frankfurt, Germany | Lexus, Toyota, Volkswagen | |
Related party transactions | |
Ownership percentage | 50% |
Barcelona, Spain | BMW, MINI | |
Related party transactions | |
Ownership percentage | 50% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Compensation expense related to the Plan | $ 27.9 | $ 25.5 | $ 23.1 |
Restricted Stock | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Number of shares granted (in shares) | 210,222 | 291,832 | 439,633 |
Period over which forfeiture and non-transferable restrictions lapse | 4 years | ||
Unrecognized compensation cost related to the restricted stock | $ 44.2 | ||
Restricted Stock | Share-Based Payment Arrangement, Tranche One | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Award vesting rights, percentage | 15% | ||
Restricted Stock | Share-Based Payment Arrangement, Tranche Two | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Award vesting rights, percentage | 15% | ||
Restricted Stock | Share-Based Payment Arrangement, Tranche Three | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Award vesting rights, percentage | 20% | ||
Restricted Stock | Share-Based Payment Arrangement, Tranche Four | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Award vesting rights, percentage | 50% | ||
2020 Plan | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Maximum number of shares authorized under the plan (in shares) | 5,000,000 | ||
Number of shares of common stock available for grant under the plan (in shares) | 3,944,430 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Activity (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Shares | |||
Balance at the beginning of the period (in shares) | 1,018,020 | 1,082,844 | |
Granted (in shares) | 210,222 | 291,832 | 439,633 |
Vested (in shares) | (399,362) | (352,585) | |
Forfeited (in shares) | (5,407) | (4,071) | |
Balance at the end of the period (in shares) | 823,473 | 1,018,020 | 1,082,844 |
Weighted Average Grant Date Fair Value | |||
Balance at the beginning of the period (in dollars per share) | $ 70.03 | $ 56.26 | |
Granted (in dollars per share) | 146.48 | 100.53 | |
Vested (in dollars per share) | 58.62 | 53.07 | |
Forfeited (in dollars per share) | 87.40 | 62.91 | |
Balance at the end of the period (in dollars per share) | $ 94.98 | $ 70.03 | $ 56.26 |
Aggregate Intrinsic Value | |||
Balance at the end of the period | $ 132.2 | $ 117 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Securities Repurchase Program | |||
Repurchases of common stock | $ 385.2 | $ 886.5 | $ 293.5 |
Securities Repurchase Program | |||
Securities Repurchase Program | |||
Repurchases of common stock (in shares) | 2,640,152 | 8,065,707 | 3,112,404 |
Repurchases of common stock | $ 358.7 | $ 869.3 | $ 280.6 |
Repurchased shares, average price (in dollars per share) | $ 135.86 | $ 107.78 | $ 90.13 |
Amount authorized to be repurchased | $ 215.5 | ||
Acquired Employee Equity Awards | |||
Securities Repurchase Program | |||
Repurchases of common stock (in shares) | 168,464 | 148,440 | 149,176 |
Repurchases of common stock | $ 23.5 | $ 17.2 | $ 12.9 |
Repurchased shares, average price (in dollars per share) | $ 139.45 | $ 115.97 | $ 86.78 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 4,174.8 | $ 4,095 | $ 3,326.1 |
Other comprehensive income (loss), net of tax | 71.8 | (167.4) | (9.1) |
Ending balance | 4,755.6 | 4,174.8 | 4,095 |
Amount reclassified from accumulated other comprehensive income (loss), net of tax provision (benefit) | 0 | 0 | 0.3 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (335.3) | (168.8) | (160.6) |
Other comprehensive income (loss) before reclassifications | 71.2 | (166.5) | (7) |
Amounts reclassified from accumulated other comprehensive income (loss) - net of tax provision | 0 | 0 | (1.2) |
Other comprehensive income (loss), net of tax | 71.2 | (166.5) | (8.2) |
Ending balance | (264.1) | (335.3) | (168.8) |
Foreign Currency Translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (328.1) | (174.4) | (135.5) |
Other comprehensive income (loss) before reclassifications | 65.5 | (153.7) | (38.9) |
Amounts reclassified from accumulated other comprehensive income (loss) - net of tax provision | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 65.5 | (153.7) | (38.9) |
Ending balance | (262.6) | (328.1) | (174.4) |
Interest Rate Swaps | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 0 | 0 | (3.2) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 4.4 |
Amounts reclassified from accumulated other comprehensive income (loss) - net of tax provision | 0 | 0 | (1.2) |
Other comprehensive income (loss), net of tax | 0 | 0 | 3.2 |
Ending balance | 0 | 0 | 0 |
Other | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (7.2) | 5.6 | (21.9) |
Other comprehensive income (loss) before reclassifications | 5.7 | (12.8) | 27.5 |
Amounts reclassified from accumulated other comprehensive income (loss) - net of tax provision | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 5.7 | (12.8) | 27.5 |
Ending balance | $ (1.5) | $ (7.2) | $ 5.6 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income from Continuing Operations Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income from continuing operations before income taxes by geographic region | |||
U.S. | $ 1,119.9 | $ 1,474.5 | $ 1,242.6 |
Non-U.S. | 299.6 | 384.7 | 365.1 |
Income from continuing operations before income taxes | $ 1,419.5 | $ 1,859.2 | $ 1,607.7 |
Income Taxes - Schedule of In_2
Income Taxes - Schedule of Income Taxes Relating to Income from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 131 | $ 200.6 | $ 115.7 |
State and local | 53.4 | 71.6 | 48.1 |
Non-U.S. | 74.7 | 76.6 | 67.7 |
Total current | 259.1 | 348.8 | 231.5 |
Deferred: | |||
Federal | 85.5 | 98.8 | 129.9 |
State and local | 10 | 17.1 | 33.9 |
Non-U.S. | 6.3 | 8.3 | 21 |
Total deferred | 101.8 | 124.2 | 184.8 |
Income taxes | $ 360.9 | $ 473 | $ 416.3 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at federal statutory rate | $ 298.1 | $ 390.4 | $ 337.6 |
State and local income taxes, net of federal taxes | 47.7 | 67.3 | 64.6 |
Non-U.S. income taxed at other rates | 18.2 | 4.1 | 11.9 |
Other | (3.1) | 11.2 | 2.2 |
Income taxes | $ 360.9 | $ 473 | $ 416.3 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Tax Assets | ||
Accrued liabilities | $ 77.3 | $ 68.9 |
Net operating loss and credit carryforwards | 49.3 | 50.5 |
Leasing liabilities | 624.8 | 628.7 |
Other | 36.6 | 36.6 |
Total deferred tax assets | 788 | 784.7 |
Valuation allowance | (58.2) | (62.8) |
Net deferred tax assets | 729.8 | 721.9 |
Deferred Tax Liabilities | ||
Depreciation and amortization | (354.2) | (314.1) |
Partnership investments | (972.1) | (890.4) |
Leasing assets | (624.8) | (628.7) |
Other | (10.4) | (9.7) |
Total deferred tax liabilities | (1,961.5) | (1,842.9) |
Net deferred tax liabilities | $ (1,231.7) | $ (1,121) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax [Line Items] | |||
Amount of total temporary difference related to the excess of financial reporting basis over tax basis in the non-U.S. subsidiaries on which U.S. federal income taxes are not provided | $ 352,800,000 | ||
Valuation allowance against deferred tax assets | 58,200,000 | $ 62,800,000 | |
Interest and penalties included within uncertain tax positions | 0 | ||
Uncertain tax positions at the end of the period | $ 500,000 | $ 500,000 | |
State and Local Jurisdiction | |||
Income Tax [Line Items] | |||
Net operating loss carryforwards | 108,900,000 | ||
Net operating loss carryforwards utilized | 17,300,000 | ||
Valuation allowance against net operating loss carryforwards | 700,000 | ||
Domestic Tax Authority | |||
Income Tax [Line Items] | |||
Valuation allowance against tax credit carryforwards | 32,000,000 | ||
Domestic Tax Authority | Foreign Carryforward | |||
Income Tax [Line Items] | |||
Tax credit carryforwards | 32,000,000 | ||
U.K. Tax Authority | |||
Income Tax [Line Items] | |||
Valuation allowance against deferred tax assets | 23,100,000 | ||
U.K. Tax Authority | Capital loss carryforwards | |||
Income Tax [Line Items] | |||
Tax credit carryforwards | 6,400,000 | ||
Germany Tax Authority | |||
Income Tax [Line Items] | |||
Net operating loss carryforwards | 29,100,000 | ||
Valuation allowance against net operating losses and other deferred tax assets | 2,400,000 | ||
Italy Tax Authority | |||
Income Tax [Line Items] | |||
Net operating loss carryforwards | $ 100,000 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 reporting_unit | Sep. 30, 2023 reporting_unit | Dec. 31, 2023 segment | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 4 | ||
Number of reporting units | reporting_unit | 4 | ||
Retail automotive dealership | |||
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 1 | ||
Number of reporting units | reporting_unit | 2 | 6 |
Segment Information - Revenues
Segment Information - Revenues and Segment Income by Reportable Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 29,527.4 | $ 27,814.8 | $ 25,554.7 |
Gross profit | 4,933.8 | 4,838.8 | 4,440.8 |
Selling, general and administrative expenses | 3,400.6 | 3,223.7 | 2,962.9 |
Floor plan interest expense | 133.1 | 52.4 | 26.2 |
Other interest expense | 92.6 | 70.4 | 68.6 |
Depreciation | 141 | 127.3 | 121.5 |
Equity in earnings of affiliates | 293.7 | 494.2 | 374.5 |
Income from continuing operations before income taxes | 1,419.5 | 1,859.2 | 1,607.7 |
Impairment charges | 40.7 | 0 | 0 |
Retail automotive dealership | |||
Segment Reporting Information [Line Items] | |||
Revenues | 25,209.1 | 23,694.7 | 22,513.3 |
Impairment charges | 40.7 | ||
Retail commercial truck dealership | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,684.3 | 3,541.3 | 2,465.7 |
Impairment charges | 0 | ||
Other | |||
Segment Reporting Information [Line Items] | |||
Impairment charges | 0 | ||
Operating segments | Retail automotive dealership | |||
Segment Reporting Information [Line Items] | |||
Revenues | 25,209.1 | 23,694.7 | 22,513.3 |
Gross profit | 4,176.2 | 4,126.4 | 3,870.2 |
Selling, general and administrative expenses | 2,948.8 | 2,790.4 | 2,607.3 |
Floor plan interest expense | 116 | 44.5 | 23.9 |
Other interest expense | 90.3 | 65.1 | 63.8 |
Depreciation | 124.7 | 112.7 | 108.7 |
Equity in earnings of affiliates | 3.9 | 3.5 | 8.2 |
Income from continuing operations before income taxes | 860.5 | 1,118 | 1,046.6 |
Operating segments | Retail commercial truck dealership | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,684.3 | 3,541.3 | 2,465.7 |
Gross profit | 592.4 | 555.1 | 416.9 |
Selling, general and administrative expenses | 339.2 | 318.3 | 243.3 |
Floor plan interest expense | 14.5 | 7.5 | 1.9 |
Other interest expense | 1.3 | 3.9 | 3.3 |
Depreciation | 11.6 | 10 | 7.9 |
Equity in earnings of affiliates | 0 | 0 | 0 |
Income from continuing operations before income taxes | 225 | 214.7 | 160.3 |
Operating segments | Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | 634 | 578.8 | 575.7 |
Gross profit | 165.2 | 157.3 | 153.7 |
Selling, general and administrative expenses | 112.6 | 115 | 112.3 |
Floor plan interest expense | 2.6 | 0.4 | 0.4 |
Other interest expense | 1 | 1.4 | 1.5 |
Depreciation | 4.7 | 4.6 | 4.9 |
Equity in earnings of affiliates | 0 | 0 | 0 |
Income from continuing operations before income taxes | 44.2 | 35.8 | 34.5 |
Operating segments | Non-Automotive Investments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 |
Floor plan interest expense | 0 | 0 | 0 |
Other interest expense | 0 | 0 | 0 |
Depreciation | 0 | 0 | 0 |
Equity in earnings of affiliates | 289.8 | 490.7 | 366.3 |
Income from continuing operations before income taxes | $ 289.8 | $ 490.7 | $ 366.3 |
Segment Information - Total Ass
Segment Information - Total Assets, Equity Method Investments, and Capital Expenditures by Reportable Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Total assets | $ 15,671.5 | $ 14,114.6 | |
Equity method investments | 1,774.9 | 1,636.9 | |
Capital expenditures | 375.3 | 282.5 | $ 248.9 |
Operating segments | Retail automotive dealership | |||
Segment Reporting Information [Line Items] | |||
Total assets | 11,408.3 | 10,483.3 | |
Equity method investments | 44.5 | 41.1 | |
Capital expenditures | 306.9 | 245.6 | 239.4 |
Operating segments | Retail commercial truck dealership | |||
Segment Reporting Information [Line Items] | |||
Total assets | 1,690.8 | 1,471.9 | |
Equity method investments | 0 | 0 | |
Capital expenditures | 60.1 | 31.2 | 6.3 |
Operating segments | Other | |||
Segment Reporting Information [Line Items] | |||
Total assets | 842 | 563.6 | |
Equity method investments | 0 | 0 | |
Capital expenditures | 8.3 | 5.7 | 3.2 |
Operating segments | Non-Automotive Investments | |||
Segment Reporting Information [Line Items] | |||
Total assets | 1,730.4 | 1,595.8 | |
Equity method investments | 1,730.4 | 1,595.8 | |
Capital expenditures | $ 0 | $ 0 | $ 0 |
Segment Information - Revenue a
Segment Information - Revenue and Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from external customers and Long-lived assets, net | |||
Revenues | $ 29,527.4 | $ 27,814.8 | $ 25,554.7 |
Long-lived assets, net | 4,603.2 | 4,188.7 | |
U.S. | |||
Revenue from external customers and Long-lived assets, net | |||
Revenues | 17,186.5 | 16,801.7 | 15,275.9 |
Long-lived assets, net | 3,255.4 | 3,001.8 | |
Outside of the U.S. | |||
Revenue from external customers and Long-lived assets, net | |||
Revenues | 12,340.9 | 11,013.1 | $ 10,278.8 |
Long-lived assets, net | $ 1,347.8 | $ 1,186.9 |
Schedule II VALUATION AND QUA_2
Schedule II VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for doubtful accounts | |||
Valuation and qualifying accounts | |||
Balance at Beginning of Year | $ 6.6 | $ 6.8 | $ 5.5 |
Additions | 2.2 | 3.7 | 4.8 |
Deductions, Recoveries, & Other | (2) | (3.9) | (3.5) |
Balance at End of Year | 6.8 | 6.6 | 6.8 |
Tax valuation allowance | |||
Valuation and qualifying accounts | |||
Balance at Beginning of Year | 62.8 | 67 | 64.2 |
Additions | 3.4 | 0.6 | 6.4 |
Deductions, Recoveries, & Other | (8) | (4.8) | (3.6) |
Balance at End of Year | $ 58.2 | $ 62.8 | $ 67 |