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SEC Filings

10-K
PENSKE AUTOMOTIVE GROUP, INC. filed this Form 10-K on 02/24/2017
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PENSKE AUTOMOTIVE GROUP, INC.

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

 

(In millions, except share and per share amounts)

 

                  the sale is probable and transfer is expected to be completed within one year;

                  the entity is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and

                  actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

 

In April 2014, the FASB issued ASU No. 2014-08 that changed the definition of a discontinued operation to include only those disposals of components of an entity or components of an entity that are classified as held for sale that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. We adopted this accounting standard update effective January 1, 2015.

 

Prior to the adoption of ASU No. 2014-08, we accounted for dispositions as discontinued operations when it was evident that the operations and cash flows of an entity being disposed of would be eliminated from ongoing operations and we would not have any significant continuing involvement in its operations. The results of operations for those entities that were classified as discontinued operations prior to adoption of ASU No. 2014-08 are included in “Loss from discontinued operations” in the accompanying Consolidated Statements of Income for all periods presented and will continue to be reported within discontinued operations in the future. Beginning with disposals or entities classified as held for sale subsequent to January 1, 2015, only those that represent a strategic shift that has, or will have, a major impact on our operations and financial results will be included in discontinued operations.

 

We had no entities newly classified as held for sale in 2016 or 2015 that met the criteria to be classified as discontinued operations. As such, the combined financial information presented below represents only retail automotive dealerships and our car rental business that were classified as discontinued operations prior to adoption of ASU No. 2014-08:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

2016

    

2015

    

2014

 

Revenues

 

$

24.8

 

$

75.8

 

$

206.8

 

Pre-tax loss

 

 

(1.7)

 

 

(6.7)

 

 

(31.5)

 

Pre-tax gain on disposal

 

 

 —

 

 

2.9

 

 

14.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

2016

    

2015

 

Inventories

 

$

4.6

 

$

6.2

 

Other assets

 

 

3.7

 

 

6.5

 

Total assets

 

$

8.3

 

$

12.7

 

Floor plan notes payable (including non-trade)

 

$

4.8

 

$

4.3

 

Other liabilities

 

 

1.3

 

 

1.9

 

Total liabilities

 

$

6.1

 

$

6.2

 

 

 

Divestitures

 

In 2016, we disposed of ten retail automotive franchises, closed one retail commercial truck dealership and one retail commercial truck parts location, and transitioned seventeen retail automotive franchises which represented the Scion brand to our existing Toyota franchises. The results of operations for two of the retail automotive franchises are included in discontinued operations for the years ended December 31, 2016, 2015, and 2014. The remaining retail automotive franchises and retail commercial truck dealership and parts locations did not meet the criteria to be classified as held for sale and treated as discontinued operations; therefore, the results of operations for these businesses are included within continuing operations for the years ended December 31, 2016, 2015, and 2014.

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