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SEC Filings

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

Table of Contents

 

PENSKE AUTOMOTIVE GROUP, INC.

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

 

(In millions, except share and per share amounts)

 

7. 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, 2016 and 2015, net of accumulated impairment losses recorded prior to December 31, 2012 of $606.3 million and $37.1 million, respectively:

 

 

 

 

 

 

 

 

 

 

    

 

 

    

Other Indefinite‑

 

 

 

 

 

 

Lived Intangible

 

 

 

Goodwill

 

Assets

 

Balance — December 31, 2014

 

$

1,270.8

 

$

386.6

 

Additions

 

 

83.7

 

 

31.9

 

Foreign currency translation

 

 

(31.3)

 

 

(10.5)

 

Balance — December 31, 2015

 

$

1,323.2

 

$

408.0

 

Additions

 

 

24.9

 

 

26.2

 

Disposals

 

 

(1.7)

 

 

(0.3)

 

Foreign currency translation

 

 

(55.1)

 

 

(13.8)

 

Balance — December 31, 2016

 

$

1,291.3

 

$

420.1

 

 

 

Goodwill for our Retail Automotive reportable segment was $1,050.3 million and $1,095.7 million for the years ended December 31, 2016 and 2015, respectively. The changes to goodwill during 2016 represented additions of $9.8 million, disposals of $0.2 million, and adjustments for foreign currency translation of $55.0 million. The changes to goodwill during 2015 represented additions of $63.9 million and adjustments for foreign currency translation of $23.5 million. The additions in 2016 and 2015 related to our dealership acquisitions during those years.

 

Goodwill for our Retail Commercial Truck reportable segment was $162.0 million and $147.5 million for the years ended December 31, 2016 and 2015, respectively. The changes to goodwill during 2016 represented additions of $15.1 million and adjustments for foreign currency translation of $0.6 million. The changes to goodwill during 2015 represented additions of $19.8 million. The additions in 2016 and 2015 related to our dealership acquisitions during those years.

 

Goodwill for our Other reportable segment was $79.0 million and $80.0 million for the years ended December 31, 2016 and 2015, respectively. The changes to goodwill during 2016 and 2015 represented adjustments for foreign currency translation, and in 2016 related to a disposal associated with our sale of i.M. Branded in December 2016, as discussed previously.

There is no goodwill recorded in our Non-Automotive Investments reportable segment.

We test for impairment of our intangible assets at least annually. We did not record any impairment charges relating to our intangible assets in 2016, 2015 or 2014.

 

8. 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.

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