SUPPLEMENTAL GUARANTOR INFORMATION | SUPPLEMENTAL GUARANTOR INFORMATION TransDigm Inc.’s 2020 Notes, 2022 Notes, 2024 Notes, 2025 Notes and 6.375% 2026 Notes are jointly and severally guaranteed, on a senior subordinated basis, by TD Group, TransDigm UK Holdings plc ("TransDigm UK") and TransDigm Inc.’s Domestic Restricted Subsidiaries, as defined in the applicable Indentures. TransDigm UK's 6.875% 2026 Notes are jointly and severally guaranteed, on a senior subordinated basis, by TD Group, TransDigm Inc. and TransDigm Inc.'s Domestic Restricted Subsidiaries as defined in the applicable indenture. The following supplemental condensed consolidating financial information presents, in separate columns, the balance sheets of the Company as of December 29, 2018 and September 30, 2018 and its statements of income and comprehensive income and cash flows for the thirteen week period s ended December 29, 2018 and December 30, 2017 for (i) TransDigm Group on a parent only basis with its investment in subsidiaries recorded under the equity method, (ii) TransDigm Inc. including its directly owned operations and non-operating entities, excluding TransDigm UK, (iii) TransDigm UK (iv) the Subsidiary Guarantors (other than TransDigm UK) on a combined basis, (v) Non-Guarantor Subsidiaries and (vi) the Company on a consolidated basis. Separate financial statements of TransDigm Inc. are not presented because TransDigm Inc.’s 2020 Notes, 2022 Notes, 2024 Notes, 2025 Notes and 6.375% 2026 Notes are fully and unconditionally guaranteed on a senior subordinated basis by TD Group, TransDigm UK and all of TransDigm Inc's Domestic Restricted Subsidiaries and because TD Group has no significant operations or assets separate from its investment in TransDigm Inc. Separate financial statements of TransDigm UK are not presented because TransDigm UK's 6.875% 2026 Notes, issued in May 2018, are fully and unconditionally guaranteed on a senior subordinated basis by TD Group, TransDigm Inc. and all of TransDigm Inc.'s Domestic Restricted Subsidiaries. TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 29, 2018 (Amounts in thousands) TransDigm Group TransDigm Inc. TransDigm UK Subsidiary Guarantors Non- Guarantor Subsidiaries Eliminations Total Consolidated ASSETS CURRENT ASSETS: Cash and cash equivalents $ 6,540 $ 2,231,849 $ 268 $ (1,219 ) $ 99,878 $ — $ 2,337,316 Trade accounts receivable - Net — — — 5,704 651,980 — 657,684 Inventories - Net — 46,203 — 672,103 124,856 (4,457 ) 838,705 Prepaid expenses and other — 51,813 — 27,749 13,351 — 92,913 Total current assets 6,540 2,329,865 268 704,337 890,065 (4,457 ) 3,926,618 INVESTMENT IN SUBSIDIARIES AND INTERCOMPANY BALANCES (1,673,433 ) 10,345,860 1,104,265 9,609,274 2,178,915 (21,564,881 ) — PROPERTY, PLANT AND EQUIPMENT - NET — 15,541 — 320,898 59,531 — 395,970 GOODWILL — 82,924 — 5,472,406 673,583 — 6,228,913 OTHER INTANGIBLE ASSETS - NET — 26,131 — 1,508,131 238,292 — 1,772,554 DERIVATIVE ASSETS — 26,044 — — — — 26,044 OTHER — 3,807 — 29,269 6,103 — 39,179 TOTAL ASSETS $ (1,666,893 ) $ 12,830,172 $ 1,104,533 $ 17,644,315 $ 4,046,489 $ (21,569,338 ) $ 12,389,278 LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY CURRENT LIABILITIES: Current portion of long-term debt $ — $ 75,847 $ — $ — $ — $ — $ 75,847 Short-term borrowings - trade receivable securitization facility — — — — 299,662 — 299,662 Accounts payable — 17,374 — 118,609 40,027 — 176,010 Accrued liabilities — 204,918 4,298 130,885 59,646 — 399,747 Total current liabilities — 298,139 4,298 249,494 399,335 — 951,266 LONG-TERM DEBT — 12,016,665 490,951 — — — 12,507,616 DEFERRED INCOME TAXES — 318,839 — (264 ) 56,473 — 375,048 OTHER NON-CURRENT LIABILITIES — 100,454 — 99,567 22,220 — 222,241 Total liabilities — 12,734,097 495,249 348,797 478,028 — 14,056,171 STOCKHOLDERS’ (DEFICIT) EQUITY (1,666,893 ) 96,075 609,284 17,295,518 3,568,461 (21,569,338 ) (1,666,893 ) TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY $ (1,666,893 ) $ 12,830,172 $ 1,104,533 $ 17,644,315 $ 4,046,489 $ (21,569,338 ) $ 12,389,278 TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING BALANCE SHEET AS OF SEPTEMBER 30, 2018 (Amounts in thousands) TransDigm Group TransDigm Inc. TransDigm UK Subsidiary Guarantors Non- Guarantor Subsidiaries Eliminations Total Consolidated ASSETS CURRENT ASSETS: Cash and cash equivalents $ 389 $ 1,821,437 $ 125 $ (1,763 ) $ 252,829 $ — $ 2,073,017 Trade accounts receivable - Net — — — 40,916 663,394 — 704,310 Inventories - Net — 45,262 — 648,574 115,913 (4,457 ) 805,292 Prepaid expenses and other — 16,231 — 47,020 11,417 — 74,668 Total current assets 389 1,882,930 125 734,747 1,043,553 (4,457 ) 3,657,287 INVESTMENT IN SUBSIDIARIES AND INTERCOMPANY BALANCES (1,808,860 ) 10,459,497 1,099,886 8,928,726 2,160,236 (20,839,485 ) — PROPERTY, PLANT AND EQUIPMENT - NET — 15,562 — 319,567 53,204 — 388,333 GOODWILL — 97,002 — 5,466,148 660,140 — 6,223,290 OTHER INTANGIBLE ASSETS - NET — 31,362 — 1,514,983 242,059 — 1,788,404 DERIVATIVE ASSETS — 97,286 — — — — 97,286 OTHER — 7,347 — 29,805 5,715 — 42,867 TOTAL ASSETS $ (1,808,471 ) $ 12,590,986 $ 1,100,011 $ 16,993,976 $ 4,164,907 $ (20,843,942 ) $ 12,197,467 LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY CURRENT LIABILITIES: Current portion of long-term debt $ — $ 75,817 $ — $ — $ — $ — $ 75,817 Short-term borrowings - trade receivable securitization facility — — — — 299,519 — 299,519 Accounts payable — 18,470 — 115,735 39,398 — 173,603 Accrued liabilities — 118,600 13,274 162,618 56,951 — 351,443 Total current liabilities — 212,887 13,274 278,353 395,868 — 900,382 LONG-TERM DEBT — 12,011,166 490,780 — — — 12,501,946 DEFERRED INCOME TAXES — 345,357 — (2,329 ) 56,468 — 399,496 OTHER NON-CURRENT LIABILITIES — 77,573 — 104,829 21,712 — 204,114 Total liabilities — 12,646,983 504,054 380,853 474,048 — 14,005,938 STOCKHOLDERS’ (DEFICIT) EQUITY (1,808,471 ) (55,997 ) 595,957 16,613,123 3,690,859 (20,843,942 ) (1,808,471 ) TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY $ (1,808,471 ) $ 12,590,986 $ 1,100,011 $ 16,993,976 $ 4,164,907 $ (20,843,942 ) $ 12,197,467 TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME FOR THE THIRTEEN WEEK PERIOD ENDED DECEMBER 29, 2018 (Amounts in thousands) TransDigm Group TransDigm Inc. TransDigm UK Subsidiary Guarantors Non- Guarantor Subsidiaries Eliminations Total Consolidated NET SALES $ — $ 41,264 $ — $ 809,513 $ 161,595 $ (19,070 ) $ 993,302 COST OF SALES — 22,971 — 338,473 86,811 (19,070 ) 429,185 GROSS PROFIT — 18,293 — 471,040 74,784 — 564,117 SELLING AND ADMINISTRATIVE EXPENSES — 41,432 — 64,214 16,537 — 122,183 AMORTIZATION OF INTANGIBLE ASSETS — 230 — 17,753 2,051 — 20,034 (LOSS) INCOME FROM OPERATIONS — (23,369 ) — 389,073 56,196 — 421,900 INTEREST EXPENSE (INCOME) - NET — 175,634 4,672 323 (8,629 ) — 172,000 REFINANCING COSTS — 136 — — — — 136 EQUITY IN INCOME OF SUBSIDIARIES (196,042 ) (324,644 ) — — — 520,686 — INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 196,042 125,505 (4,672 ) 388,750 64,825 (520,686 ) 249,764 INCOME TAX PROVISION — (70,537 ) — 118,607 5,652 — 53,722 INCOME FROM CONTINUING OPERATIONS 196,042 196,042 (4,672 ) 270,143 59,173 (520,686 ) 196,042 INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX — — — — — — — NET INCOME $ 196,042 $ 196,042 $ (4,672 ) $ 270,143 $ 59,173 $ (520,686 ) $ 196,042 OTHER COMPREHENSIVE INCOME, NET OF TAX (85,093 ) (73,864 ) — 11,816 (13,085 ) 75,133 (85,093 ) TOTAL COMPREHENSIVE INCOME $ 110,949 $ 122,178 $ (4,672 ) $ 281,959 $ 46,088 $ (445,553 ) $ 110,949 TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME FOR THE THIRTEEN WEEK PERIOD ENDED DECEMBER 30, 2017 (Amounts in thousands) TransDigm Group TransDigm Inc. TransDigm UK Subsidiary Guarantors Non- Guarantor Subsidiaries Eliminations Total Consolidated NET SALES $ — $ 36,128 $ — $ 685,362 $ 145,530 $ (19,060 ) $ 847,960 COST OF SALES — 19,964 — 277,662 91,387 (17,703 ) 371,310 GROSS PROFIT — 16,164 — 407,700 54,143 (1,357 ) 476,650 SELLING AND ADMINISTRATIVE EXPENSES — 24,519 — (85,640 ) 165,430 2,219 106,528 AMORTIZATION OF INTANGIBLE ASSETS — 357 — 14,693 2,062 — 17,112 (LOSS) INCOME FROM OPERATIONS — (8,712 ) — 478,647 (113,349 ) (3,576 ) 353,010 INTEREST EXPENSE (INCOME) - NET — 165,860 — 281 (5,208 ) — 160,933 REFINANCING COSTS — 1,113 — — — — 1,113 EQUITY IN INCOME OF SUBSIDIARIES (314,775 ) (309,919 ) — — — 624,694 — INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 314,775 134,234 — 478,366 (108,141 ) (628,270 ) 190,964 INCOME TAX PROVISION — (180,541 ) — 54,938 4,556 — (121,047 ) INCOME FROM CONTINUING OPERATIONS 314,775 314,775 — 423,428 (112,697 ) (628,270 ) 312,011 INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX — — — 1,686 1,078 — 2,764 NET INCOME $ 314,775 $ 314,775 $ — $ 425,114 $ (111,619 ) $ (628,270 ) $ 314,775 OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX 23,400 18,932 — 8,975 13,419 (41,326 ) 23,400 TOTAL COMPREHENSIVE INCOME $ 338,175 $ 333,707 $ — $ 434,089 $ (98,200 ) $ (669,596 ) $ 338,175 TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THIRTEEN WEEK PERIOD ENDED DECEMBER 29, 2018 (Amounts in thousands) TransDigm Group TransDigm Inc. TransDigm UK Subsidiary Guarantors Non- Guarantor Subsidiaries Eliminations Total Consolidated NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES $ — $ (19,362 ) $ (106 ) $ 284,915 $ 64,441 $ — $ 329,888 INVESTING ACTIVITIES: Capital expenditures — (623 ) — (19,110 ) (4,072 ) — (23,805 ) Payments made in connection with acquisitions — — — (28,718 ) — — (28,718 ) Net cash used in investing activities — (623 ) — (47,828 ) (4,072 ) — (52,523 ) FINANCING ACTIVITIES: Intercompany activities 16,286 430,458 448 (236,543 ) (210,649 ) — — Proceeds from exercise of stock options 14,174 — — — — — 14,174 Dividend equivalent payments (24,309 ) — — — — — (24,309 ) Other — (61 ) (199 ) — — — (260 ) Net cash provided by (used in) financing activities 6,151 430,397 249 (236,543 ) (210,649 ) — (10,395 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS — — — — (2,671 ) — (2,671 ) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 6,151 410,412 143 544 (152,951 ) — 264,299 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 389 1,821,437 125 (1,763 ) 252,829 — 2,073,017 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 6,540 $ 2,231,849 $ 268 $ (1,219 ) $ 99,878 $ — $ 2,337,316 TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THIRTEEN WEEK PERIOD ENDED DECEMBER 30, 2017 (Amounts in thousands) TransDigm Group TransDigm Inc. TransDigm UK Subsidiary Guarantors Non- Guarantor Subsidiaries Eliminations Total Consolidated NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES $ — $ (157,604 ) $ — $ 482,518 $ (30,324 ) $ (1,779 ) $ 292,811 INVESTING ACTIVITIES: Capital expenditures — (268 ) — (13,836 ) (1,186 ) — (15,290 ) Net cash used in investing activities — (268 ) — (13,836 ) (1,186 ) — (15,290 ) FINANCING ACTIVITIES: Intercompany activities 50,213 499,177 — (468,165 ) (83,004 ) 1,779 — Proceeds from exercise of stock options 7,290 — — — — — 7,290 Special dividend and dividend equivalent payments (56,148 ) — — — — — (56,148 ) Proceeds from term loans, net — 793,864 — — — — 793,864 Repayment on term loans — (815,631 ) — — — — (815,631 ) Other (279 ) (83 ) — — — — (362 ) Net cash provided by (used in) financing activities 1,076 477,327 — (468,165 ) (83,004 ) 1,779 (70,987 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS — — — — 767 — 767 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,076 319,455 — 517 (113,747 ) — 207,301 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 2,416 439,473 — (203 ) 208,875 — 650,561 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 3,492 $ 758,928 $ — $ 314 $ 95,128 $ — $ 857,862 |