SUPPLEMENTAL GUARANTOR INFORMATION | SUPPLEMENTAL GUARANTOR INFORMATION TransDigm Inc.’s 2022 Notes, 2024 Notes, 2025 Notes, 6.375% 2026 Notes, 2026 Secured Notes and 2027 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 March 30, 2019 and September 30, 2018 and its statements of income and comprehensive income and cash flows for the twenty-six week period s ended March 30, 2019 and March 31, 2018 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 2022 Notes, 2024 Notes, 2025 Notes, 6.375% 2026 Notes, 2026 Secured Notes and 2027 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 MARCH 30, 2019 (Amounts in thousands) TransDigm Group TransDigm Inc. TransDigm UK Subsidiary Guarantors Non- Guarantor Subsidiaries Eliminations Total Consolidated ASSETS CURRENT ASSETS: Cash and cash equivalents $ 143 $ 1,412,477 $ 268 $ (9,432 ) $ 1,037,880 $ — $ 2,441,336 Restricted cash — — — — 387,566 — 387,566 Trade accounts receivable - Net — — — 226,948 914,507 (206 ) 1,141,249 Inventories - Net — 48,057 — 935,060 483,481 (13,554 ) 1,453,044 Prepaid expenses and other — 60,143 — 62,136 50,055 — 172,334 Total current assets 143 1,520,677 268 1,214,712 2,873,489 (13,760 ) 5,595,529 INVESTMENT IN SUBSIDIARIES AND INTERCOMPANY BALANCES (1,491,921 ) 20,091,568 1,108,369 9,532,453 3,872,214 (33,112,683 ) — PROPERTY, PLANT AND EQUIPMENT - NET — 47,827 — 464,012 225,760 — 737,599 GOODWILL — 82,924 — 5,984,217 2,547,175 — 8,614,316 OTHER INTANGIBLE ASSETS - NET — 25,908 — 1,692,863 1,005,681 — 2,724,452 DEFERRED INCOME TAXES — — — 7 38,965 — 38,972 OTHER — 34,347 — 28,757 23,184 — 86,288 TOTAL ASSETS $ (1,491,778 ) $ 21,803,251 $ 1,108,637 $ 18,917,021 $ 10,586,468 $ (33,126,443 ) $ 17,797,156 LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY CURRENT LIABILITIES: Current portion of long-term debt $ — $ 75,847 $ — $ 1,712 $ 370,604 $ — $ 448,163 Short-term borrowings - trade receivable securitization facility — — — 299,806 — 299,806 Accounts payable — 22,416 — 168,195 127,975 — 318,586 Accrued liabilities — 219,766 12,891 205,790 221,191 — 659,638 Total current liabilities — 318,029 12,891 375,697 1,019,576 — 1,726,193 LONG-TERM DEBT — 15,918,829 491,118 58,242 40,992 — 16,509,181 DEFERRED INCOME TAXES — 577,615 — 19 80,541 — 658,175 OTHER NON-CURRENT LIABILITIES — 218,538 — 100,104 67,212 — 385,854 Total liabilities — 17,033,011 504,009 534,062 1,208,321 — 19,279,403 TD GROUP STOCKHOLDERS' (DEFICIT) EQUITY (1,491,778 ) 4,770,240 604,628 18,380,603 9,370,972 (33,126,443 ) (1,491,778 ) NONCONTROLLING INTEREST — — — 2,356 7,175 — 9,531 TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY $ (1,491,778 ) $ 21,803,251 $ 1,108,637 $ 18,917,021 $ 10,586,468 $ (33,126,443 ) $ 17,797,156 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 Restricted cash — — — — — — — 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 DEFERRED INCOME TAXES — — — — — — — OTHER — 104,633 — 29,805 5,715 — 140,153 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 TD GROUP STOCKHOLDERS' (DEFICIT) EQUITY (1,808,471 ) (55,997 ) 595,957 16,613,123 3,690,859 (20,843,942 ) (1,808,471 ) NONCONTROLLING INTEREST — — — — — — — 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 TWENTY-SIX WEEK PERIOD ENDED MARCH 30, 2019 (Amounts in thousands) TransDigm Group TransDigm Inc. TransDigm UK Subsidiary Guarantors Non- Guarantor Subsidiaries Eliminations Total Consolidated NET SALES $ — $ 87,851 $ — $ 1,763,478 $ 398,233 $ (60,322 ) $ 2,189,240 COST OF SALES — 65,713 — 730,086 230,326 (60,322 ) 965,803 GROSS PROFIT — 22,138 — 1,033,392 167,907 — 1,223,437 SELLING AND ADMINISTRATIVE EXPENSES — 100,789 — 148,575 37,185 — 286,549 AMORTIZATION OF INTANGIBLE ASSETS — 2,043 — 35,462 5,592 — 43,097 (LOSS) INCOME FROM OPERATIONS — (80,694 ) — 849,355 125,130 — 893,791 INTEREST EXPENSE (INCOME) - NET — 377,799 9,070 (2,701 ) (10,759 ) — 373,409 REFINANCING COSTS — 3,173 261 — — — 3,434 EQUITY IN INCOME OF SUBSIDIARIES (398,450 ) (726,217 ) — — — 1,124,667 — INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 398,450 264,551 (9,331 ) 852,056 135,889 (1,124,667 ) 516,948 INCOME TAX PROVISION — (133,899 ) — 233,647 18,526 — 118,274 INCOME (LOSS) FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST 398,450 398,450 (9,331 ) 618,409 117,363 (1,124,667 ) 398,674 NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — — (224 ) — (224 ) NET INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO TD GROUP 398,450 398,450 (9,331 ) 618,409 117,139 (1,124,667 ) 398,450 (LOSS) INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX — — — — — — — NET INCOME (LOSS) ATTRIBUTABLE TO TD GROUP $ 398,450 $ 398,450 $ (9,331 ) $ 618,409 $ 117,139 $ (1,124,667 ) $ 398,450 OTHER COMPREHENSIVE (LOSS) INCOME, NET OF TAX (161,137 ) (122,925 ) — 11,599 (98,634 ) 209,960 (161,137 ) TOTAL COMPREHENSIVE INCOME (LOSS) $ 237,313 $ 275,525 $ (9,331 ) $ 630,008 $ 18,505 $ (914,707 ) $ 237,313 TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME FOR THE TWENTY-SIX WEEK PERIOD ENDED MARCH 31, 2018 (Amounts in thousands) TransDigm Group TransDigm Inc. TransDigm UK Subsidiary Guarantors Non- Guarantor Subsidiaries Eliminations Total Consolidated NET SALES $ — $ 77,215 $ — $ 1,441,477 $ 301,750 $ (39,412 ) $ 1,781,030 COST OF SALES — 43,858 — 577,494 188,366 (39,412 ) 770,306 GROSS PROFIT — 33,357 — 863,983 113,384 — 1,010,724 SELLING AND ADMINISTRATIVE EXPENSES — 48,893 — 103,779 61,382 — 214,054 AMORTIZATION OF INTANGIBLE ASSETS — 714 — 29,709 4,146 — 34,569 (LOSS) INCOME FROM OPERATIONS — (16,250 ) — 730,495 47,856 — 762,101 INTEREST EXPENSE (INCOME) - NET — 318,138 — (2 ) 4,063 — 322,199 REFINANCING COSTS — 1,751 — — — — 1,751 EQUITY IN INCOME OF SUBSIDIARIES (511,053 ) (562,544 ) — — — 1,073,597 — INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 511,053 226,405 — 730,497 43,793 (1,073,597 ) 438,151 INCOME TAX PROVISION — (284,648 ) — 202,265 6,683 — (75,700 ) INCOME FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST 511,053 511,053 — 528,232 37,110 (1,073,597 ) 513,851 NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — — — — — NET INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO TD GROUP 511,053 511,053 — 528,232 37,110 (1,073,597 ) 513,851 (LOSS) INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX — — — (17,869 ) 15,071 — (2,798 ) NET INCOME ATTRIBUTABLE TO TD GROUP $ 511,053 $ 511,053 $ — $ 510,363 $ 52,181 $ (1,073,597 ) $ 511,053 OTHER COMPREHENSIVE INCOME, NET OF TAX 91,662 64,166 — 9,719 55,674 (129,559 ) 91,662 TOTAL COMPREHENSIVE INCOME $ 602,715 $ 575,219 $ — $ 520,082 $ 107,855 $ (1,203,156 ) $ 602,715 TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE TWENTY-SIX WEEK PERIOD ENDED MARCH 30, 2019 (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 $ — $ (64,040 ) $ 4,424 $ 468,801 $ 34,900 $ 8,912 $ 452,997 INVESTING ACTIVITIES: Capital expenditures — (1,827 ) — (36,175 ) (5,402 ) — (43,404 ) Payments made in connection with acquisitions, net of cash acquired — (3,538,128 ) — (31,250 ) — — (3,569,378 ) Net cash used in investing activities — (3,539,955 ) — (67,425 ) (5,402 ) — (3,612,782 ) FINANCING ACTIVITIES: Intercompany activities (23,013 ) (701,197 ) (4,281 ) (407,292 ) 1,144,695 (8,912 ) — Proceeds from exercise of stock options 47,126 — — — — — 47,126 Dividend equivalent payments (24,309 ) — — — — — (24,309 ) Repayment on term loans — (38,214 ) — — — — (38,214 ) Cash tender and redemption of 2020 Notes — (550,000 ) — — — — (550,000 ) Proceeds from 2027 Notes, net — 544,578 — — — — 544,578 Proceeds from 2026 Secured Notes, net — 3,937,398 — — — — 3,937,398 Financing Fees and Other — 2,470 — (1,753 ) (2,470 ) — (1,753 ) Net cash (used in) provided by financing activities (196 ) 3,195,035 (4,281 ) (409,045 ) 1,142,225 (8,912 ) 3,914,826 EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (50 ) — — — 894 — 844 (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (246 ) (408,960 ) 143 (7,669 ) 1,172,617 — 755,885 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 389 1,821,437 125 (1,763 ) 252,829 — 2,073,017 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD $ 143 $ 1,412,477 $ 268 $ (9,432 ) $ 1,425,446 $ — $ 2,828,902 TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE TWENTY-SIX WEEK PERIOD ENDED MARCH 31, 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 $ — $ (157,892 ) $ — $ 578,789 $ 29,807 $ 2,980 $ 453,684 INVESTING ACTIVITIES: Capital expenditures — (826 ) — (27,370 ) (2,688 ) — (30,884 ) Payments made in connection with acquisitions, net of cash acquired — (50,320 ) — — — — (50,320 ) Proceeds in connection with sale of discontinued operations — 57,686 — — — — 57,686 Net cash provided by (used in) investing activities — 6,540 — (27,370 ) (2,688 ) — (23,518 ) FINANCING ACTIVITIES: Intercompany activities 42,048 571,729 — (547,932 ) (62,865 ) (2,980 ) — Proceeds from exercise of stock options 26,305 — — — — — 26,305 Special dividend and dividend equivalent payments (56,148 ) — — — — — (56,148 ) Proceeds from term loans, net — 793,042 — — — — 793,042 Repayment on term loans — (833,052 ) — — — — (833,052 ) Financing fees and other — (2,155 ) — — — — (2,155 ) Net cash provided by (used in) financing activities 12,205 529,564 — (547,932 ) (62,865 ) (2,980 ) (72,008 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS — — — — 2,288 — 2,288 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 12,205 378,212 — 3,487 (33,458 ) — 360,446 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 2,416 439,473 — (203 ) 208,875 — 650,561 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 14,621 $ 817,685 $ — $ 3,284 $ 175,417 $ — $ 1,011,007 |