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 June 29, 2019 and September 30, 2018 and its statements of income and comprehensive income and cash flows for the thirty-nine week period s ended June 29, 2019 and June 30, 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 JUNE 29, 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 $ 6,036 $ 2,295,239 $ 280 $ (12,394 ) $ 427,651 $ — $ 2,716,812 Trade accounts receivable - Net — — — 214,145 948,200 — 1,162,345 Inventories - Net — 52,727 — 922,218 453,696 (14,707 ) 1,413,934 Prepaid expenses and other — 29,572 — 44,549 43,983 — 118,104 Total current assets 6,036 2,377,538 280 1,168,518 1,873,530 (14,707 ) 5,411,195 INVESTMENT IN SUBSIDIARIES AND INTERCOMPANY BALANCES (1,327,280 ) 20,451,875 974,678 11,087,173 5,835,834 (37,022,280 ) — PROPERTY, PLANT AND EQUIPMENT - NET — 18,615 — 482,399 244,524 — 745,538 GOODWILL — 82,924 — 6,453,835 2,147,904 — 8,684,663 OTHER INTANGIBLE ASSETS - NET — 25,670 — 1,900,577 807,767 — 2,734,014 DEFERRED INCOME TAXES — 18,270 — 7 44,498 — 62,775 OTHER — 9,619 — 34,290 20,504 — 64,413 TOTAL ASSETS $ (1,321,244 ) $ 22,984,511 $ 974,958 $ 21,126,799 $ 10,974,561 $ (37,036,987 ) $ 17,702,598 LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY CURRENT LIABILITIES: Current portion of long-term debt $ — $ 75,656 $ — $ 1,745 $ 3,462 $ — $ 80,863 Short-term borrowings - trade receivable securitization facility — — — — 299,951 — 299,951 Accounts payable — 16,556 — 166,610 127,282 — 310,448 Accrued liabilities — 252,767 4,297 213,292 219,022 — 689,378 Total current liabilities — 344,979 4,297 381,647 649,717 — 1,380,640 LONG-TERM DEBT — 15,905,437 491,023 57,770 41,655 — 16,495,885 DEFERRED INCOME TAXES — 560,530 — 19 80,453 — 641,002 OTHER NON-CURRENT LIABILITIES — 265,776 — 152,382 77,527 — 495,685 Total liabilities — 17,076,722 495,320 591,818 849,352 — 19,013,212 TD GROUP STOCKHOLDERS' (DEFICIT) EQUITY (1,321,244 ) 5,907,789 479,638 20,534,981 10,114,579 (37,036,987 ) (1,321,244 ) NONCONTROLLING INTEREST — — — — 10,630 — 10,630 TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY $ (1,321,244 ) $ 22,984,511 $ 974,958 $ 21,126,799 $ 10,974,561 $ (37,036,987 ) $ 17,702,598 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 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 THIRTY-NINE WEEK PERIOD ENDED JUNE 29, 2019 (Amounts in thousands) TransDigm Group TransDigm Inc. TransDigm UK Subsidiary Guarantors Non- Guarantor Subsidiaries Eliminations Total Consolidated NET SALES $ — $ 136,514 $ — $ 2,981,434 $ 872,715 $ (143,104 ) $ 3,847,559 COST OF SALES — 144,252 — 1,285,205 576,295 (143,104 ) 1,862,648 GROSS PROFIT — (7,738 ) — 1,696,229 296,420 — 1,984,911 SELLING AND ADMINISTRATIVE EXPENSES — 198,924 14 257,146 105,223 — 561,307 AMORTIZATION OF INTANGIBLE ASSETS — (7,047 ) — 66,588 25,445 — 84,986 (LOSS) INCOME FROM OPERATIONS — (199,615 ) (14 ) 1,372,495 165,752 — 1,338,618 INTEREST EXPENSE (INCOME) - NET — 604,886 26,501 (6,605 ) (10,081 ) — 614,701 REFINANCING COSTS — 3,272 268 — — — 3,540 OTHER (INCOME) EXPENSE — (69,698 ) 89,539 (593,642 ) 571,711 — (2,090 ) EQUITY IN INCOME OF SUBSIDIARIES (542,900 ) (1,280,975 ) — — — 1,823,875 — INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 542,900 542,900 (116,322 ) 1,972,742 (395,878 ) (1,823,875 ) 722,467 INCOME TAX PROVISION — — — 112,108 67,075 — 179,183 INCOME (LOSS) FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTERESTS 542,900 542,900 (116,322 ) 1,860,634 (462,953 ) (1,823,875 ) 543,284 LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX — — — — — — — NET INCOME (LOSS) INCLUDING NONCONTROLLING INTERESTS 542,900 542,900 (116,322 ) 1,860,634 (462,953 ) (1,823,875 ) 543,284 NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — — (384 ) — (384 ) NET INCOME (LOSS) ATTRIBUTABLE TO TD GROUP $ 542,900 $ 542,900 $ (116,322 ) $ 1,860,634 $ (463,337 ) $ (1,823,875 ) $ 542,900 OTHER COMPREHENSIVE (LOSS) INCOME, NET OF TAX (179,875 ) 57,853 — 12,290 (9,011 ) (61,132 ) (179,875 ) TOTAL COMPREHENSIVE INCOME (LOSS) $ 363,025 $ 600,753 $ (116,322 ) $ 1,872,924 $ (472,348 ) $ (1,885,007 ) $ 363,025 TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME FOR THE THIRTY-NINE WEEK PERIOD ENDED JUNE 30, 2018 (Amounts in thousands) TransDigm Group TransDigm Inc. TransDigm UK Subsidiary Guarantors Non- Guarantor Subsidiaries Eliminations Total Consolidated NET SALES $ — $ 118,783 $ — $ 2,243,838 $ 459,571 $ (60,500 ) $ 2,761,692 COST OF SALES — 68,022 — 895,381 278,545 (60,500 ) 1,181,448 GROSS PROFIT — 50,761 — 1,348,457 181,026 — 1,580,244 SELLING AND ADMINISTRATIVE EXPENSES — 74,949 — 200,298 50,961 — 326,208 AMORTIZATION OF INTANGIBLE ASSETS — 1,038 — 46,533 6,222 — 53,793 (LOSS) INCOME FROM OPERATIONS — (25,226 ) — 1,101,626 123,843 — 1,200,243 INTEREST EXPENSE (INCOME) - NET — 478,341 2,569 (4 ) 8,870 — 489,776 REFINANCING COSTS — 5,839 71 — — — 5,910 OTHER (INCOME) EXPENSE — (241 ) — (1,646 ) 2,752 — 865 EQUITY IN INCOME OF SUBSIDIARIES (728,299 ) (913,523 ) — — — 1,641,822 — INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 728,299 404,358 (2,640 ) 1,103,276 112,221 (1,641,822 ) 703,692 INCOME TAX PROVISION — (323,941 ) — 283,975 12,416 — (27,550 ) INCOME (LOSS) FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTERESTS 728,299 728,299 (2,640 ) 819,301 99,805 (1,641,822 ) 731,242 LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX — — — (2,310 ) (633 ) — (2,943 ) NET INCOME (LOSS) INCLUDING NONCONTROLLING INTERESTS 728,299 728,299 (2,640 ) 816,991 99,172 (1,641,822 ) 728,299 NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — — — — — NET INCOME (LOSS) ATTRIBUTABLE TO TD GROUP $ 728,299 $ 728,299 $ (2,640 ) $ 816,991 $ 99,172 $ (1,641,822 ) $ 728,299 OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX 61,426 66,480 — 8,553 (15,123 ) (59,910 ) 61,426 TOTAL COMPREHENSIVE INCOME (LOSS) $ 789,725 $ 794,779 $ (2,640 ) $ 825,544 $ 84,049 $ (1,701,732 ) $ 789,725 TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THIRTY-NINE WEEK PERIOD ENDED JUNE 29, 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 $ — $ (420,927 ) $ (110,835 ) $ 1,951,008 $ (660,749 ) $ 9,859 $ 768,356 INVESTING ACTIVITIES: Capital expenditures — (2,760 ) — (69,992 ) (7,669 ) — (80,421 ) Payments made in connection with acquisitions, net of cash acquired — (3,923,850 ) — (33,094 ) — — (3,956,944 ) Net cash used in investing activities — (3,926,610 ) — (103,086 ) (7,669 ) — (4,037,365 ) FINANCING ACTIVITIES: Intercompany activities (34,323 ) 946,145 112,012 (1,858,553 ) 844,578 (9,859 ) — Proceeds from exercise of stock options 64,279 — — — — — 64,279 Dividend equivalent payments (24,309 ) — — — — — (24,309 ) Repayment on term loans — (57,321 ) — — — — (57,321 ) Cash tender and redemption of 2020 Notes — (550,000 ) — — — — (550,000 ) Proceeds from 2027 Notes, net — 544,462 — — — — 544,462 Proceeds from 2026 Secured Notes, net — 3,935,715 — — — — 3,935,715 Financing fees and other — 2,338 (1,022 ) — (2,502 ) — (1,186 ) Net cash provided by (used in) financing activities 5,647 4,821,339 110,990 (1,858,553 ) 842,076 (9,859 ) 3,911,640 EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS — — — — 1,164 — 1,164 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 5,647 473,802 155 (10,631 ) 174,822 — 643,795 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 $ 6,036 $ 2,295,239 $ 280 $ (12,394 ) $ 427,651 $ — $ 2,716,812 TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THIRTY-NINE WEEK PERIOD ENDED JUNE 30, 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 $ — $ (291,416 ) $ 2,110 $ 863,173 $ 117,043 $ — $ 690,910 INVESTING ACTIVITIES: Capital expenditures — (1,372 ) — (41,999 ) (6,726 ) — (50,097 ) Payments made in connection with acquisitions, net of cash acquired — (582,262 ) — — — — (582,262 ) Proceeds in connection with sale of discontinued operations — 57,686 — — — — 57,686 Net cash used in investing activities — (525,948 ) — (41,999 ) (6,726 ) — (574,673 ) FINANCING ACTIVITIES: Intercompany activities 14,035 1,392,169 (492,371 ) (820,946 ) (92,887 ) — — Proceeds from exercise of stock options 40,621 — — — — — 40,621 Dividend equivalent payments (56,148 ) — — — — — (56,148 ) Proceeds from term loans, net — 12,779,772 — — — — 12,779,772 Repayment on term loans — (12,155,198 ) — — — — (12,155,198 ) Proceeds from 6.875% 2026 Notes, net — — 490,411 — — — 490,411 Financing fees and other — (9,904 ) — — — — (9,904 ) Net cash (used in) provided by financing activities (1,492 ) 2,006,839 (1,960 ) (820,946 ) (92,887 ) — 1,089,554 EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS — — — — (2,979 ) — (2,979 ) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (1,492 ) 1,189,475 150 228 14,451 — 1,202,812 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 2,416 439,473 — (203 ) 208,875 — 650,561 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 924 $ 1,628,948 $ 150 $ 25 $ 223,326 $ — $ 1,853,373 |