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 consolidating financial information presents, in separate columns, the balance sheets of the Company as of September 30, 2019 and September 30, 2018 and its statements of income and comprehensive income and cash flows for the fiscal years ended September 30, 2019 , 2018 and 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 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 CONSOLIDATING BALANCE SHEET AS OF SEPTEMBER 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 $ 29 $ 1,092,209 $ 280 $ (12,263 ) $ 387,231 $ — $ 1,467,486 Trade accounts receivable—Net — — — 172,099 895,504 — 1,067,603 Inventories—Net — 52,291 — 879,681 315,966 (15,289 ) 1,232,649 Assets held-for-sale — — — 206,419 755,710 — 962,129 Prepaid expenses and other — 27,175 — 45,220 62,985 — 135,380 Total current assets 29 1,171,675 280 1,291,156 2,417,396 (15,289 ) 4,865,247 INVESTMENT IN SUBSIDIARIES AND INTERCOMPANY BALANCES (2,894,934 ) 14,729,513 974,663 16,373,195 6,898,707 (36,081,144 ) — PROPERTY, PLANT AND EQUIPMENT—NET — 16,971 — 513,337 226,449 — 756,757 GOODWILL — 82,924 — 5,544,529 2,192,650 — 7,820,103 OTHER INTANGIBLE ASSETS—NET — 25,444 — 2,063,944 654,432 — 2,743,820 OTHER — 5,364 — 33,931 29,509 — 68,804 TOTAL ASSETS $ (2,894,905 ) $ 16,031,891 $ 974,943 $ 25,820,092 $ 12,419,143 $ (36,096,433 ) $ 16,254,731 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) CURRENT LIABILITIES: Current portion of long-term debt $ — $ 75,688 $ — $ 1,020 $ 3,505 $ — $ 80,213 Short-term borrowings—trade receivable securitization facility — — — — 349,519 — 349,519 Accounts payable — 16,517 — 160,793 99,280 — 276,590 Accrued liabilities — 215,562 12,892 237,026 210,215 — 675,695 Liabilities held-for-sale — — — 22,306 134,433 — 156,739 Total current liabilities — 307,767 12,892 421,145 796,952 — 1,538,756 LONG-TERM DEBT — 15,893,314 491,331 49,240 35,336 — 16,469,221 DEFERRED INCOME TAXES — — — 346,456 94,361 — 440,817 OTHER NON-CURRENT LIABILITIES — 315,262 — 232,520 143,238 — 691,020 Total liabilities — 16,516,343 504,223 1,049,361 1,069,887 — 19,139,814 TD GROUP STOCKHOLDERS’ (DEFICIT) EQUITY (2,894,905 ) (484,452 ) 470,720 24,770,731 11,339,434 (36,096,433 ) (2,894,905 ) NONCONTROLLING INTEREST — — — — 9,822 — 9,822 TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY $ (2,894,905 ) $ 16,031,891 $ 974,943 $ 25,820,092 $ 12,419,143 $ (36,096,433 ) $ 16,254,731 TRANSDIGM GROUP INCORPORATED 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’ EQUITY (DEFICIT) 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 CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME FOR THE YEAR ENDED SEPTEMBER 30, 2019 (Amounts in thousands) TransDigm Group TransDigm Inc. TransDigm UK Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Total Consolidated NET SALES $ — $ 186,360 $ — $ 4,103,848 $ 1,105,379 $ (172,384 ) $ 5,223,203 COST OF SALES — 109,414 — 1,771,217 705,685 (172,384 ) 2,413,932 GROSS PROFIT — 76,946 — 2,332,631 399,694 — 2,809,271 SELLING AND ADMINISTRATIVE EXPENSES — 258,465 14 348,928 140,366 — 747,773 AMORTIZATION OF INTANGIBLE ASSETS — 925 — 98,868 35,159 — 134,952 (LOSS) INCOME FROM OPERATIONS — (182,444 ) (14 ) 1,884,835 224,169 — 1,926,546 INTEREST EXPENSE (INCOME)—NET — 855,325 35,420 (11,638 ) (19,354 ) — 859,753 REFINANCING COSTS — 2,745 268 — — — 3,013 OTHER (INCOME) EXPENSE — (71,003 ) 89,539 (590,135 ) 572,514 — 915 EQUITY IN INCOME OF SUBSIDIARIES (889,770 ) (1,866,584 ) — — — 2,756,354 — INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 889,770 897,073 (125,241 ) 2,486,608 (328,991 ) (2,756,354 ) 1,062,865 INCOME TAX PROVISION — — — 187,331 34,655 — 221,986 INCOME (LOSS) FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTERESTS 889,770 897,073 (125,241 ) 2,299,277 (363,646 ) (2,756,354 ) 840,879 (LOSS) INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX — (7,303 ) — — 57,735 — 50,432 NET INCOME (LOSS) INCLUDING NONCONTROLLING INTERESTS 889,770 889,770 (125,241 ) 2,299,277 (305,911 ) (2,756,354 ) 891,311 NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — — (1,541 ) — (1,541 ) NET INCOME (LOSS) ATTRIBUTABLE TO TD GROUP $ 889,770 $ 889,770 $ (125,241 ) $ 2,299,277 $ (307,452 ) $ (2,756,354 ) $ 889,770 OTHER COMPREHENSIVE (LOSS) INCOME, NET OF TAX (383,081 ) (278,353 ) — 10,204 (147,493 ) 415,642 (383,081 ) TOTAL COMPREHENSIVE INCOME (LOSS) $ 506,689 $ 611,417 $ (125,241 ) $ 2,309,481 $ (454,945 ) $ (2,340,712 ) $ 506,689 TRANSDIGM GROUP INCORPORATED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME FOR THE YEAR ENDED SEPTEMBER 30, 2018 (Amounts in thousands) TransDigm Group TransDigm Inc. TransDigm UK Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Total Consolidated NET SALES $ — $ 163,348 $ — $ 3,118,032 $ 610,688 $ (80,942 ) $ 3,811,126 COST OF SALES — 94,387 — 1,253,018 367,153 (80,942 ) 1,633,616 GROSS PROFIT — 68,961 — 1,865,014 243,535 — 2,177,510 SELLING AND ADMINISTRATIVE EXPENSES — 110,405 — 425,736 (86,465 ) — 449,676 AMORTIZATION OF INTANGIBLE ASSETS — 1,261 — 62,915 8,278 — 72,454 (LOSS) INCOME FROM OPERATIONS — (42,705 ) — 1,376,363 321,722 — 1,655,380 INTEREST EXPENSE (INCOME)—NET — 678,155 6,943 1,308 (23,398 ) — 663,008 REFINANCING COSTS — 6,300 96 — — — 6,396 OTHER (INCOME) EXPENSE — (1,718 ) — (156,284 ) 158,421 — 419 EQUITY IN INCOME OF SUBSIDIARIES (957,062 ) (1,306,511 ) — — — 2,263,573 — INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 957,062 581,069 (7,039 ) 1,531,339 186,699 (2,263,573 ) 985,557 INCOME TAX PROVISION — (375,993 ) — 379,665 20,349 — 24,021 INCOME (LOSS) FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTERESTS 957,062 957,062 (7,039 ) 1,151,674 166,350 (2,263,573 ) 961,536 LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX — — — (2,427 ) (2,047 ) — (4,474 ) NET INCOME (LOSS) INCLUDING NONCONTROLLING INTERESTS 957,062 957,062 (7,039 ) 1,149,247 164,303 (2,263,573 ) 957,062 NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — — — — — NET INCOME (LOSS) ATTRIBUTABLE TO TD GROUP $ 957,062 $ 957,062 $ (7,039 ) $ 1,149,247 $ 164,303 $ (2,263,573 ) $ 957,062 OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX 89,243 95,076 — 8,491 (17,837 ) (85,730 ) 89,243 TOTAL COMPREHENSIVE INCOME (LOSS) $ 1,046,305 $ 1,052,138 $ (7,039 ) $ 1,157,738 $ 146,466 $ (2,349,303 ) $ 1,046,305 TRANSDIGM GROUP INCORPORATED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME FOR THE YEAR ENDED SEPTEMBER 30, 2017 (Amounts in thousands) TransDigm Group TransDigm Inc. TransDigm UK Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Total Consolidated NET SALES $ — $ 143,631 $ — $ 2,911,950 $ 535,129 $ (86,424 ) $ 3,504,286 COST OF SALES — 79,403 — 1,191,770 333,985 (85,499 ) 1,519,659 GROSS PROFIT — 64,228 — 1,720,180 201,144 (925 ) 1,984,627 SELLING AND ADMINISTRATIVE EXPENSES 69 99,558 — 277,083 35,845 — 412,555 AMORTIZATION OF INTANGIBLE ASSETS — 1,003 — 80,053 8,170 — 89,226 (LOSS) INCOME FROM OPERATIONS (69 ) (36,333 ) — 1,363,044 157,129 (925 ) 1,482,846 INTEREST EXPENSE (INCOME)—NET — 614,353 — (1,248 ) (10,516 ) — 602,589 REFINANCING COSTS — 39,807 — — — — 39,807 OTHER (INCOME) EXPENSE — (1,881 ) — 7,736 (2,835 ) — 3,020 EQUITY IN INCOME OF SUBSIDIARIES (596,956 ) (1,318,945 ) — — — 1,915,901 — INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 596,887 630,333 — 1,356,556 170,480 (1,916,826 ) 837,430 INCOME TAX PROVISION — 33,377 — 156,251 19,261 — 208,889 INCOME (LOSS) FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTERESTS 596,887 596,956 — 1,200,305 151,219 (1,916,826 ) 628,541 LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX — — — (9,496 ) (22,158 ) — (31,654 ) NET INCOME (LOSS) INCLUDING NONCONTROLLING INTERESTS 596,887 596,956 — 1,190,809 129,061 (1,916,826 ) 596,887 NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS — — — — — — — NET INCOME (LOSS) ATTRIBUTABLE TO TD GROUP $ 596,887 $ 596,956 $ — $ 1,190,809 $ 129,061 $ (1,916,826 ) $ 596,887 OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX 64,644 31,603 — 16,310 58,856 (106,769 ) 64,644 TOTAL COMPREHENSIVE INCOME (LOSS) $ 661,531 $ 628,559 $ — $ 1,207,119 $ 187,917 $ (2,023,595 ) $ 661,531 TRANSDIGM GROUP INCORPORATED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 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 $ — $ (868,208 ) $ (249,794 ) $ 2,449,925 $ (327,283 ) $ 10,832 $ 1,015,472 INVESTING ACTIVITIES: Capital expenditures, net of disposals — (3,608 ) — (97,220 ) (763 ) — (101,591 ) Payments made in connection with acquisitions — (3,923,850 ) — (52,305 ) — — (3,976,155 ) Proceeds in connection with sale of discontinued operations — 188,766 — — — — 188,766 Net cash used in investing activities — (3,738,692 ) — (149,525 ) (763 ) — (3,888,980 ) FINANCING ACTIVITIES: Intercompany activities 1,629,984 21,960 250,986 (2,310,900 ) 418,802 (10,832 ) — Proceeds from exercise of stock options 81,875 — — — — — 81,875 Special dividends and dividend equivalent payments (1,712,219 ) — — — — — (1,712,219 ) Repayment on term loans — (76,428 ) — — — — (76,428 ) Proceeds from senior secured notes due 2026, net — 3,935,567 — — — — 3,935,567 Proceeds from senior subordinated notes, net — 544,248 — — — — 544,248 Cash tender and redemption of senior subordinated notes due 2020 — (550,000 ) — — — — (550,000 ) Proceeds from trade receivable securitization facility, net — — — — 49,423 — 49,423 Financing fees and other — 2,325 (1,037 ) — (2,401 ) — (1,113 ) Net cash (used in) provided by financing activities (360 ) 3,877,672 249,949 (2,310,900 ) 465,824 (10,832 ) 2,271,353 EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS — — — — (3,376 ) — (3,376 ) NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (360 ) (729,228 ) 155 (10,500 ) 134,402 — (605,531 ) 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 $ 29 $ 1,092,209 $ 280 $ (12,263 ) $ 387,231 $ — $ 1,467,486 TRANSDIGM GROUP INCORPORATED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 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 $ — $ (386,152 ) $ 6,598 $ 1,216,263 $ 183,290 $ 2,174 $ 1,022,173 INVESTING ACTIVITIES: Capital expenditures, net of disposals — (2,001 ) — (61,896 ) (9,444 ) — (73,341 ) Payments made in connection with acquisitions — (667,619 ) — — — — (667,619 ) Proceeds in connection with sale of discontinued operations — 57,383 — — — — 57,383 Net cash used in investing activities — (612,237 ) — (61,896 ) (9,444 ) — (683,577 ) FINANCING ACTIVITIES: Intercompany activities (3,462 ) 1,785,796 (496,081 ) (1,155,927 ) (128,152 ) (2,174 ) — Proceeds from exercise of stock options 57,583 — — — — — 57,583 Special dividends and dividend equivalent payments (56,148 ) — — — — — (56,148 ) Proceeds from term loans, net — 12,779,694 — — — — 12,779,694 Repayment on term loans — (12,174,305 ) — — — — (12,174,305 ) Proceeds from senior subordinated notes, net — — 489,608 — — — 489,608 Financing fees and other — (10,832 ) — — — — (10,832 ) Net cash (used in) provided by financing activities (2,027 ) 2,380,353 (6,473 ) (1,155,927 ) (128,152 ) (2,174 ) 1,085,600 EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS — — — — (1,740 ) — (1,740 ) NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (2,027 ) 1,381,964 125 (1,560 ) 43,954 — 1,422,456 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 2,416 439,473 — (203 ) 208,875 — 650,561 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 389 $ 1,821,437 $ 125 $ (1,763 ) $ 252,829 $ — $ 2,073,017 TRANSDIGM GROUP INCORPORATED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 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 $ (69 ) $ (587,800 ) $ — $ 1,334,099 $ 42,028 $ 475 $ 788,733 INVESTING ACTIVITIES: Capital expenditures, net of disposals — (1,984 ) — (63,305 ) (5,724 ) — (71,013 ) Payments made in connection with acquisitions — (215,990 ) — — — — (215,990 ) Net cash used in investing activities — (217,974 ) — (63,305 ) (5,724 ) — (287,003 ) FINANCING ACTIVITIES: Intercompany activities 2,939,121 (1,682,518 ) — (1,279,805 ) 23,677 (475 ) — Proceeds from exercise of stock options 21,177 — — — — — 21,177 Special dividends and dividend equivalent payments (2,581,552 ) — — — — — (2,581,552 ) Treasury stock purchased (389,821 ) — — — — — (389,821 ) Proceeds from term loan, net — 2,937,773 — — — — 2,937,773 Repayment on term loans — (1,284,698 ) — — — — (1,284,698 ) Proceeds from senior subordinated notes, net — 300,386 — — — — 300,386 Cash tender and redemption of senior subordinated notes due 2021, including premium — (528,847 ) — — — — (528,847 ) Proceeds from trade receivable securitization facility, net — 99,471 — — — — 99,471 Financing fees and other — (17,571 ) — — — — (17,571 ) Net cash (used in) provided by financing activities (11,075 ) (176,004 ) — (1,279,805 ) 23,677 (475 ) (1,443,682 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS — — — — 5,519 — 5,519 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (11,144 ) (981,778 ) — (9,011 ) 65,500 — (936,433 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 13,560 1,421,251 — 8,808 143,375 — 1,586,994 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 2,416 $ 439,473 $ — $ (203 ) $ 208,875 $ — $ 650,561 ***** |