SUPPLEMENTAL GUARANTOR INFORMATION

3 Months Ended

Dec. 28, 2019

Condensed Financial Information Disclosure [Abstract]

TransDigm Inc.’s 2024 Notes, 2025 Notes, 6.375% 2026 Notes, 2026 Secured Notes, 7.50% 2027 Notes and 5.50% 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 December 28, 2019 and September 30, 2019 and its statements of income and comprehensive income and cash flows for the thirteen week periods ended December 28, 2019 and December 29, 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 2024 Notes, 2025 Notes, 6.375% 2026 Notes, 2026 Secured Notes, 7.50% 2027 Notes and 5.50% 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 DECEMBER 28, 2019

(Amounts in millions)



	TransDigm Group			TransDigm Inc.			TransDigm UK		Subsidiary Guarantors			Non- Guarantor Subsidiaries		Eliminations			Total Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—		$	3,087		$	1	$	(15	)	$	1,121	$	—		$	4,194
Trade accounts receivable - Net	—			—			—		161			864		—			1,025
Inventories - Net	—			55			—		899			356		(16		)	1,294
Prepaid expenses and other	—			29			—		52			58		—			139
Total current assets	—			3,171			1		1,097			2,399		(16		)	6,652
INVESTMENT IN SUBSIDIARIES AND INTERCOMPANY BALANCES	(4,303		)	15,750			974		17,542			5,957		(35,920		)	—
PROPERTY, PLANT AND EQUIPMENT - NET	—			15			—		520			218		—			753
GOODWILL	—			83			—		5,895			1,868		—			7,846
OTHER INTANGIBLE ASSETS - NET	—			25			—		2,025			687		—			2,737
DEFERRED INCOME TAXES	—			—			—		—			13		—			13
OTHER	—			20			—		92			43		—			155
TOTAL ASSETS	$	(4,303	)	$	19,064		$	975	$	27,171		$	11,185	$	(35,936	)	$	18,156
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt	$	—		$	76		$	—	$	1		$	3	$	—		$	80
Short-term borrowings - trade receivable securitization facility	—			—			—		—			350		—			350
Accounts payable	—			17			—		148			100		—			265
Accrued liabilities	—			2,158			4		240			253		—			2,655
Total current liabilities	—			2,251			4		389			706		—			3,350
LONG-TERM DEBT	—			17,383			492		42			35		—			17,952
DEFERRED INCOME TAXES	—			—			—		350			98		—			448
OTHER NON-CURRENT LIABILITIES	—			273			—		265			167		—			705
Total liabilities	—			19,907			496		1,046			1,006		—			22,455
TD GROUP STOCKHOLDERS' (DEFICIT) EQUITY	(4,303		)	(843		)	479		26,125			10,175		(35,936		)	(4,303		)
NONCONTROLLING INTERESTS	—			—			—		—			4		—			4
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY	$	(4,303	)	$	19,064		$	975	$	27,171		$	11,185	$	(35,936	)	$	18,156

TRANSDIGM GROUP INCORPORATED

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF SEPTEMBER 30, 2019

(Amounts in millions)



	TransDigm Group			TransDigm Inc.			TransDigm UK		Subsidiary Guarantors			Non- Guarantor Subsidiaries		Eliminations			Total Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—		$	1,092		$	—	$	(12	)	$	387	$	—		$	1,467
Trade accounts receivable - Net	—			—			—		172			896		—			1,068
Inventories - Net	—			52			—		880			316		(15		)	1,233
Assets held-for-sale	—			—			—		206			756		—			962
Prepaid expenses and other	—			27			—		45			63		—			135
Total current assets	—			1,171			—		1,291			2,418		(15		)	4,865
INVESTMENT IN SUBSIDIARIES AND INTERCOMPANY BALANCES	(2,894		)	14,729			975		16,373			6,898		(36,081		)	—
PROPERTY, PLANT AND EQUIPMENT - NET	—			17			—		513			227		—			757
GOODWILL	—			83			—		5,544			2,193		—			7,820
OTHER INTANGIBLE ASSETS - NET	—			25			—		2,064			655		—			2,744
OTHER	—			6			—		35			28		—			69
TOTAL ASSETS	$	(2,894	)	$	16,031		$	975	$	25,820		$	12,419	$	(36,096	)	$	16,255
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt	$	—		$	76		$	—	$	1		$	3	$	—		$	80
Short-term borrowings - trade receivable securitization facility	—			—			—		—			350		—			350
Accounts payable	—			17			—		160			99		—			276
Accrued liabilities	—			215			12		237			211		—			675
Liabilities held-for-sale	—			—			—		22			135		—			157
Total current liabilities	—			308			12		420			798		—			1,538
LONG-TERM DEBT	—			15,893			492		49			35		—			16,469
DEFERRED INCOME TAXES	—			—			—		347			94		—			441
OTHER NON-CURRENT LIABILITIES	—			315			—		233			143		—			691
Total liabilities	—			16,516			504		1,049			1,070		—			19,139
TD GROUP STOCKHOLDERS' (DEFICIT) EQUITY	(2,894		)	(485		)	471		24,771			11,339		(36,096		)	(2,894		)
NONCONTROLLING INTERESTS	—			—			—		—			10		—			10
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY	$	(2,894	)	$	16,031		$	975	$	25,820		$	12,419	$	(36,096	)	$	16,255

TRANSDIGM GROUP INCORPORATED

CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

FOR THE THIRTEEN WEEK PERIOD ENDED DECEMBER 28, 2019

(Amounts in millions)



	TransDigm Group			TransDigm Inc.			TransDigm UK			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations			Total Consolidated
NET SALES	$	—		$	45		$	—		$	1,130		$	347		$	(57	)	$	1,465
COST OF SALES	—			25			—			480			216			(57		)	664
GROSS PROFIT	—			20			—			650			131			—			801
SELLING AND ADMINISTRATIVE EXPENSES	—			54			—			97			50			—			201
AMORTIZATION OF INTANGIBLE ASSETS	—			—			—			30			10			—			40
(LOSS) INCOME FROM OPERATIONS	—			(34		)	—			523			71			—			560
INTEREST EXPENSE (INCOME) - NET	—			250			9			(5		)	(6		)	—			248
REFINANCING COSTS	—			22			—			—			—			—			22
OTHER (INCOME) EXPENSE	—			(3		)	(18		)	2			16			—			(3		)
EQUITY IN INCOME OF SUBSIDIARIES	(304		)	(493		)	—			—			—			797			—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	304			190			9			526			61			(797		)	293
INCOME TAX PROVISION	—			—			—			50			9			—			59
INCOME FROM CONTINUING OPERATIONS	304			190			9			476			52			(797		)	234
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX	—			114			—			—			(43		)	—			71
NET INCOME	304			304			9			476			9			(797		)	305
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			—			—			(1		)	—			(1		)
NET INCOME ATTRIBUTABLE TO TD GROUP	$	304		$	304		$	9		$	476		$	8		$	(797	)	$	304
OTHER COMPREHENSIVE INCOME, NET OF TAX	127			43			—			5			132			(180		)	127
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO TD GROUP	$	431		$	347		$	9		$	481		$	140		$	(977	)	$	431

TRANSDIGM GROUP INCORPORATED

CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

FOR THE THIRTEEN WEEK PERIOD ENDED DECEMBER 29, 2018

(Amounts in millions)



	TransDigm Group			TransDigm Inc.			TransDigm UK			Subsidiary Guarantors		Non- Guarantor Subsidiaries			Eliminations			Total Consolidated
NET SALES	$	—		$	41		$	—		$	809	$	162		$	(19	)	$	993
COST OF SALES	—			23			—			338		87			(19		)	429
GROSS PROFIT	—			18			—			471		75			—			564
SELLING AND ADMINISTRATIVE EXPENSES	—			41			—			64		17			—			122
AMORTIZATION OF INTANGIBLE ASSETS	—			—			—			18		2			—			20
(LOSS) INCOME FROM OPERATIONS	—			(23		)	—			389		56			—			422
INTEREST EXPENSE (INCOME) - NET	—			177			5			—		(10		)	—			172
EQUITY IN INCOME OF SUBSIDIARIES	(196		)	(325		)	—			—		—			521			—
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	196			125			(5		)	389		66			(521		)	250
INCOME TAX PROVISION	—			(71		)	—			119		6			—			54
NET INCOME (LOSS) ATTRIBUTABLE TO TD GROUP	$	196		$	196		$	(5	)	$	270	$	60		$	(521	)	$	196
OTHER COMPREHENSIVE (LOSS) INCOME, NET OF TAX	(85		)	(74		)	—			12		(13		)	75			(85		)
TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO TD GROUP	$	111		$	122		$	(5	)	$	282	$	47		$	(446	)	$	111

TRANSDIGM GROUP INCORPORATED

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE THIRTEEN WEEK PERIOD ENDED DECEMBER 28, 2019

(Amounts in millions)



	TransDigm Group			TransDigm Inc.			TransDigm UK			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations			Total Consolidated
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES	$	—		$	(80	)	$	(8	)	$	448		$	72		$	1		$	433
INVESTING ACTIVITIES:
Capital expenditures	—			(1		)	—			(22		)	(4		)	—			(27		)
Proceeds in connection with sale of discontinued operations, net	—			904			—			—			—			—			904
Net cash provided by (used in) investing activities	—			903			—			(22		)	(4		)	—			877
FINANCING ACTIVITIES:
Intercompany activities	44			(285		)	9			(429		)	662			(1		)	—
Proceeds from exercise of stock options	20			—			—			—			—			—			20
Dividend equivalent payments	(64		)	—			—			—			—			—			(64		)
Redemption of senior subordinated notes due 2022, net	—			(1,168		)	—			—			—			—			(1,168		)
Proceeds from 5.50% senior subordinated notes due 2027, net	—			2,625			—			—			—			—			2,625
Other, net	—			—			—			—			1			—			1
Net cash provided by (used in) financing activities	—			1,172			9			(429		)	663			(1		)	1,414
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	—			—			—			—			3			—			3
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			1,995			1			(3		)	734			—			2,727
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	—			1,092			—			(12		)	387			—			1,467
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	—		$	3,087		$	1		$	(15	)	$	1,121		$	—		$	4,194

TRANSDIGM GROUP INCORPORATED

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE THIRTEEN WEEK PERIOD ENDED DECEMBER 29, 2018

(Amounts in millions)



	TransDigm Group			TransDigm Inc.			TransDigm UK		Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations		Total Consolidated
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES	$	—		$	(19	)	$	—	$	285		$	64		$	—	$	330
INVESTING ACTIVITIES:
Capital expenditures	—			—			—		(20		)	(4		)	—		(24		)
Payments made in connection with acquisitions, net of cash acquired	—			—			—		(29		)	—			—		(29		)
Net cash used in investing activities	—			—			—		(49		)	(4		)	—		(53		)
FINANCING ACTIVITIES:
Intercompany activities	16			430			—		(235		)	(211		)	—		—
Proceeds from exercise of stock options	14			—			—		—			—			—		14
Dividend equivalent payments	(24		)	—			—		—			—			—		(24		)
Net cash provided by (used in) financing activities	6			430			—		(235		)	(211		)	—		(10		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	—			—			—		—			(3		)	—		(3		)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	6			411			—		1			(154		)	—		264
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	—			1,821			—		(2		)	254			—		2,073
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	6		$	2,232		$	—	$	(1	)	$	100		$	—	$	2,337