Separate Financial Information of Subsidiary Guarantor of Indebtedness

Under the terms of the Company’s Senior Notes and the Revolver (collectively, the “Domestic Indebtedness”), Briggs & Stratton Power Products Group, LLC, a 100% owned subsidiary of the Company, is the joint and several guarantor of the Domestic Indebtedness (the “Guarantor”). The guarantees are full and unconditional guarantees, except for certain customary limitations. Additionally, if at any time a domestic subsidiary of the Company constitutes a significant domestic subsidiary, then such domestic subsidiary will also become a guarantor of the Domestic Indebtedness. Currently, all of the Domestic Indebtedness is unsecured. If the Company were to fail to make a payment of interest or principal on its due date, the Guarantor is obligated to pay the outstanding Domestic Indebtedness. The Company had the following outstanding amounts related to the guaranteed debt (in thousands):



	December 29, 2013 Carrying Amount		Maximum Guarantee
Senior Notes	$	225,000	$	225,000
Multicurrency Credit Agreement	$	—	$	500,000

The following condensed supplemental consolidating financial information reflects the summarized financial information of Briggs & Stratton, its Guarantors and Non-Guarantor Subsidiaries (in thousands):

CONSOLIDATING BALANCE SHEET

As of December 29, 2013

(Unaudited)



	Briggs & Stratton Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
CURRENT ASSETS:
Cash and Cash Equivalents	$	56,958	$	1,583	$	39,621	$	—		$	98,162
Accounts Receivable, Net	96,834		57,391		38,318		—			192,543
Intercompany Accounts Receivable	16,048		3,520		36,912		(56,480		)	—
Inventories, Net	243,440		160,177		71,280		—			474,897
Deferred Income Tax Asset	33,359		13,818		1,133		—			48,310
Prepaid Expenses and Other Current Assets	13,372		1,359		10,393		—			25,124
Total Current Assets	$	460,011	$	237,848	$	197,657	$	(56,480	)	$	839,036
OTHER ASSETS:
Goodwill	$	128,300	$	—	$	18,023	$	—		$	146,323
Investments	17,583		—		—		—			17,583
Investments in Subsidiaries	475,822		—		—		(475,822		)	—
Intercompany Note Receivable	54,655		109,221		19,549		(183,425		)	—
Debt Issuance Costs	5,164		—		—		—			5,164
Other Intangible Assets, Net	—		62,011		23,318		—			85,329
Long-Term Deferred Income Tax Asset	47,308		—		743		(21,796		)	26,255
Other Long-Term Assets, Net	9,970		2,847		1,371		—			14,188
Total Other Assets	$	738,802	$	174,079	$	63,004	$	(681,043	)	$	294,842
PLANT AND EQUIPMENT, NET	220,582		42,451		16,673		—			279,706
TOTAL ASSETS	$	1,419,395	$	454,378	$	277,334	$	(737,523	)	$	1,413,584

CURRENT LIABILITIES:
Accounts Payable	$	109,561	$	32,373	$	20,916	$	—		$	162,850
Intercompany Accounts Payable	23,207		8,750		24,523		(56,480		)	—
Accrued Liabilities	84,278		30,269		18,478		—			133,025
Total Current Liabilities	$	217,046	$	71,392	$	63,917	$	(56,480	)	$	295,875
OTHER LIABILITIES:
Accrued Pension Cost	$	141,650	$	426	$	—	$	—		$	142,076
Accrued Employee Benefits	23,568		—		—		—			23,568
Accrued Postretirement Health Care Obligation	51,544		15,026		—		—			66,570
Intercompany Note Payable	112,070		—		71,355		(183,425		)	—
Deferred Income Tax Liabilities	—		21,796		—		(21,796		)	—
Other Long-Term Liabilities	20,629		11,008		970		—			32,607
Long-Term Debt	225,000		—		—		—			225,000
Total Other Liabilities	$	574,461	$	48,256	$	72,325	$	(205,221	)	$	489,821
TOTAL SHAREHOLDERS’ INVESTMENT:	627,888		334,708		141,114		(475,822		)	627,888
TOTAL LIABILITIES AND SHAREHOLDERS’ INVESTMENT	$	1,419,395	$	454,356	$	277,356	$	(737,523	)	$	1,413,584

CONSOLIDATING BALANCE SHEET

As of June 30, 2013



	Briggs & Stratton Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
CURRENT ASSETS:
Cash and Cash Equivalents	$	162,628	$	1,275	$	24,542	$	—		$	188,445
Accounts Receivable, Net	80,017		80,531		30,252		—			190,800
Intercompany Accounts Receivable	11,987		5,971		46,366		(64,324		)	—
Inventories, Net	165,600		175,523		66,972		—			408,095
Deferred Income Tax Asset	32,543		13,923		1,068		—			47,534
Prepaid Expenses and Other Current Assets	15,194		1,967		6,946		—			24,107
Total Current Assets	$	467,969	$	279,190	$	176,146	$	(64,324	)	$	858,981
OTHER ASSETS:
Goodwill	$	128,300	$	—	$	19,052	$	—		$	147,352
Investments	19,764		—		—		—			19,764
Investments in Subsidiaries	520,604		—		—		(520,604		)	—
Intercompany Note Receivable	45,747		81,844		14,486		(142,077		)	—
Debt Issuance Costs	4,710		—		—		—			4,710
Other Intangible Assets, Net	—		62,612		25,368		—			87,980
Long-Term Deferred Income Tax Asset	48,694		—		83		(21,233		)	27,544
Other Long-Term Assets, Net	9,810		2,957		1,258		—			14,025
Total Other Assets	$	777,629	$	147,413	$	60,247	$	(683,914	)	$	301,375
PLANT AND EQUIPMENT, NET	224,002		45,475		17,718		—			287,195
TOTAL ASSETS	$	1,469,600	$	472,078	$	254,111	$	(748,238	)	$	1,447,551

CURRENT LIABILITIES:
Accounts Payable	$	91,965	$	37,112	$	14,112	$	—		$	143,189
Intercompany Accounts Payable	38,078		5,197		21,049		(64,324		)	—
Short-Term Debt	—		—		300		—			300
Accrued Liabilities	111,146		7,452		12,668		—			131,266
Total Current Liabilities	$	241,189	$	49,761	$	48,129	$	(64,324	)	$	274,755
OTHER LIABILITIES:
Accrued Pension Cost	$	149,614	$	472	$	45	$	—		$	150,131
Accrued Employee Benefits	23,458		—		—		—			23,458
Accrued Postretirement Health Care Obligation	57,298		15,397		—		—			72,695
Intercompany Note Payable	85,095		—		56,982		(142,077		)	—
Deferred Income Tax Liabilities	—		21,233		—		(21,233		)	—
Other Long-Term Liabilities	20,008		12,541		1,025		—			33,574
Long-Term Debt	225,000		—		—		—			225,000
Total Other Liabilities	$	560,473	$	49,643	$	58,052	$	(163,310	)	$	504,858
TOTAL SHAREHOLDERS’ INVESTMENT:	667,938		372,674		147,930		(520,604		)	667,938
TOTAL LIABILITIES AND SHAREHOLDERS’ INVESTMENT	$	1,469,600	$	472,078	$	254,111	$	(748,238	)	$	1,447,551

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended December 29, 2013

(Unaudited)



	Briggs & Stratton Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	250,564		$	134,785		$	80,288		$	(49,045	)	$	416,592
Cost of Goods Sold	200,716			122,697			62,965			(49,045		)	337,333
Restructuring Charges	1,597			—			296			—			1,893
Gross Profit	48,251			12,088			17,027			—			77,366
Engineering, Selling, General and Administrative Expenses	42,243			18,094			11,440			—			71,777
Restructuring Charges	77			—			348			—			425
Equity in Income from Subsidiaries	(436		)	—			—			436			—
Income (Loss) from Operations	6,367			(6,006		)	5,239			(436		)	5,164
Interest Expense	(4,582		)	—			(12		)	—			(4,594		)
Other Income, Net	1,611			95			45			—			1,751
Income (Loss) before Income Taxes	3,396			(5,911		)	5,272			(436		)	2,321
Provision (Credit) for Income Taxes	2,694			(2,174		)	1,099			—			1,619
Net Income (Loss)	$	702		$	(3,737	)	$	4,173		$	(436	)	$	702
Comprehensive Income (Loss)	$	2,982		$	(3,590	)	$	2,332		$	1,258		$	2,982

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended December 30, 2012

(Unaudited)



	Briggs & Stratton Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Net Sales	262,148		171,411		62,350		(56,843	)	439,066
Cost of Goods Sold	210,185		157,308		48,303		(56,843	)	358,953
Restructuring Charges	642		2,355		203		—		3,200
Gross Profit	51,321		11,748		13,844		—		76,913
Engineering, Selling, General and Administrative Expenses	42,316		16,554		10,330		—		69,200
Restructuring Charges	3,435		—		—		—		3,435
Equity in Income from Subsidiaries	(664	)	—		—		664		—
Income (Loss) from Operations	6,234		(4,806	)	3,514		(664	)	4,278
Interest Expense	(4,555	)	—		(44	)	—		(4,599	)
Other Income, Net	1,174		62		214		—		1,450
Income (Loss) before Income Taxes	2,853		(4,744	)	3,684		(664	)	1,129
Provision (Credit) for Income Taxes	3,488		(1,707	)	(17	)	—		1,764
Net Income (Loss)	(635	)	(3,037	)	3,701		(664	)	(635	)
Comprehensive Income (Loss)	20,433		(2,982	)	4,376		(1,394	)	20,433

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Six Months Ended December 29, 2013

(Unaudited)



	Briggs & Stratton Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	425,354		$	252,549		$	150,697		$	(94,704	)	$	733,896
Cost of Goods Sold	354,253			229,391			118,281			(94,704		)	607,221
Restructuring Charges	3,396			339			1,743			—			5,478
Gross Profit	67,705			22,819			30,673			—			121,197
Engineering, Selling, General and Administrative Expenses	79,751			35,691			25,097			—			140,539
Restructuring Charges	77			—			348			—			425
Equity in Income from Subsidiaries	5,117			—			—			(5,117		)	—
Income (Loss) from Operations	(17,240		)	(12,872		)	5,228			5,117			(19,767		)
Interest Expense	(9,076		)	—			(27		)	—			(9,103		)
Other Income, Net	3,803			185			(145		)	—			3,843
Income (Loss) before Income Taxes	(22,513		)	(12,687		)	5,056			5,117			(25,027		)
Provision (Credit) for Income Taxes	(3,866		)	(4,678		)	2,164			—			(6,380		)
Net Income (Loss)	$	(18,647	)	$	(8,009	)	$	2,892		$	5,117		$	(18,647	)
Comprehensive Income (Loss)	$	(12,045	)	$	(8,205	)	$	2,509		$	5,696		$	(12,045	)

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Six Months Ended December 30, 2012

(Unaudited)



	Briggs & Stratton Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	413,711		$	316,528		$	134,316		$	(116,469	)	$	748,086
Cost of Goods Sold	342,145			287,019			106,283			(116,469		)	618,978
Restructuring Charges	1,720			6,390			215			—			8,325
Gross Profit	69,846			23,119			27,818			—			120,783
Engineering, Selling, General and Administrative Expenses	80,758			34,624			19,506			—			134,888
Restructuring Charges	3,435			—			—			—			3,435
Equity in Income from Subsidiaries	(322		)	—			—			322			—
Income (Loss) from Operations	(14,025		)	(11,505		)	8,312			(322		)	(17,540		)
Interest Expense	(8,998		)	(3		)	(84		)	—			(9,085		)
Other Income, Net	2,215			154			485			—			2,854
Income (Loss) before Income Taxes	(20,808		)	(11,354		)	8,713			(322		)	(23,771		)
Provision (Credit) for Income Taxes	(3,646		)	(4,156		)	1,193			—			(6,609		)
Net Income (Loss)	$	(17,162	)	$	(7,198	)	$	7,520		$	(322	)	$	(17,162	)
Comprehensive Income (Loss)	$	15,861		$	(7,700	)	$	11,519		$	(3,819	)	$	15,861

CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended December 29, 2013

(Unaudited)



	Briggs & Stratton Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net Cash Provided by (Used in) Operating Activities	$	(98,437	)	$	28,940		$	24,249		$	—	$	(45,248	)
Cash Flows from Investing Activities:
Additions to Plant and Equipment	(15,904		)	(1,365		)	(794		)	—		(18,063		)
Proceeds Received on Disposition of Plant and Equipment	28			33			—			—		61
Cash Investment in Subsidiary	8,107			—			(8,107		)	—		—
Net Cash Used in Investing Activities	(7,769		)	(1,332		)	(8,901		)	—		(18,002		)
Cash Flows from Financing Activities:
Repayments on Short-Term Debt	—			—			(300		)	—		(300		)
Net Borrowings (Repayments) on Loans, Notes Payable and Long-Term Debt	27,300			(27,300		)	—			—		—
Debt Issuance Costs	(942		)	—			—			—		(942		)
Treasury Stock Purchases	(21,086		)	—			—			—		(21,086		)
Stock Option Exercise Proceeds and Tax Benefits	994			—			—			—		994
Cash Dividends Paid	(5,730		)	—			—			—		(5,730		)
Net Cash Provided by (Used in) Financing Activities	536			(27,300		)	(300		)	—		(27,064		)
Effect of Foreign Currency Exchange Rate Changes on Cash and Cash Equivalents	—			—			31			—		31
Net Increase (Decrease) in Cash and Cash Equivalents	(105,670		)	308			15,079			—		(90,283		)
Cash and Cash Equivalents, Beginning	162,628			1,275			24,542			—		188,445
Cash and Cash Equivalents, Ending	$	56,958		$	1,583		$	39,621		$	—	$	98,162

CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended December 30, 2012

(Unaudited)



	Briggs & Stratton Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net Cash Provided by (Used in) Operating Activities	$	(172,869	)	$	60,368		$	37,089		$	—	$	(75,412	)
Cash Flows from Investing Activities:
Additions to Plant and Equipment	(12,121		)	(3,464		)	(1,159		)	—		(16,744		)
Proceeds Received on Disposition of Plant and Equipment	19			5,265			983			—		6,267
Cash Investment in Subsidiary	(18,063		)	—			18,063			—		—
Cash Paid for Acquisition, Net of Cash Acquired	—			—			(57,807		)	—		(57,807		)
Net Cash Provided by (Used in) Investing Activities	(30,165		)	1,801			(39,920		)	—		(68,284		)
Cash Flows from Financing Activities:
Net Borrowings (Repayments) on Loans, Notes Payable and Long-Term Debt	85,519			(66,619		)	—			—		18,900
Treasury Stock Purchases	(19,235		)	—			—			—		(19,235		)
Stock Option Exercise Proceeds and Tax Benefits	11,336			—			—			—		11,336
Cash Dividends Paid	(5,807		)	—			—			—		(5,807		)
Net Cash Provided by (Used in) Financing Activities	71,813			(66,619		)	—			—		5,194
Effect of Foreign Currency Exchange Rate Changes on Cash and Cash Equivalents	—			—			669			—		669
Net Increase (Decrease) in Cash and Cash Equivalents	(131,221		)	(4,450		)	(2,162		)	—		(137,833		)
Cash and Cash Equivalents, Beginning	133,108			5,375			17,592			—		156,075
Cash and Cash Equivalents, Ending	$	1,887		$	925		$	15,430		$	—	$	18,242