Guarantor Subsidiaries

The following schedules present condensed consolidating financial information of the Company as of March 31, 2019 and 2018, and for the twelve-month periods ended March 31, 2019, 2018 and 2017 for (a) Rexnord Corporation, the parent company (the "Parent") (b) RBS Global, Inc. and its wholly-owned subsidiary Rexnord LLC, which together are co-issuers (the "Issuers") of the outstanding Notes; (c) on a combined basis, the domestic subsidiaries of the Company, all of which are wholly-owned by the Issuers (collectively, the "Guarantor Subsidiaries") and guarantors of those Notes; and (d) on a combined basis, the foreign subsidiaries of the Company (collectively, the "Non-Guarantor Subsidiaries"). Separate financial statements of the Guarantor Subsidiaries are not presented because their guarantees of the Notes are full, unconditional and joint and several, and the Company believes separate financial statements and other disclosures regarding the Guarantor Subsidiaries are not material to investors.

Condensed Consolidating Balance Sheets

March 31, 2019

(in millions)



	Parent			Issuers		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	1.4		$	0.2	$	107.7		$	183.2	$	—		$	292.5
Receivables, net	—			—		219.6			114.7		—			334.3
Inventories	—			—		214.3			102.2		—			316.5
Income tax receivable	—			—		0.5			2.8		—			3.3
Other current assets	—			—		12.5			23.8		—			36.3
Total current assets	1.4			0.2		554.6			426.7		—			982.9
Property, plant and equipment, net	—			—		251.2			131.8		—			383.0
Intangible assets, net	—			—		411.6			99.9		—			511.5
Goodwill	—			—		1,017.1			282.6		—			1,299.7
Investment in:
Issuer subsidiaries	1,212.1			—		—			—		(1,212.1		)	—
Guarantor subsidiaries	—			3,146.0		—			—		(3,146.0		)	—
Non-guarantor subsidiaries	—			—		547.4			—		(547.4		)	—
Other assets	—			1.1		63.1			18.4		—			82.6
Total assets	$	1,213.5		$	3,147.3	$	2,845.0		$	959.4	$	(4,905.5	)	$	3,259.7
Liabilities and stockholders' equity
Current liabilities:
Current maturities of debt	$	—		$	—	$	0.1		$	1.1	$	—		$	1.2
Trade payables	—			—		129.7			62.0		—			191.7
Compensation and benefits	—			—		42.4			21.3		—			63.7
Current portion of pension and postretirement benefit obligations	—			—		1.9			1.4		—			3.3
Other current liabilities	3.0			7.5		90.3			36.3		—			137.1
Total current liabilities	3.0			7.5		264.4			122.1		—			397.0
Long-term debt	—			1,213.4		14.4			9.0		—			1,236.8
Note (receivable from) payable to affiliates, net	(20.7		)	714.3		(879.0		)	185.4		—			—
Pension and postretirement benefit obligations	—			—		112.9			45.1		—			158.0
Deferred income taxes	—			—		98.8			27.1		—			125.9
Other liabilities	0.2			—		87.4			23.4		—			111.0
Total liabilities	(17.5		)	1,935.2		(301.1		)	412.1		—			2,028.7
Total stockholders' equity	1,231.0			1,212.1		3,146.1			547.3		(4,905.5		)	1,231.0
Total liabilities and stockholders' equity	$	1,213.5		$	3,147.3	$	2,845.0		$	959.4	$	(4,905.5	)	$	3,259.7

Condensed Consolidating Balance Sheets

March 31, 2018

(in millions)



	Parent		Issuers		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—	$	—	$	40.2		$	153.0	$	—		$	193.2
Receivables, net	—		—		200.4			114.3		—			314.7
Inventories	—		—		196.3			107.8		—			304.1
Income tax receivable	7.4		—		5.4			4.7		—			17.5
Other current assets	—		—		12.0			25.9		—			37.9
Current assets held for sale	—		—		12.1			118.2		—			130.3
Total current assets	7.4		—		466.4			523.9		—			997.7
Property, plant and equipment, net	—		—		250.1			146.4		—			396.5
Intangible assets, net	—		—		438.8			92.1		—			530.9
Goodwill	—		—		1,010.6			265.5		—			1,276.1
Investment in:
Issuer subsidiaries	1,177.5		—		—			—		(1,177.5		)	—
Guarantor subsidiaries	—		3,053.3		—			—		(3,053.3		)	—
Non-guarantor subsidiaries	—		—		602.3			—		(602.3		)	—
Other assets	40.5		1.4		34.2			37.9		—			114.0
Non-current assets held for sale	—		—		8.0			100.5		—			108.5
Total assets	$	1,225.4	$	3,054.7	$	2,810.4		$	1,166.3	$	(4,833.1	)	$	3,423.7
Liabilities and stockholders' equity
Current liabilities:
Current maturities of debt	$	—	$	—	$	0.1		$	3.8	$	—		$	3.9
Trade payables	—		—		128.8			61.1		—			189.9
Compensation and benefits	—		—		41.5			22.4		—			63.9
Current portion of pension and postretirement benefit obligations	—		—		2.4			1.6		—			4.0
Other current liabilities	3.0		9.4		74.0			41.0		—			127.4
Current liabilities held for sale	—		—		6.0			59.1		—			65.1
Total current liabilities	3.0		9.4		252.8			189.0		—			454.2
Long-term debt	—		1,285.8		55.8			10.5		—			1,352.1
Note payable to (receivable from) affiliates, net	9.4		581.3		(845.6		)	254.9		—			—
Pension and postretirement benefit obligations	—		—		114.7			48.5		—			163.2
Deferred income taxes	—		0.7		116.2			32.4		—			149.3
Other liabilities	0.2		—		62.3			15.8		—			78.3
Non-current liabilities held for sale	—		—		0.9			12.9		—			13.8
Total liabilities	12.6		1,877.2		(242.9		)	564.0		—			2,210.9
Total stockholders' equity	1,212.8		1,177.5		3,053.3			602.3		(4,833.1		)	1,212.8
Total liabilities and stockholders' equity	$	1,225.4	$	3,054.7	$	2,810.4		$	1,166.3	$	(4,833.1	)	$	3,423.7

Condensed Consolidating Statements of Operations

For the Year Ended March 31, 2019

(in millions)



	Parent			Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	—		$	1,565.0		$	672.6		$	(186.7	)	$	2,050.9
Cost of sales	—			—			977.1			475.7			(186.7		)	1,266.1
Gross profit	—			—			587.9			196.9			—			784.8
Selling, general and administrative expenses	—			—			328.8			104.3			—			433.1
Restructuring and other similar charges	—			—			7.6			4.5			—			12.1
Amortization of intangible assets	—			—			27.5			6.5			—			34.0
Income from operations	—			—			224.0			81.6			—			305.6
Non-operating (expense) income:
Interest income (expense), net:
To third parties	—			(68.2		)	(2.0		)	0.3			—			(69.9		)
To affiliates	2.0			61.7			(53.2		)	(10.5		)	—			—
(Loss) gain on the extinguishment of debt	—			(0.7		)	5.0			—			—			4.3
Other income (expense), net	—			0.3			4.1			(5.6		)	—			(1.2		)
Income (loss) from continuing operations before income taxes	2.0			(6.9		)	177.9			65.8			—			238.8
Provision for income taxes	—			—			(44.5		)	(8.9		)	—			(53.4		)
Equity method investment income	—			—			—			3.6			—			3.6
Income (loss) before equity in income of subsidiaries	2.0			(6.9		)	133.4			60.5			—			189.0
Equity in earnings (loss) of subsidiaries	32.3			39.2			(51.9		)	—			(19.6		)	—
Net income from continuing operations	34.3			32.3			81.5			60.5			(19.6		)	189.0
Loss from discontinued operations, net of tax	—			—			(42.3		)	(112.4		)	—			(154.7		)
Net income (loss)	34.3			32.3			39.2			(51.9		)	(19.6		)	34.3
Non-controlling interest income	—			—			—			—			—			—
Net income (loss) attributable to Rexnord	34.3			32.3			39.2			(51.9		)	(19.6		)	34.3
Dividends on preferred stock	(23.2		)	—			—			—			—			(23.2		)
Net income (loss) attributable to Rexnord common stockholders	11.1			32.3			39.2			(51.9		)	(19.6		)	11.1

Comprehensive income (loss)	$	34.3		$	22.5		$	34.1		$	(59.5	)	$	(19.6	)	$	11.8

Condensed Consolidating Statements of Operations

For the Year Ended March 31, 2018

(in millions)



	Parent			Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	—		$	1,457.3		$	566.9		$	(172.6	)	$	1,851.6
Cost of sales	—			—			910.3			407.4			(172.6		)	1,145.1
Gross profit	—			—			547.0			159.5			—			706.5
Selling, general and administrative expenses	—			—			310.5			83.3			—			393.8
Restructuring and other similar charges				—			12.8			1.3			—			14.1
Amortization of intangible assets	—			—			26.6			5.6			—			32.2
Income from operations	—			—			197.1			69.3			—			266.4
Non-operating (expense) income:
Interest income (expense), net:
To third parties	—			(75.3		)	(0.4		)	0.6			—			(75.1		)
To affiliates	3.0			27.4			(13.1		)	(17.3		)	—			—
Loss on the extinguishment of debt	—			(11.9		)	—			—			—			(11.9		)
Other (expense) income, net	—			—			(1.3		)	9.0			—			7.7
Income (loss) from continuing operations before income taxes	3.0			(59.8		)	182.3			61.6			—			187.1
Benefit (provision) for income taxes	—			—			39.7			(20.2		)	—			19.5
Net income (loss) before equity in loss of subsidiaries	3.0			(59.8		)	222.0			41.4			—			206.6
Equity in earnings of subsidiaries	73.0			132.8			30.7			—			(236.5		)	—
Net income from continuing operations	76.0			73.0			252.7			41.4			(236.5		)	206.6
Loss from discontinued operations, net of tax	—			—			(119.9		)	(10.7		)	—			(130.6		)
Net income	76.0			73.0			132.8			30.7			(236.5		)	76.0
Non-controlling interest income	—			—			—			0.1			—			0.1
Net income attributable to Rexnord	76.0			73.0			132.8			30.6			(236.5		)	75.9
Dividends on preferred stock	(23.2		)	—			—			—			—			(23.2		)
Net income attributable to Rexnord common stockholders	52.8			73.0			132.8			30.6			(236.5		)	52.7

Comprehensive income	$	76.0		$	89.2		$	135.6		$	74.6		$	(236.5	)	$	138.9

Condensed Consolidating Statements of Operations

For the Year Ended March 31, 2017

(in millions)



	Parent			Issuers			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	—		$	1,372.3		$	455.2		$	(115.0	)	$	1,712.5
Cost of sales	—			—			878.0			323.1			(115.0		)	1,086.1
Gross profit	—			—			494.3			132.1			—			626.4
Selling, general and administrative expenses	—			—			286.1			70.0			—			356.1
Restructuring and other similar charges	—			—			24.9			1.2			—			26.1
Amortization of intangible assets	—			—			35.1			5.9			—			41.0
Income from operations	—			—			148.2			55.0			—			203.2
Non-operating (expense) income:
Interest income (expense), net:
To third parties	—			(88.1		)	(0.4		)	0.2			—			(88.3		)
To affiliates	1.1			74.3			(53.4		)	(22.0		)	—			—
Loss on the extinguishment of debt	—			(7.8		)	—			—			—			(7.8		)
Other (expense) income, net	—			(0.3		)	(0.4		)	0.9			—			0.2
Income (loss) from continuing operations before income taxes	1.1			(21.9		)	94.0			34.1			—			107.3
Provision for income taxes	—			(0.1		)	(0.4		)	(15.1		)	—			(15.6		)
Net income (loss) before equity in earnings of subsidiaries	1.1			(22.0		)	93.6			19.0			—			91.7
Equity in earnings of subsidiaries	73.0			95.0			13.0			—			(181.0		)	—
Net income from continuing operations	74.1			73.0			106.6			19.0			(181.0		)	91.7
Loss from discontinued operations, net of tax	—			—			(11.6		)	(6.0		)	—			(17.6		)
Net income	74.1			73.0			95.0			13.0			(181.0		)	74.1
Non-controlling interest loss	—			—			—			—			—			—
Net income attributable to Rexnord	74.1			73.0			95.0			13.0			(181.0		)	74.1
Dividends on preferred stock	(7.3		)	—			—			—			—			(7.3		)
Net income attributable to Rexnord common stockholders	66.8			73.0			95.0			13.0			(181.0		)	66.8

Comprehensive income	$	74.1		$	77.5		$	86.0		$	19.5		$	(181.0	)	$	76.1

Condensed Consolidating Statements of Cash Flows

For the Year Ended March 31, 2019

(in millions)



	Parent			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Operating activities
Cash provided by operating activities	$	19.9		$	75.2		$	112.9		$	50.1		$	—	$	258.1
Investing activities
Expenditures for property, plant and equipment	—			—			(33.0		)	(11.9		)	—		(44.9		)
Acquisitions, net of cash acquired	—			—			(2.0		)	(21.4		)	—		(23.4		)
Proceeds from dispositions of long-lived assets	—			—			4.7			—			—		4.7
Cash dividend from equity method investment	—			—			—			1.3			—		1.3
Net proceeds from divestiture of discontinued operations	—			—			3.0			6.0			—		9.0
Cash used for investing activities	—			—			(27.3		)	(26.0		)	—		(53.3		)
Financing activities
Proceeds from borrowings of debt	—			—			268.0			2.8			—		270.8
Repayments of debt	—			(75.0		)	(286.8		)	(7.2		)	—		(369.0		)
Payments of preferred stock dividends	(23.2		)	—			—			—			—		(23.2		)
Proceeds from exercise of stock options	7.9			—			—			—			—		7.9
Taxes withheld and paid on employees' share-based payment awards	(3.2		)	—			—			—			—		(3.2		)
Cash used for financing activities	(18.5		)	(75.0		)	(18.8		)	(4.4		)	—		(116.7		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—			—			—			(13.2		)	—		(13.2		)
Increase in cash, cash equivalents and restricted cash	1.4			0.2			66.8			6.5			—		74.9
Cash, cash equivalents and restricted cash at beginning of period	—			—			40.9			176.7			—		217.6
Cash, cash equivalents and restricted cash at end of period	$	1.4		$	0.2		$	107.7		$	183.2		$	—	$	292.5

Condensed Consolidating Statements of Cash Flows

For the Year Ended March 31, 2018

(in millions)



	Parent			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Operating activities
Cash provided by (used for) operating activities	$	12.3		$	313.4		$	(161.2	)	$	64.0		$	—	$	228.5
Investing activities
Expenditures for property, plant and equipment	—			—			(28.4		)	(12.3		)	—		(40.7		)
Acquisitions, net of cash acquired	—			—			(50.0		)	(123.6		)	—		(173.6		)
Proceeds from dispositions of long-lived assets	—			—			5.3			0.2			—		5.5
Cash used for investing activities	—			—			(73.1		)	(135.7		)	—		(208.8		)
Financing activities
Proceeds from borrowings of debt	—			1,324.0			205.8			—			—		1,529.8
Repayments of debt	—			(1,626.5		)	(189.7		)	—			—		(1,816.2		)
Payment of debt issuance costs	—			(11.0		)	—			—			—		(11.0		)
Payments of preferred stock dividends	(23.2		)	—			—			—			—		(23.2		)
Proceeds from exercise of stock options	7.2			—			—			—			—		7.2
Taxes withheld and paid on employees' share-based payment awards	(1.2		)	—			—			—			—		(1.2		)
Proceeds from financing lease obligation	—			—			5.8			—			—		5.8
Cash (used for) provided by financing activities	(17.2		)	(313.5		)	21.9			—			—		(308.8		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—			—			—			16.6			—		16.6
Decrease in cash, cash equivalents and restricted cash	(4.9		)	(0.1		)	(212.4		)	(55.1		)	—		(272.5		)
Cash, cash equivalents and restricted cash at beginning of period	4.9			0.1			253.3			231.8			—		490.1
Cash, cash equivalents and restricted cash at end of period	$	—		$	—		$	40.9		$	176.7		$	—	$	217.6

Condensed Consolidating Statements of Cash Flows

For the Year Ended March 31, 2017

(in millions)



	Parent			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Operating activities
Net cash (used for) provided by operating activities	$	(397.5	)	$	308.8		$	215.7		$	68.1		$	—	$	195.1
Investing activities
Expenditures for property, plant and equipment	—			—			(43.3		)	(11.2		)	—		(54.5		)
Acquisitions, net of cash	—			—			(213.4		)	(0.3		)	—		(213.7		)
Proceeds from dispositions of long-lived assets	—			—			4.2			—			—		4.2
Cash used for investing activities	—			—			(252.5		)	(11.5		)	—		(264.0		)
Financing activities
Proceeds from borrowings of debt	—			1,606.4			—			—			—		1,606.4
Repayments of debt	—			(1,905.3		)	—			—			—		(1,905.3		)
Payment of debt issuance costs	—			(11.8		)	—			—			—		(11.8		)
Deferred acquisition payment	—			—			—			(5.7		)	—		(5.7		)
Proceeds from issuance of preferred stock, net of direct offering costs	389.7			—			—			—			—		389.7
Payments of preferred stock dividends	(4.4		)	—			—			—			—		(4.4		)
Proceeds from exercise of stock options	11.0			—			—			—			—		11.0
Cash provided by (used for) financing activities	396.3			(310.7		)	—			(5.7		)	—		79.9
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—			—			—			(5.5		)	—		(5.5		)
(Decrease) increase in cash, cash equivalents and restricted cash	(1.2		)	(1.9		)	(36.8		)	45.4			—		5.5
Cash, cash equivalents and restricted cash at beginning of period	6.1			2.0			290.1			186.4			—		484.6
Cash, cash equivalents and restricted cash at end of period	$	4.9		$	0.1		$	253.3		$	231.8		$	—	$	490.1