Subsidiary Guarantors of Senior Notes due 2024

3 Months Ended

Mar. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Subsidiary Guarantors of Senior Notes due 2024

Subsidiary Guarantors of Senior Notes due 2024

The following tables present consolidating (condensed) financial information for (a) Welbilt; (b) the guarantors of the Senior Notes, which include substantially all of the domestic, 100% owned subsidiaries of Welbilt ("Subsidiary Guarantors"); and (c) the wholly and partially owned foreign subsidiaries of Welbilt, which do not guarantee the Senior Notes ("Non-Guarantor Subsidiaries"). The information includes elimination entries necessary to consolidate the Subsidiary Guarantors and the Non-Guarantor Subsidiaries. Investments in subsidiaries are accounted for using the equity method of accounting. The principal elimination entries eliminate investments in subsidiaries, equity and intercompany balances and transactions. Separate financial statements of the Subsidiary Guarantors are not presented because the guarantors are fully and unconditionally, jointly and severally liable under the guarantees, except for normal and customary release provisions.

, INC.

Consolidating (Condensed) Statement of Operations

For the Three Months EndedMarch 31, 2017 (Unaudited)

(in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net sales	$	—		$	241.4		$	173.0	$	(86.4	)	$	328.0
Cost of sales	0.9			169.7			120.8		(86.4		)	205.0
Gross profit	(0.9		)	71.7			52.2		—			123.0
Selling, general and administrative expenses	10.1			40.8			23.4		—			74.3
Amortization expense	—			7.1			0.7		—			7.8
Separation expense	0.9			—			—		—			0.9
Restructuring expense	3.7			0.9			—		—			4.6
Asset impairment expense	—			0.2			0.2		—			0.4
(Loss) earnings from operations	(15.6		)	22.7			27.9		—			35.0
Interest expense	22.2			0.3			0.7		—			23.2
Loss on early extinguishment of debt	3.2			—			—		—			3.2
Other (income) expense — net	(2.9		)	(5.3		)	9.7		—			1.5
Equity in earnings (loss) of subsidiaries	30.0			12.6			—		(42.6		)	—
(Loss) earnings before income taxes	(8.1		)	40.3			17.5		(42.6		)	7.1
Income (benefit) taxes	(13.1		)	10.3			4.9		—			2.1
Net earnings (loss)	$	5.0		$	30.0		$	12.6	$	(42.6	)	$	5.0
Total other comprehensive income (loss), net of tax	6.8			4.4			3.9		(8.3		)	6.8
Comprehensive income (loss)	$	11.8		$	34.4		$	16.5	$	(50.9	)	$	11.8

WELBILT, INC.

Consolidating (Condensed) Statement of Operations

For the Three Months EndedMarch 31, 2016 (Unaudited)

(in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	243.1		$	164.1		$	(81.7	)	$	325.5
Cost of sales	0.3			169.8			119.5			(81.7		)	207.9
Gross profit	(0.3		)	73.3			44.6			—			117.6
Selling, general and administrative expenses	10.0			34.7			27.1			—			71.8
Amortization expense	—			7.1			0.7			—			7.8
Separation expense	3.0			—			—			—			3.0
Restructuring expense	—			1.1			0.2			—			1.3
(Loss) earnings from operations	(13.3		)	30.4			16.6			—			33.7
Interest expense	7.8			0.7			—			—			8.5
Interest expense on notes with MTW — net	—			—			0.1			—			0.1
Other expense (income) — net	9.9			45.0			(52.5		)	—			2.4
Equity in earnings (loss) of subsidiaries	36.5			46.7			—			(83.2		)	—
Earnings (loss) before income taxes	5.5			31.4			69.0			(83.2		)	22.7
Income (benefit) taxes	(12.6		)	(5.1		)	22.3			—			4.6
Net earnings (loss)	$	18.1		$	36.5		$	46.7		$	(83.2	)	$	18.1
Total other comprehensive income (loss), net of tax	9.2			19.8			25.8			(45.6		)	9.2
Comprehensive income (loss)	$	27.3		$	56.3		$	72.5		$	(128.8	)	$	27.3

, INC.

Consolidating (Condensed) Balance Sheet

As of March 31, 2017 (Unaudited)

(in millions)	Parent			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	0.9		$	—	$	82.6		$	(0.9	)	$	82.6
Restricted cash	—			—		0.2			—			0.2
Accounts receivable — net	—			0.5		93.4			(1.1		)	92.8
Inventories — net	—			83.5		87.5			—			171.0
Prepaids and other current assets	13.1			4.3		11.6			(3.2		)	25.8
Current assets held for sale	—			4.6		2.6			—			7.2
Total current assets	14.0			92.9		277.9			(5.2		)	379.6
Property, plant and equipment — net	1.4			64.9		41.4			—			107.7
Goodwill	—			832.4		13.2			—			845.6
Other intangible assets — net	—			416.4		61.5			—			477.9
Intercompany long-term note receivable	—			20.0		—			(20.0		)	—
Due from affiliates	—			3,071.1		—			(3,071.1		)	—
Investment in subsidiaries	3,810.3			—		—			(3,810.3		)	—
Other non-current assets	7.2			5.2		19.7			(5.8		)	26.3
Total assets	$	3,832.9		$	4,502.9	$	413.7		$	(6,912.4	)	$	1,837.1
Liabilities and equity
Current liabilities:
Accounts payable	$	1.2		$	60.9	$	56.9		$	(1.1	)	$	117.9
Accrued expenses and other liabilities	21.9			68.7		47.1			—			137.7
Short-term borrowings	—			0.9		4.0			(0.9		)	4.0
Current portion of long-term debt and capital leases	—			0.4		0.2			—			0.6
Product warranties	—			18.4		9.4			(3.2		)	24.6
Total current liabilities	23.1			149.3		117.6			(5.2		)	284.8
Long-term debt and capital leases	1,350.9			1.6		0.9			—			1,353.4
Deferred income taxes	118.6			—		17.7			—			136.3
Pension and postretirement health obligations	46.8			4.9		—			(5.8		)	45.9
Intercompany long-term note payable	15.7			—		4.3			(20.0		)	—
Due to affiliates	2,286.5			—		784.6			(3,071.1		)	—
Investment in subsidiaries	—			512.0		—			(512.0		)	—
Other long-term liabilities	17.6			24.8		0.6			—			43.0
Total non-current liabilities	3,836.1			543.3		808.1			(3,608.9		)	1,578.6
Total (deficit) equity:
Total (deficit) equity	(26.3		)	3,810.3		(512.0		)	(3,298.3		)	(26.3		)
Total liabilities and equity	$	3,832.9		$	4,502.9	$	413.7		$	(6,912.4	)	$	1,837.1

WELBILT, INC.

Consolidating (Condensed) Balance Sheet

As of December 31, 2016 (Audited)

(in millions)	Parent			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	0.4		$	2.3	$	51.1		$	—		$	53.8
Restricted cash	—			—		6.4			—			6.4
Accounts receivable — net	0.5			—		86.1			(4.9		)	81.7
Inventories — net	—			74.3		71.3			—			145.6
Prepaids and other current assets	0.9			4.5		8.5			—			13.9
Current assets held for sale	—			2.3		4.5			—			6.8
Total current assets	1.8			83.4		227.9			(4.9		)	308.2
Property, plant and equipment — net	1.2			67.9		40.0			—			109.1
Goodwill	—			832.4		12.9			—			845.3
Other intangible assets — net	—			423.5		60.9			—			484.4
Intercompany long-term note receivable	—			20.0		—			(20.0		)	—
Due from affiliates	—			3,085.8		—			(3,085.8		)	—
Investment in subsidiaries	3,780.3			—		—			(3,780.3		)	—
Other non-current assets	2.7			5.1		19.7			(5.4		)	22.1
Total assets	$	3,786.0		$	4,518.1	$	361.4		$	(6,896.4	)	$	1,769.1
Liabilities and equity
Current liabilities:
Accounts payable	$	0.1		$	64.6	$	48.6		$	(4.9	)	$	108.4
Accrued expenses and other liabilities	14.1			97.5		62.9			—			174.5
Current portion of capital leases	—			0.5		1.1			—			1.6
Product warranties	—			18.4		9.5			—			27.9
Current liabilities held for sale	—			—		0.7			—			0.7
Total current liabilities	14.2			181.0		122.8			(4.9		)	313.1
Long-term debt and capital leases	1,277.0			1.7		—			—			1,278.7
Deferred income taxes	120.5			—		17.3			—			137.8
Pension and postretirement health obligations	47.9			4.9		—			(5.4		)	47.4
Intercompany long-term note payable	15.7			—		4.3			(20.0		)	—
Due to affiliates	2,344.8			—		741.0			(3,085.8		)	—
Investment in subsidiaries	—			524.6		—			(524.6		)	—
Other long-term liabilities	9.4			25.6		0.6			—			35.6
Total non-current liabilities	3,815.3			556.8		763.2			(3,635.8		)	1,499.5
Total (deficit) equity:
Total (deficit) equity	(43.5		)	3,780.3		(524.6		)	(3,255.7		)	(43.5		)
Total liabilities and equity	$	3,786.0		$	4,518.1	$	361.4		$	(6,896.4	)	$	1,769.1

WELBILT, INC.

Consolidating (Condensed) Statement of Cash Flows

For the Three Months EndedMarch 31, 2017 (Unaudited)

(in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities
Net cash used in operating activities	$	(16.9	)	$	(15.6	)	$	(18.1	)	$	—		$	(50.6	)
Cash flows from investing activities
Capital expenditures	(0.3		)	(2.2		)	(2.4		)	—			(4.9		)
Changes in restricted cash	—			—			6.2			—			6.2
Intercompany investment	(58.3		)	—			—			58.3			—
Net cash (used in) provided by investing activities	(58.6		)	(2.2		)	3.8			58.3			1.3
Cash flows from financing activities
Proceeds from long-term debt and capital leases	78.0			—			0.9			—			78.9
Repayments on long-term debt and capital leases	(1.5		)	(0.1		)	(0.9		)	—			(2.5		)
Debt issuance costs	(1.4		)	—			—			—			(1.4		)
Changes in short-term borrowings	—			0.9			4.0			(0.9		)	4.0
Exercises of stock options	0.9			—			—			—			0.9
Intercompany financing	—			14.7			43.6			(58.3		)	—
Net cash provided by (used in) financing activities	76.0			15.5			47.6			(59.2		)	79.9
Effect of exchange rate changes on cash	—			—			(1.8		)	—			(1.8		)
Net increase (decrease) in cash and cash equivalents	0.5			(2.3		)	31.5			(0.9		)	28.8
Balance at beginning of period	0.4			2.3			51.1			—			53.8
Balance at end of period	$	0.9		$	—		$	82.6		$	(0.9	)	$	82.6

WELBILT, INC.

Consolidating (Condensed) Statement of Cash Flows

For the Three Months EndedMarch 31, 2016 (Unaudited)

(in millions)	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities
Net cash provided by (used in) operating activities	$	14.0		$	(39.8	)	$	2.8		$	—		$	(23.0	)
Cash flows from investing activities
Capital expenditures	(0.9		)	(1.6		)	(2.0		)	—			(4.5		)
Changes in restricted cash	—			—			0.3			—			0.3
Intercompany investment	(40.5		)	—			—			40.5			—
Net cash (used in) provided by investing activities	(41.4		)	(1.6		)	(1.7		)	40.5			(4.2		)
Cash flows from financing activities
Proceeds from long-term debt and capital leases	1,424.0			0.2			7.2			—			1,431.4
Repayments on long-term debt and capital leases	—			(0.2		)	—			—			(0.2		)
Debt issuance costs	(40.6		)	—			—			—			(40.6		)
Changes in short-term borrowings	—			1.6			14.5			(1.6		)	14.5
Dividend paid to MTW	(1,362.0		)	—			—			—			(1,362.0		)
Net transactions with MTW	6.1			—			—			—			6.1
Exercises of stock options	0.1			—			—			—			0.1
Intercompany financing	—			36.3			4.2			(40.5		)	—
Net cash provided by (used in) financing activities	27.6			37.9			25.9			(42.1		)	49.3
Effect of exchange rate changes on cash	—			—			0.5			—			0.5
Net increase (decrease) in cash and cash equivalents	0.2			(3.5		)	27.5			(1.6		)	22.6
Balance at beginning of period	—			3.5			28.5			—			32.0
Balance at end of period	$	0.2		$	—		$	56.0		$	(1.6	)	$	54.6