GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION (Tables)

3 Months Ended

Mar. 31, 2013

Guarantor Subsidiaries Balance Sheet

Balance Sheet as of March 31, 2013:

In thousands	Parent	Guarantors	Non-Guarantors	Elimination	Consolidated
Cash and cash equivalents	$52,096	$3,027	$170,215	$—	$225,338
Accounts receivable	426	242,042	190,329	—	432,797
Inventories	—	289,157	139,427	—	428,584
Other current assets	63,797	5,907	12,563	—	82,267
Total current assets	116,319	540,133	512,534	—	1,168,986
Property, plant and equipment	4,880	125,070	112,766	—	242,716
Goodwill	7,980	403,993	316,048	—	728,021
Investment in subsidiaries	3,319,453	377,774	—	(3,697,227)	—
Other intangibles	—	167,380	157,917	—	325,297
Other long term assets	(10,924)	5,915	46,164	—	41,155
Total Assets	$3,437,708	$1,620,265	$1,145,429	$(3,697,227)	$2,506,175
Current liabilities	$53,235	$333,294	$174,452	$—	$560,981
Inter-company	1,568,271	(1,647,284)	79,013	—	—
Long-term debt	417,000	159	368	—	417,527
Other long term liabilities	67,934	37,335	91,130	—	196,399
Total liabilities	2,106,440	(1,276,496)	344,963	—	1,174,907
Stockholders’ equity	1,331,268	2,896,761	800,466	(3,697,227)	1,331,268
Total Liabilities and Stockholders’ Equity	$3,437,708	$1,620,265	$1,145,429	$(3,697,227)	$2,506,175

Balance Sheet as of December31, 2012:

In thousands	Parent	Guarantors	Non-Guarantors	Elimination	Consolidated
Cash and cash equivalents	$22,335	$5,473	$187,958	$ —	$215,766
Accounts receivable	1,210	213,895	174,810	—	389,915
Inventories	—	278,610	128,429	—	407,039
Other current assets	63,496	5,400	11,322	—	80,218
Total current assets	87,041	503,378	502,519	—	1,092,938
Property, plant and equipment, net	4,685	127,165	112,238	—	244,088
Goodwill	7,980	402,510	255,532	—	666,022
Investment in subsidiaries	3,146,931	279,731	—	(3,426,662)	—
Other intangibles, net	—	169,374	138,947	—	308,321
Other long term assets	(10,491)	4,309	46,355	—	40,173
Total Assets	$3,236,146	$1,486,467	$1,055,591	$(3,426,662)	$2,351,542
Current liabilities	$64,404	$321,675	$166,980	$ —	$553,059
Intercompany	1,506,541	(1,598,419)	91,878	—	—
Long-term debt	317,000	168	685	—	317,853
Other long term liabilities	66,184	37,845	94,584	—	198,613
Total liabilities	1,954,129	(1,238,731)	354,127	—	1,069,525
Stockholders’ equity	1,282,017	2,725,198	701,464	(3,426,662)	1,282,017
Total Liabilities and Stockholders’ Equity	$3,236,146	$1,486,467	$1,055,591	$(3,426,662)	$2,351,542

Guarantor Subsidiaries Income Statement

Income Statement for the Three Months Ended March 31, 2013:

In thousands	Parent	Guarantors	Non-Guarantors	Elimination(1)	Consolidated
Net sales	$—	$418,035	$           237,160	$         (39,685)	$615,510
Cost of sales	487	(270,545)	(182,142)	19,578	(432,622)
Gross profit	487	147,490	55,018	(20,107)	182,888
Operating expenses	(15,174)	(38,319)	(25,728)	—	(79,221)
Operating (loss) profit	(14,687)	109,171	29,290	(20,107)	103,667
Interest (expense) income, net	(4,916)	1,284	18	—	(3,614)
Other income (expense), net	10,896	(3,776)	(7,701)	—	(581)
Equity earnings	101,415	17,700	—	(119,115)	—
Income (loss) from operations before income tax	92,708	124,379	21,607	(139,222)	99,472
Income tax expense	(23,095)	(3,426)	(3,338)	—	(29,859)
Net income (loss) attributable to Wabtec shareholders	$69,613	$120,953	$             18,269	$       (139,222)	$69,613
Comprehensive income (loss) attributable to Wabtec shareholders	$71,799	$120,953	$             (9,657)	$      (139,222)	$43,873

(1)Includes elimination of gross profit realized with certain intercompany transactions between Guarantor and Non-Guarantor subsidiaries.

Income Statement for the Three Months Ended March 31, 2012:

In thousands	Parent	Guarantors	Non-Guarantors	Elimination(1)	Consolidated
Net sales	$—	$414,650	$210,053	$(41,394)	$583,309
Cost of sales	(55)	(270,578)	(160,269)	16,974	(413,928)
Gross (loss) profit	(55)	144,072	49,784	(24,420)	169,381
Operating expenses	(17,201)	(38,984)	(19,086)	—	(75,271)
Operating (loss) profit	(17,256)	105,088	30,698	(24,420)	94,110
Interest (expense) income, net	(5,462)	1,178	560	—	(3,724)
Other income (expense), net	7,832	(4,303)	(3,643)	—	(114)
Equity earnings	93,698	12,387	—	(106,085)	—
Income (loss) from operations before income tax	78,812	114,350	27,615	(130,505)	90,272
Income tax expense	(19,551)	(3,593)	(7,867)	—	(31,011)
Net income (loss) attributable to Wabtec shareholders	$59,261	$110,757	$19,748	$(130,505)	$59,261
Comprehensive income (loss) attributable to Wabtec shareholders	$59,585	$110,757	$30,649	$(130,505)	$70,486

(1)Includes elimination of gross profit realized with certain intercompany transactions between Guarantor and Non-Guarantor subsidiaries.

Guarantor Subsidiaries Condensed Statement of Cash Flows

Condensed Statement of Cash Flows for the Three Months Ended March 31, 2013:

In thousands	Parent	Guarantors	Non-Guarantors	Elimination	Consolidated
Net cash (used for) provided by operating activities	$(69,250)	$123,428	$           117,084	$(139,222)	$32,040
Net cash used for investing activities	(1,484)	(4,912)	(114,405)	—	(120,801)
Net cash provided by (used for) financing activities	100,495	(120,962)	(18,588)	139,222	100,167
Effect of changes in currency exchange rates	—	—	(1,834)	—	(1,834)
Increase (decrease) in cash	29,761	(2,446)	(17,743)	—	9,572
Cash, beginning of year	22,335	5,473	187,958	—	215,766
Cash, end of period	$52,096	$3,027	$           170,215	$—	$225,338

Condensed Statement of Cash Flows for the Three Months Ended March31, 2012:

In thousands	Parent	Guarantors	Non-Guarantors	Elimination	Consolidated
Net cash (used for) provided by operating activities	$     (1,309)	$107,900	$24,895	$(130,505)	$981
Net cash used for investing activities	(2,873)	(5,007)	(2,218)	—	(10,098)
Net cash (used for) provided by financing activities	(9,725)	(110,773)	(19,731)	130,505	(9,724)
Effect of changes in currency exchange rates	—	—	2,530	—	2,530
(Decrease) increase in cash	(13,907)	(7,880)	5,476	—	(16,311)
Cash, beginning of year	75,621	14,024	195,970	—	285,615
Cash, end of period	$61,714	$6,144	$201,446	$—	$269,304