GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION

The obligations under the Company's 2016 Notes, 2013 Notes, and Revolving Credit Facility and Term Loan are fully and unconditionally guaranteed by all U.S. subsidiaries as guarantors. Each guarantor is 100% owned by the parent company. In accordance with positions established by the Securities and Exchange Commission, the following shows separate financial information with respect to the parent, the guarantor subsidiaries and the non-guarantor subsidiaries. The principal elimination entries eliminate investment in subsidiaries and certain intercompany balances and transactions.

Balance Sheet for September 30, 2017:



In thousands	Parent		Guarantors			Non-Guarantors			Elimination			Consolidated
Cash and cash equivalents	$	3,049	$	6,082		$	218,949		$	—		$	228,080
Receivables, net	75,123		232,060			837,156			—			1,144,339
Inventories	132,044		140,745			491,992			—			764,781
Current assets - other	39,216		4,283			96,426			—			139,925
Total current assets	249,432		383,170			1,644,523			—			2,277,125
Property, plant and equipment, net	51,196		134,397			364,774			—			550,367
Goodwill	25,276		549,198			1,810,284			—			2,384,758
Investment in subsidiaries	6,304,037		2,508,725			—			(8,812,762		)	—
Other intangibles, net	30,905		251,485			857,997			—			1,140,387
Other long term assets	29,724		6,273			61,016			—			97,013
Total assets	$	6,690,570	$	3,833,248		$	4,738,594		$	(8,812,762	)	$	6,449,650
Current liabilities	$	162,470	199,511			$	1,103,459		—			$	1,465,440
Inter-company	2,031,256		(1,942,433		)	(88,823		)	—			—
Long-term debt	1,740,541		25			83,590			—			1,824,156
Long-term liabilities - other	38,601		87,935			297,149			—			423,685
Total liabilities	3,972,868		(1,654,962		)	1,395,375			—			3,713,281
Shareholders' equity	2,717,702		5,489,597			3,323,165			(8,812,762		)	2,717,702
Non-controlling interest	—		(1,387		)	20,054			—			18,667
Total shareholders' equity	$	2,717,702	$	5,488,210		$	3,343,219		$	(8,812,762	)	$	2,736,369
Total Liabilities and Shareholders' Equity	$	6,690,570	$	3,833,248		$	4,738,594		$	(8,812,762	)	$	6,449,650

Balance Sheet for December 31, 2016:



In thousands	Parent		Guarantors			Non-Guarantors		Elimination			Consolidated
Cash and cash equivalents	$	2,522	$	9,496		$	386,466	$	—		$	398,484
Receivables, net	79,041		202,779			660,688		—			942,508
Inventories	120,042		128,076			410,392		—			658,510
Current assets - other	52,576		(17,844		)	833,397		—			868,129
Total current assets	254,181		322,507			2,290,943		—			2,867,631
Property, plant and equipment, net	49,031		126,661			342,684		—			518,376
Goodwill	25,275		477,472			1,576,018		—			2,078,765
Investment in subsidiaries	5,388,613		1,325,150			—		(6,713,763		)	—
Other intangibles, net	31,897		204,512			817,451		—			1,053,860
Other long term assets	9,592		(1,914		)	54,708		—			62,386
Total assets	$	5,758,589	$	2,454,388		$	5,081,804	$	(6,713,763	)	$	6,581,018
Current liabilities	$	194,983	196,956			$	1,054,700	—			$	1,446,639
Inter-company	1,562,399		(1,848,777		)	286,378		—			—
Long-term debt	1,761,933		58			976		—			1,762,967
Long-term liabilities - other	33,298		74,977			286,312		—			394,587
Total liabilities	3,552,613		(1,576,786		)	1,628,366		—			3,604,193
Shareholders' equity	2,205,976		4,032,250			2,681,514		(6,713,763		)	2,205,977
Non-controlling interest	—		(1,076		)	771,924		—			770,848
Total shareholders' equity	$	2,205,976	$	4,031,174		$	3,453,438	$	(6,713,763	)	$	2,976,825
Total Liabilities and Shareholders' Equity	$	5,758,589	$	2,454,388		$	5,081,804	$	(6,713,763	)	$	6,581,018

Income Statement for the Three Months Ended September 30, 2017:



In thousands	Parent			Guarantors			Non-Guarantors			Elimination			Consolidated
Net Sales	$	134,906		$	270,116		$	587,289		$	(34,380	)	$	957,931
Cost of sales	(111,775		)	(176,291		)	(444,704		)	28,042			(704,728		)
Gross profit (loss)	23,131			93,825			142,585			(6,338		)	253,203
Total operating expenses	(22,714		)	(29,991		)	(98,487		)	—			(151,192		)
Income (loss) from operations	417			63,834			44,098			(6,338		)	102,011
Interest (expense) income, net	(19,222		)	1,143			186			—			(17,893		)
Other income (expense), net	274			(356		)	(2,851		)	—			(2,933		)
Equity earnings (loss)	80,874			19,806			—			(100,680		)	—
Pretax income (loss)	62,343			84,427			41,433			(107,018		)	81,185
Income tax expense	5,056			(5		)	(17,797		)	—			(12,746		)
Net income (loss)	67,399			84,422			23,636			(107,018		)	68,439
Less: Net income attributable to noncontrolling interest	—			155			(1,195		)	—			(1,040		)
Net income (loss) attributable to Wabtec shareholders	$	67,399		$	84,577		$	22,441		$	(107,018	)	$	67,399

Comprehensive income (loss) attributable to Wabtec shareholders	$	66,813		$	84,577		$	115,647		$	(107,018	)	$	160,019

Income Statement for the Three Months Ended September 30, 2016:



In thousands	Parent			Guarantors			Non-Guarantors			Elimination			Consolidated
Net Sales	$	155,731		$	259,174		$	295,336		$	(34,667	)	$	675,574
Cost of sales	(109,414		)	(186,546		)	(211,392		)	44,259			(463,093		)
Gross profit (loss)	46,317			72,628			83,944			9,592			212,481
Total operating expenses	(21,979		)	(29,019		)	(41,387		)	—			(92,385		)
(Loss) income from operations	24,338			43,609			42,557			9,592			120,096
Interest (expense) income, net	(7,854		)	1,728			69			—			(6,057		)
Other income (expense), net	6,600			(86		)	(5,326		)	—			1,188
Equity earnings (loss)	86,731			27,099			—			(113,830		)	—
Pretax income (loss)	109,815			72,350			37,300			(104,238		)	115,227
Income tax expense	(27,387		)	1,567			(6,979		)	—			(32,799		)
Net income (loss)	82,428			73,917			30,321			(104,238		)	82,428
Less: Net income attributable to noncontrolling interest	—			—			—			—			—
Net income attributable to Wabtec shareholders	$	82,428		$	73,917		$	30,321		$	(104,238	)	$	82,428

Comprehensive income (loss) attributable to Wabtec shareholders	$	82,987		$	73,916		$	34,054		$	(104,238	)	$	86,719

Income Statement for the Nine Months Ended September 30, 2017:



In thousands	Parent			Guarantors			Non-Guarantors			Elimination			Consolidated
Net Sales	$	417,156		$	778,893		$	1,708,646		$	(98,477	)	$	2,806,218
Cost of sales	(311,037		)	(503,686		)	(1,270,668		)	76,046			(2,009,345		)
Gross profit (loss)	106,119			275,207			437,978			(22,431		)	796,873
Total operating expenses	(79,960		)	(89,935		)	(296,408		)	—			(466,303		)
Income (loss) from operations	26,159			185,272			141,570			(22,431		)	330,570
Interest (expense) income, net	(52,565		)	5,554			(4,014		)	—			(51,025		)
Other income (expense), net	3,127			(2,233		)	(3,060		)	—			(2,166		)
Equity earnings (loss)	246,103			69,954			—			(316,057		)	—
Pretax income (loss)	222,824			258,547			134,496			(338,488		)	277,379
Income tax expense	(9,511		)	(22		)	(55,243		)	—			(64,776		)
Net income (loss)	213,313			258,525			79,253			(338,488		)	212,603
Less: Net income attributable to noncontrolling interest	—			311			399			—			710
Net income (loss) attributable to Wabtec shareholders	$	213,313		$	258,836		$	79,652		$	(338,488	)	$	213,313

Comprehensive income (loss) attributable to Wabtec shareholders	$	214,482		$	258,838		$	366,156		$	(338,488	)	$	500,988

Income Statement for the Nine Months Ended September 30, 2016:



In thousands	Parent			Guarantors			Non-Guarantors			Elimination			Consolidated
Net Sales	$	494,350		$	865,850		$	924,559		$	(113,553	)	$	2,171,206
Cost of sales	(356,575		)	(561,361		)	(641,550		)	93,330			(1,466,156		)
Gross profit (loss)	137,775			304,489			283,009			(20,223		)	705,050
Total operating expenses	(88,916		)	(91,967		)	(128,606		)	—			(309,489		)
(Loss) income from operations	48,859			212,522			154,403			(20,223		)	395,561
Interest (expense) income, net	(21,608		)	5,049			662			—			(15,897		)
Other income (expense), net	17,640			(3,956		)	(13,571		)	—			113
Equity earnings (loss)	308,681			111,917			—			(420,598		)	—
Pretax income (loss)	353,572			325,532			141,494			(440,821		)	379,777
Income tax expense	(86,495		)	(380		)	(25,826		)	—			(112,701		)
Net income (loss)	267,077			325,152			115,668			(440,821		)	267,076
Less: Net income attributable to noncontrolling interest	—			—			—			—			—
Net income attributable to Wabtec shareholders	$	267,077		$	325,152		$	115,668		$	(440,821	)	$	267,076

Comprehensive income (loss) attributable to Wabtec shareholders	$	266,355		$	325,152		$	107,054		$	(440,821	)	$	257,740

Condensed Statement of Cash Flows for the Nine Months Ended September 30, 2017:



In thousands	Parent			Guarantors			Non-Guarantors			Elimination			Consolidated
Net cash (used for) provided by operating activities	$	(38,954	)	$	115,816		$	(27,921	)	$	(22,430	)	$	26,511
Net cash used for investing activities	(12,591		)	(110,741		)	(26,492		)	—			(149,824		)
Net cash provided by (used for) financing activities	52,072			(8,489		)	(136,062		)	22,430			(70,049		)
Effect of changes in currency exchange rates	—			—			22,958			—			22,958
Increase (decrease) in cash	527			(3,414		)	(167,517		)	—			(170,404		)
Cash, beginning of period	2,522			9,496			386,466			—			398,484
Cash, end of period	$	3,049		$	6,082		$	218,949		$	—		$	228,080

Condensed Statement of Cash Flows for the Nine Months Ended September 30, 2016:



In thousands	Parent			Guarantors			Non-Guarantors			Elimination			Consolidated
Net cash (used for) provided by operating activities	$	(53,967	)	$	220,963		$	100,120		$	(20,223	)	$	246,893
Net cash used for investing activities	(5,067		)	(26,693		)	(84,131		)	—			(115,891		)
Net cash provided by (used for) financing activities	70,272			(193,669		)	(9,162		)	20,223			(112,336		)
Effect of changes in currency exchange rates	—			—			5,525			—			5,525
Increase (decrease) in cash	11,238			601			12,352			—			24,191
Cash, beginning of period	—			13,157			213,034			—			226,191
Cash, end of period	$	11,238		$	13,758		$	225,386		$	—		$	250,382