GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION

The obligations of the Company under the 2018 Refinancing Credit Agreement have been guaranteed by certain of the Company’s subsidiaries. Each guarantor is 100% owned by the 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 June 30, 2018:



In thousands	Parent		Guarantors			Non-Guarantors			Elimination			Consolidated
Cash and cash equivalents	$	741	$	573		$	244,260		$	—		$	245,574
Receivables, net	95,354		72,507			1,045,373			—			1,213,234
Inventories	141,125		59,043			663,625			—			863,793
Current assets - other	1,207		651			122,428			—			124,286
Total current assets	238,427		132,774			2,075,686			—			2,446,887
Property, plant and equipment, net	47,713		25,186			482,935			—			555,834
Goodwill	25,275		283,241			2,120,075			—			2,428,591
Investment in subsidiaries	6,639,920		2,662,153			—			(9,302,073		)	—
Other intangibles, net	29,915		79,792			1,064,693			—			1,174,400
Other long-term assets	21,800		(23,892		)	73,986			—			71,894
Total assets	$	7,003,050	$	3,159,254		$	5,817,375		$	(9,302,073	)	$	6,677,606
Current liabilities	$	186,353	$	98,432		$	1,321,683		$	—		$	1,606,468
Inter-company	2,272,527		(1,378,182		)	(894,345		)	—			—
Long-term debt	1,632,729		3			225,074			—			1,857,806
Long-term liabilities - other	54,161		20,832			263,711			—			338,704
Total liabilities	4,145,770		(1,258,915		)	916,123			—			3,802,978
Shareholders' equity	2,857,280		4,418,169			4,883,904			(9,302,073		)	2,857,280
Non-controlling interest	—		—			17,348			—			17,348
Total shareholders' equity	$	2,857,280	$	4,418,169		$	4,901,252		$	(9,302,073	)	$	2,874,628
Total Liabilities and Shareholders' Equity	$	7,003,050	$	3,159,254		$	5,817,375		$	(9,302,073	)	$	6,677,606

Balance Sheet for December 31, 2017:



In thousands	Parent		Guarantors			Non-Guarantors			Elimination			Consolidated
Cash and cash equivalents	$	933	$	625		$	231,843		$	—		$	233,401
Receivables, net	77,046		59,166			1,030,575			—			1,166,787
Inventories	120,937		46,626			575,071			—			742,634
Current assets - other	1,142		563			120,586			—			122,291
Total current assets	200,058		106,980			1,958,075			—			2,265,113
Property, plant and equipment, net	52,532		26,492			494,948			—			573,972
Goodwill	25,274		283,241			2,151,588			—			2,460,103
Investment in subsidiaries	6,517,205		2,450,722			—			(8,967,927		)	—
Other intangibles, net	30,575		81,037			1,092,820			—			1,204,432
Other long-term assets	17,414		(23,892		)	82,838			—			76,360
Total assets	$	6,843,058	$	2,924,580		$	5,780,269		$	(8,967,927	)	$	6,579,980
Current liabilities	$	196,827	$	77,283		$	1,299,220		$	—		$	1,573,330
Inter-company	2,121,546		(1,307,410		)	(814,136		)	—			—
Long-term debt	1,661,771		14			161,518			—			1,823,303
Long-term liabilities - other	54,046		20,594			280,175			—			354,815
Total liabilities	4,034,190		(1,209,519		)	926,777			—			3,751,448
Shareholders' equity	2,808,868		4,134,099			4,833,828			(8,967,927		)	2,808,868
Non-controlling interest	—		—			19,664			—			19,664
Total shareholders' equity	$	2,808,868	$	4,134,099		$	4,853,492		$	(8,967,927	)	$	2,828,532
Total Liabilities and Shareholders' Equity	$	6,843,058	$	2,924,580		$	5,780,269		$	(8,967,927	)	$	6,579,980

Income Statement for the Three Months Ended June 30, 2018:



In thousands	Parent			Guarantors			Non-Guarantors			Elimination			Consolidated
Net Sales	$	168,426		$	137,966		$	873,375		$	(68,087	)	$	1,111,680
Cost of sales	(122,919		)	(88,688		)	(614,861		)	38,755			(787,713		)
Gross profit	45,507			49,278			258,514			(29,332		)	323,967
Total operating expenses	(49,780		)	(12,267		)	(138,397		)	—			(200,444		)
(Loss) income from operations	(4,273		)	37,011			120,117			(29,332		)	123,523
Interest (expense) income, net	(31,734		)	3,137			(3,323		)	—			(31,920		)
Other income (expense), net	483			—			1,688			—			2,171
Equity earnings (loss)	128,744			118,771			—			(247,515		)	—
Pretax income (loss)	93,220			158,919			118,482			(276,847		)	93,774
Income tax expense	(7,213		)	—			(3,290		)	—			(10,503		)
Net income	86,007			158,919			115,192			(276,847		)	83,271
Less: Net loss attributable to noncontrolling interest	—			—			1,145			—			1,145
Net income (loss) attributable to Wabtec shareholders	$	86,007		$	158,919		$	116,337		$	(276,847	)	$	84,416

Comprehensive income (loss) attributable to Wabtec shareholders	$	86,231		$	158,919		$	(74,104	)	$	(276,847	)	$	(105,801	)

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



In thousands	Parent			Guarantors			Non-Guarantors			Elimination			Consolidated
Net Sales	$	137,708		$	93,372		$	728,849		$	(27,676	)	$	932,253
Cost of sales	(100,331		)	(59,637		)	(518,604		)	20,282			(658,290		)
Gross profit	37,377			33,735			210,245			(7,394		)	273,963
Total operating expenses	(33,126		)	(12,741		)	(114,739		)	—			(160,606		)
Income (loss) from operations	4,251			20,994			95,506			(7,394		)	113,357
Interest (expense) income, net	(19,805		)	2,690			(449		)	—			(17,564		)
Other income (expense), net	(8,984		)	—			9,920			—			936
Equity earnings (loss)	96,963			75,715			—			(172,678		)	—
Pretax income (loss)	72,425			99,399			104,977			(180,072		)	96,729
Income tax expense	(401		)	—			(24,168		)	—			(24,569		)
Net income (loss)	72,024			99,399			80,809			(180,072		)	72,160
Less: Net income attributable to noncontrolling interest	—			—			(135		)	—			(135		)
Net income (loss) attributable to Wabtec shareholders	$	72,024		$	99,399		$	80,674		$	(180,072	)	$	72,025

Comprehensive income (loss) attributable to Wabtec shareholders	$	72,921		$	99,399		$	226,877		$	(180,072	)	$	219,125

Income Statement for the Six Months Ended June 30, 2018:



In thousands	Parent			Guarantors			Non-Guarantors			Elimination			Consolidated
Net Sales	$	329,727		$	256,083		$	1,700,594		$	(118,547	)	$	2,167,857
Cost of sales	(241,577		)	(161,678		)	(1,200,588		)	70,834			(1,533,009		)
Gross profit (loss)	88,150			94,405			500,006			(47,713		)	634,848
Total operating expenses	(85,407		)	(25,941		)	(268,698		)	—			(380,046		)
Income (loss) from operations	2,743			68,464			231,308			(47,713		)	254,802
Interest (expense) income, net	(52,128		)	6,079			(6,155		)	—			(52,204		)
Other income (expense), net	9,212			(679		)	(3,776		)	—			4,757
Equity earnings (loss)	235,442			210,877			—			(446,319		)	—
Pretax income (loss)	195,269			284,741			221,377			(494,032		)	207,355
Income tax expense	(20,895		)	—			(15,732		)	—			(36,627		)
Net income (loss)	174,374			284,741			205,645			(494,032		)	170,728
Less: Net income attributable to noncontrolling interest	—			—			2,054			—			2,054
Net income (loss) attributable to Wabtec shareholders	$	174,374		$	284,741		$	207,699		$	(494,032	)	$	172,782

Comprehensive income (loss) attributable to Wabtec shareholders	$	174,881		$	284,741		$	95,983		$	(494,032	)	$	61,573

Income Statement for the Six Months Ended June 30, 2017:



In thousands	Parent			Guarantors			Non-Guarantors			Elimination			Consolidated
Net Sales	$	282,251		$	198,431		$	1,424,975		$	(57,370	)	$	1,848,287
Cost of sales	(199,263		)	(123,901		)	(1,025,282		)	43,829			(1,304,617		)
Gross profit (loss)	82,988			74,530			399,693			(13,541		)	543,670
Total operating expenses	(57,592		)	(25,069		)	(233,140		)	—			(315,801		)
Income (loss) from operations	25,396			49,461			166,553			(13,541		)	227,869
Interest (expense) income, net	(35,488		)	5,230			(7,164		)	—			(37,422		)
Other income (expense), net	5,343			(229		)	633			—			5,747
Equity earnings (loss)	165,229			117,246			—			(282,475		)	—
Pretax income (loss)	160,480			171,708			160,022			(296,016		)	196,194
Income tax expense	(14,567		)	—			(37,463		)	—			(52,030		)
Net income (loss)	145,913			171,708			122,559			(296,016		)	144,164
Less: Net income attributable to noncontrolling interest	—			—			1,750			—			1,750
Net income (loss) attributable to Wabtec shareholders	$	145,913		$	171,708		$	124,309		$	(296,016	)	$	145,914

Comprehensive income (loss) attributable to Wabtec shareholders	$	147,668		$	171,708		$	317,607		$	(296,016	)	$	340,967

Condensed Statement of Cash Flows for the Six Months Ended June 30, 2018:



In thousands	Parent			Guarantors			Non-Guarantors			Elimination			Consolidated
Net cash (used for) provided by operating activities	$	(116,378	)	$	72,206		$	159,789		$	(47,713	)	$	67,904
Net cash used for investing activities	(9,669		)	(249		)	(59,182		)	—			(69,100		)
Net cash provided by (used for) financing activities	125,855			(72,009		)	(78,795		)	47,713			22,764
Effect of changes in currency exchange rates	—			—			(9,395		)	—			(9,395		)
(Decrease) Increase in cash	(192		)	(52		)	12,417			—			12,173
Cash and cash equivalents, beginning of period	933			625			231,843			—			233,401
Cash and cash equivalents, end of period	$	741		$	573		$	244,260		$	—		$	245,574

Condensed Statement of Cash Flows for the Six Months Ended June 30, 2017:



In thousands	Parent			Guarantors			Non-Guarantors			Elimination			Consolidated
Net cash (used for) operating activities	$	(50,070	)	$	65,857		$	(15,949	)	$	(13,541	)	$	(13,703	)
Net cash (used for) provided by investing activities	(8,670		)	(1,705		)	(874,254		)	—			(884,629		)
Net cash provided by (used for) financing activities	58,408			(62,148		)	31,789			13,541			41,590
Effect of changes in currency exchange rates	—			—			42,032			—			42,032
(Decrease) Increase in cash	(332		)	2,004			(816,382		)	—			(814,710		)
Cash, cash equivalents and restricted cash, beginning of period	2,522			1,226			1,139,484			—			1,143,232
Cash and cash equivalents, end of period	$	2,190		$	3,230		$	323,102		$	—		$	328,522