Guarantor Subsidiaries Financial Information (Tables)

3 Months Ended

Mar. 31, 2019

Balance Sheet for March 31, 2019:



In thousands	Parent		Guarantors			Non-Guarantors			Elimination			Consolidated
Cash and cash equivalents	$	5,288	$	(38	)	$	507,620		$	—		$	512,870
Receivables, net	137,358		69,745			1,519,721			—			1,726,824
Inventories	139,550		62,766			1,744,904			—			1,947,220
Current assets - other	11,335		920			181,968			—			194,223
Total current assets	293,531		133,393			3,954,213			—			4,381,137
Property, plant and equipment, net	54,641		25,550			1,554,775			—			1,634,966
Goodwill	503,700		283,241			7,355,532			—			8,142,473
Investment in subsidiaries	16,575,061		5,258,593			—			(21,833,654		)	—
Other intangibles, net	28,924		77,924			4,257,173			—			4,364,021
Other long-term assets	26,262		6,772			522,274			—			555,308
Total assets	$	17,482,119	$	5,785,473		$	17,643,967		$	(21,833,654	)	$	19,077,905
Current liabilities	$	467,702	$	84,137		$	2,702,596		$	—		$	3,254,435
Inter-company	2,557,628		(1,458,674		)	(1,098,954		)	—			—
Long-term debt	4,387,180		—			254,106			—			4,641,286
Long-term liabilities - other	381,763		54,560			965,415			—			1,401,738
Total liabilities	7,794,273		(1,319,977		)	2,823,163			—			9,297,459
Shareholders' equity	9,672,846		7,105,450			14,743,204			(21,833,654		)	9,687,846
Non-controlling interest	15,000		—			77,600			—			92,600
Total shareholders' equity	$	9,687,846	$	7,105,450		$	14,820,804		$	(21,833,654	)	$	9,780,446
Total Liabilities and Shareholders' Equity	$	17,482,119	$	5,785,473		$	17,643,967		$	(21,833,654	)	$	19,077,905

Balance Sheet for December 31, 2018:



In thousands	Parent		Guarantors			Non-Guarantors			Elimination			Consolidated
Cash and cash equivalents	$	1,782,682	$	(119	)	$	559,791		$	—		$	2,342,354
Receivables, net	106,815		61,513			978,450			—			1,146,778
Inventories	149,622		69,116			626,148			—			844,886
Current assets - other	11,884		690			103,075			—			115,649
Total current assets	2,051,003		131,200			2,267,464			—			4,449,667
Property, plant and equipment, net	51,551		24,755			487,431			—			563,737
Goodwill	25,275		283,241			2,088,028			—			2,396,544
Investment in subsidiaries	6,707,979		4,022,107			—			(10,730,086		)	—
Other intangibles, net	29,254		78,547			1,022,079			—			1,129,880
Other long-term assets	8,775		149			100,482			—			109,406
Total assets	$	8,873,837	$	4,539,999		$	5,965,484		$	(10,730,086	)	$	8,649,234
Current liabilities	$	264,630	$	91,004		$	1,291,056		$	—		$	1,646,690
Inter-company	1,947,504		(1,436,222		)	(511,282		)	—			—
Long-term debt	3,779,627		—			13,147			—			3,792,774
Long-term liabilities - other	16,945		48,714			275,036			—			340,695
Total liabilities	6,008,706		(1,296,504		)	1,067,957			—			5,780,159
Shareholders' equity	2,865,131		5,836,503			4,893,583			(10,730,086		)	2,865,131
Non-controlling interest	—		—			3,944			—			3,944
Total shareholders' equity	$	2,865,131	$	5,836,503		$	4,897,527		$	(10,730,086	)	$	2,869,075
Total Liabilities and Shareholders' Equity	$	8,873,837	$	4,539,999		$	5,965,484		$	(10,730,086	)	$	8,649,234

Income Statement for the Three Months Ended March 31, 2019:



In thousands	Parent			Guarantors			Non-Guarantors			Elimination			Consolidated
Net Sales	$	193,066		$	128,803		$	1,327,249		$	(55,501	)	$	1,593,617
Cost of sales	(157,650		)	(82,015		)	(998,019		)	33,084			(1,204,600		)
Gross profit	35,416			46,788			329,230			(22,417		)	389,017
Total operating expenses	(97,540		)	(15,321		)	(208,849		)	—			(321,710		)
Income from operations	(62,124		)	31,467			120,381			(22,417		)	67,307
Interest (expense) income, net	(41,646		)	3,478			(6,401		)	—			(44,569		)
Other income (expense), net	20,333			(2,485		)	(26,076		)	—			(8,228		)
Equity earnings	91,482			79,759			—			(171,241		)	—
Pretax income	8,045			112,219			87,904			(193,658		)	14,510
Income tax (expense) benefit	(12,517		)	—			(6,006		)	—			(18,523		)
Net income	(4,472		)	112,219			81,898			(193,658		)	(4,013		)
Less: Net income attributable to noncontrolling interest	—			—			(459		)	—			(459		)
Net income attributable to Wabtec shareholders	$	(4,472	)	$	112,219		$	81,439		$	(193,658	)	$	(4,472	)

Comprehensive income attributable to Wabtec shareholders	$	(4,472	)	$	112,219		$	29,022		$	(193,658	)	$	(56,889	)

Income Statement for the Three Months Ended March 31, 2018:



In thousands	Parent			Guarantors			Non-Guarantors			Elimination			Consolidated
Net Sales	$	161,301		$	301,706		$	641,663		$	(48,493	)	$	1,056,177
Cost of sales	(118,658		)	(179,090		)	(488,233		)	40,685			(745,296		)
Gross profit	42,643			122,616			153,430			(7,808		)	310,881
Total operating expenses	(35,627		)	(37,327		)	(106,648		)	—			(179,602		)
Income from operations	7,016			85,289			46,782			(7,808		)	131,279
Interest (expense) income, net	(20,394		)	2,301			(2,191		)	—			(20,284		)
Other income (expense), net	8,729			(2,469		)	(3,674		)	—			2,586
Equity earnings	106,698			28,720			—			(135,418		)	—
Pretax income	102,049			113,841			40,917			(143,226		)	113,581
Income tax expense	(13,682		)	1,194			(13,636		)	—			(26,124		)
Net income	88,367			115,035			27,281			(143,226		)	87,457
Less: Net income attributable to noncontrolling interest	—			215			694			—			909
Net income attributable to Wabtec shareholders	$	88,367		$	115,250		$	27,975		$	(143,226	)	$	88,366

Comprehensive income attributable to Wabtec shareholders	$	88,649		$	115,250		$	106,701		$	(143,226	)	$	167,374

Condensed Statement of Cash Flows for the Three Months Ended March 31, 2019:



In thousands	Parent			Guarantors			Non-Guarantors			Elimination			Consolidated
Net cash (used for) provided by operating activities	$	(118,411	)	$	24,140		$	148,026		$	(22,417	)	$	31,338
Net cash provided by (used for) investing activities	6,898,021			(1,601		)	(9,636,068		)	—			(2,739,648		)
Net cash (used for) provided by financing activities	(8,557,004		)	(22,458		)	9,440,035			22,417			882,990
Effect of changes in currency exchange rates	—			—			(4,164		)	—			(4,164		)
(Decrease) increase in cash	(1,777,394		)	81			(52,171		)	—			(1,829,484		)
Cash, cash equivalents, and restricted cash beginning of period	1,782,682			(119		)	559,791			—			2,342,354
Cash and cash equivalents, end of period	$	5,288		$	(38	)	$	507,620		$	—		$	512,870

Condensed Statement of Cash Flows for the Three Months Ended March 31, 2018:



In thousands	Parent			Guarantors			Non-Guarantors			Elimination			Consolidated
Net cash (used for) provided by operating activities	$	(9,439	)	$	50,789		$	(9,342	)	$	(7,808	)	$	24,200
Net cash (used for) provided by investing activities	(1,759		)	(3,693		)	(38,413		)	—			(43,865		)
Net cash provided by (used for) financing activities	22,973			(49,808		)	47,695			7,808			28,668
Effect of changes in currency exchange rates	—			—			7,482			—			7,482
Increase (decrease) in cash	11,775			(2,712		)	7,422			—			16,485
Cash, cash equivalents and restricted cash, beginning of period	933			4,802			227,666			—			233,401
Cash and cash equivalents, end of period	$	12,708		$	2,090		$	235,088		$	—		$	249,886