The senior secured notes are guaranteed by the following wholly-owned subsidiaries of the Company: Titan Tire Corporation, Titan Tire Corporation of Bryan, Titan Tire Corporation of Freeport, and Titan Wheel Corporation of Illinois. The note guarantees are full and unconditional, joint and several obligations of the guarantors. The guarantees of the guarantor subsidiaries are subject to release in limited circumstances only upon the occurrence of certain customary conditions. See the indenture governing the senior secured notes incorporated by reference to the Company's most recent Form 10-K for additional information. The following condensed consolidating financial statements are presented using the equity method of accounting. Certain sales and marketing expenses recorded by non-guarantor subsidiaries have not been allocated to the guarantor subsidiaries.



(Amounts in thousands)	Condensed Consolidating Statements of Operations For the Three Months Ended June 30, 2018
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	166,757		$	262,147		$	—		$	428,904
Cost of sales	138			140,208			230,246			—			370,592
Gross (loss) profit	(138		)	26,549			31,901			—			58,312
Selling, general and administrative expenses	1,678			16,985			18,036			—			36,699
Research and development expenses	253			983			1,518			—			2,754
Royalty expense	628			940			1,066			—			2,634
(Loss) income from operations	(2,697		)	7,641			11,281			—			16,225
Interest expense	(6,826		)	—			(846		)	—			(7,672		)
Intercompany interest income (expense)	628			909			(1,537		)	—			—
Foreign exchange loss	—			(662		)	(2,948		)	—			(3,610		)
Other income (expense)	959			(147		)	1,665			—			2,477
(Loss) income before income taxes	(7,936		)	7,741			7,615			—			7,420
(Benefit) provision for income taxes	(2,390		)	3,044			1,029			—			1,683
Equity in earnings of subsidiaries	11,283			—			209			(11,492		)	—
Net income (loss)	5,737			4,697			6,795			(11,492		)	5,737
Net income attributable to noncontrolling interests	—			—			40			—			40
Net income (loss) attributable to Titan	$	5,737		$	4,697		$	6,755		$	(11,492	)	$	5,697



(Amounts in thousands)	Condensed Consolidating Statements of Operations For the Three Months Ended June 30, 2017
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net sales	$	—		$	147,244		$	217,155		$	—	$	364,399
Cost of sales	87			129,743			190,549			—		320,379
Gross (loss) profit	(87		)	17,501			26,606			—		44,020
Selling, general and administrative expenses	3,066			14,043			17,354			—		34,463
Research and development expenses	—			950			1,658			—		2,608
Royalty expense	250			1,410			873			—		2,533
(Loss) income from operations	(3,403		)	1,098			6,721			—		4,416
Interest expense	(7,234		)	—			(86		)	—		(7,320		)
Intercompany interest income (expense)	588			1,947			(2,535		)	—		—
Foreign exchange loss	—			(41		)	(5,216		)	—		(5,257		)
Other income (loss)	931			(317		)	1,136			—		1,750
(Loss) income before income taxes	(9,118		)	2,687			20			—		(6,411		)
(Benefit) provision for income taxes	(3,185		)	1,321			1,990			—		126
Equity in earnings of subsidiaries	(603		)	—			(3,686		)	4,289		—
Net (loss) income	(6,536		)	1,366			(5,656		)	4,289		(6,537		)
Net loss attributable to noncontrolling interests	—			—			(244		)	—		(244		)
Net (loss) income attributable to Titan	$	(6,536	)	$	1,366		$	(5,412	)	$	4,289	$	(6,293	)



(Amounts in thousands)	Condensed Consolidating Statements of Operations For the Six Months Ended June 30, 2018
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	337,517		$	516,769		$	—		$	854,286
Cost of sales	246			281,738			454,429			—			736,413
Gross (loss) profit	(246		)	55,779			62,340			—			117,873
Selling, general and administrative expenses	2,873			32,260			37,487			—			72,620
Research and development expenses	493			1,969			3,169			—			5,631
Royalty expense	881			2,453			1,963			—			5,297
(Loss) income from operations	(4,493		)	19,097			19,721			—			34,325
Interest expense	(13,639		)	—			(1,551		)	—			(15,190		)
Intercompany interest income (expense)	1,251			1,922			(3,173		)	—			—
Foreign exchange loss	—			(670		)	(7,372		)	—			(8,042		)
Other income (expense)	6,628			(313		)	3,912			—			10,227
(Loss) income before income taxes	(10,253		)	20,036			11,537			—			21,320
(Benefit) provision for income taxes	(12,456		)	7,304			6,049			—			897
Equity in earnings of subsidiaries	18,220			—			4,546			(22,766		)	—
Net income (loss)	20,423			12,732			10,034			(22,766		)	20,423
Net loss attributable to noncontrolling interests	—			—			(1,639		)	—			(1,639		)
Net income (loss) attributable to Titan	$	20,423		$	12,732		$	11,673		$	(22,766	)	$	22,062



(Amounts in thousands)	Condensed Consolidating Statements of Operations For the Six Months Ended June 30, 2017
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net sales	$	—		$	291,080		$	430,820		$	—	$	721,900
Cost of sales	156			256,163			381,360			—		637,679
Gross (loss) profit	(156		)	34,917			49,460			—		84,221
Selling, general and administrative expenses	7,938			31,313			36,550			—		75,801
Research and development expenses	—			1,853			3,598			—		5,451
Royalty expense	667			2,704			1,771			—		5,142
(Loss) income from operations	(8,761		)	(953		)	7,541			—		(2,173		)
Interest expense	(14,679		)	—			(362		)	—		(15,041		)
Intercompany interest income (expense)	1,169			1,946			(3,115		)	—		—
Foreign exchange loss	—			(41		)	(726		)	—		(767		)
Other income (expense)	2,212			(753		)	2,968			—		4,427
(Loss) income before income taxes	(20,059		)	199			6,306			—		(13,554		)
(Benefit) provision for income taxes	(1,510		)	1,495			3,583			—		3,568
Equity in earnings of subsidiaries	4,372			—			(8,409		)	4,037		—
Net (loss) income	(14,177		)	(1,296		)	(5,686		)	4,037		(17,122		)
Net income attributable to noncontrolling interests	—			—			624			—		624
Net (loss) income attributable to Titan	$	(14,177	)	$	(1,296	)	$	(6,310	)	$	4,037	$	(17,746	)



(Amounts in thousands)	Condensed Consolidating Statements of Comprehensive Income (Loss) For the Three Months Ended June 30, 2018
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	5,737		$	4,697	$	6,795		$	(11,492	)	$	5,737
Currency translation adjustment	(38,338		)	—		(38,338		)	38,338			(38,338		)
Pension liability adjustments, net of tax	690			646		44			(690		)	690
Comprehensive (loss) income	(31,911		)	5,343		(31,499		)	26,156			(31,911		)
Net comprehensive loss attributable to redeemable and noncontrolling interests	—			—		(2,185		)	—			(2,185		)
Comprehensive (loss) income attributable to Titan	$	(31,911	)	$	5,343	$	(29,314	)	$	26,156		$	(29,726	)



(Amounts in thousands)	Condensed Consolidating Statements of Comprehensive Income (Loss) For the Three Months Ended June 30, 2017
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net (loss) income	$	(6,536	)	$	1,366	$	(5,656	)	$	4,289		$	(6,537	)
Currency translation adjustment	8,006			—		8,006			(8,006		)	8,006
Pension liability adjustments, net of tax	989			625		364			(989		)	989
Comprehensive income (loss)	2,459			1,991		2,714			(4,706		)	2,458
Net comprehensive loss attributable to redeemable and noncontrolling interests	—			—		(1,562		)	—			(1,562		)
Comprehensive income (loss) attributable to Titan	$	2,459		$	1,991	$	4,276		$	(4,706	)	$	4,020



(Amounts in thousands)	Condensed Consolidating Statements of Comprehensive Income (Loss) For the Six Months Ended June 30, 2018
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	20,423		$	12,732	$	10,034		$	(22,766	)	$	20,423
Currency translation adjustment	(30,276		)	—		(30,276		)	30,276			(30,276		)
Pension liability adjustments, net of tax	1,573			1,292		281			(1,573		)	1,573
Comprehensive (loss) income	(8,280		)	14,024		(19,961		)	5,937			(8,280		)
Net comprehensive loss attributable to redeemable and noncontrolling interests	—			—		(3,225		)	—			(3,225		)
Comprehensive (loss) income attributable to Titan	$	(8,280	)	$	14,024	$	(16,736	)	$	5,937		$	(5,055	)



(Amounts in thousands)	Condensed Consolidating Statements of Comprehensive Income (Loss) For the Six Months Ended June 30, 2017
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net (loss) income	$	(14,177	)	$	(1,296	)	$	(5,686	)	$	4,037		$	(17,122	)
Currency translation adjustment	19,025			—			(19,025		)	19,025			19,025
Pension liability adjustments, net of tax	1,722			1,250			472			(1,722		)	1,722
Comprehensive income (loss)	6,570			(46		)	(24,239		)	21,340			3,625
Net comprehensive income attributable to redeemable and noncontrolling interests	—			—			1,221			—			1,221
Comprehensive income (loss) attributable to Titan	$	6,570		$	(46	)	$	(25,460	)	$	21,340		$	2,404



(Amounts in thousands)	Condensed Consolidating Balance Sheets June 30, 2018
	Titan Intl., Inc. (Parent)		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	34,694	$	5		$	71,792		$	—		$	106,491
Accounts receivable, net	—		79,909			202,491			—			282,400
Inventories	—		112,238			260,494			—			372,732
Prepaid and other current assets	18,042		19,948			36,639			—			74,629
Total current assets	52,736		212,100			571,416			—			836,252
Property, plant and equipment, net	9,510		103,374			280,380			—			393,264
Investment in subsidiaries	764,208		—			78,920			(843,128		)	—
Other assets	6,310		958			73,586			—			80,854
Total assets	$	832,764	$	316,432		$	1,004,302		$	(843,128	)	$	1,310,370
Liabilities and Equity
Short-term debt	$	—	$	—		$	52,358		$	—		$	52,358
Accounts payable	2,212		30,349			193,480			—			226,041
Other current liabilities	30,169		31,717			67,171			—			129,057
Total current liabilities	32,381		62,066			313,009			—			407,456
Long-term debt	394,696		—			14,917			—			409,613
Other long-term liabilities	9,087		14,387			54,323			—			77,797
Intercompany accounts	81,949		(275,567		)	193,618			—			—
Redeemable noncontrolling interest	—		—			117,546			—			117,546
Titan shareholders' equity	314,651		515,546			318,001			(843,128		)	305,070
Noncontrolling interests	—		—			(7,112		)	—			(7,112		)
Total liabilities and equity	$	832,764	$	316,432		$	1,004,302		$	(843,128	)	$	1,310,370



(Amounts in thousands)	Condensed Consolidating Balance Sheets December 31, 2017
	Titan Intl., Inc. (Parent)		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	59,740	$	13		$	83,817		$	—		$	143,570
Accounts receivable, net	—		54,009			172,694			—			226,703
Inventories	—		96,036			243,800			—			339,836
Prepaid and other current assets	17,789		20,917			34,378			—			73,084
Total current assets	77,529		170,975			534,689			—			783,193
Property, plant and equipment, net	2,466		110,470			308,312			—			421,248
Investment in subsidiaries	766,777		—			74,003			(840,780		)	—
Other assets	6,389		967			78,315			—			85,671
Total assets	$	853,161	$	282,412		$	995,319		$	(840,780	)	$	1,290,112
Liabilities and Equity
Short-term debt	$	—	$	—		$	43,651		$	—		$	43,651
Accounts payable	4,258		20,787			170,452			—			195,497
Other current liabilities	38,495		30,170			65,109			—			133,774
Total current liabilities	42,753		50,957			279,212			—			372,922
Long-term debt	394,284		—			12,887			—			407,171
Other long-term liabilities	11,544		16,458			58,740			—			86,742
Intercompany accounts	75,103		(286,525		)	211,422			—			—
Redeemable noncontrolling interest	—		—			113,193			—			113,193
Titan shareholders' equity	329,477		501,522			330,710			(840,780		)	320,929
Noncontrolling interests	—		—			(10,845		)	—			(10,845		)
Total liabilities and equity	$	853,161	$	282,412		$	995,319		$	(840,780	)	$	1,290,112



(Amounts in thousands)	Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2018
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash (used for) provided by operating activities	$	(24,585	)	$	3,265		$	(8,607	)	$	(29,927	)
Cash flows from investing activities:
Capital expenditures	(83		)	(3,274		)	(15,059		)	(18,416		)
Other, net	220			1			663			884
Net cash provided by (used for) investing activities	137			(3,273		)	(14,396		)	(17,532		)
Cash flows from financing activities:
Proceeds from borrowings	—			—			40,078			40,078
Payment on debt	—			—			(24,527		)	(24,527		)
Dividends paid	(598		)	—			—			(598		)
Net cash (used for) provided by financing activities	(598		)	—			15,551			14,953
Effect of exchange rate change on cash	—			—			(4,573		)	(4,573		)
Net decrease in cash and cash equivalents	(25,046		)	(8		)	(12,025		)	(37,079		)
Cash and cash equivalents, beginning of period	59,740			13			83,817			143,570
Cash and cash equivalents, end of period	$	34,694		$	5		$	71,792		$	106,491



(Amounts in thousands)	Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2017
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash (used for) provided by operating activities	$	(43,700	)	$	2,191		$	10,956		$	(30,553	)
Cash flows from investing activities:
Capital expenditures	(716		)	(2,534		)	(11,902		)	(15,152		)
Certificates of deposit	40,000			—			—			40,000
Other, net	—			344			694			1,038
Net cash provided by (used for) investing activities	39,284			(2,190		)	(11,208		)	25,886
Cash flows from financing activities:
Proceeds from borrowings	—			—			27,742			27,742
Payment on debt	(3,393		)	—			(25,684		)	(29,077		)
Dividends paid	(570		)	—			—			(570		)
Net cash (used for) provided by financing activities	(3,963		)	—			2,058			(1,905		)
Effect of exchange rate change on cash	—			—			1,981			1,981
Net (decrease) increase in cash and cash equivalents	(8,379		)	1			3,787			(4,591		)
Cash and cash equivalents, beginning of period	86,190			9			61,628			147,827
Cash and cash equivalents, end of period	$	77,811		$	10		$	65,415		$	143,236