Separate Financial Information of Subsidiary Guarantor of Indebtedness

Under the terms of the Company’s Senior Notes and the Revolver (collectively, the “Domestic Indebtedness”), Briggs & Stratton Power Products Group, LLC, a 100% owned subsidiary of the Company, is the joint and several guarantor of the Domestic Indebtedness (the “Guarantor”). The guarantees are full and unconditional guarantees, except for certain customary limitations. Additionally, if at any time a domestic subsidiary of the Company constitutes a significant domestic subsidiary, then such domestic subsidiary will also become a guarantor of the Domestic Indebtedness. Currently, all of the Domestic Indebtedness is unsecured. If the Company were to fail to make a payment of interest or principal on its due date, the Guarantor is obligated to pay the outstanding Domestic Indebtedness. The Company had the following outstanding amounts related to the guaranteed debt (in thousands):



	March 30, 2014 Carrying Amount		Maximum Guarantee
Senior Notes	$	225,000	$	225,000
Multicurrency Credit Agreement	$	—	$	500,000

The following condensed supplemental consolidating financial information reflects the summarized financial information of Briggs & Stratton, its Guarantors and Non-Guarantor Subsidiaries (in thousands):

CONSOLIDATING BALANCE SHEET

As of March 30, 2014

(Unaudited)



	Briggs & Stratton Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
CURRENT ASSETS:
Cash and Cash Equivalents	$	57,558	$	1,969	$	47,711	$	—		$	107,238
Accounts Receivable, Net	184,125		113,595		41,114		—			338,834
Intercompany Accounts Receivable	17,870		2,772		31,439		(52,081		)	—
Inventories, Net	170,082		160,119		65,103		—			395,304
Deferred Income Tax Asset	30,179		14,983		1,535		—			46,697
Prepaid Expenses and Other Current Assets	11,711		2,593		10,275		—			24,579
Total Current Assets	$	471,525	$	296,031	$	197,177	$	(52,081	)	$	912,652
OTHER ASSETS:
Goodwill	$	128,300	$	—	$	18,755	$	—		$	147,055
Investments	25,382		—		—		—			25,382
Investments in Subsidiaries	480,241		—		—		(480,241		)	—
Intercompany Note Receivable	56,058		81,167		18,927		(156,152		)	—
Debt Issuance Costs	4,916		—		—		—			4,916
Other Intangible Assets, Net	—		61,710		24,018		—			85,728
Long-Term Deferred Income Tax Asset	48,407		—		313		(21,288		)	27,432
Other Long-Term Assets, Net	10,152		2,629		1,360		—			14,141
Total Other Assets	$	753,456	$	145,506	$	63,373	$	(657,681	)	$	304,654
PLANT AND EQUIPMENT, NET	220,902		41,005		16,181		—			278,088
TOTAL ASSETS	$	1,445,883	$	482,542	$	276,731	$	(709,762	)	$	1,495,394

CURRENT LIABILITIES:
Accounts Payable	$	110,243	$	54,006	$	22,403	$	—		$	186,652
Intercompany Accounts Payable	19,835		15,949		16,297		(52,081		)	—
Accrued Liabilities	102,751		35,110		15,423		—			153,284
Total Current Liabilities	$	232,829	$	105,065	$	54,123	$	(52,081	)	$	339,936
OTHER LIABILITIES:
Accrued Pension Cost	$	137,829	$	413	$	—	$	—		$	138,242
Accrued Employee Benefits	23,616		—		—		—			23,616
Accrued Postretirement Health Care Obligation	49,657		14,889		—		—			64,546
Intercompany Note Payable	84,940		—		71,212		(156,152		)	—
Deferred Income Tax Liabilities	—		20,780		508		(21,288		)	—
Other Long-Term Liabilities	26,343		11,064		978		—			38,385
Long-Term Debt	225,000		—		—		—			225,000
Total Other Liabilities	$	547,385	$	47,146	$	72,698	$	(177,440	)	$	489,789
TOTAL SHAREHOLDERS’ INVESTMENT:	665,669		330,331		149,910		(480,241		)	665,669
TOTAL LIABILITIES AND SHAREHOLDERS’ INVESTMENT	$	1,445,883	$	482,542	$	276,731	$	(709,762	)	$	1,495,394

CONSOLIDATING BALANCE SHEET

As of June 30, 2013



	Briggs & Stratton Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
CURRENT ASSETS:
Cash and Cash Equivalents	$	162,628	$	1,275	$	24,542	$	—		$	188,445
Accounts Receivable, Net	80,017		80,531		30,252		—			190,800
Intercompany Accounts Receivable	11,987		5,971		46,366		(64,324		)	—
Inventories, Net	165,600		175,523		66,972		—			408,095
Deferred Income Tax Asset	32,543		13,923		1,068		—			47,534
Prepaid Expenses and Other Current Assets	15,194		1,967		6,946		—			24,107
Total Current Assets	$	467,969	$	279,190	$	176,146	$	(64,324	)	$	858,981
OTHER ASSETS:
Goodwill	$	128,300	$	—	$	19,052	$	—		$	147,352
Investments	19,764		—		—		—			19,764
Investments in Subsidiaries	520,604		—		—		(520,604		)	—
Intercompany Note Receivable	45,747		81,844		14,486		(142,077		)	—
Debt Issuance Costs	4,710		—		—		—			4,710
Other Intangible Assets, Net	—		62,612		25,368		—			87,980
Long-Term Deferred Income Tax Asset	48,694		—		83		(21,233		)	27,544
Other Long-Term Assets, Net	9,810		2,957		1,258		—			14,025
Total Other Assets	$	777,629	$	147,413	$	60,247	$	(683,914	)	$	301,375
PLANT AND EQUIPMENT, NET	224,002		45,475		17,718		—			287,195
TOTAL ASSETS	$	1,469,600	$	472,078	$	254,111	$	(748,238	)	$	1,447,551

CURRENT LIABILITIES:
Accounts Payable	$	91,965	$	37,112	$	14,112	$	—		$	143,189
Intercompany Accounts Payable	38,078		5,197		21,049		(64,324		)	—
Short-Term Debt	—		—		300		—			300
Accrued Liabilities	111,146		7,452		12,668		—			131,266
Total Current Liabilities	$	241,189	$	49,761	$	48,129	$	(64,324	)	$	274,755
OTHER LIABILITIES:
Accrued Pension Cost	$	149,614	$	472	$	45	$	—		$	150,131
Accrued Employee Benefits	23,458		—		—		—			23,458
Accrued Postretirement Health Care Obligation	57,298		15,397		—		—			72,695
Intercompany Note Payable	85,095		—		56,982		(142,077		)	—
Deferred Income Tax Liabilities	—		21,233		—		(21,233		)	—
Other Long-Term Liabilities	20,008		12,541		1,025		—			33,574
Long-Term Debt	225,000		—		—		—			225,000
Total Other Liabilities	$	560,473	$	49,643	$	58,052	$	(163,310	)	$	504,858
TOTAL SHAREHOLDERS’ INVESTMENT:	667,938		372,674		147,930		(520,604		)	667,938
TOTAL LIABILITIES AND SHAREHOLDERS’ INVESTMENT	$	1,469,600	$	472,078	$	254,111	$	(748,238	)	$	1,447,551

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended March 30, 2014

(Unaudited)



	Briggs & Stratton Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Net Sales	$	429,788		$	172,493		$	78,767	$	(52,645	)	$	628,403
Cost of Goods Sold	334,097			158,623			58,852		(52,645		)	498,927
Restructuring Charges	(774		)	—			—		—			(774		)
Gross Profit	96,465			13,870			19,915		—			130,250
Engineering, Selling, General and Administrative Expenses	43,267			20,938			10,658		—			74,863
Equity in Income from Subsidiaries	(3,658		)	—			—		3,658			—
Income (Loss) from Operations	56,856			(7,068		)	9,257		(3,658		)	55,387
Interest Expense	(4,720		)				—		—			(4,720		)
Other Income, Net	2,078			15			202		—			2,295
Income (Loss) before Income Taxes	54,214			(7,053		)	9,459		(3,658		)	52,962
Provision (Credit) for Income Taxes	15,061			(2,598		)	1,346		—			13,809
Net Income (Loss)	$	39,153		$	(4,455	)	$	8,113	$	(3,658	)	$	39,153
Comprehensive Income (Loss)	$	47,127		$	(4,542	)	$	9,276	$	(4,734	)	$	47,127

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended March 31, 2013

(Unaudited)



	Briggs & Stratton Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	429,762		$	199,734		$	77,891		$	(70,128	)	$	637,259
Cost of Goods Sold	335,570			180,847			57,537			(70,128		)	503,826
Restructuring Charges	5,354			997			294			—			6,645
Gross Profit	88,838			17,890			20,060			—			126,788
Engineering, Selling, General and Administrative Expenses	41,603			18,642			10,423			—			70,668
Equity in Income from Subsidiaries	(8,274		)	—			—			8,274			—
Income (Loss) from Operations	55,509			(752		)	9,637			(8,274		)	56,120
Interest Expense	(4,679		)	—			(38		)	—			(4,717		)
Other Income (Expense), Net	2,036			24			(254		)	—			1,806
Income (Loss) before Income Taxes	52,866			(728		)	9,345			(8,274		)	53,209
Provision (Credit) for Income Taxes	14,350			(332		)	675			—			14,693
Net Income (Loss)	$	38,516		$	(396	)	$	8,670		$	(8,274	)	$	38,516
Comprehensive Income (Loss)	$	49,116		$	(272	)	$	8,585		$	(8,313	)	$	49,116

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Nine Months Ended March 30, 2014

(Unaudited)



	Briggs & Stratton Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	855,142		$	425,041		$	229,465		$	(147,349	)	$	1,362,299
Cost of Goods Sold	688,280			388,123			177,094			(147,349		)	1,106,148
Restructuring Charges	2,693			228			1,783			—			4,704
Gross Profit	164,169			36,690			50,588			—			251,447
Engineering, Selling, General and Administrative Expenses	123,019			56,628			35,755			—			215,402
Restructuring Charges	77			—			348			—			425
Equity in Income from Subsidiaries	1,459			—			—			(1,459		)	—
Income (Loss) from Operations	39,614			(19,938		)	14,485			1,459			35,620
Interest Expense	(13,796		)	—			(27		)	—			(13,823		)
Other Income, Net	5,882			199			57			—			6,138
Income (Loss) before Income Taxes	31,700			(19,739		)	14,515			1,459			27,935
Provision (Credit) for Income Taxes	11,194			(7,275		)	3,510			—			7,429
Net Income (Loss)	$	20,506		$	(12,464	)	$	11,005		$	1,459		$	20,506
Comprehensive Income (Loss)	$	35,082		$	(12,747	)	$	11,785		$	962		$	35,082

CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Nine Months Ended March 31, 2013

(Unaudited)



	Briggs & Stratton Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	843,473		$	516,262		$	212,207		$	(186,597	)	$	1,385,345
Cost of Goods Sold	677,715			467,866			163,820			(186,597		)	1,122,804
Restructuring Charges	7,074			7,387			509			—			14,970
Gross Profit	158,684			41,009			47,878			—			247,571
Engineering, Selling, General and Administrative Expenses	122,362			53,265			29,929			—			205,556
Restructuring Charges	3,435			—			—			—			3,435
Equity in Income from Subsidiaries	(8,596		)	—			—			8,596			—
Income (Loss) from Operations	41,483			(12,256		)	17,949			(8,596		)	38,580
Interest Expense	(13,677		)	(3		)	(122		)	—			(13,802		)
Other Income, Net	4,251			178			231			—			4,660
Income (Loss) before Income Taxes	32,057			(12,081		)	18,058			(8,596		)	29,438
Provision (Credit) for Income Taxes	10,703			(4,487		)	1,868			—			8,084
Net Income (Loss)	$	21,354		$	(7,594	)	$	16,190		$	(8,596	)	$	21,354
Comprehensive Income (Loss)	$	64,977		$	(7,972	)	$	20,105		$	(12,133	)	$	64,977

CONSOLIDATING STATEMENT OF CASH FLOWS

For the Nine Months Ended March 30, 2014

(Unaudited)



	Briggs & Stratton Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net Cash Provided by (Used in) Operating Activities	$	(48,051	)	$	1,925		$	32,093		$	—	$	(14,033	)
Cash Flows from Investing Activities:
Additions to Plant and Equipment	(26,474		)	(1,932		)	(1,065		)	—		(29,471		)
Proceeds Received on Disposition of Plant and Equipment	57			33			19			—		109
Cash Investment in Subsidiary	8,107			—			(8,107		)	—		—
Net Cash Used in Investing Activities	(18,310		)	(1,899		)	(9,153		)	—		(29,362		)
Cash Flows from Financing Activities:
Repayments on Short-Term Debt	—			—			(300		)	—		(300		)
Net Borrowings (Repayments) on Loans, Notes Payable and Long-Term Debt	(668		)	668			—			—		—
Debt Issuance Costs	(949		)	—			—			—		(949		)
Treasury Stock Purchases	(30,066		)	—			—			—		(30,066		)
Stock Option Exercise Proceeds and Tax Benefits	4,361			—			—			—		4,361
Cash Dividends Paid	(11,387		)	—			—			—		(11,387		)
Net Cash Provided by (Used in) Financing Activities	(38,709		)	668			(300		)	—		(38,341		)
Effect of Foreign Currency Exchange Rate Changes on Cash and Cash Equivalents	—			—			529			—		529
Net Increase (Decrease) in Cash and Cash Equivalents	(105,070		)	694			23,169			—		(81,207		)
Cash and Cash Equivalents, Beginning	162,628			1,275			24,542			—		188,445
Cash and Cash Equivalents, Ending	$	57,558		$	1,969		$	47,711		$	—	$	107,238

CONSOLIDATING STATEMENT OF CASH FLOWS

For the Nine Months Ended March 31, 2013

(Unaudited)



	Briggs & Stratton Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net Cash Provided by (Used in) Operating Activities	$	(135,858	)	$	17,333		$	44,746		$	—	$	(73,779	)
Cash Flows from Investing Activities:
Additions to Plant and Equipment	(19,924		)	(4,861		)	(1,516		)	—		(26,301		)
Proceeds Received on Disposition of Plant and Equipment	44			5,664			997			—		6,705
Cash Investment in Subsidiary	(18,195		)	—			18,195			—		—
Cash Paid for Acquisition, Net of Cash Acquired	—			—			(59,627		)	—		(59,627		)
Net Cash Provided by (Used in) Investing Activities	(38,075		)	803			(41,951		)	—		(79,223		)
Cash Flows from Financing Activities:
Repayments on Short-Term Debt	—			—			(900		)	—		(900		)
Net Borrowings (Repayments) on Loans, Notes Payable and Long-Term Debt	57,954			(22,604		)	—			—		35,350
Treasury Stock Purchases	(23,057		)	—			—			—		(23,057		)
Stock Option Exercise Proceeds and Tax Benefits	19,613			—			—			—		19,613
Cash Dividends Paid	(11,499		)	—			—			—		(11,499		)
Net Cash Provided by (Used in) Financing Activities	43,011			(22,604		)	(900		)	—		19,507
Effect of Foreign Currency Exchange Rate Changes on Cash and Cash Equivalents	—			—			(12		)	—		(12		)
Net Increase (Decrease) in Cash and Cash Equivalents	(130,922		)	(4,468		)	1,883			—		(133,507		)
Cash and Cash Equivalents, Beginning	133,108			5,375			17,592			—		156,075
Cash and Cash Equivalents, Ending	$	2,186		$	907		$	19,475		$	—	$	22,568