Supplemental Guarantor Financial Information

6 Months Ended

Jun. 30, 2011

Supplemental Guarantor Financial Information

Supplemental Guarantor Financial Information

NOTE L— Supplemental Guarantor Financial Information

The Company's Subordinated Notes issued in October 2005 are guaranteed on a full, unconditional and joint and several basis by the following subsidiaries, all of which are 100% owned: Chart Inc., CAIRE Inc., Chart Energy and Chemicals, Inc., Chart Cooler Service Company, Inc., Chart International Holdings, Inc., Chart Asia, Inc., Chart International, Inc. and Chart SeQual Technologies Inc. The following subsidiaries are not guarantors of the notes:

Non-Guarantor Subsidiaries	Jurisdiction
Abahsain Specialized Industrial Co. Ltd. (34% owned)	Saudi Arabia
Chart Asia Investment Company Ltd.	Hong Kong
Chart Australia Pty. Ltd.	Australia
Chart BioMedical Distribution LLC	Delaware
Chart BioMedical GmbH	Germany
Chart Biomedical Limited	United Kingdom
Chart Cryogenic Distribution Equipment (Changzhou) Co., Ltd. (50% owned)	China
Chart Cryogenic Engineering Systems (Changzhou) Co., Ltd.	China
Chart Cryogenic Equipment (Changzhou) Co., Ltd.	China
Chart Ferox, a.s.	Czech Republic
Chart Ferox GmbH	Germany
Chart France S.A.S.	France
Chart Industries Luxembourg S.à r.l	Luxembourg
Chart Italy S.r.l.	Italy
Chart Japan Co., Ltd.	Japan
Chengdu Golden Phoenix Liquid Nitrogen Container Company, Ltd.	China
Flow Instruments & Engineering GmbH	Germany
GTC of Clarksville, LLC	Delaware
Lox Taiwan (11.25% owned)	Taiwan

The following supplemental condensed consolidating and combining financial information of the Issuer (Chart Industries, Inc.), Subsidiary Guarantors and Subsidiary Non-Guarantors presents balance sheets as of June 30, 2011 and December 31, 2010, statements of operations for the three and six months ended June 30, 2011 and 2010, and statements of cash flows for the six months ended June 30, 2011 and 2010.

CONDENSED CONSOLIDATING BALANCE SHEET

As of June 30, 2011

	Issuer			Subsidiary Guarantors		Subsidiary Non- Guarantors		Consolidating Adjustments			Total
ASSETS
Cash and cash equivalents	$	57,181		$	1,531	$	93,663	$	—		$	152,375
Accounts receivable, net		—			82,053		39,677		—			121,730
Inventory, net		—			60,945		61,743		550			123,238
Other current assets		11,631			33,935		11,640		(125	)		57,081
Total current assets		68,812			178,464		206,723		425			454,424
Property, plant and equipment, net		—			71,226		52,069		—			123,295
Goodwill		—			205,236		74,494		—			279,730
Intangible assets, net		—			131,398		7,071		—			138,469
Investments in affiliates		337,629			201,070		—		(537,887	)		812
Intercompany receivables		372,738			—		—		(372,738	)		—
Other assets		5,737			19,560		24,474		(37,939	)		11,832
Total assets	$	784,916		$	806,954	$	364,831	$	(948,139	)	$	1,008,562
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accruals	$	(8,918	)	$	149,193	$	58,446	$	(7,337	)	$	191,384
Total current liabilities		(8,918	)		149,193		58,446		(7,337	)		191,384
Long-term debt		215,175			—		29,863		(29,863	)		215,175
Intercompany payables		—			304,488		67,752		(372,240	)		—
Other long-term liabilities		37,742			15,644		7,700		—			61,086
Total liabilities		243,999			469,325		163,761		(409,440	)		467,645
Common stock		294			—		—		—			294
Other stockholders' equity		540,623			337,629		201,070		(538,699	)		540,623
Total stockholders' equity		540,917			337,629		201,070		(538,699	)		540,917
Total liabilities and stockholders' equity	$	784,916		$	806,954	$	364,831	$	(948,139	)	$	1,008,562

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2010

	Issuer		Subsidiary Guarantors		Subsidiary Non- Guarantors		Consolidating Adjustments			Total
ASSETS
Cash and cash equivalents	$	69,617	$	2,828	$	92,667	$	—		$	165,112
Accounts receivable, net		—		53,735		34,396		—			88,131
Inventory, net		—		56,648		48,455		(668	)		104,435
Other current assets		11,206		31,457		8,015		(1,875	)		48,803
Total current assets		80,823		144,668		183,533		(2,543	)		406,481
Property, plant and equipment, net		—		69,134		47,024		—			116,158
Goodwill		—		202,792		73,121		—			275,913
Intangible assets, net		—		136,925		7,361		—			144,286
Investments in affiliates		313,498		130,997		—		(443,663	)		832
Intercompany receivables		358,225		—		—		(358,225	)		—
Other assets		6,040		19,826		7,482		(21,133	)		12,215
Total assets	$	758,586	$	704,342	$	318,521	$	(825,564	)	$	955,885
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accruals	$	2,583	$	130,351	$	41,999	$	(2,704	)	$	172,229
Total current liabilities		2,583		130,351		41,999		(2,704	)		172,229
Long-term debt		218,425		—		20,729		(20,729	)		218,425
Intercompany payables		—		240,622		117,015		(357,637	)		—
Other long-term liabilities		36,204		19,872		7,781		—			63,857
Total liabilities		257,212		390,845		187,524		(381,070	)		454,511
Common stock		288		—		—		—			288
Other stockholders' equity		501,086		313,498		130,997		(444,495	)		501,086
Total stockholders' equity		501,374		313,498		130,997		(444,495	)		501,374
Total liabilities and stockholders' equity	$	758,586	$	704,343	$	318,521	$	(825,565	)	$	955,885

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Three Months Ended June 30, 2011

	Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors		Consolidating Adjustments			Total
Net sales	$	—		$	132,816		$	70,189	$	(2,307	)	$	200,698
Cost of sales		—			84,531			56,526		(2,689	)		138,368
Gross profit		—			48,285			13,663		382			62,330
Selling, general and administrative expenses		102			33,851			6,888		—			40,841
Operating (loss) income		(102	)		14,434			6,775		382			21,489
Interest expense, net		4,058			(996	)		1,001		—			4,063
Other expense (income), net		324			330			286		—			940
Noncontrolling interest, net of tax		—			—			429		—			429
Income (loss) before income taxes and equity in		—			—			—		—			—
net (income) loss of subsidiaries		(4,484	)		15,100			5,059		382			16,057
Income tax (benefit) provision		(1,593	)		6,521			538		—			5,466
Equity in net (income) loss of subsidiaries		(13,482	)		(4,905	)		—		18,385			—
Net income (loss) attributable to Chart Industries, Inc.	$	10,591		$	13,482		$	4,521	$	(18,003	)	$	10,591

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Three Months Ended June 30, 2010

	Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Total
Net sales	$	—		$	85,970		$	55,289		$	(2,115	)	$	139,144
Cost of sales		—			56,055			47,407			(1,893	)		101,569
Gross profit		—			29,915			7,882			(222	)		37,575
Selling, general and administrative expenses		168			23,537			5,307			—			29,012
Operating (loss) income		(168	)		6,378			2,575			(222	)		8,563
Interest expense, net		4,195			—			(14	)		—			4,181
Other expense (income), net		1,962			449			(1,307	)		—			1,104
Noncontrolling interest, net of tax		—			—			59			—			59
Income (loss) before income taxes and equity in net (income) loss of subsidiaries		(6,325	)		5,929			3,837			(222	)		3,219
Income tax (benefit) provision		(1,529	)		2,098			251			—			820
Equity in net (income) loss of subsidiaries		(7,195	)		(3,364	)		—			10,559			—
Net income (loss) attributable to Chart Industries, Inc.	$	2,399		$	7,195		$	3,586		$	(10,781	)	$	2,399

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 2011

	Issuer			Subsidiary Guarantors			Subsidiary Non-Guarantors			Consolidating Adjustments			Total
Net sales	$	—		$	247,519		$	121,196		$	(5,076	)	$	363,639
Cost of sales		—			153,289			100,895			(5,361	)		248,823
Gross profit		—			94,230			20,301			285			114,816
Selling, general and administrative expenses		216			65,929			12,875			—			79,020
Operating (loss) income		(216	)		28,301			7,426			285			35,796
Interest expense, net		8,144			(1,062	)		915			—			7,997
Other expense (income), net		649			133			(276	)		—			506
Noncontrolling interest, net of tax		—			—			302			—			302
Income (loss) before income taxes and equity in net (income) loss of subsidiaries		(9,009	)		29,230			6,485			285			26,991
Income tax (benefit) provision		(3,018	)		10,826			1,062			—			8,870
Equity in net (income) loss of subsidiaries		(24,112	)		(5,708	)		—			29,820			—
Net income (loss) attributable to Chart Industries, Inc.	$	18,121		$	24,112		$	5,423		$	(29,535	)	$	18,121

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 2010

	Issuer			Subsidiary Guarantors			Subsidiary Non-Guarantors			Consolidating Adjustments			Total
Net sales	$	—		$	161,370		$	99,546		$	(3,504	)	$	257,412
Cost of sales		—			106,196			82,667			(3,302	)		185,561
Gross profit		—			55,174			16,879			(202	)		71,851
Selling, general and administrative expenses		281			46,191			9,213			—			55,685
Operating (loss) income		(281	)		8,983			7,666			(202	)		16,166
Interest expense, net		8,301			(9	)		(51	)		—			8,241
Other expense (income), net		2,366			416			(111	)		—			2,671
Noncontrolling interest, net of tax		—			—			94			—			94
Income (loss) before income taxes and equity in net (income) loss of subsidiaries		(10,948	)		8,576			7,734			(202	)		5,160
Income tax (benefit) provision		(2,728	)		2,971			1,134			—			1,377
Equity in net (income) loss of subsidiaries		(12,003	)		(6,398	)		—			18,401			—
Net income (loss) attributable to Chart Industries, Inc.	$	3,783		$	12,003		$	6,600		$	(18,603	)	$	3,783

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended June 30, 2011

	Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Total
Cash flows from operating activities:
Net cash (used in) provided by operating activities	$	(15,730	)	$	13,162		$	(9,139	)	$	(3,072	)	$	(14,779	)
Cash flows from investing activities:
Capital expenditures		—			(7,712	)		(2,721	)		—			(10,433	)
Acquisition of businesses, net of cash acquired		—			(1,610	)		—			—			(1,610	)
Other investing activities		—			388			—			—			388
Net cash used in investing activities		—			(8,934	)		(2,721	)		—			(11,655	)
Cash flows from financing activities:
Net debt activity		(3,250	)		—			—			—			(3,250	)
Payment of deferred financing costs		(347	)		—			—			—			(347	)
Other financing activities		10,779			—			—			—			10,779
Intercompany account changes		(3,888	)		(5,525	)		6,341			3,072			—
Net cash provided by (used in) financing activities		3,294			(5,525	)		6,341			3,072			7,182
Net decrease in cash and cash equivalents		(12,436	)		(1,297	)		(5,519	)		—			(19,252	)
Effect of exchange rate changes on cash		—			—			6,515			—			6,515
Cash and cash equivalents, beginning of period		69,617			2,828			92,667			—			165,112
Cash and cash equivalents, end of period	$	57,181		$	1,531		$	93,663		$	—		$	152,375

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended June 30, 2010

	Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Consolidating Adjustments			Total
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	11,742		$	4,577		$	(3,093	)	$	1,454		$	14,680
Cash flows from investing activities:
Capital expenditures		—			(4,974	)		(2,925	)		—			(7,899	)
Acquisition of businesses, net of cash acquired		—			—			(5,112	)		—			(5,112	)
Net cash used in investing activities		—			(4,974	)		(8,037	)		—			(13,011	)
Cash flows from financing activities:
Net debt activity		(15,000	)		(6,910	)		6,910			—			(15,000	)
Payment of deferred financing costs		(2,515	)		—			—			—			(2,515	)
Other financing activities		(19	)		—			—			—			(19	)
Intercompany account changes		(20,530	)		5,421			16,563			(1,454	)		—
Net cash (used in) provided by financing activities		(38,064	)		(1,489	)		23,473			(1,454	)		(17,534	)
Net (decrease) increase in cash and cash equivalents		(26,322	)		(1,886	)		12,343			—			(15,865	)
Effect of exchange rate changes on cash		—			—			(6,613	)		—			(6,613	)
Cash and cash equivalents, beginning of period		149,596			2,103			59,469			—			211,168
Cash and cash equivalents, end of period	$	123,274		$	217		$	65,199		$	—		$	188,690