EX-99.1 8 navex991013112.htm ADDITIONAL FINANCIAL INFORMATION (UNAUDITED) NAV EX. 99.1 01.31.12


EXHIBIT 99.1
Additional Financial Information (Unaudited)
The following additional financial information is provided based upon the continuing interest of certain stockholders and creditors to assist them in understanding our core manufacturing business with our financial services operations on an after-tax equity basis. Our manufacturing operations, for this purpose, include our Truck segment, Engine segment, Parts segment, and Corporate items. The manufacturing operations financial information represents non-GAAP financial measures. The reconciling differences between these non-GAAP financial measures and our GAAP condensed consolidated financial statements in Item 1, Financial Statements, are our financial services operations, which are included on an after-tax equity basis. Certain of our subsidiaries in our manufacturing operations have debt outstanding with our financial services operations (“intercompany debt”). In the condensed statements of assets, liabilities, redeemable equity securities, and stockholders' deficit, the intercompany debt is reflected as accounts payable. The change in the intercompany debt is reflected in the net cash provided by operating activities in the condensed statements of cash activities.

Condensed Statements of Revenues and Expenses
Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis)

 
Three Months Ended January 31, 2012
 
 
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
(in millions)
 


 


 


 


Sales of manufactured products
 
$
3,008

 
$

 
$

 
$
3,008

Finance revenues
 

 
68

 
(24
)
 
44

Sales and revenues, net
 
3,008

 
68

 
(24
)
 
3,052

Costs of products sold
 
2,698

 

 

 
2,698

Selling, general and administrative expenses
 
344

 
19

 
(1
)
 
362

Engineering and product development costs
 
137

 

 

 
137

Interest expense
 
37

 
25

 
(1
)
 
61

Other expense (income), net
 
32

 
(2
)
 
(22
)
 
8

Total costs and expenses
 
3,248

 
42

 
(24
)
 
3,266

Equity in loss of non-consolidated affiliates
 
7

 

 

 
7

Income (loss) before income taxes and equity income from financial services operations
 
(247
)
 
26

 

 
(221
)
Equity income (loss) from financial services operations
 
17

 

 
(17
)
 

Income (loss) before income taxes
 
(230
)
 
26

 
(17
)
 
(221
)
Income tax benefit (expense)
 
90

 
(9
)
 

 
81

Net income (loss)
 
(140
)
 
17

 
(17
)
 
(140
)
Less: Income attributable to non-controlling interests
 
13

 

 

 
13

Net income (loss) attributable to Navistar International Corporation
 
$
(153
)
 
$
17

 
$
(17
)
 
$
(153
)

E-8



Condensed Statement of Revenues and Expenses
Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis)
 
 
Three Months Ended January 31, 2011(A)
 
 
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
(in millions)
 
 
 
 
 
 
 
 
Sales of manufactured products
 
$
2,693

 
$

 
$

 
$
2,693

Finance revenues
 

 
73

 
(23
)
 
50

Sales and revenues, net
 
2,693

 
73

 
(23
)
 
2,743

Costs of products sold
 
2,199

 

 

 
2,199

Restructuring charges
 
21

 
1

 

 
22

Selling, general and administrative expenses
 
302

 
17

 
(1
)
 
318

Engineering and product development costs
 
129

 

 

 
129

Interest expense (income)
 
36

 
30

 
(3
)
 
63

Other expense (income), net
 
15

 
(7
)
 
(19
)
 
(11
)
Total costs and expenses
 
2,702

 
41

 
(23
)
 
2,720

Equity in loss of non-consolidated affiliates
 
17

 

 

 
17

Income (loss) before income taxes and equity income from financial services operations
 
(26
)
 
32

 

 
6

Equity income (loss) from financial services operations
 
21

 

 
(21
)
 

Income (loss) before income taxes
 
(5
)
 
32

 
(21
)
 
6

Income tax benefit (expense)
 
11

 
(11
)
 

 

Net income (loss)
 
6

 
21

 
(21
)
 
6

Less: Income attributable to non-controlling interests
 
12

 

 

 
12

Net income (loss) attributable to Navistar International Corporation
 
$
(6
)
 
$
21

 
$
(21
)
 
$
(6
)
_________________
(A)
Effective with the fourth quarter of 2011, the Company presents manufacturing operations with financial services operations on an after-tax equity basis. Previously, financial services was presented on a pre-tax equity basis. The first quarter of 2011 amounts have been reclassified to conform to the this presentation.





E-9



Condensed Statements of Assets, Liabilities, and Stockholders' Deficit
Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis)
 
 
As of January 31, 2012 
 
 
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Balance Sheet
(in millions)
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
418

 
$
70

 
$

 
$
488

Marketable securities
 
419

 
20

 

 
439

Restricted cash and cash equivalents
 
29

 
126

 

 
155

Finance and other receivables, net
 
978

 
2,780

 
(164
)
 
3,594

Inventories
 
1,908

 
8

 

 
1,916

Goodwill
 
312

 

 

 
312

Property and equipment, net
 
1,510

 
161

 

 
1,671

Investments in and advances to financial services operations
 
584

 

 
(584
)
 

Investments in non-consolidated affiliates
 
61

 

 

 
61

Deferred taxes, net
 
2,088

 
26

 

 
2,114

Other assets
 
714

 
39

 

 
753

Total Assets
 
$
9,021

 
$
3,230

 
$
(748
)
 
$
11,503

Liabilities and Stockholders' Equity (Deficit)
 
 
 
 
 
 
 
 
Accounts payable
 
$
2,001

 
$
24

 
$
(164
)
 
$
1,861

Debt
 
2,030

 
2,503

 

 
4,533

Postretirement benefits liabilities
 
3,230

 
53

 

 
3,283

Other liabilities
 
1,950

 
66

 

 
2,016

Total Liabilities
 
9,211

 
2,646

 
(164
)
 
11,693

Redeemable equity securities
 
5

 

 

 
5

Stockholders' equity attributable to non-controlling interest
 
41

 

 

 
41

Stockholders' equity (deficit) attributable to controlling interest
 
(236
)
 
584

 
(584
)
 
(236
)
Total Liabilities and Stockholders' Equity (Deficit)
 
$
9,021

 
$
3,230

 
$
(748
)
 
$
11,503


E-10



Condensed Statements of Assets, Liabilities, and Stockholders' Deficit
Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis)
 
 
As of October 31, 2011
 
 
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Balance Sheet
(in millions)
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
488

 
$
51

 
$

 
$
539

Marketable securities
 
698

 
20

 

 
718

Restricted cash and cash equivalents
 
29

 
298

 

 
327

Finance and other receivables, net
 
1,341

 
3,007

 
(94
)
 
4,254

Inventories
 
1,704

 
10

 

 
1,714

Goodwill
 
319

 

 

 
319

Property and equipment, net
 
1,433

 
137

 

 
1,570

Investments in and advances to financial services operations
 
564

 

 
(564
)
 

Investments in non-consolidated affiliates
 
60

 

 

 
60

Deferred taxes, net
 
2,031

 
26

 

 
2,057

Other assets
 
705

 
28

 

 
733

Total Assets
 
$
9,372

 
$
3,577

 
$
(658
)
 
$
12,291

Liabilities and Stockholders' Equity (Deficit)
 
 
 
 
 
 
 
 
Accounts payable
 
$
2,194

 
$
22

 
$
(94
)
 
$
2,122

Debt
 
1,980

 
2,876

 

 
4,856

Postretirement benefits liabilities
 
3,262

 
54

 

 
3,316

Other liabilities
 
1,908

 
61

 

 
1,969

Total Liabilities
 
9,344

 
3,013

 
(94
)
 
12,263

Redeemable equity securities
 
5

 

 

 
5

Stockholders' equity attributable to non-controlling interest
 
50

 

 

 
50

Stockholders' equity (deficit) attributable to controlling interest
 
(27
)
 
564

 
(564
)
 
(27
)
Total Liabilities and Stockholders' Equity (Deficit)
 
$
9,372

 
$
3,577

 
$
(658
)
 
$
12,291




E-11



Condensed Statement of Cash Activity
Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis)
 
 
Three Months Ended January 31, 2012
 
 
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Condensed Consolidated Statement of Cash Flows
(in millions)
 
 
 
 
 
 
 
 
Cash flows from operating activities
 
 
 
 
 
 
 
 
Net income (loss)
 
$
(140
)
 
$
17

 
$
(17
)
 
$
(140
)
Adjustments to reconcile net income to cash provided by operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
67

 
1

 

 
68

Depreciation of equipment leased to others
 
3

 
7

 

 
10

Amortization of debt issuance costs and discount
 
7

 
2

 

 
9

Deferred income taxes
 
(52
)
 

 

 
(52
)
Equity in loss of non-consolidated affiliates
 
7

 

 

 
7

Equity in income of financial services affiliates
 
(17
)
 

 
17

 

Change in intercompany receivables and payables
 
68

 
(68
)
 

 

Other, net
 
(85
)
 
302

 

 
217

Net cash provided by (used in) operating activities
 
(142
)
 
261

 

 
119

Cash flows from investing activities
 
 
 
 
 
 
 


Purchases of marketable securities
 
(459
)
 

 

 
(459
)
Sales or maturities of marketable securities
 
738

 

 

 
738

Net change in restricted cash and cash equivalents
 

 
172

 

 
172

Capital expenditures
 
(102
)
 
(1
)
 

 
(103
)
Purchase of equipment leased to others
 

 
(25
)
 

 
(25
)
Acquisition of intangibles
 
(12
)
 

 

 
(12
)
Business acquisitions, net of cash received
 
(3
)
 

 

 
(3
)
Other investing activities
 
(8
)
 
1

 

 
(7
)
Net cash provided by investing activities
 
154

 
147

 

 
301

Net cash used in financing activities
 
(85
)
 
(393
)
 

 
(478
)
Effect of exchange rate changes on cash and cash equivalents
 
3

 
4

 

 
7

Increase (decrease) in cash and cash equivalents
 
(70
)
 
19

 

 
(51
)
Cash and cash equivalents at beginning of the period
 
488

 
51

 

 
539

Cash and cash equivalents at end of the period
 
$
418

 
$
70

 
$

 
$
488



E-12



Condensed Statement of Cash Activity
Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis)
 
 
Three Months Ended January 31, 2011(A)
 
 
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Condensed Consolidated Statement of Cash Flows
(in millions)
 
 
 
 
 
 
 
 
Cash flows from operating activities
 
 
 
 
 
 
 
 
Net income (loss)
 
$
6

 
$
21

 
$
(21
)
 
$
6

Adjustments to reconcile net income to cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
70

 
1

 

 
71

Depreciation of equipment leased to others
 
4

 
5

 

 
9

Amortization of debt issuance costs and discount
 
7

 
5

 

 
12

Equity in loss of non-consolidated affiliates
 
17

 

 

 
17

Equity in income of financial services affiliates
 
(21
)
 

 
21

 

Dividends from non-consolidated affiliates
 
1

 

 

 
1

Change in intercompany receivables and payables
 
(33
)
 
33

 

 

Other, net
 
(265
)
 
154

 

 
(111
)
Net cash provided by (used in) operating activities
 
(214
)
 
219

 

 
5

Cash flows from investing activities
 
 
 
 
 
 
 
 
Purchases of marketable securities
 
(140
)
 

 

 
(140
)
Sales or maturities of marketable securities
 
316

 

 

 
316

Net change in restricted cash and cash equivalents
 
(1
)
 
10

 

 
9

Capital expenditures
 
(95
)
 

 

 
(95
)
Purchase of equipment leased to others
 
(1
)
 
(13
)
 

 
(14
)
Other investing activities
 
(16
)
 
3

 

 
(13
)
Net cash provided by investing activities
 
63

 

 

 
63

Net cash used in financing activities
 
(13
)
 
(244
)
 

 
(257
)
Effect of exchange rate changes on cash and cash equivalents
 
2

 
1

 

 
3

Decrease in cash and cash equivalents
 
(162
)
 
(24
)
 

 
(186
)
Cash and cash equivalents at beginning of the period
 
534

 
51

 

 
585

Cash and cash equivalents at end of the period
 
$
372

 
$
27

 
$

 
$
399

_________________
(A)
Effective with the fourth quarter of 2011, the Company presents manufacturing operations with financial services operations on an after-tax equity basis. Previously, financial services was presented on a pre-tax equity basis. The first quarter of 2011 amounts have been reclassified to conform to the this presentation.

E-13