EX-99.1 7 navex9911312013.htm EXHIBIT NAV EX 99.1 1.31.2013


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.
These non-GAAP financial measures should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP. The reconciling differences between these non-GAAP financial measures and our U.S. 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, and stockholders' equity (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 activity. In the first quarter of 2013, the condensed statements of revenues and expenses were restated to reflect the operating results of Workhorse Custom Chassis ("WCC") and certain operating results of the Monaco recreational vehicle business (“Monaco”) as discontinued operations.

Condensed Statements of Revenues and Expenses
Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis)
 
For the Three Months Ended January 31, 2013
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
2,598

 
$
—

 
$
—

 
$
2,598

Finance revenues
—

 
59

 
(20
)
 
39

Sales and revenues, net
2,598

 
59

 
(20
)
 
2,637

Costs of products sold
2,286

 
—

 
—

 
2,286

Restructuring charges
1

 
1

 
—

 
2

Selling, general and administrative expenses
266

 
20

 
(1
)
 
285

Engineering and product development costs
111

 
—

 
—

 
111

Interest expense
57

 
18

 
(1
)
 
74

Other income, net
(18
)
 
(2
)
 
(18
)
 
(38
)
Total costs and expenses
2,703

 
37

 
(20
)
 
2,720

Equity in loss of non-consolidated affiliates
(1
)
 
—

 
—

 
(1
)
Income (loss) before equity income from financial services operations and income taxes
(106
)
 
22

 
—

 
(84
)
Equity income from financial services operations
14

 
—

 
(14
)
 
—

Income (loss) from continuing operations before income taxes
(92
)
 
22

 
(14
)
 
(84
)
Income tax expense
(7
)
 
(8
)
 
—

 
(15
)
Income (loss) from continuing operations
(99
)
 
14

 
(14
)
 
(99
)
Loss from discontinued operations, net of tax
(9
)
 
—

 
—

 
(9
)
Net income (loss)
(108
)
 
14

 
(14
)
 
(108
)
Less: Income attributable to non-controlling interests
15

 
—

 
—

 
15

Net income (loss) attributable to Navistar International Corporation
$
(123
)
 
$
14

 
$
(14
)
 
$
(123
)

E-35


Condensed Statements of Revenues and Expenses
Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis)
 
For the Three Months Ended January 31, 2012
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
2,965

 
$
—

 
$
—

 
$
2,965

Finance revenues
—

 
68

 
(24
)
 
44

Sales and revenues, net
2,965

 
68

 
(24
)
 
3,009

Costs of products sold
2,650

 
—

 
—

 
2,650

Selling, general and administrative expenses
337

 
19

 
(1
)
 
355

Engineering and product development costs
135

 
—

 
—

 
135

Interest expense
37

 
25

 
(1
)
 
61

Other expense (income), net
32

 
(2
)
 
(22
)
 
8

Total costs and expenses
3,191

 
42

 
(24
)
 
3,209

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

 
—

 
(7
)
Income (loss) before equity income from financial services operations and income taxes
(233
)
 
26

 
—

 
(207
)
Equity income from financial services operations
17

 
—

 
(17
)
 
—

Income (loss) from continuing operations before income taxes
(216
)
 
26

 
(17
)
 
(207
)
Income tax benefit (expense)
85

 
(9
)
 
—

 
76

Income (loss) from continuing operations
(131
)
 
17

 
(17
)
 
(131
)
Loss from discontinued operations, net of tax
(9
)
 
—

 
—

 
(9
)
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-36


Condensed Statements of Assets, Liabilities, and Stockholders' Equity (Deficit)
Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis)
 
As of January 31, 2013
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Balance Sheet
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
438

 
$
59

 
$
—

 
$
497

Marketable securities
751

 
20

 
—

 
771

Restricted cash
33

 
69

 
—

 
102

Finance and other receivables, net
841

 
2,011

 
(17
)
 
2,835

Inventories
1,500

 
20

 
—

 
1,520

Goodwill
282

 
—

 
—

 
282

Property and equipment, net
1,461

 
182

 
—

 
1,643

Investments in and advances to financial services operations
646

 
—

 
(646
)
 
—

Investments in non-consolidated affiliates
59

 
—

 
—

 
59

Deferred taxes, net
232

 
32

 
—

 
264

Other assets
528

 
30

 
—

 
558

Total assets
$
6,771

 
$
2,423

 
$
(663
)
 
$
8,531

Liabilities and stockholders' equity (deficit)
 
 
 
 
 
 
 
Accounts payable
$
1,534

 
$
30

 
$
(17
)
 
$
1,547

Debt
2,854

 
1,608

 
—

 
4,462

Postretirement benefits liabilities
3,418

 
51

 
—

 
3,469

Other liabilities
2,274

 
88

 
—

 
2,362

Total liabilities
10,080

 
1,777

 
(17
)
 
11,840

Redeemable equity securities
4

 
—

 
—

 
4

Stockholders' equity attributable to non-controlling interest
46

 
—

 
—

 
46

Stockholders' equity (deficit) attributable to controlling interest
(3,359
)
 
646

 
(646
)
 
(3,359
)
Total liabilities and stockholders' equity (deficit)
$
6,771

 
$
2,423

 
$
(663
)
 
$
8,531


E-37


Condensed Statements of Assets, Liabilities, and Stockholders' Equity (Deficit)
Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis)
 
As of October 31, 2012 
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Balance Sheet
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,059

 
$
28

 
$
—

 
$
1,087

Marketable securities
446

 
20

 
—

 
466

Restricted cash
31

 
130

 
—

 
161

Finance and other receivables, net
843

 
2,247

 
(98
)
 
2,992

Inventories
1,528

 
9

 
—

 
1,537

Goodwill
280

 
—

 
—

 
280

Property and equipment, net
1,497

 
163

 
—

 
1,660

Investments in and advances to financial services operations
628

 
—

 
(628
)
 
—

Investments in non-consolidated affiliates
62

 
—

 
—

 
62

Deferred taxes, net
231

 
32

 
—

 
263

Other assets
562

 
32

 
—

 
594

Total assets
$
7,167

 
$
2,661

 
$
(726
)
 
$
9,102

Liabilities and stockholders' equity (deficit)
 
 
 
 
 
 
 
Accounts payable
$
1,752

 
$
32

 
$
(98
)
 
$
1,686

Debt
2,905

 
1,866

 
—

 
4,771

Postretirement benefits liabilities
3,459

 
52

 
—

 
3,511

Other liabilities
2,311

 
83

 
—

 
2,394

Total liabilities
10,427

 
2,033

 
(98
)
 
12,362

Redeemable equity securities
5

 
—

 
—

 
5

Stockholders' equity attributable to non-controlling interest
45

 
—

 
—

 
45

Stockholders' equity (deficit) attributable to controlling interest
(3,310
)
 
628

 
(628
)
 
(3,310
)
Total liabilities and stockholders' equity (deficit)
$
7,167

 
$
2,661

 
$
(726
)
 
$
9,102


E-38


Condensed Statements of Cash Activity
Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis)
 
Three Months Ended January 31, 2013
(in millions)
Manufacturing
Operations 
 
Financial
Services
Operations
 
Adjustments  
 
Condensed
Consolidated
Statement of
Cash Flows
Cash flows from operating activities
 
 
 
 
 
 
 
Net income (loss)
$
(108
)
 
$
14

 
$
(14
)
 
$
(108
)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
89

 
—

 
—

 
89

Depreciation of equipment leased to others
2

 
9

 
—

 
11

Amortization of debt issuance costs and discount
13

 
3

 
—

 
16

Deferred income taxes
(9
)
 
—

 
—

 
(9
)
Equity in loss of non-consolidated affiliates
1

 
—

 
—

 
1

Equity in income of financial services affiliates
(14
)
 
—

 
14

 
—

Dividends from non-consolidated affiliates
2

 
—

 
—

 
2

Change in intercompany receivables and payables
(81
)
 
81

 
—

 
—

Other, net
(98
)
 
162

 
—

 
64

Net cash provided by (used in) operating activities
(203
)
 
269

 
—

 
66

Cash flows from investing activities
 
 
 
 
 
 


Purchases of marketable securities
(482
)
 
—

 
—

 
(482
)
Sales or maturities of marketable securities
177

 
—

 
—

 
177

Net change in restricted cash and cash equivalents
(2
)
 
61

 
—

 
59

Capital expenditures
(72
)
 
—

 
—

 
(72
)
Purchase of equipment leased to others
—

 
(32
)
 
—

 
(32
)
Other investing activities
3

 
—

 
—

 
3

Net cash provided by (used in) investing activities
(376
)
 
29

 
—

 
(347
)
Net cash used in financing activities
(37
)
 
(266
)
 
—

 
(303
)
Effect of exchange rate changes on cash and cash equivalents
(5
)
 
(1
)
 
—

 
(6
)
Increase (decrease) in cash and cash equivalents
(621
)
 
31

 
—

 
(590
)
Cash and cash equivalents at beginning of the period
1,059

 
28

 
—

 
1,087

Cash and cash equivalents at end of the period
$
438

 
$
59

 
$
—

 
$
497


E-39


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

 
$
(17
)
 
$
(140
)
Adjustments to reconcile net income (loss) to cash provided by (used in) 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
(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-40