EX-99.1 8 navex9917312013.htm ADDITIONAL FINANCIAL INFORMATION UNAUDITED NAV EX 99.1 7.31.2013


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 operations 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.
Beginning in the first quarter of 2013, the Company began reporting the operating results of WCC and certain operating results of Monaco as discontinued operations. The Company's previously issued condensed statements of revenues and expenses have been restated to reflect this change.

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 July 31, 2013
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
2,820

 
$

 
$

 
$
2,820

Finance revenues

 
62

 
(21
)
 
41

Sales and revenues, net
2,820

 
62

 
(21
)
 
2,861

Costs of products sold
2,547

 

 

 
2,547

Restructuring charges
5

 
1

 

 
6

Asset impairment charges
17

 

 

 
17

Selling, general and administrative expenses
286

 
23

 
(1
)
 
308

Engineering and product development costs
99

 

 

 
99

Interest expense
60

 
17

 
(1
)
 
76

Other expense (income), net
43

 
(2
)
 
(19
)
 
22

Total costs and expenses
3,057

 
39

 
(21
)
 
3,075

Equity in income of non-consolidated affiliates
3

 

 

 
3

Income (loss) before equity income from financial services operations and income taxes
(234
)
 
23

 

 
(211
)
Equity income from financial services operations
16

 

 
(16
)
 

Income (loss) from continuing operations before income taxes
(218
)
 
23

 
(16
)
 
(211
)
Income tax expense
(9
)
 
(7
)
 

 
(16
)
Income (loss) from continuing operations
(227
)
 
16

 
(16
)
 
(227
)
Loss from discontinued operations, net of tax
(10
)
 

 

 
(10
)
Net income (loss)
(237
)
 
16

 
(16
)
 
(237
)
Less: Income attributable to non-controlling interests
10

 

 

 
10

Net income (loss) attributable to Navistar International Corporation
$
(247
)
 
$
16

 
$
(16
)
 
$
(247
)

E- 7



Condensed Statements of Revenues and Expenses
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
For the Nine Months Ended July 31, 2013
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
7,905

 
$

 
$

 
$
7,905

Finance revenues

 
178

 
(59
)
 
119

Sales and revenues, net
7,905

 
178

 
(59
)
 
8,024

Costs of products sold
7,196

 

 

 
7,196

Restructuring charges
10

 
4

 

 
14

Asset impairment charges
17

 

 

 
17

Selling, general and administrative expenses
842

 
66

 
(3
)
 
905

Engineering and product development costs
310

 

 

 
310

Interest expense
190

 
52

 
(2
)
 
240

Other expense (income), net
27

 
(8
)
 
(54
)
 
(35
)
Total costs and expenses
8,592

 
114

 
(59
)
 
8,647

Equity in income of non-consolidated affiliates
6

 

 

 
6

Income (loss) before equity income from financial services operations and income taxes
(681
)
 
64

 

 
(617
)
Equity income from financial services operations
42

 

 
(42
)
 

Income (loss) from continuing operations before income taxes
(639
)
 
64

 
(42
)
 
(617
)
Income tax expense
(31
)
 
(22
)
 

 
(53
)
Income (loss) from continuing operations
(670
)
 
42

 
(42
)
 
(670
)
Loss from discontinued operations, net of tax
(40
)
 

 

 
(40
)
Net income (loss)
(710
)
 
42

 
(42
)
 
(710
)
Less: Income attributable to non-controlling interests
34

 

 

 
34

Net income (loss) attributable to Navistar International Corporation
$
(744
)
 
$
42

 
$
(42
)
 
$
(744
)

E- 8



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 July 31, 2012
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
3,204

 
$

 
$

 
$
3,204

Finance revenues


 
64

 
(22
)
 
42

Sales and revenues, net
3,204

 
64

 
(22
)
 
3,246

Costs of products sold
2,800

 

 

 
2,800

Restructuring charges
4

 

 

 
4

Asset impairment charges

 

 

 

Selling, general and administrative expenses
300

 
24

 
(2
)
 
322

Engineering and product development costs
135

 

 

 
135

Interest expense
40

 
20

 
(1
)
 
59

Other expense (income), net
32

 
(1
)
 
(19
)
 
12

Total costs and expenses
3,311

 
43

 
(22
)
 
3,332

Equity in loss of non-consolidated affiliates
(10
)
 

 

 
(10
)
Income (loss) before equity income from financial services operations and income taxes
(117
)
 
21

 

 
(96
)
Equity income from financial services operations
13

 

 
(13
)
 

Income (loss) from continuing operations before income taxes
(104
)
 
21

 
(13
)
 
(96
)
Income tax benefit (expense)
196

 
(8
)
 

 
188

Income from continuing operations
92

 
13

 
(13
)
 
92

Income from discontinued operations, net of tax
4

 

 

 
4

Net income
96

 
13

 
(13
)
 
96

Less: Income attributable to non-controlling interests
12

 

 

 
12

Net income attributable to Navistar International Corporation
$
84

 
$
13

 
$
(13
)
 
$
84



E- 9



Condensed Statements of Revenues and Expenses
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
For the Nine Months Ended July 31, 2012
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
9,387

 
$

 
$

 
$
9,387

Finance revenues

 
199

 
(70
)
 
129

Sales and revenues, net
9,387

 
199

 
(70
)
 
9,516

Costs of products sold
8,350

 

 

 
8,350

Restructuring charges
23

 

 

 
23

Asset impairment charges
10

 

 

 
10

Selling, general and administrative expenses
990

 
63

 
(4
)
 
1,049

Engineering and product development costs
402

 

 

 
402

Interest expense
119

 
67

 
(4
)
 
182

Other expense (income), net
101

 
(6
)
 
(62
)
 
33

Total costs and expenses
9,995

 
124

 
(70
)
 
10,049

Equity in loss of non-consolidated affiliates
(21
)
 

 

 
(21
)
Income (loss) before equity income from financial services operations and income taxes
(629
)
 
75

 

 
(554
)
Equity income from financial services operations
48

 

 
(48
)
 

Income (loss) from continuing operations before income taxes
(581
)
 
75

 
(48
)
 
(554
)
Income tax benefit (expense)
414

 
(27
)
 

 
387

Income (loss) from continuing operations
(167
)
 
48

 
(48
)
 
(167
)
Loss from discontinued operations, net of tax
(39
)
 

 

 
(39
)
Net income (loss)
(206
)
 
48

 
(48
)
 
(206
)
Less: Income attributable to non-controlling interests
35

 

 

 
35

Net income (loss) attributable to Navistar International Corporation
$
(241
)
 
$
48

 
$
(48
)
 
$
(241
)

E- 10



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 July 31, 2013
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
413

 
$
12

 
$

 
$
425

Marketable securities
674

 
34

 

 
708

Restricted cash
30

 
140

 

 
170

Finance and other receivables, net
807

 
2,057

 
(86
)
 
2,778

Inventories
1,323

 
13

 

 
1,336

Goodwill
255

 

 

 
255

Property and equipment, net
1,506

 
208

 

 
1,714

Investments in and advances to financial services operations
674

 

 
(674
)
 

Investments in non-consolidated affiliates
80

 

 

 
80

Deferred taxes, net
217

 
32

 

 
249

Other assets
492

 
34

 

 
526

Total assets
$
6,471

 
$
2,530

 
$
(760
)
 
$
8,241

Liabilities and stockholders' equity (deficit)
 
 
 
 
 
 
 
Accounts payable
$
1,596

 
$
36

 
$
(86
)
 
$
1,546

Debt
3,038

 
1,686

 

 
4,724

Postretirement benefits liabilities
3,328

 
49

 

 
3,377

Other liabilities
2,442

 
85

 

 
2,527

Total liabilities
10,404

 
1,856

 
(86
)
 
12,174

Redeemable equity securities
4

 

 

 
4

Stockholders' equity attributable to non-controlling interest
35

 

 

 
35

Stockholders' equity (deficit) attributable to controlling interest
(3,972
)
 
674

 
(674
)
 
(3,972
)
Total liabilities and stockholders' equity (deficit)
$
6,471

 
$
2,530

 
$
(760
)
 
$
8,241


E- 11



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 Statement of Operations
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- 12



Condensed Statements of Cash Activity
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
Nine Months Ended July 31, 2013
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Cash flows from operating activities
 
 
 
 
 
 
 
Net income (loss)
$
(710
)
 
$
42

 
$
(42
)
 
$
(710
)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
224

 
1

 

 
225

Depreciation of equipment leased to others
77

 
28

 

 
105

Amortization of debt issuance costs and discount
34

 
9

 

 
43

Deferred income taxes
19

 

 

 
19

Impairment of property and equipment and intangible assets
25

 

 

 
25

Gain on sales of investments and businesses, net
(13
)
 

 

 
(13
)
Equity in loss of non-consolidated affiliates
(6
)
 

 

 
(6
)
Equity in income of financial services affiliates
(42
)
 

 
42

 

Dividends from non-consolidated affiliates
11

 

 

 
11

Change in intercompany receivables and payables
(12
)
 
12

 

 

Other, net
145

 
190

 

 
335

Net cash provided by (used in) operating activities
(248
)
 
282

 

 
34

Cash flows from investing activities
 
 
 
 
 
 


Purchases of marketable securities
(1,057
)
 
(13
)
 

 
(1,070
)
Sales or maturities of marketable securities
828

 

 

 
828

Net change in restricted cash and cash equivalents
1

 
(10
)
 

 
(9
)
Capital expenditures
(135
)
 
(1
)
 

 
(136
)
Purchase of equipment leased to others
(266
)
 
(85
)
 

 
(351
)
Other investing activities
44

 
3

 

 
47

Net cash used in investing activities
(585
)
 
(106
)
 

 
(691
)
Net cash provided by (used in) financing activities
208

 
(194
)
 

 
14

Effect of exchange rate changes on cash and cash equivalents
(21
)
 
2

 

 
(19
)
Decrease in cash and cash equivalents
(646
)
 
(16
)
 

 
(662
)
Cash and cash equivalents at beginning of the period
1,059

 
28

 

 
1,087

Cash and cash equivalents at end of the period
$
413

 
$
12

 
$

 
$
425


E- 13



Condensed Statements of Cash Activity
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
Nine Months Ended July 31, 2012
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Cash flows from operating activities
 
 
 
 
 
 
 
Net income (loss)
$
(206
)
 
$
48

 
$
(48
)
 
$
(206
)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
207

 
2

 

 
209

Depreciation of equipment leased to others
14

 
23

 

 
37

Amortization of debt issuance costs and discount
22

 
9

 

 
31

Deferred income taxes
(405
)
 

 

 
(405
)
Impairment of property and equipment and intangible assets
38

 

 

 
38

Equity in loss of non-consolidated affiliates
22

 

 

 
22

Equity in income of financial services affiliates
(48
)
 

 
48

 

Dividends from non-consolidated affiliates
5

 

 

 
5

Change in intercompany receivables and payables
34

 
(34
)
 

 

Other, net
25

 
590

 

 
615

Net cash provided by (used in) operating activities
(292
)
 
638

 

 
346

Cash flows from investing activities
 
 
 
 
 
 
 
Purchases of marketable securities
(672
)
 

 

 
(672
)
Sales or maturities of marketable securities
1,230

 

 

 
1,230

Net change in restricted cash and cash equivalents
3

 
45

 

 
48

Capital expenditures
(248
)
 
(2
)
 

 
(250
)
Purchase of equipment leased to others
(3
)
 
(46
)
 

 
(49
)
Acquisition of intangibles
(14
)
 

 

 
(14
)
Business acquisitions
(12
)
 

 

 
(12
)
Other investing activities
(6
)
 
1

 

 
(5
)
Net cash provided by (used in) investing activities
278

 
(2
)
 

 
276

Net cash provided by (used in) financing activities
23

 
(630
)
 

 
(607
)
Effect of exchange rate changes on cash and cash equivalents
(9
)
 
2

 

 
(7
)
Increase in cash and cash equivalents

 
8

 

 
8

Cash and cash equivalents at beginning of the period
488

 
51

 

 
539

Cash and cash equivalents at end of the period
$
488

 
$
59

 
$

 
$
547


E- 14