EX-99.1 7 navex9914302014.htm ADDITIONAL FINANCIAL INFORMATION (UNAUDITED) NAV EX 99.1 4.30.2014


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 and our Financial Services operations on an after-tax equity basis. Our Manufacturing operations, for this purpose, include our North America Truck segment, North America Parts segment, Global Operations 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.
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 April 30, 2014
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
2,708

 
$
—

 
$
—

 
$
2,708

Finance revenues
—

 
57

 
(19
)
 
38

Sales and revenues, net
2,708

 
57

 
(19
)
 
2,746

Costs of products sold
2,468

 
—

 
—

 
2,468

Restructuring charges
7

 
1

 
—

 
8

Asset impairment charges
150

 
1

 
—

 
151

Selling, general and administrative expenses
216

 
22

 
(1
)
 
237

Engineering and product development costs
83

 
—

 
—

 
83

Interest expense
57

 
17

 
—

 
74

Other expense (income), net
19

 
(9
)
 
(18
)
 
(8
)
Total costs and expenses
3,000

 
32

 
(19
)
 
3,013

Equity in income of non-consolidated affiliates
3

 
—

 
—

 
3

Income (loss) before equity income from financial services operations and income taxes
(289
)
 
25

 
—

 
(264
)
Equity income from financial services operations
16

 
—

 
(16
)
 
—

Income (loss) from continuing operations before income taxes
(273
)
 
25

 
(16
)
 
(264
)
Income tax expense
(14
)
 
(9
)
 
—

 
(23
)
Income (loss) from continuing operations
(287
)
 
16

 
(16
)
 
(287
)
Income from discontinued operations, net of tax
1

 
—

 
—

 
1

Net income (loss)
(286
)
 
16

 
(16
)
 
(286
)
Less: Income attributable to non-controlling interests
11

 
—

 
—

 
11

Net income (loss) attributable to Navistar International Corporation
$
(297
)
 
$
16

 
$
(16
)
 
$
(297
)


E- 6


 
For the Six Months Ended April 30, 2014
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
4,877

 
$
—

 
$
—

 
$
4,877

Finance revenues
—

 
112

 
(35
)
 
77

Sales and revenues, net
4,877

 
112

 
(35
)
 
4,954

Costs of products sold
4,482

 
—

 
—

 
4,482

Restructuring charges
10

 
1

 
—

 
11

Asset impairment charges
168

 
1

 
—

 
169

Selling, general and administrative expenses
432

 
46

 
(2
)
 
476

Engineering and product development costs
173

 
—

 
—

 
173

Interest expense
122

 
34

 
—

 
156

Other expense (income), net
56

 
(17
)
 
(33
)
 
6

Total costs and expenses
5,443

 
65

 
(35
)
 
5,473

Equity in income of non-consolidated affiliates
3

 
—

 
—

 
3

Income (loss) before equity income from financial services operations and income taxes
(563
)
 
47

 
—

 
(516
)
Equity income from financial services operations
30

 
—

 
(30
)
 
—

Income (loss) from continuing operations before income taxes
(533
)
 
47

 
(30
)
 
(516
)
Income tax benefit (expense)
6

 
(17
)
 
—

 
(11
)
Income (loss) from continuing operations
(527
)
 
30

 
(30
)
 
(527
)
Income from discontinued operations, net of tax
2

 
—

 
—

 
2

Net income (loss)
(525
)
 
30

 
(30
)
 
(525
)
Less: Income attributable to non-controlling interests
20

 
—

 
—

 
20

Net income (loss) attributable to Navistar International Corporation
$
(545
)
 
$
30

 
$
(30
)
 
$
(545
)


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 Three Months Ended April 30, 2013
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
2,487

 
$
—

 
$
—

 
$
2,487

Finance revenues
—

 
58

 
(19
)
 
39

Sales and revenues, net
2,487

 
58

 
(19
)
 
2,526

Costs of products sold
2,363

 
—

 
—

 
2,363

Restructuring charges
4

 
2

 
—

 
6

Selling, general and administrative expenses
290

 
23

 
(1
)
 
312

Engineering and product development costs
100

 
—

 
—

 
100

Interest expense
73

 
17

 
—

 
90

Other expense (income), net
2

 
(3
)
 
(18
)
 
(19
)
Total costs and expenses
2,832

 
39

 
(19
)
 
2,852

Equity in income of non-consolidated affiliates
4

 
—

 
—

 
4

Income (loss) before equity income from financial services operations and income taxes
(341
)
 
19

 
—

 
(322
)
Equity income from financial services operations
12

 
—

 
(12
)
 
—

Income (loss) from continuing operations before income taxes
(329
)
 
19

 
(12
)
 
(322
)
Income tax expense
(15
)
 
(7
)
 
—

 
(22
)
Income (loss) from continuing operations
(344
)
 
12

 
(12
)
 
(344
)
Loss from discontinued operations, net of tax
(21
)
 
—

 
—

 
(21
)
Net income (loss)
(365
)
 
12

 
(12
)
 
(365
)
Less: Income attributable to non-controlling interests
9

 
—

 
—

 
9

Net income (loss) attributable to Navistar International Corporation
$
(374
)
 
$
12

 
$
(12
)
 
$
(374
)


E- 8


 
For the Six Months Ended April 30, 2013
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
5,085

 
$
—

 
$
—

 
$
5,085

Finance revenues
—

 
117

 
(39
)
 
78

Sales and revenues, net
5,085

 
117

 
(39
)
 
5,163

Costs of products sold
4,649

 
—

 
—

 
4,649

Restructuring charges
5

 
3

 
—

 
8

Selling, general and administrative expenses
556

 
43

 
(2
)
 
597

Engineering and product development costs
211

 
—

 
—

 
211

Interest expense
130

 
35

 
(1
)
 
164

Other income, net
(16
)
 
(5
)
 
(36
)
 
(57
)
Total costs and expenses
5,535

 
76

 
(39
)
 
5,572

Equity in income of non-consolidated affiliates
3

 
—

 
—

 
3

Income (loss) before equity income from financial services operations and income taxes
(447
)
 
41

 
—

 
(406
)
Equity income from financial services operations
26

 
—

 
(26
)
 
—

Income (loss) from continuing operations before income taxes
(421
)
 
41

 
(26
)
 
(406
)
Income tax expense
(22
)
 
(15
)
 
—

 
(37
)
Income (loss) from continuing operations
(443
)
 
26

 
(26
)
 
(443
)
Loss from discontinued operations, net of tax
(30
)
 
—

 
—

 
(30
)
Net income (loss)
(473
)
 
26

 
(26
)
 
(473
)
Less: Income attributable to non-controlling interests
24

 
—

 
—

 
24

Net income (loss) attributable to Navistar International Corporation
$
(497
)
 
$
26

 
$
(26
)
 
$
(497
)





E- 9


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 April 30, 2014
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Balance Sheet
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
563

 
$
31

 
$
—

 
$
594

Marketable securities
497

 
37

 
—

 
534

Restricted cash
22

 
90

 
—

 
112

Finance and other receivables, net
658

 
2,360

 
(336
)
 
2,682

Inventories
1,370

 
14

 
—

 
1,384

Goodwill
38

 
—

 
—

 
38

Property and equipment, net
1,448

 
245

 
—

 
1,693

Investments in and advances to financial services operations
713

 
—

 
(713
)
 
—

Investments in non-consolidated affiliates
69

 
—

 
—

 
69

Deferred taxes, net
166

 
26

 
—

 
192

Other assets
402

 
27

 
—

 
429

Total assets
$
5,946

 
$
2,830

 
$
(1,049
)
 
$
7,727

Liabilities and stockholders' equity (deficit)
 
 
 
 
 
 
 
Accounts payable
$
1,867

 
$
38

 
$
(336
)
 
$
1,569

Debt
3,170

 
1,930

 
—

 
5,100

Postretirement benefits liabilities
2,538

 
36

 
—

 
2,574

Other liabilities
2,443

 
113

 
—

 
2,556

Total liabilities
10,018

 
2,117

 
(336
)
 
11,799

Redeemable equity securities
2

 
—

 
—

 
2

Stockholders' equity attributable to non-controlling interest
34

 
—

 
—

 
34

Stockholders' equity (deficit) attributable to controlling interest
(4,108
)
 
713

 
(713
)
 
(4,108
)
Total liabilities and stockholders' equity (deficit)
$
5,946

 
$
2,830

 
$
(1,049
)
 
$
7,727


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 October 31, 2013
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Balance Sheet
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
727

 
$
28

 
$
—

 
$
755

Marketable securities
796

 
34

 
—

 
830

Restricted cash
26

 
65

 
—

 
91

Finance and other receivables, net
767

 
2,284

 
(350
)
 
2,701

Inventories
1,194

 
16

 
—

 
1,210

Goodwill
184

 
—

 
—

 
184

Property and equipment, net
1,521

 
220

 
—

 
1,741

Investments in and advances to financial services operations
686

 
—

 
(686
)
 
—

Investments in non-consolidated affiliates
77

 
—

 
—

 
77

Deferred taxes, net
204

 
27

 
—

 
231

Other assets
464

 
31

 
—

 
495

Total assets
$
6,646

 
$
2,705

 
$
(1,036
)
 
$
8,315

Liabilities and stockholders' equity (deficit)
 
 
 
 
 
 
 
Accounts payable
$
1,824

 
$
28

 
$
(350
)
 
$
1,502

Debt
3,219

 
1,866

 
—

 
5,085

Postretirement benefits liabilities
2,614

 
38

 
—

 
2,652

Other liabilities
2,590

 
87

 
—

 
2,677

Total liabilities
10,247

 
2,019

 
(350
)
 
11,916

Redeemable equity securities
4

 
—

 
—

 
4

Stockholders' equity attributable to non-controlling interest
44

 
—

 
—

 
44

Stockholders' equity (deficit) attributable to controlling interest
(3,649
)
 
686

 
(686
)
 
(3,649
)
Total liabilities and stockholders' equity (deficit)
$
6,646

 
$
2,705

 
$
(1,036
)
 
$
8,315


E- 11


Condensed Statements of Cash Activity
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
For the Six Months Ended April 30, 2014
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Condensed Consolidated Statement of Cash Flows
Cash flows from operating activities
 
 
 
 
 
 
 
Net income (loss)
$
(525
)
 
$
30

 
$
(30
)
 
$
(525
)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
122

 
—

 
—

 
122

Depreciation of equipment leased to others
42

 
21

 
—

 
63

Amortization of debt issuance costs and discount
21

 
6

 
—

 
27

Deferred income taxes
(2
)
 
—

 
—

 
(2
)
Asset Impairment
168

 
1

 
—

 
169

Equity in income of financial services affiliates
(30
)
 
—

 
30

 
—

Dividends from non-consolidated affiliates
9

 
—

 
—

 
9

Change in intercompany receivables and payables
(15
)
 
15

 
—

 
—

Other, net
(131
)
 
(58
)
 
—

 
(189
)
Net cash provided by (used in) operating activities
(341
)
 
15

 
—

 
(326
)
Cash flows from investing activities
 
 
 
 
 
 


Purchases of marketable securities
(785
)
 
(3
)
 
—

 
(788
)
Sales of marketable securities
902

 
—

 
—

 
902

Maturities of marketable securities
182

 
—

 
—

 
182

Net change in restricted cash and cash equivalents
4

 
(25
)
 
—

 
(21
)
Capital expenditures
(49
)
 
(1
)
 
—

 
(50
)
Purchase of equipment leased to others
(45
)
 
(63
)
 
—

 
(108
)
Other investing activities
15

 
10

 
—

 
25

Net cash provided by (used in) investing activities
224

 
(82
)
 
—

 
142

Net cash provided by (used in) financing activities
(36
)
 
69

 
—

 
33

Effect of exchange rate changes on cash and cash equivalents
(11
)
 
1

 
—

 
(10
)
Increase (decrease) in cash and cash equivalents
(164
)
 
3

 
—

 
(161
)
Cash and cash equivalents at beginning of the period
727

 
28

 
—

 
755

Cash and cash equivalents at end of the period
$
563

 
$
31

 
$
—

 
$
594


E- 12


Condensed Statements of Cash Activity
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
For the Six Months Ended April 30, 2013
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Condensed Consolidated Statement of Cash Flows
Cash flows from operating activities
 
 
 
 
 
 
 
Net income (loss)
$
(473
)
 
$
26

 
$
(26
)
 
$
(473
)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
163

 
1

 
—

 
164

Depreciation of equipment leased to others
60

 
18

 
—

 
78

Amortization of debt issuance costs and discount
25

 
6

 
—

 
31

Deferred income taxes
20

 
—

 
—

 
20

Asset Impairment
8

 
—

 
—

 
8

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

 
—

 
(13
)
Equity in loss of non-consolidated affiliates
(2
)
 
—

 
—

 
(2
)
Equity in income of financial services affiliates
(26
)
 
—

 
26

 
—

Dividends from non-consolidated affiliates
10

 
—

 
—

 
10

Change in intercompany receivables and payables
(27
)
 
27

 
—

 
—

Other, net
18

 
116

 
—

 
134

Net cash provided by (used in) operating activities
(237
)
 
194

 
—

 
(43
)
Cash flows from investing activities
 
 
 
 
 
 
 
Purchases of marketable securities
(746
)
 
(13
)
 
—

 
(759
)
Sales of marketable securities
358

 
—

 
—

 
358

Maturities of marketable securities
134

 
—

 
—

 
134

Net change in restricted cash and cash equivalents
(1
)
 
45

 
—

 
44

Capital expenditures
(106
)
 
(1
)
 
—

 
(107
)
Purchase of equipment leased to others
(242
)
 
(53
)
 
—

 
(295
)
Other investing activities
47

 
2

 
—

 
49

Net cash used in investing activities
(556
)
 
(20
)
 
—

 
(576
)
Net cash provided by (used in) financing activities
205

 
(163
)
 
—

 
42

Effect of exchange rate changes on cash and cash equivalents
(6
)
 
1

 
—

 
(5
)
Increase (decrease) in cash and cash equivalents
(594
)
 
12

 
—

 
(582
)
Cash and cash equivalents at beginning of the period
1,059

 
28

 
—

 
1,087

Cash and cash equivalents at end of the period
$
465

 
$
40

 
$
—

 
$
505



E- 13