EX-99.1 13 navex99110312017.htm EXHIBIT 99.1 Exhibit


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 Truck segment, 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 8, 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 (used in) 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 Year Ended October 31, 2017
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
8,428

 
$
—

 
$
—

 
$
8,428

Finance revenues
—

 
235

 
(93
)
 
142

Sales and revenues, net
8,428

 
235

 
(93
)
 
8,570

Costs of products sold
7,037

 
—

 
—

 
7,037

Restructuring charges
3

 
—

 
—

 
3

Asset impairment charges
13

 
—

 
—

 
13

Selling, general and administrative expenses
797

 
83

 
(2
)
 
878

Engineering and product development costs
251

 
—

 
—

 
251

Interest expense
269

 
86

 
(4
)
 
351

Other (income) expense, net
77

 
(11
)
 
(87
)
 
(21
)
Total costs and expenses
8,447

 
158

 
(93
)
 
8,512

Equity in income of non-consolidated affiliates
6

 
—

 
—

 
6

Income (loss) before equity income from financial services operations and income taxes
(13
)
 
77

 
—

 
64

Equity income from financial services operations
62

 
—

 
(62
)
 
—

Income from continuing operations before income taxes
49

 
77

 
(62
)
 
64

Income tax benefit (expense)
5

 
(15
)
 
—

 
(10
)
Income from continuing operations
54

 
62

 
(62
)
 
54

Income from discontinued operations, net of tax
1

 
—

 
—

 
1

Net income
55

 
62

 
(62
)
 
55

Less: Income attributable to non-controlling interests
25

 
—

 
—

 
25

Net income attributable to Navistar International Corporation
$
30

 
$
62

 
$
(62
)
 
$
30



E-18


Condensed Statements of Revenues and Expenses
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
For the Year Ended October 31, 2016
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
7,976

 
$
—

 
$
—

 
$
7,976

Finance revenues
—

 
235

 
(100
)
 
135

Sales and revenues, net
7,976

 
235

 
(100
)
 
8,111

Costs of products sold
6,812

 
—

 
—

 
6,812

Restructuring charges
10

 
—

 
—

 
10

Asset impairment charges
27

 
—

 
—

 
27

Selling, general and administrative expenses
723

 
81

 
(2
)
 
802

Engineering and product development costs
247

 
—

 
—

 
247

Interest expense
256

 
80

 
(9
)
 
327

Other (income) expense, net
39

 
(26
)
 
(89
)
 
(76
)
Total costs and expenses
8,114

 
135

 
(100
)
 
8,149

Equity in income of non-consolidated affiliates
6

 
—

 
—

 
6

Income (loss) before equity income from financial services operations and income taxes
(132
)
 
100

 
—

 
(32
)
Equity income from financial services operations
67

 
—

 
(67
)
 
—

Income (loss) from continuing operations before income taxes
(65
)
 
100

 
(67
)
 
(32
)
Income tax expense
—

 
(33
)
 
—

 
(33
)
Income (loss) from continuing operations
(65
)
 
67

 
(67
)
 
(65
)
Income from discontinued operations, net of tax
—

 
—

 
—

 
—

Net income (loss)
(65
)
 
67

 
(67
)
 
(65
)
Less: Income attributable to non-controlling interests
32

 
—

 
—

 
32

Net income (loss) attributable to Navistar International Corporation
$
(97
)
 
$
67

 
$
(67
)
 
$
(97
)

E-19


Condensed Statements of Revenues and Expenses
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
For the Year ended October 31, 2015
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
9,995

 
$
—

 
$
—

 
$
9,995

Finance revenues
—

 
241

 
(96
)
 
145

Sales and revenues, net
9,995

 
241

 
(96
)
 
10,140

Costs of products sold
8,670

 
—

 
—

 
8,670

Restructuring charges
75

 
1

 
—

 
76

Asset impairment charges
30

 
—

 
—

 
30

Selling, general and administrative expenses
820

 
91

 
(3
)
 
908

Engineering and product development costs
288

 
—

 
—

 
288

Interest expense
243

 
74

 
(10
)
 
307

Other (income) expense, net
76

 
(23
)
 
(83
)
 
(30
)
Total costs and expenses
10,202

 
143

 
(96
)
 
10,249

Equity in income of non-consolidated affiliates
6

 
—

 
—

 
6

Income (loss) before equity income from financial services operations and income taxes
(201
)
 
98

 
—

 
(103
)
Equity income from financial services operations
71

 
—

 
(71
)
 
—

Income (loss) from continuing operations before income taxes
(130
)
 
98

 
(71
)
 
(103
)
Income tax expense
(24
)
 
(27
)
 
—

 
(51
)
Income (loss) from continuing operations
(154
)
 
71

 
(71
)
 
(154
)
Income from discontinued operations, net of tax
3

 
—

 
—

 
3

Net income (loss)
(151
)
 
71

 
(71
)
 
(151
)
Less: Income attributable to non-controlling interests
33

 
—

 
—

 
33

Net income (loss) attributable to Navistar International Corporation
$
(184
)
 
$
71

 
$
(71
)
 
$
(184
)

E-20


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, 2017
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Balance Sheet
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
666

 
$
40

 
$
—

 
$
706

Marketable securities
370

 
—

 
—

 
370

Restricted cash
24

 
110

 
—

 
134

Finance and other receivables, net
404

 
1,854

 
(69
)
 
2,189

Inventories
850

 
7

 
—

 
857

Goodwill
38

 
—

 
—

 
38

Property and equipment, net
1,083

 
243

 
—

 
1,326

Investments in and advances to financial services operations
517

 
—

 
(517
)
 
—

Investments in non-consolidated affiliates
56

 
—

 
—

 
56

Deferred taxes, net
125

 
4

 
—

 
129

Other assets
312

 
18

 
—

 
330

Total assets
$
4,445

 
$
2,276

 
$
(586
)
 
$
6,135

Liabilities and stockholders' equity (deficit)
 
 
 
 
 
 
 
Accounts payable
$
1,330

 
$
31

 
$
(69
)
 
$
1,292

Debt
3,407

 
1,651

 
—

 
5,058

Postretirement benefits liabilities
2,556

 
—

 
—

 
2,556

Other liabilities
1,726

 
77

 
—

 
1,803

Total liabilities
9,019

 
1,759

 
(69
)
 
10,709

Stockholders' equity attributable to non-controlling interest
4

 
—

 
—

 
4

Stockholders' equity (deficit) attributable to controlling interest
(4,578
)
 
517

 
(517
)
 
(4,578
)
Total liabilities and stockholders' equity (deficit)
$
4,445

 
$
2,276

 
$
(586
)
 
$
6,135


E-21


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, 2016
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Balance Sheet
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
761

 
$
43

 
$
—

 
$
804

Marketable securities
39

 
7

 
—

 
46

Restricted cash
22

 
90

 
—

 
112

Finance and other receivables, net
292

 
1,952

 
(275
)
 
1,969

Inventories
930

 
14

 
—

 
944

Goodwill
38

 
—

 
—

 
38

Property and equipment, net
980

 
261

 
—

 
1,241

Investments in and advances to financial services operations
466

 
—

 
(466
)
 
—

Investments in non-consolidated affiliates
53

 
—

 
—

 
53

Deferred taxes, net
157

 
4

 
—

 
161

Other assets
265

 
20

 
—

 
285

Total assets
$
4,003

 
$
2,391

 
$
(741
)
 
$
5,653

Liabilities and stockholders' equity (deficit)
 
 
 
 
 
 
 
Accounts payable
$
1,345

 
$
43

 
$
(275
)
 
$
1,113

Debt
3,096

 
1,808

 
—

 
4,904

Postretirement benefits liabilities
3,098

 
—

 
—

 
3,098

Other liabilities
1,757

 
74

 
—

 
1,831

Total liabilities
9,296

 
1,925

 
(275
)
 
10,946

Stockholders' equity attributable to non-controlling interest
5

 
—

 
—

 
5

Stockholders' equity (deficit) attributable to controlling interest
(5,298
)
 
466

 
(466
)
 
(5,298
)
Total liabilities and stockholders' equity (deficit)
$
4,003

 
$
2,391

 
$
(741
)
 
$
5,653


E-22


Condensed Statements of Cash Flows
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
For the Year Ended October 31, 2017
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Condensed Consolidated Statement of Cash Flows
Cash flows from operating activities
 
 
 
 
 
 
 
Net income (loss)
$
55

 
$
62

 
$
(62
)
 
$
55

Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
148

 
2

 
—

 
150

Depreciation of equipment leased to others
24

 
49

 
—

 
73

Amortization of debt issuance costs and discount
37

 
12

 
—

 
49

Deferred income taxes
(3
)
 
(3
)
 
—

 
(6
)
Asset impairment charges
13

 
—

 
—

 
13

Gain on sales of investments and businesses, net
(5
)
 
—

 
—

 
(5
)
Equity in income of non-consolidated affiliates
(6
)
 
—

 
—

 
(6
)
Equity in income of financial services affiliates
(62
)
 
—

 
62

 
—

Dividends from financial services operations
8

 
—

 
(8
)
 
—

Dividends from non-consolidated affiliates
7

 
—

 
—

 
7

Change in intercompany receivables and payables
(106
)
 
106

 
—

 
—

Other, net
(100
)
 
(121
)
 
—

 
(221
)
Net cash provided by (used in) operating activities
10

 
107

 
(8
)
 
109

Cash flows from investing activities
 
 
 
 
 
 
 
Purchases of marketable securities
(1,011
)
 
—

 
—

 
(1,011
)
Sales of marketable securities
652

 
7

 
—

 
659

Maturities of marketable securities
28

 
—

 
—

 
28

Net change in restricted cash and cash equivalents
(2
)
 
(20
)
 
—

 
(22
)
Capital expenditures
(101
)
 
(1
)
 
—

 
(102
)
Purchase of equipment leased to others
(84
)
 
(53
)
 
—

 
(137
)
Other investing activities
29

 
14

 
—

 
43

Net cash used in investing activities
(489
)
 
(53
)
 
—

 
(542
)
Net cash provided by (used in) financing activities
389

 
(59
)
 
8

 
338

Effect of exchange rate changes on cash and cash equivalents
(5
)
 
2

 
—

 
(3
)
Decrease in cash and cash equivalents
(95
)
 
(3
)
 
—

 
(98
)
Cash and cash equivalents at beginning of the year
761

 
43

 
—

 
804

Cash and cash equivalents at end of the year
$
666

 
$
40

 
$
—

 
$
706


E-23


Condensed Statements of Cash Flows
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
For the Year Ended October 31, 2016
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Condensed Consolidated Statement of Cash Flows
Cash flows from operating activities
 
 
 
 
 
 
 
Net income (loss)
$
(65
)
 
$
67

 
$
(67
)
 
$
(65
)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
144

 
2

 
—

 
146

Depreciation of equipment leased to others
31

 
48

 
—

 
79

Amortization of debt issuance costs and discount
24

 
13

 
—

 
37

Deferred income taxes
(13
)
 
4

 
—

 
(9
)
Asset impairment charges
23

 
4

 
—

 
27

Loss on sales of investments and businesses, net
2

 
—

 
—

 
2

Equity in income of non-consolidated affiliates
(6
)
 
—

 
—

 
(6
)
Equity in income of financial services operations
(67
)
 
—

 
67

 
—

Dividends from financial services operations
220

 
—

 
(220
)
 
—

Dividends from non-consolidated affiliates
12

 
—

 
—

 
12

Change in intercompany receivables and payables
(74
)
 
74

 
—

 
—

Other, net
(175
)
 
219

 
—

 
44

Net cash provided by (used in) operating activities
56

 
431

 
(220
)
 
267

Cash flows from investing activities
 
 
 
 
 
 
 
Purchases of marketable securities
(485
)
 
—

 
—

 
(485
)
Sales of marketable securities
539

 
16

 
—

 
555

Maturities of marketable securities
43

 
—

 
—

 
43

Net change in restricted cash and cash equivalents
1

 
4

 
—

 
5

Capital expenditures
(114
)
 
(2
)
 
—

 
(116
)
Purchase of equipment leased to others
(20
)
 
(112
)
 
—

 
(132
)
Other investing activities
39

 
24

 
—

 
63

Net cash provided by (used in) investing activities
3

 
(70
)
 
—

 
(67
)
Net cash provided by (used in) financing activities
(203
)
 
(370
)
 
220

 
(353
)
Effect of exchange rate changes on cash and cash equivalents
28

 
17

 
—

 
45

Increase (decrease) in cash and cash equivalents
(116
)
 
8

 
—

 
(108
)
Cash and cash equivalents at beginning of the year
877

 
35

 
—

 
912

Cash and cash equivalents at end of the year
$
761

 
$
43

 
$
—

 
$
804


E-24


Condensed Statements of Cash Flows
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
For the Year Ended October 31, 2015
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Cash flows from operating activities
 
 
 
 
 
 
 
Net income (loss)
$
(151
)
 
$
71

 
$
(71
)
 
$
(151
)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
203

 
2

 
—

 
205

Depreciation of equipment leased to others
28

 
48

 
—

 
76

Amortization of debt issuance costs and discount
24

 
13

 
—

 
37

Deferred income taxes
(16
)
 
(2
)
 
—

 
(18
)
Asset impairment charges
25

 
5

 
—

 
30

Equity in income of non-consolidated affiliates
(6
)
 
—

 
—

 
(6
)
Equity in income of financial services operations
(71
)
 
—

 
71

 
—

Dividends from financial services operations
125

 
—

 
(125
)
 
—

Dividends from non-consolidated affiliates
12

 
—

 
—

 
12

Change in intercompany receivables and payables
(16
)
 
16

 
—

 
—

Other, net
(59
)
 
(80
)
 
—

 
(139
)
Net cash provided by (used in) operating activities
98

 
73

 
(125
)
 
46

Cash flows from investing activities
 
 
 
 
 
 
 
Purchases of marketable securities
(887
)
 
—

 
—

 
(887
)
Sales of marketable securities
1,244

 
3

 
—

 
1,247

Maturities of marketable securities
86

 
—

 
—

 
86

Net change in restricted cash and cash equivalents
(1
)
 
43

 
—

 
42

Capital expenditures
(111
)
 
(4
)
 
—

 
(115
)
Purchase of equipment leased to others
1

 
(84
)
 
—

 
(83
)
Acquisition of intangibles
(4
)
 
—

 
—

 
(4
)
Other investing activities
18

 
12

 
—

 
30

Net cash provided by (used in) investing activities
346

 
(30
)
 
—

 
316

Net cash provided by (used in) financing activities
63

 
(90
)
 
125

 
98

Effect of exchange rate changes on cash and cash equivalents
(70
)
 
25

 
—

 
(45
)
Increase (decrease) in cash and cash equivalents
437

 
(22
)
 
—

 
415

Cash and cash equivalents at beginning of the year
440

 
57

 
—

 
497

Cash and cash equivalents at end of the year
$
877

 
$
35

 
$
—

 
$
912




E-25