EX-99.1 7 navex9911312019.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 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 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 Three Months Ended January 31, 2019
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
2,386

 
$
—

 
$
—

 
$
2,386

Finance revenues
—

 
74

 
(27
)
 
47

Sales and revenues, net
2,386

 
74

 
(27
)
 
2,433

Costs of products sold
1,979

 
—

 
—

 
1,979

Restructuring charges
—

 
—

 
—

 
—

Asset impairment charges
2

 
—

 
—

 
2

Selling, general and administrative expenses
163

 
24

 
(1
)
 
186

Engineering and product development costs
86

 
—

 
—

 
86

Interest expense
56

 
29

 
—

 
85

Other expense (income), net
133

 
(10
)
 
(26
)
 
97

Total costs and expenses
2,419

 
43

 
(27
)
 
2,435

Income (loss) before equity income from financial services operations and income taxes
(33
)
 
31

 
—

 
(2
)
Equity income from financial services operations
24

 
—

 
(24
)
 
—

Income (loss) before income tax
(9
)
 
31

 
(24
)
 
(2
)
Income tax benefit (expense)
26

 
(7
)
 
—

 
19

Net income (loss)
17

 
24

 
(24
)
 
17

Less: Net income attributable to non-controlling interests
6

 
—

 
—

 
6

Net income (loss) attributable to Navistar International Corporation
$
11

 
$
24

 
$
(24
)
 
$
11





E-6


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, 2018
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
1,867

 
$
—

 
$
—

 
$
1,867

Finance revenues
—

 
59

 
(21
)
 
38

Sales and revenues, net
1,867

 
59

 
(21
)
 
1,905

Costs of products sold
1,532

 
—

 
—

 
1,532

Restructuring charges
(3
)
 
—

 
—

 
(3
)
Asset impairment charges
2

 
—

 
—

 
2

Selling, general and administrative expenses
171

 
20

 
—

 
191

Engineering and product development costs
75

 
—

 
—

 
75

Interest expense
58

 
21

 
—

 
79

Other expense (income), net
103

 
(2
)
 
(21
)
 
80

Total costs and expenses
1,938

 
39

 
(21
)
 
1,956

Income (loss) before equity income from financial services operations and income taxes
(71
)
 
20

 
—

 
(51
)
Equity income from financial services operations
16

 
—

 
(16
)
 
—

Income (loss) before income tax
(55
)
 
20

 
(16
)
 
(51
)
Income tax expense
(11
)
 
(4
)
 
—

 
(15
)
Net income (loss)
(66
)
 
16

 
(16
)
 
(66
)
Less: Net income attributable to non-controlling interests
7

 
—

 
—

 
7

Net income attributable to Navistar International Corporation
$
(73
)
 
$
16

 
$
(16
)
 
$
(73
)


E-7


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, 2019
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Balance Sheet
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,151

 
$
50

 
$
—

 
$
1,201

Marketable securities
41

 
—

 
—

 
41

Restricted cash and cash equivalents
27

 
121

 
—

 
148

Finance and other receivables, net
461

 
2,343

 
(254
)
 
2,550

Inventories
1,206

 
5

 
—

 
1,211

Goodwill
38

 
—

 
—

 
38

Property and equipment, net
945

 
330

 
—

 
1,275

Investments in and advances to financial services operations
614

 
—

 
(614
)
 
—

Investments in non-consolidated affiliates
32

 
—

 
—

 
32

Deferred taxes, net
118

 
5

 
—

 
123

Other assets
400

 
18

 
—

 
418

Total assets
$
5,033

 
$
2,872

 
$
(868
)
 
$
7,037

Liabilities and stockholders' equity (deficit)
 
 
 
 
 
 
 
Accounts payable
$
1,719

 
$
19

 
$
(254
)
 
$
1,484

Debt
3,343

 
2,151

 
—

 
5,494

Postretirement benefits liabilities
1,961

 
—

 
—

 
1,961

Other liabilities
1,823

 
88

 
—

 
1,911

Total liabilities
8,846

 
2,258

 
(254
)
 
10,850

Stockholders' equity attributable to non-controlling interest
3

 
—

 
—

 
3

Stockholders' equity (deficit) attributable to controlling interest
(3,816
)
 
614

 
(614
)
 
(3,816
)
Total liabilities and stockholders' equity (deficit)
$
5,033

 
$
2,872

 
$
(868
)
 
$
7,037


E-8


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, 2018
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Balance Sheet
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,261

 
$
59

 
$
—

 
$
1,320

Marketable securities
101

 
—

 
—

 
101

Restricted cash and cash equivalents
34

 
91

 
—

 
125

Finance and other receivables, net
505

 
2,259

 
(101
)
 
2,663

Inventories
1,102

 
8

 
—

 
1,110

Goodwill
38

 
—

 
—

 
38

Property and equipment, net
1,060

 
310

 
—

 
1,370

Investments in and advances to financial services operations
581

 
—

 
(581
)
 
—

Investments in non-consolidated affiliates
50

 
—

 
—

 
50

Deferred taxes, net
117

 
4

 
—

 
121

Other assets
314

 
18

 
—

 
332

Total assets
$
5,163

 
$
2,749

 
$
(682
)
 
$
7,230

Liabilities and stockholders' equity (deficit)
 
 
 
 
 
 
 
Accounts payable
$
1,664

 
$
43

 
$
(101
)
 
$
1,606

Debt
3,426

 
2,041

 
—

 
5,467

Postretirement benefits liabilities
2,097

 
—

 
—

 
2,097

Other liabilities
1,902

 
84

 
—

 
1,986

Total liabilities
9,089

 
2,168

 
(101
)
 
11,156

Stockholders' equity attributable to non-controlling interest
5

 
—

 
—

 
5

Stockholders' equity (deficit) attributable to controlling interest
(3,931
)
 
581

 
(581
)
 
(3,931
)
Total liabilities and stockholders' equity (deficit)
$
5,163

 
$
2,749

 
$
(682
)
 
$
7,230


E-9


Condensed Statements of Cash Flows
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
For the Three Months Ended January 31, 2019
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Condensed Consolidated Statement of Cash Flows
Cash flows from operating activities
 
 
 
 
 
 
 
Net income
$
17

 
$
24

 
$
(24
)
 
$
17

Adjustments to reconcile net income to cash used in operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
33

 
—

 
—

 
33

Depreciation of equipment leased to others
(1
)
 
16

 
—

 
15

Amortization of debt issuance costs and discount
4

 
2

 
—

 
6

Deferred income taxes
(41
)
 
—

 
—

 
(41
)
Asset impairment charges
2

 
—

 
—

 
2

Gain on sales of investments and businesses, net
(59
)
 
—

 
—

 
(59
)
Equity in income of financial services affiliates
(24
)
 
—

 
24

 
—

Dividends from non-consolidated affiliates
—

 
—

 
—

 
—

Change in intercompany receivables and payables
94

 
(94
)
 
—

 
—

Other, net
(290
)
 
77

 
—

 
(213
)
Net cash provided by (used in) operating activities
(265
)
 
25

 
—

 
(240
)
Cash flows from investing activities
 
 
 
 
 
 
 
Purchases of marketable securities
—

 
—

 
—

 
—

Sales of marketable securities
—

 
—

 
—

 
—

Maturities of marketable securities
61

 
—

 
—

 
61

Capital expenditures
(43
)
 
(1
)
 
—

 
(44
)
Purchase of equipment leased to others
(6
)
 
(36
)
 
—

 
(42
)
Other investing activities
96

 
3

 
—

 
99

Net cash provided by (used in) investing activities
108

 
(34
)
 
—

 
74

Net cash provided by financing activities
39

 
34

 
—

 
73

Effect of exchange rate changes on cash, cash equivalents and restricted cash
1

 
(4
)
 
—

 
(3
)
Increase (decrease) in cash, cash equivalents and restricted cash
(117
)
 
21

 
—

 
(96
)
Cash, cash equivalents and restricted cash at beginning of the period
1,295

 
150

 
—

 
1,445

Cash, cash equivalents and restricted cash at end of the period
$
1,178

 
$
171

 
$
—

 
$
1,349


E-10


Condensed Statements of Cash Flows
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
For the Three Months Ended January 31, 2018
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Condensed Consolidated Statement of Cash Flows
Cash flows from operating activities
 
 
 
 
 
 
 
Net income (loss)
$
(66
)
 
$
16

 
$
(16
)
 
$
(66
)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
37

 
—

 
—

 
37

Depreciation of equipment leased to others
5

 
13

 
—

 
18

Amortization of debt issuance costs and discount
5

 
3

 
—

 
8

Deferred income taxes
7

 
(1
)
 
—

 
6

Asset impairment charges
2

 
—

 
—

 
2

Equity in income of financial services affiliates
(16
)
 
—

 
16

 
—

Dividends from non-consolidated affiliates
3

 
—

 
—

 
3

Change in other intercompany receivables and payables
(1
)
 
1

 
—

 
—

Other, net
(213
)
 
129

 
—

 
(84
)
Net cash provided by (used in) operating activities
(237
)
 
161

 
—

 
(76
)
Cash flows from investing activities
 
 
 
 
 
 
 
Purchases of marketable securities
(61
)
 
—

 
—

 
(61
)
Sales of marketable securities
150

 
—

 
—

 
150

Maturities of marketable securities
5

 
—

 
—

 
5

Capital expenditures
(30
)
 
—

 
—

 
(30
)
Purchase of equipment leased to others
(19
)
 
(33
)
 
—

 
(52
)
Other investing activities
—

 
3

 
—

 
3

Net cash provided by investing activities
45

 
(30
)
 
—

 
15

Net cash provided by (used in) financing activities
198

 
(192
)
 
—

 
6

Effect of exchange rate changes on cash, cash equivalents and restricted cash
5

 
(3
)
 
—

 
2

Increase (decrease) in cash, cash equivalents and restricted cash
11

 
(64
)
 
—

 
(53
)
Cash, cash equivalents and restricted cash at beginning of the period
690

 
150

 
—

 
840

Cash, cash equivalents and restricted cash at end of the period
$
701

 
$
86

 
$
—

 
$
787


E-11