EX-99.1 15 navex99110312020.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 GAAP. The reconciling differences between these non-GAAP financial measures and our 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 flows.
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, 2020
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
7,335

 
$
—

 
$
—

 
$
7,335

Finance revenues
—

 
217

 
(49
)
 
168

Sales and revenues, net
7,335

 
217

 
(49
)
 
7,503

Costs of products sold
6,221

 
—

 
—

 
6,221

Restructuring charges
2

 
—

 
—

 
2

Asset impairment charges
28

 
—

 
—

 
28

Selling, general and administrative expenses
925

 
105

 
(9
)
 
1,021

Engineering and product development costs
321

 
—

 
—

 
321

Interest expense
205

 
69

 
(6
)
 
268

Other expense (income), net
88

 
(22
)
 
(34
)
 
32

Total costs and expenses
7,790

 
152

 
(49
)
 
7,893

Equity in income of non-consolidated affiliates
2

 
—

 
—

 
2

Income before equity income from financial services operations and income taxes
(453
)
 
65

 
—

 
(388
)
Equity income from financial services operations
55

 
—

 
(55
)
 
—

Income (loss) before income taxes
(398
)
 
65

 
(55
)
 
(388
)
Income tax benefit (expense)
69

 
(10
)
 
—

 
59

Net income (loss)
(329
)
 
55

 
(55
)
 
(329
)
Less: Net income attributable to non-controlling interests
18

 
—

 
—

 
18

Net income (loss) attributable to Navistar International Corporation
$
(347
)
 
$
55

 
$
(55
)
 
$
(347
)

E-17


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, 2019
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
11,061

 
$
—

 
$
—

 
$
11,061

Finance revenues
—

 
297

 
(107
)
 
190

Sales and revenues, net
11,061

 
297

 
(107
)
 
11,251

Costs of products sold
9,245

 
—

 
—

 
9,245

Restructuring charges
12

 
—

 
—

 
12

Asset impairment charges
7

 
—

 
—

 
7

Selling, general and administrative expenses
840

 
100

 
(6
)
 
934

Engineering and product development costs
319

 
—

 
—

 
319

Interest expense
207

 
105

 
—

 
312

Other expense (income), net
296

 
(31
)
 
(101
)
 
164

Total costs and expenses
10,926

 
174

 
(107
)
 
10,993

Equity in income of non-consolidated affiliates
4

 
—

 
—

 
4

Income before equity income from financial services operations and income taxes
139

 
123

 
—

 
262

Equity income from financial services operations
99

 
—

 
(99
)
 
—

Income before income taxes
238

 
123

 
(99
)
 
262

Income tax benefit (expense)
5

 
(24
)
 
—

 
(19
)
Net income
243

 
99

 
(99
)
 
243

Less: Net income attributable to non-controlling interests
22

 
—

 
—

 
22

Net income attributable to Navistar International Corporation
$
221

 
$
99

 
$
(99
)
 
$
221


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, 2018
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
10,090

 
$
—

 
$
—

 
$
10,090

Finance revenues
—

 
257

 
(97
)
 
160

Sales and revenues, net
10,090

 
257

 
(97
)
 
10,250

Costs of products sold
8,317

 
—

 
—

 
8,317

Restructuring charges
(1
)
 
—

 
—

 
(1
)
Asset impairment charges
13

 
1

 
—

 
14

Selling, general and administrative expenses
737

 
93

 
(2
)
 
828

Engineering and product development costs
297

 
—

 
—

 
297

Interest expense
235

 
92

 
—

 
327

Other expense (income), net
160

 
(17
)
 
(95
)
 
48

Total costs and expenses
9,758

 
169

 
(97
)
 
9,830

Equity in income of non-consolidated affiliates
—

 
—

 
—

 
—

Income before equity income from financial services operations and income taxes
332

 
88

 
—

 
420

Equity income from financial services operations
71

 
—

 
(71
)
 
—

Income before income taxes
403

 
88

 
(71
)
 
420

Income tax expense
(35
)
 
(17
)
 
—

 
(52
)
Net income
368

 
71

 
(71
)
 
368

Less: Net Income attributable to non-controlling interests
28

 
—

 
—

 
28

Net income attributable to Navistar International Corporation
$
340

 
$
71

 
$
(71
)
 
$
340


E-19


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, 2020
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Balance Sheet
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,749

 
$
94

 
$
—

 
$
1,843

Restricted cash
44

 
86

 
—

 
130

Finance and other receivables, net
279

 
1,992

 
(369
)
 
1,902

Inventories
761

 
2

 
—

 
763

Goodwill
38

 
—

 
—

 
38

Property and equipment, net
940

 
358

 
—

 
1,298

Operating lease right of use assets
117

 
2

 
—

 
119

Investments in and advances to financial services operations
668

 
—

 
(668
)
 
—

Investments in non-consolidated affiliates
31

 
—

 
—

 
31

Deferred taxes, net
113

 
4

 
—

 
117

Other assets
374

 
22

 
—

 
396

Total assets
$
5,114

 
$
2,560

 
$
(1,037
)
 
$
6,637

Liabilities and stockholders' equity (deficit)
 
 
 
 
 
 
 
Accounts payable
$
1,637

 
$
10

 
$
(369
)
 
$
1,278

Debt
3,496

 
1,834

 
—

 
5,330

Postretirement benefits liabilities
1,705

 
—

 
—

 
1,705

Other liabilities
2,098

 
48

 
—

 
2,146

Total liabilities
8,936

 
1,892

 
(369
)
 
10,459

Stockholders' equity attributable to non-controlling interest
4

 
—

 
—

 
4

Stockholders' equity (deficit) attributable to controlling interest
(3,826
)
 
668

 
(668
)
 
(3,826
)
Total liabilities and stockholders' equity (deficit)
$
5,114

 
$
2,560

 
$
(1,037
)
 
$
6,637


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, 2019
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Balance Sheet
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,328

 
$
42

 
$
—

 
$
1,370

Restricted cash
50

 
137

 
—

 
187

Finance and other receivables, net
348

 
2,423

 
(226
)
 
2,545

Inventories
905

 
6

 
—

 
911

Goodwill
38

 
—

 
—

 
38

Property and equipment, net
942

 
367

 
—

 
1,309

Investments in and advances to financial services operations
668

 
—

 
(668
)
 
—

Investments in non-consolidated affiliates
31

 
—

 
—

 
31

Deferred taxes, net
115

 
2

 
—

 
117

Other assets
386

 
23

 
—

 
409

Total assets
$
4,811

 
$
3,000

 
$
(894
)
 
$
6,917

Liabilities and stockholders' equity (deficit)
 
 
 
 
 
 
 
Accounts payable
$
1,554

 
$
13

 
$
(226
)
 
$
1,341

Debt
2,932

 
2,256

 
—

 
5,188

Postretirement benefits liabilities
2,103

 
—

 
—

 
2,103

Other liabilities
1,945

 
63

 
—

 
2,008

Total liabilities
8,534

 
2,332

 
(226
)
 
10,640

Stockholders' equity attributable to non-controlling interest
3

 
—

 
—

 
3

Stockholders' equity (deficit) attributable to controlling interest
(3,726
)
 
668

 
(668
)
 
(3,726
)
Total liabilities and stockholders' equity (deficit)
$
4,811

 
$
3,000

 
$
(894
)
 
$
6,917


E-21


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, 2020
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Condensed Consolidated Statement of Cash Flows
Cash flows from operating activities
 
 
 
 
 
 
 
Net income (loss)
$
(329
)
 
$
55

 
$
(55
)
 
$
(329
)
Adjustments to reconcile net income (loss) to cash provided by operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
135

 
1

 
—

 
136

Depreciation of equipment leased to others
(1
)
 
64

 
—

 
63

Amortization of debt issuance costs and discount
6

 
8

 
—

 
14

Deferred income taxes
(76
)
 
(4
)
 
—

 
(80
)
Asset impairment charges
28

 
—

 
—

 
28

Equity in income of non-consolidated affiliates
(2
)
 
—

 
—

 
(2
)
Equity in income of financial services affiliates
(55
)
 
—

 
55

 
—

Dividends from financial services operations
30

 
—

 
(30
)
 
—

Change in intercompany receivables and payables
61

 
(61
)
 
—

 
—

Other, net
133

 
511

 
—

 
644

Net cash provided by (used in) operating activities
(70
)
 
574

 
(30
)
 
474

Cash flows from investing activities
 
 
 
 
 
 
 
Capital expenditures
(148
)
 
—

 
—

 
(148
)
Purchase of equipment leased to others
(2
)
 
(95
)
 
—

 
(97
)
Other investing activities
18

 
10

 
—

 
28

Net cash used in investing activities
(132
)
 
(85
)
 
—

 
(217
)
Net cash provided by (used in) financing activities
637

 
(486
)
 
30

 
181

Effect of exchange rate changes on cash, cash equivalents and restricted cash
(20
)
 
(2
)
 
—

 
(22
)
Increase in cash, cash equivalents and restricted cash
415

 
1

 
—

 
416

Cash, cash equivalents and restricted cash at beginning of the year
1,378

 
179

 
—

 
1,557

Cash, cash equivalents and restricted cash at end of the year
$
1,793

 
$
180

 
$
—

 
$
1,973


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, 2019
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Condensed Consolidated Statement of Cash Flows
Cash flows from operating activities
 
 
 
 
 
 
 
Net income
$
243

 
$
99

 
$
(99
)
 
$
243

Adjustments to reconcile net income to cash provided by (used in) operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
131

 
1

 
—

 
132

Depreciation of equipment leased to others
(2
)
 
63

 
—

 
61

Amortization of debt issuance costs and discount
11

 
8

 
—

 
19

Deferred income taxes
(32
)
 
1

 
—

 
(31
)
Asset impairment charges
7

 
—

 
—

 
7

Gain on sales of investments and businesses, net
(56
)
 
—

 
—

 
(56
)
Equity in income of non-consolidated affiliates
(4
)
 
—

 
—

 
(4
)
Equity in income of financial services affiliates
(99
)
 
—

 
99

 
—

Dividends from financial services operations
20

 
—

 
(20
)
 
—

Dividends from non-consolidated affiliates
2

 
—

 
—

 
2

Change in intercompany receivables and payables
53

 
(53
)
 
—

 
—

Other, net
121

 
(44
)
 
—

 
77

Net cash provided by operating activities
395

 
75

 
(20
)
 
450

Cash flows from investing activities
 
 
 
 
 
 
 
Maturities of marketable securities
102

 
—

 
—

 
102

Capital expenditures
(132
)
 
(2
)
 
—

 
(134
)
Purchase of equipment leased to others
(3
)
 
(149
)
 
—

 
(152
)
Other investing activities
103

 
13

 
—

 
116

Net cash provided by (used in) investing activities
70

 
(138
)
 
—

 
(68
)
Net cash provided by (used in) financing activities
(373
)
 
95

 
20

 
(258
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(9
)
 
(3
)
 
—

 
(12
)
Increase in cash, cash equivalents and restricted cash
83

 
29

 
—

 
112

Cash, cash equivalents and restricted cash at beginning of the year
1,295

 
150

 
—

 
1,445

Cash, cash equivalents and restricted cash at end of the year
$
1,378

 
$
179

 
$
—

 
$
1,557


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, 2018
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Cash flows from operating activities
 
 
 
 
 
 
 
Net income
$
368

 
$
71

 
$
(71
)
 
$
368

Adjustments to reconcile net income to cash provided by operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
139

 
1

 
—

 
140

Depreciation of equipment leased to others
17

 
54

 
—

 
71

Amortization of debt issuance costs and discount
22

 
9

 
—

 
31

Deferred income taxes
6

 
(2
)
 
—

 
4

Asset impairment charges
13

 
1

 
—

 
14

Equity in income of financial services operations
(71
)
 
—

 
71

 
—

Dividends from non-consolidated affiliates
5

 
—

 
—

 
5

Change in intercompany receivables and payables
(84
)
 
84

 
—

 
—

Other, net
2

 
(368
)
 
—

 
(366
)
Net cash provided by (used in) operating activities
417

 
(150
)
 
—

 
267

Cash flows from investing activities
 
 
 
 
 
 
 
Purchases of marketable securities
(251
)
 
—

 
—

 
(251
)
Sales of marketable securities
460

 
—

 
—

 
460

Maturities of marketable securities
60

 
—

 
—

 
60

Capital expenditures
(112
)
 
(1
)
 
—

 
(113
)
Purchase of equipment leased to others
(93
)
 
(139
)
 
—

 
(232
)
Other investing activities
2

 
8

 
—

 
10

Net cash provided by (used in) investing activities
66

 
(132
)
 
—

 
(66
)
Net cash provided by financing activities
137

 
277

 
—

 
414

Effect of exchange rate changes on cash, cash equivalents and restricted cash
(15
)
 
5

 
—

 
(10
)
Increase in cash, cash equivalents and restricted cash
605

 
—

 
—

 
605

Cash, cash equivalents and restricted cash at beginning of the year
690

 
150

 
—

 
840

Cash, cash equivalents and restricted cash at end of the year
$
1,295

 
$
150

 
$
—

 
$
1,445


E-24