EX-99.1 17 dex991.htm ADDITIONAL FINANCIAL INFORMATION (UNAUDITED) Additional Financial Information (Unaudited)

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 business and as such, includes certain non-GAAP financial measures.

Condensed Statements of Revenues and Expenses

Navistar International Corporation (with financial services operations on a pre-tax equity basis)

 

     For the years ended October 31  
     2007     2006     2005  
(in millions)                   

Sales of manufactured products, net

   $ 11,910     $   13,878     $   11,827  
                        

Costs of products sold

     10,131       11,703       10,250  

Selling, general and administrative expenses

     1,352       1,234       974  

Engineering and product development costs

     382       453       413  

Other expenses, net

     246       240       181  
                        

Total costs and expenses

       12,111       13,630       11,818  
                        

Income (loss) before income taxes — Manufacturing operations

     (201 )     248       9  

— Financial services operations

     128       147       136  
                        

Income (loss) before income taxes

     (73 )     395       145  

Income tax expense

     (47 )     (94 )     (6 )
                        

Net income (loss)

   $ (120 )   $ 301     $ 139  
                        

 

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Condensed Statements of Assets, Liabilities, and Stockholders’ Deficit

Navistar International Corporation (with financial services operations on a pre-tax equity basis)

 

     As of October 31  
     2007     2006  
(in millions)       

Cash and cash equivalents

   $ 716     $ 1,078  

Marketable securities

     6       136  

Accounts receivables

     788       756  

Inventories

     1,380       1,730  

Investments in and advances to financial services operations

     397       709  

Investments in and advances to non-consolidated affiliates

     154       207  

Property and equipment, net

     1,980       2,054  

Goodwill and intangible assets, net

     639       606  

Other assets

     325       273  

Deferred taxes, net

     123       98  
                

Total assets

   $   6,508     $   7,647  
                

Accounts payable

   $ 1,888     $ 2,371  

Postretirement benefits liabilities

     1,310       1,587  

Debt—manufacturing operations

     2,028       2,471  

Other liabilities

     2,016       2,332  

Stockholders’ deficit

     (734 )     (1,114 )
                

Total liabilities and stockholders’ deficit

   $ 6,508     $ 7,647  
                

 

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Condensed Statements of Cash Activities

Navistar International Corporation (with financial services operations on a pre-tax equity basis)

 

     For the years ended October 31  
     2007     2006     2005  
(in millions)             

Cash flow from operating activities:

      

Net income (loss)

   $ (120 )   $ 301     $ 139  

Adjustments to reconcile net income (loss) to cash provided by operating activities:

      

Depreciation and amortization

     312       317       271  

Depreciation of equipment held for or under lease

     40       34       23  

Deferred taxes

     37       (3 )     (67 )

Equity in income of financial services operations

     (128 )     (147 )     (136 )

Equity in income of non-consolidated affiliates

     (74 )     (99 )     (90 )

Dividends from financial services operations

     400       —         —    

Dividends from non-consolidated affiliates

     111       83       83  

Other, net

     (451 )     32       508  
                        

Net cash provided by operating activities

     127       518       731  
                        

Cash flow from investing activities:

      

Purchases of marketable securities

     (221 )     (179 )     (828 )

Sales or maturities of marketable securities

     351       134       918  

Net change in restricted cash and cash equivalents

     (10 )     1       (5 )

Capital expenditures

     (310 )     (227 )     (291 )

Purchase of equipment held for or under lease

     (26 )     (35 )     (62 )

Acquisitions, net of cash acquired

     (7 )     (54 )     (563 )

Other investment activities

     99       (19 )     21  
                        

Net cash used in investing activities

     (124 )     (379 )       (810 )
                        

Net cash provided by (used in) financing activities

     (453 )     140       272  

Effect of exchange rate changes on cash and cash equivalents

     88       23       36  
                        

Increase (decrease) in cash and cash equivalents

     (362 )     302       229  

Cash and cash equivalents at beginning of the year

       1,078       776       547  
                        

Cash and cash equivalents at end of the year

   $ 716     $   1,078     $ 776  
                        

 

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