EX-99.1 8 dex991.htm ADDITIONAL FINANCIAL INFORMATION Additional Financial Information

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 Operations

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

 

     Three Months
Ended

January 31,
 
     2008     2007  
(in millions)       

Sales of manufactured products, net

   $ 2,860     $ 3,050  
                

Costs of products sold

     2,451       2,605  

Selling, general and administrative expenses

     293       274  

Engineering and product development costs

     82       103  

Other expenses, net

     51       99  
                

Total costs and expenses

     2,877       3,081  
                

Income (loss) before income taxes—Manufacturing operations

     (17 )     (31 )

—Financial services operations

     (25 )     56  
                

Income (loss) before income taxes

     (42 )     25  

Income tax expense

     (11 )     (13 )
                

Net income (loss)

   $ (53 )   $ 12  
                

 

E-7


Condensed Statements of Assets, Liabilities and Stockholders’ Deficit

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

 

     As of  
     January 31,
2008
    October 31,
2007
 
(in millions)       

Cash and cash equivalents

   $ 512     $ 716  

Marketable securities

     21       6  

Accounts receivables

     640       788  

Inventories

     1,460       1,380  

Investments in and advances to financial services affiliates

     363       397  

Investments in and advances to non-consolidated affiliates

     168       154  

Property and equipment, net

     1,908       1,980  

Goodwill and intangible assets, net

     627       639  

Other assets

     286       325  

Deferred taxes, net

     112       123  
                

Total assets

   $ 6,097     $ 6,508  
                

Accounts payable

   $ 1,875     $ 1,888  

Postretirement benefits liabilities

     1,241       1,310  

Debt—manufacturing operations

     1,945       2,028  

Other liabilities

     1,838       2,016  

Stockholders’ deficit

     (802 )     (734 )
                

Total liabilities and stockholders’ deficit

   $ 6,097     $ 6,508  
                

 

E-8


Condensed Statements of Cash Activities

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

 

     Three Months
Ended

January 31,
 
     2008     2007  
(in millions)       

Cash flow from operating activities:

    

Net income (loss)

   $ (53 )   $ 12  

Adjustments to reconcile net income (loss) to cash used in operating activities:

    

Depreciation and amortization

     77       78  

Depreciation of equipment held for or under lease

     10       10  

Deferred taxes

     11       26  

Equity in loss (income) of financial services operations

     25       (56 )

Equity in income of non-consolidated affiliates

     (24 )     (22 )

Dividends from financial services operations

     15       —    

Dividends from non-consolidated affiliates

     12       28  

Other, net

     (163 )     (558 )
                

Net cash used in operating activities

     (90 )     (482 )
                

Cash flow from investing activities:

    

Purchases of marketable securities

     (25 )     (127 )

Sales or maturities of marketable securities

     10       260  

Net change in restricted cash and cash equivalents

     2       (25 )

Capital expenditures

     (36 )     (93 )

Purchase of equipment held for or under lease

     (4 )     (6 )

Acquisitions, net of cash acquired

     —         (7 )

Other investment activities

     20       (3 )
                

Net cash used in investing activities

     (33 )     (1 )
                

Net cash used in financing activities

     (78 )     (281 )

Effect of exchange rate changes on cash and cash equivalents

     (3 )     4  
                

Decrease in cash and cash equivalents

     (204 )     (760 )

Cash and cash equivalents at beginning of the period

     716       1,078  
                

Cash and cash equivalents at end of the period

   $ 512     $ 318  
                

 

E-9