EX-99.1 10 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 Revenues and Expenses

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

 

         Three Months Ended
April 30,
    Six Months Ended
April 30,
 
         2008    2007     2008     2007  
(in millions)                            

Sales of manufactured products, net

   $ 3,853    $ 2,900     $ 6,713     $ 5,950  

Costs of products sold

     3,196      2,472       5,647       5,077  

Selling, general and administrative expenses

     326      319       619       593  

Engineering and product development costs

     99      95       181       198  

Other (income) expenses, net

     38      61       89       160  
                                 

Total costs and expenses

     3,659      2,947       6,536       6,028  
                                 

Income (loss) before income taxes

 

— Manufacturing operations

     194      (47 )     177       (78 )
 

— Financial services operations

     19      28       (6 )     84  
                                 

Income (loss) before income taxes

     213      (19 )     171       6  

Income tax benefit (expense)

     2      (6 )     (9 )     (19 )
                                 

Net income (loss)

   $ 215    $ (25 )   $ 162     $ (13 )
                                 

 

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Condensed Statements of Assets, Liabilities and Stockholders’ Deficit

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

 

     As of  
     April 30,
2008
    October 31,
2007
 
(in millions)             

Cash and cash equivalents

   $ 591     $ 716  

Marketable securities

     38       6  

Accounts receivables

     1,132       788  

Inventories

     1,316       1,380  

Investments in and advances to financial services affiliates

     368       397  

Investments in and advances to non-consolidated affiliates

     175       154  

Property and equipment, net

     1,884       1,980  

Goodwill and intangible assets, net

     632       639  

Other assets

     307       325  

Deferred taxes, net

     110       123  
                

Total assets

   $ 6,553     $ 6,508  
                

Accounts payable

   $ 2,137     $ 1,888  

Postretirement benefits liabilities

     1,218       1,310  

Debt—manufacturing operations

     1,913       2,028  

Other liabilities

     1,847       2,016  

Stockholders’ deficit

     (562 )     (734 )
                

Total liabilities and stockholders’ deficit

   $ 6,553     $ 6,508  
                

Condensed Statements of Cash Activities

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

 

     Six Months Ended
April 30,
 
     2008     2007  
(in millions)             

Cash flow from operating activities:

    

Net income (loss)

   $ 162     $ (13 )

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

    

Depreciation and amortization

     162       155  

Depreciation of equipment held for or under lease

     20       17  

Deferred taxes

     (2 )     24  

Equity in loss (income) of financial services operations

     6       (84 )

Equity in income of non-consolidated affiliates

     (45 )     (40 )

Dividends from financial services operations

     25       175  

Dividends from non-consolidated affiliates

     29       52  

Other, net

     (274 )     (549 )
                

Net cash provided by (used in) operating activities

     83       (263 )
                

Cash flow from investing activities:

Purchases of marketable securities

     (42 )     (148 )

Sales or maturities of marketable securities

     11       264  

Net change in restricted cash and cash equivalents

     5       (18 )

Capital expenditures

     (101 )     (137 )

Purchase of equipment held for or under lease

     (13 )     (8 )

Acquisitions, net of cash acquired

     —         (7 )

Other investment activities

     19       (7 )
                

Net cash used in investing activities

     (121 )     (61 )
                

Net cash used in financing activities

     (104 )     (218 )

Effect of exchange rate changes on cash and cash equivalents

     17       28  
                

Decrease in cash and cash equivalents

     (125 )     (514 )

Cash and cash equivalents at beginning of the period

     716       1,078  
                

Cash and cash equivalents at end of the period

   $ 591     $ 564  
                

 

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