EX-99.1 8 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 with our financial services operations on a pre-tax equity basis. Our manufacturing operations, for this purpose, includes our Truck segment, Engine segment, Parts segment, and Corporate items. The manufacturing operations financial information represents non-GAAP financial measures. The reconciling difference between these non-GAAP financial measures and our GAAP financial statements in Item 1 to the accompanying condensed consolidated financial statements is our financial services operations, which is included on a pre-tax equity basis.

Condensed Statements of Operations

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

 

     Three Months Ended
July 31,
    Nine Months Ended
July 31,
 
     2008     2007     2008     2007  
(in millions)                         

Sales of manufactured products, net

   $ 3,879     $ 2,852     $ 10,592     $ 8,802  
                                  

Cost of products sold

     3,115       2,428       8,762       7,505  

Selling, general and administrative expense

     348       342       967       935  

Engineering and product development costs

     108       86       289       284  

Other expense, net

     27       31       116       191  
                                  

Total costs and expenses

     3,598       2,887       10,134       8,915  
                                  

Income (loss) before income taxes 

 

— Manufacturing operations

     281       (35 )     458       (113 )
 

— Financial services operations

     (1 )     40       (7 )     124  
                                  

Income before income taxes

     280       5       451       11  

Income tax expense

     (8 )     (9 )     (17 )     (28 )
                                  

Net income (loss)

   $ 272     $ (4 )   $ 434     $ (17 )
                                  

 

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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  
     July 31,
2008
    October 31,
2007
 
(in millions)             

Cash and cash equivalents

   $ 558     $ 716  

Marketable securities

     18       6  

Accounts receivables

     1,245       788  

Inventories

     1,489       1,380  

Investments in and advances to non-consolidated affiliates

     177       154  

Investments in and advances to financial services affiliates

     398       397  

Property and equipment, net

     1,849       1,980  

Goodwill and intangible assets, net

     651       639  

Other assets

     320       325  

Deferred taxes, net

     122       123  
                

Total assets

   $ 6,827     $ 6,508  
                

Accounts payable

   $ 2,116     $ 1,888  

Postretirement benefits liabilities

     1,203       1,310  

Debt—manufacturing operations

     1,884       2,028  

Other liabilities

     1,852       2,016  

Stockholders’ deficit

     (228 )     (734 )
                

Total liabilities and stockholders’ deficit

   $ 6,827     $ 6,508  
                

 

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Condensed Statements of Cash Activities

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

 

     Nine Months Ended
July 31,
 
     2008     2007  
(in millions)             

Cash flow from operating activities:

    

Net income (loss)

   $ 434     $ (17 )

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

    

Depreciation and amortization

     251       233  

Depreciation of equipment held for or under lease

     29       26  

Deferred taxes

     (5 )     20  

Equity in loss (income) of financial services operations

     7       (124 )

Equity in income of non-consolidated affiliates

     (63 )     (62 )

Dividends from financial services operations

     25       275  

Dividends from non-consolidated affiliates

     54       74  

Other, net

     (592 )     (605 )
                

Net cash provided by (used in) operating activities

     140       (180 )
                

Cash flow from investing activities:

    

Purchases of marketable securities

     (43 )     (178 )

Sales or maturities of marketable securities

     31       309  

Net change in restricted cash and cash equivalents

     (1 )      

Capital expenditures

     (139 )     (206 )

Purchase of equipment held for or under lease

     (11 )     (13 )

Acquisitions, net of cash acquired

           (7 )

Other investment activities

     20       30  
                

Net cash used in investing activities

     (143 )     (65 )
                

Net cash used in financing activities

     (164 )     (287 )

Effect of exchange rate changes on cash and cash equivalents

     9       56  
                

Decrease in cash and cash equivalents

     (158 )     (476 )

Cash and cash equivalents at beginning of the period

     716       1,078  
                

Cash and cash equivalents at end of the period

   $ 558     $ 602  
                

 

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