EX-99.1 15 navex991103111.htm ADDITIONAL FINANCIAL INFORMATION (UNAUDITED) NAV EX. 99.1 10.31.11


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 an after-tax equity basis. Our manufacturing operations, for this purpose, include our Truck segment, Engine segment, Parts segment, and Corporate items. The manufacturing operations financial information represents non-GAAP financial measures. The reconciling differences between these non-GAAP financial measures and our GAAP condensed consolidated financial statements in Item 1, 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, redeemable equity securities, and stockholders' deficit, the intercompany debt is reflected as accounts payable. The change in the intercompany debt is reflected in the net cash provided by operating activities in the condensed statements of cash activities.

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 Ended October 31, 2011
 
 
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
(in millions)
 


 


 


 


Sales of manufactured products
 
$
13,758

 
$

 
$

 
$
13,758

Finance revenues
 

 
290

 
(90
)
 
200

Sales and revenues, net
 
13,758

 
290

 
(90
)
 
13,958

Costs of products sold
 
11,262

 

 

 
11,262

Restructuring charges
 
91

 
1

 

 
92

Impairment of property and equipment and intangible assets
 
64

 

 

 
64

Selling, general and administrative expenses
 
1,360

 
78

 
(4
)
 
1,434

Engineering and product development costs
 
532

 

 

 
532

Interest expense
 
148

 
109

 
(10
)
 
247

Other expenses (income), net
 
38

 
(26
)
 
(76
)
 
(64
)
Total costs and expenses
 
13,495

 
162

 
(90
)
 
13,567

Equity in loss of non-consolidated affiliates
 
(71
)
 

 

 
(71
)
Income before income taxes and equity income from financial services operations
 
192

 
128

 

 
320

Equity income from financial services operations
 
80

 

 
(80
)
 

Income before income taxes
 
272

 
128

 
(80
)
 
320

Income tax benefit (expense)
 
1,506

 
(48
)
 

 
1,458

Net income
 
1,778

 
80

 
(80
)
 
1,778

Less: Income attributable to non-controlling interests
 
55

 

 

 
55

Net income attributable to Navistar International Corporation
 
$
1,723

 
$
80

 
$
(80
)
 
$
1,723











E-19



Condensed Statement 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, 2010 (Revised)(A)
 
 
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
(in millions)
 
 
 
 
 
 
 
 
Sales of manufactured products
 
$
11,926

 
$

 
$

 
$
11,926

Finance revenues
 

 
309

 
(90
)
 
219

Sales and revenues, net
 
11,926

 
309

 
(90
)
 
12,145

Costs of products sold
 
9,741

 

 

 
9,741

Restructuring charges (benefit)
 
(19
)
 
4

 

 
(15
)
Impairment of property and equipment and intangible assets
 

 

 

 

Selling, general and administrative expenses
 
1,293

 
119

 
(6
)
 
1,406

Engineering and product development costs
 
464

 

 

 
464

Interest expense
 
154

 
113

 
(14
)
 
253

Other expenses (income), net
 
48

 
(22
)
 
(70
)
 
(44
)
Total costs and expenses
 
11,681

 
214

 
(90
)
 
11,805

Equity in loss of non-consolidated affiliates
 
(50
)
 

 

 
(50
)
Income before income taxes and equity income from financial services operations
 
195

 
95

 

 
290

Equity income from financial services operations
 
64

 

 
(64
)
 

Income before income taxes
 
259

 
95

 
(64
)
 
290

Income tax benefit (expense)
 
8

 
(31
)
 

 
(23
)
Net income
 
267

 
64

 
(64
)
 
267

Less: Income attributable to non-controlling interests
 
44

 

 

 
44

Net income (loss) attributable to Navistar International Corporation
 
$
223

 
$
64

 
$
(64
)
 
$
223

_________________
(A)
Effective with the fourth quarter of 2011, the Company presents manufacturing operations with financial services operations on an after-tax equity basis. Previously, financial services was presented on a pre-tax equity basis. Prior year amounts have been reclassified to conform to the 2011 presentation.

E-20



Condensed Statement 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, 2009 (Revised)(A)
 
 
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
(in millions)
 
 
 
 
 
 
 
 
Sales of manufactured products
 
$
11,300

 
$

 
$

 
$
11,300

Finance revenues
 

 
348

 
(79
)
 
269

Sales and revenues, net
 
11,300

 
348

 
(79
)
 
11,569

Costs of products sold
 
9,366

 

 

 
9,366

Restructuring charges
 
59

 

 

 
59

Impairment of property and equipment
 
31

 

 

 
31

Selling, general and administrative expenses
 
1,218

 
130

 
(4
)
 
1,344

Engineering and product development costs
 
433

 

 

 
433

Interest expense
 
99

 
162

 
(10
)
 
251

Other expenses (income), net
 
(179
)
 
16

 
(65
)
 
(228
)
Total costs and expenses
 
11,027

 
308

 
(79
)
 
11,256

Equity in income of non-consolidated affiliates
 
46

 

 

 
46

Income before income taxes, extraordinary gain and equity income from financial services operations
 
319

 
40

 

 
359

Equity income from financial services operations
 
25

 

 
(25
)
 

Income before income taxes and extraordinary gain
 
344

 
40

 
(25
)
 
359

Income tax benefit (expense)
 
(22
)
 
(15
)
 

 
(37
)
Income before extraordinary gain
 
322

 
25

 
(25
)
 
322

Extraordinary gain, net of tax
 
23

 

 

 
23

Net income
 
345

 
25

 
(25
)
 
345

Less: Income attributable to non-controlling interests
 
25

 

 

 
25

Net income (loss) attributable to Navistar International Corporation
 
$
320

 
$
25

 
$
(25
)
 
$
320

_________________
(A)
Effective with the fourth quarter of 2011, the Company presents manufacturing operations with financial services operations on an after-tax equity basis. Previously, financial services was presented on a pre-tax equity basis. Prior year amounts have been reclassified to conform to the 2011 presentation.





E-21



Condensed Statements of Assets, Liabilities, and Stockholders' Deficit
Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis)
 
 
As of October 31, 2011 
 
 
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Balance Sheet
(in millions)
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
488

 
$
51

 
$

 
$
539

Marketable securities
 
698

 
20

 

 
718

Restricted cash and cash equivalents
 
29

 
298

 

 
327

Finance and other receivables, net
 
1,341

 
3,007

 
(94
)
 
4,254

Inventories
 
1,704

 
10

 

 
1,714

Goodwill
 
319

 

 

 
319

Property and equipment, net
 
1,433

 
137

 

 
1,570

Investments in and advances to financial services operations
 
564

 

 
(564
)
 

Investments in non-consolidated affiliates
 
60

 

 

 
60

Deferred taxes, net
 
2,031

 
26

 

 
2,057

Other assets
 
705

 
28

 

 
733

Total Assets
 
$
9,372

 
$
3,577

 
$
(658
)
 
$
12,291

Liabilities and Stockholders' Equity (Deficit)
 
 
 
 
 
 
 
 
Accounts payable
 
$
2,194

 
$
22

 
$
(94
)
 
$
2,122

Debt
 
1,980

 
2,876

 

 
4,856

Postretirement benefits liabilities
 
3,262

 
54

 

 
3,316

Other liabilities
 
1,908

 
61

 

 
1,969

Total Liabilities
 
9,344

 
3,013

 
(94
)
 
12,263

Redeemable equity securities
 
5

 

 

 
5

Stockholders' equity attributable to non-controlling interest
 
50

 

 

 
50

Stockholders' equity (deficit) attributable to controlling interest
 
(27
)
 
564

 
(564
)
 
(27
)
Total Liabilities and Stockholders' Equity (Deficit)
 
$
9,372

 
$
3,577

 
$
(658
)
 
$
12,291


E-22



Condensed Statements of Assets, Liabilities, and Stockholders' Deficit
Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis)
 
 
As of October 31, 2010 (Revised)(A)
 
 
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Balance Sheet
(in millions)
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
534

 
$
51

 
$

 
$
585

Marketable securities
 
566

 
20

 

 
586

Restricted cash and cash equivalents
 
29

 
151

 

 
180

Finance and other receivables, net
 
1,030

 
3,084

 
(168
)
 
3,946

Inventories
 
1,556

 
12

 

 
1,568

Goodwill
 
324

 

 

 
324

Property and equipment, net
 
1,329

 
113

 

 
1,442

Investments in and advances to financial services operations
 
502

 

 
(502
)
 

Investments in non-consolidated affiliates
 
103

 

 

 
103

Deferred taxes, net
 
109

 
37

 

 
146

Other assets
 
821

 
29

 

 
850

Total Assets
 
$
6,903

 
$
3,497

 
$
(670
)
 
$
9,730

Liabilities and Stockholders' Equity (Deficit)
 
 
 
 
 
 
 
 
Accounts payable
 
$
1,974

 
$
21

 
$
(168
)
 
$
1,827

Debt
 
1,985

 
2,885

 

 
4,870

Postretirement benefits liabilities
 
2,145

 
34

 

 
2,179

Other liabilities
 
1,723

 
55

 

 
1,778

Total Liabilities
 
7,827

 
2,995

 
(168
)
 
10,654

Redeemable equity securities
 
8

 

 

 
8

Stockholders' equity attributable to non-controlling interest
 
49

 

 

 
49

Stockholders' equity (deficit) attributable to controlling interest
 
(981
)
 
502

 
(502
)
 
(981
)
Total Liabilities and Stockholders' Equity (Deficit)
 
$
6,903

 
$
3,497

 
$
(670
)
 
$
9,730

_________________
(A)
Effective with the fourth quarter of 2011, the Company presents manufacturing operations with financial services operations on an after-tax equity basis. Previously, financial services was presented on a pre-tax equity basis. Prior year amounts have been reclassified to conform to the 2011 presentation.


E-23



Condensed Statement of Cash Activity
Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis)
 
 
For the Year Ended October 31, 2011
 
 
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Condensed Consolidated Statement of Cash Flows
(in millions)
 
 
 
 
 
 
 
 
Cash flows from operating activities
 
 
 
 
 
 
 
 
Net income
 
$
1,778

 
$
80

 
$
(80
)
 
$
1,778

Adjustments to reconcile net income to cash provided by operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
286

 
4

 

 
290

Depreciation of equipment leased to others
 
14

 
24

 

 
38

Amortization of debt issuance costs and discount
 
28

 
16

 

 
44

Deferred income taxes
 
(1,524
)
 
11

 

 
(1,513
)
Impairment of property and equipment and intangible assets
 
75

 

 

 
75

Equity in loss of non-consolidated affiliates
 
71

 

 

 
71

Equity in income of financial services affiliates
 
(80
)
 

 
80

 

Dividends from non-consolidated affiliates
 
4

 

 

 
4

Change in intercompany receivables and payables
 
(73
)
 
73

 

 

Other, net
 
101

 
(8
)
 

 
93

Net cash provided by (used in) operating activities
 
680

 
200

 

 
880

Cash flows from investing activities
 
 
 
 
 
 
 


Purchases of marketable securities
 
(1,562
)
 

 

 
(1,562
)
Sales or maturities of marketable securities
 
1,430

 

 

 
1,430

Net change in restricted cash and cash equivalents
 

 
(147
)
 

 
(147
)
Capital expenditures
 
(427
)
 
(2
)
 

 
(429
)
Purchase of equipment leased to others
 
(4
)
 
(67
)
 

 
(71
)
Acquisition of intangibles
 
(26
)
 

 

 
(26
)
Business acquisitions
 
12

 

 

 
12

Other investing activities
 
(40
)
 
10

 

 
(30
)
Net cash used in investing activities
 
(617
)
 
(206
)
 

 
(823
)
Net cash provided by (used in) financing activities
 
(106
)
 
6

 

 
(100
)
Effect of exchange rate changes on cash and cash equivalents
 
(3
)
 

 

 
(3
)
Increase (decrease) in cash and cash equivalents
 
(46
)
 

 

 
(46
)
Cash and cash equivalents at beginning of the year
 
534

 
51

 

 
585

Cash and cash equivalents at end of the year
 
$
488

 
$
51

 
$

 
$
539



E-24



Condensed Statement of Cash Activity
Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis)
 
 
For the Year Ended October 31, 2010 (Revised)(A)
 
 
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Condensed Consolidated Statement of Cash Flows
(in millions)
 
 
 
 
 
 
 
 
Cash flows from operating activities
 
 
 
 
 
 
 
 
Net income
 
$
267

 
$
64

 
$
(64
)
 
$
267

Adjustments to reconcile net income to cash provided by operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
261

 
4

 

 
265

Depreciation of equipment leased to others
 
27

 
24

 

 
51

Amortization of debt issuance costs and discount
 
26

 
12

 

 
38

Deferred income taxes
 
(3
)
 
20

 

 
17

Equity in loss of non-consolidated affiliates
 
50

 

 

 
50

Equity in income of financial services affiliates
 
(64
)
 

 
64

 

Dividends from non-consolidated affiliates
 
5

 

 

 
5

Change in intercompany receivables and payables
 
11

 
(11
)
 

 

Other, net
 
(171
)
 
585

 

 
414

Net cash provided by operating activities
 
409

 
698

 

 
1,107

Cash flows from investing activities
 
 
 
 
 
 
 
 
Purchases of marketable securities
 
(1,856
)
 
(20
)
 

 
(1,876
)
Sales or maturities of marketable securities
 
1,290

 

 

 
1,290

Net change in restricted cash and cash equivalents
 
1

 
514

 

 
515

Capital expenditures
 
(232
)
 
(2
)
 

 
(234
)
Purchase of equipment leased to others
 
(16
)
 
(29
)
 

 
(45
)
Acquisition of intangibles
 
(15
)
 

 

 
(15
)
Business acquisitions
 
(2
)
 

 

 
(2
)
Other investing activities
 
(86
)
 
9

 
10

 
(67
)
Net cash provided by (used in) investing activities
 
(916
)
 
472

 
10

 
(434
)
Net cash used in financing activities
 
(110
)
 
(1,180
)
 
(10
)
 
(1,300
)
Effect of exchange rate changes on cash and cash equivalents
 
(1
)
 
1

 

 

Decrease in cash and cash equivalents
 
(618
)
 
(9
)
 

 
(627
)
Cash and cash equivalents at beginning of the year
 
1,152

 
60

 

 
1,212

Cash and cash equivalents at end of the year
 
$
534

 
$
51

 
$

 
$
585

_________________
(A)
Effective with the fourth quarter of 2011, the Company presents manufacturing operations with financial services operations on an after-tax equity basis. Previously, financial services was presented on a pre-tax equity basis. Prior year amounts have been reclassified to conform to the 2011 presentation.














E-25



Condensed Statement of Cash Activity
Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis)
 
 
For the Year Ended October 31, 2009 (Revised)(A)
 
 
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Condensed Consolidated Statement of Cash Flows
(in millions)
 
 
 
 
 
 
 
 
Cash flows from operating activities
 
 
 
 
 
 
 
 
Net income
 
$
345

 
$
25

 
$
(25
)
 
$
345

Adjustments to reconcile net income to cash provided by operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
284

 
4

 

 
288

Depreciation of equipment leased to others
 
35

 
21

 

 
56

Amortization of debt issuance costs and discount
 
6

 
10

 

 
16

Deferred income taxes
 
(14
)
 
(4
)
 

 
(18
)
Impairment of property and equipment, goodwill and intangibles
 
41

 

 

 
41

Extraordinary gain on acquisition of subsidiary
 
(23
)
 

 

 
(23
)
Gain on increased equity interest in subsidiary
 
(23
)
 

 

 
(23
)
Equity in income of non-consolidated affiliates
 
(46
)
 

 

 
(46
)
Equity in income of financial services affiliates
 
(25
)
 

 
25

 

Dividends from non-consolidated affiliates
 
59

 

 

 
59

Change in intercompany receivables and payables
 
(82
)
 
82

 

 

Other, net
 
(23
)
 
566

 

 
543

Net cash provided by operating activities
 
534

 
704

 

 
1,238

Cash flows from investing activities
 
 
 
 
 
 
 
 
Purchases of marketable securities
 
(382
)
 

 

 
(382
)
Sales or maturities of marketable securities
 
384

 

 

 
384

Net change in restricted cash and cash equivalents
 
(23
)
 
94

 

 
71

Capital expenditures
 
(148
)
 
(3
)
 

 
(151
)
Purchase of equipment leased to others
 
(2
)
 
(44
)
 

 
(46
)
Business acquisitions, net of escrow receipt
 
(60
)
 

 

 
(60
)
Other investing activities
 
(51
)
 
3

 
20

 
(28
)
Net cash provided by (used in) investing activities
 
(282
)
 
50

 
20

 
(212
)
Net cash provided by (used in) financing activities
 
36

 
(780
)
 
(20
)
 
(764
)
Effect of exchange rate changes on cash and cash equivalents
 
9

 

 

 
9

Increase (decrease) in cash and cash equivalents
 
297

 
(26
)
 

 
271

Increase in cash and cash equivalents upon consolidation of BDP and BDT
 
80

 

 

 
80

Cash and cash equivalents at beginning of the year
 
775

 
86

 

 
861

Cash and cash equivalents at end of the year
 
$
1,152

 
$
60

 
$

 
$
1,212

_________________
(A)
Effective with the fourth quarter of 2011, the Company presents manufacturing operations with financial services operations on an after-tax equity basis. Previously, financial services was presented on a pre-tax equity basis. Prior year amounts have been reclassified to conform to the 2011 presentation.


E-26