EX-99.1 8 navex9914302015.htm ADDITIONAL FINANCIAL INFORMATION (UNAUDITED) NAV EX 99.1 4.30.2015



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 operations and our Financial Services operations on an after-tax equity basis. Our Manufacturing operations, for this purpose, include our Truck segment, Parts segment, Global Operations segment, and Corporate items. The Manufacturing operations financial information represents non-GAAP financial measures. These non-GAAP financial measures should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP. The reconciling differences between these non-GAAP financial measures and our U.S. 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, and stockholders' equity (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 activity.
Condensed Statements of Revenues and Expenses
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)

For the Three Months Ended April 30, 2015
(in millions)
Manufacturing Operations

Financial Services Operations

Adjustments

Consolidated Statement of Operations
Sales of manufactured products
$
2,658


$
—


$
—


$
2,658

Finance revenues
—


60


(25
)

35

Sales and revenues, net
2,658


60


(25
)

2,693

Costs of products sold
2,360


—


—


2,360

Restructuring charges
6


—


—


6

Asset impairment charges
1


—


—


1

Selling, general and administrative expenses
220


24


(1
)

243

Engineering and product development costs
76


—


—


76

Interest expense
60


18


(3
)

75

Other income, net
(3
)

(4
)

(21
)

(28
)
Total costs and expenses
2,720


38


(25
)

2,733

Equity in income of non-consolidated affiliates
1


—


—


1

Income (loss) before equity income from financial services operations and income taxes
(61
)

22


—


(39
)
Equity income (loss) from financial services operations
15


—


(15
)

—

Income (loss) from continuing operations before income taxes
(46
)

22


(15
)

(39
)
Income tax expense
(11
)

(7
)

—


(18
)
Income (loss) from continuing operations
(57
)

15


(15
)

(57
)
Income from discontinued operations, net of tax
—


—


—


—

Net income (loss)
(57
)

15


(15
)

(57
)
Less: Income attributable to non-controlling interests
7


—


—


7

Net income (loss) attributable to Navistar International Corporation
$
(64
)

$
15


$
(15
)

$
(64
)

E-23


 
For the Six Months Ended April 30, 2015
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
5,043

 
$
—

 
$
—

 
$
5,043

Finance revenues
—

 
120

 
(49
)
 
71

Sales and revenues, net
5,043

 
120

 
(49
)
 
5,114

Costs of products sold
4,405

 
—

 
—

 
4,405

Restructuring charges
9

 
—

 
—

 
9

Asset impairment charges
8

 
—

 
—

 
8

Selling, general and administrative expenses
439

 
47

 
(2
)
 
484

Engineering and product development costs
155

 
—

 
—

 
155

Interest expense
120

 
38

 
(6
)
 
152

Other (income) expense, net
21

 
(11
)
 
(41
)
 
(31
)
Total costs and expenses
5,157

 
74

 
(49
)
 
5,182

Equity in income of non-consolidated affiliates
3

 
—

 
—

 
3

Income (loss) before equity income from financial services operations and income taxes
(111
)
 
46

 
—

 
(65
)
Equity income (loss) from financial services operations
30

 
—

 
(30
)
 
—

Income (loss) from continuing operations before income taxes
(81
)
 
46

 
(30
)
 
(65
)
Income tax expense
(9
)
 
(16
)
 
—

 
(25
)
Income (loss) from continuing operations
(90
)
 
30

 
(30
)
 
(90
)
Income from discontinued operations, net of tax
—

 
—

 
—

 
—

Net income (loss)
(90
)
 
30

 
(30
)
 
(90
)
Less: Income attributable to non-controlling interests
16

 
—

 
—

 
16

Net income (loss) attributable to Navistar International Corporation
$
(106
)
 
$
30

 
$
(30
)
 
$
(106
)


E-24


Condensed Statements of Revenues and Expenses
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)

For the Three Months Ended April 30, 2014
(in millions)
Manufacturing Operations

Financial Services Operations

Adjustments

Consolidated Statement of Operations
Sales of manufactured products
$
2,708


$
—


$
—


$
2,708

Finance revenues
—


57


(19
)

38

Sales and revenues, net
2,708


57


(19
)

2,746

Costs of products sold
2,468


—


—


2,468

Restructuring charges
7


1


—


8

Asset impairment charges
150


1


—


151

Selling, general and administrative expenses
216


22


(1
)

237

Engineering and product development costs
83


—


—


83

Interest expense
57


17


—


74

Other (income) expense, net
19


(9
)

(18
)

(8
)
Total costs and expenses
3,000


32


(19
)

3,013

Equity in income of non-consolidated affiliates
3

 
—

 
—

 
3

Income (loss) before equity income from financial services operations and income taxes
(289
)

25


—


(264
)
Equity income (loss) from financial services operations
16


—


(16
)

—

Income (loss) from continuing operations before income taxes
(273
)

25


(16
)

(264
)
Income tax expense
(14
)

(9
)

—


(23
)
Income (loss) from continuing operations
(287
)

16


(16
)

(287
)
Income from discontinued operations, net of tax
1


—


—


1

Net income (loss)
(286
)

16


(16
)

(286
)
Less: Income attributable to non-controlling interests
11


—


—


11

Net income (loss) attributable to Navistar International Corporation
$
(297
)

$
16


$
(16
)

$
(297
)



E-25


 
For the Six Months Ended April 30, 2014
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
4,877

 
$
—

 
$
—

 
$
4,877

Finance revenues
—

 
112

 
(35
)
 
77

Sales and revenues, net
4,877

 
112

 
(35
)
 
4,954

Costs of products sold
4,482

 
—

 
—

 
4,482

Restructuring charges
10

 
1

 
—

 
11

Asset impairment charges
168

 
1

 
—

 
169

Selling, general and administrative expenses
432

 
46

 
(2
)
 
476

Engineering and product development costs
173

 
—

 
—

 
173

Interest expense
122

 
34

 
—

 
156

Other (income) expense, net
56

 
(17
)
 
(33
)
 
6

Total costs and expenses
5,443

 
65

 
(35
)
 
5,473

Equity in income of non-consolidated affiliates
3

 
—

 
—

 
3

Income (loss) before equity income from financial services operations and income taxes
(563
)
 
47

 
—

 
(516
)
Equity income (loss) from financial services operations
30

 
—

 
(30
)
 
—

Income (loss) from continuing operations before income taxes
(533
)
 
47

 
(30
)
 
(516
)
Income tax benefit (expense)
6

 
(17
)
 
—

 
(11
)
Income (loss) from continuing operations
(527
)
 
30

 
(30
)
 
(527
)
Income from discontinued operations, net of tax
2

 
—

 
—

 
2

Net income (loss)
(525
)
 
30

 
(30
)
 
(525
)
Less: Income attributable to non-controlling interests
20

 
—

 
—

 
20

Net income (loss) attributable to Navistar International Corporation
$
(545
)
 
$
30

 
$
(30
)
 
$
(545
)



E-26


Condensed Statements of Assets, Liabilities, and Stockholders' Equity (Deficit)
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
As of April 30, 2015
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Balance Sheet
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
536

 
$
47

 
$
—

 
$
583

Marketable securities
248

 
25

 
—

 
273

Restricted cash
23

 
90

 
—

 
113

Finance and other receivables, net
520

 
2,635

 
(481
)
 
2,674

Inventories
1,234

 
11

 
—

 
1,245

Goodwill
38

 
—

 
—

 
38

Property and equipment, net
1,163

 
244

 
—

 
1,407

Investments in and advances to financial services operations
585

 
—

 
(585
)
 
—

Investments in non-consolidated affiliates
68

 
—

 
—

 
68

Deferred taxes, net
156

 
16

 
—

 
172

Other assets
328

 
24

 
—

 
352

Total assets
$
4,899

 
$
3,092

 
$
(1,066
)
 
$
6,925

Liabilities and stockholders' equity (deficit)
 
 
 
 
 
 
 
Accounts payable
$
1,902

 
$
29

 
$
(481
)
 
$
1,450

Debt
2,906

 
2,297

 
—

 
5,203

Postretirement benefits liabilities
2,828

 
38

 
—

 
2,866

Other liabilities
2,007

 
143

 
—

 
2,150

Total liabilities
9,643

 
2,507

 
(481
)
 
11,669

Redeemable equity securities
1

 
—

 
—

 
1

Stockholders' equity attributable to non-controlling interest
30

 
—

 
—

 
30

Stockholders' equity (deficit) attributable to controlling interest
(4,775
)
 
585

 
(585
)
 
(4,775
)
Total liabilities and stockholders' equity (deficit)
$
4,899

 
$
3,092

 
$
(1,066
)
 
$
6,925


E-27


Condensed Statements of Assets, Liabilities, and Stockholders' Equity (Deficit)
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
As of October 31, 2014
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Balance Sheet
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
440

 
$
57

 
$
—

 
$
497

Marketable securities
578

 
27

 
—

 
605

Restricted cash
22

 
149

 
—

 
171

Finance and other receivables, net
579

 
2,650

 
(613
)
 
2,616

Inventories
1,303

 
16

 
—

 
1,319

Goodwill
38

 
—

 
—

 
38

Property and equipment, net
1,294

 
268

 
—

 
1,562

Investments in and advances to financial services operations
698

 
—

 
(698
)
 
—

Investments in non-consolidated affiliates
73

 
—

 
—

 
73

Deferred taxes, net
183

 
17

 
—

 
200

Other assets
335

 
27

 
—

 
362

Total assets
$
5,543

 
$
3,211

 
$
(1,311
)
 
$
7,443

Liabilities and stockholders' equity (deficit)
 
 
 
 
 
 
 
Accounts payable
$
2,144

 
$
33

 
$
(613
)
 
$
1,564

Debt
2,958

 
2,266

 
—

 
5,224

Postretirement benefits liabilities
2,916

 
40

 
—

 
2,956

Other liabilities
2,143

 
174

 
—

 
2,317

Total liabilities
10,161

 
2,513

 
(613
)
 
12,061

Redeemable equity securities
2

 
—

 
—

 
2

Stockholders' equity attributable to non-controlling interest
34

 
—

 
—

 
34

Stockholders' equity (deficit) attributable to controlling interest
(4,654
)
 
698

 
(698
)
 
(4,654
)
Total liabilities and stockholders' equity (deficit)
$
5,543

 
$
3,211

 
$
(1,311
)
 
$
7,443



E-28


Condensed Statements of Cash Flows
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
For the Six Months Ended April 30, 2015
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Condensed Consolidated Statement of Cash Flows
Cash flows from operating activities
 
 
 
 
 
 
 
Net income (loss)
$
(90
)
 
$
30

 
$
(30
)
 
$
(90
)
Adjustments to reconcile net income (loss) to cash used in operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
117

 
1

 
—

 
118

Depreciation of equipment leased to others
12

 
23

 
—

 
35

Amortization of debt issuance costs and discount
12

 
7

 
—

 
19

Deferred income taxes
(7
)
 
—

 
—

 
(7
)
Asset impairment charges
4

 
4

 
—

 
8

Equity in loss of non-consolidated affiliates
(3
)
 
—

 
—

 
(3
)
Equity in income of financial services affiliates
(30
)
 
—

 
30

 
—

Dividends from financial services operations
125

 
(125
)
 
—

 
—

Dividends from non-consolidated affiliates
8

 
—

 
—

 
8

Change in intercompany receivables and payables
(52
)
 
52

 
—

 
—

Other, net
(128
)
 
(197
)
 
—

 
(325
)
Net cash used in operating activities
(32
)
 
(205
)
 
—

 
(237
)
Cash flows from investing activities
 
 
 
 
 
 
 
Purchases of marketable securities
(162
)
 
—

 
—

 
(162
)
Sales of marketable securities
430

 
1

 
—

 
431

Maturities of marketable securities
63

 
—

 
—

 
63

Net change in restricted cash and cash equivalents
(1
)
 
54

 
—

 
53

Capital expenditures
(43
)
 
(2
)
 
—

 
(45
)
Purchase of equipment leased to others
—

 
(20
)
 
—

 
(20
)
Other investing activities
8

 
4

 
—

 
12

Net cash provided by investing activities
295

 
37

 
—

 
332

Net cash provided by (used in) financing activities
(132
)
 
149

 
—

 
17

Effect of exchange rate changes on cash and cash equivalents
(35
)
 
9

 
—

 
(26
)
Increase (decrease) in cash and cash equivalents
96

 
(10
)
 
—

 
86

Cash and cash equivalents at beginning of the period
440

 
57

 
—

 
497

Cash and cash equivalents at end of the period
$
536

 
$
47

 
$
—

 
$
583


E-29


Condensed Statements of Cash Flows
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
For the Six Months Ended April 30, 2014
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Condensed Consolidated Statement of Cash Flows
Cash flows from operating activities
 
 
 
 
 
 
 
Net income (loss)
$
(525
)
 
$
30

 
$
(30
)
 
$
(525
)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
122

 
—

 
—

 
122

Depreciation of equipment leased to others
42

 
21

 
—

 
63

Amortization of debt issuance costs and discount
21

 
6

 
—

 
27

Deferred income taxes
(2
)
 
—

 
—

 
(2
)
Asset impairment charges
168

 
1

 
—

 
169

Equity in income of financial services affiliates
(30
)
 
—

 
30

 
—

Dividends from non-consolidated affiliates
9

 
—

 
—

 
9

Change in intercompany receivables and payables
(15
)
 
15

 
—

 
—

Other, net
(131
)
 
(58
)
 
—

 
(189
)
Net cash provided by (used in) operating activities
(341
)
 
15

 
—

 
(326
)
Cash flows from investing activities
 
 
 
 
 
 
 
Purchases of marketable securities
(785
)
 
(3
)
 
—

 
(788
)
Sales of marketable securities
902

 
—

 
—

 
902

Maturities of marketable securities
182

 
—

 
—

 
182

Net change in restricted cash and cash equivalents
4

 
(25
)
 
—

 
(21
)
Capital expenditures
(49
)
 
(1
)
 
—

 
(50
)
Purchase of equipment leased to others
(45
)
 
(63
)
 
—

 
(108
)
Other investing activities
15

 
10

 
—

 
25

Net cash provided by (used in) investing activities
224

 
(82
)
 
—

 
142

Net cash provided by (used in) financing activities
(36
)
 
69

 
—

 
33

Effect of exchange rate changes on cash and cash equivalents
(11
)
 
1

 
—

 
(10
)
Increase (decrease) in cash and cash equivalents
(164
)
 
3

 
—

 
(161
)
Cash and cash equivalents at beginning of the period
727

 
28

 
—

 
755

Cash and cash equivalents at end of the period
$
563

 
$
31

 
$
—

 
$
594




E-30