10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________________________

Form 10-Q

___________________________________________________

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 30, 2013

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to        

   Commission file number 1-9618

___________________________________________________

NAVISTAR INTERNATIONAL CORPORATION

(Exact name of registrant as specified in its charter)

___________________________________________________

Delaware	36-3359573
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
2701 Navistar Drive, Lisle, Illinois	60532
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (331) 332-5000

___________________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes  þ    No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  þ    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	þ	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	o
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  o    No  þ

As of May 31, 2013, the number of shares outstanding of the registrant’s common stock was 80,398,928, net of treasury shares.

NAVISTAR INTERNATIONAL CORPORATION FORM 10-Q

TABLE OF CONTENTS

		Page
PART I—Financial Information
Item 1.	Financial Statements (Unaudited)	5
	Consolidated Statements of Operations for the three and six months ended April 30, 2013 and 2012	5
	Consolidated Statements of Comprehensive Loss for the three and six months ended April 30, 2013 and 2012	6
	Consolidated Balance Sheets as of April 30, 2013 and October 31, 2012	7
	Condensed Consolidated Statements of Cash Flows for the six months ended April 30, 2013 and 2012	8
	Consolidated Statements of Stockholders' Equity (Deficit) for the six months ended April 30, 2013 and 2012	9
	Notes to Condensed Consolidated Financial Statements	10
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	45
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	60
Item 4.	Controls and Procedures	61
PART II—Other Information
Item 1.	Legal Proceedings	62
Item 1A.	Risk Factors	63
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	63
Item 3.	Defaults upon Senior Securities	63
Item 4.	Mine Safety Disclosures	63
Item 5.	Other Information	63
Item 6.	Exhibits	63
	Signatures	64

2

Disclosure Regarding Forward-Looking Statements

Information provided and statements contained in this report that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"), and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements only speak as of the date of this report and Navistar International Corporation assumes no obligation to update the information included in this report.

Such forward-looking statements include, but are not limited to, statements concerning:

• estimates we have made in preparing our financial statements;

• our development of new products and technologies;

• the anticipated sales, volume, demand, and markets for our products;

• the anticipated performance and benefits of our products and technologies, including our advanced clean engine solutions;

• our business strategies relating to, and our ability to meet, federal and state regulatory heavy-duty diesel emissions standards applicable to certain of our engines, including the timing and costs of compliance and consequences of noncompliance with such standards, as well as our ability to meet other federal, state and foreign regulatory requirements;

• our business strategies and long-term goals, and activities to accomplish such strategies and goals;

• anticipated benefits from acquisitions, strategic alliances, and joint ventures we complete;

• our expectations relating to the dissolution of our Blue Diamond Truck joint venture with Ford Motor Company expected in December 2014;

• our expectations and estimates relating to restructuring activities, including restructuring and integration charges and timing of cash payments related thereto, and operational flexibility, savings, and efficiencies from such restructurings;

• our expectations relating to the possible effects of anticipated divestitures and closures of businesses;

• our expectations relating to our cost-reduction actions, including our voluntary separation program, involuntary reduction in force, and other actions to reduce discretionary spending;

• our implementation of a new Return-On-Invested Capital methodology;

• our realigning our management structure around functional expertise;

• our changes to our organizational and segment reporting structures expected to be completed in the near future;

• our expectations relating to our ability to service our long-term debt;

• our expectations relating to our retail finance receivables and retail finance revenues;

• our expectations relating to the availability of sufficient funds to meet operating requirements, capital expenditures, equity

investments and strategic acquisitions;

• our anticipated costs relating to the development of our emissions solutions products and other product modifications that may be required to meet other federal, state, and foreign regulatory requirements;

• our anticipated capital expenditures;

• our expectations relating to warranty costs;

• our expectations relating to interest expense;

• costs relating to litigation and similar matters, including costs associated with the shareholder class action complaints and the derivative complaint;

• estimates relating to pension plan contributions and unfunded pension and postretirement benefits;

• trends relating to commodity prices; and

• anticipated trends, expectations, and outlook relating to matters affecting our financial condition or results of operations.

These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," or similar expressions. These statements are not guarantees of performance or results and they involve risks, uncertainties, and assumptions. Although we believe that these forward-looking statements are based on reasonable assumptions, there are many factors that could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause or contribute to differences in our future financial results include those discussed in Item 1A, Risk Factors, included within our Annual Report on Form 10-K for the year ended October 31, 2012, which was filed on December 19, 2012, as well as those discussed elsewhere in this report. All future written and oral forward-looking statements by us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained herein or referred to above. Except for our ongoing obligations to disclose material information as required by the federal securities laws, we do not have any obligations or intention to release publicly any revisions to any forward-looking statements to reflect events or circumstances in the future or to reflect the occurrence of unanticipated events.

3

Available Information

We are subject to the reporting and information requirements of the Exchange Act and as a result, are obligated to file annual, quarterly, and current reports, proxy statements, and other information with the United States ("U.S.") Securities and Exchange Commission ("SEC"). We make these filings available free of charge on our website (http://www.navistar.com) as soon as reasonably practicable after we electronically file them with, or furnish them to, the SEC. Information on our website does not constitute part of this Quarterly Report on Form 10-Q. In addition, the SEC maintains a website (http://www.sec.gov) that contains our annual, quarterly, and current reports, proxy and information statements, and other information we electronically file with, or furnish to, the SEC. Any materials we file with, or furnish to, the SEC may also be read and/or copied at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. Information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-800-SEC-0330.

4

PART I—Financial Information

Item 1. Financial Statements

Navistar International Corporation and Subsidiaries

Consolidated Statements of Operations

(Unaudited)

	Three Months Ended April 30,						Six Months Ended April 30,
(in millions, except per share data)	2013			2012			2013			2012
Sales and revenues
Sales of manufactured products, net	$	2,487		$	3,218		$	5,085		$	6,183
Finance revenues	39			43			78			87
Sales and revenues, net	2,526			3,261			5,163			6,270
Costs and expenses
Costs of products sold	2,363			2,900			4,649			5,550
Restructuring charges	6			19			8			19
Impairment of intangible assets	—			10			—			10
Selling, general and administrative expenses	312			372			597			727
Engineering and product development costs	100			132			211			267
Interest expense	90			62			164			123
Other expense (income), net	(19		)	13			(57		)	21
Total costs and expenses	2,852			3,508			5,572			6,717
Equity in income (loss) of non-consolidated affiliates	4			(4		)	3			(11		)
Loss from continuing operations before income taxes	(322		)	(251		)	(406		)	(458		)
Income tax benefit (expense)	(22		)	123			(37		)	199
Loss from continuing operations	(344		)	(128		)	(443		)	(259		)
Loss from discontinued operations, net of tax	(21		)	(34		)	(30		)	(43		)
Net loss	(365		)	(162		)	(473		)	(302		)
Less: Net income attributable to non-controlling interests	9			10			24			23
Net loss attributable to Navistar International Corporation	$	(374	)	$	(172	)	$	(497	)	$	(325	)
Amounts attributable to Navistar International Corporation common shareholders:
Loss from continuing operations, net of tax	$	(353	)	$	(138	)	$	(467	)	$	(282	)
Loss from discontinued operations, net of tax	(21		)	(34		)	(30		)	(43		)
Net loss	$	(374	)	$	(172	)	$	(497	)	$	(325	)
Loss per share:
Basic:
Continuing operations	$	(4.39	)	$	(2.01	)	$	(5.82	)	$	(4.07	)
Discontinued operations	(0.26		)	(0.49		)	(0.37		)	(0.62		)
	$	(4.65	)	$	(2.50	)	$	(6.19	)	$	(4.69	)
Diluted:
Continuing operations	$	(4.39	)	$	(2.01	)	$	(5.82	)	$	(4.07	)
Discontinued operations	(0.26		)	(0.49		)	(0.37		)	(0.62		)
	$	(4.65	)	$	(2.50	)	$	(6.19	)	$	(4.69	)
Weighted average shares outstanding:
Basic	80.4			68.7			80.3			69.3
Diluted	80.4			68.7			80.3			69.3

See Notes to Condensed Consolidated Financial Statements

5

Navistar International Corporation and Subsidiaries

Consolidated Statements of Comprehensive Loss

(Unaudited)

(in millions)	Three Months Ended April 30,						Six Months Ended April 30,
	2013			2012			2013			2012
Net loss attributable to Navistar International Corporation	$	(374	)	$	(172	)	$	(497	)	$	(325	)
Other comprehensive income (loss):
Foreign currency translation adjustment	3			(65		)	20			(78		)
Defined benefit plans (net of tax of $(1), $12, $(1), and $24 respectively)	40			17			78			40
Total other comprehensive income (loss)	43			(48		)	98			(38		)
Total comprehensive loss attributable to Navistar International Corporation	$	(331	)	$	(220	)	$	(399	)	$	(363	)

See Notes to Condensed Consolidated Financial Statements

6

Navistar International Corporation and Subsidiaries

Consolidated Balance Sheets

(in millions, except per share data)	April 30, 2013			October 31, 2012
ASSETS	(Unaudited)
Current assets
Cash and cash equivalents	$	505		$	1,087
Restricted cash and cash equivalents	1			—
Marketable securities	733			466
Trade and other receivables, net	839			749
Finance receivables, net	1,664			1,663
Inventories	1,476			1,537
Deferred taxes, net	75			74
Other current assets	276			261
Total current assets	5,569			5,837
Restricted cash	116			161
Trade and other receivables, net	36			94
Finance receivables, net	428			486
Investments in non-consolidated affiliates	52			62
Property and equipment (net of accumulated depreciation and amortization of $2,386 and $2,228)	1,776			1,660
Goodwill	275			280
Intangible assets (net of accumulated amortization of $89 and $78)	157			171
Deferred taxes, net	181			189
Other noncurrent assets	133			162
Total assets	$	8,723		$	9,102
LIABILITIES and STOCKHOLDERS’ DEFICIT
Liabilities
Current liabilities
Notes payable and current maturities of long-term debt	$	779		$	1,205
Accounts payable	1,621			1,686
Other current liabilities	1,607			1,462
Total current liabilities	4,007			4,353
Long-term debt	4,002			3,566
Postretirement benefits liabilities	3,331			3,405
Deferred taxes, net	41			42
Other noncurrent liabilities	980			996
Total liabilities	12,361			12,362
Redeemable equity securities	4			5
Stockholders’ deficit
Series D convertible junior preference stock	3			3
Common stock (86.8 and 86.0 shares issued, respectively; and $0.10 par value per share and 220 shares authorized, at both dates)	9			9
Additional paid in capital	2,456			2,440
Accumulated deficit	(3,662		)	(3,165		)
Accumulated other comprehensive loss	(2,227		)	(2,325		)
Common stock held in treasury, at cost (6.4 and 6.8 shares, respectively)	(256		)	(272		)
Total stockholders’ deficit attributable to Navistar International Corporation	(3,677		)	(3,310		)
Stockholders’ equity attributable to non-controlling interests	35			45
Total stockholders’ deficit	(3,642		)	(3,265		)
Total liabilities and stockholders’ deficit	$	8,723		$	9,102

See Notes to Condensed Consolidated Financial Statements

7

Navistar International Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Six Months Ended April 30,
(in millions)	2013			2012
Cash flows from operating activities
Net loss	$	(473	)	$	(302	)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization	164			136
Depreciation of equipment leased to others	78			24
Deferred taxes, including change in valuation allowance	20			(203		)
Impairment of property and equipment and intangible assets	8			38
Gain on sales of investments and businesses, net	(13		)	—
Amortization of debt issuance costs and discount	31			19
Stock-based compensation	14			14
Provision for doubtful accounts, net of recoveries	13			—
Equity in loss of non-consolidated affiliates, net of dividends	8			15
Write-off of debt issuance cost and discount	6			8
Other non-cash operating activities	(54		)	2
Changes in other assets and liabilities, exclusive of the effects of businesses acquired and disposed	155			298
Net cash provided by (used in) operating activities	(43		)	49
Cash flows from investing activities
Purchases of marketable securities	(759		)	(563		)
Sales or maturities of marketable securities	492			944
Net change in restricted cash and cash equivalents	44			182
Capital expenditures	(107		)	(176		)
Purchases of equipment leased to others	(295		)	(28		)
Proceeds from sales of property and equipment	19			6
Investments in non-consolidated affiliates	—			(17		)
Business acquisitions, net of cash received	—			(10		)
Proceeds from sales of affiliates	30			1
Acquisition of intangibles	—			(14		)
Net cash provided by (used in) investing activities	(576		)	325
Cash flows from financing activities
Proceeds from issuance of securitized debt	200			281
Principal payments on securitized debt	(402		)	(666		)
Proceeds from issuance of non-securitized debt	339			555
Principal payments on non-securitized debt	(374		)	(537		)
Net increase in notes and debt outstanding under revolving credit facilities	80			2
Principal payments under financing arrangements and capital lease obligations	(51		)	(20		)
Debt issuance costs	(14		)	(15		)
Proceeds from financed lease obligations	263			—
Issuance of common stock	14			—
Purchase of treasury stock	—			(75		)
Proceeds from exercise of stock options	8			2
Dividends paid by subsidiaries to non-controlling interest	(25		)	(34		)
Other financing activities	4			(3		)
Net cash provided by (used in) financing activities	42			(510		)
Effect of exchange rate changes on cash and cash equivalents	(5		)	(3		)
Decrease in cash and cash equivalents	(582		)	(139		)
Cash and cash equivalents at beginning of the period	1,087			539
Cash and cash equivalents at end of the period	$	505		$	400

See Notes to Condensed Consolidated Financial Statements

8

Navistar International Corporation and Subsidiaries

Consolidated Statements of Stockholders’ Equity (Deficit)

(Unaudited)

(in millions)	Series D Convertible Junior Preference Stock		Common Stock		Additional Paid-in Capital			Accumulated Deficit			Accumulated Other Comprehensive Income (Loss)			Common Stock Held in Treasury, at cost			Stockholders' Equity Attributable to Non-controlling Interests			Total
Balance as of October 31, 2012	$	3	$	9	$	2,440		$	(3,165	)	$	(2,325	)	$	(272	)	$	45		$	(3,265	)
Net income (loss)								(497		)							24			(473		)
Total other comprehensive income											98									98
Transfer from redeemable equity securities upon exercise or expiration of stock options					1															1
Stock-based compensation					9															9
Stock ownership programs					(9		)							16						7
Cash dividends paid to non-controlling interest																	(25		)	(25		)
Issuance of common stock, net of issuance costs and fees					14															14
Deconsolidation of a non-controlling interest																	(9		)	(9		)
Other					1															1
Balance as of April 30, 2013	$	3	$	9	$	2,456		$	(3,662	)	$	(2,227	)	$	(256	)	$	35		$	(3,642	)
Balance as of October 31, 2011	$	3	$	7	$	2,253		$	(155	)	$	(1,944	)	$	(191	)	$	50		$	23
Net income (loss)								(325		)							23			(302		)
Total other comprehensive loss											(38		)							(38		)
Stock-based compensation					11															11
Stock ownership programs					(10		)							11						1
Stock repurchase programs					20									(95		)				(75		)
Cash dividends paid to non-controlling interest																	(34		)	(34		)
Increase in ownership interest acquired from non-controlling interest holder					(3		)										3			—
Other			1		1									(1		)	1			2
Balance as of April 30, 2012	$	3	$	8	$	2,272		$	(480	)	$	(1,982	)	$	(276	)	$	43		$	(412	)

See Notes to Condensed Consolidated Financial Statements

9

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1. Summary of Significant Accounting Policies

Organization and Description of the Business

Navistar International Corporation ("NIC"), incorporated under the laws of the State of Delaware in 1993, is a holding company whose principal operating subsidiaries are Navistar, Inc. and Navistar Financial Corporation ("NFC"). References herein to the "Company," "we," "our," or "us" refer collectively to NIC and its consolidated subsidiaries, including certain variable interest entities ("VIEs") of which we are the primary beneficiary. Our fiscal year ends October 31. As such, all references to 2013 and 2012 contained within this Quarterly Report on Form 10-Q relate to our fiscal year, unless otherwise indicated. We operate in four principal industry segments: Truck, Engine, and Parts (collectively called "Manufacturing operations"), and Financial Services, which consists of NFC and our foreign finance operations (collectively called "Financial Services operations"). These segments are discussed in Note 13, Segment Reporting.

Basis of Presentation and Consolidation

The accompanying unaudited consolidated financial statements include the assets, liabilities, and results of operations of our manufacturing operations, which include majority-owned dealers ("Dealcors"), and our financial services operations, including VIEs of which we are the primary beneficiary. The effects of transactions among consolidated entities have been eliminated to arrive at the consolidated amounts. Certain reclassifications were made to prior periods' amounts to conform to the 2013 presentation, which includes the presentation of certain former businesses as discontinued operations. For more information, see Note 2, Discontinued Operations and Other Divestitures.

We prepared the accompanying unaudited consolidated financial statements in accordance with United States ("U.S.") generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and notes required by U.S. GAAP for comprehensive annual financial statements.

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting policies described in our Annual Report on Form 10-K for the year ended October 31, 2012 and Current Report on Form 8-K filed on March 25, 2013, all of which should be read in conjunction with the disclosures therein. In our opinion, these interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial condition, results of operations, and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of annual operating results.

Out-Of-Period Adjustments

Included in the results of operations for the three and six months ended April 30, 2013 are out-of-period adjustments, which represent corrections of prior-period errors related to the accounting for certain sales transactions. In March 2010, we entered into an operating agreement with GE Capital Corporation and GE Capital Commercial, Inc. (collectively “GE”). Under the terms of the agreement, GE became our preferred source of retail customer financing for equipment offered by us and our dealers in the U.S. We provide GE a loss sharing arrangement for certain credit losses. The determination was made that certain sales that were ultimately financed by GE did not qualify for revenue recognition, as we retained substantial risks of ownership in the leased property. As a result, the transactions should have been accounted for as borrowings, resulting in the proceeds from the transfer being recorded as an obligation and amortized to revenue over the term of the financing. In addition, the financed equipment should have been transferred from inventory to equipment leased to others and depreciated over the term of the financing.

Correcting the errors, which were not material to any of the prior periods, resulted in a $9 million and $8 million increase to Net loss in our Consolidated Statements of Operations for the three and six months ended April 30, 2013, respectively. The impact of the correction on our results for the three months ended April 30, 2013 related to prior periods includes: (i) a $124 million net decrease to Sales of manufactured products, net, (ii) a $126 million net decrease to Costs of products sold, including $46 million of additional depreciation expense, and (iii) an $11 million increase to Interest expense. The impact of the correction on our results for the six months ended April 30, 2013 related to prior periods includes: (i) a $113 million net decrease to Sales of manufactured products, net, (ii) a $113 million net decrease to Costs of products sold, including $37 million of additional depreciation expense, and (iii) an $8 million increase to Interest expense. In addition, in our Condensed Consolidated Statements of Cash Flows we recognized Purchases of equipment leased to others of $184 million and Proceeds from financed lease obligations of $201 million related to periods prior to fiscal 2013. The impact of the corrections was not material to any of our Consolidated Balance Sheets.

10

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

Variable Interest Entities

We have an interest in several VIEs, primarily joint ventures, established to manufacture or distribute products and enhance our operational capabilities. We have determined for certain of our VIEs that we are the primary beneficiary because we have the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and have the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Accordingly, we include in our consolidated financial statements the assets and liabilities and results of operations of those entities, even though we may not own a majority voting interest. The liabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets; rather they represent claims against the specific assets of these VIEs. Assets of these entities are not readily available to satisfy claims against our general assets.

We are the primary beneficiary of our Blue Diamond Parts ("BDP") and Blue Diamond Truck ("BDT") joint ventures with Ford Motor Company ("Ford"). As a result, our Consolidated Balance Sheets include assets of $266 million and $246 million and liabilities of $165 million and $109 million as of April 30, 2013 and October 31, 2012, respectively, from BDP and BDT, including $34 million and $26 million of cash and cash equivalents, at the respective dates, which are not readily available to satisfy claims against our general assets. The creditors of BDP and BDT do not have recourse to our general credit. In December 2011, Ford notified the Company of its intention to dissolve the BDT joint venture effective December 2014. We do not expect the dissolution of the BDT joint venture to have a material impact on our consolidated financial statements.

Our Financial Services segment consolidates several VIEs. As a result, our Consolidated Balance Sheets include assets of $1.0 billion and $1.1 billion and liabilities of $773 million and $914 million as of April 30, 2013 and October 31, 2012, respectively, all of which are involved in securitizations that are treated as borrowings. In addition, our Consolidated Balance Sheets include assets of $317 million and $359 million and related liabilities of $96 million and $157 million as of April 30, 2013 and October 31, 2012, respectively, all of which are involved in transactions that do not qualify for sale accounting treatment, and therefore, are treated as borrowings. Investors that hold securitization debt have a priority claim on the cash flows generated by their respective securitized assets to the extent that the related trusts are entitled to make principal and interest payments. Investors in securitizations of these entities have no recourse to our general credit.

We also have an interest in other VIEs, which we do not consolidate because we are not the primary beneficiary. Our financial support and maximum loss exposure relating to these non-consolidated VIEs are not material to our financial condition, results of operations, or cash flows.

We use the equity method to account for our investments in entities that we do not control under the voting interest or variable interest models, but where we have the ability to exercise significant influence over operating and financial policies. Equity in loss of non-consolidated affiliates includes our share of the net income (loss) of these entities.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the periods presented. Significant estimates and assumptions are used for, but are not limited to, pension and other postretirement benefits, allowance for doubtful accounts, income tax contingency accruals and valuation allowances, product warranty accruals, asbestos and other product liability accruals, asset impairment charges, and litigation-related accruals. Actual results could differ from our estimates.

Concentration Risks

Our financial condition, results of operations, and cash flows are subject to concentration risks related to concentrations of our union employees. As of April 30, 2013, approximately 4,600, or 51%, of our hourly workers and approximately 400, or 5%, of our salaried workers are represented by labor unions and are covered by collective bargaining agreements. Our future operations may be affected by changes in governmental procurement policies, budget considerations, changing national defense requirements, and global, political, regulatory and economic developments in the U.S. and certain foreign countries (primarily Canada, Mexico, and Brazil).

11

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

Product Warranty Liability

The following table presents accrued product warranty and deferred warranty revenue activity:

	Six Months Ended April 30,
(in millions)	2013			2012
Balance at beginning of period	$	1,118		$	598
Costs accrued and revenues deferred	226			236
Adjustments to pre-existing warranties(A)(B)	204			227
Payments and revenues recognized	(327		)	(217		)
Balance at end of period	1,221			844
Less: Current portion	647			365
Noncurrent accrued product warranty and deferred warranty revenue	$	574		$	479

_________________________

(A) Adjustments to pre-existing warranties reflect changes in our estimate of warranty costs for products sold in prior periods. Such adjustments typically occur when claims experience deviates from historic and expected trends. Our warranty liability is generally affected by component failure rates, repair costs, and the timing of failures. Future events and circumstances related to these factors could materially change our estimates and require adjustments to our liability. In addition, new product launches require a greater use of judgment in developing estimates until historical experience becomes available.

Inthe first quarter of 2013, we recorded adjustments for changes in estimates of $40 million, or $0.50 per diluted share. Inthe second quarter of 2013, we recorded adjustments for changes in estimates of $164 million, or $2.04 per diluted share. The impact of income taxes on the 2013 adjustments are not material due to our deferred tax valuation allowances on our U.S. deferred tax assets.

In the first quarter of 2012, adjustments for changes in estimates amounted to $123 million, $119 million net of tax or $1.70 per diluted share. In the second quarter of 2012, we recorded adjustments for changes in estimates of $104 million, $100 million net of tax or $1.46. The impact of income taxes on the 2012 adjustments reflect the Company's 2012 estimated annual effective tax rate as of April 30, 2012.

(B) In the first quarter of 2013, we recognized $13 million of charges for adjustments to pre-existing warranties for a specific warranty issue related to component parts from a supplier. Also during the quarter, we reached agreement for reimbursement from this supplier for this amount and other costs previously accrued. As a result of this agreement, we recognized a recovery of $27 million within Costs of products sold and recorded a receivable within Other current assets. In the second quarter of 2013, we recognized a warranty recovery of $13 million within Loss from discontinued operations, net of tax and recorded a receivable within Other current assets.

The amount of deferred revenue related to extended warranty programs was $405 million and $364 million at April 30, 2013 and October 31, 2012, respectively. Revenue recognized under our extended warranty programs was $11 million and $40 million for the three and six months ended April 30, 2013, respectively, and $16 million and $31 million for the three and six months ended April 30, 2012, respectively. In the second quarters of 2013 and 2012, the Truck segment recognized charges of $33 million and $24 million, respectively, related to the extended warranty contracts on our 2010 emission standard MaxxForce Big-Bore engines. The majority of these changes are included in the adjustments to pre-existing warranties.

Recently Issued and Adopted Accounting Standards

There are no recently issued accounting standards for which the Company expects a material impact on our consolidated financial statements. In addition, for the six months ended April 30, 2013, the Company has not adopted any new accounting guidance that has had a material impact on our consolidated financial statements.

2. Discontinued Operations and Other Divestitures

The Company is currently evaluating its portfolio of assets to validate their strategic and financial fit. To allow us to increase our focus on our North American core business, we are evaluating product lines, businesses, and engineering programs that fall outside of our core business. We are using Return on Invested Capital ("ROIC") methodology, combined with an assessment of the strategic fit to our core business, to identify areas that are under-performing. For those areas under-performing, we are evaluating whether to fix, divest, or close, and expect to realize incremental benefits from these actions in the near future.

Discontinued Operations

In the first quarter of 2013, the Company completed the idling of the Workhorse Custom Chassis ("WCC") operations, and in the second quarter of 2013, we completed the divestiture of the WCC business for an immaterial amount. For the three and six months ended April 30, 2013 and 2012, the operating results of the WCC operations, which were previously included as part of the Truck segment, are reported as discontinued operations in the Consolidated Statements of Operations for all periods presented.

12

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

In the first quarter of 2013, certain operations of the Monaco recreational vehicle ("RV") business ("Monaco") were determined to be held-for-sale. For the three and six months ended April 30, 2013 and 2012, the operating results of these certain operations of Monaco, which were previously included as part of the Truck segment, are reported as discontinued operations in the Consolidated Statements of Operations for all periods presented. In May 2013, we divested substantially all of our interest in these operations of Monaco. The cash consideration from the divestiture was approximately $19 million. As a result of the divestiture, in the second quarter of 2013, we recorded charges of $25 million relating to the impairment of certain assets and the expected loss from the divestiture. The charges were included in the Loss from discontinued operations, net of tax.

WCC and Monaco were not material to the Company's Consolidated Balance Sheets or Condensed Consolidated Statements of Cash Flows and have not been reclassified in the respective financial statements.

The following table summarizes the discontinued operations activity in the Company's Consolidated Statements of Operations:

	Three Months Ended April 30,						Six Months Ended April 30,
(in millions)	2013			2012			2013			2012
Sales and revenues, net	$	36		$	37		$	70		$	80
Loss before income taxes	$	(21	)	$	(44	)	$	(30	)	$	(58	)
Income tax benefit	—			10			—			15
Loss from discontinued operations, net of tax	$	(21	)	$	(34	)	$	(30	)	$	(43	)

We generally use a centralized approach to cash management, financing of our manufacturing operations, and general corporate related functions, and, accordingly, do not allocate debt, interest expense, or corporate overhead to our discontinued businesses. Any debt and related interest expense of a specific entity within a business is recorded by the respective entity.

Other Divestitures

In 2006 and 2008, we formed two joint ventures with Mahindra & Mahindra Ltd. ("Mahindra") in India, which operated under the names of Mahindra Navistar Automotive Ltd. ("MNAL") and Mahindra-Navistar Engines Private Ltd. ("MNEPL") (collectively, the "Mahindra Joint Ventures"). In the second quarter of 2013, the Company sold its stake in the Mahindra Joint Ventures to Mahindra for $33 million and recognized a gain of $28 million. As part of the transaction, the Company entered into licensing and service agreements with Mahindra.

3. Restructurings and Impairments

Restructuring charges recorded are based on restructuring plans that have been committed to by management and are, in part, based upon management's best estimates of future events. Changes to the estimates may require future adjustments to the restructuring liabilities. In the three and six months ended April 30, 2013, the Company recognized restructuring charges of $6 million and $8 million, respectively, compared to $19 million in both the three and six months ended April 30, 2012.

Cost-Reductions and Other Strategic Initiatives

In the fourth quarter of 2012, we announced actions to control spending across the Company with targeted reductions of certain costs. In addition to the expected integration synergies resulting from ongoing efforts to consolidate our truck and engine engineering operations, as well as the relocation of our world headquarters to Lisle, Illinois, we are focusing on continued reductions in discretionary spending, including but not limited to reductions from efficiencies, and prioritizing or eliminating certain programs or projects.

We continue to evaluate options to improve the efficiency and performance of our operations. Our focus is on improving our core North American Manufacturing operations performance. We are evaluating opportunities to restructure our business and rationalize our manufacturing operations in an effort to optimize our cost structure, which could include, among other actions, additional rationalization of our manufacturing operations and/or divesting of non-core businesses. These actions could result in additional restructuring and other related charges during fiscal 2013, including but not limited to, impairments, employee termination costs and charges for pension and other postretirement contractual benefits and pension curtailments, and these charges could be significant.

Voluntary separation program and reduction in force

In the fourth quarter of 2012, the Company offered the majority of our U.S.-based non-represented salaried employees the opportunity to apply for a voluntary separation program ("VSP"). Along with the employees who chose to participate in the VSP, we used attrition and an involuntary reduction in force to eliminate additional positions in order to meet our targeted

13

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

reductions goal. In addition to these actions in the U.S., our Brazilian operations utilized an involuntary reduction in force to eliminate positions. As a result of these actions and charges related to the elimination of certain executive positions, the Company recognized restructuring charges of $73 million in the fourth quarter of 2012. The restructuring charges consisted of $66 million in personnel costs for employee termination and related benefits and $7 million of charges for pension and other postretirement contractual termination benefits. The Company expects the restructuring charges, excluding other postretirement costs, will be paid throughout the year.

Engineering Integration

In 2011, the Company committed to a plan and finalized the purchase of the property and buildings to consolidate its truck and engine engineering operations, as well as the relocation of our world headquarters. The Company is utilizing proceeds from an October 2010 loan agreement related to tax exempt bonds (the "Tax Exempt Bonds") to finance the relocation of the Company’s world headquarters and engineering center, the expansion of an existing warehouse facility, and the development of certain industrial facilities to assist with the consolidation of certain operations (the "Loan Agreement").

In the second quarter of 2012, the Company vacated the premises of its former world headquarters in Warrenville, Illinois and recorded a charge of $16 million, consisting of $19 million for the recognition of the fair value of the lease vacancy obligation, partially offset by $3 million for the reversal of deferred rent expense. This charge was recorded in Corporate and recognized in Restructuring charges. The cash payments associated with the lease vacancy obligation are expected to be completed by the end of 2016.

North American Manufacturing Restructuring Activities and Impairments of Intangible Assets

The Company continues to evaluate opportunities to restructure and rationalize its manufacturing operations in an effort to optimize the cost structure. In the third quarter of 2011, the Company committed to plans for the restructuring of certain North American manufacturing operations, including the closure of its Chatham, Ontario heavy truck plant and actions related to WCC and Monaco (collectively "Custom Products"). In the fourth quarter of 2012, the Company committed to plans for the closure of its Garland, Texas truck manufacturing operations (the "Garland Facility"). In the second quarter of 2013, the Company reached an agreement to sublease a portion of its manufacturing facility in Cherokee, Alabama (the “Cherokee Facility”).

Chatham restructuring activities

In the third quarter of 2011, the Company committed to close its Chatham, Ontario heavy truck plant, which had been idled since June 2009. We anticipate additional charges of $20 million to $70 million in future periods, primarily related to pension and postretirement costs and termination benefits, which are subject to employee negotiation and acceptance rates. We expect the previous restructuring charges, excluding pension and other postretirement costs, will be paid over the next year.

Custom Products restructuring activities and impairment of intangible assets

In the third quarter of 2011, the Company committed to a restructuring plan of Custom Products, including the closure of the Union City, Indiana chassis facility and the wind-down and transfer of certain operations at the Monaco RV motor coach plant in Coburg, Oregon. In the second quarter of 2012, the Company decided to discontinue accepting orders and idle the WCC operations. In the first quarter of 2013, the Company completed the idling of the WCC operations and in the second quarter of 2013, it divested WCC for an immaterial amount.

In the second quarter of 2012, as a result of the decision to idle the WCC operations, the WCC asset group was reviewed for recoverability and determined not to be recoverable. We determined that the remaining intangible asset balances were fully impaired, and the Company recognized asset impairment charges of $28 million in Loss from discontinued operations, net of tax. In addition, the Parts segment recognized a charge of $10 million for the impairment of certain intangible assets of the parts distribution operations related to the WCC business.

Beginning in the first quarter of 2013, the Company began reporting the operating results of WCC and certain operating results of Monaco as discontinued operations in the Company's Consolidated statements of operations. In March 2013, we completed the divestiture of the WCC business. In May 2013, we divested substantially all of our interest in these operations of Monaco. For more information, see Note 2, Discontinued Operations and Other Divestitures.

Garland Facility closure

In the fourth quarter of 2012, the Company committed to plans for the closure of the Garland Facility, which resulted in our Truck segment recognizing restructuring charges of $4 million for personnel costs related to employee terminations and related

14

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

benefits. Beginning in early 2013, the Company began transitioning production from the Garland Facility to other North America operations that produce similar models. In the second quarter of 2013, production at the Garland Facility ceased. During 2013, we recognized $21 million of charges related to the planned closure, primarily from accelerated depreciation of certain assets related to the facility. We anticipate recognizing approximately $10 million of other related charges in the remainder 2013. We expect the restructuring charges relating to employee separation benefits will be paid during 2013.

Alabama Facility Sublease

In January 2012, the Company began leasing the Cherokee Facility and purchased certain machinery and equipment within the facility. In the second quarter of 2013, we signed an agreement to sublease a portion of the Cherokee Facility. The term of the sublease agreement runs through the remaining term of our operating lease, which ends in 2021.

Restructuring Liability

The following tables summarize the activity in the restructuring liability, which includes amounts related to discontinued operations and excludes pension and other postretirement contractual termination benefits:

(in millions)	Balance at October 31, 2012		Additions		Payments			Adjustments			Balance at April 30, 2013
Employee termination charges	$	72	$	1	$	(44	)	$	(3	)	$	26
Employee relocation costs	—		2		(2		)	—			—
Lease vacancy	17		2		(3		)	2			18
Other	—		4		(3		)	—			1
Restructuring liability	$	89	$	9	$	(52	)	$	(1	)	$	45

(in millions)	Balance at October 31, 2011		Additions		Payments			Adjustments			Balance at April 30, 2012
Employee termination charges	$	31	$	2	$	(4	)	$	(3	)	$	26
Employee relocation costs	—		4		(4		)	—			—
Lease vacancy	—		19		(1		)	—			18
Other	8		1		(7		)	—			2
Restructuring liability	$	39	$	26	$	(16	)	$	(3	)	$	46

4. Finance Receivables

Finance receivables are receivables of our financial services operations, which generally can be repaid without penalty prior to contractual maturity. Finance receivables generally consist of retail and wholesale accounts and retail and wholesale notes. Total finance receivables reported on the Consolidated Balance Sheets are net of an allowance for doubtful accounts. Total assets of our financial services operations net of intercompany balances are $2.5 billion and $2.6 billion as of April 30, 2013 and October 31, 2012, respectively. Included in total assets are finance receivables of $2.1 billion as of both April 30, 2013 and October 31, 2012. We have two portfolio segments of finance receivables based on the type of financing inherent to each portfolio. The retail portfolio segment represents loans or leases to end-users for the purchase or lease of vehicles. The wholesale portfolio segment represents loans to dealers to finance their inventory.

Our Finance receivables, net, consist of the following:

(in millions)	April 30, 2013		October 31, 2012
Retail portfolio	$	968	$	1,048
Wholesale portfolio	1,148		1,128
Total finance receivables	2,116		2,176
Less: Allowance for doubtful accounts	24		27
Total finance receivables, net	2,092		2,149
Less: Current portion, net(A)	1,664		1,663
Noncurrent portion, net	$	428	$	486

_________________________

(A) The current portion of finance receivables is computed based on contractual maturities. Actual cash collections typically vary from the contractual cash flows because of prepayments, extensions, delinquencies, credit losses, and renewals.

15

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

Securitizations

Our Financial Services segment transfers wholesale notes, retail accounts receivable, retail notes, finance leases, and operating leases through special purpose entities ("SPEs"), which generally are only permitted to purchase these assets, issue asset-backed securities, and make payments on the securities. In addition to servicing receivables, our continued involvement in the SPEs may include an economic interest in the transferred receivables and, in some cases, managing exposure to interest rates using interest rate swaps and interest rate caps. There were no transfers of finance receivables that qualified for sale accounting treatment as of April 30, 2013 and October 31, 2012, and as a result, the transferred finance receivables are included in our Consolidated Balance Sheets and the related interest earned is included in Finance revenues.

We transfer eligible finance receivables into the retail owner trust or the wholesale note owner trust in order to issue asset-backed securities. These trusts are VIEs of which we are determined to be the primary beneficiary and, therefore, the assets and liabilities of the trusts are included in our Consolidated Balance Sheets. The outstanding balance of finance receivables transferred into these VIEs was $976 million and $1.1 billion as of April 30, 2013 and October 31, 2012, respectively. Other finance receivables pledged to secure borrowings were $127 million and $164 million as of April 30, 2013 and October 31, 2012, respectively. For more information on assets and liabilities of consolidated VIEs and other securitizations accounted for as secured borrowings by our Financial Services segment, see Note 1, Summary of Significant Accounting Policies.

Finance Revenues

The following table presents the components of our Finance revenues, net:

	Three Months Ended April 30,						Six Months Ended April 30,
(in millions)	2013			2012			2013			2012
Retail notes and finance leases revenue	$	20		$	26		$	41		$	52
Wholesale notes interest	19			22			39			45
Operating lease revenue	12			11			24			20
Retail and wholesale accounts interest	7			8			13			18
Gross finance revenues	58			67			117			135
Less: Intercompany revenues	(19		)	(24		)	(39		)	(48		)
Finance revenues	$	39		$	43		$	78		$	87

5. Allowance for Doubtful Accounts

Our two portfolio segments, retail and wholesale, each consist of one class of receivable based on: (i) initial measurement attributes of the receivables, and (ii) the assessment and monitoring of risk and performance of the receivables. For more information, see Note 4, Finance Receivables.

The following tables present the activity related to our allowance for doubtful accounts for our retail portfolio segment, wholesale portfolio segment, and trade and other receivables:

	Three Months Ended April 30, 2013										Three Months Ended April 30, 2012
(in millions)	Retail Portfolio			Wholesale Portfolio		Trade and Other Receivables		Total			Retail Portfolio			Wholesale Portfolio			Trade and Other Receivables		Total
Allowance for doubtful accounts, at beginning of period	$	23		$	2	$	24	$	49		$	28		$	3		$	16	$	47
Provision for doubtful accounts, net of recoveries	1			—		10		11			—			(1		)	1		—
Charge-off of accounts(A)	(3		)	—		—		(3		)	(2		)	—			—		(2		)
Other(B)	1			—		—		1			—			—			—		—
Allowance for doubtful accounts, at end of period	$	22		$	2	$	34	$	58		$	26		$	2		$	17	$	45

16

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

	Six Months Ended April 30, 2013										Six Months Ended April 30, 2012
(in millions)	Retail Portfolio			Wholesale Portfolio		Trade and Other Receivables		Total			Retail Portfolio			Wholesale Portfolio			Trade and Other Receivables			Total
Allowance for doubtful accounts, at beginning of period	$	27		$	—	$	24	$	51		$	31		$	3		$	16		$	50
Provision for doubtful accounts, net of recoveries	(1		)	2		10		11			(2		)	(1		)	3			—
Charge-off of accounts(A)	(6		)	—		—		(6		)	(3		)	—			(2		)	(5		)
Other(B)	2			—		—		2			—			—			—			—
Allowance for doubtful accounts, at end of period	$	22		$	2	$	34	$	58		$	26		$	2		$	17		$	45

_________________________

(A) We repossess sold and leased vehicles on defaulted finance receivables and leases, and place them into Inventories. Losses recognized at the time of repossession and charged against the allowance for doubtful accounts were less than $1 million for both the three and six months ended April 30, 2013 and $2 million and $3 million for the three and six months ended April 30, 2012, respectively.

(B) Amounts include currency translation.

The accrual of interest income is discontinued on certain impaired finance receivables. Impaired finance receivables include accounts with specific loss reserves and certain accounts that are on non-accrual status. In certain cases, we continue to collect payments on our impaired finance receivables.

The following table presents information regarding impaired finance receivables:

	April 30, 2013						October 31, 2012
(in millions)	Retail Portfolio		Wholesale Portfolio		Total		Retail Portfolio		Wholesale Portfolio		Total
Impaired finance receivables with specific loss reserves	$	12	$	—	$	12	$	14	$	—	$	14
Impaired finance receivables without specific loss reserves	1		—		1		1		—		1
Specific loss reserves on impaired finance receivables	7		—		7		9		—		9
Finance receivables on non-accrual status	9		—		9		10		—		10

For the impaired finance receivables in the retail portfolio as of April 30, 2013 and 2012, the average balances of those receivables were $13 million and $17 million during the six months ended April 30, 2013 and 2012, respectively.

The Company uses the aging of its receivables as well as other inputs when assessing credit quality. The following table presents the aging analysis for finance receivables:

	April 30, 2013						October 31, 2012
(in millions)	Retail Portfolio		Wholesale Portfolio		Total		Retail Portfolio		Wholesale Portfolio		Total
Current, and up to 30 days past due	$	923	$	1,142	$	2,065	$	965	$	1,126	$	2,091
30-90 days past due	36		4		40		72		1		73
Over 90 days past due	9		2		11		11		1		12
Total finance receivables	$	968	$	1,148	$	2,116	$	1,048	$	1,128	$	2,176

6. Inventories

The following table presents the components of Inventories:

(in millions)	April 30, 2013		October 31, 2012
Finished products	$	852	$	833
Work in process	111		136
Raw materials	513		568
Total inventories	$	1,476	$	1,537

17

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

7. Debt

(in millions)	April 30, 2013		October 31, 2012
Manufacturing operations:
Senior Secured Term Loan Credit Facility, as Amended, due 2017, net of unamortized discount of $5 and $9, respectively	$	693	$	991
8.25% Senior Notes, due 2021, net of unamortized discount of $23 and $28, respectively	1,177		872
3.0% Senior Subordinated Convertible Notes, due 2014, net of unamortized discount of $38 and $50, respectively	532		520
Debt of majority-owned dealerships	43		60
Financing arrangements and capital lease obligations	87		140
Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040	225		225
Promissory Note	25		30
Financed lease obligations	209		—
Other	59		67
Total manufacturing operations debt	3,050		2,905
Less: Current portion	122		172
Net long-term manufacturing operations debt	$	2,928	$	2,733

(in millions)	April 30, 2013		October 31, 2012
Financial Services operations:
Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2019	$	805	$	994
Bank revolvers, at fixed and variable rates, due dates from 2013 through 2019	861		763
Commercial paper, at variable rates, matured in 2013	—		31
Borrowings secured by operating and finance leases, at various rates, due serially through 2017	65		78
Total financial services operations debt	1,731		1,866
Less: Current portion	657		1,033
Net long-term financial services operations debt	$	1,074	$	833

Manufacturing Operations

Senior Secured Term Loan Credit Facility, as Amended

In August 2012, NIC and Navistar, Inc. signed a definitive credit agreement relating to a senior secured, term loan credit facility in an aggregate principal amount of $1 billion (the "Term Loan Credit Facility") and borrowed an aggregate principal amount of $1 billion under the Term Loan Credit Facility. The Term Loan Credit Facility agreement required quarterly principal amortization payments of 0.25% of the aggregate principal amount, with the balance due at maturity.

In April 2013, the Term Loan Credit Facility was amended (the “Amended Term Loan Credit Facility”), to: (i) change the maturity date of all borrowings under the Term Loan Credit Facility to August 17, 2017, (ii) lower the interest on all borrowings under the Term Loan Credit Facility to a rate equal to a base rate plus a spread of 450 basis points, or a Eurodollar rate plus a spread of 450 basis points with a London Interbank Offered Rate (“LIBOR”) floor that was reduced to 125 basis points, (iii) provide additional operating flexibility, and (iv) remove certain pledged assets as collateral from the Term Loan Credit Facility.

In April 2013, Navistar, Inc. used proceeds derived from the March 2013 sale of additional 8.25% Senior Notes due 2021 (the "Senior Notes"), as described below, to make a principal repayment of $300 million against the Term Loan Credit Facility (the "April 2013 Principal Repayment"). As a result of the April 2013 Principal Repayment, no further quarterly principal payments are required. In the second quarter of 2013, the Company recorded charges of $13 million related to the April 2013 Principal Repayment and amendment of the Term Loan Credit Facility. The charges were recognized in Other expense (income), net, and included the write-off of related discount and debt issuance costs and a prepayment premium fee.

18

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

Senior Notes

In October 2009, we completed the sale of $1 billion aggregate principal amount of our Senior Notes. In March 2013, we completed the sale of an additional $300 million aggregate principal amount of Senior Notes. Interest related to the Senior Notes is payable on May 1 and November 1 of each year until the maturity date of November 1, 2021. The Senior Notes are senior unsecured obligations of the Company.

From the March 2013 sale of additional Senior Notes, the Company received net proceeds of approximately $310 million, which included an offering premium of $4 million and accrued interest of $10 million, offset by underwriter fees of $4 million. The debt issuance costs were recorded in Other noncurrent assets and will be amortized through Interest expense. Both the offering premium and the debt issuance costs will be accreted over the life of the Senior Notes. As a result of the transaction, the effective interest rate of the Senior Notes is now 8.5%. The proceeds from the March 2013 sale of additional Senior Notes were used to make the April 2013 principal payment against the Term Loan Credit Facility.

On or after November 1, 2014, the Company can redeem all or part of the Senior Notes during the twelve-month period beginning on November 1, 2014, 2015, 2016, 2017, and thereafter at a redemption price equal to 104.125%, 102.75%, 101.375%, and 100%, respectively, of the principal amount of the notes redeemed.

In addition, not more than once during each twelve-month period ending on November 1, 2010, 2011, 2012, 2013, and 2014, the Company may redeem up to $50 million in principal amount of the Senior Notes in each such twelve-month period, at a redemption price equal to 103% of the principal amount of the Senior Notes redeemed, plus accrued and unpaid interest, if any. The Company exercised this early redemption feature for a total principal amount of $100 million, by redeeming $50 million of Senior Notes on November 1, 2011 and an additional $50 million of Senior Notes on November 2, 2011. In the first quarter of 2012, the Company recorded $8 million of charges related to the early redemption premium and write-off of related discount and debt issuance costs.

The Company may also redeem the Senior Notes at its election in whole or part at any time prior to November 1, 2014 at a redemption price equal to 100% of the principal amount thereof plus the applicable premium, plus accrued and unpaid interest, to the redemption date. The applicable premium is defined as the greater of: 1% of the principal amount and the excess, if any, of (i) the present value as of such date of redemption of (A) the redemption price of such note on November 1, 2014, plus (B) all required interest payments due on such note through November 1, 2014, computed using a discount rate equal to the Treasury Rate (as defined in the debt agreement), plus 50 basis points over (ii) the then-outstanding principal of such note.

Amended and Restated Asset-Based Credit Facility

In August 2012, Navistar, Inc. entered into an amended and restated asset-based credit agreement in an aggregate principal amount of $175 million (the "Amended and Restated Asset-Based Credit Facility"). In April 2013, the Amended and Restated Asset-Based Credit Facility was amended to include used truck inventory in the borrowing base. Additionally, the borrowing base of the facility is secured by a first priority security interest in Navistar, Inc.'s aftermarket parts inventory that is stored at certain parts distribution centers, storage facilities and third-party processor or logistics provider locations.

Also in April 2013, the maturity date of the Amended and Restated Asset-Based Credit Facility automatically extended to May 18, 2017, as a result of the modification to the maturity date of the Term Loan Credit Facility, as described above. The facility contains customary provisions for financings of this type, including, without limitation, representations and warranties, affirmative and negative covenants and events of default. All borrowings under the Amended and Restated Asset-Based Credit Facility accrue interest at a rate equal to a base rate or an adjusted LIBOR rate plus a spread. The spread, which will be based on an availability-based measure, ranges from 175 basis points to 225 basis points for Base Rate borrowings and 275 basis points to 325 basis points for LIBOR borrowings. The initial LIBOR spread is 275 basis points. As of April 30, 2013, we had no borrowings under the Amended and Restated Asset-Based Credit Facility.

Financed Lease Obligations

We have accounted for as borrowings certain third-party equipment financings by GE, our preferred source of retail customer financing for equipment offered by us and our dealers in the U.S. The initial transactions do not qualify for revenue recognition as we retain substantial risks of ownership in the leased property. As a result, the proceeds from the transfer are recorded as an obligation and amortized to revenue over the term of the financing. The remaining obligation will be amortized through 2018 with interest rates ranging from 2.8% to 7.6%. In the second quarter of 2013, the Company recorded certain out-of-period adjustments for the correction of prior-period errors, which resulted in the financed lease obligations balance as of October 31, 2012 being understated by $167 million. For more information, see Note 1, Summary of Significant Accounting Policies.

19

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

Financial Services Operations

In February 2013, NFC completed the sale of $200 million of two-year investor notes secured by assets of the wholesale note owner trust. Proceeds were used to reduce borrowings under the variable funding notes ("VFN") facility. In conjunction with this sale, and in accordance with the terms of the VFN facility, the maximum capacity of the VFN facility was reduced from $750 million to $500 million. In March 2013, the maturity date of the VFN facility was extended from August 2013 to March 2014.

In December 2012, our Mexican financial services operation settled all of its commercial paper. The commercial paper program expired in February 2013.

8. Postretirement Benefits

Defined Benefit Plans

We provide postretirement benefits to a substantial portion of our employees and retirees. Costs associated with postretirement benefits include pension and postretirement health care expenses for employees, retirees, and surviving spouses and dependents. Generally, the pension plans are non-contributory. Our policy is to fund the pension plans in accordance with applicable U.S. and Canadian government regulations and to make additional contributions from time to time. For the three and six months ended April 30, 2013, we contributed $30 million and $57 million, respectively, and for the three and six months ended April 30, 2012, we contributed $53 million and $82 million, respectively, to our pension plans to meet regulatory funding requirements. We currently anticipate additional contributions of $109 million to our pension plans during the remainder of 2013.

We primarily fund other post-employment benefit ("OPEB") obligations, such as retiree medical, in accordance with a 1993 Settlement Agreement (the "1993 Settlement Agreement"), which requires us to fund a portion of the plans' annual service cost to a retiree benefit trust (the "Base Trust"). The 1993 Settlement Agreement resolved a class action lawsuit originally filed in 1992 regarding the restructuring of the Company's then applicable retiree health care and life insurance benefits. Contributions for the six months ended April 30, 2013 and 2012, as well as anticipated contributions for the remainder of 2013, are not material.

The Early Retiree Reinsurance Program ("ERRP") was created under the Patient Protection and Affordable Care Act ("PPACA") of 2010 to provide temporary financial assistance to health plan sponsors who provide retirement health coverage to pre-Medicare retirees. Under the terms of ERRP, no amounts were collected and deposited into the Base Trust in the six months ended April 30, 2013, compared to $3 million collected and deposited into the Base Trust in the six months ended April 30, 2012. In the three months ended April 30, 2013 and 2012, no amounts were collected and deposited into the Base Trust.

Components of Net Periodic Benefit Expense

The following table presents the components of net postretirement benefits expense included in our Consolidated Statements of Operations:

	Three Months Ended April 30,												Six Months Ended April 30,
	Pension Benefits						Health and Life Insurance Benefits						Pension Benefits						Health and Life Insurance Benefits
(in millions)	2013			2012			2013			2012			2013			2012			2013			2012
Service cost for benefits earned during the period	$	5		$	4		$	2		$	2		$	10		$	8		$	4		$	4
Interest on obligation	36			43			16			21			72			86			31			42
Amortization of cumulative loss	32			27			8			11			64			55			15			20
Amortization of prior service benefit	—			—			(1		)	(1		)	—			—			(2		)	(2		)
Contractual termination benefits	—			—			—			—			—			—			—			(3		)
Premiums on pension insurance	1			1			—			—			1			1			—			—
Expected return on assets	(47		)	(48		)	(9		)	(9		)	(94		)	(96		)	(17		)	(18		)
Net postretirement benefits expense	$	27		$	27		$	16		$	24		$	53		$	54		$	31		$	43

20

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

Defined Contribution Plans and Other Contractual Arrangements

Our defined contribution plans cover a substantial portion of domestic salaried employees and certain domestic represented employees. The defined contribution plans contain a 401(k) feature and provide most participants with a matching contribution from the Company. Effective February 1, 2013, the Company changed the timing for depositing the matching contributions to the end of the calendar year. Many participants covered by the plans receive annual Company contributions to their retirement accounts based on an age-weighted percentage of the participant's eligible compensation for the calendar year. Defined contribution expense pursuant to these plans was $8 million and $15 million in the three and six months ended April 30, 2013, respectively, and $14 million and $24 million for the three and six months ended April 30, 2012, respectively.

In accordance with the 1993 Settlement Agreement, an independent Retiree Supplemental Benefit Trust (the "Supplemental Trust") was established. The Supplemental Trust, and the benefits it provides to certain retirees, is not part of the Company's consolidated financial statements. The assets of the Supplemental Trust arise from three sources: (i) the Company's 1993 contribution to the Supplemental Trust of 25.5 million shares of our Class B common stock, which were subsequently sold by the Supplemental Trust prior to 2000, (ii) contingent profit-sharing contributions made by the Company, and (iii) net investment gains on the Supplemental Trust's assets, if any.

The Company's contingent profit sharing obligations will continue until certain funding targets defined by the 1993 Settlement Agreement are met ("Profit Sharing Cessation"). Upon Profit Sharing Cessation, the Company would assume responsibility for (i) establishing the investment policy for the Supplemental Trust, (ii) approving or disapproving of certain additional supplemental benefits to the extent such benefits would result in higher expenditures than those contemplated upon the Profit Sharing Cessation, and (iii) making additional contributions to the Supplemental Trust as necessary to make up for investment and/or actuarial losses.We have recorded no profit sharing accruals based on our estimate of 2013 results.

9. Income Taxes

We compute on a quarterly basis an estimated annual effective tax rate considering ordinary income and related income tax expense. U.S. results in 2013, as well as certain foreign results in both 2013 and 2012, are excluded from ordinary income due to ordinary losses for which no benefit can be recognized. Ordinary income refers to income (loss) before income tax expense excluding significant unusual or infrequently occurring items. The tax effect of a significant unusual or infrequently occurring item is recorded in the interim period in which it occurs. Items included in income tax expense in the periods in which they occur include the tax effects of material restructurings and impairments, cumulative effect of changes in tax laws or rates, foreign exchange gains and losses, adjustments to uncertain tax positions, and adjustments to our valuation allowance due to changes in judgment regarding the ability to realize deferred tax assets in future years.

We evaluated the need to maintain or establish a valuation allowance for deferred tax assets based on our assessment of whether it is more likely than not that deferred tax benefits will be realized through the generation of future taxable income. Appropriate consideration is given to all available evidence, both positive and negative, in assessing the need for a valuation allowance. We continue to maintain a valuation allowance on our U.S. deferred tax assets, as well as certain foreign deferred tax assets, that we believe, on a more-likely-than-not basis, will not be realized. For all remaining deferred tax assets, while we believe that it is more likely than not that they will be realized, we believe that it is reasonably possible that additional deferred tax asset valuation allowances could be required in the next twelve months.

In 2012, our evaluation resulted in the determination that a significant portion of our valuation allowance on our Canadian deferred tax assets could be released. The qualitative and quantitative analysis of current and expected earnings, industry volumes, tax planning strategies, and general business risks resulted in a more likely than not conclusion of being able to realize a significant portion of our Canadian deferred tax assets. We have realized the benefits of the shift in our Canadian business model from a truck manufacturer to a truck distributor, combined with our existing Parts business. As a result of our analysis, we recognized an income tax benefit of $181 million from the release of valuation allowances in the second quarter of 2012.

We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of April 30, 2013, the amount of liability for uncertain tax positions was $84 million. If the unrecognized tax benefits are recognized, $78 million would impact our effective tax rate. However, to the extent we continue to maintain a full valuation allowance against certain deferred tax assets, the effect may be in the form of an increase in the deferred tax asset related to our net operating loss carry forward, which would be offset by a full valuation allowance.

21

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

We recognize interest and penalties related to uncertain tax positions as part of Income tax benefit (expense). For the three and six months ended April 30, 2013, the total interest and penalties related to our uncertain tax positions were $2 million and $6 million respectively, reflecting the ongoing resolution of audits in various jurisdictions.

We have open tax years back to 2001 with various significant taxing jurisdictions including the U.S., Canada, Mexico, and Brazil. In connection with the examination of tax returns, contingencies may arise that generally result from differing interpretations of applicable tax laws and regulations as they relate to the amount, timing, or inclusion of revenues or expenses in taxable income, or the sustainability of tax credits to reduce income taxes payable. We believe we have sufficient accruals for our contingent tax liabilities. Interim tax provisions include amounts considered sufficient to pay assessments that may result from examinations of prior year tax returns, although actual results may differ. While it is probable that the liability for unrecognized tax benefits may increase or decrease during the next twelve months, we do not expect any such change would have a material effect on our financial condition, results of operations, or cash flows.

10. Fair Value Measurements

For assets and liabilities measured at fair value on a recurring and nonrecurring basis, a three-level hierarchy of measurements based upon observable and unobservable inputs is used to arrive at fair value. Observable inputs are developed based on market data obtained from independent sources, while unobservable inputs reflect our assumptions about valuation based on the best information available in the circumstances. Depending on the inputs, we classify each fair value measurement as follows:

• Level 1—based upon quoted prices for identical instruments in active markets,

• Level 2—based upon quoted prices for similar instruments, prices for identical or similar instruments in markets that are not active, or model-derived valuations, all of whose significant inputs are observable, and

• Level 3—based upon one or more significant unobservable inputs.

The following section describes key inputs and assumptions in our valuation methodologies:

Cash Equivalents and Restricted Cash Equivalents—We classify highly liquid investments, with an original maturity of 90 days or less, including U.S. Treasury bills, federal agency securities, and commercial paper, as cash equivalents. The carrying amounts of cash and cash equivalents and restricted cash approximate fair value because of the short-term maturity and highly liquid nature of these instruments.

Marketable Securities—Our marketable securities portfolios are classified as available-for-sale and primarily include investments in U.S. government securities and commercial paper with a maturity of greater than 90 days from the date of purchase. We use quoted prices from active markets to determine fair value.

Derivative Assets and Liabilities—We measure the fair value of derivatives assuming that the unit of account is an individual derivative transaction and that each derivative could be sold or transferred on a stand-alone basis. We classify within Level 2 our derivatives that are traded over-the-counter and valued using internal models based on observable market inputs. In certain cases, market data is not available and we estimate inputs such as in situations where trading in a particular commodity is not active. Measurements based upon these unobservable inputs are classified within Level 3. For more information regarding derivatives, see Note 11, Financial Instruments and Commodity Contracts.

Guarantees—We provide certain guarantees of payments and residual values to specific counterparties. Fair value of these guarantees is based upon internally developed models that utilize current market-based assumptions and historical data. We classify these liabilities within Level 3. For more information regarding guarantees, see Note 12, Commitments and Contingencies.

22

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

The following table presents the financial instruments measured at fair value on a recurring basis:

	April 30, 2013								October 31, 2012
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Marketable securities:
U.S. Treasury bills	$	662	$	—	$	—	$	662	$	420	$	—	$	—	$	420
Other	71		—		—		71		46		—		—		46
Derivative financial instruments:
Foreign currency contracts	—		2		—		2		—		—		—		—
Total assets	$	733	$	2	$	—	$	735	$	466	$	—	$	—	$	466
Liabilities
Derivative financial instruments:
Commodity contracts	$	—	$	4	$	—	$	4	$	—	$	4	$	—	$	4
Foreign currency contracts	—		1		—		1		—		—		—		—
Guarantees	—		—		7		7		—		—		7		7
Total liabilities	$	—	$	5	$	7	$	12	$	—	$	4	$	7	$	11

The following tables present the changes for those financial instruments classified within Level 3 of the valuation hierarchy:

	Three Months Ended April 30,
	2013					2012
(in millions)	Guarantees			Commodity contracts		Guarantees			Commodity contracts
Balance at February 1	$	(7	)	$	—	$	(7	)	$	—
Total gains (losses) (realized/unrealized) included in earnings(A)	—			—		—			—
Transfers out of Level 3	—			—		—			—
Issuances	—			—		—			—
Settlements	—			—		—			—
Balance at April 30	$	(7	)	$	—	$	(7	)	$	—
Change in unrealized gains on assets and liabilities still held	$	—		$	—	$	—		$	—

	Six Months Ended April 30,
	2013					2012
(in millions)	Guarantees			Commodity contracts		Guarantees			Commodity contracts
Balance at November 1	$	(7	)	$	—	$	(6	)	$	(2	)
Total gains (losses) (realized/unrealized) included in earnings(A)	—			—		—			(1		)
Transfers out of Level 3	—			—		—			2
Issuances	—			—		(1		)	—
Settlements	—			—		—			1
Balance at April 30	$	(7	)	$	—	$	(7	)	$	—
Change in unrealized gains on assets and liabilities still held	$	—		$	—	$	—		$	—

_________________________

(A) For commodity contracts, losses are included in Cost of products sold.

23

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

The following table presents these financial instruments measured at fair value on a nonrecurring basis:

(in millions)	April 30, 2013		October 31, 2012
Level 2 financial instruments
Carrying value of impaired finance receivables (A)	$	12	$	14
Specific loss reserve	7		9
Fair value	$	5	$	5

_________________________

(A) Certain impaired finance receivables are measured at fair value on a nonrecurring basis. An impairment charge is recorded for the amount by which the carrying value of the receivables exceeds the fair value of the underlying collateral, net of remarketing costs. Fair values of the underlying collateral are determined by reference to dealer vehicle value publications adjusted for certain market factors.

In addition to the methods and assumptions we use for the financial instruments recorded at fair value as discussed above, we use the following methods and assumptions to estimate the fair value for our other financial instruments that are not marked to market on a recurring basis. The carrying amounts of Cash and cash equivalents, Restricted cash, and Accounts payable approximate fair values because of the short-term maturity and highly liquid nature of these instruments. Finance receivables generally consist of retail and wholesale accounts and retail and wholesale notes. The carrying amounts of Trade and other receivables and retail and wholesale accounts approximate fair values as a result of the short-term nature of the receivables. The carrying amounts of wholesale notes approximate fair values as a result of the short-term nature of the wholesale notes and their variable interest rate terms. The fair values of these financial instruments are classified as Level 1. Due to the nature of the aforementioned financial instruments, they have been excluded from the fair value amounts presented in the table below.

The fair values of our retail notes are estimated by discounting expected cash flows at estimated current market rates. The fair values of our retail notes are classified as Level 3 financial instruments.

The fair values of our debt instruments classified as Level 1 were determined using quoted market prices. Our Loan Agreement underlying the Tax Exempt Bonds is traded, but is illiquid, and as a result, is classified as Level 2. The fair values of our Level 3 debt instruments are generally determined using internally developed valuation techniques such as discounted cash flow modeling. Inputs such as discount rates and credit spreads reflect our estimates of assumptions that market participants would use in pricing the instrument and may be unobservable.

24

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

The following tables present the carrying values and estimated fair values of financial instruments:

	April 30, 2013
	Estimated Fair Value								Carrying Value
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Retail notes	$	—	$	—	$	478	$	478	$	478
Notes receivable	—		—		17		17		13
Liabilities
Debt:
Manufacturing operations
Senior Secured Term Loan Credit Facility, as Amended due 2017	—		—		687		687		693
8.25% Senior Notes, due 2021	1,322		—		—		1,322		1,177
3.0% Senior Subordinated Convertible Notes, due 2014(A)	585		—		—		585		532
Debt of majority-owned dealerships	—		—		43		43		43
Financing arrangements	—		—		54		54		83
Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040	—		245		—		245		225
Promissory Note	—		—		25		25		25
Financed lease obligations	—		—		209		209		209
Other	—		—		58		58		59
Financial Services operations
Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2019	—		—		807		807		805
Bank revolvers, at fixed and variable rates, due dates from 2013 through 2019	—		—		832		832		861
Borrowings secured by operating and finance leases, at various rates, due serially through 2017	—		—		65		65		65

	October 31, 2012
	Estimated Fair Value								Carrying Value
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Retail notes	$	—	$	—	$	613	$	613	$	618
Notes receivable	—		—		27		27		27
Liabilities
Debt:
Manufacturing operations
Senior Secured Term Loan Credit Facility, as Amended due 2017	—		—		1,047		1,047		991
8.25% Senior Notes, due 2021	899		—		—		899		872
3.0% Senior Subordinated Convertible Notes, due 2014(A)	514		—		—		514		520
Debt of majority-owned dealerships	—		—		60		60		60
Financing arrangements	—		—		102		102		136
Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040	—		234		—		234		225
Promissory Note	—		—		29		29		30
Other	—		—		67		67		67
Financial Services operations
Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2019	—		—		994		994		994
Bank revolvers, at fixed and variable rates, due dates from 2013 through 2019	—		—		734		734		763
Commercial paper, at variable rates, matured in 2013	31		—		—		31		31
Borrowings secured by operating and finance leases, at various rates, due serially through 2017	—		—		79		79		78

_________________________

(A) The carrying value represents the consolidated financial statement amount of the debt which excludes the allocation of the conversion feature to equity, while the fair value is based on quoted market prices for the convertible note which includes the equity feature.

25

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

11. Financial Instruments and Commodity Contracts

Derivative Financial Instruments

We use derivative financial instruments as part of our overall interest rate, foreign currency, and commodity risk management strategies to reduce our interest rate exposure, reduce exchange rate risk for transactional exposures denominated in currencies other than the functional currency, and minimize the effect of commodity price volatility. From time to time, we use foreign currency forward and option contracts to manage the risk of exchange rate movements that would affect the value of our foreign currency cash flows. Foreign currency exchange rate movements create a degree of risk by affecting the value of sales made and costs incurred in currencies other than the functional currency. From time to time, we also use commodity forward contracts to manage our exposure to variability in certain commodity prices. In 2009 in connection with the sale of our 3.0% Senior Subordinated Convertible Notes due 2014 (the "Convertible Notes"), we purchased call options for $125 million. The call options are intended to minimize share dilution associated with the Convertible Notes. As the call options and warrants are indexed to our common stock, we recognized them in permanent equity in Additional paid in capital, and will not recognize subsequent changes in fair value as long as the instruments remain classified as equity.

We generally do not enter into derivative financial instruments for speculative or trading purposes and did not during the three months ended April 30, 2013 and 2012. None of our derivatives qualified for hedge accounting treatment during the three months ended April 30, 2013 or 2012.

Certain of our derivative contracts contain provisions that require us to provide collateral if certain thresholds are exceeded. No collateral was provided at April 30, 2013 and $1 million was provided as collateral at October 31, 2012. Collateral is generally not required to be provided by our counter-parties for derivative contracts. We manage exposure to counter-party credit risk by entering into derivative financial instruments with various major financial institutions that can be expected to fully perform under the terms of such instruments. We do not anticipate nonperformance by any of the counter-parties. Our exposure to credit risk in the event of nonperformance by the counter-parties is limited to those assets that have been recorded, but have not yet been received in cash. At April 30, 2013 and October 31, 2012, our exposure to the credit risk of others was $2 million and zero, respectively.

Our financial services operations may use interest rate swaps or interest rate caps from time to time to manage exposure to fluctuations in interest rates by limiting the amount of fixed rate finance receivables that are funded with variable rate debt. The Mexican financial services operation uses cross currency swaps to limit exposure to fluctuations in the value of the peso, as required under Mexican bank credit facilities.

The fair values of all derivatives are recorded as assets or liabilities on a gross basis in our Consolidated Balance Sheets. The following table presents the fair values of our derivatives and their respective balance sheet locations:

	April 30, 2013
	Asset Derivatives			Liability Derivatives
(in millions)	Location in Consolidated Balance Sheets	Fair Value		Location in Consolidated Balance Sheets	Fair Value
Commodity contracts	Other current assets	$	—	Other current liabilities	$	4
Foreign currency contracts	Other current assets	2		Other current liabilities	1
Total fair value		$	2		$	5

	October 31, 2012
	Asset Derivatives			Liability Derivatives
(in millions)	Location in Consolidated Balance Sheets	Fair Value		Location in Consolidated Balance Sheets	Fair Value
Commodity contracts	Other current assets	$	—	Other current liabilities	$	3
Commodity contracts	Other noncurrent assets	—		Other noncurrent liabilities	2
Total fair value		$	—		$	5

26

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

The following table presents the location and amount of loss (gain) recognized in our Consolidated Statements of Operations related to derivatives:

	Location in Consolidated Statements of Operations	Amount of Loss (Gain) Recognized
		Three Months Ended April 30,					Six Months Ended April 30,
(in millions)		2013			2012		2013			2012
Cross currency swaps	Other expense (income), net	$	—		$	—	$	—		$	1
Foreign currency contracts	Other expense (income), net	1			1		2			(3		)
Commodity forward contracts	Costs of products sold	(2		)	—		(2		)	(1		)
Total loss (gain)		$	(1	)	$	1	$	—		$	(3	)

Foreign Currency Contracts

During 2013 and 2012, we entered into foreign exchange forward and option contracts as economic hedges of anticipated cash flows denominated in Canadian dollars, Brazilian reais, South African rand and Euros. All contracts were entered into to protect against the risk that the eventual cash flows resulting from certain transactions would be affected by changes in exchange rates between the U.S. dollar and the respective foreign currency.

The following table presents the outstanding foreign currency contracts as of April 30, 2013 and October 31, 2012:

(in millions)	Currency	Notional Amount		Maturity
As of April 30, 2013
Option collar contracts	EUR	€	16	April 2013 - October 2013
Forward exchange contract	CAD	C$	50	October 2013
Option collar contract	CAD	C$	50	October 2013
Option collar contract	BRL	US$	25	October 2013
As of October 31, 2012
Option collar contracts	EUR	€	25	October 2012 - April 2013

Commodity Forward Contracts

During 2013 and 2012, we entered into commodity forward contracts as economic hedges of our exposure to variability in commodity prices for diesel fuel and steel. As of April 30, 2013, we had outstanding diesel fuel contracts with aggregate notional values of $6 million and outstanding steel contracts with aggregate notional values of $39 million. The commodity forward contracts have maturity dates ranging from April 2013 to December 2013. As of October 31, 2012, we had outstanding diesel fuel contracts with aggregate notional values of $3 million and outstanding steel contracts with aggregate notional values of $61 million. All of these contracts were entered into to protect against the risk that the eventual cash flows related to purchases of the commodities will be affected by changes in prices.

Interest-Rate Contracts

From time to time, we enter into various interest-rate contracts, including interest-rate swaps, interest rate caps, and cross currency swaps. Interest-rate swaps involve the exchange of floating rate for fixed rate interest payments based on the contractual notional amounts in a single currency. As of April 30, 2013 and October 31, 2012, there were no interest rate swaps or caps outstanding. Cross currency swaps involve the exchange of notional amounts and interest payments in different currencies. As of April 30, 2013 and October 31, 2012, the notional amount of our outstanding cross currency swaps was $19 million and $39 million, respectively. We are exposed to interest rate and exchange rate risk as a result of our borrowing activities. The objective of these contracts is to mitigate fluctuations in earnings, cash flows, and fair value of borrowings.

27

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

12. Commitments and Contingencies

Guarantees

We occasionally provide guarantees that could obligate us to make future payments if the primary entity fails to perform under its contractual obligations. We have recognized liabilities for some of these guarantees in our Consolidated Balance Sheets as they meet the recognition and measurement provisions of U.S. GAAP. In addition to the liabilities that have been recognized, we are contingently liable for other potential losses under various guarantees. We do not believe that claims that may be made under such guarantees would have a material effect on our financial condition, results of operations, or cash flows.

In March 2010, we entered into a three-year operating agreement (with one-year automatic extensions and subject to early termination provisions) with GE (the "GE Operating Agreement"). Under the terms of the GE Operating Agreement, GE became our preferred source of retail customer financing for equipment offered by us and our dealers in the U.S. We provide GE a loss sharing arrangement for certain credit losses. The primary features of the loss sharing arrangement include us reimbursing GE for credit losses in excess of the first 10% of the original value of a financed contract. The Company’s exposure to loss is mitigated since receivables financed under the GE Operating Agreement are secured by the financed equipment. We do not carry the receivables financed under the GE Operating Agreement on our Consolidated Balance Sheets. There were $1.3 billion and $1.2 billion of outstanding finance receivables as of April 30, 2013 and October 31, 2012, respectively, financed through the GE Operating Agreement and subject to the loss sharing arrangement. The related originations of these outstanding finance receivables were $1.8 billion and $1.6 billion as of April 30, 2013 and October 31, 2012, respectively. Related to certain third-party equipment financings by GE and for which we have accounted for as borrowings, we have recognized equipment leased to others of $185 million and financed lease obligations of $209 million included in our Consolidated Balance Sheets as of April 30, 2013. For more information, see Note 1, Summary of Significant Accounting Policies.

Based on our historic experience of losses on similar finance receivables and GE’s first loss position, we do not believe our share of losses related to balances currently outstanding will be material. Historically, our losses, representing the entire loss amount, on similar finance receivables, measured as a percentage of the average balance of the related finance receivable, ranged from 0.3% to 2.1%. While under limited circumstances NFC retains the rights to originate retail customer financing, we expect retail finance receivables and retail finance revenues will continue to decline as our retail portfolio pays down.

For certain independent dealers’ wholesale inventory financed by third-party banks or finance companies, we provide limited repurchase agreements to the respective financing institution. The amount of losses related to these arrangements has not been material to our Consolidated Statements of Operations or Condensed Consolidated Statements of Cash Flows and the value of the guarantees and accruals recorded are not material to our Consolidated Balance Sheets.

We also have issued limited residual value guarantees in connection with various leases primarily financed by our financial services operations. The amounts of the guarantees are estimated and recorded. Our guarantees are contingent upon the fair value of the leased assets at the end of the lease term. The amount of losses related to these arrangements has not been material to our Consolidated Statements of Operations or Condensed Consolidated Statements of Cash Flows and the value of the guarantees and accruals recorded are not material to our Consolidated Balance Sheets.

We obtain certain stand-by letters of credit and surety bonds from third-party financial institutions in the ordinary course of business when required under contracts or to satisfy insurance-related requirements. The amount of available stand-by letters of credit and surety bonds was $62 million at April 30, 2013.

We extend credit commitments to certain truck fleet customers, which allow them to purchase parts and services from participating dealers. The participating dealers receive accelerated payments from us with the result that we carry the receivables and absorb the credit risk related to these customers. At April 30, 2013, we have $35 million of unused credit commitments outstanding under this program.

In addition, as of April 30, 2013, we have entered into various purchase commitments of $35 million and contracts that have cancellation fees of $224 million with various expiration dates through 2019.

In the ordinary course of business, we also provide routine indemnifications and other guarantees, the terms of which range in duration and often are not explicitly defined. We do not believe these will result in claims that would have a material impact on our financial condition, results of operations, or cash flows.

The terms of the Ford/Navistar Settlement Agreement of January 9, 2009 (as defined and described below) require us to indemnify Ford with respect to intellectual property infringement claims, if any, that are brought against Ford or others that use the 6.0 liter or 6.4 liter engines on behalf of Ford. The maximum amount of future payments that we could potentially be

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(Unaudited)

required to pay under the indemnification would depend on the magnitude of potential infringement claims and the associated damages and cannot currently be determined. For more information, see Kruse vs. Ford, below.

Environmental Liabilities

We have been named a potentially responsible party ("PRP"), in conjunction with other parties, in a number of cases arising under an environmental protection law, the Comprehensive Environmental Response, Compensation, and Liability Act, popularly known as the "Superfund" law. These cases involve sites that allegedly received wastes from current or former Company locations. Based on information available to us which, in most cases, consists of data related to quantities and characteristics of material generated at current or former Company locations, material allegedly shipped by us to these disposal sites, as well as cost estimates from PRPs and/or federal or state regulatory agencies for the cleanup of these sites, a reasonable estimate is calculated of our share of the probable costs, if any, and accruals are recorded in our consolidated financial statements. These accruals are generally recognized no later than upon completion of the remedial feasibility study and are not discounted to their present value. We review all accruals on a regular basis and believe that, based on these calculations, our share of the potential additional costs for the cleanup of each site will not have a material effect on our financial condition, results of operations, or cash flows.

Three sites formerly owned by us; (i) Solar Turbines in San Diego, California, (ii) the Canton Plant in Canton, Illinois, and (iii) Wisconsin Steel in Chicago, Illinois; were identified as having soil and groundwater contamination. Two sites in Sao Paulo, Brazil, where we are currently operating, were identified as having soil and groundwater contamination. While investigations and cleanup activities continue at these and other sites, we believe that we have adequate accruals to cover costs to complete the cleanup of all sites.

We have accrued $24 million for these and other environmental matters, which are included within Other current liabilities and Other noncurrent liabilities, as of April 30, 2013. The majority of these accrued liabilities are expected to be paid subsequent to 2013.

Along with other vehicle manufacturers, we have been subject to an increased number of asbestos-related claims in recent years. In general, these claims relate to illnesses alleged to have resulted from asbestos exposure from component parts found in older vehicles, although some cases relate to the alleged presence of asbestos in our facilities. In these claims, we are generally not the sole defendant, and the claims name as defendants numerous manufacturers and suppliers of a wide variety of products allegedly containing asbestos. We have strongly disputed these claims, and it has been our policy to defend against them vigorously. Historically, the actual damages paid out to claimants have not been material in any year to our financial condition, results of operations, or cash flows. It is possible that the number of these claims will continue to grow, and that the costs for resolving asbestos related claims could become significant in the future.

Legal Proceedings

Overview

We are subject to various claims arising in the ordinary course of business, and are party to various legal proceedings that constitute ordinary, routine litigation incidental to our business. The majority of these claims and proceedings relate to commercial, product liability, and warranty matters. In addition, from time to time we are subject to various claims and legal proceedings related to employee compensation, benefits, and benefits administration including, but not limited to, compliance with the Employee Retirement Income Security Act of 1974, as amended, and Department of Labor requirements. In our opinion, apart from the actions set forth below, the disposition of these proceedings and claims, after taking into account recorded accruals and the availability and limits of our insurance coverage, will not have a material adverse effect on our business or our financial condition, results of operations, or cash flows.

Retiree Health Care Litigation

In April 2010, the UAW and others ("Plaintiffs") filed a "Motion of Plaintiffs Art Shy, UAW, et al for an Injunction to Compel Compliance with the 1993 Settlement Agreement" (the "Shy Motion") in the U.S. District Court for the Southern District of Ohio (the "Court") relating to a 1993 settlement agreement concerning postretirement healthcare obligations (the "1993 Settlement Agreement"). The Shy Motion sought to enjoin the Company from implementing an administrative change relating to prescription drug benefits under a healthcare plan for Medicare-eligible retirees (the "Part D Change"). Specifically, Plaintiffs claimed that the Part D Change violated the terms of the 1993 Settlement Agreement previously approved by the Court. That 1993 Settlement Agreement resolved a class action originally filed in 1992 regarding the restructuring of the Company's then applicable retiree health care and life insurance benefits. In May 2010, the Company filed its Opposition to the Shy Motion.

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(Unaudited)

The Part D Change was effective July 1, 2010, and made the Company's prescription drug coverage for post-age 65 retirees ("Plan 2 Retirees") supplemental to the coverage provided by Medicare. Plan 2 retirees paid the premiums for Medicare Part D drug coverage under the Part D Change.

In February 2011, the Court ruled on the Shy Motion (the "February 2011 Order"). The February 2011 Order sustained the Plaintiffs' argument that the Company did not have authority to unilaterally substitute Medicare Part D for the prescription drug benefit that Plaintiffs had been receiving under the 1993 Settlement Agreement. However, the February 2011 Order denied as moot Plaintiffs' request for injunctive relief to prevent the Company from implementing the Part D Change, because the change already had gone into effect. In February 2011, the Company filed a notice of appeal with the United States Court of Appeals for the Sixth Circuit (the "Appellate Court") concerning the February 2011 Order.

In September 2011, the Court issued an order directing the Company to reinstate the prescription drug benefit that was in effect before the Company unilaterally substituted Medicare Part D for the prior prescription drug benefit (the "September 2011 Order"). The September 2011 Order also requires the Company to reimburse Plan 2 Retirees for any Medicare Part D premiums they have paid since the Part D Change and the extra cost, if any, for the retirees' prescriptions under the Part D Change. In October 2011, the Company filed a notice of appeal with the Appellate Court concerning the September 2011 Order. The Appellate Court consolidated the Company's appeal of the February 2011 Order and the September 2011 Order, and in December 2012, the Appellate Court denied the Company's appeal, affirming the February 2011 and September 2011 Orders.

FATMA Notice

International Indústria de Motores da América do Sul Ltda. ("IIAA"), formerly known as Maxion International Motores S/A ("Maxion"), now a wholly owned subsidiary of the Company, received a notice in July 2010 from the State of Santa Catarina Environmental Protection Agency ("FATMA") in Brazil. The notice alleged that Maxion had sent wastes to a facility owned and operated by a company known as Natureza and that soil and groundwater contamination had occurred at the Natureza facility. The notice asserted liability against Maxion and assessed an initial penalty in the amount of R$2 million (the equivalent of approximately US$1 million at April 30, 2013), which is not due and final until all administrative appeals are exhausted. Maxion was one of numerous companies that received similar notices. IIAA filed an administrative defense in August 2010 and has not yet received a decision following that appearance. IIAA disputes the allegations in the notice and intends to vigorously defend itself.

Kruse vs. Ford

We have been made aware of the Kruse Technology Partnership ("Kruse") vs. Ford lawsuit (the "Kruse Case") filed against Ford regarding a potential patent infringement of three patents in the U.S. District Court for the Central District of California. An amended complaint against Ford was filed by Kruse in August 2010. The amended complaint alleges that Ford has infringed the patents by sale or use of engines, such as the Power Stroke diesel engines. Navistar formerly supplied Power Stroke diesel engines to Ford, although today Ford manufactures its own Power Stroke engines. In the Ford/Navistar Settlement Agreement of January 9, 2009, Navistar agreed to indemnify Ford for claims of infringement based upon Ford's manufacture, sale, or use of the 6.0 and 6.4 liter Power Stroke engines sold by Navistar to Ford. Ford has not requested Navistar to defend Ford at this time. The judge assigned to the Kruse Case has stayed the case pending resolution of a similar suit against Daimler Chrysler, Detroit Diesel, Freightliner, Western Star, Volkswagen, Cummins, and Chrysler Group. In November 2011, Kruse disclaimed all the claims in one of the patents (U.S. Patent 6,405,704), which effectively terminates the patent rights for this patent. The U.S. Patent Office ended the first re-examinations on the two remaining patents (U.S. Patent 6,058,904 and U.S. Patent 5,265,562), and ruled that these will be in force with all claims intact. The U.S. Patent Office agreed to commence a new re-examination of U.S. Patent 6,058,904 in April 2012 and U.S. Patent 5,265,562 in May 2012 as a result of third-party requests based upon substantial new questions of patentability. In July 2012, the U.S. Patent Office issued a Notice of Intent to allow all the claims in the two remaining Kruse patents, hence ending the second round of re-examination. Both patents expired on July 27, 2012. However, Kruse could still sue for any infringement prior to that date.

Based on our assessment of the facts underlying the claims in the above action, we are unable to provide meaningful quantification of how the final resolution of these claims may impact our future consolidated financial condition, results of operations, or cash flows.

Lis Franco de Toledo, et. al. vs. Syntex do Brasil and IIAA

In 1973, Syntex do Brasil Industria e Comercio Ltda. ("Syntex"), a predecessor of International Indústria de Motores da América do Sul Ltda. ("IIAA"), our Brazilian engine manufacturing subsidiary formerly known as MWM International Industria de Motores da America do Sul Ltda ("MWM"), filed a lawsuit in Brazilian court against Dr. Lis Franco de Toledo and

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(Unaudited)

others (collectively, "Lis Franco"). Syntex claimed Lis Franco had improperly terminated a contract which provided for the transfer from Lis Franco to Syntex of a patent for the production of a certain vaccine. Lis Franco filed a counterclaim alleging that he was entitled to royalties under the contract. In 1975, the Brazilian court ruled in favor of Lis Franco, a decision which was affirmed on appeal in 1976. In 1984, while the case was still pending, Syntex’ owner, Syntex Comercio e Participacoes Ltds ("Syntex Parent") sold the stock of Syntex to MWM, and in connection with that sale Syntex Parent agreed to indemnify and hold harmless MWM for any and all liabilities of Syntex, including its prior pharmaceutical operations (which had been previously spun-off to another subsidiary wholly-owned by the Syntex Parent) and any payments that might be payable under the Lis Franco lawsuit. In the mid to late 1990s, Syntex Parent was merged with an entity known as Wyeth Industria Farmaceutica LTDA ("Wyeth").

In 1999, Lis Franco amended its pleadings to add MWM to the lawsuit as a defendant. In 2000, Wyeth acknowledged to the Brazilian court its sole responsibility for amounts due in the Lis Franco lawsuit and MWM asked the court to be dismissed from that action. The judge denied that request. MWM appealed and lost.

In his pleadings, Lis Franco alleged that the royalties payable to him were approximately R$42 million. MWM believed the appropriate amount payable was approximately R$16 million. In December 2009, the court appointed expert responsible for the preparation of the royalty calculation filed a report with the court indicating royalty damages of approximately R$70 million. MWM challenged the expert’s calculation. In August 2010, the court asked the parties to consider the appointment of a new expert. MWM agreed with this request but Lis Franco objected and, in September 2010, the court accepted and ratified the expert’s calculation as of May 2010 in the amount of R$74 million and entered judgment against MWM.

In September 2010, MWM filed a motion for clarification of the decision which would suspend its enforcement. The Brazilian court denied this motion and MWM appealed the matter to the Rio de Janeiro State Court of Appeals (the "Court of Appeals"). In January 2011, the Court of Appeals granted the appeal and issued an injunction suspending the lower Court’s decision and judgment in favor of Lis Franco. In January 2011, MWM merged into IIAA and is now known as IIAA. An expert appointed by the Court of Appeals submitted his calculation report on October 24, 2011, and determined the amount to be R$10.85 million. The parties submitted comments to such report in December 2011, the expert replied to these comments and ratified his previous report in May 2012, and the parties again submitted comments to the expert's reply. The expert reviewed these comments and submitted a complementary report in December 2012 which determined the amount to be R$22 million (the equivalent of approximately US$11 million at April 30, 2013). The parties submitted comments to the complementary report in January 2013 and the Court of Appeals is now reviewing the expert’s complementary report and the parties' comments to that report.

In parallel, in May 2010, MWM filed a lawsuit in Sao Paulo, Brazil, against Wyeth seeking recognition that Wyeth is liable for any and all liabilities, costs, expenses, and payments related to the Lis Franco lawsuit. In September 2012, the Sao Paulo court ruled in favor of MWM and ordered Wyeth to pay, directly to the Estate of Lis Franco de Toledo and others and jointly with MWM, the amounts of the condemnation, to be determined at the end of the liquidation proceeding. The Sao Paulo court also ordered Wyeth to reimburse MWM for all expenses, including court costs and attorney fees associated with the case. The parties were notified of the decision in October 2012, to which MWM and Wyeth filed motions for clarification of certain issues, and in December 2012, the Sao Paulo court rejected both motions. In January 2013, Wyeth filed an appeal to the San Paulo court's December 2012 decision, and in April 2013, MWM filed an answer to the appeal.

In May 2013, the Court of Appeals determined the damages amount to be R$25 million (the equivalent of approximately US$13 million at April 30, 2013).

Deloitte & Touche LLP

In April 2011, the Company filed a complaint against Deloitte and Touche LLP ("Deloitte") in the Circuit Court of Cook County, Illinois County Department, Law Division ("Illinois Circuit Court") for fraud, fraudulent concealment, negligent misrepresentation, violation of the Illinois Consumer Fraud and Deceptive Business Practices Act, professional malpractice, negligence, breach of contract, and breach of fiduciary duty (the "Deloitte Case"). The matters giving rise to the allegations contained in the complaint arise from Deloitte's service as the Company's independent auditor prior to April 2006 and the Company is seeking monetary damages against Deloitte. In May 2011, Deloitte filed a Notice of Removal to remove the case to the United States District Court for the Northern District of Illinois. In June 2011, the Company filed in the federal court a motion to remand the case to Illinois Circuit Court. In July 2011, Deloitte filed a motion to dismiss the Company's complaint and in August 2011, the Company responded to Deloitte's motion to dismiss. In October 2011, the court remanded the case back to the Illinois Circuit Court and denied the motion to dismiss as moot. The Company amended its complaint in January 2012 in Illinois Circuit Court. In February 2012, Deloitte moved to dismiss the Company's amended complaint. In July 2012, the Illinois Circuit Court granted in part and denied in part Deloitte's motion to dismiss. Specifically, the Illinois Circuit Court

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(Unaudited)

dismissed without prejudice with leave to re-plead the Company's counts for fraud, fraudulent concealment and breach of fiduciary duty and otherwise denied Deloitte's motion with respect to the remaining causes of action. In December 2012, the parties reached a settlement. As a result of this settlement, in the three months ended January 31, 2013, the Company received cash proceeds of $35 million, which was recorded as a gain to Other expense (income), net, in the Company's Consolidated Statements of Operations.

Westbrook vs. Navistar. et. al.

In April 2011, a False Claims Act qui tam complaint against Navistar, Inc., Navistar Defense, LLC, a wholly owned subsidiary of the Company ("Navistar Defense"), and unrelated third parties was unsealed by the United States District Court for the Northern District of Texas. The complaint was initially filed under seal in August 2010 by a qui tam relator ("Westbrook") on behalf of the federal government. The complaint alleged violations of the False Claims Act based on allegations that parts of vehicles delivered by Navistar Defense were not painted according to the contract specification, and improper activities in dealing with one of the vendors who painted certain of the vehicle parts. The complaint seeks monetary damages and civil penalties on behalf of the federal government, as well as costs and expenses. After the complaint was unsealed, the U.S. government notified the Court that it declined to intervene at that time. Navistar, Inc. was served with the complaint in July 2011, and a scheduling order and a revised scheduling order was entered by the Court. In December 2011, the Court granted a motion by Navistar, Inc. and Navistar Defense, along with the other named defendants to judicially estop Westbrook and his affiliated company from participating in any recovery from the action, and to substitute his bankruptcy trustee as the only person with standing to pursue Westbrook's claims. In March 2012, the Court granted motions by Navistar, Inc., Navistar Defense, and the other named defendants to dismiss the complaint. The dismissal was without prejudice and Westbrook filed an amended complaint in April 2012. In May 2012, Navistar, Inc., Navistar Defense, and the other named defendants filed motions to dismiss the amended complaint. In addition, the parties jointly filed a motion to stay discovery pending resolution of the motions to dismiss. In July 2012, the court granted all of the defendants' motions to dismiss with prejudice, dismissing all of the claims except the claim against Navistar Defense for retaliation and the claim against Navistar, Inc. for retaliation, which was dismissed without prejudice. Plaintiff was granted leave to file an amended complaint including only the retaliation claims against Navistar Defense and Navistar, Inc. Westbrook did not file a retaliation claim against Navistar, Inc. and voluntarily dismissed without prejudice the retaliation claim against Navistar Defense. Westbrook also filed a motion for reconsideration of the dismissal of the False Claims Act claims against Navistar Defense which the court denied. The court issued final judgment dismissing the matter in July 2012. Westbrook filed a notice of appeal to the Fifth Circuit Court of Appeals ("Fifth Circuit") in August 2012 as to the Final Judgment and the Motion for Reconsideration as to Navistar Defense only. Westbrook filed a separate notice of appeal to the Fifth Circuit in August 2012 as to several district court orders, including the December 2011 order holding the Trustee, not Westbrook, to be the proper party in the case. In December 2012, Navistar Defense's Motion to Dismiss Westbrook's appeal was denied "without prejudice to reconsideration by the oral argument panel" by the Fifth Circuit.

Based on our assessment of the facts underlying the claims in the above action, we are unable to provide meaningful quantification of how the final resolution of these claims may impact our future consolidated financial condition, results of operations, or cash flows.

EPA Notice of Violation

In February 2012, Navistar, Inc. received a Notice of Violation ("NOV") from the U.S. Environmental Protection Agency ("EPA"). The NOV pertains to approximately 7,600 diesel engines which, according to EPA, were produced by Navistar, Inc. in 2010 and, therefore, should have met EPA's 2010 emissions standards. Navistar, Inc. previously provided information to EPA showing that the engines were in fact produced in 2009. The NOV contains EPA's conclusion that Navistar, Inc.'s alleged production of the engines in 2010 violated the Federal Clean Air Act. The NOV states that EPA reserves the right to file an administrative complaint or to refer this matter to the U.S. Department of Justice with a recommendation that a civil complaint be filed in federal district court. 

Based on our assessment of the facts underlying the NOV above, we are unable to provide meaningful quantification of how the final resolution of this matter may impact our future consolidated financial condition, results of operations or cash flows.

CARB Notice of Violation

In April 2013, Navistar, Inc. received a notice of violation and proposed settlement (“Notice”) from the California Air Resources Board (“CARB”). The Notice alleges violations of the California regulations relating to verification of after-treatment devices and proposed civil penalties of approximately $2 million, among other proposed settlement terms. The Company is in discussions with the CARB regarding this matter.

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(Unaudited)

Based on our assessment of the facts underlying the Notice from CARB, we are unable to provide meaningful quantification of how the final resolution of this matter may impact our future consolidated financial condition, results of operations or cash flows.

Shareholder Litigation

In March 2013, a putative class action complaint, alleging securities fraud, was filed against us by the Construction Workers Pension Trust Fund - Lake County and Vicinity, on behalf of itself and all other similarly situated purchasers of our common stock between the period of November 3, 2010 and August 1, 2012. A second class action complaint was filed in April 2013 by the Norfolk County Retirement System, individually and on behalf of all other similarly situated purchasers of our common stock between the period of June 9, 2010 and August 1, 2012. A third class action complaint was filed in April 2013 by Jane C. Purnell FBO Purnell Family Trust, on behalf of itself and all other similarly situated purchasers of our common stock between the period of November 3, 2010 and August 1, 2012. Each complaint named us as well as Daniel C. Ustian, our former President and Chief Executive Officer, and Andrew J. Cederoth, our current Executive Vice President and Chief Financial Officer as defendants. These complaints (collectively, the "10b-5 Cases") contain similar factual allegations which include, among other things, that we violated the federal securities laws by knowingly issuing materially false and misleading statements concerning our financial condition and future business prospects and that we misrepresented and omitted material facts in filings with the SEC concerning the timing and likelihood of EPA certification of our Advanced Exhaust Gas Recirculation ("EGR") technology to meet 2010 EPA emission standards. The plaintiffs in these matters seek compensatory damages and attorneys' fees, among other relief. In May 2013, motions to establish lead counsel status for the putative class were filed and an order was entered transferring and consolidating all cases before one judge and setting a briefing schedule to establish lead counsel status.

In March 2013, James Gould filed a derivative complaint on behalf of the Company against us and certain of our current and former directors and officers. The complaint alleges, among other things, that certain of our current and former directors and officers committed a breach of fiduciary duty, waste of corporate assets and were unjustly enriched in relation to similar factual allegations made in the 10b-5 Cases. The plaintiff in this matter seeks compensatory damages, certain corporate governance reforms, certain injunctive relief, disgorgement of the proceeds of certain defendants' profits from the sale of Company stock, and attorneys' fees, among other relief. Pursuant to a court order in May 2013, this matter has been stayed until the outcome of any motion to dismiss in the 10b-5 Cases.

Each of these matters is pending in the United States District Court, Northern District of Illinois.

Based on our assessment of the facts underlying these matters described above, we are unable to provide meaningful quantification of how the final resolution of these matters may impact our future consolidated financial condition, results of operations or cash flows.

6.4 Liter Diesel Engine Litigation

Plaintiff Steve Darne ("Darne") filed a putative class action lawsuit in May 2013 against Navistar, Inc. and Ford Motor Company in the federal court for the Northern District of Illinois. The complaint seeks to certify a class of United States owners and lessees of Ford vehicles powered by the 6.4L Power Stroke ® engine (and in the alternative purports to certify a class of Illinois owners and lessees) that Navistar, Inc. previously supplied to Ford. Darne alleges that Ford vehicles equipped with a 6.4L engine had numerous design and manufacturing defects and that Navistar, Inc. and Ford knew of such engine problems but failed to disclose them to consumers. Darne asserts claims against Navistar, Inc. based on theories of negligence, deceptive trade practices, consumer fraud, unjust enrichment, and intentional conduct. For relief, Darne seeks dollar damages sufficient to remedy the alleged defects, compensate the proposed class members for alleged incurred damages, and compensate plaintiff's counsel. Darne also asks the Court to award punitive damages and restitution/disgorgement.

Based on our assessment of the facts underlying the claims in the above action, we are unable to provide meaningful quantification of how the final resolution of these claims may impact our future consolidated financial condition, results of operations, or cash flows.

Other

U.S. Securities and Exchange Commission ("SEC") Inquiry

In June 2012, Navistar received an informal inquiry from the Chicago Office of the Enforcement Division of the SEC seeking a number of categories of documents for the periods dating back to November 1, 2010, relating to various accounting and disclosure issues. We received a formal order of private investigation in July 2012. We have received subsequent subpoenas from the SEC in connection with their inquiry, and we continue our full cooperation with the SEC in this matter. At this time,

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(Unaudited)

we are unable to predict the outcome of this matter or provide meaningful quantification of how the final resolution of this matter may impact our future consolidated financial condition, results of operations or cash flows.

Meeting U.S. Federal and State 2010 Emissions Standards Requirements

Truck and engine manufacturers continue to face significant governmental regulation of their products, especially in the areas of environment and safety. We have incurred, and will continue to incur, significant research, development, and tooling costs to design and produce our engine product lines to meet the EPA and CARB on-highway heavy duty diesel ("HDD") emission standards that have reduced the allowable levels of nitrogen oxide ("NOx") to the current limit of 0.20g NOx and include the required on-board diagnostics ("OBD"). The regulations requiring OBD began the initial phase-in during 2010 for truck engines and are a part of our product plans.

We attempted to meet these emissions standards using EGR until July 2012, when we announced that we changed our engine emission strategy for our HDD engines from an EGR-only strategy to a strategy of combining our EGR technology with Selective Catalytic Reduction ("SCR") after-treatment systems.

Since 2010, certain of our HDD engine families met EPA and CARB certification requirements by using emission credits we earned by producing low-NOx engines earlier than was required by the EPA. In January 2012, the EPA promulgated the Interim Final Rule establishing non-conformance penalties ("NCPs") for HDD engines, and we began using NCPs for trucks using certain of our HDD engines in 2012. In June 2012, the D.C. Circuit Court ruled that the EPA did not follow the required rulemaking processes and issued an order vacating the Interim Final Rule. The Company, as an intervenor in that action, asked for a rehearing, and in August 2012, the D.C. Circuit Court denied that request. The Court's ruling became final on August 24, 2012. Following that decision, some of our competitors filed a lawsuit asking the D.C. Circuit Court to invalidate the emission certificates issued to us under the Interim Final Rule. The D.C. Circuit Court has not yet ruled on this matter, and we cannot assure you that the court will rule in our favor.

Also in January 2012, the EPA published a Notice of Proposed Rulemaking for a final NCP rule (the "Final Rule"), which proposed to make NCPs available in model years 2012 and later for emissions of NOx above the 0.20g limit for both medium and heavy HDD engines. The EPA approved the Final Rule for heavy HDD engines on September 5, 2012, and indicated that it was still reviewing comments and data, and thus would not finalize NCPs at that time as to medium HDD engines, for which the Company has emissions credits expected to last into calendar year 2014. After approval of the Final Rule, the maximum NCP per heavy HDD engine was $3,775 for the remainder of 2012, and for 2013, it was adjusted to $4,287. Some of our competitors have challenged the Final Rule in the D.C. Circuit Court and have also filed a lawsuit asking the D.C. Circuit Court to invalidate the model year 2013 emission certificates issued to us under the Final Rule. The court has not yet ruled on these matters, and we cannot assure you the court will rule in our favor. 

In October 2012, we announced a definitive agreement with Cummins under which Cummins Emission Solutions will supply its SCR after-treatment system for our 13L engines, as well as other light and medium HDD engines. As a part of our expanded relationship with Cummins, we are offering the Cummins 15L as a part of our North American on-highway truck line-up. We phased in the Cummins 15L engine in December 2012.

In April 2013, we received EPA certification for certain of our high-volume 13L SCR engines. We anticipate phasing in our lower volume 13L SCR engines throughout 2013 in stages. Also in April 2013, we received OBD certification for all current applications. As a result, we did not experience any production gaps related to OBD certification.

CARB, and the corresponding agencies of nine other states that have adopted California's emission standards, do not allow engine certification using NCPs. Therefore, we were selling engines and trucks in these ten states (the "10 CARB States") using the NOx emission credits previously described. In February 2013, our remaining emission credits for heavy HDD engines were consumed or allocated to received orders. Production utilizing those credits is scheduled throughout the remainder of calendar year 2013. We may experience product gaps in the 10 CARB States for certain of the lower volume 13L EGR engines prior to full introduction of our SCR engines.

In the three and six months ended April 30, 2013, the Engine segment recorded charges totaling $12 million and $22 million, respectively, for NCPs for certain engine sales that did not otherwise comply with emissions standards, compared to charges totaling $10 million in both the three and six months ended April 30, 2012.

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(Unaudited)

13. Segment Reporting

The following is a description of our four reporting segments:

• Our Truck segment manufactures and distributes a full line of Class 4 through 8 trucks, buses, and military vehicles under the International and IC Bus ("IC") brands. Our Truck segment also produces concrete mixers under the Continental Mixers brand. In an effort to strengthen and maintain our dealer network, this segment occasionally acquires and operates dealer locations for the purpose of transitioning ownership.

• Our Engine segment designs and manufactures diesel engines for use globally, in Class 3 through 8 vehicles, as well as off-road applications. In North America, these engines primarily go into our trucks and buses. In Brazil, our Engine segment produces diesel engines, primarily under contract manufacturing arrangements, as well as under the MWM brand, for sale to OEMs in South America. In all other areas of the world, including North America, engines are sold under the MaxxForce brand name. Also included in the Engine segment are the operating results of BDP, which manages the sourcing, merchandising, and distribution of certain service parts we sell to Ford in North America.

• Our Parts segment provides customers with proprietary products needed to support the International commercial and military truck, IC Bus, MaxxForce engine lines, as well as our other product lines. Our Parts segment also provides a wide selection of other standard truck, trailer, and engine aftermarket parts. At April 30, 2013, this segment operated eleven regional parts distribution centers that provide 24-hour availability and shipment.

• Our Financial Services segment provides retail, wholesale, and lease financing of products sold by the Truck and Parts segments and their dealers within the U.S. and Mexico, as well as financing for wholesale accounts and selected retail accounts receivable.

Corporate contains those items that are not included in our four segments.

Potential Future Changes to Reporting Segments

Beginning in 2012, we renewed our focus on our primary markets, which are North American Class 4 through 8 trucks and buses, and realigned the Company around a more functionally-oriented structure in order to reduce overhead expenses and other costs. We implemented a new Return-on-Invested-Capital ("ROIC") methodology to assist with the evaluation of our portfolio of assets to validate their strategic and financial fit. We are using an ROIC decision framework to re-examine our individual businesses. This effort is ongoing, and may lead to divestitures of businesses or discontinuing engineering programs that are outside of our core operations or not performing to our expectations.

In the second quarter of 2013, our Chief Operating Decision Maker ("CODM") changed. We continue our ongoing efforts of realigning our management structure around the functional expertise needed to execute our core North American strategy. We believe this realignment will result in better execution of our strategies, streamline the decision making process, create better alignment towards a common objective, and reduce our operating costs. In the near future, we expect to complete these and any other changes to our organizational and reporting structures that will reflect how our new CODM will begin to assess the performance of our operating segments and make decisions about resource allocations.

Segment Profit (Loss)

We define segment profit (loss) as Net income (loss) from continuing operations attributable to Navistar International Corporation excluding Income tax benefit (expense). Operating results for interim reporting periods are not necessarily indicative of annual operating results.

Beginning in the first quarter of 2013, the Company began reporting the operating results of WCC and certain operating results of Monaco as discontinued operations in the Company's Consolidated statements of operations. For more information, see Note 2, Discontinued Operations and Other Divestitures. The 2012 selected financial information has been restated to reflect this change.

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(Unaudited)

The following tables present selected financial information for our reporting segments:

(in millions)	Truck			Engine			Parts		Financial Services(A)		Corporate and Eliminations			Total
Three Months Ended April 30, 2013
External sales and revenues, net	$	1,515		$	458		$	514	$	39	$	—		$	2,526
Intersegment sales and revenues	4			286			16		19		(325		)	—
Total sales and revenues, net	$	1,519		$	744		$	530	$	58	$	(325	)	$	2,526
Income (loss) from continuing operations attributable to NIC, net of tax	$	(109	)	$	(138	)	$	91	$	19	$	(216	)	$	(353	)
Income tax expense	—			—			—		—		(22		)	(22		)
Segment profit (loss)	$	(109	)	$	(138	)	$	91	$	19	$	(194	)	$	(331	)
Depreciation and amortization(B)	$	92		$	33		$	2	$	10	$	5		$	142
Interest expense	—			—			—		17		73			90
Equity in income (loss) of non-consolidated affiliates	—			1			3		—		—			4
Capital expenditures(B)(C)	16			16			—		1		2			35

(in millions)	Truck			Engine			Parts		Financial Services(A)		Corporate and Eliminations			Total
Three Months Ended April 30, 2012
External sales and revenues, net	$	2,316		$	440		$	462	$	43	$	—		$	3,261
Intersegment sales and revenues	2			454			34		24		(514		)	—
Total sales and revenues, net	$	2,318		$	894		$	496	$	67	$	(514	)	$	3,261
Income (loss) from continuing operations attributable to NIC, net of tax	$	(45	)	$	(108	)	$	41	$	26	$	(52	)	$	(138	)
Income tax benefit	—			—			—		—		123			123
Segment profit (loss)	$	(45	)	$	(108	)	$	41	$	26	$	(175	)	$	(261	)
Depreciation and amortization(B)	$	35		$	30		$	4	$	8	$	5		$	82
Interest expense	—			—			—		22		40			62
Equity in income (loss) of non-consolidated affiliates	(6		)	—			2		—		—			(4		)
Capital expenditures(B)(C)	16			36			5		1		15			73

(in millions)	Truck			Engine			Parts		Financial Services(A)		Corporate and Eliminations			Total
Six Months Ended April 30, 2013
External sales and revenues, net	$	3,171		$	870		$	1,044	$	78	$	—		$	5,163
Intersegment sales and revenues	26			614			38		39		(717		)	—
Total sales and revenues, net	$	3,197		$	1,484		$	1,082	$	117	$	(717	)	$	5,163
Income (loss) from continuing operations attributable to NIC, net of tax	$	(167	)	$	(165	)	$	177	$	41	$	(353	)	$	(467	)
Income tax expense	—			—			—		—		(37		)	(37		)
Segment profit (loss)	$	(167	)	$	(165	)	$	177	$	41	$	(316	)	$	(430	)
Depreciation and amortization(B)	$	134		$	72		$	5	$	19	$	12		$	242
Interest expense	—			—			—		35		129			164
Equity in income (loss) of non-consolidated affiliates	—			(1		)	4		—		—			3
Capital expenditures(B)(C)	31			69			1		1		5			107

36

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

(in millions)	Truck			Engine			Parts		Financial Services(A)		Corporate and Eliminations			Total
Six Months Ended April 30, 2012
External sales and revenues, net	$	4,427		$	860		$	896	$	87	$	—		$	6,270
Intersegment sales and revenues	13			893			69		48		(1,023		)	—
Total sales and revenues, net	$	4,440		$	1,753		$	965	$	135	$	(1,023	)	$	6,270
Income (loss) from continuing operations attributable to NIC, net of tax	$	(72	)	$	(228	)	$	91	$	53	$	(126	)	$	(282	)
Income tax benefit	—			—			—		—		199			199
Segment profit (loss)	$	(72	)	$	(228	)	$	91	$	53	$	(325	)	$	(481	)
Depreciation and amortization(B)	$	69		$	59		$	6	$	16	$	10		$	160
Interest expense	—			—			—		47		76			123
Equity in income (loss) of non-consolidated affiliates	(15		)	1			3		—		—			(11		)
Capital expenditures(B)(C)	32			76			12		2		54			176

(in millions)	Truck(B)		Engine		Parts		Financial Services		Corporate and Eliminations		Total
Segment assets, as of:
April 30, 2013	$	2,139	$	1,738	$	709	$	2,518	$	1,619	$	8,723
October 31, 2012	$	2,118	$	1,777	$	707	$	2,563	$	1,937	$	9,102

_________________________

(A) Total sales and revenues in the Financial Services segment include interest revenues of $46 million and $93 million for the three and six months ended April 30, 2013, respectively, and $56 million and $114 million for three and six months ended April 30, 2012, respectively.

(B) Includes amounts related to discontinued operations. For more information, see Note 2, Discontinued Operations and Other Divestitures.

(C) Exclusive of purchases of equipment leased to others.

14. Stockholders' Deficit

October 2012 Issuance of Common Stock

In October 2012, the Company completed a public offering of 10,666,666 shares of NIC common stock at a price of $18.75 per share and received proceeds, net of underwriting discounts, commissions, and offering expenses, of $192 million. In connection with the public offering, in November 2012, the underwriters elected to exercise a portion of an over-allotment option and purchased an additional 763,534 shares of NIC common stock at a price of $18.75 per share. The Company received proceeds from the exercise of the over-allotment, net of underwriting discounts and commissions, of $14 million in the three months ended January 31, 2013.

Share Repurchase Programs

In September 2011, a special committee of our Board of Directors authorized a share repurchase program for up to $175 million worth of the Company's common stock in the open market or in any private transaction.

In October 2011, the Company entered into a variable term accelerated share repurchase ("ASR") agreement with a third-party financial institution to purchase shares of common stock for an aggregate purchase price of $100 million. Under the ASR agreement, the Company paid the financial institution $100 million and received an initial delivery of 2,380,952 shares. The value of the delivered shares on the date of purchase was $80 million at $33.60 per share, and was included in Common stock held in treasury in our Consolidated Balance Sheets. The remaining $20 million was included in Additional paid in capital in our Consolidated Balance Sheets as of October 31, 2011.

In November 2011, the ASR program concluded and the Company received an additional 161,657 shares for a total of 2,542,609 shares. The final settlement was based upon the volume weighted average price of the Company's common stock (subject to a discount agreed upon with the financial institution) over an averaging period. With the conclusion of the agreement, the remaining $20 million included in Additional paid in capital was reclassified to Common stock held in treasury.

In October 2011, the Company entered into an open market share repurchase ("OMR") agreement with a third-party financial institution to purchase the remaining $75 million worth of the Company's common stock authorized by a special committee of

37

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

our Board of Directors in September 2011. The OMR commenced in November 2011, following the completion of the ASR program. In January 2012, the OMR concluded with the Company repurchasing 1,905,600 shares of our common stock. Repurchases of $70 million were settled in cash during the three months ended January 31, 2012, and the remaining $5 million was settled in cash during the three months ended April 30, 2012. The share repurchase program expired upon its completion.

15. Loss Per Share Attributable to Navistar International Corporation

The following table presents the information used in the calculation of our basic and diluted loss per share for continuing operations, discontinued operations, and net loss, all attributable to Navistar International Corporation:

	Three Months Ended April 30,						Six Months Ended April 30,
(in millions, except per share data)	2013			2012			2013			2012
Numerator:
Amounts attributable to Navistar International Corporation common stockholders:
Loss from continuing operations, net of tax	$	(353	)	$	(138	)	$	(467	)	$	(282	)
Loss from discontinued operations, net of tax	(21		)	(34		)	(30		)	(43		)
Net loss	$	(374	)	$	(172	)	$	(497	)	$	(325	)
Denominator:
Weighted average shares outstanding:
Basic	80.4			68.7			80.3			69.3
Effect of dilutive securities	—			—			—			—
Diluted	80.4			68.7			80.3			69.3
Loss per share amount attributable to Navistar International Corporation:
Basic:
Continuing operations	$	(4.39	)	$	(2.01	)	$	(5.82	)	$	(4.07	)
Discontinued operations	(0.26		)	(0.49		)	(0.37		)	(0.62		)
Net loss	$	(4.65	)	$	(2.50	)	$	(6.19	)	$	(4.69	)
Diluted:
Continuing operations	$	(4.39	)	$	(2.01	)	$	(5.82	)	$	(4.07	)
Discontinued operations	(0.26		)	(0.49		)	(0.37		)	(0.62		)
Net loss	$	(4.65	)	$	(2.50	)	$	(6.19	)	$	(4.69	)

The conversion rate on our 3% Senior Subordinated Convertible Notes, due in 2014 (the "Convertible Notes") is 19.891 shares of common stock per $1,000 principal amount of Convertible Notes, equivalent to an initial conversion price of $50.27 per share of common stock. In connection with the sale of the Convertible Notes, we sold warrants to various counterparties to purchase shares of our common stock from us at an exercise price of $60.14 per share. The Convertible Notes and warrants are anti-dilutive when calculating diluted earnings per share when our average stock price is less than $50.27 and $60.14, respectively.

We also purchased call options in connection with the sale of the Convertible Notes, covering 11.3 million shares at an exercise price of $50.27 per share, which are intended to minimize share dilution associated with the Convertible Notes; however under accounting guidance, these call options cannot be utilized to offset the dilution of the Convertible Notes for determining diluted earnings per share as they are anti-dilutive.

The computation of diluted earnings per share also excludes outstanding options and other common stock equivalents in periods where inclusion of such potential common stock instruments would be anti-dilutive.

For the three and six months ended April 30, 2013 and 2012, no dilutive securities were included in the computation of diluted loss per share since they would have been anti-dilutive due to the net loss attributable to Navistar International Corporation. Additionally, certain securities would have been excluded from the computation of earnings per share, as our average stock price was less than their respective exercise prices. For the three and six months ended April 30, 2013 the aggregate shares not included were 30.0 million and 29.0 million, respectively. In 2012, the aggregate shares not included were 28.0 million in both periods. In both the three and six months ended April 30, 2013 and 2012, the aggregate shares not included from the computation of earnings per share were primarily comprised of 11.3 million shares related to the warrants and 11.3 million shares related to the Convertible Notes.

38

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

16. Condensed Consolidating Guarantor and Non-guarantor Financial Information

The following tables set forth condensed consolidating balance sheets as of April 30, 2013 and October 31, 2012, and condensed consolidating statements of operations, condensed consolidating statements of comprehensive income (loss), and condensed consolidating statements of cash flows, all for the three months ended April 30, 2013 and 2012. Beginning in the first quarter of 2013, the Company began reporting the operating results of WCC and certain operating results of Monaco as discontinued operations. For more information, see Note 2, Discontinued Operations and Other Divestitures. The 2012 condensed consolidating statements of operations have been restated to reflect this change.

The information is presented as a result of Navistar, Inc.’s guarantee, exclusive of its subsidiaries, of NIC’s indebtedness under our Senior Notes and obligations under our Loan Agreement related to the Tax Exempt Bonds. Navistar, Inc. is a direct wholly-owned subsidiary of NIC. None of NIC’s other subsidiaries guarantee any of these notes or bonds. The guarantees are "full and unconditional", as those terms are used in Regulation S-X Rule 3-10, except that the guarantees will be automatically released in certain customary circumstances, such as when the subsidiary is sold or all of the assets of the subsidiary are sold, the capital stock is sold, when the subsidiary is designated as an "unrestricted subsidiary" for purposes of the indenture, upon liquidation or dissolution of the subsidiary or upon legal or covenant defeasance, or satisfaction and discharge of the notes. Separate financial statements and other disclosures concerning Navistar, Inc. have not been presented because management believes that such information is not material to investors. Within this disclosure only, "NIC" includes the financial results of the parent company only, with all of its wholly-owned subsidiaries accounted for under the equity method. Likewise, "Navistar, Inc.," for purposes of this disclosure only, includes the consolidated financial results of its wholly-owned subsidiaries accounted for under the equity method and its operating units accounted for on a consolidated basis. "Non-Guarantor Subsidiaries" includes the combined financial results of all other non-guarantor subsidiaries. "Eliminations and Other" includes all eliminations and reclassifications to reconcile to the consolidated financial statements. NIC files a consolidated U.S. federal income tax return that includes Navistar, Inc. and its U.S. subsidiaries. Navistar, Inc. has a tax allocation agreement ("Tax Agreement") with NIC which requires Navistar, Inc. to compute its separate federal income tax liability and remit any resulting tax liability to NIC. Tax benefits that may arise from net operating losses of Navistar, Inc. are not refunded to Navistar, Inc. but may be used to offset future required tax payments under the Tax Agreement. The effect of the Tax Agreement is to allow NIC, the parent company, rather than Navistar, Inc., to utilize current U.S. taxable losses of Navistar, Inc. and all other direct or indirect subsidiaries of NIC.

Condensed Consolidating Statement of Operations
For the Three Months Ended April 30, 2013							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Sales and revenues, net	$	—		$	1,493		$	2,293		$	(1,260	)	$	2,526
Costs of products sold	—			1,622			1,987			(1,246		)	2,363
Restructuring charges	—			4			2			—			6
All other operating expenses (income)	(48		)	349			125			57			483
Total costs and expenses	(48		)	1,975			2,114			(1,189		)	2,852
Equity in income (loss) of affiliates	(422		)	50			1			375			4
Income (loss) before income taxes	(374		)	(432		)	180			304			(322		)
Income tax expense	—			(1		)	(21		)	—			(22		)
Earnings (loss) from continuing operations	(374		)	(433		)	159			304			(344		)
Loss from discontinued operations, net of tax	—			—			(21		)	—			(21		)
Net income (loss)	(374		)	(433		)	138			304			(365		)
Less: Net income attributable to non-controlling interests	—			—			9			—			9
Net income (loss) attributable to Navistar International Corporation	$	(374	)	$	(433	)	$	129		$	304		$	(374	)

39

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

Condensed Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended April 30, 2013							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.					Eliminations and Other			Consolidated
Net income (loss) attributable to Navistar International Corporation	$	(374	)	$	(433	)	$	129	$	304		$	(374	)
Other comprehensive income (loss):
Foreign currency translation adjustment	3			—			2		(2		)	3
Defined benefit plans (net of tax of $1, $-, $1, $(1), and $1 respectively)	40			35			5		(40		)	40
Total other comprehensive income (loss)	43			35			7		(42		)	43
Total comprehensive income (loss) attributable to Navistar International Corporation	$	(331	)	$	(398	)	$	136	$	262		$	(331	)

Condensed Consolidating Statement of Operations
For the Six Months Ended April 30, 2013							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Sales and revenues, net	$	—		$	3,102		$	4,551		$	(2,490	)	$	5,163
Costs of products sold	—			3,217			3,896			(2,464		)	4,649
Restructuring charges	—			4			4			—			8
All other operating expenses (income)	(27		)	580			317			45			915
Total costs and expenses	(27		)	3,801			4,217			(2,419		)	5,572
Equity in income (loss) of affiliates	(524		)	104			(1		)	424			3
Income (loss) before income taxes	(497		)	(595		)	333			353			(406		)
Income tax expense	—			(12		)	(25		)	—			(37		)
Earnings (loss) from continuing operations	(497		)	(607		)	308			353			(443		)
Loss from discontinued operations, net of tax	—			—			(30		)	—			(30		)
Net income (loss)	(497		)	(607		)	278			353			(473		)
Less: Net income attributable to non-controlling interests	—			—			24			—			24
Net income (loss) attributable to Navistar International Corporation	$	(497	)	$	(607	)	$	254		$	353		$	(497	)

Condensed Consolidating Statement of Comprehensive Income (Loss)
For the Six Months Ended April 30, 2013							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.					Eliminations and Other			Consolidated
Net income (loss) attributable to Navistar International Corporation	$	(497	)	$	(607	)	$	254	$	353		$	(497	)
Other comprehensive income (loss):
Foreign currency translation adjustment	20			—			20		(20		)	20
Defined benefit plans (net of tax of $1, $-, $1, $(1), and $1 respectively)	78			70			8		(78		)	78
Total other comprehensive income (loss)	98			70			28		(98		)	98
Total comprehensive income (loss) attributable to Navistar International Corporation	$	(399	)	$	(537	)	$	282	$	255		$	(399	)

40

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

Condensed Consolidating Balance Sheet
As of April 30, 2013							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Assets
Cash and cash equivalents	$	218		$	36		$	251		$	—		$	505
Marketable securities	501			—			232			—			733
Restricted cash	25			7			85			—			117
Finance and other receivables, net	8			165			2,806			(12		)	2,967
Inventories	—			725			784			(33		)	1,476
Investments in non-consolidated affiliates	(5,971		)	6,556			43			(576		)	52
Property and equipment, net	—			930			849			(3		)	1,776
Goodwill	—			66			209			—			275
Deferred taxes, net	9			10			237			—			256
Other	51			180			337			(2		)	566
Total assets	$	(5,159	)	$	8,675		$	5,833		$	(626	)	$	8,723
Liabilities and stockholders’ equity (deficit)
Debt	$	1,934		$	1,012		$	1,843		$	(8	)	$	4,781
Postretirement benefits liabilities	—			3,073			351			—			3,424
Amounts due to (from) affiliates	(6,511		)	10,396			(3,958		)	73			—
Other liabilities	3,090			516			624			(74		)	4,156
Total liabilities	(1,487		)	14,997			(1,140		)	(9		)	12,361
Redeemable equity securities	4			—			—			—			4
Stockholders’ equity attributable to non-controlling interests	—			—			35			—			35
Stockholders’ equity (deficit) attributable to Navistar International Corporation	(3,676		)	(6,322		)	6,938			(617		)	(3,677		)
Total liabilities and stockholders’ equity (deficit)	$	(5,159	)	$	8,675		$	5,833		$	(626	)	$	8,723

Condensed Consolidating Statement of Cash Flows
For the Six Months Ended April 30, 2013							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Net cash provided by (used in) operations	$	(648	)	$	(288	)	$	222		$	671		$	(43	)
Cash flows from investment activities
Net change in restricted cash and cash equivalents	(1		)	—			45			—			44
Net purchases of marketable securities	(186		)	—			(81		)	—			(267		)
Capital expenditures and purchase of equipment leased to others	—			(304		)	(98		)	—			(402		)
Other investing activities	—			9			40			—			49
Net cash used in investment activities	(187		)	(295		)	(94		)	—			(576		)
Cash flows from financing activities
Net borrowings (repayments) of debt	327			301			(179		)	(671		)	(222		)
Other financing activities	24			263			(23		)	—			264
Net cash provided by (used in) financing activities	351			564			(202		)	(671		)	42
Effect of exchange rate changes on cash and cash equivalents	—			—			(5		)	—			(5		)
Decrease in cash and cash equivalents	(484		)	(19		)	(79		)	—			(582		)
Cash and cash equivalents at beginning of the period	702			55			330			—			1,087
Cash and cash equivalents at end of the period	$	218		$	36		$	251		$	—		$	505

41

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

Condensed Consolidating Statement of Operations
For the Three Months Ended April 30, 2012							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Sales and revenues, net	$	—		$	2,172		$	2,974		$	(1,885	)	$	3,261
Costs of products sold	—			2,205			2,555			(1,860		)	2,900
Restructuring charges	—			19			—			—			19
Impairment of intangible assets	—			—			10			—			10
All other operating expenses (income)	14			357			233			(25		)	579
Total costs and expenses	14			2,581			2,798			(1,885		)	3,508
Equity in income (loss) of affiliates	(96		)	271			(6		)	(173		)	(4		)
Income (loss) before income taxes	(110		)	(138		)	170			(173		)	(251		)
Income tax benefit (expense)	(62		)	(63		)	211			37			123
Earnings (loss) from continuing operations	(172		)	(201		)	381			(136		)	(128		)
Loss from discontinued operations, net of tax	—			—			(34		)	—			(34		)
Net income (loss)	(172		)	(201		)	347			(136		)	(162		)
Less: Net income attributable to non-controlling interests	—			—			10			—			10
Net income (loss) attributable to Navistar International Corporation	$	(172	)	$	(201	)	$	337		$	(136	)	$	(172	)

Condensed Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended April 30, 2012							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Net income (loss) attributable to Navistar International Corporation	$	(172	)	$	(201	)	$	337		$	(136	)	$	(172	)
Other comprehensive income (loss):
Foreign currency translation adjustment	(65		)	—			(65		)	65			(65		)
Defined benefit plans (net of tax of $(12), $(12), $-, $12, and $(12) respectively)	17			16			2			(18		)	17
Total other comprehensive income (loss)	(48		)	16			(63		)	47			(48		)
Total comprehensive income (loss) attributable to Navistar International Corporation	$	(220	)	$	(185	)	$	274		$	(89	)	$	(220	)

42

Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

Condensed Consolidating Statement of Operations
For the Six Months Ended April 30, 2012							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Sales and revenues, net	$	—		$	4,134		$	5,755		$	(3,619	)	$	6,270
Costs of products sold	—			4,200			4,931			(3,581		)	5,550
Restructuring charges	—			19			—			—			19
Impairment of property and equipment and intangible assets	—			—			10			—			10
All other operating expenses (income)	39			691			459			(51		)	1,138
Total costs and expenses	39			4,910			5,400			(3,632		)	6,717
Equity in income (loss) of affiliates	(296		)	366			(13		)	(68		)	(11		)
Income (loss) before income taxes	(335		)	(410		)	342			(55		)	(458		)
Income tax benefit	10			14			172			3			199
Earnings (loss) from continuing operations	(325		)	(396		)	514			(52		)	(259		)
Loss from discontinued operations, net of tax	—			—			(43		)	—			(43		)
Net income (loss)	(325		)	(396		)	471			(52		)	(302		)
Less: Net income attributable to non-controlling interests	—			—			23			—			23
Net income (loss) attributable to Navistar International Corporation	$	(325	)	$	(396	)	$	448		$	(52	)	$	(325	)

Condensed Consolidating Statement of Comprehensive Income (Loss)
For the Six Months Ended April 30, 2012							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Net income (loss) attributable to Navistar International Corporation	$	(325	)	$	(396	)	$	448		$	(52	)	$	(325	)
Other comprehensive income (loss):
Foreign currency translation adjustment	(78		)	—			(78		)	78			(78		)
Defined benefit plans (net of tax of $(24), $(23), $(1), $24, and $(24) respectively)	40			36			5			(41		)	40
Total other comprehensive income (loss)	(38		)	36			(73		)	37			(38		)
Total comprehensive income (loss) attributable to Navistar International Corporation	$	(363	)	$	(360	)	$	375		$	(15	)	$	(363	)

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Navistar International Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

Condensed Consolidating Balance Sheet
As of October 31, 2012							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Assets
Cash and cash equivalents	$	702		$	55		$	330		$	—		$	1,087
Marketable securities	314			—			152			—			466
Restricted cash	24			8			129			—			161
Finance and other receivables, net	5			128			2,859			—			2,992
Inventories	—			691			885			(39		)	1,537
Investments in non-consolidated affiliates	(5,616		)	6,454			54			(830		)	62
Property and equipment, net	—			790			874			(4		)	1,660
Goodwill	—			—			280			—			280
Deferred taxes, net	9			11			243			—			263
Other	83			177			335			(1		)	594
Total assets	$	(4,479	)	$	8,314		$	6,141		$	(874	)	$	9,102
Liabilities and stockholders’ equity (deficit)
Debt	$	1,617		$	1,162		$	1,997		$	(5	)	$	4,771
Postretirement benefits liabilities	—			3,144			367			—			3,511
Amounts due to (from) affiliates	(5,863		)	9,522			(3,743		)	84			—
Other liabilities	3,072			337			748			(77		)	4,080
Total liabilities	(1,174		)	14,165			(631		)	2			12,362
Redeemable equity securities	5			—			—			—			5
Stockholders’ equity attributable to non-controlling interest	—			—			45			—			45
Stockholders’ equity (deficit) attributable to Navistar International Corporation	(3,310		)	(5,851		)	6,727			(876		)	(3,310		)
Total liabilities and stockholders’ equity (deficit)	$	(4,479	)	$	8,314		$	6,141		$	(874	)	$	9,102

Condensed Consolidating Statement of Cash Flows
For the Six Months Ended April 30, 2012							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Net cash provided by (used in) operations	$	(463	)	$	(267	)	$	248		$	531		$	49
Cash flows from investment activities
Net change in restricted cash and cash equivalents	6			2			174			—			182
Net purchases in marketable securities	374			—			7			—			381
Capital expenditures and purchase of equipment leased to others	—			(115		)	(89		)	—			(204		)
Other investing activities	—			(104		)	70			—			(34		)
Net cash provided by (used in) investment activities	380			(217		)	162			—			325
Cash flows from financing activities
Net borrowings (repayments) of debt	(50		)	519			(429		)	(440		)	(400		)
Other financing activities	19			—			(38		)	(91		)	(110		)
Net cash provided by (used in) financing activities	(31		)	519			(467		)	(531		)	(510		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(3		)	—			(3		)
Increase (decrease) in cash and cash equivalents	(114		)	35			(60		)	—			(139		)
Cash and cash equivalents at beginning of the period	226			13			300			—			539
Cash and cash equivalents at end of the period	$	112		$	48		$	240		$	—		$	400

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Management’s Discussion and Analysis of Financial Condition and Results of Operation ("MD&A") is designed to provide information that is supplemental to, and should be read together with, our consolidated financial statements and the accompanying notes contained in our Annual Report on Form 10-K for the year ended October 31, 2012 and Current Report on Form 8-K filed on March 25, 2013. Information in MD&A is intended to assist the reader in obtaining an understanding of (i) our consolidated financial statements, (ii) the changes in certain key items within those financial statements from year-to-year, (iii) the primary factors that contributed to those changes, (iv) any changes in known trends or uncertainties from items disclosed within the MD&A of our Annual Report on Form 10-K for the year ended October 31, 2012 and Current Report on Form 8-K filed on March 25, 2013 that we are aware of and that may have a material effect on our future performance, and (v) how certain accounting principles affect our consolidated financial statements. In addition, MD&A provides information about our business segments and how the results of those segments impact our results of operations and financial condition as a whole. Operating results for interim reporting periods are not necessarily indicative of annual operating results.

Executive Summary

Beginning in 2012, we renewed our focus on our primary markets, which are North American Class 4 through 8 trucks and buses, and realigned the Company around a more functionally-oriented structure in order to reduce overhead expenses and other costs. We implemented a new Return-on-Invested-Capital ("ROIC") methodology to assist with the evaluation of our portfolio of assets to validate their strategic and financial fit. We are using a ROIC decision framework to re-examine our individual businesses. This effort is ongoing, and may lead to divestitures of businesses or discontinuing engineering programs that are outside of our core operations or not performing to our expectations. Additionally, we continue our ongoing efforts of realigning our management structure around the functional expertise needed to execute our core North American strategy. We believe this realignment will result in better execution of our strategies, streamline the decision making process, create better alignment towards a common objective, and reduce our operating costs.

We experienced significant strategic and operational challenges in 2012, but have taken actions that we believe will improve our performance in 2013 and beyond. We continue to evaluate additional opportunities to enhance value. We announced changes to our engine strategy, signed supply agreements with Cummins Inc. ("Cummins"), and reinforced our cash position during this transition period. We are making steady progress in our six guiding principles of quality, cost, sense of urgency, great products, customer satisfaction, and people. The entire organization remains aligned to address our major priorities in 2013: significantly improving the quality of our products, meeting every one of our critical truck and engine launch dates, delivering on our operating plan while maximizing our cash flows, building sales momentum to improve our market share, and increasing our organization capabilities and efficiencies.

During the first half of our fiscal 2013, we have made significant strides towards what we believe will contribute to our long-term, strategic, and profitability goals. These actions included:

• In December 2012, we met our first major engine strategy milestone with the launch of certain class 8 truck models featuring the Cummins ISX15 engine (the "Cummins 15L") with the Cummins SCR after-treatment system.

• In April 2013, we met another major engine strategy milestone with the receipt of the EPA certification of our MaxxForce 13L Big-Bore engines with the Cummins SCR after-treatment system (the "Certified MaxxForce 13L engine"). Then, later in that same month, we began shipping our International® ProStar® trucks powered by our Certified MaxxForce 13L engine.

• Also in April 2013, we received OBD certification for all current applications.

• We continue to make progress on our ROIC efforts. We completed the divestitures of our interests in the Mahindra Joint Ventures in February 2013, the WCC business in March 2013, and substantially all of our interest in certain operations of the Monaco RV business in May 2013. We also entered into an agreement to sublease a portion of our Cherokee Facility.

2013 Financial Summary

In the second quarter and first half of 2013, our consolidated net sales and revenues were $2.5 billion and $5.2 billion, respectively, which is a decrease of 23% and 18% compared to the second quarter and first half of 2012, respectively. The comparative results reflect lower net sales in our Truck segment, partially offset by higher sales in our Parts segment, as well as higher volumes in our South American engine business. The Truck segment sales decrease was primarily due to decreased volumes across all truck classes in our "traditional" market and lower military sales. The Engine segment sales decrease was primarily due to lower intercompany sales in the U.S., partially offset by higher sales in South America. The Parts segment sales increase was primarily due to higher military sales.

In the second quarter and first half of 2013, we incurred losses from continuing operations before income taxes of $322 million and $406 million, respectively, compared to losses of $251 million and $458 million in the respective prior year periods. The

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comparative results were impacted by declines in our consolidated net sales and revenues, partially offset by lower Selling, general and administrative ("SG&A") expenses and Engineering and product development costs. While we have been impacted by reduced volumes as we continue the transition of our engine emission strategy, we have successfully reduced our second quarter and first half SG&A expenses by 16% and 18%, respectively, and our Engineering and product development costs by 24% and 21%, respectively. The SG&A expense reduction reflects the realization of savings from our 2012 cost-reduction initiatives, while the Engineering and product development costs reduction reflects savings from project rationalization of certain engineering programs and other savings efforts. Charges for adjustments to pre-existing warranties were higher in the second quarter of 2013.

Additionally, in the second quarter of 2013, we recorded a gain of $28 million related to the sale of the Company's interests in the Mahindra Joint Ventures, and in the first half of 2013, we recorded a gain of $35 million from a legal settlement. Partially offsetting these factors was an increase in interest expense of $28 million and $41 million in the second quarter and first half of 2013, respectively, which is primarily the result of our August 2012 borrowing under our Senior Secured Term Loan Credit Facility.

In the second quarter and first half of 2013, we recognized income tax expense of $22 million and $37 million, respectively, compared to income tax benefits of $123 million and $199 million in the respective prior year periods. With the increase in our U.S. deferred tax valuation allowance in the fourth quarter of 2012, the ordinary loss and related tax benefit on U.S. operations was excluded from the effective tax rate for 2013, limiting the U.S. tax to certain current state income taxes, federal refundable credits, and other discrete items. In the second quarter of 2012, we recognized an income tax benefit of $181 million from the release of a significant portion of our income tax valuation allowance on our Canadian deferred tax assets, partially offset by income tax expense of $61 million that was the result of a change in our estimated 2012 annual effective tax rate.

After income taxes, the Company incurred a loss from continuing operations attributable to Navistar International Corporation in the second quarter and first half of 2013 of $353 million and $467 million, or $4.39 and $5.82 per diluted share, respectively, compared to a loss of $138 million and $282 million, or $2.01 and $4.07 per diluted share, in the respective prior year periods. In the second quarter and first half of 2013, the weighted average shares outstanding used to calculate the per share amounts increased by 11.7 million and 11.0 million shares, respectively, due to the October 2012 issuance of our common stock.

We ended the second quarter of 2013 with $1.24 billion of consolidated cash, cash equivalents and marketable securities, compared to $1.27 billion as of January 31, 2013. During the second quarter of 2013, we amended our Term Loan Credit Facility whereby we lowered our interest rate and modified the maturity date to August 17, 2017. We also utilized proceeds from the issuance of $300 million of additional Senior Notes to make a principal repayment of $300 million against our Senior Secured Term Loan Credit Facility.

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Results of Continuing Operations

The following information summarizes our Consolidated Statements of Operations and illustrates the key financial indicators used to assess our consolidated financial results. Beginning in the first quarter of 2013, the Company began reporting the operating results of WCC and certain operating results of Monaco as discontinued operations. For more information, see Note 2, Discontinued Operations and Other Divestitures, to the accompanying consolidated financial statements. The Company's previously issued Consolidated Statements of Operations have been restated to reflect this change.

The three and six months ended April 30, 2013 as compared to the three and six months ended April 30, 2012

	Three Months Ended April 30,									% Change		Six Months Ended April 30,									% Change
(in millions, except per share data and % change)	2013			2012			Change					2013			2012			Change
Sales and revenues, net	$	2,526		$	3,261		$	(735	)	(23	)%	$	5,163		$	6,270		$	(1,107	)	(18	)%
Costs of products sold	2,363			2,900			(537		)	(19	)%	4,649			5,550			(901		)	(16	)%
Restructuring charges	6			19			(13		)	(68	)%	8			19			(11		)	(58	)%
Impairment of intangible assets	—			10			(10		)	(100	)%	—			10			(10		)	(100	)%
Selling, general and administrative expenses	312			372			(60		)	(16	)%	597			727			(130		)	(18	)%
Engineering and product development costs	100			132			(32		)	(24	)%	211			267			(56		)	(21	)%
Interest expense	90			62			28			45	%	164			123			41			33	%
Other expense (income), net	(19		)	13			(32		)	N.M.		(57		)	21			(78		)	N.M.
Total costs and expenses	2,852			3,508			(656		)	(19	)%	5,572			6,717			(1,145		)	(17	)%
Equity in income (loss) of non-consolidated affiliates	4			(4		)	8			N.M.		3			(11		)	14			N.M.
Loss from continuing operations before income taxes	(322		)	(251		)	(71		)	28	%	(406		)	(458		)	52			(11	)%
Income tax benefit (expense)	(22		)	123			(145		)	N.M.		(37		)	199			(236		)	N.M.
Loss from continuing operations	(344		)	(128		)	(216		)	169	%	(443		)	(259		)	(184		)	71	%
Less: Net income attributable to non-controlling interests	9			10			(1		)	(10	)%	24			23			1			4	%
Loss from continuing operations(A)	(353		)	(138		)	(215		)	156	%	(467		)	(282		)	(185		)	66	%
Loss from discontinued operations, net of tax	(21		)	(34		)	13			(38	)%	(30		)	(43		)	13			(30	)%
Net loss(A)	$	(374	)	$	(172	)	$	(202	)	117	%	$	(497	)	$	(325	)	$	(172	)	53	%
Diluted loss per share:(A)
Continuing operations	$	(4.39	)	$	(2.01	)	$	(2.38	)	118	%	$	(5.82	)	$	(4.07	)	$	(1.75	)	43	%
Discontinued operations	(0.26		)	(0.49		)	0.23			(47	)%	(0.37		)	(0.62		)	0.25			(40	)%
	$	(4.65	)	$	(2.50	)	$	(2.15	)	86	%	$	(6.19	)	$	(4.69	)	$	(1.50	)	32	%
Diluted weighted average shares outstanding	80.4			68.7			11.7			17	%	80.3			69.3			11.0			16	%

_________________________

N.M. Not meaningful.

(A) Amounts attributable to Navistar International Corporation.

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Sales and revenues, net

Our sales and revenues, net are categorized by geographic region based on the location of the end customer. The following tables present Sales and revenues, net by segment for our geographic regions of; U.S. and Canada, and Rest of World ("ROW"):

(in millions, except % change)	Total											U.S. and Canada											ROW
	Three Months Ended April 30,									% Change		Three Months Ended April 30,									% Change		Three Months Ended April 30,									% Change
	2013			2012			Change					2013			2012			Change					2013			2012			Change
Truck	$	1,519		$	2,318		$	(799	)	(34	)%	$	1,266		$	1,962		$	(696	)	(35	)%	$	253		$	356		$	(103	)	(29	)%
Engine	744			894			(150		)	(17	)%	401			576			(175		)	(30	)%	343			318			25			8	%
Parts	530			496			34			7	%	473			437			36			8	%	57			59			(2		)	(3	)%
Financial Services	58			67			(9		)	(13	)%	39			51			(12		)	(24	)%	19			16			3			19	%
Corporate and Eliminations	(325		)	(514		)	189			(37	)%	(320		)	(509		)	189			(37	)%	(5		)	(5		)	—			—	%
Total	$	2,526		$	3,261		$	(735	)	(23	)%	$	1,859		$	2,517		$	(658	)	(26	)%	$	667		$	744		$	(77	)	(10	)%

(in millions, except % change)	Total											U.S. and Canada											ROW
	Six Months Ended April 30,									% Change		Six Months Ended April 30,									% Change		Six Months Ended April 30,									% Change
	2013			2012			Change					2013			2012			Change					2013			2012			Change
Truck	$	3,197		$	4,440		$	(1,243	)	(28	)%	$	2,702		$	3,762		$	(1,060	)	(28	)%	$	495		$	678		$	(183	)	(27	)%
Engine	1,484			1,753			(269		)	(15	)%	872			1,154			(282		)	(24	)%	612			599			13			2	%
Parts	1,082			965			117			12	%	973			860			113			13	%	109			105			4			4	%
Financial Services	117			135			(18		)	(13	)%	80			104			(24		)	(23	)%	37			31			6			19	%
Corporate and Eliminations	(717		)	(1,023		)	306			(30	)%	(708		)	(1,012		)	304			(30	)%	(9		)	(11		)	2			(18	)%
Total	$	5,163		$	6,270		$	(1,107	)	(18	)%	$	3,919		$	4,868		$	(949	)	(19	)%	$	1,244		$	1,402		$	(158	)	(11	)%

In the second quarter and first half of 2013, the Truck segment net sales decreased $799 million and $1.2 billion, or 34% and 28%, respectively, primarily due to decreased volumes across all truck classes in our "traditional" market and lower military sales. Also contributing to the decrease in sales were out-of-period adjustments relating to certain third-party equipment financings by GE which we have accounted for as borrowings. The initial transactions do not qualify for revenue recognition as we retain substantial risks of ownership in the leased property. As a result, the proceeds from the transfer are recorded as an obligation and amortized to revenue over the term of the financing. In the second quarter and first half of 2013, the Company recorded certain out-of-period adjustments for the correction of prior-period errors, which included a net decrease of $124 million and $113 million, respectively, to net sales related to prior periods. For more information, see Note 1, Summary of Significant Accounting Policies, to the accompanying consolidated financial statements.

The Engine segment net sales decreased $150 million and $269 million, or 17% and 15%, respectively, primarily due to lower intercompany sales in the U.S., partially offset by higher volumes in South America.

The Parts segment net sales increased $34 million and $117 million, or 7% and 12%, respectively, primarily due to higher military sales.

The Financial Services segment net revenues decreased $9 million and $18 million, or 13% in both periods, primarily driven by the continued decline in the average finance receivable balances, which is reflective of the GE Operating Agreement.

Costs of products sold

The Cost of products sold decrease of $537 million and $901 million in the second quarter and first half of 2013, respectively, reflects the impact of decreases in net sales for both the Truck and Engine segments and an increase in net sales for the Parts segment. The Truck segment was also impacted by accelerated depreciation resulting from the planned closure of our Garland Facility.

In the second quarters of 2013 and 2012, the Company recognized charges for adjustments to pre-existing warranties of $164 million and $104 million, respectively, reflecting an unanticipated increase in warranty spend, primarily for certain 2010 emission standard engines, including charges related to certain field campaigns we initiated to address issues in products sold.

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Additionally in the second quarters of 2013 and 2012, the Truck segment recorded charges of $33 million and $24 million, respectively, related to certain extended warranty contracts on our 2010 emission standard MaxxForce Big-Bore engines. In the first halves of 2013 and 2012, the Company recognized charges for adjustments to pre-existing warranties of $204 million and $227 million, respectively. Also in the first half of 2013, the charges were partially offset by a warranty recovery of $27 million. The Engine segment recognized the majority of the charges for adjustments to pre-existing warranties. For more information on warranty, see Note 1, Summary of Significant Accounting Policies, to the accompanying consolidated financial statements.

In addition, as described above in Sales and revenues, net, certain out-of-period adjustments were made to correct prior-period errors, which also contributed to the decline in costs of products sold. In the second quarter and first half of 2013 relating to these out-of-periods adjustments, we recognized a net decrease of $126 million and $113 million, respectively, to costs of products sold related to prior periods, which impacted the Truck segment.

Restructuring charges

In the second quarter of 2012, we incurred restructuring charges of $19 million, primarily due to a net charge of $16 million for the lease vacancy for the relocation of our world headquarters. For more information, see Note 3, Restructurings and Impairments, to the accompanying consolidated financial statements.

Impairment of intangible assets

In the second quarter of 2012, we incurred asset impairment charges of $10 million, recognized in the Parts segment, related to the Company's decision to idle the WCC business. This action resulted in the impairment of certain intangible assets related the parts distribution operations associated with the WCC business. For more information, see Note 2, Restructurings and Impairments, to the accompanying consolidated financial statements.

Selling, general and administrative expenses

The SG&A expenses decrease of $60 million and $130 million in the second quarter and first half of 2013, respectively, reflects the impact of our 2012 cost-reduction initiatives, partially offset by higher employee incentive compensation expense. In the fourth quarter of 2012, we offered the majority of our U.S.-based non-represented salaried employees the opportunity to apply for a voluntary separation program ("VSP"). Along with the VSP, we used attrition and an involuntary reduction in force to eliminate additional positions in order to meet our targeted reductions goal. In addition to these actions in the U.S., our Brazilian operations utilized an involuntary reduction in force to eliminate positions. As a result of these actions and the elimination of certain executive-level positions, we have realized year-over-year savings as compared to the prior-year period. For more information concerning our 2012 cost-reduction initiatives, see Note 3, Restructurings and Impairments, to the accompanying consolidated financial statements.

Engineering and product development costs

The Engineering and product development costs decrease of $32 million and $56 million in the second quarter and first half of 2013, respectively, reflects lower costs in both the Engine and Truck segments primarily due to project rationalization of certain engineering programs and other savings from our 2012 cost-reduction initiatives. The decrease in the Engine segment also reflects lower engineering spend related to meeting the Euro V emissions regulations in South America. These decreases were partially offset by costs in North America, primarily for integration of the Cummins SCR after-treatment systems with the MaxxForce 13L engine and the Cummins 15L engine and after-treatment system into certain truck models.

Interest expense

In the second quarter and first half of 2013, the interest expense increase of $28 million and $41 million, respectively, was primarily the result of our August 2012 borrowing under our Senior Secured Term Loan Credit Facility, partially offset by lower interest expense resulting from the reduction in debt utilized in financing of retail finance receivables balances. The decline is reflective of the GE Operating Agreement, through which GE funds most of the new U.S. retail loan originations. For more information, see Note 7, Debt, to the accompanying consolidated financial statements.

Also contributing to the increase is $14 million of interest expense recognized in the second quarter of 2013 related to certain third-party equipment financings by GE, which we have accounted for as borrowings. In the second quarter and first half of 2013, the Company recorded certain out-of-period adjustments for the correction of prior-period errors, which included $11 million and $8 million, respectively, of interest expense related to prior periods. For more information, see Note 1, Summary of Significant Accounting Policies, to the accompanying consolidated financial statements.

49

Other expense (income), net

We recognized other net income of $19 million and $57 million in the second quarter and first half of 2013, respectively, compared to other net expense of $13 million and $21 million in the respective prior year periods.

The income in the second quarter of 2013 was largely due to gains of $28 million related to the sale of the Company's interests in the Mahindra Joint Ventures, partially offset by $13 million of charges related to the $300 million principal repayment of a portion of the Term Loan Credit Facility, which primarily consisted of the write-off of related discount and debt issuance costs and a prepayment premium fee. Additionally, the income in the first half of 2013 included a $35 million gain related to our legal settlement with Deloitte and Touch LLP. For more information concerning: (i) the sale of the Mahindra Joint Ventures, see Note 2, Discontinued Operations and Other Divestitures, (ii) the $300 million principal repayment, see Note 7, Debt, and (iii) the legal settlement, see Note 12, Commitments and Contingencies, all to the accompanying consolidated financial statements.

In the second quarter and first half of 2012, the Company was unfavorably impacted by the fluctuations of foreign exchange rates, primarily due to the strengthening of the U.S. Dollar against the Brazilian Real. Also contributing to the expense in the first half of 2012 were costs related to the early redemption of a portion of our Senior Notes, which included charges of $8 million for the early redemption premium and write-off of related discount and debt issuance costs.

Equity in income (loss) of non-consolidated affiliates

We recognized net income from our equity interest in non-consolidated affiliates of $4 million and $3 million in the second quarter and first half of 2013, respectively, compared to net losses of $4 million and $11 million in the respective prior year periods. In the second quarter of 2013,we sold our stake in the Mahindra Joint Ventures. The losses recognized in the prior periods were primarily attributable to the Mahindra Joint Ventures. For more information, see Note 2, Discontinued Operations and Other Divestitures, to the accompanying consolidated financial statements.

Income tax benefit (expense)

In the second quarter and first half of 2013, we recognized income tax expense of $22 million and $37 million, respectively, compared to an income tax benefit of $123 million and $199 million in the respective prior year periods. In fourth quarter of 2012, we increased our deferred tax valuation allowances on our U.S. deferred tax assets. In the second quarter and first half of 2013, as a result of our deferred tax valuation allowances on our U.S. deferred tax assets, the ordinary loss and related tax benefit on U.S. operations was excluded from the effective tax rate, and our U.S. tax was limited to certain current state income taxes, federal refundable credits, and other discrete items. In 2012, the ordinary loss and related tax benefit for U.S. operations were included in the effective tax rate in the respective prior year periods.

In the second quarter of 2012, we recognized an income tax benefit of $181 million from the release of a significant portion of our income tax valuation allowance on our Canadian deferred tax assets. Partially offsetting the income tax benefit recognized was an income tax expense of $61 million, resulting from a second quarter of 2012 change in the estimated annual effective tax rate. The change was the result of updates to our 2012 forecasted earnings and the jurisdictional mix. The income tax benefit recognized in the first half of 2012 was primarily from the valuation allowance release and the losses incurred in the U.S.

We had $1.1 billion of U.S. net operating losses and $214 million of tax credit carryforwards as of October 31, 2012. We expect our cash payments of U.S. taxes will be minimal for so long as we are able to offset our U.S. taxable income by these U.S. net operating losses and tax credits. We maintain valuation allowances on our U.S. and certain foreign deferred tax assets because it is more-likely-than-not those deferred tax assets will not be realized. It is reasonably possible within the next twelve months that an additional valuation allowance may be required on certain foreign deferred tax assets. For additional information, see Note 9, Income Taxes, to the accompanying consolidated financial statements.

Net income attributable to non-controlling interests

Net income attributable to non-controlling interests is the result of our consolidation of subsidiaries of which we do not own 100%. Substantially all of our net income attributable to non-controlling interests in 2013 and 2012 relates to Ford Motor Company's ("Ford") non-controlling interest in our BDP subsidiary.

Loss from discontinued operations, net of tax

In the second quarter and first half of 2013, we incurred a loss from discontinued operations of $21 million and $30 million, respectively, compared to a loss of $34 million and $43 million in the respective prior year periods. The losses from discontinued operations were from certain operations of the Monaco business and the WCC operations. In the second quarter of 2012, we incurred a charge of $28 million for the impairment of certain intangible assets, which resulted from our decision to idle WCC. In the second quarter of 2013, WCC recognized a warranty recovery of $13 million. In March 2013, we divested our interest in WCC. The impact of these events on the comparative results were partially offset by charges of $25 million related to the divestiture of substantially all of our interest in these operations of Monaco in May 2013. As a result of this divestiture,

50

we recorded charges of $25 million in the second quarter of 2013, primarily consisting of charges for the impairment of certain assets and the expected loss from the divestiture. For more information, see Note 2, Discontinued Operations and Other Divestitures, to the accompanying consolidated financial statements.

Segment Results of Continuing Operations

We operate in four reporting segments: Truck, Engine, Parts (collectively called "Manufacturing operations"), and Financial Services, which consists of Navistar Financial Corporation ("NFC") and our foreign finance operations (collectively called "Financial Services operations").

Beginning in the first quarter of 2013, the Company began reporting the operating results of WCC and certain operating results of Monaco as discontinued operations, both of which were previously included as part of the Truck segment. The financial information for the prior periods has been restated to reflect this change in presentation. For more information, see Note 2, Discontinued Operations and Other Divestitures, to the accompanying consolidated financial statements.

We define segment profit (loss) as net income (loss) from continuing operations attributable to Navistar International Corporation excluding income tax benefit (expense). For additional information about segment profit, see Note 13, Segment Reporting, to the accompanying consolidated financial statements. The following sections analyze operating results as they relate to our four segments and do not include intersegment eliminations:

Truck Segment

	Three Months Ended April 30,									% Change		Six Months Ended April 30,									% Change
(in millions, except % change)	2013			2012			Change					2013			2012			Change
Truck segment sales - U.S. and Canada	$	1,266		$	1,962		$	(696	)	(35	)%	$	2,702		$	3,762		$	(1,060	)	(28	)%
Truck segment sales - ROW	253			356			(103		)	(29	)%	495			678			(183		)	(27	)%
Total Truck segment sales, net	$	1,519		$	2,318		$	(799	)	(34	)%	$	3,197		$	4,440		$	(1,243	)	(28	)%
Truck segment loss	$	(109	)	$	(45	)	$	(64	)	142	%	$	(167	)	$	(72	)	$	(95	)	132	%

Segment sales

In the second quarter and first half of 2013, the Truck segment net sales decrease of $799 million and $1.2 billion, or 34% and 28%, respectively, was primarily due to lower sales in our "traditional" market, reflecting reduced sales volumes across all truck classes as we transition our engine strategy, as well as the impact of lower industry volumes. Additionally, our military sales were lower reflecting lower chargeouts and service revenue.

Chargeouts from our "traditional" market were down 34% and 29%, respectively. The declines in chargeouts reflected lower chargeouts of combined Class 8 trucks and our Class 6 and 7 medium trucks.

Also in the second quarter of 2013, the Company recorded certain out-of-period adjustments for the correction of prior-period errors, relating to certain third-party equipment financings by GE that we have accounted for as borrowings. In the second quarter and first half of 2013, correcting the errors resulted in a net decrease of $124 million and $113 million, respectively, to net sales related to prior periods. For more information, see Note 1, Summary of Significant Accounting Policies to the accompanying consolidated financial statements.

Segment loss

In the second quarter and first half of 2013, the increase in the Truck segment loss of $64 million and $95 million, respectively, reflects the impact of our engine emission strategy. We have been successful in meeting our product launches, and experienced no production gaps during our transition in the first half of 2013; however, we have experienced lower volumes and associated margins in our "traditional" market. To a lesser extent, we have also experienced some pressure on pricing. In the second quarters of 2013 and 2012, the Truck segment recorded charges of $33 million and $24 million, respectively, both related to the extended warranty contracts on our 2010 emission standard MaxxForce Big-Bore engines. Additionally, the Truck segment recognized charges of $8 million and $23 million, respectively, for accelerated depreciation of certain assets, primarily related to the planned closure of our Garland Facility. For more information, see Note 3, Restructurings and Impairments, to the accompanying consolidated financial statements. Also contributing to the increase in the loss were lower margins from sales of used trucks.

Partially offsetting these factors were decreases in the second quarter and first half of 2013 in SG&A expenses and Engineering and product development costs. The lower SG&A expenses reflect impacts from our 2012 cost-reduction initiatives. The lower Engineering and product development costs were primarily due to project rationalization of certain engineering programs and other savings from cost-reduction initiatives, partially offset by costs to integrate the Cummins SCR after-treatment systems

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with our MaxxForce 13L engine and the Cummins 15L engine with the SCR after-treatment system into certain truck models.

In the second quarter of 2013, the Company sold its stake in the Mahindra Joint Ventures to Mahindra. As a result, the Truck segment recorded a gain of $16 million related to the sale of the Company's interest in MNAL to Mahindra. In the second quarter and first half of 2012, the Truck segment incurred losses of $7 million and $15 million, respectively, related to MNAL. For more information, see Note 2, Discontinued Operations and Other Divestitures, to the accompanying consolidated financial statements.

Engine Segment

	Three Months Ended April 30,									% Change		Six Months Ended April 30,									% Change
(in millions, except % change)	2013			2012			Change					2013			2012			Change
Engine segment sales - U.S. and Canada	$	401		$	576		$	(175	)	(30	)%	$	872		$	1,154		$	(282	)	(24	)%
Engine segment sales - ROW	343			318			25			8	%	612			599			13			2	%
Total Engine segment sales, net	$	744		$	894		$	(150	)	(17	)%	$	1,484		$	1,753		$	(269	)	(15	)%
Engine segment loss	$	(138	)	$	(108	)	$	(30	)	28	%	$	(165	)	$	(228	)	$	63		(28	)%

Segment sales

In the second quarter and first half of 2013, the Engine segment net sales decrease of $150 million and $269 million, or 17% and 15%, respectively, was primarily due to lower net sales in U.S. and Canada, partially offset by higher net sales in ROW. The decreases in the U.S. and Canada net sales were primarily due to lower intercompany sales in the U.S. The increases in ROW net sales reflect higher net sales from our South America operations, resulting from higher volumes. The increase in volumes in our South American operations was partially offset by lower average-selling-prices resulting from a shift to contract manufacturing of certain 3rd party engines.

Segment loss

In the second quarter and first half of 2013, the Engine segment incurred a loss of $138 million and $165 million, respectively, primarily due to higher warranty costs, which included significant charges related to adjustments to pre-existing warranties and the impact of low volumes from intercompany sales in the U.S. The Engine segment recognized charges for adjustments to pre-existing warranties of $107 million and $136 million, respectively, compared to $78 million and $190 million in the respective prior year periods. The charges for adjustments to pre-existing warranties were primarily related to certain 2010 emission standard engines. Additionally in the second quarter of 2013, the charges included costs related to certain field campaigns we initiated to address issues in products sold. Partially offsetting these charges for warranty was recognition of a warranty recovery of $27 million in the first half of 2013.

Additionally in the second quarter and first half of 2013, the Engine segment recorded charges of $12 million and $22 million, respectively, for NCPs, primarily for certain 13L engine sales, compared to charges of $10 million in the second quarter of 2012. In the first half of 2013, the segment also incurred charges of $12 million for accelerated depreciation of certain assets, primarily related to the discontinuation of our MaxxForce15L engine.

The comparative results of the Engine segment were also impacted by lower Engineering and product development costs, lower SG&A expenses, improvements in our South American operations, the impact of the decrease in intercompany sales in the U.S., and an increase in charges of $29 million for adjustments to pre-existing warranties. The decrease in Engineering and product development costs were primarily due to lower engineering spend related to meeting the Euro V emissions regulations in South America in 2012, coupled with project rationalization of certain engineering programs and other cost-reduction initiatives. The decrease in SG&A expenses were driven by the impact of our 2012 cost-reduction initiatives. Our South American business improvement reflects the impact of increased volumes and lower warranty charges, partially offset by the impact of a shift to contract manufacturing of certain 3rd party engines. In addition, in the second quarter of 2013, the Engine segment recognized a gain of $12 million related to the sale of the Company's interest in MNEPL to Mahindra.

Contributing to the improvement in results for the first half of 2013, compared to 2012, was the decrease in charges of $54 million for adjustments to pre-existing warranties, partially offset by the increase in charges of $12 million for NCPs, as well as the charges of $12 million for accelerated depreciation .

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Parts Segment

	Three Months Ended April 30,							% Change		Six Months Ended April 30,						% Change
(in millions, except % change)	2013		2012		Change					2013		2012		Change
Parts segment sales - U.S. and Canada	$	473	$	437	$	36		8	%	$	973	$	860	$	113	13	%
Parts segment sales - ROW	57		59		(2		)	(3	)%	109		105		4		4	%
Total Parts segment sales, net	$	530	$	496	$	34		7	%	$	1,082	$	965	$	117	12	%
Parts segment profit	$	91	$	41	$	50		122	%	$	177	$	91	$	86	95	%

Segment sales

In the second quarter and first half of 2013, the Parts segment net sales increase of $34 million and $117 million, or 7% and 12%, respectively, was primarily due to higher military sales. The increase in military sales is primarily related to upgrade kits, as well as the impact of the definitization of pricing on certain contracts.

Segment profit

In the second quarter and first half of 2013, the increase in Parts segment profit of $50 million and $86 million, respectively, was primarily driven by margin improvements in our commercial markets, the increase in military sales, which includes the impact of product mix and the definitization of pricing on certain contracts. Also contributing to the improved results were lower SG&A expenses that reflect the impact of our 2012 cost-reduction initiatives.

Additionally, the second quarter of 2012 included a charge of $10 million for the impairment of certain intangible assets of the parts distribution operations related to the WCC business. For more information, see Note 3, Restructurings and Impairments, to the accompanying consolidated financial statements.

Financial Services Segment

	Three Months Ended April 30,							% Change		Six Months Ended April 30,							% Change
(in millions, except % change)	2013		2012		Change					2013		2012		Change
Financial Services segment revenues - U.S. and Canada(A)	$	39	$	51	$	(12	)	(24	)%	$	80	$	104	$	(24	)	(23	)%
Financial Services segment revenues - ROW	19		16		3			19	%	37		31		6			19	%
Total Financial Services segment revenues, net	$	58	$	67	$	(9	)	(13	)%	$	117	$	135	$	(18	)	(13	)%
Financial Services segment profit	$	19	$	26	$	(7	)	(27	)%	$	41	$	53	$	(12	)	(23	)%

_________________________

(A) The Financial Services segment does not have Canadian operations.

Segment revenues

In the second quarter and first half of 2013, the Financial Services segment net revenues decrease of $9 million and $18 million, or 13% in both periods, was primarily driven by the continued decline in the average finance receivable balances, partially offset by higher revenue from operating leases. The decline in the average retail finance receivable balance is reflective of the GE Operating Agreement, through which GE funds most of the new U.S. retail loan originations. Revenues from wholesale notes also declined, primarily due to lower average dealer inventory levels resulting from lower truck sales.

Segment profit

In the second quarter and first half of 2013, the decrease in Financial Services segment profit of $7 million and $12 million, respectively, was primarily due to lower net interest margin, reflecting the decline in the average finance receivables balances. Additionally, the Financial Services segment incurred restructuring charges related to the relocation of certain operations to our world headquarters.

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Supplemental Information

The following tables provide additional information on Truck segment industry retail units, market share data, order units, backlog units, chargeout units, and Engine segment shipments. These tables present key metrics and trends that provide quantitative measures on the performance of the Truck and Engine segments.

We define our "traditional" markets to include U.S. and Canada School bus and Class 6 through 8 medium and heavy trucks. We classify militarized commercial vehicles sold to the U.S. and Canadian militaries as Class 8 severe service trucks within our "traditional" markets.

Truck segment industry retail deliveries

The following table summarizes approximate industry retail deliveries, for our "traditional" truck market, categorized by relevant class, according to Wards Communications and R.L. Polk & Co. ("Polk"):

	Three Months Ended April 30,				% Change		Six Months Ended April 30,				% Change
(in units)	2013	2012	Change				2013	2012	Change
"Traditional" Markets (U.S. and Canada)
School buses(A)	3,800	3,800	—		—	%	8,800	7,900	900		11	%
Class 6 and 7 medium trucks	16,900	19,100	(2,200	)	(12	)%	31,200	35,900	(4,700	)	(13	)%
Class 8 heavy trucks	37,500	47,100	(9,600	)	(20	)%	78,800	95,900	(17,100	)	(18	)%
Class 8 severe service trucks(B)	10,600	10,200	400		4	%	21,500	20,600	900		4	%
Total "traditional" markets	68,800	80,200	(11,400	)	(14	)%	140,300	160,300	(20,000	)	(12	)%
Combined class 8 trucks	48,100	57,300	(9,200	)	(16	)%	100,300	116,500	(16,200	)	(14	)%
Navistar "traditional" retail deliveries	12,300	18,600	(6,300	)	(34	)%	25,100	36,200	(11,100	)	(31	)%

_________________________

(A) Beginning in the first quarter of 2013, the Company began using bus registration data from Polk to report U.S. and Canada School bus retail market deliveries. Additionally, the School bus retail market deliveries include buses classified as B, C and D and are being reported on a one-month lag. These changes are reflected in all periods presented.

(B) "Traditional" retail deliveries include CAT-branded units sold to Caterpillar under our North America supply agreement.

Truck segment retail delivery market share

The following table summarizes our approximate retail delivery market share percentages for the class 6 through 8 U.S. and Canada truck markets, based on market-wide information from Wards Communications and Polk:

	Three Months Ended
	April 30, 2013		January 31, 2013		October 31, 2012		July 31, 2012		April 30, 2012
Class 6 and 7 medium trucks	26	%	25	%	34	%	36	%	36	%
Class 8 heavy trucks	12	%	11	%	13	%	15	%	15	%
Class 8 severe service trucks(A)	22	%	26	%	30	%	30	%	30	%
Combined class 8 trucks	15	%	14	%	17	%	18	%	18	%

_________________________

(A) Retail delivery market share includes CAT-branded units sold to Caterpillar under our North America supply agreement.

Truck segment net orders

We define orders as written commitments received from customers and dealers during the year to purchase trucks. Net orders represent new orders received during the year less cancellations of orders made during the same year. Orders do not represent guarantees of purchases by customers or dealers and are subject to cancellation. Orders may be either sold orders, which will be built for specific customers, or stock orders, which will generally be built for dealer inventory for eventual sale to customers. These orders may be placed at our assembly plants in the U.S. and Mexico for destinations anywhere in the world and include trucks, buses, and military vehicles. Historically, we have had an increase in net orders for stock inventory from our dealers at the end of the year due to a combination of demand and, from time to time, incentives to the dealers. Increases in stock orders typically translate to higher chargeouts (discussed below) for our Truck segment.

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The following table summarizes our approximate net orders for "traditional" units:

	Three Months Ended April 30,				% Change		Six Months Ended April 30,				% Change
(in units)	2013	2012	Change				2013	2012	Change
"Traditional" Markets (U.S. and Canada)
School buses(A)	3,100	3,200	(100	)	(3	)%	4,600	5,300	(700	)	(13	)%
Class 6 and 7 medium trucks	3,800	6,300	(2,500	)	(40	)%	7,100	11,700	(4,600	)	(39	)%
Class 8 heavy trucks	4,400	5,600	(1,200	)	(21	)%	10,200	13,700	(3,500	)	(26	)%
Class 8 severe service trucks(B)	2,500	3,000	(500	)	(17	)%	4,400	7,000	(2,600	)	(37	)%
Total "traditional" markets	13,800	18,100	(4,300	)	(24	)%	26,300	37,700	(11,400	)	(30	)%
Combined class 8 trucks	6,900	8,600	(1,700	)	(20	)%	14,600	20,700	(6,100	)	(29	)%

_________________________

(A) U.S. and Canada School buses include buses classified as B, C and D.

(B) Truck segment net orders include CAT-branded units sold to Caterpillar under our North America supply agreement.

Truck segment backlogs

We define order backlogs ("backlogs") as orders yet to be built as of the end of the period. Our backlogs do not represent guarantees of purchases by customers or dealers and are subject to cancellation. Although the backlog of unbuilt orders is one of many indicators of market demand, other factors such as changes in production rates, internal and supplier available capacity, new product introductions, and competitive pricing actions may affect point-in-time comparisons. Backlogs exclude units in inventory awaiting additional modifications or delivery to the end customer.

The following table summarizes our approximate backlog for "traditional" units:

	As of April 30,				% Change
(in units)	2013	2012	Change
"Traditional" Markets (U.S. and Canada)
School buses(A)	2,300	2,100	200		10	%
Class 6 and 7 medium trucks	2,300	6,500	(4,200	)	(65	)%
Class 8 heavy trucks	6,600	8,100	(1,500	)	(19	)%
Class 8 severe service trucks(B)	2,600	3,600	(1,000	)	(28	)%
Total "traditional" markets	13,800	20,300	(6,500	)	(32	)%
Combined class 8 trucks	9,200	11,700	(2,500	)	(21	)%

_____________________________

(A) U.S. and Canada School buses include buses classified as B, C and D.

(B) Truck segment backlog includes CAT-branded units sold to Caterpillar under our North America supply agreement, and the backlog as of January 31, 2012 was adjusted by 200 units to reflect the inclusion of these CAT-branded units.

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Truck segment chargeouts

We define chargeouts as trucks that have been invoiced to customers. The units held in dealer inventory represent the principal difference between retail deliveries and chargeouts. The following table summarizes our approximate worldwide chargeouts from our continuing operations:

	Three Months Ended April 30,				% Change		Six Months Ended April 30,				% Change
(in units)	2013	2012	Change				2013	2012	Change
"Traditional" Markets (U.S. and Canada)
School buses(A)	2,500	2,600	(100	)	(4	)%	4,500	4,300	200		5	%
Class 6 and 7 medium trucks	4,500	7,100	(2,600	)	(37	)%	8,600	11,400	(2,800	)	(25	)%
Class 8 heavy trucks	4,500	7,200	(2,700	)	(38	)%	9,100	15,200	(6,100	)	(40	)%
Class 8 severe service trucks(B)	2,100	3,600	(1,500	)	(42	)%	4,500	6,900	(2,400	)	(35	)%
Total "traditional" markets	13,600	20,500	(6,900	)	(34	)%	26,700	37,800	(11,100	)	(29	)%
Non "traditional" military(C)	300	400	(100	)	(25	)%	600	600	—		—	%
"Expansion" markets(D)	5,900	7,300	(1,400	)	(19	)%	12,500	14,500	(2,000	)	(14	)%
Total worldwide units(E)	19,800	28,200	(8,400	)	(30	)%	39,800	52,900	(13,100	)	(25	)%
Combined class 8 trucks	6,600	10,800	(4,200	)	(39	)%	13,600	22,100	(8,500	)	(38	)%
Combined military(F)	400	400	—		—	%	700	1,400	(700	)	(50	)%

_____________________________

(A) U.S. and Canada School buses include buses classified as B, C and D.

(B) Chargeouts include CAT-branded units sold to Caterpillar under our North America supply agreement, and the chargeouts for the first quarter of 2012 were adjusted by 200 units to reflect the inclusion of these CAT-branded units.

(C) Excludes U.S. and Canada militarized commercial units included in "traditional" markets Class 8 severe service trucks and "expansion" markets.

(D) Includes chargeouts related to Blue Diamond Truck ("BDT") of 1,600 units and 1,700 units during the three months ended April 30, 2013 and 2012, respectively and 3,900 units and 3,200 units during the six months ended April 30, 2013 and 2012, respectively.

(E) Excludes chargeouts related to: (i) RV towables of 1,000 units and 800 units during the three months ended April 30, 2013 and 2012, respectively, and 1,700 units and 1,400 units during the six months ended April 30, 2013 and 2012, respectively, and (ii) units, previously included in "Expansion" markets that were restated as a result of Monaco and WCC being classified as discontinued operations, of 200 units and 200 units during the three months ended April 30, 2013 and 2012 and 400 units and 400 units during the six months ended April 30, 2013 and 2012, respectively.

(F) Includes military units included within "traditional" markets Class 8 severe service, "expansion" markets, and all units reported as non "traditional" military.

Engine segment shipments

	Three Months Ended April 30,				% Change		Six Months Ended April 30,				% Change
(in units)	2013	2012	Change				2013	2012	Change
OEM sales-South America	30,800	25,300	5,500		22	%	56,400	49,400	7,000		14	%
Intercompany sales	15,100	23,400	(8,300	)	(35	)%	31,600	45,000	(13,400	)	(30	)%
Other OEM sales	2,300	2,000	300		15	%	4,200	4,200	—		—	%
Total sales	48,200	50,700	(2,500	)	(5	)%	92,200	98,600	(6,400	)	(6	)%

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Liquidity and Capital Resources

(in millions)	April 30, 2013		October 31, 2012		April 30, 2012
Consolidated cash and cash equivalents	$	505	$	1,087	$	400
Consolidated marketable securities	733		466		337
Consolidated cash, cash equivalents and marketable securities at end of the period	$	1,238	$	1,553	$	737

Cash Requirements

We generate cash flow from the sale of trucks, diesel engines, and parts and from product financing provided to our dealers and retail customers by our financial services operations. It is our opinion that, in the absence of significant extraordinary cash demands, current and forecasted cash flow from our manufacturing operations, financial services operations, and financing capacity will provide sufficient funds to meet operating requirements, capital expenditures, equity investments, and strategic acquisitions. We also believe that collections on our outstanding receivables portfolios as well as funds available from various funding sources will permit our financial services operations to meet the financing requirements of our dealers.

Our manufacturing operations are generally able to access sufficient sources of financing to support our business plan. In August 2012, NIC and Navistar, Inc. signed a definitive credit agreement relating to a senior secured, term loan credit facility in an aggregate principal amount of $1 billion (the "Term Loan Credit Facility") and borrowed an aggregate principal amount of $1 billion under the Term Loan Credit Facility. In conjunction with the Term Loan Credit Facility transaction, we used a portion of the proceeds from the Term Loan Credit Facility to repay all of the borrowings under Navistar, Inc.'s existing Asset-Based Credit Facility and Navistar, Inc. entered into an Amended and Restated Asset-Based Credit Facility with a commitment amount of up to $175 million. The Term Loan Credit Facility is intended to: (i) support the adoption of an after-treatment solution to accelerate delivery of our next generation clean engine solution, (ii) support the market transition plan for Class 8 engine sales, and (iii) improve our financial flexibility. During the second quarter of 2013, we amended our Term Loan Credit Facility whereby we lowered our interest rate and modified the maturity date to August 17, 2017. We also utilized proceeds from the March 2013 issuance of $300 million of additional Senior Notes to make a principal repayment of $300 million against our Senior Secured Term Loan Credit Facility. For additional information, see Note 7, Debt, to the accompanying consolidated financial statements.

In October 2012, the Company completed a public offering of 10,666,666 shares of NIC common stock at a price of $18.75 per share and received proceeds, net of underwriting discounts, commissions, and offering expenses, of $192 million. In connection with the public offering, in November 2012, the underwriters elected to exercise a portion of an over-allotment option and purchased an additional 763,534 shares of NIC common stock at a price of $18.75 per share. The Company received proceeds from the exercise of the over-allotment, net of underwriting discounts and commissions, of $14 million in the first quarter of 2013.

Consolidated cash, cash equivalents and marketable securities was $1.2 billion at April 30, 2013, which includes $34 million of cash and cash equivalents attributable to BDT and BDP, as well as an immaterial amount of cash and cash equivalents of certain VIEs that is generally not available to satisfy our obligations. For additional information on the consolidation of BDT and BDP, see Note 1, Summary of Significant Accounting Policies, to the accompanying consolidated financial statements.

Cash Flow Overview 

	Six Months Ended April 30, 2013
(in millions)	Manufacturing Operations			Financial Services Operations and Adjustments			Condensed Consolidated Statement of Cash Flows
Net cash provided by (used in) operating activities	$	(237	)	$	194		$	(43	)
Net cash used in investing activities	(556		)	(20		)	(576		)
Net cash provided by (used in) financing activities	205			(163		)	42
Effect of exchange rate changes on cash and cash equivalents	(6		)	1			(5		)
Increase (decrease) in cash and cash equivalents	(594		)	12			(582		)
Cash and cash equivalents at beginning of the period	1,059			28			1,087
Cash and cash equivalents at end of the period	$	465		$	40		$	505

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	Six Months Ended April 30, 2012
(in millions)	Manufacturing Operations			Financial Services Operations and Adjustments			Condensed Consolidated Statement of Cash Flows
Net cash provided by (used in) operating activities	$	(214	)	$	263		$	49
Net cash provided by investing activities	181			144			325
Net cash used in financing activities	(87		)	(423		)	(510		)
Effect of exchange rate changes on cash and cash equivalents	(4		)	1			(3		)
Decrease in cash and cash equivalents	(124		)	(15		)	(139		)
Cash and cash equivalents at beginning of the period	488			51			539
Cash and cash equivalents at end of the period	$	364		$	36		$	400

_____________________

Manufacturing Operations cash flows and Financial Services Operations cash flows are not in accordance with, or an alternative for, GAAP. This non-GAAP financial information should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP. However, we believe that non-GAAP reporting, giving effect to the adjustments shown in the reconciliation above, provides meaningful information and therefore we use it to supplement our U.S. GAAP reporting by identifying items that may not be related to the core manufacturing business. Management often uses this information to assess and measure the performance and liquidity of our operating segments. Our Manufacturing Operations, for this purpose, include our Truck segment, Engine segment, Parts segment, and Corporate items which include certain eliminations. The reconciling differences between these non-GAAP financial measures and our U.S. GAAP consolidated financial statements in Item 1, Financial Statements and Supplementary Data, are our Financial Services Operations and adjustments required to eliminate certain intercompany transactions between Manufacturing Operations and Financial Services Operations. Our Financial Services Operations cash flows are presented consistent with their treatment in our Condensed Consolidated Statements of Cash Flows and may not be consistent with how they would be treated on a stand-alone basis. We have chosen to provide this supplemental information to allow additional analyses of operating results, to illustrate the respective cash flows giving effect to the non-GAAP adjustments shown in the above reconciliation and to provide an additional measure of performance and liquidity.

Manufacturing Operations

Manufacturing Cash Flow from Operating Activities

Cash used in operating activities for the six months ended April 30, 2013 and 2012 was $237 million and $214 million, respectively. The net increase in cash used in the first six months of 2013, versus the comparable period in 2012, was primarily attributable to a negative impact from the change in accounts receivable and other non-current liabilities, partially offset by a lower pre-tax loss and net improvements in the change in inventory and other current liabilities.

Cash paid for interest, net of amounts capitalized, was $103 million and$62 million for the six months ended April 30, 2013 and 2012, respectively.

Manufacturing Cash Flow from Investing Activities

Cash used in investing activities for the six months ended April 30, 2013 was$556 million, compared to cash provided of $181 million in the same period of 2012. The net increase in cash used in the first six months of 2013 was primarily attributable to higher purchases and lower sales of marketable securities. These items were partially offset by lower capital expenditures, lower investments in non-consolidated affiliates, and the receipt of proceeds from the sale of the Mahindra Joint Ventures.

Also impacting the investing activities were increased purchases of equipment leased to others. Certain third-party equipment financings by GE are accounted for as borrowings. The initial transactions do not qualify for revenue recognition as we retain substantial risks of ownership in the leased property. As a result, the proceeds from the transfer are recorded as an obligation and amortized to revenue over the term of the financing. In the second quarter of 2013, the Company recorded out-of-period adjustments for the correction of prior-period errors, which included recognizing Purchases of equipment leased to others of $184 million related to periods prior to fiscal 2013.

Manufacturing Cash Flow from Financing Activities

Cash provided by financing activities for the six months ended April 30, 2013 was $205 million, compared to $87 million of cash used in the same period of 2012.The net improvement in cash flow from financing activities was primarily attributable to share repurchases in 2012 that were not repeated in 2013, partially offset by the purchase of certain manufacturing equipment that was leased from a third-party. In addition, as described above, certain out-of-period adjustments for the correction of prior-period errors, which included recognizing Proceeds from financed lease obligations of $201 million related to periods prior to fiscal 2013, which contributed to the increase in cash provided by financing activities.

58

Financial Services Operations

Financial Services and Adjustments Cash Flow from Operating Activities

Cash provided by operating activities for the six months ended April 30, 2013 and 2012 was $194 million and $263 million, respectively. The net decrease in cash provided by operating activities for 2013, versus the comparable period in 2012 was primarily due to the lower margin by which the retail notes portfolio liquidations exceeded originations, as well as lower income.

Cash paid for interest, net of amounts capitalized, was $27 million and $41 million for six months ended April 30, 2013 and 2012, respectively. The decrease for 2013 compared to 2012 is a result of lower average debt balances as funding requirements have declined, and lower average interest rates.

Financial Services and Adjustments Cash Flow from Investing Activities

Cash used in investing activities for the six months ended April 30, 2013 was $20 million, compared to cash provided of $144 million for the same period in 2012. Reductions in restricted cash levels required under our secured borrowings were the primary sources of cash from investing activities in 2013 and 2012. In 2013, the reduction in cash provided from this source corresponds to lower retail securitization balances. Additionally, there were increased investments in marketable securities and equipment under operating leases in 2013. In 2012, the reduction in restricted cash resulted from the maturity and repayment of $250 million of investor notes in January 2012, net of principal accumulation.

Financial Services and Adjustments Cash Flow from Financing Activities

Cash used in financing activities for the six months ended April 30, 2013 and 2012 was $163 million and $423 million, respectively. Cash used in financing activities represents periodic payments on our funding facilities in excess of new funding requirements. The decrease is primarily due to the lower margin by which periodic payments on our funding facilities exceeded new funding requirements, and the effect of the repayment of the $250 million of investor notes in January 2012, net of principal accumulation.

Pension and Other Postretirement Benefits

The Company’s pension plans are funded by contributions made from Company assets in accordance with applicable U.S. and Canadian government regulations. The regulatory funding requirements are computed using an actuarially determined funded status, which is determined using assumptions that often differ from assumptions used to measure the funded status for U.S. GAAP. U.S. funding targets are determined by rules promulgated under the Pension Protection Act ("PPA"). The PPA additionally requires underfunded plans to achieve 100% funding over a period of time. From time to time, we have discussions with and receive requests for certain information from the Pension Benefit Guaranty Corporation ("PBGC"). The PBGC was created by the Employee Retirement Income Security Act of 1974 to encourage the continuation and maintenance of private-sector defined benefit pension plans, provide timely and uninterrupted payment of pension benefits, and keep pension insurance premiums at a minimum. In July 2012, the Moving Ahead for Progress in the 21st Century Act was signed into law, impacting the minimum funding requirements for pension plans, but does not otherwise impact our accounting for pension benefits.

Generally, our pension plans are funded by contributions made by us. Our policy is to fund the pension plans in accordance with applicable U.S. and Canadian government regulations and to make additional contributions from time to time.

For the three and six months ended April 30, 2013, we contributed $30 million and $57 million, respectively, and for the three and six months ended April 30, 2012, we contributed $53 million and $82 million, respectively, to our U.S. and Canadian pension plans (the "Plans") to meet regulatory minimum funding requirements. We currently anticipate additional contributions of approximately $109 million during the remainder of 2013. Future contributions are dependent upon a number of factors, principally the changes in values of plan assets, changes in interest rates, the impact of any funding relief currently under consideration, and the impact of funding resulting from the closure of our Chatham plant. We currently expect that from 2014 through 2016, the Company will be required to contribute at least $200 million per year to the plans, depending on asset performance and discount rates.

For more information, see Note 8, Postretirement Benefits, to the accompanying consolidated financial statements.

59

Other Information

Impact of Environmental Regulation

Government regulation related to climate change is under consideration at the U.S. federal and state levels. Because our products use fossil fuels, they may be impacted indirectly due to regulation, such as a cap and trade program, affecting the cost of fuels. On May 21, 2010, President Obama directed the EPA and the Department of Transportation to adopt rules by July 30, 2011 setting greenhouse gas emission and fuel economy standards for medium and heavy-duty engines and vehicles beginning with model year 2014. The EPA and The National Highway Traffic Safety Administration issued proposed rules on November 30, 2010. We were active participants in the discussions surrounding the development of regulations and filed comments with the EPA on the proposed rules on January 31, 2011. The final rules, which were issued on September 15, 2011, begin to apply in 2014 and are fully implemented in model year 2017. The agencies' stated goals for these rules were to increase the use of currently existing technologies. The Company plans to comply with these rules through use of existing technologies and implementation of emerging technologies as they become available. Several of the Company's vehicles have been certified early for the 2013 model year with the remaining vehicles and all engines required to be certified in 2014. In addition to the U.S., Canada and Mexico are also considering the adoption of fuel economy and/or greenhouse gas regulations. On April 14, 2012, Canada issued for comment proposed greenhouse gas emissions regulations (the "Canadian Proposal"), which are similar to the U.S. regulations. Those regulations became final in February 2013. The regulations are substantially aligned with U.S. greenhouse gas regulations. We expect that heavy duty vehicle and engine fuel economy rules will be under consideration in other global jurisdictions in the future. These standards will impact development and production costs for vehicles and engines. There will also be administrative costs arising from the implementation of the rules.

Our facilities may be subject to regulation related to climate change and climate change itself may also have some impact on the Company's operations. However, these impacts are currently uncertain and the Company cannot predict the nature and scope of those impacts.

Critical Accounting Policies and Estimates

Our consolidated financial statements are prepared in accordance with U.S. GAAP. In connection with the preparation of our consolidated financial statements, we use estimates and make judgments and assumptions about future events that affect the reported amounts of assets, liabilities, revenue, expenses, and the related disclosures. Our assumptions, estimates, and judgments are based on historical experience, current trends, and other factors we believe are relevant at the time we prepare our consolidated financial statements.

Our significant accounting policies and critical accounting estimates are consistent with those discussed in Note 1, Summary of Significant Accounting Policies, to the consolidated financial statements and the MD&A section of our Annual Report on Form 10-K for the year ended October 31, 2012. During the six months ended April 30, 2013, there were no significant changes in our application of our critical accounting policies.

To aid in fully understanding and evaluation our reporting results, we have identified the following accounting policies as our most critical because they require us to make difficult, subjective, and complex judgments.

• Pension and Other Postretirement Benefits

• Allowance for Doubtful Accounts

• Income Taxes

• Impairment of Long-Lived Assets

• Goodwill

• Indefinite-Lived Intangible Assets

• Contingency Accruals

Recently Issued Accounting Standards

There are no recently issued accounting standards for which the Company expects a material impact on our consolidated financial statements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

See Item 7A, Quantitative and Qualitative Disclosures about Market Risk, of our Annual Report on Form 10-K for the year ended October 31, 2012. During the six months ended April 30, 2013, there have been no significant changes in our exposure to market risk.

60

Item 4.Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer and the Chief Financial Officer, to allow timely decisions regarding required disclosures.

In connection with the preparation of this report, our management, under the supervision and with the participation of the Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of April 30, 2013. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the quarter ended April 30, 2013, our disclosure controls and procedures were effective.

(b) Changes in Internal Control over Financial Reporting

There were no material changes in our internal control over financial reporting identified in connection with the evaluation required by Rules 13a-15 and 15d-15 under the Exchange Act that occurred during the quarter ended April 30, 2013 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

61

PART II—Other Information

Item 1.     Legal Proceedings

During the six months ended April 30, 2013, there have been no material developments from the legal proceedings disclosed in our Annual Report on Form 10-K for our fiscal year ended October 31, 2012, except: (i) those disclosed in Part II, Item 1 of our Quarterly Report on Form 10-Q for the period ended January 31, 2013; and (ii) those disclosed below:

Lis Franco de Toledo, et. al. vs Syntex do Brasil and IIAA

In January 2013, Wyeth filed an appeal to the San Paulo court's December 2012 decision, and in April 2013, MWM filed an answer to the appeal.

In May 2013, the Court of Appeals determined the damages amount to be R$25 million (the equivalent of approximately US$13 million at April 30, 2013).

CARB Notice of Violation

In April 2013, Navistar, Inc. received a notice of violation and proposed settlement (“Notice”) from the California Air Resources Board (“CARB”). The Notice alleges violations of the California regulations relating to verification of after-treatment devices and proposed civil penalties of approximately $2 million, among other proposed settlement terms.  The Company is in discussions with the CARB regarding this matter.

Shareholder Litigation

In March 2013, a putative class action complaint, alleging securities fraud, was filed against us by the Construction Workers Pension Trust Fund - Lake County and Vicinity, on behalf of itself and all other similarly situated purchasers of our common stock between the period of November 3, 2010 and August 1, 2012. A second class action complaint was filed in April 2013 by the Norfolk County Retirement System, individually and on behalf of all other similarly situated purchasers of our common stock between the period of June 9, 2010 and August 1, 2012. A third class action complaint was filed in April 2013 by Jane C. Purnell FBO Purnell Family Trust, on behalf of itself and all other similarly situated purchasers of our common stock between the period of November 3, 2010 and August 1, 2012. Each complaint named us as well as Daniel C. Ustian, our former President and Chief Executive Officer, and Andrew J. Cederoth, our current Executive Vice President and Chief Financial Officer as defendants. These complaints (collectively, the “10b5 cases”) contain similar factual allegations which include, among other things, that we violated the federal securities laws by knowingly issuing materially false and misleading statements concerning our financial condition and future business prospects and that we misrepresented and omitted material facts in filings with the SEC concerning the timing and likelihood of the U.S. Environmental Protection Agency (“EPA”) certification of our EGR technology to meet 2010 EPA emission standards.  The plaintiffs in these matters seek compensatory damages and attorneys' fees, among other relief.

In March 2013, James Gould filed a derivative complaint on behalf of the Company against us and certain of our current and former directors and officers.  The complaint alleges, among other things, that certain of our current and former directors and officers committed a breach of fiduciary duty, waste of corporate assets and were unjustly enriched in relation to similar factual allegations made in the 10b5 cases.  The plaintiff in this matter seeks compensatory damages, certain corporate governance reforms, certain injunctive relief, disgorgement of the proceeds of certain defendants' profits from the sale of Company stock, and attorneys' fees, among other relief. Pursuant to a court order in May 2013, this matter has been stayed until the outcome of any motion to dismiss in the 10b5 cases.

Each of these matters is pending in the United States District Court, Northern District of Illinois.

6.4 Liter Diesel Engine Litigation

Plaintiff Steve Darne ("Darne") filed a putative class action lawsuit in May 2013 against Navistar, Inc. and Ford Motor Company in the federal court for the Northern District of Illinois.  The complaint seeks to certify a class of United States owners and lessees of Ford vehicles powered by the 6.4L Power Stroke ® engine (and in the alternative purports to certify a class of Illinois owners and lessees) that Navistar, Inc. previously supplied to Ford. Darne alleges that Ford vehicles equipped with a 6.4L engine had numerous design and manufacturing defects and that Navistar, Inc. and Ford knew of such engine problems but failed to disclose them to consumers. Darne asserts claims against Navistar, Inc. based on theories of negligence, deceptive trade practices, consumer fraud, unjust enrichment, and intentional conduct.  For relief, Darne seeks dollar damages sufficient to remedy the alleged defects, compensate the proposed class members for alleged incurred damages, and compensate plaintiff's counsel.  Darne also asks the Court to award punitive damages and restitution/disgorgement.

For further information regarding these and other legal proceedings, see Note 12, Commitments and Contingencies, to the accompanying consolidated financial statements.

62

Item 1A. Risk Factors

During the six months ended April 30, 2013, there have been no material changes from the risk factors disclosed in our Annual Report on Form 10-K for our year ended October 31, 2012.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Recent Sales of Unregistered Securities

Our directors who are not employees receive an annual retainer, which is payable at their election either in shares of our common stock or in cash allocated in quarterly installments. A director may also elect to defer any portion of such compensation until a later date. Each such election is made prior to December 31^st for the next calendar year. The Board of Directors has mandated that at least $20,000 of the annual retainer be paid in the form of shares of our common stock. During the three months ended April 30, 2013, four directors elected to defer all or a portion of their annual retainer fees in shares, and were credited with an aggregate of 2,632.734 deferred stock units (each such stock unit corresponding to one share of common stock) at a price of $34.19. These stock units were issued to our directors without registration under the Securities Act, in reliance on Section 4(2) based on the directors' financial sophistication and knowledge of the Company.

Purchases of Equity Securities

There were no purchases of equity securities by us or affiliates during the three months ended April 30, 2013.

Item 3. Defaults upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit:		Page
(3)	Articles of Incorporation and By-Laws	E-1
(10)	Material Contracts	E-2
(31.1)	CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	E-13
(31.2)	CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	E-14
(32.1)	CEO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	E-15
(32.2)	CFO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	E-16
(99.1)	Additional Financial Information (Unaudited)	E-17
(101.INS)	XBRL Instance Document	N/A
(101.SCH)	XBRL Taxonomy Extension Schema Document	N/A
(101.CAL)	XBRL Taxonomy Extension Calculation Linkbase Document	N/A
(101.LAB)	XBRL Taxonomy Extension Label Linkbase Document	N/A
(101.PRE)	XBRL Taxonomy Extension Presentation Linkbase Document	N/A
(101.DEF)	XBRL Taxonomy Extension Definition Linkbase Document	N/A

All exhibits other than those indicated above are omitted because of the absence of the conditions under which they are required or because the information called for is shown in the consolidated financial statements and notes thereto in the Quarterly Report on Form 10-Q for the period ended April 30, 2013.

63

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

NAVISTAR INTERNATIONAL CORPORATION

(Registrant)

/s/    RICHARD C. TARAPCHAK

Richard C. Tarapchak

Senior Vice President and Controller

(Principal Accounting Officer)

June 10, 2013

64

EX-3

EXHIBIT 3

NAVISTAR INTERNATIONAL CORPORATION

AND CONSOLIDATED SUBSIDIARIES

 ______________________________

ARTICLES OF INCORPORATION AND BY-LAWS

The following documents of Navistar International Corporation are incorporated herein by reference:

3.1	Restated Certificate of Incorporation of Navistar International Corporation effective July 1, 1993. Filed as Exhibit 3.2 to Annual Report on Form 10-K for the period ended October 31, 1993, which was dated and filed on January 27, 1994, and amended as of May 4, 1998. Commission File No. 001-9618.
3.2	Certificate of Amendment to Restated Certificate of Incorporation, filed with the Secretary of State of the State of Delaware effective February 17, 2011. Filed as Exhibit 3.1 to Current Report on Form 8-K, which was dated and filed on February 17, 2011. Commission File No. 001-09618.
3.3	Certificate of Amendment to Restated Certificate of Incorporation, filed with the Secretary of State of the State of Delaware effective February 21, 2012. Filed as Exhibit 3.1 to Current Report on Form 8-K, which was dated and filed on February 21, 2012. Commission File No. 001-09618.
3.4	Certificate of Retirement of Class B Common Stock of Navistar International Corporation, effective April 19, 2013. Filed as Exhibit 3.1 to Current Report on Form 8-K, which was dated and filed on April 22, 2013. Commission File No. 001-09618.
3.5	Third Amended and Restated By-Laws of Navistar International Corporation effective October 5, 2012. Filed as Exhibit 3.1 to Current Report on Form 8-K, which was dated and filed on October 10, 2012. Commission File No. 001-09618.
3.7	Certificate of Designation, Preferences and Rights of Junior Participating Preferred Stock, Series A filed with the Secretary of State for the State of Delaware on June 20, 2012 establishing the Series A Preferred Stock of Navistar International Corporation in accordance with the Restated Certificate of Incorporation of Navistar International Corporation. Filed as Exhibit 3.2 to Current Report on Form 8-K which was dated and filed on June 20, 2012. Commission File No. 001-09618.

E- 1

EX-10

EXHIBIT 10

MATERIAL CONTRACTS

The following documents of Navistar International Corporation, its principal subsidiary Navistar, Inc., and its indirect subsidiary Navistar Financial Corporation are incorporated herein by reference.

10.1	Amendment No. 1 to the Pooling and Servicing Agreement, dated as of February 13, 2013, among Navistar Financial Securities Corporation, as depositor, Navistar Financial Corporation, as servicer, and Navistar Financial Dealer Note Master Owner Trust II, as issuing entity. Filed as Exhibit 10.1 to Current Report on Form 8-K dated and filed on February 15, 2013. Commission File No. 001-09618.
10.2	Amendment No. 1 to Indenture, dated as of February 13, 2013, between Navistar Financial Dealer Note Master Owner Trust II, as issuing entity, and Citibank, N.A., as indenture trustee. Filed as Exhibit 10.2 to Current Report on Form 8-K dated and filed on February 15, 2013. Commission File No. 001-09618.
10.3	Series 2013-1 Indenture Supplement to the Indenture, dated as of February 14, 2013, between Navistar Financial Dealer Note Master Owner Trust II, as issuing entity, and Citibank, N.A., as indenture trustee. Filed as Exhibit 10.3 to Current Report on Form 8-K dated and filed on February 15, 2013. Commission File No. 001-09618.
*10.4	Navistar International Corporation 2013 Performance Incentive Plan. Filed as Exhibit 10.1 to Current Report on Form 8-K dated and filed on February 19, 2013. Commission File No. 001-09618.
*10.5	Fiscal Year 2013 Long-Term Equity Grant award description to named executive officers. Filed as Exhibit 10.2 to Current Report on Form 8-K dated and filed on February 19, 2013. Commission File No. 001-09618.
*10.6	John J. Allen (a named executive officer) Retention Grant Award description included as Item 5.02 in the Current Report on Form 8-K dated and filed on February 19, 2013. Commission File No. 001-09618.
10.7	Amendment No. 1 to the Note Purchase Agreement, dated as of March 18, 2013, among Navistar Financial Securities Corporation, as the seller, Navistar Financial Corporation, as the servicer, The Bank of Nova Scotia, as a managing agent and as a committed purchaser, Liberty Street Funding LLC, as a conduit purchaser, Credit Suisse AG, New York Branch, as a managing agent, Credit Suisse AG, Cayman Islands Branch, as a committed purchaser, Alpine Securitization Corp., as a conduit purchaser, and Bank of America, National Association, as administrative agent, as a managing agent and as a committed purchaser. Filed as Exhibit 10.1 to the Current Report on Form 8-K dated and filed on March 20, 2013. Commission File No. 001-09618.
10.8	First Amendment to the Term Loan Credit Agreement, the Guarantee and Collateral Agreement, and the Collateral Cooperation Agreement, dated April 2, 2013, among Navistar, Inc., as Borrower, Navistar International Corporation, the Lenders party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent and Collateral Agent. Filed as Exhibit 10.1 to the Current Report on Form 8-K dated and filed on April 8, 2013. Commission File No. 001-09618.
10.9	Amendment No. 1 to the Amended and Restated ABL Credit Agreement and the Amended and Restated Security Agreement, dated April 2, 2013, among Navistar, Inc., as Borrower, the financial institutions party thereto, and Bank of America, N.A., as Administrative Agent. Filed as Exhibit 10.2 to the Current Report on Form 8-K dated and filed on April 8, 2013. Commission File No. 001-09618.
*10.10	Employment and Services Agreement, dated April 22, 2013 and effective April 15, 2013, among Navistar International Corporation, Navistar, Inc. and Troy A. Clarke. Filed as Exhibit 10.1 to the Current Report on Form 8-K/A dated and filed on April 22, 2013. Commission File No. 001-09618.

The following documents of Navistar International Corporation are filed herewith:

*10.11	Board of Directors resolution approving the Non-Executive Chairman Compensation.
*10.12	Amended and Restated Executive Stock Ownership Program.

______________________

* Indicates a management contract or compensatory plan or arrangement required to be filed or incorporated by reference as an exhibit to this report.

E- 2

Exhibit 10.11

Non-Executive Chairman Compensation Resolutions

RESOLVED, that the additional cash retainer for the Non-Executive Chairman of the Board of $140,000 be, and hereby is, approved.

E- 3

Exhibit 10.12

Navistar International Corporation

Executive Stock Ownership Program

(Amended and restated as of May 15, 2013)

Introduction.

Principal Office and Telephone Number. The principal executive office of Navistar International Corporation (the “Company” or “Corporation”) is located at 2701 Navistar Drive, Lisle, Illinois 60532, and the Company's telephone number is (331) 332-5000.

The Program. On June 16, 1997, the Board of Directors (the “Board”) of Navistar International Corporation (the "Company") approved the terms of the Executive Stock Ownership Program, as may be subsequently amended from time to time (the "Program"), in which all officers and senior managers of the Company and its participating subsidiaries or affiliates who are employed in organization level 9 or above (or its equivalent under prior or future organization structures) (individually, a “Participant” and collectively, the "Participants") will participate. As a Participant, the Program requires you to make a substantial investment in the common stock of the Company. This document describes the terms of the Program.

Senior management and the Board believe that, in order for the Company to become the best truck and engine company in North America, senior management of the Company and its participating subsidiaries or affiliates must have a significant ownership stake in the Company. The Program requires you and every other member of senior management to acquire such an ownership stake, and to do so promptly. The goal of the Program is to secure your individual commitment to the management team that intends to implement the vision for the Company and our shareowners, by requiring you to make an "at risk" investment of personal funds as well as career success in the Company. In this way, the Program will reinforce the behavior of every member of senior management to act like an owner.

In connection with the adoption of the Program, the Board approved certain changes to the executive severance agreements that the Company enters into with its officers and senior managers. The new terms of the severance agreement enhance your protection in the event of a qualifying termination of employment or a change in control of the Company. In this way, the Company is making a greater commitment to you at the same time as you are making a greater commitment to the Company.

Administration. The Program is administered by the Company's Senior Vice President, Human Resources and Administration (the “Administrator”) who is hired by and serves at the pleasure of the Chief Executive Officer. The Administrator is responsible for the administration and management of the Program. All decisions of the Administrator will be final, conclusive and binding upon all parties. In administering the Program, the Administrator has full discretionary authority to interpret the provisions of the Program and to make any amendments to the terms of the Program. For further information about the Program, please contact the Administrator or the Company's Corporate Secretary at the Company's principal executive office.

ERISA and Certain Tax Provisions Not Applicable. The Program is not subject to any provisions of the Employee Retirement Income Security Act of 1974, as amended, (“ERISA”) and is not qualified under Section 401(a) of the Internal Revenue Code of 1986, as amended (the “Code”).

Other Program Information. No one has or may create a lien on any funds, securities, or other property held under the Program.

The Stock Ownership Requirement.

Mandatory Ownership Requirement. The Program imposes a mandatory requirement that you own a specified amount of the Company's common stock, $0.10 par value per share ("Stock"). Failure to continuously own the required amounts of Stock at the times required under the Program will constitute grounds for the conversion of future annual incentive payments into Deferred Shares (as discussed below).

Required Levels of Stock Ownership. Under the Program, you will be required to own a number of shares of Stock calculated by reference to your base salary, a multiplier assigned to your organization level (or its equivalent), and the average of the high and low prices of Stock on the date you first became subject to the Program (i.e., the date you are promoted to organization level 9 or above (or its equivalent) or are newly hired at organization level 9 or above (or its equivalent)). The actual number of shares of Stock that you will be required to own under the Program (the “Ownership Requirement") will be provided to you in a written statement. Exhibit A, which is attached hereto, provides you with a sample of this written statement.

E- 4

Subject to the Administator's right to review and amend the Program, your Ownership Requirement will not vary with changes in the market price of Stock during the life of the Program. In addition, your Ownership Requirement will not change in the event your base salary is increased or decreased while you remain in the same organization level (or its equivalent).

Unless otherwise determined by the Administrator, in the event you are promoted to a higher organization level (or its equivalent) after you become subject to the Program, you will become subject to the Ownership Requirement applicable to that organization level (or its equivalent), based on your then-current base salary. The additional number of shares of Stock needed to meet your new Ownership Requirement will be calculated based on the average of the high and low prices of Stock on the effective date of your promotion (net of the dollar amount associated with your original Ownership Requirement or, if applicable, each subsequent Ownership Requirement preceding the effective date of your most recent promotion, as appropriate, using the average of the high and low prices of Stock on the date you first became subject to the Program or, if applicable, the effective date of each such subsequent promotion preceding the effective date of your most recent promotion, as appropriate). For example, assume a Participant in organization level 10 (or its equivalent) is required to own 13,235 shares of Stock based on a $150,000 base salary, a multiplier of 1.5 times his base salary and a $17.00 average market price of the Stock on the date on which he or she first became subject to the Program. Further assume that the Participant is promoted to organization level 11 (or its equivalent) at a base salary of $200,000, with a multiplier of 2.25 times his or her base salary, when the average market price of the Stock on his date of promotion is $20. The additional number of shares of Stock needed to satisfy his or her new Ownership Requirement is 11,250, calculated as follows:

Level 10:    $150,000    Base Salary

x 1.5        Organization Level Multiplier

$225,000    ÷ $17.00 = 13,235 Shares* Original Ownership Requirement

Level 11:    $200,000    Base Salary

x 2.25        Organization Level Multiplier

$450,000

‑$224,995    ($17.00 x 13,235 Shares)

$225,005    ÷ $20.00 = 11,250 Shares*     Additional Ownership Requirement

*Rounded down to the nearest number of whole shares.

Ownership Requirements will be reviewed from time to time, to adjust the Ownership Requirements to reflect, among other things, market conditions and the Company's ongoing executive compensation programs.

Time to Meet Ownership Requirement. The Ownership Requirement will be phased in, so that you will be required to own shares of Stock representing:

(i) one-fifth of your Ownership Requirement (the "Initial Ownership Requirement") within 6 months after the date you become subject to the Program (the "1^st Tranche Deadline");

(ii) three-fifths of your Ownership Requirement (the "Second Ownership Requirement") within 36 months after the date you become subject to the Program (the "2^nd Tranche Deadline"); and

(iii) the full amount of your Ownership Requirement (the “Final Ownership Requirement”) within 60 months after the date you become subject to the Program (the "Ownership Deadline").

In the case of any promoted or newly hired Participant, any additional or new Ownership Requirement will be phased in so that one-fifth of such additional or new Ownership Requirement must be met within 6 months after the date such Participant is promoted or newly hired, three-fifths within 36 months after such date, and in full within 60 months after such date. Except as otherwise provided herein or as otherwise determined by the Administrator, deadlines applicable to any original Ownership Requirement will not be altered.

Restriction on Sales or Dispositions of Stock. Once your Ownership Requirement is met, you must continue to own sufficient Stock to meet the Ownership Requirement until the Ownership Requirement lapses (as discussed below) or the Program is terminated. The Program is intended to be indefinite in duration. However, except as otherwise specified herein or as otherwise required by applicable law, the Company reserves the right to amend, modify, or terminate the Program at any time, in part or in its entirety, including, without limitation, with respect to any or all Participants, regardless of any resulting income tax or other consequences to Participants.

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Under the Program, you may not sell or dispose of any shares of Stock that you own (as determined under the Program) at any time that you have not met the full Ownership Requirement, or to the extent the sale or disposition would cause your ownership to fall below your full Ownership Requirement. This means, for example, that even if you own shares of Stock in excess of one-fifth of your Ownership Requirement between the 1^st Tranche Deadline and the 2^nd Tranche Deadline, you could not sell such excess shares. You can only sell shares of Stock if you have met your full Ownership Requirement, and only to the extent the sale of such shares does not cause you to fall below your full Ownership Requirement.

In the event that you should sell or dispose of shares of Stock in violation of the Program's requirements, such action may constitute grounds for the reduction of future equity awards and/or the conversion of future annual incentive payments into Deferred Shares (as discussed below). The Program does not impose a legal restriction on the transferability of the shares of Stock (other than Deferred Shares acquired under the Program and Premium Share Units awarded under the 2013 PIP, as discussed below), but imposes the potential penalty of the reduction of future equity awards and/or the conversion of future annual incentive payments into Deferred Shares (as discussed below). Thus, it is up to you to ensure that shares of Stock subject to the Program are not sold or disposed in violation of the Program's requirements. The Program does not prohibit a pledge of shares of Stock as security for a loan, but if the shares of Stock are sold or disposed of as a result of such pledge (for example, due to a default by you on such loan), such sale or disposition will constitute grounds for the reduction of future equity awards and/or the conversion of future annual incentive payments into Deferred Shares (as discussed below). Short positions and "put equivalent" derivative securities positions will be deemed a disposition for purposes of the Program. Please see the Company's Insider Trading Policy for directors, executive officers and certain senior management personnel for additional information on transactions with Navistar's Stock.

Securities Law Restrictions. On June 16, 1997, the Company filed a registration statement on Form S‑8 (the "Registration Statement") with the Securities and Exchange Commission (the "SEC") registering under the Securities Act of 1933, as amended (the "Securities Act"), the offer and sale of up to 650,000 shares in connection with the Program. Subject to the terms of the Program, participants who are not Affiliates (as defined below) of the Company and who acquire the Stock under the Program after becoming a participant in the Program generally will be entitled to resell such Stock in the public market without restrictions under the Securities Act. An “Affiliate” of an entity is defined in Rule 144 under the Securities Act as “a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with” such entity. An employee of the Company who is not an executive officer of the Company generally would not be deemed to be an Affiliate of the Company.

Resales by participants who are Affiliates of the Company are not covered by this prospectus (such participants are herein collectively referred to as “Restricted Participants”). Resales by such Restricted Participants are subject to certain restrictions under the Securities Act. An Affiliate of the Company may not offer or resell any shares of Stock acquired by them under the Program unless the offer and resale of such shares are registered by the Company under the Securities Act or unless an exemption from registration is available. In the absence of an effective registration statement, Affiliates may resell the Stock acquired under the Program only by complying with the requirements and limitations of Rule 144 under the Securities Act or other available exemption. Under Rule 144 offers or resales by Restricted Participants may be made without registration under the Securities Act where certain limitations are met as to the number of shares which may be sold over specified periods of time, the selling price thereof, the manner in which sales may be made and the minimum period of time which the shares must have been held.

Executive officers are also subject to the provisions of Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the rules and regulations promulgated thereunder, which, among other things, permit recovery by or on behalf of the Company of so-called “short-swing” profits arising from purchases and sales (or sales and purchases) of the Stock by such persons within any six-month period.

The foregoing is not intended to be a complete statement of applicable law, and participants, particularly executive officers of the Company, should consult their own counsel for information regarding restrictions on resale of the Stock acquired pursuant to the Program under the Securities Act and the Exchange Act.

All purchases and sales of Stock in the market are also subject to all applicable federal and state laws prohibiting transactions while in possession of certain material non-public information, and to all Company policies prohibiting trading on the basis of material non-public information. Under the Company's policies, you are required to pre-clear any transaction involving the acquisition or sale of shares of Stock with the Company's General Counsel or Corporate Secretary.

Shares Deemed Owned Under the Program. Shares of Stock that count toward meeting your Ownership Requirement are shares in which you have an exclusive pecuniary interest, and shares in which you and members of your immediate family have an exclusive pecuniary interest if such members have consented to such shares being deemed owned by you for purposes

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of the Program and being subject to the terms hereof. This would include shares of Stock owned directly by you, either in record name or in a brokerage account, shares owned by you as a participant in a tax-qualified defined contribution plan sponsored by the Company or any of its subsidiaries or affiliates (e.g. one of the Company's 401(k) Retirement Savings Plans), shares acquired under the Company's 2013 Performance Incentive Plan, as amended from time to time (the “2013 PIP”), shares acquired under the share purchase features of the Program, including units representing Deferred Shares (as discussed below) and Premium Share Units awarded under the 2013 PIP (as discussed below), and shares or share units under any other plan or program of the Company or any of its subsidiaries or affiliates if and to the extent so designated by the Administrator. In addition, shares or share units of Stock held under any Company plan under which the vesting conditions are not dependent upon the achievement of a performance goal will count toward meeting your Ownership Requirement; provided, however, that in the event you have irrevocably elected stock withholding in connection with an award of such shares or share units, the number of such shares or share units that count toward meeting your Ownership Requirement will be reduced to the net number of such shares or share units remaining after applying the applicable rate of withholding (rounded down to the nearest whole share).

On the other hand, shares or share units of Stock held under any Company plan that may or may not vest depending on the achievement of a performance goal will not be deemed to be owned by you until such time as such shares or share units have become vested, and shares which may be acquired upon exercise of an option (whether or not then exercisable) will not be deemed owned by you until such option is duly exercised. In this regard, the surrender or withholding of shares of Stock to pay the exercise price or tax withholding with respect to an option or vesting of shares or share units of Stock will not be deemed a sale or disposition of shares of Stock for purposes of the Program. Shares in which any other person (other than an immediate family member if such member has consented as aforesaid) has a pecuniary interest will not be deemed to be owned by you for purposes of the Program, and will not be subject to restrictions on sale or disposition.

Lapse of Ownership Requirement; Change in Control. Your Ownership Requirement will lapse upon your termination of employment for any reason. In addition, each Participant's Ownership Requirement will lapse upon a Change in Control, as defined below.

For purposes of the Program, a "Change in Control" shall be deemed to have occurred if (i) any "person" or "group" (as such terms are used in Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than employee or retiree benefit plans or trusts sponsored or established by the Corporation or Navistar, Inc., is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of securities of the Corporation representing 25% or more of the combined voting power of the Corporation's then outstanding securities, (ii) the following individuals cease for any reason to constitute more than three-fourths of the number of directors then serving on the Board of Directors : individuals who, on the date hereof, constitute the Board of Directors and any new director whose appointment or election by the Board of Directors or nomination for election by the Corporation's stockholders was approved by the vote of at least two-thirds (2/3) of the directors then still in office or whose appointment, election or nomination was previously so approved or recommended; (iii) any dissolution or liquidation of the Corporation or Navistar, Inc. or sale or disposition of all or substantially all (more than 50%) of the assets of the Corporation or of Navistar, Inc. occurs; or (iv) as the result of, or in connection with, any cash tender offer, exchange offer, merger or other business combination, sale of assets, proxy or consent solicitation, contested election or substantial stock accumulation (a "Control Transaction"), the members of the Board of Directors immediately prior to the first public announcement relating to such Control Transaction shall immediately thereafter, or within two (2) years, cease to constitute a majority of the Board of Directors. Notwithstanding the foregoing, the sale or disposition of any or all of the assets or stock of Navistar Financial Corporation shall not be deemed a Change in Control.

Ownership Reporting and Certification. Participants will be required to periodically file reports as to their ownership of shares of Stock under the Program, including acquisitions, sales or dispositions of Stock.

Acquisitions of Shares Under the Program.

Overview. The Program includes a number of features to enable Participants to acquire shares of Stock, as well as features to encourage or require Participants to make a substantial and prompt commitment to meeting their Ownership Requirement.

Grandfathered Company Loans To Meet Ownership Requirements. In accordance with Section 402 of the Sarbanes-Oxley Act of 2002, effective July 30, 2002, the Company no longer extends or arranges for credit to Participants to assist them in meeting their Ownership Requirement. Any loans extended to Participants to assist them in meeting their Ownership Requirement prior to July 30, 2002 will be grandfathered and remain in effect in accordance with the terms and conditions as contained in their promissory note.

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Acquisitions From the Company. The Program provides for the purchase of units representing shares of Stock (“Deferred Shares”) from the Company. In addition, the Program provides for awards under the 2013 PIP of restricted stock units (“Premium Share Units”) as an incentive to Participants to promptly acquire shares of Stock to meet their Ownership Requirement. A Participant may acquire shares of Stock from the Company as follows:

(a) Base Salary Reduction. Up to four-fifths of your Ownership Requirement may be satisfied through base salary reduction, under which you can elect to purchase Deferred Shares by having a portion of your future base salary reduced, on a pre‑tax basis, over any period up to five years. You may elect any percentage between 10% and 50% of your future monthly base salary to be reduced and used to acquire Deferred Shares. If you wish to make a base salary reduction election, you must complete and submit Exhibit B, which is attached hereto, to the Office of the Secretary (1) within the first 30 days after you become subject to the Program (or first become eligible to participate in any other plan with which the Program is aggregated under applicable federal tax rules), or (2) if that 30-day period has expired, before the close of your taxable year (generally, December 31) preceding the taxable year in which you will earn the base salary that will be reduced. Except as permitted under applicable federal tax rules, including, without limitation, the requirements of Section 409A of the Internal Revenue Code of 1986, as amended, and applicable regulations and other applicable guidance issued thereunder (the “Code”), your base salary reduction election is irrevocable after the applicable election deadline described above. If you make a base salary reduction election, you will acquire Deferred Shares on each date on which the corresponding base salary reduction amount would otherwise have been payable to you in an amount determined by dividing (i) the amount of such base salary reduction to be applied to purchase Deferred Shares by (ii) the average of the high and low prices of a share of Stock as set forth in the New York Stock Exchange Composite Transactions listing published in the Wall Street Journal or equivalent financial publication (the “Fair Market Value”) on the date your base salary reduction would have been otherwise payable to you (or if that date is not a trading day, on the most recent previous trading date). Your base salary deduction will be evidenced by a bookkeeping entry, backed only by the Company's general assets that are subject to the Company's creditors. Deferred Shares acquired through the application of your base salary reduction election will be immediately fully vested, provided that such Deferred Shares generally will not be settled by delivery of actual Stock until your termination of employment (as described below).

(b) Annual Incentive Reduction. Your Ownership Requirement may be satisfied through annual incentive reduction, under which you can elect to purchase Deferred Shares by having a portion of any future annual incentive payments, if any, (from all plans sponsored by the Company or any of its subsidiaries or affiliates) reduced, on a pre‑tax basis. You may elect any percentage between 50% and 100% of any of your future annual incentives payments, if any, to be reduced on an annual basis and used to acquire Deferred Shares. If you wish to make an annual incentive reduction election, you must complete and submit Exhibit C, which is attached hereto, to the Office of the Secretary (1) within the first 30 days after you become subject to the Program (or first become eligible to participate in any other plan with which the Program is aggregated under applicable federal tax rules), or (2) if that 30-day period has expired, on or before the date that is six months before the end of the fiscal year to which your future annual incentive payment (if any) relates, provided that you perform services continuously from the later of the beginning of the fiscal year to which your future annual incentive payment relates or the date on which the Board establishes the performance criteria for the fiscal year to which your future annual incentive payment relates through the date your election is made. Except as permitted under applicable federal tax rules, including, without limitation, the requirements of Code Section 409A, your annual incentive reduction election is irrevocable after the applicable election deadline described above. If you make an annual incentive reduction election, you will acquire Deferred Shares at the date on which your annual incentive payment (if any) would otherwise have been payable to you in an amount determined by dividing (i) the amount of such annual incentive payment to be applied to the purchase Deferred Shares by (ii) the Fair Market Value of a share of Stock at the date the annual incentive payment (if any) would have been otherwise payable to you (or if that date is not a trading day, on the most recent previous trading day). Your annual incentive reduction will be evidenced by a bookkeeping entry, backed only by the Company's general assets that are subject to the Company's creditors. Deferred Shares acquired through the application of your annual incentive reduction election will be immediately fully vested, provided that such Deferred Shares generally will not be settled by delivery of actual Stock until your termination of employment (as described below). In the event that you fail at any time to meet your Ownership Requirement within the timeframes prescribed herein, then 100% of all future annual incentive payments to which you may become entitled under any plan sponsored by the Company or any of its subsidiaries or affiliates will automatically be applied to purchase Deferred Shares until your Ownership Requirement has been met.

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(c) Premium Share Units. Premium Share Units will be awarded to the Participant under the 2013 PIP as a reward for certain acquisitions of shares of Stock, as follows:

(1) To the extent any shares of Stock comprising your Initial Ownership Requirement consist of shares or share units of Stock awarded by the Company (but only to the extent such share units are vested, unless the Administrator determines otherwise), or are purchased on or before the 60^th day after you become subject to the Program (or, if applicable, become subject to a new Ownership Requirement) in the open market or from the Company (including by exercise of options or Deferred Shares acquired by base salary reduction or annual incentive payment reduction, but excluding all Premium Share Units) using personal funds or funds obtained from a source other than the Company, you will be awarded Premium Share Units under the 2013 PIP (as of the date you fulfill the tranche requirement) equal to 15% of such shares of Stock. To the extent any shares of Stock comprising your Second Ownership Requirement (less your Initial Ownership Requirement) consist of shares or share units of Stock awarded by the Company (but only to the extent such share units are vested, unless the Administrator determines otherwise), or are purchased on or before the 18^th month after the date you become subject to the Program (or, if applicable, become subject to a new Ownership Requirement) in the open market or from the Company (including by exercise of options or Deferred Shares acquired by base salary reduction or annual incentive payment reduction, but excluding all Premium Share Units), you will be awarded Premium Share Units under the 2013 PIP (as of the date you fulfill the tranche requirement) equal to 25% of such shares of Stock. To the extent any shares of Stock comprising your Final Ownership Requirement (less your First Ownership Requirement and Second Ownership Requirement) consist of shares or share units of Stock awarded by the Company (but only to the extent such share units are vested, unless the Administrator determines otherwise), or are purchased on or before the 36^th month after the date you become subject to the Program (or, if applicable, become subject to a new Ownership Requirement), in the open market or from the Company (including by exercise of options or Deferred Shares acquired by base salary reduction or by annual incentive payment reduction but excluding all Premium Share Units), you will be awarded Premium Share Units under the 2013 PIP (as of the date you fulfill the tranche requirement) equal to 25% of such shares of Stock.

(2) Deferred Shares acquired by base salary reduction will be counted as shares of Stock owned by the Participant for purposes of determining a Participant's eligibility to earn Premium Share Units.

(3) If you acquire Deferred Shares as a result of your election to reduce 50% of any future annual incentive payment, you will be awarded Premium Share Units under the 2013 PIP equal to 5% of the number of Deferred Shares so acquired. If you acquire Deferred Shares as a result of your election to reduce 100% of any future annual incentive payment, you will be awarded Premium Share Units under the 2013 PIP equal to 15% of the number of Deferred Shares so acquired. If you acquire Deferred Shares as a result of your election to reduce more than 50% but less than 100% of any future annual incentive payment, you will be awarded Premium Share Units under the 2013 PIP in an amount determined by interpolating on a straight-line basis between 5% and 15% of the number of Deferred Shares so acquired. Notwithstanding the foregoing, no Premium Share Units will be awarded to you as a result of the automatic reduction of any future annual incentive payment to purchase Deferred Shares attributable to your failure to meet your Ownership Requirement within the required timeframes prescribed under the Program. Premium Share Units awarded to you in connection with an annual incentive will be award as of the date the annual incentive payment would otherwise have been payable to you.

Terms of Deferred Shares and Premium Share Units. Premium Share Units will be granted and issued to each Participant under and in accordance with the terms and conditions of the 2013 PIP. Deferred Shares and Premium Share Units will be credited to a Participant's account in whole shares (rounded down to the nearest whole number). The holder of a Deferred Share or Premium Share Unit is not a shareholder of the Company and is not entitled to dividends, to vote, or to other rights of a shareholder. The holder of a Deferred Share or Premium Share Unit will generally be paid a cash dividend equal to the amount of any dividend paid on one share of Stock times the number of Deferred Shares and Premium Share Units credited to his or her account on a record date for such dividend; provided that, to the extent any dividend paid to shareholders of the Company constitutes an extraordinary dividend, in lieu of making such cash payment to the Participant, such amount shall be deemed reinvested in additional Deferred Shares or Premium Share Units (as the case may be) at the Fair Market Value of a share of Stock at the dividend payment date. Deferred Shares and Premium Share Units may not be transferred or disposed of by a Participant.

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All Premium Share Units are forfeitable until such time as they have vested. Deferred Shares acquired by application of salary reduction or by application of annual incentive payments are immediately fully vested at all times. To the extent an amount otherwise payable to the Participant in the form of cash dividend equivalent is to be deemed reinvested in additional Premium Share Units under the 2013 PIP, such Premium Share Units so acquired through dividend reinvestment on nonvested Premium Share Units ("Original Shares") will vest at such times and in such proportion to the vesting of the Original Shares. Additional Deferred Shares and Premium Share Units acquired through the deemed dividend reinvestment on Deferred Shares or vested Premium Share Units will be immediately fully vested. Except as described above with respect to the deemed dividend reinvestment in additional Premium Share Units, Premium Share Units shall vest in three equal installments on each of the first three anniversaries of the date on which such Premium Share Units are awarded, or earlier upon the occurrence of a Change in Control or termination of employment due to death, total and permanent disability, or qualified retirement in accordance with the terms of the 2013 PIP. In the event a Participant's termination of employment with the Company or its subsidiaries or affiliates for any other reason, any nonvested Premium Share Units shall be immediately forfeited. In addition, in the event a Participant sells or otherwise disposes of the underlying shares of Stock which were used in the measurement for awarding Premium Share Units, then all of the Participant's related nonvested Premium Share Units shall be immediately forfeited. A Participant shall not be treated as having sold or otherwise disposed of such underlying shares of Stock used in the measurement for awarding Premium Share Units unless he or she has sold or disposed of shares of Stock in excess of the number of his or her shares of Stock in respect of which no Premium Share Units were awarded.

Each Deferred Share and each vested Premium Share Unit will be settled by delivery of one share of Stock. Such settlement shall occur within ten days after a Participant's termination of employment (or, in the case of a Participant's retirement, such later date as may have been elected by a Participant under procedures approved by the Administrator); provided, however, that settlement shall be accelerated to the date of a Change in Control (subject to any deferral of settlement as may have been elected by a Participant under procedures approved by the Administrator). If and to the extent any settlement of a Deferred Share or vested Premium Share Unit under the Program is subject to and would otherwise violate the requirements under Code Section 409A: (1) a termination for settlement purposes shall not occur unless and until the Participant incurs a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h) (using “at least 80 percent” to determine the controlled group of corporations and businesses) (“Separation From Service”); (2) a retirement for settlement purposes shall not occur unless and until the Participant incurs a Separation From Service on or after attaining age 55 and completing 10 or more years of credited service, as defined under the Navistar, Inc. Retirement Plan for Salaried Employees (determined without regard to whether the Participant is eligible to participate thereunder); (3) a Change in Control for settlement purposes shall not occur unless and until it constitutes a “change in control event” within the meaning of Treasury Regulation Section 1.409A-3(i)(5); (4) in the event the Participant is a “specified employee” within the meaning of Treasury Regulation Section 1.409A-1(i) (including any elections made by the Company described therein) any settlement otherwise resulting from a Separation From Service shall occur on the earlier of (a) first business day six months after the date of the Participant's Separation From Service or (b) the date of the Participant's death; (5) such settlement will be deemed to occur under conditions that cause the settlement to comply with Code Section 409A and the Program shall be construed, administered, and/or amended (if permitted under Code Section 409A) to achieve that objective; and (6) in the event of any inconsistency between the terms of this Program and Code Section 409A, Code Section 409A shall prevail and govern.

Deferred Shares will be automatically and appropriately adjusted in the event of stock splits, stock dividends and other extraordinary, special, and non-recurring dividends, and other extraordinary corporate events. Premium Share Units will be automatically and appropriately adjusted in the event of a change in capitalization of the Company in accordance with the terms of the 2013 PIP.

Market Price Range

For the three years ending October 31, 2010, 2011 and 2012, the high and low sales price for the Company's Stock for the periods indicated was as follows:

Stock Price

Year Ending High      Low

October 31, 2010        $ 30.55$ 20.53

October 31, 2011        $ 74.60$ 26.89

October 31, 2012        $ 79.05$ 21.95

Prior to investing in the Stock, Participants are encouraged to obtain current information concerning the price of the Stock.

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Risk Factors and Certain Investment Considerations.

This prospectus and the information incorporated by reference in this prospectus may include forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act, and the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Such forward-looking statements only speak as of the date of this prospectus and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. Forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business strategy. These statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. As you read and consider this prospectus, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties and assumptions. Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. For a discussion on some of these factors, please refer to Item 1A of our most recent Form 10-K.

In addition, the market price of our Stock may fluctuate from time to time. For this reason, the value of the Stock you may hold may decrease or increase in value depending upon the market price of our Stock.

Federal Income Tax Consequences.

Shares of Stock purchased in the open market or from the Company with personal funds or the proceeds of a loan, which are held in the form of actual shares, will represent share ownership by the Participant, so that gains or losses realized upon the ultimate disposition of such shares will be capital gains or losses to the Participant. Deferred Shares will be rights acquired on a pre‑tax basis and will be evidenced by a bookkeeping entry, backed only by the Company's general assets. The settlement of Deferred Shares and Premium Share Units by issuance and delivery of shares of Stock will result in ordinary income to the Participant equal to the then fair market value of the shares delivered. Employment taxes (Social Security and Medicare) will be due and payable when Deferred Shares and Premium Share Units vest, even though income tax liability will be deferred until shares of Stock are delivered. Interest on a Company loan will be treated as "investment interest" and will be deductible by a Participant when paid, subject to the limitations applicable to "investment interest." Interest on a note that deferred the payment of interest until the end of the term of the note should be deductible each year during the term of the note. The note is treated as having been issued at a discount and the interest is deductible as original issue discount (“OID”). The amount of the deduction in each year is computed under a constant rate method.

The foregoing is a general summary of certain Federal income tax consequences. Participants are urged to consult their personal tax advisors regarding the tax consequences of their participation in the Program. Under IRS standards of professional practice, certain tax advice that may be used to support the promotion or marketing of transactions or arrangements must meet requirements as to form and substance. To assure compliance with these standards, you are hereby informed that (i) this document is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties, and (ii) you should seek advice based on your particular circumstances from an independent tax adviser.

Additional Information.

We are subject to the reporting and information requirements of the Exchange Act and as a result, are obligated to file periodic reports, proxy statements, and other information with the SEC. We make these filings available free of charge on our website (http://www.navistar.com) as soon as reasonably practicable after we electronically file such material with, or furnish them to, the SEC. The SEC maintains a website (http://www.sec.gov) that contains our annual, quarterly, and current reports, proxy, and information statements, and other information we file electronically with the SEC. You can read and copy any materials we file with the SEC at the SEC's Public Reference Room at 100 F Street, N.E., Room 1850, Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.

As stated above, the Company has filed the Registration Statement with the SEC to register the offering of shares of Common Stock pursuant to the Program. This prospectus constitutes part of the Registration Statement, but, as permitted by SEC rules, this prospectus does not contain all the information that you can find in the Registration Statement or the exhibits to the Registration Statement. For further information regarding the Company and the securities we offer, please reference the Registration Statement, including the exhibits thereto.

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The Company will provide without charge to any person to whom this prospectus is delivered, upon written or oral request of such person, a copy of all the documents which have been incorporated by reference in the Registration Statement and/or this prospectus, other than exhibits to such documents, unless such exhibits are specifically incorporated by reference into the documents so incorporated, and any other documents required to be delivered to employees pursuant to Rule 428(b) of the Securities Act. Requests for such copies should be directed to the Company, 2701 Navistar Drive, Lisle, Illinois 60532, Attention: Corporate Secretary (telephone number (331) 332-5000).

When you are deciding whether to purchase the shares described by this prospectus, you should rely only on the information incorporated by reference or provided in this prospectus or any supplement. The Company has not authorized anyone else to provide you with different information. This prospectus is not an offer to sell shares of Common Stock in any state where such an offer is not permitted. You should not assume that the information in this prospectus or any supplement is accurate as of any date other than the date on the front of those documents.

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EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Troy A. Clarke, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Navistar International Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: June 10, 2013

/s/     TROY A. CLARKE

Troy A. Clarke

President and Chief Executive Officer

(Principal Executive Officer)

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EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Andrew J. Cederoth, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Navistar International Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: June 10, 2013

/s/     ANDREW J. CEDEROTH        

Andrew J. Cederoth

Executive Vice President and Chief Financial Officer

(Principal Financial Officer)

E- 14

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Navistar International Corporation (the “Company”) on Form 10-Q for the period ended April 30, 2013 as filed with the Securities and Exchange Commission (the “SEC”) on the date hereof (the “Report”), I, Troy A. Clarke, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request.

Date: June 10, 2013

/s/     TROY A. CLARKE

Troy A. Clarke

President and Chief Executive Officer

(Principal Executive Officer)

This certification accompanies the Report pursuant to § 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. This certification shall also not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that the Company specifically incorporates it by reference.

E- 15

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Navistar International Corporation (the “Company”) on Form 10-Q for the period ended April 30, 2013 as filed with the Securities and Exchange Commission (the “SEC”) on the date hereof (the “Report”), I, Andrew J. Cederoth, Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request.

Date: June 10, 2013

/s/ ANDREW J. CEDEROTH

Andrew J. Cederoth

Executive Vice President and Chief Financial Officer

(Principal Financial Officer)

This certification accompanies the Report pursuant to § 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. This certification shall also not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that the Company specifically incorporates it by reference.

E- 16

EX-99.1

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.

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. Beginning in the first quarter of 2013, the Company began reporting the operating results of WCC and certain operating results of Monaco as discontinued operations. The Company's previously issued condensed statements of revenues and expenses have been restated to reflect this change.

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, 2013
(in millions)	Manufacturing Operations			Financial Services Operations			Adjustments			Consolidated Statement of Operations
Sales of manufactured products	$	2,487		$	—		$	—		$	2,487
Finance revenues	—			58			(19		)	39
Sales and revenues, net	2,487			58			(19		)	2,526
Costs of products sold	2,363			—			—			2,363
Restructuring charges	4			2			—			6
Selling, general and administrative expenses	290			23			(1		)	312
Engineering and product development costs	100			—			—			100
Interest expense	73			17			—			90
Other income, net	2			(3		)	(18		)	(19		)
Total costs and expenses	2,832			39			(19		)	2,852
Equity in income of non-consolidated affiliates	4			—			—			4
Income (loss) before equity income from financial services operations and income taxes	(341		)	19			—			(322		)
Equity income from financial services operations	12			—			(12		)	—
Income (loss) from continuing operations before income taxes	(329		)	19			(12		)	(322		)
Income tax expense	(15		)	(7		)	—			(22		)
Income (loss) from continuing operations	(344		)	12			(12		)	(344		)
Loss from discontinued operations, net of tax	(21		)	—			—			(21		)
Net income (loss)	(365		)	12			(12		)	(365		)
Less: Income attributable to non-controlling interests	9			—			—			9
Net income (loss) attributable to Navistar International Corporation	$	(374	)	$	12		$	(12	)	$	(374	)

E- 17

Condensed Statements of Revenues and Expenses

Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis)

	For the Six Months Ended April 30, 2013
(in millions)	Manufacturing Operations			Financial Services Operations			Adjustments			Consolidated Statement of Operations
Sales of manufactured products	$	5,085		$	—		$	—		$	5,085
Finance revenues	—			117			(39		)	78
Sales and revenues, net	5,085			117			(39		)	5,163
Costs of products sold	4,649			—			—			4,649
Restructuring charges	5			3			—			8
Selling, general and administrative expenses	556			43			(2		)	597
Engineering and product development costs	211			—			—			211
Interest expense	130			35			(1		)	164
Other income, net	(16		)	(5		)	(36		)	(57		)
Total costs and expenses	5,535			76			(39		)	5,572
Equity in income of non-consolidated affiliates	3			—			—			3
Income (loss) before equity income from financial services operations and income taxes	(447		)	41			—			(406		)
Equity income from financial services operations	26			—			(26		)	—
Income (loss) from continuing operations before income taxes	(421		)	41			(26		)	(406		)
Income tax expense	(22		)	(15		)	—			(37		)
Income (loss) from continuing operations	(443		)	26			(26		)	(443		)
Loss from discontinued operations, net of tax	(30		)	—			—			(30		)
Net income (loss)	(473		)	26			(26		)	(473		)
Less: Income attributable to non-controlling interests	24			—			—			24
Net income (loss) attributable to Navistar International Corporation	$	(497	)	$	26		$	(26	)	$	(497	)

E- 18

	For the Three Months Ended April 30, 2012
(in millions)	Manufacturing Operations			Financial Services Operations			Adjustments			Consolidated Statement of Operations
Sales of manufactured products	$	3,218		$	—		$	—		$	3,218
Finance revenues	—			67			(24		)	43
Sales and revenues, net	3,218			67			(24		)	3,261
Costs of products sold	2,900			—			—			2,900
Restructuring charges	19			—			—			19
Impairment of intangible assets	10			—			—			10
Selling, general and administrative expenses	353			20			(1		)	372
Engineering and product development costs	132			—			—			132
Interest expense	42			22			(2		)	62
Other expense (income), net	37			(3		)	(21		)	13
Total costs and expenses	3,493			39			(24		)	3,508
Equity in loss of non-consolidated affiliates	(4		)	—			—			(4		)
Income (loss) before equity income from financial services operations and income taxes	(279		)	28			—			(251		)
Equity income from financial services operations	18			—			(18		)	—
Income (loss) from continuing operations before income taxes	(261		)	28			(18		)	(251		)
Income tax benefit (expense)	133			(10		)	—			123
Income (loss) from continuing operations	(128		)	18			(18		)	(128		)
Loss from discontinued operations, net of tax	(34		)	—			—			(34		)
Net income (loss)	(162		)	18			(18		)	(162		)
Less: Income attributable to non-controlling interests	10			—			—			10
Net income (loss) attributable to Navistar International Corporation	$	(172	)	$	18		$	(18	)	$	(172	)

E- 19

	For the Six Months Ended April 30, 2012
(in millions)	Manufacturing Operations			Financial Services Operations			Adjustments			Consolidated Statement of Operations
Sales of manufactured products	$	6,183		$	—		$	—		$	6,183
Finance revenues	—			135			(48		)	87
Sales and revenues, net	6,183			135			(48		)	6,270
Costs of products sold	5,550			—			—			5,550
Restructuring charges	19			—			—			19
Impairment of intangible assets	10			—			—			10
Selling, general and administrative expenses	690			39			(2		)	727
Engineering and product development costs	267			—			—			267
Interest expense	79			47			(3		)	123
Other expense (income), net	69			(5		)	(43		)	21
Total costs and expenses	6,684			81			(48		)	6,717
Equity in loss of non-consolidated affiliates	(11		)	—			—			(11		)
Income (loss) before equity income from financial services operations and income taxes	(512		)	54			—			(458		)
Equity income from financial services operations	35			—			(35		)	—
Income (loss) from continuing operations before income taxes	(477		)	54			(35		)	(458		)
Income tax benefit (expense)	218			(19		)	—			199
Income (loss) from continuing operations	(259		)	35			(35		)	(259		)
Loss from discontinued operations, net of tax	(43		)	—			—			(43		)
Net income (loss)	(302		)	35			(35		)	(302		)
Less: Income attributable to non-controlling interests	23			—			—			23
Net income (loss) attributable to Navistar International Corporation	$	(325	)	$	35		$	(35	)	$	(325	)

E- 20

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, 2013
(in millions)	Manufacturing Operations			Financial Services Operations		Adjustments			Consolidated Statement of Operations
Assets
Cash and cash equivalents	$	465		$	40	$	—		$	505
Marketable securities	699			34		—			733
Restricted cash	32			85		—			117
Finance and other receivables, net	875			2,163		(71		)	2,967
Inventories	1,465			11		—			1,476
Goodwill	275			—		—			275
Property and equipment, net	1,582			194		—			1,776
Investments in and advances to financial services operations	664			—		(664		)	—
Investments in non-consolidated affiliates	52			—		—			52
Deferred taxes, net	224			32		—			256
Other assets	536			30		—			566
Total assets	$	6,869		$	2,589	$	(735	)	$	8,723
Liabilities and stockholders' equity (deficit)
Accounts payable	$	1,644		$	48	$	(71	)	$	1,621
Debt	3,050			1,731		—			4,781
Postretirement benefits liabilities	3,374			50		—			3,424
Other liabilities	2,439			96		—			2,535
Total liabilities	10,507			1,925		(71		)	12,361
Redeemable equity securities	4			—		—			4
Stockholders' equity attributable to non-controlling interest	35			—		—			35
Stockholders' equity (deficit) attributable to controlling interest	(3,677		)	664		(664		)	(3,677		)
Total liabilities and stockholders' equity (deficit)	$	6,869		$	2,589	$	(735	)	$	8,723

E- 21

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, 2012
(in millions)	Manufacturing Operations			Financial Services Operations		Adjustments			Consolidated Statement of Operations
Assets
Cash and cash equivalents	$	1,059		$	28	$	—		$	1,087
Marketable securities	446			20		—			466
Restricted cash	31			130		—			161
Finance and other receivables, net	843			2,247		(98		)	2,992
Inventories	1,528			9		—			1,537
Goodwill	280			—		—			280
Property and equipment, net	1,497			163		—			1,660
Investments in and advances to financial services operations	628			—		(628		)	—
Investments in non-consolidated affiliates	62			—		—			62
Deferred taxes, net	231			32		—			263
Other assets	562			32		—			594
Total assets	$	7,167		$	2,661	$	(726	)	$	9,102
Liabilities and stockholders' equity (deficit)
Accounts payable	$	1,752		$	32	$	(98	)	$	1,686
Debt	2,905			1,866		—			4,771
Postretirement benefits liabilities	3,459			52		—			3,511
Other liabilities	2,311			83		—			2,394
Total liabilities	10,427			2,033		(98		)	12,362
Redeemable equity securities	5			—		—			5
Stockholders' equity attributable to non-controlling interest	45			—		—			45
Stockholders' equity (deficit) attributable to controlling interest	(3,310		)	628		(628		)	(3,310		)
Total liabilities and stockholders' equity (deficit)	$	7,167		$	2,661	$	(726	)	$	9,102

E- 22

Condensed Statements of Cash Activity Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis)
	Six Months Ended April 30, 2013
(in millions)	Manufacturing Operations			Financial Services Operations			Adjustments			Consolidated Statement of Operations
Cash flows from operating activities
Net income (loss)	$	(473	)	$	26		$	(26	)	$	(473	)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
Depreciation and amortization	163			1			—			164
Depreciation of equipment leased to others	60			18			—			78
Amortization of debt issuance costs and discount	25			6			—			31
Deferred income taxes	20			—			—			20
Impairment of property and equipment and intangible assets	8			—			—			8
Gain on sales of investments and businesses, net	(13		)	—			—			(13		)
Equity in loss of non-consolidated affiliates	(2		)	—			—			(2		)
Equity in income of financial services affiliates	(26		)	—			26			—
Dividends from non-consolidated affiliates	10			—			—			10
Change in intercompany receivables and payables	(27		)	27			—			—
Other, net	18			116			—			134
Net cash provided by (used in) operating activities	(237		)	194			—			(43		)
Cash flows from investing activities
Purchases of marketable securities	(746		)	(13		)	—			(759		)
Sales or maturities of marketable securities	492			—			—			492
Net change in restricted cash and cash equivalents	(1		)	45			—			44
Capital expenditures	(106		)	(1		)	—			(107		)
Purchase of equipment leased to others	(242		)	(53		)	—			(295		)
Other investing activities	47			2			—			49
Net cash used in investing activities	(556		)	(20		)	—			(576		)
Net cash provided by (used in) financing activities	205			(163		)	—			42
Effect of exchange rate changes on cash and cash equivalents	(6		)	1			—			(5		)
Increase (decrease) in cash and cash equivalents	(594		)	12			—			(582		)
Cash and cash equivalents at beginning of the period	1,059			28			—			1,087
Cash and cash equivalents at end of the period	$	465		$	40		$	—		$	505

E- 23

Condensed Statements of Cash Activity Navistar International Corporation (Manufacturing operations with financial services operations on an after-tax equity basis)
	Six Months Ended April 30, 2012
(in millions)	Manufacturing Operations			Financial Services Operations			Adjustments			Consolidated Statement of Operations
Cash flows from operating activities
Net income (loss)	$	(302	)	$	35		$	(35	)	$	(302	)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
Depreciation and amortization	135			1			—			136
Depreciation of equipment leased to others	9			15			—			24
Amortization of debt issuance costs and discount	14			5			—			19
Deferred income taxes	(203		)	—			—			(203		)
Impairment of property and equipment and intangible assets	38			—			—			38
Equity in loss of non-consolidated affiliates	11			—			—			11
Equity in income of financial services affiliates	(35		)	—			35			—
Dividends from non-consolidated affiliates	4			—			—			4
Change in intercompany receivables and payables	80			(80		)	—			—
Other, net	35			287			—			322
Net cash provided by (used in) operating activities	(214		)	263			—			49
Cash flows from investing activities
Purchases of marketable securities	(563		)	—			—			(563		)
Sales or maturities of marketable securities	944			—			—			944
Net change in restricted cash and cash equivalents	8			174			—			182
Capital expenditures	(174		)	(2		)	—			(176		)
Purchase of equipment leased to others	1			(29		)	—			(28		)
Acquisition of intangibles	(14		)	—			—			(14		)
Business acquisitions	(10		)	—			—			(10		)
Other investing activities	(11		)	1			—			(10		)
Net cash provided by investing activities	181			144			—			325
Net cash used in financing activities	(87		)	(423		)	—			(510		)
Effect of exchange rate changes on cash and cash equivalents	(4		)	1			—			(3		)
Decrease in cash and cash equivalents	(124		)	(15		)	—			(139		)
Cash and cash equivalents at beginning of the period	488			51			—			539
Cash and cash equivalents at end of the period	$	364		$	36		$	—		$	400

E- 24

XML

Condensed Consolidating Guarantor and Non-Guarantor - Statement of Cash Flows (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012
Net Cash Provided by (Used in) Operating Activities	$ (43)	$ 49
Net change in restricted cash and cash equivalents	44	182
Net purchases of marketable securities	(267)	381
Capital expenditures and purchase of equipment leased to others	(402)	(204)
Other investing activities	49	(34)
Net Cash Provided by (Used in) Investing Activities	(576)	325
Net borrowings (repayments) of debt	(222)	(400)
Other Financing Activities	264	(110)
Net Cash Provided by (Used in) Financing Activities	42	(510)
Effect of Exchange Rate on Cash and Cash Equivalents	(5)	(3)
Cash and Cash Equivalents, Period Increase (Decrease)	(582)	(139)
Cash and cash equivalents at beginning of the period	1,087	539
Cash and cash equivalents at end of the period	505	400
Parent Company [Domain]
Net Cash Provided by (Used in) Operating Activities	(648)	(463)
Net change in restricted cash and cash equivalents	(1)	6
Net purchases of marketable securities	(186)	374
Capital expenditures and purchase of equipment leased to others	0	0
Other investing activities	0	0
Net Cash Provided by (Used in) Investing Activities	(187)	380
Net borrowings (repayments) of debt	327	(50)
Other Financing Activities	24	19
Net Cash Provided by (Used in) Financing Activities	351	(31)
Effect of Exchange Rate on Cash and Cash Equivalents	0	0
Cash and Cash Equivalents, Period Increase (Decrease)	(484)	(114)
Cash and cash equivalents at beginning of the period	702	226
Cash and cash equivalents at end of the period	218	112
Guarantor Subsidiaries [Domain]
Net Cash Provided by (Used in) Operating Activities	(288)	(267)
Net change in restricted cash and cash equivalents	0	2
Net purchases of marketable securities	0	0
Capital expenditures and purchase of equipment leased to others	(304)	(115)
Other investing activities	9	(104)
Net Cash Provided by (Used in) Investing Activities	(295)	(217)
Net borrowings (repayments) of debt	301	519
Other Financing Activities	263	0
Net Cash Provided by (Used in) Financing Activities	564	519
Effect of Exchange Rate on Cash and Cash Equivalents	0	0
Cash and Cash Equivalents, Period Increase (Decrease)	(19)	35
Cash and cash equivalents at beginning of the period	55	13
Cash and cash equivalents at end of the period	36	48
Non-Guarantor Subsidiaries [Domain]
Net Cash Provided by (Used in) Operating Activities	222	248
Net change in restricted cash and cash equivalents	45	174
Net purchases of marketable securities	(81)	7
Capital expenditures and purchase of equipment leased to others	(98)	(89)
Other investing activities	40	70
Net Cash Provided by (Used in) Investing Activities	(94)	162
Net borrowings (repayments) of debt	(179)	(429)
Other Financing Activities	(23)	(38)
Net Cash Provided by (Used in) Financing Activities	(202)	(467)
Effect of Exchange Rate on Cash and Cash Equivalents	(5)	(3)
Cash and Cash Equivalents, Period Increase (Decrease)	(79)	(60)
Cash and cash equivalents at beginning of the period	330	300
Cash and cash equivalents at end of the period	251	240
Consolidation, Eliminations [Domain]
Net Cash Provided by (Used in) Operating Activities	671	531
Net change in restricted cash and cash equivalents	0	0
Net purchases of marketable securities	0	0
Capital expenditures and purchase of equipment leased to others	0	0
Other investing activities	0	0
Net Cash Provided by (Used in) Investing Activities	0	0
Net borrowings (repayments) of debt	(671)	(440)
Other Financing Activities	0	(91)
Net Cash Provided by (Used in) Financing Activities	(671)	(531)
Effect of Exchange Rate on Cash and Cash Equivalents	0	0
Cash and Cash Equivalents, Period Increase (Decrease)	0	0
Cash and cash equivalents at beginning of the period	0	0
Cash and cash equivalents at end of the period	$ 0	$ 0

XML

Income Taxes

6 Months Ended

Apr. 30, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

We compute on a quarterly basis an estimated annual effective tax rate considering ordinary income and related income tax expense. U.S. results in 2013, as well as certain foreign results in both 2013 and 2012, are excluded from ordinary income due to ordinary losses for which no benefit can be recognized. Ordinary income refers to income (loss) before income tax expense excluding significant unusual or infrequently occurring items. The tax effect of a significant unusual or infrequently occurring item is recorded in the interim period in which it occurs. Items included in income tax expense in the periods in which they occur include the tax effects of material restructurings and impairments, cumulative effect of changes in tax laws or rates, foreign exchange gains and losses, adjustments to uncertain tax positions, and adjustments to our valuation allowance due to changes in judgment regarding the ability to realize deferred tax assets in future years.

We evaluated the need to maintain or establish a valuation allowance for deferred tax assets based on our assessment of whether it is more likely than not that deferred tax benefits will be realized through the generation of future taxable income. Appropriate consideration is given to all available evidence, both positive and negative, in assessing the need for a valuation allowance. We continue to maintain a valuation allowance on our U.S. deferred tax assets, as well as certain foreign deferred tax assets, that we believe, on a more-likely-than-not basis, will not be realized. For all remaining deferred tax assets, while we believe that it is more likely than not that they will be realized, we believe that it is reasonably possible that additional deferred tax asset valuation allowances could be required in the next twelve months.

In 2012, our evaluation resulted in the determination that a significant portion of our valuation allowance on our Canadian deferred tax assets could be released. The qualitative and quantitative analysis of current and expected earnings, industry volumes, tax planning strategies, and general business risks resulted in a more likely than not conclusion of being able to realize a significant portion of our Canadian deferred tax assets. We have realized the benefits of the shift in our Canadian business model from a truck manufacturer to a truck distributor, combined with our existing Parts business. As a result of our analysis, we recognized an income tax benefit of $181 million from the release of valuation allowances in the second quarter of 2012.

We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of April 30, 2013, the amount of liability for uncertain tax positions was $84 million. If the unrecognized tax benefits are recognized, $78 million would impact our effective tax rate. However, to the extent we continue to maintain a full valuation allowance against certain deferred tax assets, the effect may be in the form of an increase in the deferred tax asset related to our net operating loss carry forward, which would be offset by a full valuation allowance.

We recognize interest and penalties related to uncertain tax positions as part of Income tax benefit (expense). For the three and six months ended April 30, 2013, the total interest and penalties related to our uncertain tax positions were $2 million and $6 million respectively, reflecting the ongoing resolution of audits in various jurisdictions.

We have open tax years back to 2001 with various significant taxing jurisdictions including the U.S., Canada, Mexico, and Brazil. In connection with the examination of tax returns, contingencies may arise that generally result from differing interpretations of applicable tax laws and regulations as they relate to the amount, timing, or inclusion of revenues or expenses in taxable income, or the sustainability of tax credits to reduce income taxes payable. We believe we have sufficient accruals for our contingent tax liabilities. Interim tax provisions include amounts considered sufficient to pay assessments that may result from examinations of prior year tax returns, although actual results may differ. While it is probable that the liability for unrecognized tax benefits may increase or decrease during the next twelve months, we do not expect any such change would have a material effect on our financial condition, results of operations, or cash flows.

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Debt - Financial Services Operations (Details) (USD $) In Millions, unless otherwise specified	Apr. 30, 2013	Oct. 31, 2012
Debt Instrument [Line Items]
Debt, Current	$ 779	$ 1,205
Long-term Debt and Capital Lease Obligations	4,002	3,566
Financial Services Operations [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Long-term Debt	805	994
Financial Services Operations [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Long-term Debt	861	763
Financial Services Operations [Member] | Commercial Paper [Member]
Debt Instrument [Line Items]
Long-term Debt	0	31
Financial Services Operations [Member] | Borrowings Secured By Operating and Finance Leases [Member]
Debt Instrument [Line Items]
Long-term Debt	65	78
Financial Services Operations [Member] | Debt [Member]
Debt Instrument [Line Items]
Long-term Debt	1,731	1,866
Debt, Current	657	1,033
Long-term Debt and Capital Lease Obligations	$ 1,074	$ 833

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Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax Portion Attributable to Parent	$ (1)	$ 12	$ (1)	$ 24

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Discontinued Operations

6 Months Ended

Apr. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations and Other Divestitures

Discontinued Operations and Other Divestitures

The Company is currently evaluating its portfolio of assets to validate their strategic and financial fit. To allow us to increase our focus on our North American core business, we are evaluating product lines, businesses, and engineering programs that fall outside of our core business. We are using Return on Invested Capital ("ROIC") methodology, combined with an assessment of the strategic fit to our core business, to identify areas that are under-performing. For those areas under-performing, we are evaluating whether to fix, divest, or close, and expect to realize incremental benefits from these actions in the near future.

Discontinued Operations

In the first quarter of 2013, the Company completed the idling of the Workhorse Custom Chassis ("WCC") operations, and in the second quarter of 2013, we completed the divestiture of the WCC business for an immaterial amount. For the three and six months ended April 30, 2013 and 2012, the operating results of the WCC operations, which were previously included as part of the Truck segment, are reported as discontinued operations in the Consolidated Statements of Operations for all periods presented.

In the first quarter of 2013, certain operations of the Monaco recreational vehicle ("RV") business ("Monaco") were determined to be held-for-sale. For the three and six months ended April 30, 2013 and 2012, the operating results of these certain operations of Monaco, which were previously included as part of the Truck segment, are reported as discontinued operations in the Consolidated Statements of Operations for all periods presented. In May 2013, we divested substantially all of our interest in these operations of Monaco. The cash consideration from the divestiture was approximately $19 million. As a result of the divestiture, in the second quarter of 2013, we recorded charges of $25 million relating to the impairment of certain assets and the expected loss from the divestiture. The charges were included in the Loss from discontinued operations, net of tax.

WCC and Monaco were not material to the Company's Consolidated Balance Sheets or Condensed Consolidated Statements of Cash Flows and have not been reclassified in the respective financial statements.

The following table summarizes the discontinued operations activity in the Company's Consolidated Statements of Operations:

	Three Months Ended April 30,						Six Months Ended April 30,
(in millions)	2013			2012			2013			2012
Sales and revenues, net	$	36		$	37		$	70		$	80
Loss before income taxes	$	(21	)	$	(44	)	$	(30	)	$	(58	)
Income tax benefit	—			10			—			15
Loss from discontinued operations, net of tax	$	(21	)	$	(34	)	$	(30	)	$	(43	)

We generally use a centralized approach to cash management, financing of our manufacturing operations, and general corporate related functions, and, accordingly, do not allocate debt, interest expense, or corporate overhead to our discontinued businesses. Any debt and related interest expense of a specific entity within a business is recorded by the respective entity.

Other Divestitures

In 2006 and 2008, we formed two joint ventures with Mahindra & Mahindra Ltd. ("Mahindra") in India, which operated under the names of Mahindra Navistar Automotive Ltd. ("MNAL") and Mahindra-Navistar Engines Private Ltd. ("MNEPL") (collectively, the "Mahindra Joint Ventures"). In the second quarter of 2013, the Company sold its stake in the Mahindra Joint Ventures to Mahindra for $33 million and recognized a gain of $28 million. As part of the transaction, the Company entered into licensing and service agreements with Mahindra.

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Condensed Consolidating Guarantor and Non-Guarantor

6 Months Ended

Apr. 30, 2013

Condensed Consolidating Guarantor and Non Guarantor Financial Statements [Abstract]

Condensed Consolidating Guarantor And Non Guarantor Financial Information [Text Block]

Condensed Consolidating Guarantor and Non-guarantor Financial Information

The following tables set forth condensed consolidating balance sheets as of April 30, 2013 and October 31, 2012, and condensed consolidating statements of operations, condensed consolidating statements of comprehensive income (loss), and condensed consolidating statements of cash flows, all for the three months ended April 30, 2013 and 2012. Beginning in the first quarter of 2013, the Company began reporting the operating results of WCC and certain operating results of Monaco as discontinued operations. For more information, see Note 2, Discontinued Operations and Other Divestitures. The 2012 condensed consolidating statements of operations have been restated to reflect this change.

The information is presented as a result of Navistar, Inc.’s guarantee, exclusive of its subsidiaries, of NIC’s indebtedness under our Senior Notes and obligations under our Loan Agreement related to the Tax Exempt Bonds. Navistar, Inc. is a direct wholly-owned subsidiary of NIC. None of NIC’s other subsidiaries guarantee any of these notes or bonds. The guarantees are "full and unconditional", as those terms are used in Regulation S-X Rule 3-10, except that the guarantees will be automatically released in certain customary circumstances, such as when the subsidiary is sold or all of the assets of the subsidiary are sold, the capital stock is sold, when the subsidiary is designated as an "unrestricted subsidiary" for purposes of the indenture, upon liquidation or dissolution of the subsidiary or upon legal or covenant defeasance, or satisfaction and discharge of the notes. Separate financial statements and other disclosures concerning Navistar, Inc. have not been presented because management believes that such information is not material to investors. Within this disclosure only, "NIC" includes the financial results of the parent company only, with all of its wholly-owned subsidiaries accounted for under the equity method. Likewise, "Navistar, Inc.," for purposes of this disclosure only, includes the consolidated financial results of its wholly-owned subsidiaries accounted for under the equity method and its operating units accounted for on a consolidated basis. "Non-Guarantor Subsidiaries" includes the combined financial results of all other non-guarantor subsidiaries. "Eliminations and Other" includes all eliminations and reclassifications to reconcile to the consolidated financial statements. NIC files a consolidated U.S. federal income tax return that includes Navistar, Inc. and its U.S. subsidiaries. Navistar, Inc. has a tax allocation agreement ("Tax Agreement") with NIC which requires Navistar, Inc. to compute its separate federal income tax liability and remit any resulting tax liability to NIC. Tax benefits that may arise from net operating losses of Navistar, Inc. are not refunded to Navistar, Inc. but may be used to offset future required tax payments under the Tax Agreement. The effect of the Tax Agreement is to allow NIC, the parent company, rather than Navistar, Inc., to utilize current U.S. taxable losses of Navistar, Inc. and all other direct or indirect subsidiaries of NIC.

Condensed Consolidating Statement of Operations
For the Three Months Ended April 30, 2013							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Sales and revenues, net	$	—		$	1,493		$	2,293		$	(1,260	)	$	2,526
Costs of products sold	—			1,622			1,987			(1,246		)	2,363
Restructuring charges	—			4			2			—			6
All other operating expenses (income)	(48		)	349			125			57			483
Total costs and expenses	(48		)	1,975			2,114			(1,189		)	2,852
Equity in income (loss) of affiliates	(422		)	50			1			375			4
Income (loss) before income taxes	(374		)	(432		)	180			304			(322		)
Income tax expense	—			(1		)	(21		)	—			(22		)
Earnings (loss) from continuing operations	(374		)	(433		)	159			304			(344		)
Loss from discontinued operations, net of tax	—			—			(21		)	—			(21		)
Net income (loss)	(374		)	(433		)	138			304			(365		)
Less: Net income attributable to non-controlling interests	—			—			9			—			9
Net income (loss) attributable to Navistar International Corporation	$	(374	)	$	(433	)	$	129		$	304		$	(374	)

Condensed Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended April 30, 2013							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.					Eliminations and Other			Consolidated
Net income (loss) attributable to Navistar International Corporation	$	(374	)	$	(433	)	$	129	$	304		$	(374	)
Other comprehensive income (loss):
Foreign currency translation adjustment	3			—			2		(2		)	3
Defined benefit plans (net of tax of $1, $-, $1, $(1), and $1 respectively)	40			35			5		(40		)	40
Total other comprehensive income (loss)	43			35			7		(42		)	43
Total comprehensive income (loss) attributable to Navistar International Corporation	$	(331	)	$	(398	)	$	136	$	262		$	(331	)

Condensed Consolidating Statement of Operations
For the Six Months Ended April 30, 2013							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Sales and revenues, net	$	—		$	3,102		$	4,551		$	(2,490	)	$	5,163
Costs of products sold	—			3,217			3,896			(2,464		)	4,649
Restructuring charges	—			4			4			—			8
All other operating expenses (income)	(27		)	580			317			45			915
Total costs and expenses	(27		)	3,801			4,217			(2,419		)	5,572
Equity in income (loss) of affiliates	(524		)	104			(1		)	424			3
Income (loss) before income taxes	(497		)	(595		)	333			353			(406		)
Income tax expense	—			(12		)	(25		)	—			(37		)
Earnings (loss) from continuing operations	(497		)	(607		)	308			353			(443		)
Loss from discontinued operations, net of tax	—			—			(30		)	—			(30		)
Net income (loss)	(497		)	(607		)	278			353			(473		)
Less: Net income attributable to non-controlling interests	—			—			24			—			24
Net income (loss) attributable to Navistar International Corporation	$	(497	)	$	(607	)	$	254		$	353		$	(497	)

Condensed Consolidating Statement of Comprehensive Income (Loss)
For the Six Months Ended April 30, 2013							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.					Eliminations and Other			Consolidated
Net income (loss) attributable to Navistar International Corporation	$	(497	)	$	(607	)	$	254	$	353		$	(497	)
Other comprehensive income (loss):
Foreign currency translation adjustment	20			—			20		(20		)	20
Defined benefit plans (net of tax of $1, $-, $1, $(1), and $1 respectively)	78			70			8		(78		)	78
Total other comprehensive income (loss)	98			70			28		(98		)	98
Total comprehensive income (loss) attributable to Navistar International Corporation	$	(399	)	$	(537	)	$	282	$	255		$	(399	)

Condensed Consolidating Balance Sheet
As of April 30, 2013							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Assets
Cash and cash equivalents	$	218		$	36		$	251		$	—		$	505
Marketable securities	501			—			232			—			733
Restricted cash	25			7			85			—			117
Finance and other receivables, net	8			165			2,806			(12		)	2,967
Inventories	—			725			784			(33		)	1,476
Investments in non-consolidated affiliates	(5,971		)	6,556			43			(576		)	52
Property and equipment, net	—			930			849			(3		)	1,776
Goodwill	—			66			209			—			275
Deferred taxes, net	9			10			237			—			256
Other	51			180			337			(2		)	566
Total assets	$	(5,159	)	$	8,675		$	5,833		$	(626	)	$	8,723
Liabilities and stockholders’ equity (deficit)
Debt	$	1,934		$	1,012		$	1,843		$	(8	)	$	4,781
Postretirement benefits liabilities	—			3,073			351			—			3,424
Amounts due to (from) affiliates	(6,511		)	10,396			(3,958		)	73			—
Other liabilities	3,090			516			624			(74		)	4,156
Total liabilities	(1,487		)	14,997			(1,140		)	(9		)	12,361
Redeemable equity securities	4			—			—			—			4
Stockholders’ equity attributable to non-controlling interests	—			—			35			—			35
Stockholders’ equity (deficit) attributable to Navistar International Corporation	(3,676		)	(6,322		)	6,938			(617		)	(3,677		)
Total liabilities and stockholders’ equity (deficit)	$	(5,159	)	$	8,675		$	5,833		$	(626	)	$	8,723

Condensed Consolidating Statement of Cash Flows
For the Six Months Ended April 30, 2013							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Net cash provided by (used in) operations	$	(648	)	$	(288	)	$	222		$	671		$	(43	)
Cash flows from investment activities
Net change in restricted cash and cash equivalents	(1		)	—			45			—			44
Net purchases of marketable securities	(186		)	—			(81		)	—			(267		)
Capital expenditures and purchase of equipment leased to others	—			(304		)	(98		)	—			(402		)
Other investing activities	—			9			40			—			49
Net cash used in investment activities	(187		)	(295		)	(94		)	—			(576		)
Cash flows from financing activities
Net borrowings (repayments) of debt	327			301			(179		)	(671		)	(222		)
Other financing activities	24			263			(23		)	—			264
Net cash provided by (used in) financing activities	351			564			(202		)	(671		)	42
Effect of exchange rate changes on cash and cash equivalents	—			—			(5		)	—			(5		)
Decrease in cash and cash equivalents	(484		)	(19		)	(79		)	—			(582		)
Cash and cash equivalents at beginning of the period	702			55			330			—			1,087
Cash and cash equivalents at end of the period	$	218		$	36		$	251		$	—		$	505

Condensed Consolidating Statement of Operations
For the Three Months Ended April 30, 2012							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Sales and revenues, net	$	—		$	2,172		$	2,974		$	(1,885	)	$	3,261
Costs of products sold	—			2,205			2,555			(1,860		)	2,900
Restructuring charges	—			19			—			—			19
Impairment of intangible assets	—			—			10			—			10
All other operating expenses (income)	14			357			233			(25		)	579
Total costs and expenses	14			2,581			2,798			(1,885		)	3,508
Equity in income (loss) of affiliates	(96		)	271			(6		)	(173		)	(4		)
Income (loss) before income taxes	(110		)	(138		)	170			(173		)	(251		)
Income tax benefit (expense)	(62		)	(63		)	211			37			123
Earnings (loss) from continuing operations	(172		)	(201		)	381			(136		)	(128		)
Loss from discontinued operations, net of tax	—			—			(34		)	—			(34		)
Net income (loss)	(172		)	(201		)	347			(136		)	(162		)
Less: Net income attributable to non-controlling interests	—			—			10			—			10
Net income (loss) attributable to Navistar International Corporation	$	(172	)	$	(201	)	$	337		$	(136	)	$	(172	)

Condensed Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended April 30, 2012							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Net income (loss) attributable to Navistar International Corporation	$	(172	)	$	(201	)	$	337		$	(136	)	$	(172	)
Other comprehensive income (loss):
Foreign currency translation adjustment	(65		)	—			(65		)	65			(65		)
Defined benefit plans (net of tax of $(12), $(12), $-, $12, and $(12) respectively)	17			16			2			(18		)	17
Total other comprehensive income (loss)	(48		)	16			(63		)	47			(48		)
Total comprehensive income (loss) attributable to Navistar International Corporation	$	(220	)	$	(185	)	$	274		$	(89	)	$	(220	)

Condensed Consolidating Statement of Operations
For the Six Months Ended April 30, 2012							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Sales and revenues, net	$	—		$	4,134		$	5,755		$	(3,619	)	$	6,270
Costs of products sold	—			4,200			4,931			(3,581		)	5,550
Restructuring charges	—			19			—			—			19
Impairment of property and equipment and intangible assets	—			—			10			—			10
All other operating expenses (income)	39			691			459			(51		)	1,138
Total costs and expenses	39			4,910			5,400			(3,632		)	6,717
Equity in income (loss) of affiliates	(296		)	366			(13		)	(68		)	(11		)
Income (loss) before income taxes	(335		)	(410		)	342			(55		)	(458		)
Income tax benefit	10			14			172			3			199
Earnings (loss) from continuing operations	(325		)	(396		)	514			(52		)	(259		)
Loss from discontinued operations, net of tax	—			—			(43		)	—			(43		)
Net income (loss)	(325		)	(396		)	471			(52		)	(302		)
Less: Net income attributable to non-controlling interests	—			—			23			—			23
Net income (loss) attributable to Navistar International Corporation	$	(325	)	$	(396	)	$	448		$	(52	)	$	(325	)

Condensed Consolidating Statement of Comprehensive Income (Loss)
For the Six Months Ended April 30, 2012							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Net income (loss) attributable to Navistar International Corporation	$	(325	)	$	(396	)	$	448		$	(52	)	$	(325	)
Other comprehensive income (loss):
Foreign currency translation adjustment	(78		)	—			(78		)	78			(78		)
Defined benefit plans (net of tax of $(24), $(23), $(1), $24, and $(24) respectively)	40			36			5			(41		)	40
Total other comprehensive income (loss)	(38		)	36			(73		)	37			(38		)
Total comprehensive income (loss) attributable to Navistar International Corporation	$	(363	)	$	(360	)	$	375		$	(15	)	$	(363	)

Condensed Consolidating Balance Sheet
As of October 31, 2012							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Assets
Cash and cash equivalents	$	702		$	55		$	330		$	—		$	1,087
Marketable securities	314			—			152			—			466
Restricted cash	24			8			129			—			161
Finance and other receivables, net	5			128			2,859			—			2,992
Inventories	—			691			885			(39		)	1,537
Investments in non-consolidated affiliates	(5,616		)	6,454			54			(830		)	62
Property and equipment, net	—			790			874			(4		)	1,660
Goodwill	—			—			280			—			280
Deferred taxes, net	9			11			243			—			263
Other	83			177			335			(1		)	594
Total assets	$	(4,479	)	$	8,314		$	6,141		$	(874	)	$	9,102
Liabilities and stockholders’ equity (deficit)
Debt	$	1,617		$	1,162		$	1,997		$	(5	)	$	4,771
Postretirement benefits liabilities	—			3,144			367			—			3,511
Amounts due to (from) affiliates	(5,863		)	9,522			(3,743		)	84			—
Other liabilities	3,072			337			748			(77		)	4,080
Total liabilities	(1,174		)	14,165			(631		)	2			12,362
Redeemable equity securities	5			—			—			—			5
Stockholders’ equity attributable to non-controlling interest	—			—			45			—			45
Stockholders’ equity (deficit) attributable to Navistar International Corporation	(3,310		)	(5,851		)	6,727			(876		)	(3,310		)
Total liabilities and stockholders’ equity (deficit)	$	(4,479	)	$	8,314		$	6,141		$	(874	)	$	9,102

Condensed Consolidating Statement of Cash Flows
For the Six Months Ended April 30, 2012							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Net cash provided by (used in) operations	$	(463	)	$	(267	)	$	248		$	531		$	49
Cash flows from investment activities
Net change in restricted cash and cash equivalents	6			2			174			—			182
Net purchases in marketable securities	374			—			7			—			381
Capital expenditures and purchase of equipment leased to others	—			(115		)	(89		)	—			(204		)
Other investing activities	—			(104		)	70			—			(34		)
Net cash provided by (used in) investment activities	380			(217		)	162			—			325
Cash flows from financing activities
Net borrowings (repayments) of debt	(50		)	519			(429		)	(440		)	(400		)
Other financing activities	19			—			(38		)	(91		)	(110		)
Net cash provided by (used in) financing activities	(31		)	519			(467		)	(531		)	(510		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(3		)	—			(3		)
Increase (decrease) in cash and cash equivalents	(114		)	35			(60		)	—			(139		)
Cash and cash equivalents at beginning of the period	226			13			300			—			539
Cash and cash equivalents at end of the period	$	112		$	48		$	240		$	—		$	400

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Commitments and Contingencies - Commitments and Contingencies (Details)	3 Months Ended		6 Months Ended		12 Months Ended	3 Months Ended	6 Months Ended				0 Months Ended	1 Months Ended		12 Months Ended				6 Months Ended	3 Months Ended	6 Months Ended		6 Months Ended		1 Months Ended		6 Months Ended
	Jan. 31, 2013 USD ($)	Apr. 30, 2010	Apr. 30, 2013 USD ($) site	Apr. 30, 2012 USD ($)	Oct. 31, 2012	Apr. 30, 2013 Non-conformance Penalties [Member] USD ($)	Apr. 30, 2013 Non-conformance Penalties [Member] USD ($)	Apr. 30, 2012 Non-conformance Penalties [Member] USD ($)	Apr. 30, 2013 Pending Litigation [Member] FATMA Notice, Trial [Member] Penalties [Member] USD ($)	Apr. 30, 2013 Pending Litigation [Member] FATMA Notice, Trial [Member] Penalties [Member] BRL	Oct. 25, 2011 Pending Litigation [Member] Lis Franco vs. Syntex and MWM, Trial [Member] BRL	Apr. 30, 2013 Pending Litigation [Member] Lis Franco vs. Syntex and MWM, Trial [Member] USD ($)	Dec. 31, 2012 Pending Litigation [Member] Lis Franco vs. Syntex and MWM, Trial [Member] BRL	Dec. 31, 1999 Pending Litigation [Member] Lis Franco vs. Syntex and MWM, Trial [Member] Royalties [Member] BRL	May 30, 2010 Pending Litigation [Member] Lis Franco vs. Syntex and MWM, Trial [Member] Royalties [Member] BRL	Dec. 31, 2009 Pending Litigation [Member] Lis Franco vs. Syntex and MWM, Trial [Member] Royalties [Member] BRL	Apr. 30, 2013 Damages from Product Defects [Member] engine	Apr. 30, 2013 Damages from Product Defects [Member] Kruse Technology vs. Ford Motor Company [Member] patents	Apr. 30, 2013 California Air Resources Board (CARB) [Member] USD ($)	Apr. 30, 2013 G E Operating Agreement [Member] USD ($)	Oct. 31, 2012 G E Operating Agreement [Member] USD ($)	Apr. 30, 2013 Minimum [Member]	Apr. 30, 2013 Maximum [Member]	May 31, 2013 Subsequent Event [Member] Pending Litigation [Member] Lis Franco vs. Syntex and MWM, Trial [Member] BRL	Apr. 30, 2013 Subsequent Event [Member] Pending Litigation [Member] Lis Franco vs. Syntex and MWM, Trial [Member] USD ($)	Apr. 30, 2013 G E Operating Agreement [Member] USD ($)	Apr. 30, 2013 Manufacturing Operations [Member] Financed lease obligations [Member] USD ($)	Oct. 31, 2012 Manufacturing Operations [Member] Financed lease obligations [Member] USD ($)	Apr. 30, 2013 Manufacturing Operations [Member] G E Operating Agreement [Member] Financed lease obligations [Member] USD ($)	Oct. 31, 2012 Manufacturing Operations [Member] G E Operating Agreement [Member] Financed lease obligations [Member] USD ($)
Loss Contingencies [Line Items]
Length of Agreement		3 years
Length Of Potential Automatic Extension Years		1 year
Operating Agreement Excess Loss Percentage																				10.00%
Off Balance Sheet Finance Receivables																				$ 1,300,000,000	$ 1,200,000,000
Off Balance Sheet Finance Receivables Related Originations																				1,800,000,000	1,600,000,000
Payments to Acquire Equipment on Lease			295,000,000	28,000,000																						(185,000,000)
Long-term Debt																											209,000,000	0	209,000,000	167,000,000
Historical losses on finance receivables, measured as percentage of average balance of related finance receivable																						0.30%	2.10%
Available stand-by letters of credit and surety bonds			62,000,000
Line of Credit Facility, Remaining Borrowing Capacity			35,000,000
Purchase commitments			35,000,000
Long Term Purchase Commitment Cancellation Fees			224,000,000
Number of Contaminated Sites			3
Number of Contaminated Sites in Sao Paulo, Brazil			2
Accrual for environmental loss contingencies			24,000,000
Damages sought, value									1,000,000	2,000,000	10,850,000	11,000,000	22,000,000	42,000,000										25,000,000	13,000,000
Potential patent infringement, number of patents																		3
Estimate of possible loss														16,000,000	74,000,000	70,000,000
Proceeds from Legal Settlements	35,000,000
Notice of Violation, number																	7,600
Regulatory Penalty						$ 12,000,000	$ 22,000,000	$ 10,000,000											$ 2,000,000
Maximum Non-Conformance Penalty per unit			4,287		3,775
Number of States			9
10 CARB States			10 CARB States

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Postretirement Benefits - Components of Net Periodic Benefit Expense (Income) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012
Pension Plans, Defined Benefit [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost for benefits earned during the period	$ 5	$ 4	$ 10	$ 8
Interest on obligation	36	43	72	86
Amortization of cumulative loss	32	27	64	55
Amortization of Prior Service Cost (benefit)	0	0	0	0
Contractual termination benefits	0	0	0	0
Premium on pension insurance	1	1	1	1
Expected Return on Plan Assets	(47)	(48)	(94)	(96)
Net postretirement benefit expense	27	27	53	54
Other Postretirement Benefit Plans, Defined Benefit [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost for benefits earned during the period	2	2	4	4
Interest on obligation	16	21	31	42
Amortization of cumulative loss	8	11	15	20
Amortization of Prior Service Cost (benefit)	(1)	(1)	(2)	(2)
Contractual termination benefits	0	0	0	(3)
Premium on pension insurance	0	0	0	0
Expected Return on Plan Assets	(9)	(9)	(17)	(18)
Net postretirement benefit expense	$ 16	$ 24	$ 31	$ 43

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Fair Value Measurements

6 Months Ended

Apr. 30, 2013

Fair Value Disclosures [Abstract]

Fair value measurements

Fair Value Measurements

For assets and liabilities measured at fair value on a recurring and nonrecurring basis, a three-level hierarchy of measurements based upon observable and unobservable inputs is used to arrive at fair value. Observable inputs are developed based on market data obtained from independent sources, while unobservable inputs reflect our assumptions about valuation based on the best information available in the circumstances. Depending on the inputs, we classify each fair value measurement as follows:

• Level 1—based upon quoted prices for identical instruments in active markets,

• Level 2—based upon quoted prices for similar instruments, prices for identical or similar instruments in markets that are not active, or model-derived valuations, all of whose significant inputs are observable, and

• Level 3—based upon one or more significant unobservable inputs.

The following section describes key inputs and assumptions in our valuation methodologies:

Cash Equivalents and Restricted Cash Equivalents—We classify highly liquid investments, with an original maturity of 90 days or less, including U.S. Treasury bills, federal agency securities, and commercial paper, as cash equivalents. The carrying amounts of cash and cash equivalents and restricted cash approximate fair value because of the short-term maturity and highly liquid nature of these instruments.

Marketable Securities—Our marketable securities portfolios are classified as available-for-sale and primarily include investments in U.S. government securities and commercial paper with a maturity of greater than 90 days from the date of purchase. We use quoted prices from active markets to determine fair value.

Derivative Assets and Liabilities—We measure the fair value of derivatives assuming that the unit of account is an individual derivative transaction and that each derivative could be sold or transferred on a stand-alone basis. We classify within Level 2 our derivatives that are traded over-the-counter and valued using internal models based on observable market inputs. In certain cases, market data is not available and we estimate inputs such as in situations where trading in a particular commodity is not active. Measurements based upon these unobservable inputs are classified within Level 3. For more information regarding derivatives, see Note 11, Financial Instruments and Commodity Contracts.

Guarantees—We provide certain guarantees of payments and residual values to specific counterparties. Fair value of these guarantees is based upon internally developed models that utilize current market-based assumptions and historical data. We classify these liabilities within Level 3. For more information regarding guarantees, see Note 12, Commitments and Contingencies.

The following table presents the financial instruments measured at fair value on a recurring basis:

	April 30, 2013								October 31, 2012
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Marketable securities:
U.S. Treasury bills	$	662	$	—	$	—	$	662	$	420	$	—	$	—	$	420
Other	71		—		—		71		46		—		—		46
Derivative financial instruments:
Foreign currency contracts	—		2		—		2		—		—		—		—
Total assets	$	733	$	2	$	—	$	735	$	466	$	—	$	—	$	466
Liabilities
Derivative financial instruments:
Commodity contracts	$	—	$	4	$	—	$	4	$	—	$	4	$	—	$	4
Foreign currency contracts	—		1		—		1		—		—		—		—
Guarantees	—		—		7		7		—		—		7		7
Total liabilities	$	—	$	5	$	7	$	12	$	—	$	4	$	7	$	11

The following tables present the changes for those financial instruments classified within Level 3 of the valuation hierarchy:

	Three Months Ended April 30,
	2013					2012
(in millions)	Guarantees			Commodity contracts		Guarantees			Commodity contracts
Balance at February 1	$	(7	)	$	—	$	(7	)	$	—
Total gains (losses) (realized/unrealized) included in earnings(A)	—			—		—			—
Transfers out of Level 3	—			—		—			—
Issuances	—			—		—			—
Settlements	—			—		—			—
Balance at April 30	$	(7	)	$	—	$	(7	)	$	—
Change in unrealized gains on assets and liabilities still held	$	—		$	—	$	—		$	—

	Six Months Ended April 30,
	2013					2012
(in millions)	Guarantees			Commodity contracts		Guarantees			Commodity contracts
Balance at November 1	$	(7	)	$	—	$	(6	)	$	(2	)
Total gains (losses) (realized/unrealized) included in earnings(A)	—			—		—			(1		)
Transfers out of Level 3	—			—		—			2
Issuances	—			—		(1		)	—
Settlements	—			—		—			1
Balance at April 30	$	(7	)	$	—	$	(7	)	$	—
Change in unrealized gains on assets and liabilities still held	$	—		$	—	$	—		$	—

_________________________

(A) For commodity contracts, losses are included in Cost of products sold.

The following table presents these financial instruments measured at fair value on a nonrecurring basis:

(in millions)	April 30, 2013		October 31, 2012
Level 2 financial instruments
Carrying value of impaired finance receivables (A)	$	12	$	14
Specific loss reserve	7		9
Fair value	$	5	$	5

_________________________

(A) Certain impaired finance receivables are measured at fair value on a nonrecurring basis. An impairment charge is recorded for the amount by which the carrying value of the receivables exceeds the fair value of the underlying collateral, net of remarketing costs. Fair values of the underlying collateral are determined by reference to dealer vehicle value publications adjusted for certain market factors.

In addition to the methods and assumptions we use for the financial instruments recorded at fair value as discussed above, we use the following methods and assumptions to estimate the fair value for our other financial instruments that are not marked to market on a recurring basis. The carrying amounts of Cash and cash equivalents, Restricted cash, and Accounts payable approximate fair values because of the short-term maturity and highly liquid nature of these instruments. Finance receivables generally consist of retail and wholesale accounts and retail and wholesale notes. The carrying amounts of Trade and other receivables and retail and wholesale accounts approximate fair values as a result of the short-term nature of the receivables. The carrying amounts of wholesale notes approximate fair values as a result of the short-term nature of the wholesale notes and their variable interest rate terms. The fair values of these financial instruments are classified as Level 1. Due to the nature of the aforementioned financial instruments, they have been excluded from the fair value amounts presented in the table below.

The fair values of our retail notes are estimated by discounting expected cash flows at estimated current market rates. The fair values of our retail notes are classified as Level 3 financial instruments.

The fair values of our debt instruments classified as Level 1 were determined using quoted market prices. Our Loan Agreement underlying the Tax Exempt Bonds is traded, but is illiquid, and as a result, is classified as Level 2. The fair values of our Level 3 debt instruments are generally determined using internally developed valuation techniques such as discounted cash flow modeling. Inputs such as discount rates and credit spreads reflect our estimates of assumptions that market participants would use in pricing the instrument and may be unobservable.

The following tables present the carrying values and estimated fair values of financial instruments:

	April 30, 2013
	Estimated Fair Value								Carrying Value
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Retail notes	$	—	$	—	$	478	$	478	$	478
Notes receivable	—		—		17		17		13
Liabilities
Debt:
Manufacturing operations
Senior Secured Term Loan Credit Facility, as Amended due 2017	—		—		687		687		693
8.25% Senior Notes, due 2021	1,322		—		—		1,322		1,177
3.0% Senior Subordinated Convertible Notes, due 2014(A)	585		—		—		585		532
Debt of majority-owned dealerships	—		—		43		43		43
Financing arrangements	—		—		54		54		83
Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040	—		245		—		245		225
Promissory Note	—		—		25		25		25
Financed lease obligations	—		—		209		209		209
Other	—		—		58		58		59
Financial Services operations
Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2019	—		—		807		807		805
Bank revolvers, at fixed and variable rates, due dates from 2013 through 2019	—		—		832		832		861
Borrowings secured by operating and finance leases, at various rates, due serially through 2017	—		—		65		65		65

	October 31, 2012
	Estimated Fair Value								Carrying Value
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Retail notes	$	—	$	—	$	613	$	613	$	618
Notes receivable	—		—		27		27		27
Liabilities
Debt:
Manufacturing operations
Senior Secured Term Loan Credit Facility, as Amended due 2017	—		—		1,047		1,047		991
8.25% Senior Notes, due 2021	899		—		—		899		872
3.0% Senior Subordinated Convertible Notes, due 2014(A)	514		—		—		514		520
Debt of majority-owned dealerships	—		—		60		60		60
Financing arrangements	—		—		102		102		136
Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040	—		234		—		234		225
Promissory Note	—		—		29		29		30
Other	—		—		67		67		67
Financial Services operations
Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2019	—		—		994		994		994
Bank revolvers, at fixed and variable rates, due dates from 2013 through 2019	—		—		734		734		763
Commercial paper, at variable rates, matured in 2013	31		—		—		31		31
Borrowings secured by operating and finance leases, at various rates, due serially through 2017	—		—		79		79		78

_________________________

(A) The carrying value represents the consolidated financial statement amount of the debt which excludes the allocation of the conversion feature to equity, while the fair value is based on quoted market prices for the convertible note which includes the equity feature.

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Allowance for Doubtful Accounts - Retail, Wholesale, Trade & Other (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended				6 Months Ended
	Apr. 30, 2013		Apr. 30, 2012		Apr. 30, 2013 segments		Apr. 30, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable By Class Number of Portfolio Segments					2
Allowance for doubtful accounts at beginning of period	$ 49		$ 47		$ 51		$ 50
Provision for doubtful accounts, net of recoveries	11		0		11		0
Charge-off of accounts	(3)	[1]	(2)	[1]	(6)	[1]	(5)	[1]
Financing Receivable, Allowance for Credit Losses, Other	1	[2]	0	[2]	2	[2]	0	[2]
Allowance for doubtful accounts at end of period	58		45		58		45
Loss on Contract Termination for Default	1		2		1		3
Retail Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for doubtful accounts at beginning of period	23		28		27		31
Provision for doubtful accounts, net of recoveries	1		0		(1)		(2)
Charge-off of accounts	(3)	[1]	(2)	[1]	(6)	[1]	(3)	[1]
Financing Receivable, Allowance for Credit Losses, Other	1	[2]	0	[2]	2	[2]	0	[2]
Allowance for doubtful accounts at end of period	22		26		22		26
Wholesale Portfolio [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for doubtful accounts at beginning of period	2		3		0		3
Provision for doubtful accounts, net of recoveries	0		(1)		2		(1)
Charge-off of accounts	0	[1]	0	[1]	0	[1]	0	[1]
Financing Receivable, Allowance for Credit Losses, Other	0	[2]	0	[2]	0	[2]	0	[2]
Allowance for doubtful accounts at end of period	2		2		2		2
Financing Receivable Number Of Classes Of Receivables In Each Portfolio					1
Trade and Other Receivables [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for doubtful accounts at beginning of period	24		16		24		16
Provision for doubtful accounts, net of recoveries	10		1		10		3
Charge-off of accounts	0	[1]	0	[1]	0	[1]	(2)	[1]
Financing Receivable, Allowance for Credit Losses, Other	0	[2]	0	[2]	0	[2]	0	[2]
Allowance for doubtful accounts at end of period	$ 34		$ 17		$ 34		$ 17

[1] We repossess sold and leased vehicles on defaulted finance receivables and leases, and place them into Inventories. Losses recognized at the time of repossession and charged against the allowance for doubtful accounts were less than $1 million for both the three and six months ended April 30, 2013 and $2 million and $3 million for the three and six months ended April 30, 2012, respectively.

[2] Amounts include currency translation.

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Postretirement Benefits - Defined Contribution Plans and Other Contractual Arrangements (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012	Oct. 31, 1993 Other Pension Plans, Postretirement or Supplemental Plans, Defined Benefit [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Contribution Plan, Cost Recognized	$ 8	$ 14	$ 15	$ 24
Contribution To The Trust Shares					25.5

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Condensed Consolidating Guarantor and Non-Guarantor (Tables)

6 Months Ended

Apr. 30, 2013

Condensed Consolidating Gurantor and Non-Gurantor Financial Information [Abstract]

Schedule of Condensed Income Statement [Table Text Block]

Condensed Consolidating Statement of Operations
For the Three Months Ended April 30, 2013							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Sales and revenues, net	$	—		$	1,493		$	2,293		$	(1,260	)	$	2,526
Costs of products sold	—			1,622			1,987			(1,246		)	2,363
Restructuring charges	—			4			2			—			6
All other operating expenses (income)	(48		)	349			125			57			483
Total costs and expenses	(48		)	1,975			2,114			(1,189		)	2,852
Equity in income (loss) of affiliates	(422		)	50			1			375			4
Income (loss) before income taxes	(374		)	(432		)	180			304			(322		)
Income tax expense	—			(1		)	(21		)	—			(22		)
Earnings (loss) from continuing operations	(374		)	(433		)	159			304			(344		)
Loss from discontinued operations, net of tax	—			—			(21		)	—			(21		)
Net income (loss)	(374		)	(433		)	138			304			(365		)
Less: Net income attributable to non-controlling interests	—			—			9			—			9
Net income (loss) attributable to Navistar International Corporation	$	(374	)	$	(433	)	$	129		$	304		$	(374	)

Condensed Consolidating Statement of Operations
For the Six Months Ended April 30, 2013							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Sales and revenues, net	$	—		$	3,102		$	4,551		$	(2,490	)	$	5,163
Costs of products sold	—			3,217			3,896			(2,464		)	4,649
Restructuring charges	—			4			4			—			8
All other operating expenses (income)	(27		)	580			317			45			915
Total costs and expenses	(27		)	3,801			4,217			(2,419		)	5,572
Equity in income (loss) of affiliates	(524		)	104			(1		)	424			3
Income (loss) before income taxes	(497		)	(595		)	333			353			(406		)
Income tax expense	—			(12		)	(25		)	—			(37		)
Earnings (loss) from continuing operations	(497		)	(607		)	308			353			(443		)
Loss from discontinued operations, net of tax	—			—			(30		)	—			(30		)
Net income (loss)	(497		)	(607		)	278			353			(473		)
Less: Net income attributable to non-controlling interests	—			—			24			—			24
Net income (loss) attributable to Navistar International Corporation	$	(497	)	$	(607	)	$	254		$	353		$	(497	)

Condensed Consolidating Statement of Operations
For the Six Months Ended April 30, 2012							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Sales and revenues, net	$	—		$	4,134		$	5,755		$	(3,619	)	$	6,270
Costs of products sold	—			4,200			4,931			(3,581		)	5,550
Restructuring charges	—			19			—			—			19
Impairment of property and equipment and intangible assets	—			—			10			—			10
All other operating expenses (income)	39			691			459			(51		)	1,138
Total costs and expenses	39			4,910			5,400			(3,632		)	6,717
Equity in income (loss) of affiliates	(296		)	366			(13		)	(68		)	(11		)
Income (loss) before income taxes	(335		)	(410		)	342			(55		)	(458		)
Income tax benefit	10			14			172			3			199
Earnings (loss) from continuing operations	(325		)	(396		)	514			(52		)	(259		)
Loss from discontinued operations, net of tax	—			—			(43		)	—			(43		)
Net income (loss)	(325		)	(396		)	471			(52		)	(302		)
Less: Net income attributable to non-controlling interests	—			—			23			—			23
Net income (loss) attributable to Navistar International Corporation	$	(325	)	$	(396	)	$	448		$	(52	)	$	(325	)

Condensed Consolidating Statement of Operations
For the Three Months Ended April 30, 2012							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Sales and revenues, net	$	—		$	2,172		$	2,974		$	(1,885	)	$	3,261
Costs of products sold	—			2,205			2,555			(1,860		)	2,900
Restructuring charges	—			19			—			—			19
Impairment of intangible assets	—			—			10			—			10
All other operating expenses (income)	14			357			233			(25		)	579
Total costs and expenses	14			2,581			2,798			(1,885		)	3,508
Equity in income (loss) of affiliates	(96		)	271			(6		)	(173		)	(4		)
Income (loss) before income taxes	(110		)	(138		)	170			(173		)	(251		)
Income tax benefit (expense)	(62		)	(63		)	211			37			123
Earnings (loss) from continuing operations	(172		)	(201		)	381			(136		)	(128		)
Loss from discontinued operations, net of tax	—			—			(34		)	—			(34		)
Net income (loss)	(172		)	(201		)	347			(136		)	(162		)
Less: Net income attributable to non-controlling interests	—			—			10			—			10
Net income (loss) attributable to Navistar International Corporation	$	(172	)	$	(201	)	$	337		$	(136	)	$	(172	)

Schedule of Condensed Statement of Comprehensive Income [Table Text Block]

Condensed Consolidating Statement of Comprehensive Income (Loss)
For the Six Months Ended April 30, 2013							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.					Eliminations and Other			Consolidated
Net income (loss) attributable to Navistar International Corporation	$	(497	)	$	(607	)	$	254	$	353		$	(497	)
Other comprehensive income (loss):
Foreign currency translation adjustment	20			—			20		(20		)	20
Defined benefit plans (net of tax of $1, $-, $1, $(1), and $1 respectively)	78			70			8		(78		)	78
Total other comprehensive income (loss)	98			70			28		(98		)	98
Total comprehensive income (loss) attributable to Navistar International Corporation	$	(399	)	$	(537	)	$	282	$	255		$	(399	)

Condensed Consolidating Statement of Comprehensive Income (Loss)
For the Six Months Ended April 30, 2012							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Net income (loss) attributable to Navistar International Corporation	$	(325	)	$	(396	)	$	448		$	(52	)	$	(325	)
Other comprehensive income (loss):
Foreign currency translation adjustment	(78		)	—			(78		)	78			(78		)
Defined benefit plans (net of tax of $(24), $(23), $(1), $24, and $(24) respectively)	40			36			5			(41		)	40
Total other comprehensive income (loss)	(38		)	36			(73		)	37			(38		)
Total comprehensive income (loss) attributable to Navistar International Corporation	$	(363	)	$	(360	)	$	375		$	(15	)	$	(363	)

Condensed Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended April 30, 2013							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.					Eliminations and Other			Consolidated
Net income (loss) attributable to Navistar International Corporation	$	(374	)	$	(433	)	$	129	$	304		$	(374	)
Other comprehensive income (loss):
Foreign currency translation adjustment	3			—			2		(2		)	3
Defined benefit plans (net of tax of $1, $-, $1, $(1), and $1 respectively)	40			35			5		(40		)	40
Total other comprehensive income (loss)	43			35			7		(42		)	43
Total comprehensive income (loss) attributable to Navistar International Corporation	$	(331	)	$	(398	)	$	136	$	262		$	(331	)

Condensed Consolidating Statement of Comprehensive Income (Loss)
For the Three Months Ended April 30, 2012							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Net income (loss) attributable to Navistar International Corporation	$	(172	)	$	(201	)	$	337		$	(136	)	$	(172	)
Other comprehensive income (loss):
Foreign currency translation adjustment	(65		)	—			(65		)	65			(65		)
Defined benefit plans (net of tax of $(12), $(12), $-, $12, and $(12) respectively)	17			16			2			(18		)	17
Total other comprehensive income (loss)	(48		)	16			(63		)	47			(48		)
Total comprehensive income (loss) attributable to Navistar International Corporation	$	(220	)	$	(185	)	$	274		$	(89	)	$	(220	)

Schedule of Condensed Balance Sheet [Table Text Block]

Condensed Consolidating Balance Sheet
As of October 31, 2012							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Assets
Cash and cash equivalents	$	702		$	55		$	330		$	—		$	1,087
Marketable securities	314			—			152			—			466
Restricted cash	24			8			129			—			161
Finance and other receivables, net	5			128			2,859			—			2,992
Inventories	—			691			885			(39		)	1,537
Investments in non-consolidated affiliates	(5,616		)	6,454			54			(830		)	62
Property and equipment, net	—			790			874			(4		)	1,660
Goodwill	—			—			280			—			280
Deferred taxes, net	9			11			243			—			263
Other	83			177			335			(1		)	594
Total assets	$	(4,479	)	$	8,314		$	6,141		$	(874	)	$	9,102
Liabilities and stockholders’ equity (deficit)
Debt	$	1,617		$	1,162		$	1,997		$	(5	)	$	4,771
Postretirement benefits liabilities	—			3,144			367			—			3,511
Amounts due to (from) affiliates	(5,863		)	9,522			(3,743		)	84			—
Other liabilities	3,072			337			748			(77		)	4,080
Total liabilities	(1,174		)	14,165			(631		)	2			12,362
Redeemable equity securities	5			—			—			—			5
Stockholders’ equity attributable to non-controlling interest	—			—			45			—			45
Stockholders’ equity (deficit) attributable to Navistar International Corporation	(3,310		)	(5,851		)	6,727			(876		)	(3,310		)
Total liabilities and stockholders’ equity (deficit)	$	(4,479	)	$	8,314		$	6,141		$	(874	)	$	9,102

Condensed Consolidating Balance Sheet
As of April 30, 2013							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Assets
Cash and cash equivalents	$	218		$	36		$	251		$	—		$	505
Marketable securities	501			—			232			—			733
Restricted cash	25			7			85			—			117
Finance and other receivables, net	8			165			2,806			(12		)	2,967
Inventories	—			725			784			(33		)	1,476
Investments in non-consolidated affiliates	(5,971		)	6,556			43			(576		)	52
Property and equipment, net	—			930			849			(3		)	1,776
Goodwill	—			66			209			—			275
Deferred taxes, net	9			10			237			—			256
Other	51			180			337			(2		)	566
Total assets	$	(5,159	)	$	8,675		$	5,833		$	(626	)	$	8,723
Liabilities and stockholders’ equity (deficit)
Debt	$	1,934		$	1,012		$	1,843		$	(8	)	$	4,781
Postretirement benefits liabilities	—			3,073			351			—			3,424
Amounts due to (from) affiliates	(6,511		)	10,396			(3,958		)	73			—
Other liabilities	3,090			516			624			(74		)	4,156
Total liabilities	(1,487		)	14,997			(1,140		)	(9		)	12,361
Redeemable equity securities	4			—			—			—			4
Stockholders’ equity attributable to non-controlling interests	—			—			35			—			35
Stockholders’ equity (deficit) attributable to Navistar International Corporation	(3,676		)	(6,322		)	6,938			(617		)	(3,677		)
Total liabilities and stockholders’ equity (deficit)	$	(5,159	)	$	8,675		$	5,833		$	(626	)	$	8,723

Schedule of Condensed Cash Flow Statement [Table Text Block]

Condensed Consolidating Statement of Cash Flows
For the Six Months Ended April 30, 2013							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Net cash provided by (used in) operations	$	(648	)	$	(288	)	$	222		$	671		$	(43	)
Cash flows from investment activities
Net change in restricted cash and cash equivalents	(1		)	—			45			—			44
Net purchases of marketable securities	(186		)	—			(81		)	—			(267		)
Capital expenditures and purchase of equipment leased to others	—			(304		)	(98		)	—			(402		)
Other investing activities	—			9			40			—			49
Net cash used in investment activities	(187		)	(295		)	(94		)	—			(576		)
Cash flows from financing activities
Net borrowings (repayments) of debt	327			301			(179		)	(671		)	(222		)
Other financing activities	24			263			(23		)	—			264
Net cash provided by (used in) financing activities	351			564			(202		)	(671		)	42
Effect of exchange rate changes on cash and cash equivalents	—			—			(5		)	—			(5		)
Decrease in cash and cash equivalents	(484		)	(19		)	(79		)	—			(582		)
Cash and cash equivalents at beginning of the period	702			55			330			—			1,087
Cash and cash equivalents at end of the period	$	218		$	36		$	251		$	—		$	505

Condensed Consolidating Statement of Cash Flows
For the Six Months Ended April 30, 2012							Non-Guarantor Subsidiaries
(in millions)	NIC			Navistar, Inc.						Eliminations and Other			Consolidated
Net cash provided by (used in) operations	$	(463	)	$	(267	)	$	248		$	531		$	49
Cash flows from investment activities
Net change in restricted cash and cash equivalents	6			2			174			—			182
Net purchases in marketable securities	374			—			7			—			381
Capital expenditures and purchase of equipment leased to others	—			(115		)	(89		)	—			(204		)
Other investing activities	—			(104		)	70			—			(34		)
Net cash provided by (used in) investment activities	380			(217		)	162			—			325
Cash flows from financing activities
Net borrowings (repayments) of debt	(50		)	519			(429		)	(440		)	(400		)
Other financing activities	19			—			(38		)	(91		)	(110		)
Net cash provided by (used in) financing activities	(31		)	519			(467		)	(531		)	(510		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(3		)	—			(3		)
Increase (decrease) in cash and cash equivalents	(114		)	35			(60		)	—			(139		)
Cash and cash equivalents at beginning of the period	226			13			300			—			539
Cash and cash equivalents at end of the period	$	112		$	48		$	240		$	—		$	400

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Discontinued Operations (Tables)

6 Months Ended

Apr. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Statements of Operations for Discontinued Operations [Table Text Block]

The following table summarizes the discontinued operations activity in the Company's Consolidated Statements of Operations:

	Three Months Ended April 30,						Six Months Ended April 30,
(in millions)	2013			2012			2013			2012
Sales and revenues, net	$	36		$	37		$	70		$	80
Loss before income taxes	$	(21	)	$	(44	)	$	(30	)	$	(58	)
Income tax benefit	—			10			—			15
Loss from discontinued operations, net of tax	$	(21	)	$	(34	)	$	(30	)	$	(43	)

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Apr. 30, 2013

Accounting Policies [Abstract]

Product Warranty Liability

The following table presents accrued product warranty and deferred warranty revenue activity:

	Six Months Ended April 30,
(in millions)	2013			2012
Balance at beginning of period	$	1,118		$	598
Costs accrued and revenues deferred	226			236
Adjustments to pre-existing warranties(A)(B)	204			227
Payments and revenues recognized	(327		)	(217		)
Balance at end of period	1,221			844
Less: Current portion	647			365
Noncurrent accrued product warranty and deferred warranty revenue	$	574		$	479

_________________________

(A) Adjustments to pre-existing warranties reflect changes in our estimate of warranty costs for products sold in prior periods. Such adjustments typically occur when claims experience deviates from historic and expected trends. Our warranty liability is generally affected by component failure rates, repair costs, and the timing of failures. Future events and circumstances related to these factors could materially change our estimates and require adjustments to our liability. In addition, new product launches require a greater use of judgment in developing estimates until historical experience becomes available.

Inthe first quarter of 2013, we recorded adjustments for changes in estimates of $40 million, or $0.50 per diluted share. Inthe second quarter of 2013, we recorded adjustments for changes in estimates of $164 million, or $2.04 per diluted share. The impact of income taxes on the 2013 adjustments are not material due to our deferred tax valuation allowances on our U.S. deferred tax assets.

In the first quarter of 2012, adjustments for changes in estimates amounted to $123 million, $119 million net of tax or $1.70 per diluted share. In the second quarter of 2012, we recorded adjustments for changes in estimates of $104 million, $100 million net of tax or $1.46. The impact of income taxes on the 2012 adjustments reflect the Company's 2012 estimated annual effective tax rate as of April 30, 2012.

(B) In the first quarter of 2013, we recognized $13 million of charges for adjustments to pre-existing warranties for a specific warranty issue related to component parts from a supplier. Also during the quarter, we reached agreement for reimbursement from this supplier for this amount and other costs previously accrued. As a result of this agreement, we recognized a recovery of $27 million within Costs of products sold and recorded a receivable within Other current assets. In the second quarter of 2013, we recognized a warranty recovery of $13 million within Loss from discontinued operations, net of tax and recorded a receivable within Other current assets.

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Finance Receivables - Off-Balance Sheet Securitizations (Details) (USD $) In Millions, unless otherwise specified	Apr. 30, 2013	Oct. 31, 2012
Financial Services Operations [Member]
Schedule of Securitization [Line Items]
Debt Instrument, Face Amount	$ 200
Trac Funding Facility [Member]
Schedule of Securitization [Line Items]
Finance Receivables Retail Accounts Collateral For Borrowed Securities	976	1,100
Cash Collateral for Borrowed Securities	$ 127	$ 164

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Fair Value Measurements (Tables)

6 Months Ended

Apr. 30, 2013

Fair Value Disclosures [Abstract]

Financial instruments measured at fair value, recurring basis

The following table presents the financial instruments measured at fair value on a recurring basis:

	April 30, 2013								October 31, 2012
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Marketable securities:
U.S. Treasury bills	$	662	$	—	$	—	$	662	$	420	$	—	$	—	$	420
Other	71		—		—		71		46		—		—		46
Derivative financial instruments:
Foreign currency contracts	—		2		—		2		—		—		—		—
Total assets	$	733	$	2	$	—	$	735	$	466	$	—	$	—	$	466
Liabilities
Derivative financial instruments:
Commodity contracts	$	—	$	4	$	—	$	4	$	—	$	4	$	—	$	4
Foreign currency contracts	—		1		—		1		—		—		—		—
Guarantees	—		—		7		7		—		—		7		7
Total liabilities	$	—	$	5	$	7	$	12	$	—	$	4	$	7	$	11

Financial instruments classified within Level 3

The following tables present the changes for those financial instruments classified within Level 3 of the valuation hierarchy:

	Three Months Ended April 30,
	2013					2012
(in millions)	Guarantees			Commodity contracts		Guarantees			Commodity contracts
Balance at February 1	$	(7	)	$	—	$	(7	)	$	—
Total gains (losses) (realized/unrealized) included in earnings(A)	—			—		—			—
Transfers out of Level 3	—			—		—			—
Issuances	—			—		—			—
Settlements	—			—		—			—
Balance at April 30	$	(7	)	$	—	$	(7	)	$	—
Change in unrealized gains on assets and liabilities still held	$	—		$	—	$	—		$	—

	Six Months Ended April 30,
	2013					2012
(in millions)	Guarantees			Commodity contracts		Guarantees			Commodity contracts
Balance at November 1	$	(7	)	$	—	$	(6	)	$	(2	)
Total gains (losses) (realized/unrealized) included in earnings(A)	—			—		—			(1		)
Transfers out of Level 3	—			—		—			2
Issuances	—			—		(1		)	—
Settlements	—			—		—			1
Balance at April 30	$	(7	)	$	—	$	(7	)	$	—
Change in unrealized gains on assets and liabilities still held	$	—		$	—	$	—		$	—

_________________________

(A) For commodity contracts, losses are included in Cost of products sold.

Financial instruments measured at fair value, nonrecurring basis

The following table presents these financial instruments measured at fair value on a nonrecurring basis:

(in millions)	April 30, 2013		October 31, 2012
Level 2 financial instruments
Carrying value of impaired finance receivables (A)	$	12	$	14
Specific loss reserve	7		9
Fair value	$	5	$	5

_________________________

(A) Certain impaired finance receivables are measured at fair value on a nonrecurring basis. An impairment charge is recorded for the amount by which the carrying value of the receivables exceeds the fair value of the underlying collateral, net of remarketing costs. Fair values of the underlying collateral are determined by reference to dealer vehicle value publications adjusted for certain market factors.

Carrying values and estimated fair values of financial instruments

he carrying values and estimated fair values of financial instruments:

	April 30, 2013
	Estimated Fair Value								Carrying Value
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Retail notes	$	—	$	—	$	478	$	478	$	478
Notes receivable	—		—		17		17		13
Liabilities
Debt:
Manufacturing operations
Senior Secured Term Loan Credit Facility, as Amended due 2017	—		—		687		687		693
8.25% Senior Notes, due 2021	1,322		—		—		1,322		1,177
3.0% Senior Subordinated Convertible Notes, due 2014(A)	585		—		—		585		532
Debt of majority-owned dealerships	—		—		43		43		43
Financing arrangements	—		—		54		54		83
Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040	—		245		—		245		225
Promissory Note	—		—		25		25		25
Financed lease obligations	—		—		209		209		209
Other	—		—		58		58		59
Financial Services operations
Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2019	—		—		807		807		805
Bank revolvers, at fixed and variable rates, due dates from 2013 through 2019	—		—		832		832		861
Borrowings secured by operating and finance leases, at various rates, due serially through 2017	—		—		65		65		65

	October 31, 2012
	Estimated Fair Value								Carrying Value
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Retail notes	$	—	$	—	$	613	$	613	$	618
Notes receivable	—		—		27		27		27
Liabilities
Debt:
Manufacturing operations
Senior Secured Term Loan Credit Facility, as Amended due 2017	—		—		1,047		1,047		991
8.25% Senior Notes, due 2021	899		—		—		899		872
3.0% Senior Subordinated Convertible Notes, due 2014(A)	514		—		—		514		520
Debt of majority-owned dealerships	—		—		60		60		60
Financing arrangements	—		—		102		102		136
Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040	—		234		—		234		225
Promissory Note	—		—		29		29		30
Other	—		—		67		67		67
Financial Services operations
Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2019	—		—		994		994		994
Bank revolvers, at fixed and variable rates, due dates from 2013 through 2019	—		—		734		734		763
Commercial paper, at variable rates, matured in 2013	31		—		—		31		31
Borrowings secured by operating and finance leases, at various rates, due serially through 2017	—		—		79		79		78

_________________________

(A) The carrying value represents the consolidated financial statement amount of the debt which excludes the allocation of the conversion feature to equity, while the fair value is based on quoted market prices for the convertible note which includes the equity feature.

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Summary of Significant Accounting Policies - Variable Interest Entities (Details) (USD $) In Millions, unless otherwise specified	Apr. 30, 2013	Oct. 31, 2012
Variable Interest Entity Primary Beneficiary Blue Diamond Parts And Blue Diamond Truck [Member]
Variable Interest Entity [Line Items]
Liabilities	$ 165	$ 109
Variable Interest Entity, Consolidated, Carrying Amount, Assets	266	246
Cash and cash equivalents	34	26
Securitizations Treated as Borrowings [Member] | Financial Services Operations [Member]
Variable Interest Entity [Line Items]
Liabilities	773	914
Variable Interest Entity, Consolidated, Carrying Amount, Assets	1,000	1,100
Transaction Does Not Qualify for Sale Accounting [Member] | Financial Services Operations [Member]
Variable Interest Entity [Line Items]
Liabilities	96	157
Variable Interest Entity, Consolidated, Carrying Amount, Assets	$ 317	$ 359

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Allowance for Doubtful Accounts - Impaired Finance Receivables (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Apr. 30, 2013 Retail Portfolio [Member]	Apr. 30, 2012 Retail Portfolio [Member]	Apr. 30, 2013 Impaired finance receivables with specific loss reserves [Member]		Oct. 31, 2012 Impaired finance receivables with specific loss reserves [Member]		Apr. 30, 2013 Impaired finance receivables with specific loss reserves [Member] Retail Portfolio [Member]	Oct. 31, 2012 Impaired finance receivables with specific loss reserves [Member] Retail Portfolio [Member]	Apr. 30, 2013 Impaired finance receivables with specific loss reserves [Member] Wholesale Portfolio [Member]	Oct. 31, 2012 Impaired finance receivables with specific loss reserves [Member] Wholesale Portfolio [Member]	Apr. 30, 2013 Impaired financing receivable without specific loss reserves [Member]	Oct. 31, 2012 Impaired financing receivable without specific loss reserves [Member]	Apr. 30, 2013 Impaired financing receivable without specific loss reserves [Member] Retail Portfolio [Member]	Oct. 31, 2012 Impaired financing receivable without specific loss reserves [Member] Retail Portfolio [Member]	Apr. 30, 2013 Impaired financing receivable without specific loss reserves [Member] Wholesale Portfolio [Member]	Oct. 31, 2012 Impaired financing receivable without specific loss reserves [Member] Wholesale Portfolio [Member]	Apr. 30, 2013 Specific loss reserves on impaired finance receivables [Member]	Oct. 31, 2012 Specific loss reserves on impaired finance receivables [Member]	Apr. 30, 2013 Specific loss reserves on impaired finance receivables [Member] Retail Portfolio [Member]	Oct. 31, 2012 Specific loss reserves on impaired finance receivables [Member] Retail Portfolio [Member]	Apr. 30, 2013 Specific loss reserves on impaired finance receivables [Member] Wholesale Portfolio [Member]	Oct. 31, 2012 Specific loss reserves on impaired finance receivables [Member] Wholesale Portfolio [Member]	Apr. 30, 2013 Finance receivable non-accrual status [Member]	Oct. 31, 2012 Finance receivable non-accrual status [Member]	Apr. 30, 2013 Finance receivable non-accrual status [Member] Retail Portfolio [Member]	Oct. 31, 2012 Finance receivable non-accrual status [Member] Retail Portfolio [Member]	Apr. 30, 2013 Finance receivable non-accrual status [Member] Wholesale Portfolio [Member]	Oct. 31, 2012 Finance receivable non-accrual status [Member] Wholesale Portfolio [Member]
Finance Receivable, Impaired [Line Items]
Impaired Financing Receivable, Average Recorded Investment	$ 13	$ 17
Impaired Financing Receivable, Recorded Investment			12	[1]	14	[1]	12	14	0	0	1	1	1	1	0	0
Specific loss reserves on impaired finance receivables																	7	9	7	9	0	0
Finance receivables on non-accrual status																							$ 9	$ 10	$ 9	$ 10	$ 0	$ 0

[1] Certain impaired finance receivables are measured at fair value on a nonrecurring basis. An impairment charge is recorded for the amount by which the carrying value of the receivables exceeds the fair value of the underlying collateral, net of remarketing costs. Fair values of the underlying collateral are determined by reference to dealer vehicle value publications adjusted for certain market factors.

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Inventories (Tables)

6 Months Ended

Apr. 30, 2013

Inventory Disclosure [Abstract]

Schedule of inventories

The following table presents the components of Inventories:

(in millions)	April 30, 2013		October 31, 2012
Finished products	$	852	$	833
Work in process	111		136
Raw materials	513		568
Total inventories	$	1,476	$	1,537

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Financial Instruments and Commodity Contracts - Balance Sheet Location (Details) (USD $) In Millions, unless otherwise specified	Apr. 30, 2013	Oct. 31, 2012
Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives	$ 2	$ 0
Other Current Liabilities [Member]
Derivatives, Fair Value [Line Items]
Liability derivatives	5	5
Commodity Contract [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives	0	0
Commodity Contract [Member] | Other Current Liabilities [Member]
Derivatives, Fair Value [Line Items]
Liability derivatives	4	3
Commodity Contract [Member] | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives	2	0
Commodity Contract [Member] | Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Liability derivatives	$ 1	$ 2

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Loss Per Share Attributable to Navistar International Corporation - Basic & Diluted Loss per Share (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012
Earnings Per Share [Abstract]
Loss from continuing operations, net of tax	$ (353)	$ (138)	$ (467)	$ (282)
Loss from discontinued operations, net of tax	(21)	(34)	(30)	(43)
Net loss attributable to Navistar International Corporation	$ (374)	$ (172)	$ (497)	$ (325)
Weighted Average Number of Shares Outstanding, Basic	80.4	68.7	80.3	69.3
Weighted Average Number Diluted Shares Outstanding Adjustment	0	0	0	0
Weighted Average Number of Shares Outstanding, Diluted	80.4	68.7	80.3	69.3
Basic: Loss from Continuing Operations (in dollars per share)	$ (4.39)	$ (2.01)	$ (5.82)	$ (4.07)
Basic: Loss from Discontinued Operations (in dollars per share)	$ (0.26)	$ (0.49)	$ (0.37)	$ (0.62)
Earnings Per Share, Basic	$ (4.65)	$ (2.50)	$ (6.19)	$ (4.69)
Diluted: Loss from Continuing Operations (in dollars per share)	$ (4.39)	$ (2.01)	$ (5.82)	$ (4.07)
Diluted: Loss from Discontinued Operations (in dollars per share)	$ (0.26)	$ (0.49)	$ (0.37)	$ (0.62)
Earnings Per Share, Diluted	$ (4.65)	$ (2.50)	$ (6.19)	$ (4.69)

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Financial Instruments and Commodity Contracts - Narrative (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended					1 Months Ended
	Apr. 30, 2013	Oct. 31, 2012	Apr. 30, 2013 Interest Rate Contract [Member]	Oct. 31, 2012 Interest Rate Contract [Member]	Apr. 30, 2013 Convertible Subordinated Debt [Member]	Oct. 31, 2009 Call Option [Member] Convertible Subordinated Debt [Member] Manufacturing Operations [Member]	Apr. 30, 2013 Steel Forward Contracts [Member] Commodity Contract [Member]	Oct. 31, 2012 Steel Forward Contracts [Member] Commodity Contract [Member]	Apr. 30, 2013 Diesel Fuel Forward Contracts [Member] Commodity Contract [Member]	Oct. 31, 2012 Diesel Fuel Forward Contracts [Member] Commodity Contract [Member]
Derivative [Line Items]
Debt Instrument, Interest Rate, Effective Percentage					3.00%
Payments for Derivative Instrument, Investing Activities						$ 125
Derivative, Collateral, Obligation to Return Cash		1
Derivative, Notional Amount			19	39			39	61	6	3
Exposure to credit risk	$ 2	$ 0

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Restructuring and Impairments - Narrative (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended		3 Months Ended	6 Months Ended	3 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012	Oct. 31, 2012 Truck [Domain] Garland Assembly Plant [Member] Employee Severance [Member]	Apr. 30, 2013 Truck [Domain] Garland Assembly Plant [Member] Garland plant closure [Member]	Apr. 30, 2012 Truck [Domain] Warrenville [Member] Accrued Rent Expense, Reversal [Domain]	Apr. 30, 2012 Truck [Domain] Warrenville [Member] Lease Vacancy [Member]	Apr. 30, 2012 Truck [Domain] Warrenville [Member] Lease Vacancy Fair Value [Member]	Apr. 30, 2012 Truck [Domain] Workhorse Custom Chassis [Member]	Apr. 30, 2012 Parts [Member] Workhorse Custom Chassis [Member]	Oct. 31, 2012 Voluntary Separation Program [Member]	Oct. 31, 2012 Voluntary Separation Program [Member] Pension And Other Postretirement Contractual Termination Benefits [Member]	Oct. 31, 2012 Voluntary Separation Program [Member] Employee Severance [Member]	Apr. 30, 2013 Minimum [Member] Truck [Domain] Garland Assembly Plant [Member] Garland plant closure [Member]	Apr. 30, 2013 Minimum [Member] Truck [Domain] Chatham [Member]	Apr. 30, 2013 Maximum [Member] Truck [Domain] Chatham [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 6	$ 19	$ 8	$ 19	$ 4	$ 21	$ 3	$ 16	$ 19			$ 73	$ 7	$ 66
Restructuring and Related Cost, Expected Cost															10	20	70
Impairment of Intangible Assets (Excluding Goodwill)			$ 8	$ 38						$ 28	$ 10

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Segment Reporting - Segment Assets (Details) (USD $) In Millions, unless otherwise specified	Apr. 30, 2013		Oct. 31, 2012
Segment Reporting Information [Line Items]
Segment Assets	$ 8,723		$ 9,102
Truck [Member]
Segment Reporting Information [Line Items]
Segment Assets	2,139	[1]	2,118	[1]
Engine [Member]
Segment Reporting Information [Line Items]
Segment Assets	1,738		1,777
Parts [Member]
Segment Reporting Information [Line Items]
Segment Assets	709		707
Financial Services Operations [Member]
Segment Reporting Information [Line Items]
Segment Assets	2,518		2,563
Corporate And Eliminations [Member]
Segment Reporting Information [Line Items]
Segment Assets	$ 1,619		$ 1,937

[1] Includes amounts related to discontinued operations. For more information, see Note 2, Discontinued Operations and Other Divestitures.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Apr. 30, 2013

Accounting Policies [Abstract]

Reclassification, Policy [Policy Text Block]

Out-Of-Period Adjustments

Included in the results of operations for the three and six months ended April 30, 2013 are out-of-period adjustments, which represent corrections of prior-period errors related to the accounting for certain sales transactions. In March 2010, we entered into an operating agreement with GE Capital Corporation and GE Capital Commercial, Inc. (collectively “GE”). Under the terms of the agreement, GE became our preferred source of retail customer financing for equipment offered by us and our dealers in the U.S. We provide GE a loss sharing arrangement for certain credit losses. The determination was made that certain sales that were ultimately financed by GE did not qualify for revenue recognition, as we retained substantial risks of ownership in the leased property. As a result, the transactions should have been accounted for as borrowings, resulting in the proceeds from the transfer being recorded as an obligation and amortized to revenue over the term of the financing. In addition, the financed equipment should have been transferred from inventory to equipment leased to others and depreciated over the term of the financing.

Correcting the errors, which were not material to any of the prior periods, resulted in a $9 million and $8 million increase to Net loss in our Consolidated Statements of Operations for the three and six months ended April 30, 2013, respectively. The impact of the correction on our results for the three months ended April 30, 2013 related to prior periods includes: (i) a $124 million net decrease to Sales of manufactured products, net, (ii) a $126 million net decrease to Costs of products sold, including $46 million of additional depreciation expense, and (iii) an $11 million increase to Interest expense. The impact of the correction on our results for the six months ended April 30, 2013 related to prior periods includes: (i) a $113 million net decrease to Sales of manufactured products, net, (ii) a $113 million net decrease to Costs of products sold, including $37 million of additional depreciation expense, and (iii) an $8 million increase to Interest expense. In addition, in our Condensed Consolidated Statements of Cash Flows we recognized Purchases of equipment leased to others of $184 million and Proceeds from financed lease obligations of $201 million related to periods prior to fiscal 2013. The impact of the corrections was not material to any of our Consolidated Balance Sheets.

Basis of Presentation and Consolidation

Basis of Presentation and Consolidation

The accompanying unaudited consolidated financial statements include the assets, liabilities, and results of operations of our manufacturing operations, which include majority-owned dealers ("Dealcors"), and our financial services operations, including VIEs of which we are the primary beneficiary. The effects of transactions among consolidated entities have been eliminated to arrive at the consolidated amounts. Certain reclassifications were made to prior periods' amounts to conform to the 2013 presentation, which includes the presentation of certain former businesses as discontinued operations. For more information, see Note 2, Discontinued Operations and Other Divestitures.

We prepared the accompanying unaudited consolidated financial statements in accordance with United States ("U.S.") generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and notes required by U.S. GAAP for comprehensive annual financial statements.

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting policies described in our Annual Report on Form 10-K for the year ended October 31, 2012 and Current Report on Form 8-K filed on March 25, 2013, all of which should be read in conjunction with the disclosures therein. In our opinion, these interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial condition, results of operations, and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of annual operating results.

Variable Interest Entities

Variable Interest Entities

We have an interest in several VIEs, primarily joint ventures, established to manufacture or distribute products and enhance our operational capabilities. We have determined for certain of our VIEs that we are the primary beneficiary because we have the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and have the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Accordingly, we include in our consolidated financial statements the assets and liabilities and results of operations of those entities, even though we may not own a majority voting interest. The liabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets; rather they represent claims against the specific assets of these VIEs. Assets of these entities are not readily available to satisfy claims against our general assets.

We are the primary beneficiary of our Blue Diamond Parts ("BDP") and Blue Diamond Truck ("BDT") joint ventures with Ford Motor Company ("Ford"). As a result, our Consolidated Balance Sheets include assets of $266 million and $246 million and liabilities of $165 million and $109 million as of April 30, 2013 and October 31, 2012, respectively, from BDP and BDT, including $34 million and $26 million of cash and cash equivalents, at the respective dates, which are not readily available to satisfy claims against our general assets. The creditors of BDP and BDT do not have recourse to our general credit. In December 2011, Ford notified the Company of its intention to dissolve the BDT joint venture effective December 2014. We do not expect the dissolution of the BDT joint venture to have a material impact on our consolidated financial statements.

Our Financial Services segment consolidates several VIEs. As a result, our Consolidated Balance Sheets include assets of $1.0 billion and $1.1 billion and liabilities of $773 million and $914 million as of April 30, 2013 and October 31, 2012, respectively, all of which are involved in securitizations that are treated as borrowings. In addition, our Consolidated Balance Sheets include assets of $317 million and $359 million and related liabilities of $96 million and $157 million as of April 30, 2013 and October 31, 2012, respectively, all of which are involved in transactions that do not qualify for sale accounting treatment, and therefore, are treated as borrowings. Investors that hold securitization debt have a priority claim on the cash flows generated by their respective securitized assets to the extent that the related trusts are entitled to make principal and interest payments. Investors in securitizations of these entities have no recourse to our general credit.

We also have an interest in other VIEs, which we do not consolidate because we are not the primary beneficiary. Our financial support and maximum loss exposure relating to these non-consolidated VIEs are not material to our financial condition, results of operations, or cash flows.

We use the equity method to account for our investments in entities that we do not control under the voting interest or variable interest models, but where we have the ability to exercise significant influence over operating and financial policies. Equity in loss of non-consolidated affiliates includes our share of the net income (loss) of these entities.

Use of estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the periods presented. Significant estimates and assumptions are used for, but are not limited to, pension and other postretirement benefits, allowance for doubtful accounts, income tax contingency accruals and valuation allowances, product warranty accruals, asbestos and other product liability accruals, asset impairment charges, and litigation-related accruals. Actual results could differ from our estimates.

Concentration Risks

Concentration Risks

Our financial condition, results of operations, and cash flows are subject to concentration risks related to concentrations of our union employees. As of April 30, 2013, approximately 4,600, or 51%, of our hourly workers and approximately 400, or 5%, of our salaried workers are represented by labor unions and are covered by collective bargaining agreements. Our future operations may be affected by changes in governmental procurement policies, budget considerations, changing national defense requirements, and global, political, regulatory and economic developments in the U.S. and certain foreign countries (primarily Canada, Mexico, and Brazil).

Warranty

Product Warranty Liability

The following table presents accrued product warranty and deferred warranty revenue activity:

	Six Months Ended April 30,
(in millions)	2013			2012
Balance at beginning of period	$	1,118		$	598
Costs accrued and revenues deferred	226			236
Adjustments to pre-existing warranties(A)(B)	204			227
Payments and revenues recognized	(327		)	(217		)
Balance at end of period	1,221			844
Less: Current portion	647			365
Noncurrent accrued product warranty and deferred warranty revenue	$	574		$	479

_________________________

(A) Adjustments to pre-existing warranties reflect changes in our estimate of warranty costs for products sold in prior periods. Such adjustments typically occur when claims experience deviates from historic and expected trends. Our warranty liability is generally affected by component failure rates, repair costs, and the timing of failures. Future events and circumstances related to these factors could materially change our estimates and require adjustments to our liability. In addition, new product launches require a greater use of judgment in developing estimates until historical experience becomes available.

Inthe first quarter of 2013, we recorded adjustments for changes in estimates of $40 million, or $0.50 per diluted share. Inthe second quarter of 2013, we recorded adjustments for changes in estimates of $164 million, or $2.04 per diluted share. The impact of income taxes on the 2013 adjustments are not material due to our deferred tax valuation allowances on our U.S. deferred tax assets.

In the first quarter of 2012, adjustments for changes in estimates amounted to $123 million, $119 million net of tax or $1.70 per diluted share. In the second quarter of 2012, we recorded adjustments for changes in estimates of $104 million, $100 million net of tax or $1.46. The impact of income taxes on the 2012 adjustments reflect the Company's 2012 estimated annual effective tax rate as of April 30, 2012.

(B) In the first quarter of 2013, we recognized $13 million of charges for adjustments to pre-existing warranties for a specific warranty issue related to component parts from a supplier. Also during the quarter, we reached agreement for reimbursement from this supplier for this amount and other costs previously accrued. As a result of this agreement, we recognized a recovery of $27 million within Costs of products sold and recorded a receivable within Other current assets. In the second quarter of 2013, we recognized a warranty recovery of $13 million within Loss from discontinued operations, net of tax and recorded a receivable within Other current assets.

The amount of deferred revenue related to extended warranty programs was $405 million and $364 million at April 30, 2013 and October 31, 2012, respectively. Revenue recognized under our extended warranty programs was $11 million and $40 million for the three and six months ended April 30, 2013, respectively, and $16 million and $31 million for the three and six months ended April 30, 2012, respectively. In the second quarters of 2013 and 2012, the Truck segment recognized charges of $33 million and $24 million, respectively, related to the extended warranty contracts on our 2010 emission standard MaxxForce Big-Bore engines. The majority of these changes are included in the adjustments to pre-existing warranties.

Recently Issued and Adopted Accounting Standards

Recently Issued and Adopted Accounting Standards

There are no recently issued accounting standards for which the Company expects a material impact on our consolidated financial statements. In addition, for the six months ended April 30, 2013, the Company has not adopted any new accounting guidance that has had a material impact on our consolidated financial statements.

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Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, except Per Share data, unless otherwise specified	Apr. 30, 2013	Oct. 31, 2012
Common Stock, Par or Stated Value Per Share	$ 0.10	$ 0.10
Common Stock, Shares Authorized	220	220
Common Stock, Shares, Issued	86.8	86.0
Treasury Stock, Shares	6.4	6.8
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$ 2,386	$ 2,228
Finite-Lived Intangible Assets, Accumulated Amortization	$ 89	$ 78

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Consolidated Statements of Stockholders' Equity (Deficit) (USD $) In Millions	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]	Noncontrolling Interest [Member]
Stockholders' Equity balance at beginning of period at Oct. 31, 2011	$ 23	$ 3	$ 7	$ 2,253	$ (155)	$ (1,944)	$ (191)	$ 50
Net income (loss) Attributable to Navistar International Corporation	(325)				(325)
Net Income (Loss) Attributable to Noncontrolling Interest	23							23
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(302)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(38)					(38)
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	11			11
Stock Issued During Period, Value, Employee Stock Ownership Plan	1			(10)			11
Dividends, Common Stock, Cash	(34)							(34)
Noncontrolling Interest, Period Increase (Decrease)	0			(3)				3
Treasury Stock, Value, Acquired, Cost Method	(75)			20			(95)
Stockholders' Equity, Other	2		1	1			(1)	1
Stockholders' Equity balance at end of period at Apr. 30, 2012	(412)	3	8	2,272	(480)	(1,982)	(276)	43
Stockholders' Equity balance at beginning of period at Oct. 31, 2012	(3,265)	3	9	2,440	(3,165)	(2,325)	(272)	45
Net income (loss) Attributable to Navistar International Corporation	(497)				(497)
Net Income (Loss) Attributable to Noncontrolling Interest	24							24
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(473)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	98					98
Adjustments to Additional Paid in Capital, Increase in Carrying Amount of Redeemable Preferred Stock	1			1
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	9			9
Stock Issued During Period, Value, Employee Stock Ownership Plan	7			(9)			16
Dividends, Common Stock, Cash	(25)							(25)
Stock Issued During Period, Value, New Issues	14			14
Noncontrolling Interest, Decrease from Deconsolidation	(9)							(9)
Stockholders' Equity, Other	1			1
Stockholders' Equity balance at end of period at Apr. 30, 2013	$ (3,642)	$ 3	$ 9	$ 2,456	$ (3,662)	$ (2,227)	$ (256)	$ 35

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Restructuring and Impairments

6 Months Ended

Apr. 30, 2013

Restructuring and Related Activities [Abstract]

Restructurings and Impairments

Restructurings and Impairments

Restructuring charges recorded are based on restructuring plans that have been committed to by management and are, in part, based upon management's best estimates of future events. Changes to the estimates may require future adjustments to the restructuring liabilities. In the three and six months ended April 30, 2013, the Company recognized restructuring charges of $6 million and $8 million, respectively, compared to $19 million in both the three and six months ended April 30, 2012.

Cost-Reductions and Other Strategic Initiatives

In the fourth quarter of 2012, we announced actions to control spending across the Company with targeted reductions of certain costs. In addition to the expected integration synergies resulting from ongoing efforts to consolidate our truck and engine engineering operations, as well as the relocation of our world headquarters to Lisle, Illinois, we are focusing on continued reductions in discretionary spending, including but not limited to reductions from efficiencies, and prioritizing or eliminating certain programs or projects.

We continue to evaluate options to improve the efficiency and performance of our operations. Our focus is on improving our core North American Manufacturing operations performance. We are evaluating opportunities to restructure our business and rationalize our manufacturing operations in an effort to optimize our cost structure, which could include, among other actions, additional rationalization of our manufacturing operations and/or divesting of non-core businesses. These actions could result in additional restructuring and other related charges during fiscal 2013, including but not limited to, impairments, employee termination costs and charges for pension and other postretirement contractual benefits and pension curtailments, and these charges could be significant.

Voluntary separation program and reduction in force

In the fourth quarter of 2012, the Company offered the majority of our U.S.-based non-represented salaried employees the opportunity to apply for a voluntary separation program ("VSP"). Along with the employees who chose to participate in the VSP, we used attrition and an involuntary reduction in force to eliminate additional positions in order to meet our targeted reductions goal. In addition to these actions in the U.S., our Brazilian operations utilized an involuntary reduction in force to eliminate positions. As a result of these actions and charges related to the elimination of certain executive positions, the Company recognized restructuring charges of $73 million in the fourth quarter of 2012. The restructuring charges consisted of $66 million in personnel costs for employee termination and related benefits and $7 million of charges for pension and other postretirement contractual termination benefits. The Company expects the restructuring charges, excluding other postretirement costs, will be paid throughout the year.

Engineering Integration

In 2011, the Company committed to a plan and finalized the purchase of the property and buildings to consolidate its truck and engine engineering operations, as well as the relocation of our world headquarters. The Company is utilizing proceeds from an October 2010 loan agreement related to tax exempt bonds (the "Tax Exempt Bonds") to finance the relocation of the Company’s world headquarters and engineering center, the expansion of an existing warehouse facility, and the development of certain industrial facilities to assist with the consolidation of certain operations (the "Loan Agreement").

In the second quarter of 2012, the Company vacated the premises of its former world headquarters in Warrenville, Illinois and recorded a charge of $16 million, consisting of $19 million for the recognition of the fair value of the lease vacancy obligation, partially offset by $3 million for the reversal of deferred rent expense. This charge was recorded in Corporate and recognized in Restructuring charges. The cash payments associated with the lease vacancy obligation are expected to be completed by the end of 2016.

North American Manufacturing Restructuring Activities and Impairments of Intangible Assets

The Company continues to evaluate opportunities to restructure and rationalize its manufacturing operations in an effort to optimize the cost structure. In the third quarter of 2011, the Company committed to plans for the restructuring of certain North American manufacturing operations, including the closure of its Chatham, Ontario heavy truck plant and actions related to WCC and Monaco (collectively "Custom Products"). In the fourth quarter of 2012, the Company committed to plans for the closure of its Garland, Texas truck manufacturing operations (the "Garland Facility"). In the second quarter of 2013, the Company reached an agreement to sublease a portion of its manufacturing facility in Cherokee, Alabama (the “Cherokee Facility”).

Chatham restructuring activities

In the third quarter of 2011, the Company committed to close its Chatham, Ontario heavy truck plant, which had been idled since June 2009. We anticipate additional charges of $20 million to $70 million in future periods, primarily related to pension and postretirement costs and termination benefits, which are subject to employee negotiation and acceptance rates. We expect the previous restructuring charges, excluding pension and other postretirement costs, will be paid over the next year.

Custom Products restructuring activities and impairment of intangible assets

In the third quarter of 2011, the Company committed to a restructuring plan of Custom Products, including the closure of the Union City, Indiana chassis facility and the wind-down and transfer of certain operations at the Monaco RV motor coach plant in Coburg, Oregon. In the second quarter of 2012, the Company decided to discontinue accepting orders and idle the WCC operations. In the first quarter of 2013, the Company completed the idling of the WCC operations and in the second quarter of 2013, it divested WCC for an immaterial amount.

In the second quarter of 2012, as a result of the decision to idle the WCC operations, the WCC asset group was reviewed for recoverability and determined not to be recoverable. We determined that the remaining intangible asset balances were fully impaired, and the Company recognized asset impairment charges of $28 million in Loss from discontinued operations, net of tax. In addition, the Parts segment recognized a charge of $10 million for the impairment of certain intangible assets of the parts distribution operations related to the WCC business.

Beginning in the first quarter of 2013, the Company began reporting the operating results of WCC and certain operating results of Monaco as discontinued operations in the Company's Consolidated statements of operations. In March 2013, we completed the divestiture of the WCC business. In May 2013, we divested substantially all of our interest in these operations of Monaco. For more information, see Note 2, Discontinued Operations and Other Divestitures.

Garland Facility closure

In the fourth quarter of 2012, the Company committed to plans for the closure of the Garland Facility, which resulted in our Truck segment recognizing restructuring charges of $4 million for personnel costs related to employee terminations and related benefits. Beginning in early 2013, the Company began transitioning production from the Garland Facility to other North America operations that produce similar models. In the second quarter of 2013, production at the Garland Facility ceased. During 2013, we recognized $21 million of charges related to the planned closure, primarily from accelerated depreciation of certain assets related to the facility. We anticipate recognizing approximately $10 million of other related charges in the remainder 2013. We expect the restructuring charges relating to employee separation benefits will be paid during 2013.

Alabama Facility Sublease

In January 2012, the Company began leasing the Cherokee Facility and purchased certain machinery and equipment within the facility. In the second quarter of 2013, we signed an agreement to sublease a portion of the Cherokee Facility. The term of the sublease agreement runs through the remaining term of our operating lease, which ends in 2021.

Restructuring Liability

The following tables summarize the activity in the restructuring liability, which includes amounts related to discontinued operations and excludes pension and other postretirement contractual termination benefits:

(in millions)	Balance at October 31, 2012		Additions		Payments			Adjustments			Balance at April 30, 2013
Employee termination charges	$	72	$	1	$	(44	)	$	(3	)	$	26
Employee relocation costs	—		2		(2		)	—			—
Lease vacancy	17		2		(3		)	2			18
Other	—		4		(3		)	—			1
Restructuring liability	$	89	$	9	$	(52	)	$	(1	)	$	45

(in millions)	Balance at October 31, 2011		Additions		Payments			Adjustments			Balance at April 30, 2012
Employee termination charges	$	31	$	2	$	(4	)	$	(3	)	$	26
Employee relocation costs	—		4		(4		)	—			—
Lease vacancy	—		19		(1		)	—			18
Other	8		1		(7		)	—			2
Restructuring liability	$	39	$	26	$	(16	)	$	(3	)	$	46

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Condensed Consolidating Guarantor and Non-Guarantor - Statement of Operations (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012
Sales and revenues, net	$ 2,526	$ 3,261	$ 5,163	$ 6,270
Costs of products sold	2,363	2,900	4,649	5,550
Restructuring charges	6	19	8	19
Impairment of property and equipment and intangible assets		10		10
All other operating expenses (income)	483	579	915	1,138
Total Costs and Expenses	2,852	3,508	5,572	6,717
Equity in loss of non-consolidated affiliates	4	(4)	3	(11)
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	(322)	(251)	(406)	(458)
Income tax benefit (expense)	(22)	123	(37)	199
Earnings (loss) from continuing operations	(344)	(128)	(443)	(259)
Loss from discontinued operations, net of tax	(21)	(34)	(30)	(43)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(365)	(162)	(473)	(302)
Net Income (Loss) Attributable to Noncontrolling Interest	9	10	24	23
Net income (loss) Attributable to Navistar International Corporation	(374)	(172)	(497)	(325)
Parent Company [Domain]
Sales and revenues, net	0	0	0	0
Costs of products sold	0	0	0	0
Restructuring charges	0	0	0	0
Impairment of property and equipment and intangible assets		0		0
All other operating expenses (income)	(48)	14	(27)	39
Total Costs and Expenses	(48)	14	(27)	39
Equity in loss of non-consolidated affiliates	(422)	(96)	(524)	(296)
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	(374)	(110)	(497)	(335)
Income tax benefit (expense)	0	(62)	0	10
Earnings (loss) from continuing operations	(374)	(172)	(497)	(325)
Loss from discontinued operations, net of tax	0	0	0	0
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(374)	(172)	(497)	(325)
Net Income (Loss) Attributable to Noncontrolling Interest	0	0	0	0
Net income (loss) Attributable to Navistar International Corporation	(374)	(172)	(497)	(325)
Guarantor Subsidiaries [Domain]
Sales and revenues, net	1,493	2,172	3,102	4,134
Costs of products sold	1,622	2,205	3,217	4,200
Restructuring charges	4	19	4	19
Impairment of property and equipment and intangible assets		0		0
All other operating expenses (income)	349	357	580	691
Total Costs and Expenses	1,975	2,581	3,801	4,910
Equity in loss of non-consolidated affiliates	50	271	104	366
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	(432)	(138)	(595)	(410)
Income tax benefit (expense)	(1)	(63)	(12)	14
Earnings (loss) from continuing operations	(433)	(201)	(607)	(396)
Loss from discontinued operations, net of tax	0	0	0	0
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(433)	(201)	(607)	(396)
Net Income (Loss) Attributable to Noncontrolling Interest	0	0	0	0
Net income (loss) Attributable to Navistar International Corporation	(433)	(201)	(607)	(396)
Non-Guarantor Subsidiaries [Domain]
Sales and revenues, net	2,293	2,974	4,551	5,755
Costs of products sold	1,987	2,555	3,896	4,931
Restructuring charges	2	0	4	0
Impairment of property and equipment and intangible assets		10		10
All other operating expenses (income)	125	233	317	459
Total Costs and Expenses	2,114	2,798	4,217	5,400
Equity in loss of non-consolidated affiliates	1	(6)	(1)	(13)
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	180	170	333	342
Income tax benefit (expense)	(21)	211	(25)	172
Earnings (loss) from continuing operations	159	381	308	514
Loss from discontinued operations, net of tax	(21)	(34)	(30)	(43)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	138	347	278	471
Net Income (Loss) Attributable to Noncontrolling Interest	9	10	24	23
Net income (loss) Attributable to Navistar International Corporation	129	337	254	448
Consolidation, Eliminations [Domain]
Sales and revenues, net	(1,260)	(1,885)	(2,490)	(3,619)
Costs of products sold	(1,246)	(1,860)	(2,464)	(3,581)
Restructuring charges	0	0	0	0
Impairment of property and equipment and intangible assets		0		0
All other operating expenses (income)	57	(25)	45	(51)
Total Costs and Expenses	(1,189)	(1,885)	(2,419)	(3,632)
Equity in loss of non-consolidated affiliates	375	(173)	424	(68)
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	304	(173)	353	(55)
Income tax benefit (expense)	0	37	0	3
Earnings (loss) from continuing operations	304	(136)	353	(52)
Loss from discontinued operations, net of tax	0	0	0	0
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	304	(136)	353	(52)
Net Income (Loss) Attributable to Noncontrolling Interest	0	0	0	0
Net income (loss) Attributable to Navistar International Corporation	$ 304	$ (136)	$ 353	$ (52)

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Summary of Significant Accounting Policies

6 Months Ended

Apr. 30, 2013

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Organization and Description of the Business

Navistar International Corporation ("NIC"), incorporated under the laws of the State of Delaware in 1993, is a holding company whose principal operating subsidiaries are Navistar, Inc. and Navistar Financial Corporation ("NFC"). References herein to the "Company," "we," "our," or "us" refer collectively to NIC and its consolidated subsidiaries, including certain variable interest entities ("VIEs") of which we are the primary beneficiary. Our fiscal year ends October 31. As such, all references to 2013 and 2012 contained within this Quarterly Report on Form 10-Q relate to our fiscal year, unless otherwise indicated. We operate in four principal industry segments: Truck, Engine, and Parts (collectively called "Manufacturing operations"), and Financial Services, which consists of NFC and our foreign finance operations (collectively called "Financial Services operations"). These segments are discussed in Note 13, Segment Reporting.

Basis of Presentation and Consolidation

The accompanying unaudited consolidated financial statements include the assets, liabilities, and results of operations of our manufacturing operations, which include majority-owned dealers ("Dealcors"), and our financial services operations, including VIEs of which we are the primary beneficiary. The effects of transactions among consolidated entities have been eliminated to arrive at the consolidated amounts. Certain reclassifications were made to prior periods' amounts to conform to the 2013 presentation, which includes the presentation of certain former businesses as discontinued operations. For more information, see Note 2, Discontinued Operations and Other Divestitures.

We prepared the accompanying unaudited consolidated financial statements in accordance with United States ("U.S.") generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and notes required by U.S. GAAP for comprehensive annual financial statements.

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting policies described in our Annual Report on Form 10-K for the year ended October 31, 2012 and Current Report on Form 8-K filed on March 25, 2013, all of which should be read in conjunction with the disclosures therein. In our opinion, these interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial condition, results of operations, and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of annual operating results.

Out-Of-Period Adjustments

Included in the results of operations for the three and six months ended April 30, 2013 are out-of-period adjustments, which represent corrections of prior-period errors related to the accounting for certain sales transactions. In March 2010, we entered into an operating agreement with GE Capital Corporation and GE Capital Commercial, Inc. (collectively “GE”). Under the terms of the agreement, GE became our preferred source of retail customer financing for equipment offered by us and our dealers in the U.S. We provide GE a loss sharing arrangement for certain credit losses. The determination was made that certain sales that were ultimately financed by GE did not qualify for revenue recognition, as we retained substantial risks of ownership in the leased property. As a result, the transactions should have been accounted for as borrowings, resulting in the proceeds from the transfer being recorded as an obligation and amortized to revenue over the term of the financing. In addition, the financed equipment should have been transferred from inventory to equipment leased to others and depreciated over the term of the financing.

Correcting the errors, which were not material to any of the prior periods, resulted in a $9 million and $8 million increase to Net loss in our Consolidated Statements of Operations for the three and six months ended April 30, 2013, respectively. The impact of the correction on our results for the three months ended April 30, 2013 related to prior periods includes: (i) a $124 million net decrease to Sales of manufactured products, net, (ii) a $126 million net decrease to Costs of products sold, including $46 million of additional depreciation expense, and (iii) an $11 million increase to Interest expense. The impact of the correction on our results for the six months ended April 30, 2013 related to prior periods includes: (i) a $113 million net decrease to Sales of manufactured products, net, (ii) a $113 million net decrease to Costs of products sold, including $37 million of additional depreciation expense, and (iii) an $8 million increase to Interest expense. In addition, in our Condensed Consolidated Statements of Cash Flows we recognized Purchases of equipment leased to others of $184 million and Proceeds from financed lease obligations of $201 million related to periods prior to fiscal 2013. The impact of the corrections was not material to any of our Consolidated Balance Sheets.

Variable Interest Entities

We have an interest in several VIEs, primarily joint ventures, established to manufacture or distribute products and enhance our operational capabilities. We have determined for certain of our VIEs that we are the primary beneficiary because we have the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and have the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Accordingly, we include in our consolidated financial statements the assets and liabilities and results of operations of those entities, even though we may not own a majority voting interest. The liabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets; rather they represent claims against the specific assets of these VIEs. Assets of these entities are not readily available to satisfy claims against our general assets.

We are the primary beneficiary of our Blue Diamond Parts ("BDP") and Blue Diamond Truck ("BDT") joint ventures with Ford Motor Company ("Ford"). As a result, our Consolidated Balance Sheets include assets of $266 million and $246 million and liabilities of $165 million and $109 million as of April 30, 2013 and October 31, 2012, respectively, from BDP and BDT, including $34 million and $26 million of cash and cash equivalents, at the respective dates, which are not readily available to satisfy claims against our general assets. The creditors of BDP and BDT do not have recourse to our general credit. In December 2011, Ford notified the Company of its intention to dissolve the BDT joint venture effective December 2014. We do not expect the dissolution of the BDT joint venture to have a material impact on our consolidated financial statements.

Our Financial Services segment consolidates several VIEs. As a result, our Consolidated Balance Sheets include assets of $1.0 billion and $1.1 billion and liabilities of $773 million and $914 million as of April 30, 2013 and October 31, 2012, respectively, all of which are involved in securitizations that are treated as borrowings. In addition, our Consolidated Balance Sheets include assets of $317 million and $359 million and related liabilities of $96 million and $157 million as of April 30, 2013 and October 31, 2012, respectively, all of which are involved in transactions that do not qualify for sale accounting treatment, and therefore, are treated as borrowings. Investors that hold securitization debt have a priority claim on the cash flows generated by their respective securitized assets to the extent that the related trusts are entitled to make principal and interest payments. Investors in securitizations of these entities have no recourse to our general credit.

We also have an interest in other VIEs, which we do not consolidate because we are not the primary beneficiary. Our financial support and maximum loss exposure relating to these non-consolidated VIEs are not material to our financial condition, results of operations, or cash flows.

We use the equity method to account for our investments in entities that we do not control under the voting interest or variable interest models, but where we have the ability to exercise significant influence over operating and financial policies. Equity in loss of non-consolidated affiliates includes our share of the net income (loss) of these entities.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the periods presented. Significant estimates and assumptions are used for, but are not limited to, pension and other postretirement benefits, allowance for doubtful accounts, income tax contingency accruals and valuation allowances, product warranty accruals, asbestos and other product liability accruals, asset impairment charges, and litigation-related accruals. Actual results could differ from our estimates.

Concentration Risks

Our financial condition, results of operations, and cash flows are subject to concentration risks related to concentrations of our union employees. As of April 30, 2013, approximately 4,600, or 51%, of our hourly workers and approximately 400, or 5%, of our salaried workers are represented by labor unions and are covered by collective bargaining agreements. Our future operations may be affected by changes in governmental procurement policies, budget considerations, changing national defense requirements, and global, political, regulatory and economic developments in the U.S. and certain foreign countries (primarily Canada, Mexico, and Brazil).

Product Warranty Liability

The following table presents accrued product warranty and deferred warranty revenue activity:

	Six Months Ended April 30,
(in millions)	2013			2012
Balance at beginning of period	$	1,118		$	598
Costs accrued and revenues deferred	226			236
Adjustments to pre-existing warranties(A)(B)	204			227
Payments and revenues recognized	(327		)	(217		)
Balance at end of period	1,221			844
Less: Current portion	647			365
Noncurrent accrued product warranty and deferred warranty revenue	$	574		$	479

_________________________

(A) Adjustments to pre-existing warranties reflect changes in our estimate of warranty costs for products sold in prior periods. Such adjustments typically occur when claims experience deviates from historic and expected trends. Our warranty liability is generally affected by component failure rates, repair costs, and the timing of failures. Future events and circumstances related to these factors could materially change our estimates and require adjustments to our liability. In addition, new product launches require a greater use of judgment in developing estimates until historical experience becomes available.

Inthe first quarter of 2013, we recorded adjustments for changes in estimates of $40 million, or $0.50 per diluted share. Inthe second quarter of 2013, we recorded adjustments for changes in estimates of $164 million, or $2.04 per diluted share. The impact of income taxes on the 2013 adjustments are not material due to our deferred tax valuation allowances on our U.S. deferred tax assets.

In the first quarter of 2012, adjustments for changes in estimates amounted to $123 million, $119 million net of tax or $1.70 per diluted share. In the second quarter of 2012, we recorded adjustments for changes in estimates of $104 million, $100 million net of tax or $1.46. The impact of income taxes on the 2012 adjustments reflect the Company's 2012 estimated annual effective tax rate as of April 30, 2012.

(B) In the first quarter of 2013, we recognized $13 million of charges for adjustments to pre-existing warranties for a specific warranty issue related to component parts from a supplier. Also during the quarter, we reached agreement for reimbursement from this supplier for this amount and other costs previously accrued. As a result of this agreement, we recognized a recovery of $27 million within Costs of products sold and recorded a receivable within Other current assets. In the second quarter of 2013, we recognized a warranty recovery of $13 million within Loss from discontinued operations, net of tax and recorded a receivable within Other current assets.

The amount of deferred revenue related to extended warranty programs was $405 million and $364 million at April 30, 2013 and October 31, 2012, respectively. Revenue recognized under our extended warranty programs was $11 million and $40 million for the three and six months ended April 30, 2013, respectively, and $16 million and $31 million for the three and six months ended April 30, 2012, respectively. In the second quarters of 2013 and 2012, the Truck segment recognized charges of $33 million and $24 million, respectively, related to the extended warranty contracts on our 2010 emission standard MaxxForce Big-Bore engines. The majority of these changes are included in the adjustments to pre-existing warranties.

Recently Issued and Adopted Accounting Standards

There are no recently issued accounting standards for which the Company expects a material impact on our consolidated financial statements. In addition, for the six months ended April 30, 2013, the Company has not adopted any new accounting guidance that has had a material impact on our consolidated financial statements.

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Summary of Significant Accounting Policies - Product Warranty Liability (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended					6 Months Ended
	Apr. 30, 2013		Jan. 31, 2013	Apr. 30, 2012	Jan. 31, 2012	Apr. 30, 2013		Apr. 30, 2012		Oct. 31, 2012	Oct. 31, 2011
Product Liability Contingency [Line Items]
Product Warranty Accrual, Preexisting Increase Decrease Per Share, Net of Tax	$ 2.04		$ 0.50	$ 1.46	$ 1.70
Warranty Recoveries	$ 13		$ 27
Accrued Product Warranty And Deferred Warranty Revenue, Standard And Extended Warranty Programs, Roll Forward:
Accrued product warranty and deferred warranty revenue at beginning of period	1,221			844		1,221		844		1,118	598
Cost accrued and revenues deferred						226	[1]	236	[1]
Adjustments to pre-existing warranties						204	[2]	227	[2]
Payments and revenues recognized						(327)		(217)
Accrued product warranty and deferred warranty revenue at end of period	1,221			844		1,221		844		1,118	598
Less: Current portion	647			365		647		365
Noncurrent accrued product warranty and deferred warranty revenue	574			479		574		479
Product Warranty Accrual, Preexisting Increase (Decrease), net of tax				100	119
Extended Warranty Program:
Revenue extended warranty service contracts	33			24
Extended Warranty Programs [Member]
Extended Warranty Program:
Deferred Revenue	405					405				364
Revenue recognized under extended warranty programs	11			16		40		31
Product Warranty Accrual [Member]
Accrued Product Warranty And Deferred Warranty Revenue, Standard And Extended Warranty Programs, Roll Forward:
Adjustments to pre-existing warranties	164	[2]	40	104	123
Recoverable [Member]
Accrued Product Warranty And Deferred Warranty Revenue, Standard And Extended Warranty Programs, Roll Forward:
Adjustments to pre-existing warranties			$ 13

[1] .

[2] (B)In the first quarter of 2013, we recognized $13 million of charges for adjustments to pre-existing warranties for a specific warranty issue related to component parts from a supplier. Also during the quarter, we reached agreement for reimbursement from this supplier for this amount and other costs previously accrued. As a result of this agreement, we recognized a recovery of $27 million within Costs of products sold and recorded a receivable within Other current assets. In the second quarter of 2013, we recognized a warranty recovery of $13 million within Loss from discontinued operations, net of tax and recorded a receivable within Other current assets.

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Restructuring and Impairments (Tables)

6 Months Ended

Apr. 30, 2013

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Reserve by Type of Cost [Table Text Block]

The following tables summarize the activity in the restructuring liability, which includes amounts related to discontinued operations and excludes pension and other postretirement contractual termination benefits:

(in millions)	Balance at October 31, 2012		Additions		Payments			Adjustments			Balance at April 30, 2013
Employee termination charges	$	72	$	1	$	(44	)	$	(3	)	$	26
Employee relocation costs	—		2		(2		)	—			—
Lease vacancy	17		2		(3		)	2			18
Other	—		4		(3		)	—			1
Restructuring liability	$	89	$	9	$	(52	)	$	(1	)	$	45

(in millions)	Balance at October 31, 2011		Additions		Payments			Adjustments			Balance at April 30, 2012
Employee termination charges	$	31	$	2	$	(4	)	$	(3	)	$	26
Employee relocation costs	—		4		(4		)	—			—
Lease vacancy	—		19		(1		)	—			18
Other	8		1		(7		)	—			2
Restructuring liability	$	39	$	26	$	(16	)	$	(3	)	$	46

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Debt (Tables)

6 Months Ended

Apr. 30, 2013

Debt Disclosure [Abstract]

Debt

(in millions)	April 30, 2013		October 31, 2012
Manufacturing operations:
Senior Secured Term Loan Credit Facility, as Amended, due 2017, net of unamortized discount of $5 and $9, respectively	$	693	$	991
8.25% Senior Notes, due 2021, net of unamortized discount of $23 and $28, respectively	1,177		872
3.0% Senior Subordinated Convertible Notes, due 2014, net of unamortized discount of $38 and $50, respectively	532		520
Debt of majority-owned dealerships	43		60
Financing arrangements and capital lease obligations	87		140
Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040	225		225
Promissory Note	25		30
Financed lease obligations	209		—
Other	59		67
Total manufacturing operations debt	3,050		2,905
Less: Current portion	122		172
Net long-term manufacturing operations debt	$	2,928	$	2,733

(in millions)	April 30, 2013		October 31, 2012
Financial Services operations:
Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2019	$	805	$	994
Bank revolvers, at fixed and variable rates, due dates from 2013 through 2019	861		763
Commercial paper, at variable rates, matured in 2013	—		31
Borrowings secured by operating and finance leases, at various rates, due serially through 2017	65		78
Total financial services operations debt	1,731		1,866
Less: Current portion	657		1,033
Net long-term financial services operations debt	$	1,074	$	833

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Loss Per Share Attributable to Navistar International Corporation - Narrative (Details) (USD $) Share data in Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	30.0	28.0	29.0	28.0
Shares related to warrants	11.3	11.3	11.3	11.3
Shares related to convertible notes	11.3	11.3	11.3	11.3
Convertible Debt Securities [Domain]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Debt Instrument, Convertible, Conversion Ratio			19.891
Debt Instrument Convertible Conversion Ratio Basis			1,000
Debt Instrument, Convertible, Conversion Price	50.27		50.27
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount			11.3
Warrant [Domain]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Investment Warrants, Exercise Price			60.14

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Loss Per Share Attributable to Navistar International Corporation (Tables)

6 Months Ended

Apr. 30, 2013

Earnings Per Share [Abstract]

Schedule of Earnings Per Share Reconciliation [Table Text Block]

The following table presents the information used in the calculation of our basic and diluted loss per share for continuing operations, discontinued operations, and net loss, all attributable to Navistar International Corporation:

	Three Months Ended April 30,						Six Months Ended April 30,
(in millions, except per share data)	2013			2012			2013			2012
Numerator:
Amounts attributable to Navistar International Corporation common stockholders:
Loss from continuing operations, net of tax	$	(353	)	$	(138	)	$	(467	)	$	(282	)
Loss from discontinued operations, net of tax	(21		)	(34		)	(30		)	(43		)
Net loss	$	(374	)	$	(172	)	$	(497	)	$	(325	)
Denominator:
Weighted average shares outstanding:
Basic	80.4			68.7			80.3			69.3
Effect of dilutive securities	—			—			—			—
Diluted	80.4			68.7			80.3			69.3
Loss per share amount attributable to Navistar International Corporation:
Basic:
Continuing operations	$	(4.39	)	$	(2.01	)	$	(5.82	)	$	(4.07	)
Discontinued operations	(0.26		)	(0.49		)	(0.37		)	(0.62		)
Net loss	$	(4.65	)	$	(2.50	)	$	(6.19	)	$	(4.69	)
Diluted:
Continuing operations	$	(4.39	)	$	(2.01	)	$	(5.82	)	$	(4.07	)
Discontinued operations	(0.26		)	(0.49		)	(0.37		)	(0.62		)
Net loss	$	(4.65	)	$	(2.50	)	$	(6.19	)	$	(4.69	)

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Stockholders' Deficit (Details) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended		1 Months Ended					1 Months Ended		1 Months Ended			3 Months Ended
	Jan. 31, 2013	Oct. 31, 2012	Apr. 30, 2013	Apr. 30, 2012	Sep. 30, 2011 Maximum [Member]	Nov. 30, 2011 Accelerated Share Repurchases Program [Member]	Oct. 31, 2011 Accelerated Share Repurchases Program [Member]	Oct. 31, 2011 October 2011 [Member]	Jan. 31, 2012 October 2011 [Member]	Oct. 31, 2011 October 2011 [Member] Accelerated Share Repurchases Program [Member]	Jan. 31, 2012 November 2011 [Member]	Nov. 30, 2011 November 2011 [Member] Accelerated Share Repurchases Program [Member]	Jan. 31, 2012 Open Market Share Repurchase Program [Member]	Oct. 31, 2011 Open Market Share Repurchase Program [Member]	Apr. 30, 2012 Open Market Share Repurchase Program [Member]	Jan. 31, 2012 Open Market Share Repurchase Program [Member]	Jan. 31, 2013 Common Stock [Member]	Oct. 31, 2012 Common Stock [Member]
Class of Stock [Line Items]
Stock Issued During Period, Shares, New Issues																	763,534	10,666,666
Price per share (in dollars per share)																	$ 18.75	$ 18.75
Proceeds from Issuance of Common Stock	$ 14	$ 192	$ 14	$ 0
Stock Repurchase Program, Authorized Amount					175		100							75
Treasury Stock, Shares, Acquired						2,542,609				2,380,952			1,905,600
Payments for Repurchase of Common Stock			0	75											5	70
Accelerated Share Repurchases, Settlement Payment or Receipt									80		20
Accelerated Share Repurchases, Initial Price Paid Per Share								$ 33.60
Stock Repurchase Program, Remaining Authorized Repurchase Amount							$ 20
Treasury Stock, Additional Shares Acquired												161,657

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Postretirement Benefits - Defined Benefit Plan (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012
Pension Plans, Defined Benefit [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Contributions by Employer	$ 30	$ 53	$ 57	$ 82
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year	109		109
Early Retiree Reinsurance Program [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Contributions by Plan Participants	$ 0	$ 0	$ 0	$ 3

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Allowance for Doubtful Accounts - Aging Analysis (Details) (USD $) In Millions, unless otherwise specified	Apr. 30, 2013	Oct. 31, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
Finance Receivables, Current	$ 2,065	$ 2,091
30-90 days past due	40	73
Over 90 days past due	11	12
Total finance receivables	2,116	2,176
Retail Portfolio [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Finance Receivables, Current	923	965
30-90 days past due	36	72
Over 90 days past due	9	11
Total finance receivables	968	1,048
Wholesale Portfolio [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Finance Receivables, Current	1,142	1,126
30-90 days past due	4	1
Over 90 days past due	2	1
Total finance receivables	$ 1,148	$ 1,128

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Finance Receivables - Finance Receivables (Details) (USD $)	6 Months Ended
	Apr. 30, 2013 segments		Oct. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable By Class Number of Portfolio Segments	2
Loans and Leases Receivable, Net Amount	$ 2,100,000,000
Loans and Leases Receivable, Gross, Carrying Amount, Covered	2,116,000,000		2,176,000,000
Less: Allowance for Doubtful accounts	24,000,000		27,000,000
Total finance receivables, net	2,092,000,000		2,149,000,000
Finance Receivables, net	1,664,000,000	[1]	1,663,000,000	[1]
Noncurrent portion, net	428,000,000		486,000,000
Retail Portfolio [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount, Covered	968,000,000		1,048,000,000
Wholesale Portfolio [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount, Covered	1,148,000,000		1,128,000,000
Financial Services Operations [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Assets Net Of Intercompany Balances	$ 2,500,000,000		$ 2,600,000,000

[1] The current portion of finance receivables is computed based on contractual maturities. Actual cash collections typically vary from the contractual cash flows because of prepayments, extensions, delinquencies, credit losses, and renewals.

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Consolidated Statements of Comprehensive Income (Loss) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012
Net loss attributable to Navistar International Corporation	$ (374)	$ (172)	$ (497)	$ (325)
Other comprehensive income (loss):
Foreign currency translation adjustment	3	(65)	20	(78)
Defined benefit plans (net of tax of $(1), $12, $(1), and $24 respectively)	40	17	78	40
Total other comprehensive income (loss)	43	(48)	98	(38)
Total comprehensive income (loss) attributable to Navistar International Corporation	$ (331)	$ (220)	$ (399)	$ (363)

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Inventories

6 Months Ended

Apr. 30, 2013

Inventory Disclosure [Abstract]

Inventories

Inventories

The following table presents the components of Inventories:

(in millions)	April 30, 2013		October 31, 2012
Finished products	$	852	$	833
Work in process	111		136
Raw materials	513		568
Total inventories	$	1,476	$	1,537

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Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Apr. 30, 2013		Oct. 31, 2012
Current assets
Cash and cash equivalents	$ 505		$ 1,087
Restricted cash and cash equivalents	1		0
Marketable Securities	733		466
Trade and other receivables, net	839		749
Finance Receivables, net	1,664	[1]	1,663	[1]
Inventories	1,476		1,537
Deferred Taxes, Net	75		74
Other current assets	276		261
Total current assets	5,569		5,837
Restricted cash	116		161
Trade and other receivables, net	36		94
Finance receivables, net	428		486
Investments in non-consolidated affiliates	52		62
Property and equipment (net of accumulated depreciation and amortization of $2,386 and $2,228)	1,776		1,660
Goodwill	275		280
Intangible assets (net of accumulated amortization of $89 and $78)	157		171
Deferred taxes, net	181		189
Other noncurrent assets	133		162
Total Assets	8,723		9,102
Current liabilities
Notes payable and current maturities of long-term debt	779		1,205
Accounts payable	1,621		1,686
Other current liabilities	1,607		1,462
Total current liabilities	4,007		4,353
Long-term Debt	4,002		3,566
Postretirement benefits liabilities	3,331		3,405
Deferred taxes, net	41		42
Other noncurrent liabilities	980		996
Total liabilities	12,361		12,362
Redeemable equity securities	4		5
Stockholders’ equity (deficit)
Series D convertible junior preference stock	3		3
Common stock (86.8 and 86.0 shares issued, respectively; and $.10 par value per share and 220.0 shares authorized at both dates)	9		9
Additional paid in capital	2,456		2,440
Accumulated deficit	(3,662)		(3,165)
Accumulated Other Comprehensive Income (loss)	(2,227)		(2,325)
Common stock held in treasury, at cost (6.4 and 6.8 shares, at the respective dates)	(256)		(272)
Total stockholders' deficit attributable to Navistar International Corporation	(3,677)		(3,310)
Stockholders' Equity Attributable to Noncontrolling Interest	35		45
Total stockholders’ equity (deficit)	(3,642)		(3,265)
Total liabilities and stockholders' equity (deficit)	$ 8,723		$ 9,102

[1] The current portion of finance receivables is computed based on contractual maturities. Actual cash collections typically vary from the contractual cash flows because of prepayments, extensions, delinquencies, credit losses, and renewals.

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Income Taxes - Income Tax (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013
Income Taxes [Line Items]
Valuation Allowance, Deferred Tax Asset, Change in Amount		$ (181)
Income Taxes Percent Likelihood Of Being Realized Upon Settlement	50.00%		50.00%
Unrecognized Tax Benefits	84		84
Unrecognized Tax Benefits that Would Not Impact Effective Tax Rate	78		78
Tax Adjustments, Settlements, and Unusual Provisions	$ 2		$ 6
Liability for Uncertain Tax Benefits Time Range			12 months

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Consolidated Statements of Operations (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012
Sales and revenues
Sales of manufactured products, net	$ 2,487	$ 3,218	$ 5,085	$ 6,183
Finance Revenues	39	43	78	87
Sales and revenues, net	2,526	3,261	5,163	6,270
Costs and expenses
Costs of products sold	2,363	2,900	4,649	5,550
Restructuring charges	6	19	8	19
Impairment of intangible assets	0	10	0	10
Selling, general and administrative expenses	312	372	597	727
Engineering and product development costs	100	132	211	267
Interest expense	90	62	164	123
Other expense (income), net	(19)	13	(57)	21
Total Costs and Expenses	2,852	3,508	5,572	6,717
Equity in income (loss) of non-consolidated affiliates	4	(4)	3	(11)
Loss from continuing operations before income taxes	(322)	(251)	(406)	(458)
Income tax benefit (expense)	(22)	123	(37)	199
Loss from continuing operations	(344)	(128)	(443)	(259)
Loss from discontinued operations, net of tax	(21)	(34)	(30)	(43)
Net loss	(365)	(162)	(473)	(302)
Less: Net income attributable to non-controlling interests	9	10	24	23
Net loss attributable to Navistar International Corporation	(374)	(172)	(497)	(325)
Loss from continuing operations, net of tax	(353)	(138)	(467)	(282)
Loss from discontinued operations, net of tax	$ (21)	$ (34)	$ (30)	$ (43)
Earnings (loss) per share attributable to Navistar International Corporation:
Basic: Loss from Continuing Operations (in dollars per share)	$ (4.39)	$ (2.01)	$ (5.82)	$ (4.07)
Basic: Loss from Discontinued Operations (in dollars per share)	$ (0.26)	$ (0.49)	$ (0.37)	$ (0.62)
Basic (in dollars per share)	$ (4.65)	$ (2.50)	$ (6.19)	$ (4.69)
Diluted: Loss from Continuing Operations (in dollars per share)	$ (4.39)	$ (2.01)	$ (5.82)	$ (4.07)
Diluted: Loss from Discontinued Operations (in dollars per share)	$ (0.26)	$ (0.49)	$ (0.37)	$ (0.62)
Diluted (in dollars per share)	$ (4.65)	$ (2.50)	$ (6.19)	$ (4.69)
Weighted average shares outstanding:
Basic (in shares)	80.4	68.7	80.3	69.3
Diluted (in shares)	80.4	68.7	80.3	69.3

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Inventories - Inventory (Details) (USD $) In Millions, unless otherwise specified	Apr. 30, 2013	Oct. 31, 2012
Inventory Disclosure [Abstract]
Finished products	$ 852	$ 833
Work in process	111	136
Raw materials	513	568
Total inventories	$ 1,476	$ 1,537

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Condensed Consolidating Guarantor and Non-Guarantor - Balance Sheet (Details) (USD $) In Millions, unless otherwise specified	Apr. 30, 2013	Oct. 31, 2012
Cash and Cash Equivalents, at Carrying Value	$ 505	$ 1,087
Marketable Securities	733	466
Restricted Cash	117	161
Finance and other receivables, net	2,967	2,992
Inventories	1,476	1,537
Investments in non-consolidated affiliates	52	62
Property and equipment, net	1,776	1,660
Goodwill	275	280
Deferred Taxes Net	256	263
Intangible Assets Net And Other Assets	566	594
Total Assets	8,723	9,102
Debt	4,781	4,771
Postretirement Benefits Liabilities	3,424	3,511
Amounts due to (from) affiliates	0	0
Other Liabilities	4,156	4,080
Total liabilities	12,361	12,362
Redeemable equity securities	4	5
Stockholders' Equity Attributable to Noncontrolling Interest	35	45
Stockholders' Equity (deficit) Attributable to Navistar International Corporation	(3,677)	(3,310)
Total liabilities and stockholders' equity (deficit)	8,723	9,102
Parent Company [Domain]
Cash and Cash Equivalents, at Carrying Value	218	702
Marketable Securities	501	314
Restricted Cash	25	24
Finance and other receivables, net	8	5
Inventories	0	0
Investments in non-consolidated affiliates	(5,971)	(5,616)
Property and equipment, net	0	0
Goodwill	0	0
Deferred Taxes Net	9	9
Intangible Assets Net And Other Assets	51	83
Total Assets	(5,159)	(4,479)
Debt	1,934	1,617
Postretirement Benefits Liabilities	0	0
Amounts due to (from) affiliates	(6,511)	(5,863)
Other Liabilities	3,090	3,072
Total liabilities	(1,487)	(1,174)
Redeemable equity securities	4	5
Stockholders' Equity Attributable to Noncontrolling Interest	0	0
Stockholders' Equity (deficit) Attributable to Navistar International Corporation	(3,676)	(3,310)
Total liabilities and stockholders' equity (deficit)	(5,159)	(4,479)
Guarantor Subsidiaries [Domain]
Cash and Cash Equivalents, at Carrying Value	36	55
Marketable Securities	0	0
Restricted Cash	7	8
Finance and other receivables, net	165	128
Inventories	725	691
Investments in non-consolidated affiliates	6,556	6,454
Property and equipment, net	930	790
Goodwill	66	0
Deferred Taxes Net	10	11
Intangible Assets Net And Other Assets	180	177
Total Assets	8,675	8,314
Debt	1,012	1,162
Postretirement Benefits Liabilities	3,073	3,144
Amounts due to (from) affiliates	10,396	9,522
Other Liabilities	516	337
Total liabilities	14,997	14,165
Redeemable equity securities	0	0
Stockholders' Equity Attributable to Noncontrolling Interest	0	0
Stockholders' Equity (deficit) Attributable to Navistar International Corporation	(6,322)	(5,851)
Total liabilities and stockholders' equity (deficit)	8,675	8,314
Non-Guarantor Subsidiaries [Domain]
Cash and Cash Equivalents, at Carrying Value	251	330
Marketable Securities	232	152
Restricted Cash	85	129
Finance and other receivables, net	2,806	2,859
Inventories	784	885
Investments in non-consolidated affiliates	43	54
Property and equipment, net	849	874
Goodwill	209	280
Deferred Taxes Net	237	243
Intangible Assets Net And Other Assets	337	335
Total Assets	5,833	6,141
Debt	1,843	1,997
Postretirement Benefits Liabilities	351	367
Amounts due to (from) affiliates	(3,958)	(3,743)
Other Liabilities	624	748
Total liabilities	(1,140)	(631)
Redeemable equity securities	0	0
Stockholders' Equity Attributable to Noncontrolling Interest	35	45
Stockholders' Equity (deficit) Attributable to Navistar International Corporation	6,938	6,727
Total liabilities and stockholders' equity (deficit)	5,833	6,141
Consolidation, Eliminations [Domain]
Cash and Cash Equivalents, at Carrying Value	0	0
Marketable Securities	0	0
Restricted Cash	0	0
Finance and other receivables, net	(12)	0
Inventories	(33)	(39)
Investments in non-consolidated affiliates	(576)	(830)
Property and equipment, net	(3)	(4)
Goodwill	0	0
Deferred Taxes Net	0	0
Intangible Assets Net And Other Assets	(2)	(1)
Total Assets	(626)	(874)
Debt	(8)	(5)
Postretirement Benefits Liabilities	0	0
Amounts due to (from) affiliates	73	84
Other Liabilities	(74)	(77)
Total liabilities	(9)	2
Redeemable equity securities	0	0
Stockholders' Equity Attributable to Noncontrolling Interest	0	0
Stockholders' Equity (deficit) Attributable to Navistar International Corporation	(617)	(876)
Total liabilities and stockholders' equity (deficit)	$ (626)	$ (874)

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Finance Receivables (Tables)

6 Months Ended

Apr. 30, 2013

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Our Finance receivables, net, consist of the following:

(in millions)	April 30, 2013		October 31, 2012
Retail portfolio	$	968	$	1,048
Wholesale portfolio	1,148		1,128
Total finance receivables	2,116		2,176
Less: Allowance for doubtful accounts	24		27
Total finance receivables, net	2,092		2,149
Less: Current portion, net(A)	1,664		1,663
Noncurrent portion, net	$	428	$	486

_________________________

(A) The current portion of finance receivables is computed based on contractual maturities. Actual cash collections typically vary from the contractual cash flows because of prepayments, extensions, delinquencies, credit losses, and renewals.

Finance Revenues Derived From Receivables [Table Text Block]

The following table presents the components of our Finance revenues, net:

	Three Months Ended April 30,						Six Months Ended April 30,
(in millions)	2013			2012			2013			2012
Retail notes and finance leases revenue	$	20		$	26		$	41		$	52
Wholesale notes interest	19			22			39			45
Operating lease revenue	12			11			24			20
Retail and wholesale accounts interest	7			8			13			18
Gross finance revenues	58			67			117			135
Less: Intercompany revenues	(19		)	(24		)	(39		)	(48		)
Finance revenues	$	39		$	43		$	78		$	87

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Loss Per Share Attributable to Navistar International Corporation

6 Months Ended

Apr. 30, 2013

Earnings Per Share [Abstract]

Loss Per Share Attributable to Navistar International Corporation

Loss Per Share Attributable to Navistar International Corporation

The following table presents the information used in the calculation of our basic and diluted loss per share for continuing operations, discontinued operations, and net loss, all attributable to Navistar International Corporation:

	Three Months Ended April 30,						Six Months Ended April 30,
(in millions, except per share data)	2013			2012			2013			2012
Numerator:
Amounts attributable to Navistar International Corporation common stockholders:
Loss from continuing operations, net of tax	$	(353	)	$	(138	)	$	(467	)	$	(282	)
Loss from discontinued operations, net of tax	(21		)	(34		)	(30		)	(43		)
Net loss	$	(374	)	$	(172	)	$	(497	)	$	(325	)
Denominator:
Weighted average shares outstanding:
Basic	80.4			68.7			80.3			69.3
Effect of dilutive securities	—			—			—			—
Diluted	80.4			68.7			80.3			69.3
Loss per share amount attributable to Navistar International Corporation:
Basic:
Continuing operations	$	(4.39	)	$	(2.01	)	$	(5.82	)	$	(4.07	)
Discontinued operations	(0.26		)	(0.49		)	(0.37		)	(0.62		)
Net loss	$	(4.65	)	$	(2.50	)	$	(6.19	)	$	(4.69	)
Diluted:
Continuing operations	$	(4.39	)	$	(2.01	)	$	(5.82	)	$	(4.07	)
Discontinued operations	(0.26		)	(0.49		)	(0.37		)	(0.62		)
Net loss	$	(4.65	)	$	(2.50	)	$	(6.19	)	$	(4.69	)

The conversion rate on our 3% Senior Subordinated Convertible Notes, due in 2014 (the "Convertible Notes") is 19.891 shares of common stock per $1,000 principal amount of Convertible Notes, equivalent to an initial conversion price of $50.27 per share of common stock. In connection with the sale of the Convertible Notes, we sold warrants to various counterparties to purchase shares of our common stock from us at an exercise price of $60.14 per share. The Convertible Notes and warrants are anti-dilutive when calculating diluted earnings per share when our average stock price is less than $50.27 and $60.14, respectively.

We also purchased call options in connection with the sale of the Convertible Notes, covering 11.3 million shares at an exercise price of $50.27 per share, which are intended to minimize share dilution associated with the Convertible Notes; however under accounting guidance, these call options cannot be utilized to offset the dilution of the Convertible Notes for determining diluted earnings per share as they are anti-dilutive.

The computation of diluted earnings per share also excludes outstanding options and other common stock equivalents in periods where inclusion of such potential common stock instruments would be anti-dilutive.

For the three and six months ended April 30, 2013 and 2012, no dilutive securities were included in the computation of diluted loss per share since they would have been anti-dilutive due to the net loss attributable to Navistar International Corporation. Additionally, certain securities would have been excluded from the computation of earnings per share, as our average stock price was less than their respective exercise prices. For the three and six months ended April 30, 2013 the aggregate shares not included were 30.0 million and 29.0 million, respectively. In 2012, the aggregate shares not included were 28.0 million in both periods. In both the three and six months ended April 30, 2013 and 2012, the aggregate shares not included from the computation of earnings per share were primarily comprised of 11.3 million shares related to the warrants and 11.3 million shares related to the Convertible Notes.

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Restructuring and Impairments - Restructuring Liability (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012
Restructuring Cost and Reserve [Line Items]
Restructuring liability at beginning of year	$ 89	$ 39
Additions	9	26
Payments	(52)	(16)
Adjustments	(1)	(3)
Restructuring liability at end of year	45	46
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring liability at beginning of year	72	31
Additions	1	2
Payments	(44)	(4)
Adjustments	(3)	(3)
Restructuring liability at end of year	26	26
Employee Relocation [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring liability at beginning of year	0	0
Additions	2	4
Payments	(2)	(4)
Adjustments	0	0
Restructuring liability at end of year	0	0
Lease Vacancy [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring liability at beginning of year	17	0
Additions	2	19
Payments	(3)	(1)
Adjustments	2	0
Restructuring liability at end of year	18	18
Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring liability at beginning of year	0	8
Additions	4	1
Payments	(3)	(7)
Adjustments	0	0
Restructuring liability at end of year	$ 1	$ 2

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Condensed Consolidating Guarantor and Non-Guarantor - Guarantor and Non-Guarantor Parenthetical (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax Portion Attributable to Parent	$ (1)	$ 12	$ (1)	$ 24
Parent Company [Domain]
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax Portion Attributable to Parent	(1)	12	(1)	24
Guarantor Subsidiaries [Domain]
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax Portion Attributable to Parent	0	12	0	23
Non-Guarantor Subsidiaries [Domain]
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax Portion Attributable to Parent	(1)	0	(1)	1
Consolidation, Eliminations [Domain]
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax Portion Attributable to Parent	$ 1	$ (12)	$ 1	$ (24)

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Debt - Narrative (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended				3 Months Ended												0 Months Ended		3 Months Ended	12 Months Ended		12 Months Ended
	Apr. 30, 2013	Apr. 30, 2013	Apr. 30, 2013 Manufacturing Operations [Member] Line of Credit [Member]	Oct. 31, 2012 Manufacturing Operations [Member] Line of Credit [Member]	Aug. 31, 2012 Manufacturing Operations [Member] Line of Credit [Member]	Apr. 30, 2013 Manufacturing Operations [Member] Notes Payable to Banks [Member]	Oct. 31, 2012 Manufacturing Operations [Member] Notes Payable to Banks [Member]	Oct. 31, 2009 Manufacturing Operations [Member] Notes Payable to Banks [Member]	Oct. 31, 2012 Manufacturing Operations [Member] Asset-Based Credit Facility [Member]	Aug. 31, 2012 Manufacturing Operations [Member] Asset-Based Credit Facility [Member]	Apr. 30, 2013 Manufacturing Operations [Member] Financed lease obligations [Member]	Oct. 31, 2012 Manufacturing Operations [Member] Financed lease obligations [Member]	Apr. 30, 2013 Financial Services Operations [Member]	Apr. 30, 2013 Financial Services Operations [Member] VFN Facility [Member]	Oct. 31, 2012 Financial Services Operations [Member] VFN Facility [Member]	Apr. 30, 2013 Financial Services Operations [Member] Line of Credit [Member]	Oct. 31, 2012 Financial Services Operations [Member] Line of Credit [Member]	Nov. 02, 2011 Debt Instrument, Redemption, Scenario Two [Member] Manufacturing Operations [Member] Notes Payable to Banks [Member]	Nov. 03, 2011 Debt Instrument, Redemption, Scenario Two [Member] Manufacturing Operations [Member] Notes Payable to Banks [Member]	Jan. 31, 2012 Debt Instrument, Redemption, Scenario Two [Member] Manufacturing Operations [Member] Notes Payable to Banks [Member]	Oct. 31, 2012 Debt Instrument, Redemption, Scenario Two [Member] Manufacturing Operations [Member] Notes Payable to Banks [Member]	Oct. 31, 2012 Debt Instrument, Redemption, Scenario Two [Member] Maximum [Member] Manufacturing Operations [Member] Notes Payable to Banks [Member]	Oct. 31, 2012 Debt Instrument, Redemption, Scenario Three [Member] Manufacturing Operations [Member] Notes Payable to Banks [Member]	Oct. 31, 2012 Debt Instrument, Redemption, Period Two [Member] Debt Instrument, Redemption, Scenario One [Member] Manufacturing Operations [Member] Notes Payable to Banks [Member]	Oct. 31, 2012 Debt Instrument, Redemption, Period Three [Member] Debt Instrument, Redemption, Scenario One [Member] Manufacturing Operations [Member] Notes Payable to Banks [Member]	Oct. 31, 2012 Debt Instrument, Redemption, Period Four [Member] Debt Instrument, Redemption, Scenario One [Member] Manufacturing Operations [Member] Notes Payable to Banks [Member]	Oct. 31, 2012 Debt Instrument, Redemption, Period Five [Member] Debt Instrument, Redemption, Scenario One [Member] Manufacturing Operations [Member] Notes Payable to Banks [Member]	Apr. 30, 2013 Base Rate [Member]	Apr. 30, 2013 Eurodollar [Member]	Apr. 30, 2013 London Interbank Offered Rate (LIBOR) [Member]	Apr. 30, 2013 Interest Rate Cap [Member] Manufacturing Operations [Member] Financed lease obligations [Member]	Apr. 30, 2013 London Interbank Offered Rate (LIBOR) [Member] Manufacturing Operations [Member] Financed lease obligations [Member]	Apr. 30, 2013 G E Operating Agreement [Member] Manufacturing Operations [Member] Financed lease obligations [Member]	Oct. 31, 2012 G E Operating Agreement [Member] Manufacturing Operations [Member] Financed lease obligations [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity					$ 1,000					$ 175
Line of Credit Facility, Amount Outstanding				1,000					0
Debt Instrument, Basis Spread on Variable Rate																												45000.00%	45000.00%	12500.00%
Debt Instrument, Interest Rate, Stated Percentage	8.25%	8.25%				8.25%																									7.60%	2.80%
Long-term Debt			693	991		1,177	872				209	0				861	763																209	167
Repayments of Long-term Debt	300
Payments of Debt Extinguishment Costs		13
Debt Instrument, Face Amount						0		1,000					200	500	750
Length of credit term		2 years
Proceeds from Issuance of Senior Long-term Debt						310
Debt Instrument, Unamortized Premium						4
Proceeds from Interest Received						10
Debt Related Commitment Fees and Debt Issuance Costs						(4)
Debt Instrument, Interest Rate, Effective Percentage						8.50%
Debt Instrument, Redemption Price, Percentage																					103.00%		100.00%	104.125%	102.75%	101.375%	100.00%
Debt Instrument, Redemption Price, Principal Amount Redeemed																						50
Debt Instrument, Redemption Period																					12 months
Early Repayment of Senior Debt																		50	50		100
Gains (Losses) on Extinguishment of Debt																				$ (8)
Debt Instrument, Redemption, Premium, Percentage of Principal Amount Redeemed																							1.00%

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Financial Instruments and Commodity Contracts - Income Statement Location (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	$ 1	$ (1)	$ 0	$ 3
Cross currency swaps | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	0	0	0	(1)
Foreign currency contracts | Other Income Expense Net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	(1)	(1)	(2)	3
Forward Contracts [Member] | Commodity forward contracts | Cost of Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net	$ 2	$ 0	$ 2	$ 1

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Summary of Significant Accounting Policies - Narrative (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended				6 Months Ended						3 Months Ended	6 Months Ended
	Apr. 30, 2013		Apr. 30, 2012		Apr. 30, 2013 segments		Apr. 30, 2012		Apr. 30, 2013 Number Of Employees Hourly Workers [Member] Unionized Employees Concentration Risk [Member] employees	Apr. 30, 2013 Number of Employees Salaried Workers [Member] Unionized Employees Concentration Risk [Member] employees	Apr. 30, 2013 G E Operating Agreement [Member]	Apr. 30, 2013 G E Operating Agreement [Member]	Apr. 30, 2013 Financed lease obligations [Member] Manufacturing Operations [Member]	Oct. 31, 2012 Financed lease obligations [Member] Manufacturing Operations [Member]	Apr. 30, 2013 Financed lease obligations [Member] Manufacturing Operations [Member] G E Operating Agreement [Member]	Oct. 31, 2012 Financed lease obligations [Member] Manufacturing Operations [Member] G E Operating Agreement [Member]
Accounting Policies [Line Items]
Net income (loss) Attributable to Navistar International Corporation	$ (374)		$ (172)		$ (497)		$ (325)				$ (9)	$ (8)
Number Of Segments					4
Risks and Uncertainties [Abstract]
Concentration Risk Number Of Employees									4,600	400
concentration risk number of employees percentage									51.00%	5.00%
Sales of manufactured products, net	2,487		3,218		5,085		6,183				124	113
Cost of Goods Sold	2,363		2,900		4,649		5,550				126	113
Depreciation and amortization	142	[1]	82	[1]	242	[1]	160	[1]			46	37
Interest expense	90		62		164		123				11	8
Payments to Acquire Equipment on Lease					295		28					(185)
Long-term Debt													209	0	209	167
Payments to Acquire Property, Plant, and Equipment	35	[1],[2]	73	[1],[2]	107	[1],[2]	176	[1],[2]				(184)
Proceeds from finance lease obligations					$ 263		$ 0					$ 201

[1] Includes amounts related to discontinued operations. For more information, see Note 2, Discontinued Operations and Other Divestitures.

[2] Exclusive of purchases of equipment leased to others.

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Financial Instruments and Commodity Contracts (Tables)

6 Months Ended

Apr. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The fair values of all derivatives are recorded as assets or liabilities on a gross basis in our Consolidated Balance Sheets. The following table presents the fair values of our derivatives and their respective balance sheet locations:

	April 30, 2013
	Asset Derivatives			Liability Derivatives
(in millions)	Location in Consolidated Balance Sheets	Fair Value		Location in Consolidated Balance Sheets	Fair Value
Commodity contracts	Other current assets	$	—	Other current liabilities	$	4
Foreign currency contracts	Other current assets	2		Other current liabilities	1
Total fair value		$	2		$	5

	October 31, 2012
	Asset Derivatives			Liability Derivatives
(in millions)	Location in Consolidated Balance Sheets	Fair Value		Location in Consolidated Balance Sheets	Fair Value
Commodity contracts	Other current assets	$	—	Other current liabilities	$	3
Commodity contracts	Other noncurrent assets	—		Other noncurrent liabilities	2
Total fair value		$	—		$	5

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]

he location and amount of loss (gain) recognized in our Consolidated Statements of Operations related to derivatives:

	Location in Consolidated Statements of Operations	Amount of Loss (Gain) Recognized
		Three Months Ended April 30,					Six Months Ended April 30,
(in millions)		2013			2012		2013			2012
Cross currency swaps	Other expense (income), net	$	—		$	—	$	—		$	1
Foreign currency contracts	Other expense (income), net	1			1		2			(3		)
Commodity forward contracts	Costs of products sold	(2		)	—		(2		)	(1		)
Total loss (gain)		$	(1	)	$	1	$	—		$	(3	)

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

The following table presents the outstanding foreign currency contracts as of April 30, 2013 and October 31, 2012:

(in millions)	Currency	Notional Amount		Maturity
As of April 30, 2013
Option collar contracts	EUR	€	16	April 2013 - October 2013
Forward exchange contract	CAD	C$	50	October 2013
Option collar contract	CAD	C$	50	October 2013
Option collar contract	BRL	US$	25	October 2013
As of October 31, 2012
Option collar contracts	EUR	€	25	October 2012 - April 2013

XML

Segment Reporting (Tables)

6 Months Ended

Apr. 30, 2013

Segment Reporting [Abstract]

Schedule of selected financial information, by segment

The following tables present selected financial information for our reporting segments:

(in millions)	Truck			Engine			Parts		Financial Services(A)		Corporate and Eliminations			Total
Three Months Ended April 30, 2013
External sales and revenues, net	$	1,515		$	458		$	514	$	39	$	—		$	2,526
Intersegment sales and revenues	4			286			16		19		(325		)	—
Total sales and revenues, net	$	1,519		$	744		$	530	$	58	$	(325	)	$	2,526
Income (loss) from continuing operations attributable to NIC, net of tax	$	(109	)	$	(138	)	$	91	$	19	$	(216	)	$	(353	)
Income tax expense	—			—			—		—		(22		)	(22		)
Segment profit (loss)	$	(109	)	$	(138	)	$	91	$	19	$	(194	)	$	(331	)
Depreciation and amortization(B)	$	92		$	33		$	2	$	10	$	5		$	142
Interest expense	—			—			—		17		73			90
Equity in income (loss) of non-consolidated affiliates	—			1			3		—		—			4
Capital expenditures(B)(C)	16			16			—		1		2			35

(in millions)	Truck			Engine			Parts		Financial Services(A)		Corporate and Eliminations			Total
Three Months Ended April 30, 2012
External sales and revenues, net	$	2,316		$	440		$	462	$	43	$	—		$	3,261
Intersegment sales and revenues	2			454			34		24		(514		)	—
Total sales and revenues, net	$	2,318		$	894		$	496	$	67	$	(514	)	$	3,261
Income (loss) from continuing operations attributable to NIC, net of tax	$	(45	)	$	(108	)	$	41	$	26	$	(52	)	$	(138	)
Income tax benefit	—			—			—		—		123			123
Segment profit (loss)	$	(45	)	$	(108	)	$	41	$	26	$	(175	)	$	(261	)
Depreciation and amortization(B)	$	35		$	30		$	4	$	8	$	5		$	82
Interest expense	—			—			—		22		40			62
Equity in income (loss) of non-consolidated affiliates	(6		)	—			2		—		—			(4		)
Capital expenditures(B)(C)	16			36			5		1		15			73

(in millions)	Truck			Engine			Parts		Financial Services(A)		Corporate and Eliminations			Total
Six Months Ended April 30, 2013
External sales and revenues, net	$	3,171		$	870		$	1,044	$	78	$	—		$	5,163
Intersegment sales and revenues	26			614			38		39		(717		)	—
Total sales and revenues, net	$	3,197		$	1,484		$	1,082	$	117	$	(717	)	$	5,163
Income (loss) from continuing operations attributable to NIC, net of tax	$	(167	)	$	(165	)	$	177	$	41	$	(353	)	$	(467	)
Income tax expense	—			—			—		—		(37		)	(37		)
Segment profit (loss)	$	(167	)	$	(165	)	$	177	$	41	$	(316	)	$	(430	)
Depreciation and amortization(B)	$	134		$	72		$	5	$	19	$	12		$	242
Interest expense	—			—			—		35		129			164
Equity in income (loss) of non-consolidated affiliates	—			(1		)	4		—		—			3
Capital expenditures(B)(C)	31			69			1		1		5			107

(in millions)	Truck			Engine			Parts		Financial Services(A)		Corporate and Eliminations			Total
Six Months Ended April 30, 2012
External sales and revenues, net	$	4,427		$	860		$	896	$	87	$	—		$	6,270
Intersegment sales and revenues	13			893			69		48		(1,023		)	—
Total sales and revenues, net	$	4,440		$	1,753		$	965	$	135	$	(1,023	)	$	6,270
Income (loss) from continuing operations attributable to NIC, net of tax	$	(72	)	$	(228	)	$	91	$	53	$	(126	)	$	(282	)
Income tax benefit	—			—			—		—		199			199
Segment profit (loss)	$	(72	)	$	(228	)	$	91	$	53	$	(325	)	$	(481	)
Depreciation and amortization(B)	$	69		$	59		$	6	$	16	$	10		$	160
Interest expense	—			—			—		47		76			123
Equity in income (loss) of non-consolidated affiliates	(15		)	1			3		—		—			(11		)
Capital expenditures(B)(C)	32			76			12		2		54			176

(in millions)	Truck(B)		Engine		Parts		Financial Services		Corporate and Eliminations		Total
Segment assets, as of:
April 30, 2013	$	2,139	$	1,738	$	709	$	2,518	$	1,619	$	8,723
October 31, 2012	$	2,118	$	1,777	$	707	$	2,563	$	1,937	$	9,102

_________________________

(A) Total sales and revenues in the Financial Services segment include interest revenues of $46 million and $93 million for the three and six months ended April 30, 2013, respectively, and $56 million and $114 million for three and six months ended April 30, 2012, respectively.

(B) Includes amounts related to discontinued operations. For more information, see Note 2, Discontinued Operations and Other Divestitures.

(C) Exclusive of purchases of equipment leased to others.

XML

Allowance for Doubtful Accounts

6 Months Ended

Apr. 30, 2013

Allowance for Doubtful Accounts [Abstract]

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

Our two portfolio segments, retail and wholesale, each consist of one class of receivable based on: (i) initial measurement attributes of the receivables, and (ii) the assessment and monitoring of risk and performance of the receivables. For more information, see Note 4, Finance Receivables.

The following tables present the activity related to our allowance for doubtful accounts for our retail portfolio segment, wholesale portfolio segment, and trade and other receivables:

	Three Months Ended April 30, 2013										Three Months Ended April 30, 2012
(in millions)	Retail Portfolio			Wholesale Portfolio		Trade and Other Receivables		Total			Retail Portfolio			Wholesale Portfolio			Trade and Other Receivables		Total
Allowance for doubtful accounts, at beginning of period	$	23		$	2	$	24	$	49		$	28		$	3		$	16	$	47
Provision for doubtful accounts, net of recoveries	1			—		10		11			—			(1		)	1		—
Charge-off of accounts(A)	(3		)	—		—		(3		)	(2		)	—			—		(2		)
Other(B)	1			—		—		1			—			—			—		—
Allowance for doubtful accounts, at end of period	$	22		$	2	$	34	$	58		$	26		$	2		$	17	$	45

	Six Months Ended April 30, 2013										Six Months Ended April 30, 2012
(in millions)	Retail Portfolio			Wholesale Portfolio		Trade and Other Receivables		Total			Retail Portfolio			Wholesale Portfolio			Trade and Other Receivables			Total
Allowance for doubtful accounts, at beginning of period	$	27		$	—	$	24	$	51		$	31		$	3		$	16		$	50
Provision for doubtful accounts, net of recoveries	(1		)	2		10		11			(2		)	(1		)	3			—
Charge-off of accounts(A)	(6		)	—		—		(6		)	(3		)	—			(2		)	(5		)
Other(B)	2			—		—		2			—			—			—			—
Allowance for doubtful accounts, at end of period	$	22		$	2	$	34	$	58		$	26		$	2		$	17		$	45

_________________________

(A) We repossess sold and leased vehicles on defaulted finance receivables and leases, and place them into Inventories. Losses recognized at the time of repossession and charged against the allowance for doubtful accounts were less than $1 million for both the three and six months ended April 30, 2013 and $2 million and $3 million for the three and six months ended April 30, 2012, respectively.

(B) Amounts include currency translation.

The accrual of interest income is discontinued on certain impaired finance receivables. Impaired finance receivables include accounts with specific loss reserves and certain accounts that are on non-accrual status. In certain cases, we continue to collect payments on our impaired finance receivables.

The following table presents information regarding impaired finance receivables:

	April 30, 2013						October 31, 2012
(in millions)	Retail Portfolio		Wholesale Portfolio		Total		Retail Portfolio		Wholesale Portfolio		Total
Impaired finance receivables with specific loss reserves	$	12	$	—	$	12	$	14	$	—	$	14
Impaired finance receivables without specific loss reserves	1		—		1		1		—		1
Specific loss reserves on impaired finance receivables	7		—		7		9		—		9
Finance receivables on non-accrual status	9		—		9		10		—		10

For the impaired finance receivables in the retail portfolio as of April 30, 2013 and 2012, the average balances of those receivables were $13 million and $17 million during the six months ended April 30, 2013 and 2012, respectively.

The Company uses the aging of its receivables as well as other inputs when assessing credit quality. The following table presents the aging analysis for finance receivables:

	April 30, 2013						October 31, 2012
(in millions)	Retail Portfolio		Wholesale Portfolio		Total		Retail Portfolio		Wholesale Portfolio		Total
Current, and up to 30 days past due	$	923	$	1,142	$	2,065	$	965	$	1,126	$	2,091
30-90 days past due	36		4		40		72		1		73
Over 90 days past due	9		2		11		11		1		12
Total finance receivables	$	968	$	1,148	$	2,116	$	1,048	$	1,128	$	2,176

XML

Fair Value Measurements - Carrying Values and Estimated Fair Values of Financial Instruments (Details) (USD $) In Millions, unless otherwise specified	Apr. 30, 2013		Oct. 31, 2012
Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans Receivable, Fair Value Disclosure	$ 478		$ 613
Notes Receivable, Fair Value Disclosure	17		27
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans Receivable, Fair Value Disclosure	478		618
Notes Receivable, Fair Value Disclosure	13		27
Fair Value, Inputs, Level 1 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans Receivable, Fair Value Disclosure	0		0
Notes Receivable, Fair Value Disclosure	0		0
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans Receivable, Fair Value Disclosure	0		0
Notes Receivable, Fair Value Disclosure	0		0
Fair Value, Inputs, Level 3 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans Receivable, Fair Value Disclosure	478		613
Notes Receivable, Fair Value Disclosure	17		27
Line of Credit [Member] | Manufacturing Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	687		1,047
Line of Credit [Member] | Manufacturing Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	693		991
Line of Credit [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0		0
Line of Credit [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0		0
Line of Credit [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	687		1,047
Line of Credit [Member] | Financial Services Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	832		734
Line of Credit [Member] | Financial Services Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	861		763
Line of Credit [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0		0
Line of Credit [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0		0
Line of Credit [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	832		734
Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	1,322		899
Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	1,177		872
Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	1,322		899
Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0		0
Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0		0
Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	585	[1]	514	[1]
Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	532	[1]	520	[1]
Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	585	[1]	514	[1]
Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0	[1]	0	[1]
Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0	[1]	0	[1]
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	43		60
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	43		60
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0		0
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0		0
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	43		60
Financing Arrangements [Member] | Manufacturing Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	54		102
Financing Arrangements [Member] | Manufacturing Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	83		136
Financing Arrangements [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0		0
Financing Arrangements [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0		0
Financing Arrangements [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	54		102
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	245		234
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	225		225
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0		0
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	245		234
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0		0
Promissory Note [Member] | Manufacturing Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	25		29
Promissory Note [Member] | Manufacturing Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	25		30
Promissory Note [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0		0
Promissory Note [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0		0
Promissory Note [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	25		29
Financed lease obligations [Member] | Manufacturing Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	209
Financed lease obligations [Member] | Manufacturing Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	209
Financed lease obligations [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0
Financed lease obligations [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0
Financed lease obligations [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	209
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	58		67
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	59		67
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0		0
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0		0
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	58		67
Secured Debt [Member] | Financial Services Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	807		994
Secured Debt [Member] | Financial Services Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	805		994
Secured Debt [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0		0
Secured Debt [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0		0
Secured Debt [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	807		994
Commercial Paper [Member] | Financial Services Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value			31
Commercial Paper [Member] | Financial Services Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value			31
Commercial Paper [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value			31
Commercial Paper [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value			0
Commercial Paper [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value			0
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	65		79
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	65		78
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0		0
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	0		0
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Fair Value	$ 65		$ 79

[1] The carrying value represents the consolidated financial statement amount of the debt which excludes the allocation of the conversion feature to equity, while the fair value is based on quoted market prices for the convertible note which includes the equity feature.

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Allowance for Doubtful Accounts (Tables)

6 Months Ended

Apr. 30, 2013

Allowance for Doubtful Accounts [Abstract]

Allowance For Credit Losses On Receivables [Table Text Block]

The following tables present the activity related to our allowance for doubtful accounts for our retail portfolio segment, wholesale portfolio segment, and trade and other receivables:

	Three Months Ended April 30, 2013										Three Months Ended April 30, 2012
(in millions)	Retail Portfolio			Wholesale Portfolio		Trade and Other Receivables		Total			Retail Portfolio			Wholesale Portfolio			Trade and Other Receivables		Total
Allowance for doubtful accounts, at beginning of period	$	23		$	2	$	24	$	49		$	28		$	3		$	16	$	47
Provision for doubtful accounts, net of recoveries	1			—		10		11			—			(1		)	1		—
Charge-off of accounts(A)	(3		)	—		—		(3		)	(2		)	—			—		(2		)
Other(B)	1			—		—		1			—			—			—		—
Allowance for doubtful accounts, at end of period	$	22		$	2	$	34	$	58		$	26		$	2		$	17	$	45

	Six Months Ended April 30, 2013										Six Months Ended April 30, 2012
(in millions)	Retail Portfolio			Wholesale Portfolio		Trade and Other Receivables		Total			Retail Portfolio			Wholesale Portfolio			Trade and Other Receivables			Total
Allowance for doubtful accounts, at beginning of period	$	27		$	—	$	24	$	51		$	31		$	3		$	16		$	50
Provision for doubtful accounts, net of recoveries	(1		)	2		10		11			(2		)	(1		)	3			—
Charge-off of accounts(A)	(6		)	—		—		(6		)	(3		)	—			(2		)	(5		)
Other(B)	2			—		—		2			—			—			—			—
Allowance for doubtful accounts, at end of period	$	22		$	2	$	34	$	58		$	26		$	2		$	17		$	45

_________________________

(A) We repossess sold and leased vehicles on defaulted finance receivables and leases, and place them into Inventories. Losses recognized at the time of repossession and charged against the allowance for doubtful accounts were less than $1 million for both the three and six months ended April 30, 2013 and $2 million and $3 million for the three and six months ended April 30, 2012, respectively.

(B) Amounts include currency translation.

Impaired Financing Receivables [Table Text Block]

The following table presents information regarding impaired finance receivables:

	April 30, 2013						October 31, 2012
(in millions)	Retail Portfolio		Wholesale Portfolio		Total		Retail Portfolio		Wholesale Portfolio		Total
Impaired finance receivables with specific loss reserves	$	12	$	—	$	12	$	14	$	—	$	14
Impaired finance receivables without specific loss reserves	1		—		1		1		—		1
Specific loss reserves on impaired finance receivables	7		—		7		9		—		9
Finance receivables on non-accrual status	9		—		9		10		—		10

Allowance for Credit Losses on Financing Receivables [Table Text Block]

The Company uses the aging of its receivables as well as other inputs when assessing credit quality. The following table presents the aging analysis for finance receivables:

	April 30, 2013						October 31, 2012
(in millions)	Retail Portfolio		Wholesale Portfolio		Total		Retail Portfolio		Wholesale Portfolio		Total
Current, and up to 30 days past due	$	923	$	1,142	$	2,065	$	965	$	1,126	$	2,091
30-90 days past due	36		4		40		72		1		73
Over 90 days past due	9		2		11		11		1		12
Total finance receivables	$	968	$	1,148	$	2,116	$	1,048	$	1,128	$	2,176

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Discontinued Operations - Discontinued Operations (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended		0 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013 Segment, Discontinued Operations [Member]	Apr. 30, 2012 Segment, Discontinued Operations [Member]	Apr. 30, 2013 Segment, Discontinued Operations [Member]	Apr. 30, 2012 Segment, Discontinued Operations [Member]	May 16, 2013 Subsequent Event [Member]
Statements of Operations for Discontinued Operations [Line Items]
Proceeds from Divestiture of Businesses	$ 33								$ 19
Asset Impairment Charges	25
Sales and revenues, net					36	37	70	80
Loss before income taxes					(21)	(44)	(30)	(58)
Income tax benefit					0	10	0	15
Loss from discontinued operations, net of tax	(21)	(34)	(30)	(43)	(21)	(34)	(30)	(43)
Gain (Loss) on Sale of Business	$ 28

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Postretirement Benefits

6 Months Ended

Apr. 30, 2013

Compensation and Retirement Disclosure [Abstract]

Postretirement Benefits

Postretirement Benefits

Defined Benefit Plans

We provide postretirement benefits to a substantial portion of our employees and retirees. Costs associated with postretirement benefits include pension and postretirement health care expenses for employees, retirees, and surviving spouses and dependents. Generally, the pension plans are non-contributory. Our policy is to fund the pension plans in accordance with applicable U.S. and Canadian government regulations and to make additional contributions from time to time. For the three and six months ended April 30, 2013, we contributed $30 million and $57 million, respectively, and for the three and six months ended April 30, 2012, we contributed $53 million and $82 million, respectively, to our pension plans to meet regulatory funding requirements. We currently anticipate additional contributions of $109 million to our pension plans during the remainder of 2013.

We primarily fund other post-employment benefit ("OPEB") obligations, such as retiree medical, in accordance with a 1993 Settlement Agreement (the "1993 Settlement Agreement"), which requires us to fund a portion of the plans' annual service cost to a retiree benefit trust (the "Base Trust"). The 1993 Settlement Agreement resolved a class action lawsuit originally filed in 1992 regarding the restructuring of the Company's then applicable retiree health care and life insurance benefits. Contributions for the six months ended April 30, 2013 and 2012, as well as anticipated contributions for the remainder of 2013, are not material.

The Early Retiree Reinsurance Program ("ERRP") was created under the Patient Protection and Affordable Care Act ("PPACA") of 2010 to provide temporary financial assistance to health plan sponsors who provide retirement health coverage to pre-Medicare retirees. Under the terms of ERRP, no amounts were collected and deposited into the Base Trust in the six months ended April 30, 2013, compared to $3 million collected and deposited into the Base Trust in the six months ended April 30, 2012. In the three months ended April 30, 2013 and 2012, no amounts were collected and deposited into the Base Trust.

Components of Net Periodic Benefit Expense

The following table presents the components of net postretirement benefits expense included in our Consolidated Statements of Operations:

	Three Months Ended April 30,												Six Months Ended April 30,
	Pension Benefits						Health and Life Insurance Benefits						Pension Benefits						Health and Life Insurance Benefits
(in millions)	2013			2012			2013			2012			2013			2012			2013			2012
Service cost for benefits earned during the period	$	5		$	4		$	2		$	2		$	10		$	8		$	4		$	4
Interest on obligation	36			43			16			21			72			86			31			42
Amortization of cumulative loss	32			27			8			11			64			55			15			20
Amortization of prior service benefit	—			—			(1		)	(1		)	—			—			(2		)	(2		)
Contractual termination benefits	—			—			—			—			—			—			—			(3		)
Premiums on pension insurance	1			1			—			—			1			1			—			—
Expected return on assets	(47		)	(48		)	(9		)	(9		)	(94		)	(96		)	(17		)	(18		)
Net postretirement benefits expense	$	27		$	27		$	16		$	24		$	53		$	54		$	31		$	43

Defined Contribution Plans and Other Contractual Arrangements

Our defined contribution plans cover a substantial portion of domestic salaried employees and certain domestic represented employees. The defined contribution plans contain a 401(k) feature and provide most participants with a matching contribution from the Company. Effective February 1, 2013, the Company changed the timing for depositing the matching contributions to the end of the calendar year. Many participants covered by the plans receive annual Company contributions to their retirement accounts based on an age-weighted percentage of the participant's eligible compensation for the calendar year. Defined contribution expense pursuant to these plans was $8 million and $15 million in the three and six months ended April 30, 2013, respectively, and $14 million and $24 million for the three and six months ended April 30, 2012, respectively.

In accordance with the 1993 Settlement Agreement, an independent Retiree Supplemental Benefit Trust (the "Supplemental Trust") was established. The Supplemental Trust, and the benefits it provides to certain retirees, is not part of the Company's consolidated financial statements. The assets of the Supplemental Trust arise from three sources: (i) the Company's 1993 contribution to the Supplemental Trust of 25.5 million shares of our Class B common stock, which were subsequently sold by the Supplemental Trust prior to 2000, (ii) contingent profit-sharing contributions made by the Company, and (iii) net investment gains on the Supplemental Trust's assets, if any.

The Company's contingent profit sharing obligations will continue until certain funding targets defined by the 1993 Settlement Agreement are met ("Profit Sharing Cessation"). Upon Profit Sharing Cessation, the Company would assume responsibility for (i) establishing the investment policy for the Supplemental Trust, (ii) approving or disapproving of certain additional supplemental benefits to the extent such benefits would result in higher expenditures than those contemplated upon the Profit Sharing Cessation, and (iii) making additional contributions to the Supplemental Trust as necessary to make up for investment and/or actuarial losses.We have recorded no profit sharing accruals based on our estimate of 2013 results.

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Condensed Consolidating Guarantor and Non-Guarantor - Statement of Comprehsive Income (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012
Net income (loss) Attributable to Navistar International Corporation	$ (374)	$ (172)	$ (497)	$ (325)
Other comprehensive income (loss):
Foreign currency translation adjustment	3	(65)	20	(78)
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax, Portion Attributable to Parent	40	17	78	40
Total other comprehensive income (loss)	43	(48)	98	(38)
Total comprehensive income (loss) attributable to Navistar International Corporation	(331)	(220)	(399)	(363)
Parent Company [Domain]
Net income (loss) Attributable to Navistar International Corporation	(374)	(172)	(497)	(325)
Other comprehensive income (loss):
Foreign currency translation adjustment	3	(65)	20	(78)
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax, Portion Attributable to Parent	40	17	78	40
Total other comprehensive income (loss)	43	(48)	98	(38)
Total comprehensive income (loss) attributable to Navistar International Corporation	(331)	(220)	(399)	(363)
Guarantor Subsidiaries [Domain]
Net income (loss) Attributable to Navistar International Corporation	(433)	(201)	(607)	(396)
Other comprehensive income (loss):
Foreign currency translation adjustment	0	0	0	0
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax, Portion Attributable to Parent	35	16	70	36
Total other comprehensive income (loss)	35	16	70	36
Total comprehensive income (loss) attributable to Navistar International Corporation	(398)	(185)	(537)	(360)
Non-Guarantor Subsidiaries [Domain]
Net income (loss) Attributable to Navistar International Corporation	129	337	254	448
Other comprehensive income (loss):
Foreign currency translation adjustment	2	(65)	20	(78)
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax, Portion Attributable to Parent	5	2	8	5
Total other comprehensive income (loss)	7	(63)	28	(73)
Total comprehensive income (loss) attributable to Navistar International Corporation	136	274	282	375
Consolidation, Eliminations [Domain]
Net income (loss) Attributable to Navistar International Corporation	304	(136)	353	(52)
Other comprehensive income (loss):
Foreign currency translation adjustment	(2)	65	(20)	78
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax, Portion Attributable to Parent	(40)	(18)	(78)	(41)
Total other comprehensive income (loss)	(42)	47	(98)	37
Total comprehensive income (loss) attributable to Navistar International Corporation	$ 262	$ (89)	$ 255	$ (15)

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Finance Receivables

6 Months Ended

Apr. 30, 2013

Receivables [Abstract]

Finance Receivables

Finance Receivables

Finance receivables are receivables of our financial services operations, which generally can be repaid without penalty prior to contractual maturity. Finance receivables generally consist of retail and wholesale accounts and retail and wholesale notes. Total finance receivables reported on the Consolidated Balance Sheets are net of an allowance for doubtful accounts. Total assets of our financial services operations net of intercompany balances are $2.5 billion and $2.6 billion as of April 30, 2013 and October 31, 2012, respectively. Included in total assets are finance receivables of $2.1 billion as of both April 30, 2013 and October 31, 2012. We have two portfolio segments of finance receivables based on the type of financing inherent to each portfolio. The retail portfolio segment represents loans or leases to end-users for the purchase or lease of vehicles. The wholesale portfolio segment represents loans to dealers to finance their inventory.

Our Finance receivables, net, consist of the following:

(in millions)	April 30, 2013		October 31, 2012
Retail portfolio	$	968	$	1,048
Wholesale portfolio	1,148		1,128
Total finance receivables	2,116		2,176
Less: Allowance for doubtful accounts	24		27
Total finance receivables, net	2,092		2,149
Less: Current portion, net(A)	1,664		1,663
Noncurrent portion, net	$	428	$	486

_________________________

(A) The current portion of finance receivables is computed based on contractual maturities. Actual cash collections typically vary from the contractual cash flows because of prepayments, extensions, delinquencies, credit losses, and renewals.

Securitizations

Our Financial Services segment transfers wholesale notes, retail accounts receivable, retail notes, finance leases, and operating leases through special purpose entities ("SPEs"), which generally are only permitted to purchase these assets, issue asset-backed securities, and make payments on the securities. In addition to servicing receivables, our continued involvement in the SPEs may include an economic interest in the transferred receivables and, in some cases, managing exposure to interest rates using interest rate swaps and interest rate caps. There were no transfers of finance receivables that qualified for sale accounting treatment as of April 30, 2013 and October 31, 2012, and as a result, the transferred finance receivables are included in our Consolidated Balance Sheets and the related interest earned is included in Finance revenues.

We transfer eligible finance receivables into the retail owner trust or the wholesale note owner trust in order to issue asset-backed securities. These trusts are VIEs of which we are determined to be the primary beneficiary and, therefore, the assets and liabilities of the trusts are included in our Consolidated Balance Sheets. The outstanding balance of finance receivables transferred into these VIEs was $976 million and $1.1 billion as of April 30, 2013 and October 31, 2012, respectively. Other finance receivables pledged to secure borrowings were $127 million and $164 million as of April 30, 2013 and October 31, 2012, respectively. For more information on assets and liabilities of consolidated VIEs and other securitizations accounted for as secured borrowings by our Financial Services segment, see Note 1, Summary of Significant Accounting Policies.

Finance Revenues

The following table presents the components of our Finance revenues, net:

	Three Months Ended April 30,						Six Months Ended April 30,
(in millions)	2013			2012			2013			2012
Retail notes and finance leases revenue	$	20		$	26		$	41		$	52
Wholesale notes interest	19			22			39			45
Operating lease revenue	12			11			24			20
Retail and wholesale accounts interest	7			8			13			18
Gross finance revenues	58			67			117			135
Less: Intercompany revenues	(19		)	(24		)	(39		)	(48		)
Finance revenues	$	39		$	43		$	78		$	87

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Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	6 Months Ended
	Apr. 30, 2013		Apr. 30, 2012
Net loss	$ (473)		$ (302)
Depreciation and amortization	164		136
Depreciation of equipment leased to others	78		24
Deferred taxes, including change in valuation allowance	20		(203)
Impairment of property and equipment and intangible assets	8		38
Loss (gain) on sales of investments and businesses, net	(13)		0
Amortization of debt issuance costs and discount	31		19
Stock-based compensation	14		14
Provision for doubtful accounts, net of recoveries	13		0
Equity in loss of non-consolidated affiliates, net of dividends	8		15
Write off of Debt Issuance Cost and Discount	6		8
Other non-cash operating activities	(54)		2
Changes in other assets and liabilities, exclusive of the effects of businesses acquired and disposed	155		298
Net Cash Provided by (Used in) Operating Activities	(43)		49
Purchases of marketable securities	(759)		(563)
Sales or maturities of marketable securities	492		944
Net change in restricted cash and cash equivalents	44		182
Capital expenditures	(107)	[1],[2]	(176)	[1],[2]
Purchase of equipment leased to others	(295)		(28)
Proceeds from sales of property and equipment	19		6
Investments in non-consolidated affiliates	0		(17)
Business acquisitions, net of cash received	0		(10)
Proceeds from sales of affiliates	30		1
Acquisition of intangibles	0		(14)
Net Cash Provided by (Used in) Investing Activities	(576)		325
Proceeds from issuance of securitized debt	200		281
Principal payments on securitized debt	(402)		(666)
Proceeds from issuance of non-securitized debt	339		555
Principal payments on non-securitized debt	(374)		(537)
Net increase (decrease) in notes and debt outstanding under revolving credit facilities	80		2
Principal payments under financing arrangements and capital lease obligations	(51)		(20)
Debt issuance costs	(14)		(15)
Proceeds from finance lease obligations	263		0
Issuance of Common Stock	14		0
Purchase of treasury stock	0		(75)
Proceeds from exercise of stock options	8		2
Dividends paid by subsidiaries to non-controlling interest	(25)		(34)
Cash provided by (used in) Other Financing Activities	4		(3)
Net Cash Provided by (Used in) Financing Activities	42		(510)
Effect of Exchange Rate on Cash and Cash Equivalents	(5)		(3)
Cash and Cash Equivalents, Period Increase (Decrease)	(582)		(139)
Cash and cash equivalents at beginning of the period	1,087		539
Cash and cash equivalents at end of the period	$ 505		$ 400

[1] Includes amounts related to discontinued operations. For more information, see Note 2, Discontinued Operations and Other Divestitures.

[2] Exclusive of purchases of equipment leased to others.

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Debt - Manufacturing Operations (Details) (USD $) In Millions, unless otherwise specified	Apr. 30, 2013	Oct. 31, 2012
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	8.25%
Debt, Current	$ 779	$ 1,205
Long-term Debt and Capital Lease Obligations	4,002	3,566
Manufacturing Operations [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount	5	9
Long-term Debt	693	991
Manufacturing Operations [Member] | Notes Payable to Banks [Member]
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount	23	28
Debt Instrument, Interest Rate, Stated Percentage	8.25%
Long-term Debt	1,177	872
Manufacturing Operations [Member] | Convertible Subordinated Debt [Member]
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount	38	50
Debt Instrument, Interest Rate, Stated Percentage	3.00%
Long-term Debt	532	520
Manufacturing Operations [Member] | Debt Of Majority Owned Dealerships [Member]
Debt Instrument [Line Items]
Long-term Debt	43	60
Manufacturing Operations [Member] | Financing Arrangements and Capital Lease Obligations [Member]
Debt Instrument [Line Items]
Long-term Debt	87	140
Manufacturing Operations [Member] | Tax Exempt Bond [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	6.50%
Long-term Debt	225	225
Manufacturing Operations [Member] | Promissory Note [Member]
Debt Instrument [Line Items]
Long-term Debt	25	30
Manufacturing Operations [Member] | Financed lease obligations [Member]
Debt Instrument [Line Items]
Long-term Debt	209	0
Manufacturing Operations [Member] | Notes Payable, Other Payables [Member]
Debt Instrument [Line Items]
Long-term Debt	59	67
Manufacturing Operations [Member] | Debt [Member]
Debt Instrument [Line Items]
Long-term Debt	3,050	2,905
Debt, Current	122	172
Long-term Debt and Capital Lease Obligations	$ 2,928	$ 2,733

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Finance Receivables - Finance Revenues (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2013	Apr. 30, 2012
Finance Revenues [Line Items]
Retail Notes And Finance Leases Revenue	$ 20	$ 26	$ 41	$ 52
Operating Leases, Income Statement, Lease Revenue	12	11	24	20
Finance Revenues From On Balance Sheet Receivables	58	67	117	135
Revenue from Related Parties	(19)	(24)	(39)	(48)
Finance Revenues	39	43	78	87
Wholesale Portfolio [Member] | Notes Receivable [Member]
Finance Revenues [Line Items]
Interest Income, Operating	19	22	39	45
Retail And Wholesale Portfolios [Member]
Finance Revenues [Line Items]
Interest Income, Operating	$ 7	$ 8	$ 13	$ 18

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Postretirement Benefits (Tables)

6 Months Ended

Apr. 30, 2013

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Schedule of Net Benefit Costs [Table Text Block]

et postretirement benefits expense included in our Consolidated Statements of Operations:

	Three Months Ended April 30,												Six Months Ended April 30,
	Pension Benefits						Health and Life Insurance Benefits						Pension Benefits						Health and Life Insurance Benefits
(in millions)	2013			2012			2013			2012			2013			2012			2013			2012
Service cost for benefits earned during the period	$	5		$	4		$	2		$	2		$	10		$	8		$	4		$	4
Interest on obligation	36			43			16			21			72			86			31			42
Amortization of cumulative loss	32			27			8			11			64			55			15			20
Amortization of prior service benefit	—			—			(1		)	(1		)	—			—			(2		)	(2		)
Contractual termination benefits	—			—			—			—			—			—			—			(3		)
Premiums on pension insurance	1			1			—			—			1			1			—			—
Expected return on assets	(47		)	(48		)	(9		)	(9		)	(94		)	(96		)	(17		)	(18		)
Net postretirement benefits expense	$	27		$	27		$	16		$	24		$	53		$	54		$	31		$	43

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Financial Instruments and Commodity Contracts - Foreign Currency Contracts (Details) (Foreign Exchange Contract [Member]) In Millions, unless otherwise specified	Apr. 30, 2013 EUR (€)	Oct. 31, 2012 EUR (€)	Apr. 30, 2013 Contract 1 [Member] USD ($)	Apr. 30, 2013 Contract 1 [Member] CAD	Apr. 30, 2013 Contract 2 [Member] CAD
Derivative [Line Items]
Derivative, Notional Amount	€ 16	€ 25	$ 25	50	50

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Fair Value Measurements - Financial Instruments Measured on Recurring Basis (Details) (Fair Value, Measurements, Recurring [Member], USD $) In Millions, unless otherwise specified	Apr. 30, 2013	Oct. 31, 2012
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	$ 733	$ 466
Guarantees, Fair Value Disclosure	0	0
Liabilities, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	2	0
Guarantees, Fair Value Disclosure	0	0
Liabilities, Fair Value Disclosure	5	4
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	0	0
Guarantees, Fair Value Disclosure	7	7
Liabilities, Fair Value Disclosure	7	7
Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	735	466
Guarantees, Fair Value Disclosure	7	7
Liabilities, Fair Value Disclosure	12	11
US Treasury Bill Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	662	420
US Treasury Bill Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0	0
US Treasury Bill Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0	0
US Treasury Bill Securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	662	420
Other Investment Companies [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	71	46
Other Investment Companies [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0	0
Other Investment Companies [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0	0
Other Investment Companies [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	71	46
Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency contracts	0	0
Derivative Liability, Fair Value, Gross Liability	0	0
Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency contracts	2	0
Derivative Liability, Fair Value, Gross Liability	1	0
Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency contracts	0	0
Derivative Liability, Fair Value, Gross Liability	0	0
Foreign Exchange Contract [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency contracts	2	0
Derivative Liability, Fair Value, Gross Liability	1	0
Commodity Contract [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability, Fair Value, Gross Liability	0	0
Commodity Contract [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability, Fair Value, Gross Liability	4	4
Commodity Contract [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability, Fair Value, Gross Liability	0	0
Commodity Contract [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability, Fair Value, Gross Liability	$ 4	$ 4

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Financial Instruments and Commodity Contracts

6 Months Ended

Apr. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments and Commodity Contracts

Financial Instruments and Commodity Contracts

Derivative Financial Instruments

We use derivative financial instruments as part of our overall interest rate, foreign currency, and commodity risk management strategies to reduce our interest rate exposure, reduce exchange rate risk for transactional exposures denominated in currencies other than the functional currency, and minimize the effect of commodity price volatility. From time to time, we use foreign currency forward and option contracts to manage the risk of exchange rate movements that would affect the value of our foreign currency cash flows. Foreign currency exchange rate movements create a degree of risk by affecting the value of sales made and costs incurred in currencies other than the functional currency. From time to time, we also use commodity forward contracts to manage our exposure to variability in certain commodity prices. In 2009 in connection with the sale of our 3.0% Senior Subordinated Convertible Notes due 2014 (the "Convertible Notes"), we purchased call options for $125 million. The call options are intended to minimize share dilution associated with the Convertible Notes. As the call options and warrants are indexed to our common stock, we recognized them in permanent equity in Additional paid in capital, and will not recognize subsequent changes in fair value as long as the instruments remain classified as equity.

We generally do not enter into derivative financial instruments for speculative or trading purposes and did not during the three months ended April 30, 2013 and 2012. None of our derivatives qualified for hedge accounting treatment during the three months ended April 30, 2013 or 2012.

Certain of our derivative contracts contain provisions that require us to provide collateral if certain thresholds are exceeded. No collateral was provided at April 30, 2013 and $1 million was provided as collateral at October 31, 2012. Collateral is generally not required to be provided by our counter-parties for derivative contracts. We manage exposure to counter-party credit risk by entering into derivative financial instruments with various major financial institutions that can be expected to fully perform under the terms of such instruments. We do not anticipate nonperformance by any of the counter-parties. Our exposure to credit risk in the event of nonperformance by the counter-parties is limited to those assets that have been recorded, but have not yet been received in cash. At April 30, 2013 and October 31, 2012, our exposure to the credit risk of others was $2 million and zero, respectively.

Our financial services operations may use interest rate swaps or interest rate caps from time to time to manage exposure to fluctuations in interest rates by limiting the amount of fixed rate finance receivables that are funded with variable rate debt. The Mexican financial services operation uses cross currency swaps to limit exposure to fluctuations in the value of the peso, as required under Mexican bank credit facilities.

The fair values of all derivatives are recorded as assets or liabilities on a gross basis in our Consolidated Balance Sheets. The following table presents the fair values of our derivatives and their respective balance sheet locations:

	April 30, 2013
	Asset Derivatives			Liability Derivatives
(in millions)	Location in Consolidated Balance Sheets	Fair Value		Location in Consolidated Balance Sheets	Fair Value
Commodity contracts	Other current assets	$	—	Other current liabilities	$	4
Foreign currency contracts	Other current assets	2		Other current liabilities	1
Total fair value		$	2		$	5

	October 31, 2012
	Asset Derivatives			Liability Derivatives
(in millions)	Location in Consolidated Balance Sheets	Fair Value		Location in Consolidated Balance Sheets	Fair Value
Commodity contracts	Other current assets	$	—	Other current liabilities	$	3
Commodity contracts	Other noncurrent assets	—		Other noncurrent liabilities	2
Total fair value		$	—		$	5

The following table presents the location and amount of loss (gain) recognized in our Consolidated Statements of Operations related to derivatives:

	Location in Consolidated Statements of Operations	Amount of Loss (Gain) Recognized
		Three Months Ended April 30,					Six Months Ended April 30,
(in millions)		2013			2012		2013			2012
Cross currency swaps	Other expense (income), net	$	—		$	—	$	—		$	1
Foreign currency contracts	Other expense (income), net	1			1		2			(3		)
Commodity forward contracts	Costs of products sold	(2		)	—		(2		)	(1		)
Total loss (gain)		$	(1	)	$	1	$	—		$	(3	)

Foreign Currency Contracts

During 2013 and 2012, we entered into foreign exchange forward and option contracts as economic hedges of anticipated cash flows denominated in Canadian dollars, Brazilian reais, South African rand and Euros. All contracts were entered into to protect against the risk that the eventual cash flows resulting from certain transactions would be affected by changes in exchange rates between the U.S. dollar and the respective foreign currency.

The following table presents the outstanding foreign currency contracts as of April 30, 2013 and October 31, 2012:

(in millions)	Currency	Notional Amount		Maturity
As of April 30, 2013
Option collar contracts	EUR	€	16	April 2013 - October 2013
Forward exchange contract	CAD	C$	50	October 2013
Option collar contract	CAD	C$	50	October 2013
Option collar contract	BRL	US$	25	October 2013
As of October 31, 2012
Option collar contracts	EUR	€	25	October 2012 - April 2013

Commodity Forward Contracts

During 2013 and 2012, we entered into commodity forward contracts as economic hedges of our exposure to variability in commodity prices for diesel fuel and steel. As of April 30, 2013, we had outstanding diesel fuel contracts with aggregate notional values of $6 million and outstanding steel contracts with aggregate notional values of $39 million. The commodity forward contracts have maturity dates ranging from April 2013 to December 2013. As of October 31, 2012, we had outstanding diesel fuel contracts with aggregate notional values of $3 million and outstanding steel contracts with aggregate notional values of $61 million. All of these contracts were entered into to protect against the risk that the eventual cash flows related to purchases of the commodities will be affected by changes in prices.

Interest-Rate Contracts

From time to time, we enter into various interest-rate contracts, including interest-rate swaps, interest rate caps, and cross currency swaps. Interest-rate swaps involve the exchange of floating rate for fixed rate interest payments based on the contractual notional amounts in a single currency. As of April 30, 2013 and October 31, 2012, there were no interest rate swaps or caps outstanding. Cross currency swaps involve the exchange of notional amounts and interest payments in different currencies. As of April 30, 2013 and October 31, 2012, the notional amount of our outstanding cross currency swaps was $19 million and $39 million, respectively. We are exposed to interest rate and exchange rate risk as a result of our borrowing activities. The objective of these contracts is to mitigate fluctuations in earnings, cash flows, and fair value of borrowings.

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Debt

6 Months Ended

Apr. 30, 2013

Debt Disclosure [Abstract]

Debt

Debt

(in millions)	April 30, 2013		October 31, 2012
Manufacturing operations:
Senior Secured Term Loan Credit Facility, as Amended, due 2017, net of unamortized discount of $5 and $9, respectively	$	693	$	991
8.25% Senior Notes, due 2021, net of unamortized discount of $23 and $28, respectively	1,177		872
3.0% Senior Subordinated Convertible Notes, due 2014, net of unamortized discount of $38 and $50, respectively	532		520
Debt of majority-owned dealerships	43		60
Financing arrangements and capital lease obligations	87		140
Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040	225		225
Promissory Note	25		30
Financed lease obligations	209		—
Other	59		67
Total manufacturing operations debt	3,050		2,905
Less: Current portion	122		172
Net long-term manufacturing operations debt	$	2,928	$	2,733

(in millions)	April 30, 2013		October 31, 2012
Financial Services operations:
Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2019	$	805	$	994
Bank revolvers, at fixed and variable rates, due dates from 2013 through 2019	861		763
Commercial paper, at variable rates, matured in 2013	—		31
Borrowings secured by operating and finance leases, at various rates, due serially through 2017	65		78
Total financial services operations debt	1,731		1,866
Less: Current portion	657		1,033
Net long-term financial services operations debt	$	1,074	$	833

Manufacturing Operations

Senior Secured Term Loan Credit Facility, as Amended

In August 2012, NIC and Navistar, Inc. signed a definitive credit agreement relating to a senior secured, term loan credit facility in an aggregate principal amount of $1 billion (the "Term Loan Credit Facility") and borrowed an aggregate principal amount of $1 billion under the Term Loan Credit Facility. The Term Loan Credit Facility agreement required quarterly principal amortization payments of 0.25% of the aggregate principal amount, with the balance due at maturity.

In April 2013, the Term Loan Credit Facility was amended (the “Amended Term Loan Credit Facility”), to: (i) change the maturity date of all borrowings under the Term Loan Credit Facility to August 17, 2017, (ii) lower the interest on all borrowings under the Term Loan Credit Facility to a rate equal to a base rate plus a spread of 450 basis points, or a Eurodollar rate plus a spread of 450 basis points with a London Interbank Offered Rate (“LIBOR”) floor that was reduced to 125 basis points, (iii) provide additional operating flexibility, and (iv) remove certain pledged assets as collateral from the Term Loan Credit Facility.

In April 2013, Navistar, Inc. used proceeds derived from the March 2013 sale of additional 8.25% Senior Notes due 2021 (the "Senior Notes"), as described below, to make a principal repayment of $300 million against the Term Loan Credit Facility (the "April 2013 Principal Repayment"). As a result of the April 2013 Principal Repayment, no further quarterly principal payments are required. In the second quarter of 2013, the Company recorded charges of $13 million related to the April 2013 Principal Repayment and amendment of the Term Loan Credit Facility. The charges were recognized in Other expense (income), net, and included the write-off of related discount and debt issuance costs and a prepayment premium fee.

Senior Notes

In October 2009, we completed the sale of $1 billion aggregate principal amount of our Senior Notes. In March 2013, we completed the sale of an additional $300 million aggregate principal amount of Senior Notes. Interest related to the Senior Notes is payable on May 1 and November 1 of each year until the maturity date of November 1, 2021. The Senior Notes are senior unsecured obligations of the Company.

From the March 2013 sale of additional Senior Notes, the Company received net proceeds of approximately $310 million, which included an offering premium of $4 million and accrued interest of $10 million, offset by underwriter fees of $4 million. The debt issuance costs were recorded in Other noncurrent assets and will be amortized through Interest expense. Both the offering premium and the debt issuance costs will be accreted over the life of the Senior Notes. As a result of the transaction, the effective interest rate of the Senior Notes is now 8.5%. The proceeds from the March 2013 sale of additional Senior Notes were used to make the April 2013 principal payment against the Term Loan Credit Facility.

On or after November 1, 2014, the Company can redeem all or part of the Senior Notes during the twelve-month period beginning on November 1, 2014, 2015, 2016, 2017, and thereafter at a redemption price equal to 104.125%, 102.75%, 101.375%, and 100%, respectively, of the principal amount of the notes redeemed.

In addition, not more than once during each twelve-month period ending on November 1, 2010, 2011, 2012, 2013, and 2014, the Company may redeem up to $50 million in principal amount of the Senior Notes in each such twelve-month period, at a redemption price equal to 103% of the principal amount of the Senior Notes redeemed, plus accrued and unpaid interest, if any. The Company exercised this early redemption feature for a total principal amount of $100 million, by redeeming $50 million of Senior Notes on November 1, 2011 and an additional $50 million of Senior Notes on November 2, 2011. In the first quarter of 2012, the Company recorded $8 million of charges related to the early redemption premium and write-off of related discount and debt issuance costs.

The Company may also redeem the Senior Notes at its election in whole or part at any time prior to November 1, 2014 at a redemption price equal to 100% of the principal amount thereof plus the applicable premium, plus accrued and unpaid interest, to the redemption date. The applicable premium is defined as the greater of: 1% of the principal amount and the excess, if any, of (i) the present value as of such date of redemption of (A) the redemption price of such note on November 1, 2014, plus (B) all required interest payments due on such note through November 1, 2014, computed using a discount rate equal to the Treasury Rate (as defined in the debt agreement), plus 50 basis points over (ii) the then-outstanding principal of such note.

Amended and Restated Asset-Based Credit Facility

In August 2012, Navistar, Inc. entered into an amended and restated asset-based credit agreement in an aggregate principal amount of $175 million (the "Amended and Restated Asset-Based Credit Facility"). In April 2013, the Amended and Restated Asset-Based Credit Facility was amended to include used truck inventory in the borrowing base. Additionally, the borrowing base of the facility is secured by a first priority security interest in Navistar, Inc.'s aftermarket parts inventory that is stored at certain parts distribution centers, storage facilities and third-party processor or logistics provider locations.

Also in April 2013, the maturity date of the Amended and Restated Asset-Based Credit Facility automatically extended to May 18, 2017, as a result of the modification to the maturity date of the Term Loan Credit Facility, as described above. The facility contains customary provisions for financings of this type, including, without limitation, representations and warranties, affirmative and negative covenants and events of default. All borrowings under the Amended and Restated Asset-Based Credit Facility accrue interest at a rate equal to a base rate or an adjusted LIBOR rate plus a spread. The spread, which will be based on an availability-based measure, ranges from 175 basis points to 225 basis points for Base Rate borrowings and 275 basis points to 325 basis points for LIBOR borrowings. The initial LIBOR spread is 275 basis points. As of April 30, 2013, we had no borrowings under the Amended and Restated Asset-Based Credit Facility.

Financed Lease Obligations

We have accounted for as borrowings certain third-party equipment financings by GE, our preferred source of retail customer financing for equipment offered by us and our dealers in the U.S. The initial transactions do not qualify for revenue recognition as we retain substantial risks of ownership in the leased property. As a result, the proceeds from the transfer are recorded as an obligation and amortized to revenue over the term of the financing. The remaining obligation will be amortized through 2018 with interest rates ranging from 2.8% to 7.6%. In the second quarter of 2013, the Company recorded certain out-of-period adjustments for the correction of prior-period errors, which resulted in the financed lease obligations balance as of October 31, 2012 being understated by $167 million. For more information, see Note 1, Summary of Significant Accounting Policies.

Financial Services Operations

In February 2013, NFC completed the sale of $200 million of two-year investor notes secured by assets of the wholesale note owner trust. Proceeds were used to reduce borrowings under the variable funding notes ("VFN") facility. In conjunction with this sale, and in accordance with the terms of the VFN facility, the maximum capacity of the VFN facility was reduced from $750 million to $500 million. In March 2013, the maturity date of the VFN facility was extended from August 2013 to March 2014.

In December 2012, our Mexican financial services operation settled all of its commercial paper. The commercial paper program expired in February 2013.

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Segment Reporting - Segment Reporting (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended				6 Months Ended
	Apr. 30, 2013		Apr. 30, 2012		Apr. 30, 2013 segments		Apr. 30, 2012
Segment Reporting Information [Line Items]
Number Of Segments					4
External sales and revenues, net	$ 2,526		$ 3,261		$ 5,163		$ 6,270
Intersegment sales and revenues	0		0		0		0
Sales and revenues, net	2,526		3,261		5,163		6,270
Income (Loss) from Continuing Operations Attributable to Parent	(353)		(138)		(467)		(282)
Income tax benefit (expense)	(22)		123		(37)		199
Segment profit (loss)	(331)		(261)		(430)		(481)
Depreciation and amortization	142	[1]	82	[1]	242	[1]	160	[1]
Interest expense	90		62		164		123
Equity in loss of non-consolidated affiliates	4		(4)		3		(11)
Capital expenditures	35	[1],[2]	73	[1],[2]	107	[1],[2]	176	[1],[2]
Truck [Domain]
Segment Reporting Information [Line Items]
External sales and revenues, net	1,515		2,316		3,171		4,427
Intersegment sales and revenues	4		2		26		13
Sales and revenues, net	1,519		2,318		3,197		4,440
Income (Loss) from Continuing Operations Attributable to Parent	(109)		(45)		(167)		(72)
Income tax benefit (expense)	0		0		0		0
Segment profit (loss)	(109)		(45)		(167)		(72)
Depreciation and amortization	92	[1]	35	[1]	134	[1]	69	[1]
Interest expense	0		0		0		0
Equity in loss of non-consolidated affiliates	0		(6)		0		(15)
Capital expenditures	16	[1],[2]	16	[1],[2]	31	[1],[2]	32	[1],[2]
Engine [Member]
Segment Reporting Information [Line Items]
External sales and revenues, net	458		440		870		860
Intersegment sales and revenues	286		454		614		893
Sales and revenues, net	744		894		1,484		1,753
Income (Loss) from Continuing Operations Attributable to Parent	(138)		(108)		(165)		(228)
Income tax benefit (expense)	0		0		0		0
Segment profit (loss)	(138)		(108)		(165)		(228)
Depreciation and amortization	33	[1]	30	[1]	72	[1]	59	[1]
Interest expense	0		0		0		0
Equity in loss of non-consolidated affiliates	1		0		(1)		1
Capital expenditures	16	[1],[2]	36	[1],[2]	69	[1],[2]	76	[1],[2]
Parts [Member]
Segment Reporting Information [Line Items]
Number Of Regional Parts Distribution Centers	11				11
External sales and revenues, net	514		462		1,044		896
Intersegment sales and revenues	16		34		38		69
Sales and revenues, net	530		496		1,082		965
Income (Loss) from Continuing Operations Attributable to Parent	91		41		177		91
Income tax benefit (expense)	0		0		0		0
Segment profit (loss)	91		41		177		91
Depreciation and amortization	2	[1]	4	[1]	5	[1]	6	[1]
Interest expense	0		0		0		0
Equity in loss of non-consolidated affiliates	3		2		4		3
Capital expenditures	0	[1],[2]	5	[1],[2]	1	[1],[2]	12	[1],[2]
Financial Services Operations [Member]
Segment Reporting Information [Line Items]
External sales and revenues, net	39	[1]	43	[1]	78	[1]	87	[1]
Intersegment sales and revenues	19	[1]	24	[1]	39	[1]	48	[1]
Sales and revenues, net	58	[1]	67	[1]	117	[1]	135	[1]
Income (Loss) from Continuing Operations Attributable to Parent	19	[1]	26	[1]	41	[1]	53	[1]
Income tax benefit (expense)	0	[1]	0	[1]	0	[1]	0	[1]
Segment profit (loss)	19	[1]	26	[1]	41	[1]	53	[1]
Depreciation and amortization	10	[1],[3]	8	[1],[3]	19	[1],[3]	16	[1],[3]
Interest expense	17	[1]	22	[1]	35	[1]	47	[1]
Equity in loss of non-consolidated affiliates	0	[1]	0	[1]	0	[1]	0	[1]
Capital expenditures	1	[1],[2],[3]	1	[1],[2],[3]	1	[1],[2],[3]	2	[1],[2],[3]
Interest revenues	46		56		93		114
Corporate And Eliminations [Member]
Segment Reporting Information [Line Items]
External sales and revenues, net	0		0		0		0
Intersegment sales and revenues	(325)		(514)		(717)		(1,023)
Sales and revenues, net	(325)		(514)		(717)		(1,023)
Income (Loss) from Continuing Operations Attributable to Parent	(216)		(52)		(353)		(126)
Income tax benefit (expense)	(22)		123		(37)		199
Segment profit (loss)	(194)		(175)		(316)		(325)
Depreciation and amortization	5	[1]	5	[1]	12	[1]	10	[1]
Interest expense	73		40		129		76
Equity in loss of non-consolidated affiliates	0		0		0		0
Capital expenditures	$ 2	[1],[2]	$ 15	[1],[2]	$ 5	[1],[2]	$ 54	[1],[2]

[1] Includes amounts related to discontinued operations. For more information, see Note 2, Discontinued Operations and Other Divestitures.

[2] Exclusive of purchases of equipment leased to others.

[3] Total sales and revenues in the Financial Services segment include interest revenues of $46 million and $93 million for the three and six months ended April 30, 2013, respectively, and $56 million and $114 million for three and six months ended April 30, 2012, respectively.

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Stockholders' Deficit

6 Months Ended

Apr. 30, 2013

Equity [Abstract]

Stockholders' Deficit

Stockholders' Deficit

October 2012 Issuance of Common Stock

In October 2012, the Company completed a public offering of 10,666,666 shares of NIC common stock at a price of $18.75 per share and received proceeds, net of underwriting discounts, commissions, and offering expenses, of $192 million. In connection with the public offering, in November 2012, the underwriters elected to exercise a portion of an over-allotment option and purchased an additional 763,534 shares of NIC common stock at a price of $18.75 per share. The Company received proceeds from the exercise of the over-allotment, net of underwriting discounts and commissions, of $14 million in the three months ended January 31, 2013.

Share Repurchase Programs

In September 2011, a special committee of our Board of Directors authorized a share repurchase program for up to $175 million worth of the Company's common stock in the open market or in any private transaction.

In October 2011, the Company entered into a variable term accelerated share repurchase ("ASR") agreement with a third-party financial institution to purchase shares of common stock for an aggregate purchase price of $100 million. Under the ASR agreement, the Company paid the financial institution $100 million and received an initial delivery of 2,380,952 shares. The value of the delivered shares on the date of purchase was $80 million at $33.60 per share, and was included in Common stock held in treasury in our Consolidated Balance Sheets. The remaining $20 million was included in Additional paid in capital in our Consolidated Balance Sheets as of October 31, 2011.

In November 2011, the ASR program concluded and the Company received an additional 161,657 shares for a total of 2,542,609 shares. The final settlement was based upon the volume weighted average price of the Company's common stock (subject to a discount agreed upon with the financial institution) over an averaging period. With the conclusion of the agreement, the remaining $20 million included in Additional paid in capital was reclassified to Common stock held in treasury.

In October 2011, the Company entered into an open market share repurchase ("OMR") agreement with a third-party financial institution to purchase the remaining $75 million worth of the Company's common stock authorized by a special committee of our Board of Directors in September 2011. The OMR commenced in November 2011, following the completion of the ASR program. In January 2012, the OMR concluded with the Company repurchasing 1,905,600 shares of our common stock. Repurchases of $70 million were settled in cash during the three months ended January 31, 2012, and the remaining $5 million was settled in cash during the three months ended April 30, 2012. The share repurchase program expired upon its completion.

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Commitments and Contingencies

6 Months Ended

Apr. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Guarantees

We occasionally provide guarantees that could obligate us to make future payments if the primary entity fails to perform under its contractual obligations. We have recognized liabilities for some of these guarantees in our Consolidated Balance Sheets as they meet the recognition and measurement provisions of U.S. GAAP. In addition to the liabilities that have been recognized, we are contingently liable for other potential losses under various guarantees. We do not believe that claims that may be made under such guarantees would have a material effect on our financial condition, results of operations, or cash flows.

In March 2010, we entered into a three-year operating agreement (with one-year automatic extensions and subject to early termination provisions) with GE (the "GE Operating Agreement"). Under the terms of the GE Operating Agreement, GE became our preferred source of retail customer financing for equipment offered by us and our dealers in the U.S. We provide GE a loss sharing arrangement for certain credit losses. The primary features of the loss sharing arrangement include us reimbursing GE for credit losses in excess of the first 10% of the original value of a financed contract. The Company’s exposure to loss is mitigated since receivables financed under the GE Operating Agreement are secured by the financed equipment. We do not carry the receivables financed under the GE Operating Agreement on our Consolidated Balance Sheets. There were $1.3 billion and $1.2 billion of outstanding finance receivables as of April 30, 2013 and October 31, 2012, respectively, financed through the GE Operating Agreement and subject to the loss sharing arrangement. The related originations of these outstanding finance receivables were $1.8 billion and $1.6 billion as of April 30, 2013 and October 31, 2012, respectively. Related to certain third-party equipment financings by GE and for which we have accounted for as borrowings, we have recognized equipment leased to others of $185 million and financed lease obligations of $209 million included in our Consolidated Balance Sheets as of April 30, 2013. For more information, see Note 1, Summary of Significant Accounting Policies.

Based on our historic experience of losses on similar finance receivables and GE’s first loss position, we do not believe our share of losses related to balances currently outstanding will be material. Historically, our losses, representing the entire loss amount, on similar finance receivables, measured as a percentage of the average balance of the related finance receivable, ranged from 0.3% to 2.1%. While under limited circumstances NFC retains the rights to originate retail customer financing, we expect retail finance receivables and retail finance revenues will continue to decline as our retail portfolio pays down.

For certain independent dealers’ wholesale inventory financed by third-party banks or finance companies, we provide limited repurchase agreements to the respective financing institution. The amount of losses related to these arrangements has not been material to our Consolidated Statements of Operations or Condensed Consolidated Statements of Cash Flows and the value of the guarantees and accruals recorded are not material to our Consolidated Balance Sheets.

We also have issued limited residual value guarantees in connection with various leases primarily financed by our financial services operations. The amounts of the guarantees are estimated and recorded. Our guarantees are contingent upon the fair value of the leased assets at the end of the lease term. The amount of losses related to these arrangements has not been material to our Consolidated Statements of Operations or Condensed Consolidated Statements of Cash Flows and the value of the guarantees and accruals recorded are not material to our Consolidated Balance Sheets.

We obtain certain stand-by letters of credit and surety bonds from third-party financial institutions in the ordinary course of business when required under contracts or to satisfy insurance-related requirements. The amount of available stand-by letters of credit and surety bonds was $62 million at April 30, 2013.

We extend credit commitments to certain truck fleet customers, which allow them to purchase parts and services from participating dealers. The participating dealers receive accelerated payments from us with the result that we carry the receivables and absorb the credit risk related to these customers. At April 30, 2013, we have $35 million of unused credit commitments outstanding under this program.

In addition, as of April 30, 2013, we have entered into various purchase commitments of $35 million and contracts that have cancellation fees of $224 million with various expiration dates through 2019.

In the ordinary course of business, we also provide routine indemnifications and other guarantees, the terms of which range in duration and often are not explicitly defined. We do not believe these will result in claims that would have a material impact on our financial condition, results of operations, or cash flows.

The terms of the Ford/Navistar Settlement Agreement of January 9, 2009 (as defined and described below) require us to indemnify Ford with respect to intellectual property infringement claims, if any, that are brought against Ford or others that use the 6.0 liter or 6.4 liter engines on behalf of Ford. The maximum amount of future payments that we could potentially be required to pay under the indemnification would depend on the magnitude of potential infringement claims and the associated damages and cannot currently be determined. For more information, see Kruse vs. Ford, below.

Environmental Liabilities

We have been named a potentially responsible party ("PRP"), in conjunction with other parties, in a number of cases arising under an environmental protection law, the Comprehensive Environmental Response, Compensation, and Liability Act, popularly known as the "Superfund" law. These cases involve sites that allegedly received wastes from current or former Company locations. Based on information available to us which, in most cases, consists of data related to quantities and characteristics of material generated at current or former Company locations, material allegedly shipped by us to these disposal sites, as well as cost estimates from PRPs and/or federal or state regulatory agencies for the cleanup of these sites, a reasonable estimate is calculated of our share of the probable costs, if any, and accruals are recorded in our consolidated financial statements. These accruals are generally recognized no later than upon completion of the remedial feasibility study and are not discounted to their present value. We review all accruals on a regular basis and believe that, based on these calculations, our share of the potential additional costs for the cleanup of each site will not have a material effect on our financial condition, results of operations, or cash flows.

Three sites formerly owned by us; (i) Solar Turbines in San Diego, California, (ii) the Canton Plant in Canton, Illinois, and (iii) Wisconsin Steel in Chicago, Illinois; were identified as having soil and groundwater contamination. Two sites in Sao Paulo, Brazil, where we are currently operating, were identified as having soil and groundwater contamination. While investigations and cleanup activities continue at these and other sites, we believe that we have adequate accruals to cover costs to complete the cleanup of all sites.

We have accrued $24 million for these and other environmental matters, which are included within Other current liabilities and Other noncurrent liabilities, as of April 30, 2013. The majority of these accrued liabilities are expected to be paid subsequent to 2013.

Along with other vehicle manufacturers, we have been subject to an increased number of asbestos-related claims in recent years. In general, these claims relate to illnesses alleged to have resulted from asbestos exposure from component parts found in older vehicles, although some cases relate to the alleged presence of asbestos in our facilities. In these claims, we are generally not the sole defendant, and the claims name as defendants numerous manufacturers and suppliers of a wide variety of products allegedly containing asbestos. We have strongly disputed these claims, and it has been our policy to defend against them vigorously. Historically, the actual damages paid out to claimants have not been material in any year to our financial condition, results of operations, or cash flows. It is possible that the number of these claims will continue to grow, and that the costs for resolving asbestos related claims could become significant in the future.

Legal Proceedings

Overview

We are subject to various claims arising in the ordinary course of business, and are party to various legal proceedings that constitute ordinary, routine litigation incidental to our business. The majority of these claims and proceedings relate to commercial, product liability, and warranty matters. In addition, from time to time we are subject to various claims and legal proceedings related to employee compensation, benefits, and benefits administration including, but not limited to, compliance with the Employee Retirement Income Security Act of 1974, as amended, and Department of Labor requirements. In our opinion, apart from the actions set forth below, the disposition of these proceedings and claims, after taking into account recorded accruals and the availability and limits of our insurance coverage, will not have a material adverse effect on our business or our financial condition, results of operations, or cash flows.

Retiree Health Care Litigation

In April 2010, the UAW and others ("Plaintiffs") filed a "Motion of Plaintiffs Art Shy, UAW, et al for an Injunction to Compel Compliance with the 1993 Settlement Agreement" (the "Shy Motion") in the U.S. District Court for the Southern District of Ohio (the "Court") relating to a 1993 settlement agreement concerning postretirement healthcare obligations (the "1993 Settlement Agreement"). The Shy Motion sought to enjoin the Company from implementing an administrative change relating to prescription drug benefits under a healthcare plan for Medicare-eligible retirees (the "Part D Change"). Specifically, Plaintiffs claimed that the Part D Change violated the terms of the 1993 Settlement Agreement previously approved by the Court. That 1993 Settlement Agreement resolved a class action originally filed in 1992 regarding the restructuring of the Company's then applicable retiree health care and life insurance benefits. In May 2010, the Company filed its Opposition to the Shy Motion.

The Part D Change was effective July 1, 2010, and made the Company's prescription drug coverage for post-age 65 retirees ("Plan 2 Retirees") supplemental to the coverage provided by Medicare. Plan 2 retirees paid the premiums for Medicare Part D drug coverage under the Part D Change.

In February 2011, the Court ruled on the Shy Motion (the "February 2011 Order"). The February 2011 Order sustained the Plaintiffs' argument that the Company did not have authority to unilaterally substitute Medicare Part D for the prescription drug benefit that Plaintiffs had been receiving under the 1993 Settlement Agreement. However, the February 2011 Order denied as moot Plaintiffs' request for injunctive relief to prevent the Company from implementing the Part D Change, because the change already had gone into effect. In February 2011, the Company filed a notice of appeal with the United States Court of Appeals for the Sixth Circuit (the "Appellate Court") concerning the February 2011 Order.

In September 2011, the Court issued an order directing the Company to reinstate the prescription drug benefit that was in effect before the Company unilaterally substituted Medicare Part D for the prior prescription drug benefit (the "September 2011 Order"). The September 2011 Order also requires the Company to reimburse Plan 2 Retirees for any Medicare Part D premiums they have paid since the Part D Change and the extra cost, if any, for the retirees' prescriptions under the Part D Change. In October 2011, the Company filed a notice of appeal with the Appellate Court concerning the September 2011 Order. The Appellate Court consolidated the Company's appeal of the February 2011 Order and the September 2011 Order, and in December 2012, the Appellate Court denied the Company's appeal, affirming the February 2011 and September 2011 Orders.

FATMA Notice

International Indústria de Motores da América do Sul Ltda. ("IIAA"), formerly known as Maxion International Motores S/A ("Maxion"), now a wholly owned subsidiary of the Company, received a notice in July 2010 from the State of Santa Catarina Environmental Protection Agency ("FATMA") in Brazil. The notice alleged that Maxion had sent wastes to a facility owned and operated by a company known as Natureza and that soil and groundwater contamination had occurred at the Natureza facility. The notice asserted liability against Maxion and assessed an initial penalty in the amount of R$2 million (the equivalent of approximately US$1 million at April 30, 2013), which is not due and final until all administrative appeals are exhausted. Maxion was one of numerous companies that received similar notices. IIAA filed an administrative defense in August 2010 and has not yet received a decision following that appearance. IIAA disputes the allegations in the notice and intends to vigorously defend itself.

Kruse vs. Ford

We have been made aware of the Kruse Technology Partnership ("Kruse") vs. Ford lawsuit (the "Kruse Case") filed against Ford regarding a potential patent infringement of three patents in the U.S. District Court for the Central District of California. An amended complaint against Ford was filed by Kruse in August 2010. The amended complaint alleges that Ford has infringed the patents by sale or use of engines, such as the Power Stroke diesel engines. Navistar formerly supplied Power Stroke diesel engines to Ford, although today Ford manufactures its own Power Stroke engines. In the Ford/Navistar Settlement Agreement of January 9, 2009, Navistar agreed to indemnify Ford for claims of infringement based upon Ford's manufacture, sale, or use of the 6.0 and 6.4 liter Power Stroke engines sold by Navistar to Ford. Ford has not requested Navistar to defend Ford at this time. The judge assigned to the Kruse Case has stayed the case pending resolution of a similar suit against Daimler Chrysler, Detroit Diesel, Freightliner, Western Star, Volkswagen, Cummins, and Chrysler Group. In November 2011, Kruse disclaimed all the claims in one of the patents (U.S. Patent 6,405,704), which effectively terminates the patent rights for this patent. The U.S. Patent Office ended the first re-examinations on the two remaining patents (U.S. Patent 6,058,904 and U.S. Patent 5,265,562), and ruled that these will be in force with all claims intact. The U.S. Patent Office agreed to commence a new re-examination of U.S. Patent 6,058,904 in April 2012 and U.S. Patent 5,265,562 in May 2012 as a result of third-party requests based upon substantial new questions of patentability. In July 2012, the U.S. Patent Office issued a Notice of Intent to allow all the claims in the two remaining Kruse patents, hence ending the second round of re-examination. Both patents expired on July 27, 2012. However, Kruse could still sue for any infringement prior to that date.

Based on our assessment of the facts underlying the claims in the above action, we are unable to provide meaningful quantification of how the final resolution of these claims may impact our future consolidated financial condition, results of operations, or cash flows.

Lis Franco de Toledo, et. al. vs. Syntex do Brasil and IIAA

In 1973, Syntex do Brasil Industria e Comercio Ltda. ("Syntex"), a predecessor of International Indústria de Motores da América do Sul Ltda. ("IIAA"), our Brazilian engine manufacturing subsidiary formerly known as MWM International Industria de Motores da America do Sul Ltda ("MWM"), filed a lawsuit in Brazilian court against Dr. Lis Franco de Toledo and others (collectively, "Lis Franco"). Syntex claimed Lis Franco had improperly terminated a contract which provided for the transfer from Lis Franco to Syntex of a patent for the production of a certain vaccine. Lis Franco filed a counterclaim alleging that he was entitled to royalties under the contract. In 1975, the Brazilian court ruled in favor of Lis Franco, a decision which was affirmed on appeal in 1976. In 1984, while the case was still pending, Syntex’ owner, Syntex Comercio e Participacoes Ltds ("Syntex Parent") sold the stock of Syntex to MWM, and in connection with that sale Syntex Parent agreed to indemnify and hold harmless MWM for any and all liabilities of Syntex, including its prior pharmaceutical operations (which had been previously spun-off to another subsidiary wholly-owned by the Syntex Parent) and any payments that might be payable under the Lis Franco lawsuit. In the mid to late 1990s, Syntex Parent was merged with an entity known as Wyeth Industria Farmaceutica LTDA ("Wyeth").

In 1999, Lis Franco amended its pleadings to add MWM to the lawsuit as a defendant. In 2000, Wyeth acknowledged to the Brazilian court its sole responsibility for amounts due in the Lis Franco lawsuit and MWM asked the court to be dismissed from that action. The judge denied that request. MWM appealed and lost.

In his pleadings, Lis Franco alleged that the royalties payable to him were approximately R$42 million. MWM believed the appropriate amount payable was approximately R$16 million. In December 2009, the court appointed expert responsible for the preparation of the royalty calculation filed a report with the court indicating royalty damages of approximately R$70 million. MWM challenged the expert’s calculation. In August 2010, the court asked the parties to consider the appointment of a new expert. MWM agreed with this request but Lis Franco objected and, in September 2010, the court accepted and ratified the expert’s calculation as of May 2010 in the amount of R$74 million and entered judgment against MWM.

In September 2010, MWM filed a motion for clarification of the decision which would suspend its enforcement. The Brazilian court denied this motion and MWM appealed the matter to the Rio de Janeiro State Court of Appeals (the "Court of Appeals"). In January 2011, the Court of Appeals granted the appeal and issued an injunction suspending the lower Court’s decision and judgment in favor of Lis Franco. In January 2011, MWM merged into IIAA and is now known as IIAA. An expert appointed by the Court of Appeals submitted his calculation report on October 24, 2011, and determined the amount to be R$10.85 million. The parties submitted comments to such report in December 2011, the expert replied to these comments and ratified his previous report in May 2012, and the parties again submitted comments to the expert's reply. The expert reviewed these comments and submitted a complementary report in December 2012 which determined the amount to be R$22 million (the equivalent of approximately US$11 million at April 30, 2013). The parties submitted comments to the complementary report in January 2013 and the Court of Appeals is now reviewing the expert’s complementary report and the parties' comments to that report.

In parallel, in May 2010, MWM filed a lawsuit in Sao Paulo, Brazil, against Wyeth seeking recognition that Wyeth is liable for any and all liabilities, costs, expenses, and payments related to the Lis Franco lawsuit. In September 2012, the Sao Paulo court ruled in favor of MWM and ordered Wyeth to pay, directly to the Estate of Lis Franco de Toledo and others and jointly with MWM, the amounts of the condemnation, to be determined at the end of the liquidation proceeding. The Sao Paulo court also ordered Wyeth to reimburse MWM for all expenses, including court costs and attorney fees associated with the case. The parties were notified of the decision in October 2012, to which MWM and Wyeth filed motions for clarification of certain issues, and in December 2012, the Sao Paulo court rejected both motions. In January 2013, Wyeth filed an appeal to the San Paulo court's December 2012 decision, and in April 2013, MWM filed an answer to the appeal.

In May 2013, the Court of Appeals determined the damages amount to be R$25 million (the equivalent of approximately US$13 million at April 30, 2013).

Deloitte & Touche LLP

In April 2011, the Company filed a complaint against Deloitte and Touche LLP ("Deloitte") in the Circuit Court of Cook County, Illinois County Department, Law Division ("Illinois Circuit Court") for fraud, fraudulent concealment, negligent misrepresentation, violation of the Illinois Consumer Fraud and Deceptive Business Practices Act, professional malpractice, negligence, breach of contract, and breach of fiduciary duty (the "Deloitte Case"). The matters giving rise to the allegations contained in the complaint arise from Deloitte's service as the Company's independent auditor prior to April 2006 and the Company is seeking monetary damages against Deloitte. In May 2011, Deloitte filed a Notice of Removal to remove the case to the United States District Court for the Northern District of Illinois. In June 2011, the Company filed in the federal court a motion to remand the case to Illinois Circuit Court. In July 2011, Deloitte filed a motion to dismiss the Company's complaint and in August 2011, the Company responded to Deloitte's motion to dismiss. In October 2011, the court remanded the case back to the Illinois Circuit Court and denied the motion to dismiss as moot. The Company amended its complaint in January 2012 in Illinois Circuit Court. In February 2012, Deloitte moved to dismiss the Company's amended complaint. In July 2012, the Illinois Circuit Court granted in part and denied in part Deloitte's motion to dismiss. Specifically, the Illinois Circuit Court dismissed without prejudice with leave to re-plead the Company's counts for fraud, fraudulent concealment and breach of fiduciary duty and otherwise denied Deloitte's motion with respect to the remaining causes of action. In December 2012, the parties reached a settlement. As a result of this settlement, in the three months ended January 31, 2013, the Company received cash proceeds of $35 million, which was recorded as a gain to Other expense (income), net, in the Company's Consolidated Statements of Operations.

Westbrook vs. Navistar. et. al.

In April 2011, a False Claims Act qui tam complaint against Navistar, Inc., Navistar Defense, LLC, a wholly owned subsidiary of the Company ("Navistar Defense"), and unrelated third parties was unsealed by the United States District Court for the Northern District of Texas. The complaint was initially filed under seal in August 2010 by a qui tam relator ("Westbrook") on behalf of the federal government. The complaint alleged violations of the False Claims Act based on allegations that parts of vehicles delivered by Navistar Defense were not painted according to the contract specification, and improper activities in dealing with one of the vendors who painted certain of the vehicle parts. The complaint seeks monetary damages and civil penalties on behalf of the federal government, as well as costs and expenses. After the complaint was unsealed, the U.S. government notified the Court that it declined to intervene at that time. Navistar, Inc. was served with the complaint in July 2011, and a scheduling order and a revised scheduling order was entered by the Court. In December 2011, the Court granted a motion by Navistar, Inc. and Navistar Defense, along with the other named defendants to judicially estop Westbrook and his affiliated company from participating in any recovery from the action, and to substitute his bankruptcy trustee as the only person with standing to pursue Westbrook's claims. In March 2012, the Court granted motions by Navistar, Inc., Navistar Defense, and the other named defendants to dismiss the complaint. The dismissal was without prejudice and Westbrook filed an amended complaint in April 2012. In May 2012, Navistar, Inc., Navistar Defense, and the other named defendants filed motions to dismiss the amended complaint. In addition, the parties jointly filed a motion to stay discovery pending resolution of the motions to dismiss. In July 2012, the court granted all of the defendants' motions to dismiss with prejudice, dismissing all of the claims except the claim against Navistar Defense for retaliation and the claim against Navistar, Inc. for retaliation, which was dismissed without prejudice. Plaintiff was granted leave to file an amended complaint including only the retaliation claims against Navistar Defense and Navistar, Inc. Westbrook did not file a retaliation claim against Navistar, Inc. and voluntarily dismissed without prejudice the retaliation claim against Navistar Defense. Westbrook also filed a motion for reconsideration of the dismissal of the False Claims Act claims against Navistar Defense which the court denied. The court issued final judgment dismissing the matter in July 2012. Westbrook filed a notice of appeal to the Fifth Circuit Court of Appeals ("Fifth Circuit") in August 2012 as to the Final Judgment and the Motion for Reconsideration as to Navistar Defense only. Westbrook filed a separate notice of appeal to the Fifth Circuit in August 2012 as to several district court orders, including the December 2011 order holding the Trustee, not Westbrook, to be the proper party in the case. In December 2012, Navistar Defense's Motion to Dismiss Westbrook's appeal was denied "without prejudice to reconsideration by the oral argument panel" by the Fifth Circuit.

Based on our assessment of the facts underlying the claims in the above action, we are unable to provide meaningful quantification of how the final resolution of these claims may impact our future consolidated financial condition, results of operations, or cash flows.

EPA Notice of Violation

In February 2012, Navistar, Inc. received a Notice of Violation ("NOV") from the U.S. Environmental Protection Agency ("EPA"). The NOV pertains to approximately 7,600 diesel engines which, according to EPA, were produced by Navistar, Inc. in 2010 and, therefore, should have met EPA's 2010 emissions standards. Navistar, Inc. previously provided information to EPA showing that the engines were in fact produced in 2009. The NOV contains EPA's conclusion that Navistar, Inc.'s alleged production of the engines in 2010 violated the Federal Clean Air Act. The NOV states that EPA reserves the right to file an administrative complaint or to refer this matter to the U.S. Department of Justice with a recommendation that a civil complaint be filed in federal district court. 

Based on our assessment of the facts underlying the NOV above, we are unable to provide meaningful quantification of how the final resolution of this matter may impact our future consolidated financial condition, results of operations or cash flows.

CARB Notice of Violation

In April 2013, Navistar, Inc. received a notice of violation and proposed settlement (“Notice”) from the California Air Resources Board (“CARB”). The Notice alleges violations of the California regulations relating to verification of after-treatment devices and proposed civil penalties of approximately $2 million, among other proposed settlement terms. The Company is in discussions with the CARB regarding this matter.

Based on our assessment of the facts underlying the Notice from CARB, we are unable to provide meaningful quantification of how the final resolution of this matter may impact our future consolidated financial condition, results of operations or cash flows.

Shareholder Litigation

In March 2013, a putative class action complaint, alleging securities fraud, was filed against us by the Construction Workers Pension Trust Fund - Lake County and Vicinity, on behalf of itself and all other similarly situated purchasers of our common stock between the period of November 3, 2010 and August 1, 2012. A second class action complaint was filed in April 2013 by the Norfolk County Retirement System, individually and on behalf of all other similarly situated purchasers of our common stock between the period of June 9, 2010 and August 1, 2012. A third class action complaint was filed in April 2013 by Jane C. Purnell FBO Purnell Family Trust, on behalf of itself and all other similarly situated purchasers of our common stock between the period of November 3, 2010 and August 1, 2012. Each complaint named us as well as Daniel C. Ustian, our former President and Chief Executive Officer, and Andrew J. Cederoth, our current Executive Vice President and Chief Financial Officer as defendants. These complaints (collectively, the "10b-5 Cases") contain similar factual allegations which include, among other things, that we violated the federal securities laws by knowingly issuing materially false and misleading statements concerning our financial condition and future business prospects and that we misrepresented and omitted material facts in filings with the SEC concerning the timing and likelihood of EPA certification of our Advanced Exhaust Gas Recirculation ("EGR") technology to meet 2010 EPA emission standards. The plaintiffs in these matters seek compensatory damages and attorneys' fees, among other relief. In May 2013, motions to establish lead counsel status for the putative class were filed and an order was entered transferring and consolidating all cases before one judge and setting a briefing schedule to establish lead counsel status.

In March 2013, James Gould filed a derivative complaint on behalf of the Company against us and certain of our current and former directors and officers. The complaint alleges, among other things, that certain of our current and former directors and officers committed a breach of fiduciary duty, waste of corporate assets and were unjustly enriched in relation to similar factual allegations made in the 10b-5 Cases. The plaintiff in this matter seeks compensatory damages, certain corporate governance reforms, certain injunctive relief, disgorgement of the proceeds of certain defendants' profits from the sale of Company stock, and attorneys' fees, among other relief. Pursuant to a court order in May 2013, this matter has been stayed until the outcome of any motion to dismiss in the 10b-5 Cases.

Each of these matters is pending in the United States District Court, Northern District of Illinois.

Based on our assessment of the facts underlying these matters described above, we are unable to provide meaningful quantification of how the final resolution of these matters may impact our future consolidated financial condition, results of operations or cash flows.

6.4 Liter Diesel Engine Litigation

Plaintiff Steve Darne ("Darne") filed a putative class action lawsuit in May 2013 against Navistar, Inc. and Ford Motor Company in the federal court for the Northern District of Illinois. The complaint seeks to certify a class of United States owners and lessees of Ford vehicles powered by the 6.4L Power Stroke ® engine (and in the alternative purports to certify a class of Illinois owners and lessees) that Navistar, Inc. previously supplied to Ford. Darne alleges that Ford vehicles equipped with a 6.4L engine had numerous design and manufacturing defects and that Navistar, Inc. and Ford knew of such engine problems but failed to disclose them to consumers. Darne asserts claims against Navistar, Inc. based on theories of negligence, deceptive trade practices, consumer fraud, unjust enrichment, and intentional conduct. For relief, Darne seeks dollar damages sufficient to remedy the alleged defects, compensate the proposed class members for alleged incurred damages, and compensate plaintiff's counsel. Darne also asks the Court to award punitive damages and restitution/disgorgement.

Based on our assessment of the facts underlying the claims in the above action, we are unable to provide meaningful quantification of how the final resolution of these claims may impact our future consolidated financial condition, results of operations, or cash flows.

Other

U.S. Securities and Exchange Commission ("SEC") Inquiry

In June 2012, Navistar received an informal inquiry from the Chicago Office of the Enforcement Division of the SEC seeking a number of categories of documents for the periods dating back to November 1, 2010, relating to various accounting and disclosure issues. We received a formal order of private investigation in July 2012. We have received subsequent subpoenas from the SEC in connection with their inquiry, and we continue our full cooperation with the SEC in this matter. At this time, we are unable to predict the outcome of this matter or provide meaningful quantification of how the final resolution of this matter may impact our future consolidated financial condition, results of operations or cash flows.

Meeting U.S. Federal and State 2010 Emissions Standards Requirements

Truck and engine manufacturers continue to face significant governmental regulation of their products, especially in the areas of environment and safety. We have incurred, and will continue to incur, significant research, development, and tooling costs to design and produce our engine product lines to meet the EPA and CARB on-highway heavy duty diesel ("HDD") emission standards that have reduced the allowable levels of nitrogen oxide ("NOx") to the current limit of 0.20g NOx and include the required on-board diagnostics ("OBD"). The regulations requiring OBD began the initial phase-in during 2010 for truck engines and are a part of our product plans.

We attempted to meet these emissions standards using EGR until July 2012, when we announced that we changed our engine emission strategy for our HDD engines from an EGR-only strategy to a strategy of combining our EGR technology with Selective Catalytic Reduction ("SCR") after-treatment systems.

Since 2010, certain of our HDD engine families met EPA and CARB certification requirements by using emission credits we earned by producing low-NOx engines earlier than was required by the EPA. In January 2012, the EPA promulgated the Interim Final Rule establishing non-conformance penalties ("NCPs") for HDD engines, and we began using NCPs for trucks using certain of our HDD engines in 2012. In June 2012, the D.C. Circuit Court ruled that the EPA did not follow the required rulemaking processes and issued an order vacating the Interim Final Rule. The Company, as an intervenor in that action, asked for a rehearing, and in August 2012, the D.C. Circuit Court denied that request. The Court's ruling became final on August 24, 2012. Following that decision, some of our competitors filed a lawsuit asking the D.C. Circuit Court to invalidate the emission certificates issued to us under the Interim Final Rule. The D.C. Circuit Court has not yet ruled on this matter, and we cannot assure you that the court will rule in our favor.

Also in January 2012, the EPA published a Notice of Proposed Rulemaking for a final NCP rule (the "Final Rule"), which proposed to make NCPs available in model years 2012 and later for emissions of NOx above the 0.20g limit for both medium and heavy HDD engines. The EPA approved the Final Rule for heavy HDD engines on September 5, 2012, and indicated that it was still reviewing comments and data, and thus would not finalize NCPs at that time as to medium HDD engines, for which the Company has emissions credits expected to last into calendar year 2014. After approval of the Final Rule, the maximum NCP per heavy HDD engine was $3,775 for the remainder of 2012, and for 2013, it was adjusted to $4,287. Some of our competitors have challenged the Final Rule in the D.C. Circuit Court and have also filed a lawsuit asking the D.C. Circuit Court to invalidate the model year 2013 emission certificates issued to us under the Final Rule. The court has not yet ruled on these matters, and we cannot assure you the court will rule in our favor. 

In October 2012, we announced a definitive agreement with Cummins under which Cummins Emission Solutions will supply its SCR after-treatment system for our 13L engines, as well as other light and medium HDD engines. As a part of our expanded relationship with Cummins, we are offering the Cummins 15L as a part of our North American on-highway truck line-up. We phased in the Cummins 15L engine in December 2012.

In April 2013, we received EPA certification for certain of our high-volume 13L SCR engines. We anticipate phasing in our lower volume 13L SCR engines throughout 2013 in stages. Also in April 2013, we received OBD certification for all current applications. As a result, we did not experience any production gaps related to OBD certification.

CARB, and the corresponding agencies of nine other states that have adopted California's emission standards, do not allow engine certification using NCPs. Therefore, we were selling engines and trucks in these ten states (the "10 CARB States") using the NOx emission credits previously described. In February 2013, our remaining emission credits for heavy HDD engines were consumed or allocated to received orders. Production utilizing those credits is scheduled throughout the remainder of calendar year 2013. We may experience product gaps in the 10 CARB States for certain of the lower volume 13L EGR engines prior to full introduction of our SCR engines.

In the three and six months ended April 30, 2013, the Engine segment recorded charges totaling $12 million and $22 million, respectively, for NCPs for certain engine sales that did not otherwise comply with emissions standards, compared to charges totaling $10 million in both the three and six months ended April 30, 2012.

XML

Document and Entity Information Document	6 Months Ended
	Apr. 30, 2013	May 31, 2013
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
Trading Symbol	nav
Entity Registrant Name	NAVISTAR INTERNATIONAL CORP
Entity Central Index Key	0000808450
Current Fiscal Year End Date	--10-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		80,398,928

XML

Segment Reporting

6 Months Ended

Apr. 30, 2013

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The following is a description of our four reporting segments:

• Our Truck segment manufactures and distributes a full line of Class 4 through 8 trucks, buses, and military vehicles under the International and IC Bus ("IC") brands. Our Truck segment also produces concrete mixers under the Continental Mixers brand. In an effort to strengthen and maintain our dealer network, this segment occasionally acquires and operates dealer locations for the purpose of transitioning ownership.

• Our Engine segment designs and manufactures diesel engines for use globally, in Class 3 through 8 vehicles, as well as off-road applications. In North America, these engines primarily go into our trucks and buses. In Brazil, our Engine segment produces diesel engines, primarily under contract manufacturing arrangements, as well as under the MWM brand, for sale to OEMs in South America. In all other areas of the world, including North America, engines are sold under the MaxxForce brand name. Also included in the Engine segment are the operating results of BDP, which manages the sourcing, merchandising, and distribution of certain service parts we sell to Ford in North America.

• Our Parts segment provides customers with proprietary products needed to support the International commercial and military truck, IC Bus, MaxxForce engine lines, as well as our other product lines. Our Parts segment also provides a wide selection of other standard truck, trailer, and engine aftermarket parts. At April 30, 2013, this segment operated eleven regional parts distribution centers that provide 24-hour availability and shipment.

• Our Financial Services segment provides retail, wholesale, and lease financing of products sold by the Truck and Parts segments and their dealers within the U.S. and Mexico, as well as financing for wholesale accounts and selected retail accounts receivable.

Corporate contains those items that are not included in our four segments.

Potential Future Changes to Reporting Segments

Beginning in 2012, we renewed our focus on our primary markets, which are North American Class 4 through 8 trucks and buses, and realigned the Company around a more functionally-oriented structure in order to reduce overhead expenses and other costs. We implemented a new Return-on-Invested-Capital ("ROIC") methodology to assist with the evaluation of our portfolio of assets to validate their strategic and financial fit. We are using an ROIC decision framework to re-examine our individual businesses. This effort is ongoing, and may lead to divestitures of businesses or discontinuing engineering programs that are outside of our core operations or not performing to our expectations.

In the second quarter of 2013, our Chief Operating Decision Maker ("CODM") changed. We continue our ongoing efforts of realigning our management structure around the functional expertise needed to execute our core North American strategy. We believe this realignment will result in better execution of our strategies, streamline the decision making process, create better alignment towards a common objective, and reduce our operating costs. In the near future, we expect to complete these and any other changes to our organizational and reporting structures that will reflect how our new CODM will begin to assess the performance of our operating segments and make decisions about resource allocations.

Segment Profit (Loss)

We define segment profit (loss) as Net income (loss) from continuing operations attributable to Navistar International Corporation excluding Income tax benefit (expense). Operating results for interim reporting periods are not necessarily indicative of annual operating results.

Beginning in the first quarter of 2013, the Company began reporting the operating results of WCC and certain operating results of Monaco as discontinued operations in the Company's Consolidated statements of operations. For more information, see Note 2, Discontinued Operations and Other Divestitures. The 2012 selected financial information has been restated to reflect this change.

The following tables present selected financial information for our reporting segments:

(in millions)	Truck			Engine			Parts		Financial Services(A)		Corporate and Eliminations			Total
Three Months Ended April 30, 2013
External sales and revenues, net	$	1,515		$	458		$	514	$	39	$	—		$	2,526
Intersegment sales and revenues	4			286			16		19		(325		)	—
Total sales and revenues, net	$	1,519		$	744		$	530	$	58	$	(325	)	$	2,526
Income (loss) from continuing operations attributable to NIC, net of tax	$	(109	)	$	(138	)	$	91	$	19	$	(216	)	$	(353	)
Income tax expense	—			—			—		—		(22		)	(22		)
Segment profit (loss)	$	(109	)	$	(138	)	$	91	$	19	$	(194	)	$	(331	)
Depreciation and amortization(B)	$	92		$	33		$	2	$	10	$	5		$	142
Interest expense	—			—			—		17		73			90
Equity in income (loss) of non-consolidated affiliates	—			1			3		—		—			4
Capital expenditures(B)(C)	16			16			—		1		2			35

(in millions)	Truck			Engine			Parts		Financial Services(A)		Corporate and Eliminations			Total
Three Months Ended April 30, 2012
External sales and revenues, net	$	2,316		$	440		$	462	$	43	$	—		$	3,261
Intersegment sales and revenues	2			454			34		24		(514		)	—
Total sales and revenues, net	$	2,318		$	894		$	496	$	67	$	(514	)	$	3,261
Income (loss) from continuing operations attributable to NIC, net of tax	$	(45	)	$	(108	)	$	41	$	26	$	(52	)	$	(138	)
Income tax benefit	—			—			—		—		123			123
Segment profit (loss)	$	(45	)	$	(108	)	$	41	$	26	$	(175	)	$	(261	)
Depreciation and amortization(B)	$	35		$	30		$	4	$	8	$	5		$	82
Interest expense	—			—			—		22		40			62
Equity in income (loss) of non-consolidated affiliates	(6		)	—			2		—		—			(4		)
Capital expenditures(B)(C)	16			36			5		1		15			73

(in millions)	Truck			Engine			Parts		Financial Services(A)		Corporate and Eliminations			Total
Six Months Ended April 30, 2013
External sales and revenues, net	$	3,171		$	870		$	1,044	$	78	$	—		$	5,163
Intersegment sales and revenues	26			614			38		39		(717		)	—
Total sales and revenues, net	$	3,197		$	1,484		$	1,082	$	117	$	(717	)	$	5,163
Income (loss) from continuing operations attributable to NIC, net of tax	$	(167	)	$	(165	)	$	177	$	41	$	(353	)	$	(467	)
Income tax expense	—			—			—		—		(37		)	(37		)
Segment profit (loss)	$	(167	)	$	(165	)	$	177	$	41	$	(316	)	$	(430	)
Depreciation and amortization(B)	$	134		$	72		$	5	$	19	$	12		$	242
Interest expense	—			—			—		35		129			164
Equity in income (loss) of non-consolidated affiliates	—			(1		)	4		—		—			3
Capital expenditures(B)(C)	31			69			1		1		5			107

(in millions)	Truck			Engine			Parts		Financial Services(A)		Corporate and Eliminations			Total
Six Months Ended April 30, 2012
External sales and revenues, net	$	4,427		$	860		$	896	$	87	$	—		$	6,270
Intersegment sales and revenues	13			893			69		48		(1,023		)	—
Total sales and revenues, net	$	4,440		$	1,753		$	965	$	135	$	(1,023	)	$	6,270
Income (loss) from continuing operations attributable to NIC, net of tax	$	(72	)	$	(228	)	$	91	$	53	$	(126	)	$	(282	)
Income tax benefit	—			—			—		—		199			199
Segment profit (loss)	$	(72	)	$	(228	)	$	91	$	53	$	(325	)	$	(481	)
Depreciation and amortization(B)	$	69		$	59		$	6	$	16	$	10		$	160
Interest expense	—			—			—		47		76			123
Equity in income (loss) of non-consolidated affiliates	(15		)	1			3		—		—			(11		)
Capital expenditures(B)(C)	32			76			12		2		54			176

(in millions)	Truck(B)		Engine		Parts		Financial Services		Corporate and Eliminations		Total
Segment assets, as of:
April 30, 2013	$	2,139	$	1,738	$	709	$	2,518	$	1,619	$	8,723
October 31, 2012	$	2,118	$	1,777	$	707	$	2,563	$	1,937	$	9,102

_________________________

(A) Total sales and revenues in the Financial Services segment include interest revenues of $46 million and $93 million for the three and six months ended April 30, 2013, respectively, and $56 million and $114 million for three and six months ended April 30, 2012, respectively.

(B) Includes amounts related to discontinued operations. For more information, see Note 2, Discontinued Operations and Other Divestitures.

(C) Exclusive of purchases of equipment leased to others.

XML

Fair Value Measurements - Financial Instruments Measured on Nonrecurring Basis (Details) (USD $) In Millions, unless otherwise specified	Apr. 30, 2013		Oct. 31, 2012
Impaired finance receivables with specific loss reserves [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Financing Receivable, Recorded Investment	$ 12	[1]	$ 14	[1]
Specific loss reserves on impaired finance receivables [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Specific loss reserve	7		9
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Finance Receivables Fair Value Disclosure	$ 5		$ 5

[1] Certain impaired finance receivables are measured at fair value on a nonrecurring basis. An impairment charge is recorded for the amount by which the carrying value of the receivables exceeds the fair value of the underlying collateral, net of remarketing costs. Fair values of the underlying collateral are determined by reference to dealer vehicle value publications adjusted for certain market factors.

XML

Fair Value Measurements - Level 3 Reconciliation (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended				6 Months Ended
	Apr. 30, 2013		Apr. 30, 2012		Apr. 30, 2013		Apr. 30, 2012
Guarantees [Member]
Fair Value Assets And Liablities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset (Liability) Beginning Value	$ (7)		$ (7)		$ (7)		$ (6)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	0	[1]	0	[1]	0	[1]	0	[1]
Fair Value, Level 3 Transfers out, Description	0		0		0		0
Issuances	0		0		0		(1)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	0		0		0		0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset (Liability) Ending Value	(7)		(7)		(7)		(7)
Fair Value Change in Unrealized Gains on Assets and Liabilities Still Held	0		0		0		0
Commodity Contract [Member]
Fair Value Assets And Liablities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset (Liability) Beginning Value	0		0		0		(2)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	0	[1]	0	[1]	0	[1]	(1)	[1]
Fair Value, Level 3 Transfers out, Description	0		0		0		2
Issuances	0		0		0		0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	0		0		0		1
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset (Liability) Ending Value	0		0		0		0
Fair Value Change in Unrealized Gains on Assets and Liabilities Still Held	$ 0		$ 0		$ 0		$ 0

[1] For commodity contracts, losses are included in Cost of products sold.