EX-99.1 8 navex9914302013.htm ADDITIONAL FINANCIAL INFORMATION (UNAUDITED) NAV EX 99.1 4.30.2013


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