EX-99.1 13 navex99110312013.htm ADDITIONAL FINANCIAL INFORMATION (UNAUDITED) NAV EX 99.1 10.31.2013


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 operations with our Financial Services operations on an after-tax equity basis. Our Manufacturing operations, for this purpose, include our North America Truck segment, North America Parts segment, Global Operations segment, and Corporate items. The Manufacturing operations financial information represents non-GAAP financial measures. These non-GAAP financial measures should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP. The reconciling differences between these non-GAAP financial measures and our U.S. GAAP condensed consolidated financial statements in Item 1, Financial Statements, are our Financial Services operations, which are included on an after-tax equity basis. Certain of our subsidiaries in our Manufacturing operations have debt outstanding with our Financial Services operations (“intercompany debt”). In the condensed statements of assets, liabilities, and stockholders' equity (deficit), the intercompany debt is reflected as accounts payable. The change in the intercompany debt is reflected in the net cash provided by operating activities in the condensed statements of cash activity.
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 recast 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 Year Ended October 31, 2013
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
10,617

 
$

 
$

 
$
10,617

Finance revenues

 
234

 
(76
)
 
158

Sales and revenues, net
10,617

 
234

 
(76
)
 
10,775

Costs of products sold
9,761

 

 

 
9,761

Restructuring charges
20

 
5

 

 
25

Asset impairment charges
96

 
1

 

 
97

Selling, general and administrative expenses
1,132

 
87

 
(4
)
 
1,215

Engineering and product development costs
406

 

 

 
406

Interest expense
253

 
70

 
(2
)
 
321

Other expense (income), net
15

 
(11
)
 
(69
)
 
(65
)
Total costs and expenses
11,683

 
152

 
(75
)
 
11,760

Equity in income of non-consolidated affiliates
11

 

 

 
11

Income (loss) before equity income from financial services operations and income taxes
(1,055
)
 
82

 
(1
)
 
(974
)
Equity income from financial services operations
53

 

 
(53
)
 

Income (loss) from continuing operations before income taxes
(1,002
)
 
82

 
(54
)
 
(974
)
Income tax expense
199

 
(28
)
 

 
171

Income (loss) from continuing operations
(803
)
 
54

 
(54
)
 
(803
)
Loss from discontinued operations, net of tax
(41
)
 

 

 
(41
)
Net income (loss)
(844
)
 
54

 
(54
)
 
(844
)
Less: Income attributable to non-controlling interests
54

 

 

 
54

Net income (loss) attributable to Navistar International Corporation
$
(898
)
 
$
54

 
$
(54
)
 
$
(898
)

E- 24



Condensed Statements of Revenues and Expenses
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
For the Year Ended October 31, 2012
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
12,527

 
$

 
$

 
$
12,527

Finance revenues

 
259

 
(91
)
 
168

Sales and revenues, net
12,527

 
259

 
(91
)
 
12,695

Costs of products sold
11,401

 

 

 
11,401

Restructuring charges
107

 

 

 
107

Asset impairment charges
16

 

 

 
16

Selling, general and administrative expenses
1,338

 
87

 
(6
)
 
1,419

Engineering and product development costs
532

 

 

 
532

Interest expense
176

 
88

 
(5
)
 
259

Other expense (income), net
131

 
(8
)
 
(80
)
 
43

Total costs and expenses
13,701

 
167

 
(91
)
 
13,777

Equity in loss of non-consolidated affiliates
(29
)
 

 

 
(29
)
Income (loss) before equity income from financial services operations and income taxes
(1,203
)
 
92

 

 
(1,111
)
Equity income from financial services operations
63

 

 
(63
)
 

Income (loss) from continuing operations before income taxes
(1,140
)
 
92

 
(63
)
 
(1,111
)
Income tax expense
(1,751
)
 
(29
)
 

 
(1,780
)
Income (loss) from continuing operations
(2,891
)
 
63

 
(63
)
 
(2,891
)
Loss from discontinued operations, net of tax
(71
)
 

 

 
(71
)
Net income (loss)
(2,962
)
 
63

 
(63
)
 
(2,962
)
Less: Income attributable to non-controlling interests
48

 

 

 
48

Net income (loss) attributable to Navistar International Corporation
$
(3,010
)
 
$
63

 
$
(63
)
 
$
(3,010
)

E- 25



Condensed Statements of Revenues and Expenses
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
For the Year Ended October 31, 2011
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
13,441

 
$

 
$

 
$
13,441

Finance revenues

 
290

 
(90
)
 
200

Sales and revenues, net
13,441

 
290

 
(90
)
 
13,641

Costs of products sold
10,937

 

 

 
10,937

Restructuring charges
81

 
1

 

 
82

Asset impairment charges
13

 

 

 
13

Selling, general and administrative expenses
1,333

 
78

 
(4
)
 
1,407

Engineering and product development costs
520

 

 

 
520

Interest expense
148

 
109

 
(10
)
 
247

Other expense (income), net
31

 
(26
)
 
(76
)
 
(71
)
Total costs and expenses
13,063

 
162

 
(90
)
 
13,135

Equity in loss of non-consolidated affiliates
(71
)
 

 

 
(71
)
Income before equity income from financial services operations and income taxes
307

 
128

 

 
435

Equity income from financial services operations
80

 

 
(80
)
 

Income from continuing operations before income taxes
387

 
128

 
(80
)
 
435

Income tax benefit (expense)
1,465

 
(48
)
 

 
1,417

Income from continuing operations
1,852

 
80

 
(80
)
 
1,852

Loss from discontinued operations, net of tax
(74
)
 

 

 
(74
)
Net income
1,778

 
80

 
(80
)
 
1,778

Less: Income attributable to non-controlling interests
55

 

 

 
55

Net income attributable to Navistar International Corporation
$
1,723

 
$
80

 
$
(80
)
 
$
1,723




E- 26



Condensed Statements of Assets, Liabilities, and Stockholders' Equity (Deficit)
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
As of October 31, 2013
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
727

 
$
28

 
$

 
$
755

Marketable securities
796

 
34

 

 
830

Restricted cash
26

 
65

 

 
91

Finance and other receivables, net
767

 
2,284

 
(350
)
 
2,701

Inventories
1,194

 
16

 

 
1,210

Goodwill
184

 

 

 
184

Property and equipment, net
1,521

 
220

 

 
1,741

Investments in and advances to financial services operations
686

 

 
(686
)
 

Investments in non-consolidated affiliates
77

 

 

 
77

Deferred taxes, net
204

 
27

 

 
231

Other assets
464

 
31

 

 
495

Total assets
$
6,646

 
$
2,705

 
$
(1,036
)
 
$
8,315

Liabilities and stockholders' equity (deficit)
 
 
 
 
 
 
 
Accounts payable
$
1,824

 
$
28

 
$
(350
)
 
$
1,502

Debt
3,219

 
1,866

 

 
5,085

Postretirement benefits liabilities
2,614

 
38

 

 
2,652

Other liabilities
2,590

 
87

 

 
2,677

Total liabilities
10,247

 
2,019

 
(350
)
 
11,916

Redeemable equity securities
4

 

 

 
4

Stockholders' equity attributable to non-controlling interest
44

 

 

 
44

Stockholders' equity (deficit) attributable to controlling interest
(3,649
)
 
686

 
(686
)
 
(3,649
)
Total liabilities and stockholders' equity (deficit)
$
6,646

 
$
2,705

 
$
(1,036
)
 
$
8,315


E- 27



Condensed Statements of Assets, Liabilities, and Stockholders' Equity (Deficit)
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
As of October 31, 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- 28



Condensed Statements of Cash Activity
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
For the Year Ended October 31, 2013
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Cash flows from operating activities
 
 
 
 
 
 
 
Net income (loss)
$
(844
)
 
$
54

 
$
(54
)
 
$
(844
)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
280

 
2

 

 
282

Depreciation of equipment leased to others
97

 
38

 

 
135

Amortization of debt issuance costs and discount
45

 
12

 

 
57

Deferred income taxes
(231
)
 
5

 

 
(226
)
Impairment of property and equipment and intangible assets
104

 
1

 

 
105

Gain on sales of investments and businesses, net
(29
)
 

 

 
(29
)
Equity in loss of non-consolidated affiliates
(11
)
 

 

 
(11
)
Equity in income of financial services affiliates
(54
)
 

 
54

 

Dividends from non-consolidated affiliates
13

 

 

 
13

Change in intercompany receivables and payables
(18
)
 
18

 

 

Other, net
410

 
208

 

 
618

Net cash provided by (used in) operating activities
(238
)
 
338

 

 
100

Cash flows from investing activities
 
 
 
 
 
 


Purchases of marketable securities
(1,765
)
 
(14
)
 

 
(1,779
)
Sales or maturities of marketable securities
1,415

 

 

 
1,415

Net change in restricted cash and cash equivalents
5

 
65

 

 
70

Capital expenditures
(165
)
 
(2
)
 

 
(167
)
Purchase of equipment leased to others
(321
)
 
(111
)
 

 
(432
)
Acquisition of intangibles

 

 



Business acquisitions, net of cash received

 

 

 

Other investing activities
78

 
5

 

 
83

Net cash used in investing activities
(753
)
 
(57
)
 

 
(810
)
Net cash provided by (used in) financing activities
677

 
(284
)
 

 
393

Effect of exchange rate changes on cash and cash equivalents
(18
)
 
3

 

 
(15
)
Decrease in cash and cash equivalents
(332
)
 

 

 
(332
)
Cash and cash equivalents at beginning of the year
1,059

 
28

 

 
1,087

Cash and cash equivalents at end of the year
$
727

 
$
28

 
$

 
$
755


E- 29



Condensed Statements of Cash Activity
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
For the Year Ended October 31, 2012
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Cash flows from operating activities
 
 
 
 
 
 
 
Net income (loss)
$
(2,962
)
 
$
63

 
$
(63
)
 
$
(2,962
)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
275

 
2

 

 
277

Depreciation of equipment leased to others
15

 
31

 

 
46

Amortization of debt issuance costs and discount
34

 
12

 

 
46

Deferred income taxes
1,784

 
(6
)
 

 
1,778

Impairment of property and equipment and intangible assets
40

 

 

 
40

Equity in loss of non-consolidated affiliates
29

 

 

 
29

Equity in income of financial services affiliates
(63
)
 

 
63

 

Dividends from non-consolidated affiliates
7

 

 

 
7

Change in intercompany receivables and payables
4

 
(4
)
 

 

Other, net
539

 
810

 

 
1,349

Net cash provided by (used in) operating activities
(298
)
 
908

 

 
610

Cash flows from investing activities
 
 
 
 
 
 
 
Purchases of marketable securities
(1,209
)
 

 

 
(1,209
)
Sales or maturities of marketable securities
1,461

 

 

 
1,461

Net change in restricted cash and cash equivalents
(3
)
 
168

 

 
165

Capital expenditures
(306
)
 
(3
)
 

 
(309
)
Purchase of equipment leased to others

 
(61
)
 

 
(61
)
Acquisition of intangibles
(14
)
 

 

 
(14
)
Business acquisitions
(12
)
 

 

 
(12
)
Other investing activities
(27
)
 
4

 

 
(23
)
Net cash provided by (used in) investing activities
(110
)
 
108

 

 
(2
)
Net cash provided by (used in) financing activities
977

 
(1,040
)
 

 
(63
)
Effect of exchange rate changes on cash and cash equivalents
2

 
1

 

 
3

Increase (decrease) in cash and cash equivalents
571

 
(23
)
 

 
548

Cash and cash equivalents at beginning of the year
488

 
51

 

 
539

Cash and cash equivalents at end of the year
$
1,059

 
$
28

 
$

 
$
1,087



E- 30



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

 
$
80

 
$
(80
)
 
$
1,778

Adjustments to reconcile net income to cash provided by operating activities:

 

 

 

Depreciation and amortization
286

 
4

 

 
290

Depreciation of equipment leased to others
14

 
24

 

 
38

Amortization of debt issuance costs and discount
28

 
16

 

 
44

Deferred income taxes
(1,524
)
 
11

 

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

 

 

 
75

Equity in loss of non-consolidated affiliates
71

 

 

 
71

Equity in income of financial services affiliates
(80
)
 

 
80

 

Dividends from non-consolidated affiliates
4

 

 

 
4

Change in intercompany receivables and payables
(73
)
 
73

 

 

Other, net
101

 
(8
)
 

 
93

Net cash provided by operating activities
680

 
200

 

 
880

Cash flows from investing activities

 

 

 

Purchases of marketable securities
(1,562
)
 

 

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

 

 

 
1,430

Net change in restricted cash and cash equivalents

 
(147
)
 

 
(147
)
Capital expenditures
(427
)
 
(2
)
 

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

 
(71
)
Acquisition of intangibles
(26
)
 

 

 
(26
)
Business acquisitions
12

 

 

 
12

Other investing activities
(40
)
 
10

 

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

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

 

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

 

 
(3
)
Decrease in cash and cash equivalents
(46
)
 

 

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

 
51

 

 
585

Cash and cash equivalents at end of the year
$
488

 
$
51

 
$

 
$
539



E- 31