EX-99.1 7 navex9911312014.htm ADDITIONAL FINANCIAL INFORMATION (UNAUDITED) NAV EX 99.1 1.31.2014


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.
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 January 31, 2014
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
2,169

 
$

 
$

 
$
2,169

Finance revenues

 
55

 
(16
)
 
39

Sales and revenues, net
2,169

 
55

 
(16
)
 
2,208

Costs of products sold
2,014

 

 

 
2,014

Restructuring charges
3

 

 

 
3

Asset impairment charges
18

 

 

 
18

Selling, general and administrative expenses
216

 
24

 
(1
)
 
239

Engineering and product development costs
90

 

 

 
90

Interest expense
65

 
17

 

 
82

Other expense (income), net
37

 
(8
)
 
(15
)
 
14

Total costs and expenses
2,443

 
33

 
(16
)
 
2,460

Equity in income (loss) of non-consolidated affiliates

 

 

 

Income (loss) before equity income from financial services operations and income taxes
(274
)
 
22

 

 
(252
)
Equity income from financial services operations
14

 

 
(14
)
 

Income (loss) from continuing operations before income taxes
(260
)
 
22

 
(14
)
 
(252
)
Income tax benefit (expense)
20

 
(8
)
 

 
12

Income (loss) from continuing operations
(240
)
 
14

 
(14
)
 
(240
)
Income from discontinued operations, net of tax
1

 

 

 
1

Net income (loss)
(239
)
 
14

 
(14
)
 
(239
)
Less: Income attributable to non-controlling interests
9

 

 

 
9

Net income (loss) attributable to Navistar International Corporation
$
(248
)
 
$
14

 
$
(14
)
 
$
(248
)

E- 6



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 January 31, 2013
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
2,598

 
$

 
$

 
$
2,598

Finance revenues

 
59

 
(20
)
 
39

Sales and revenues, net
2,598

 
59

 
(20
)
 
2,637

Costs of products sold
2,286

 

 

 
2,286

Restructuring charges
1

 
1

 

 
2

Selling, general and administrative expenses
266

 
20

 
(1
)
 
285

Engineering and product development costs
111

 

 

 
111

Interest expense
57

 
18

 
(1
)
 
74

Other income, net
(18
)
 
(2
)
 
(18
)
 
(38
)
Total costs and expenses
2,703

 
37

 
(20
)
 
2,720

Equity in loss of non-consolidated affiliates
(1
)
 

 

 
(1
)
Income (loss) before equity income from financial services operations and income taxes
(106
)
 
22

 

 
(84
)
Equity income from financial services operations
14

 

 
(14
)
 

Income (loss) from continuing operations before income taxes
(92
)
 
22

 
(14
)
 
(84
)
Income tax expense
(7
)
 
(8
)
 

 
(15
)
Income (loss) from continuing operations
(99
)
 
14

 
(14
)
 
(99
)
Loss from discontinued operations, net of tax
(9
)
 

 

 
(9
)
Net income (loss)
(108
)
 
14

 
(14
)
 
(108
)
Less: Income attributable to non-controlling interests
15

 

 

 
15

Net income (loss) attributable to Navistar International Corporation
$
(123
)
 
$
14

 
$
(14
)
 
$
(123
)




E- 7



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 January 31, 2014
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Balance Sheet
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
503

 
$
46

 
$

 
$
549

Marketable securities
596

 
34

 

 
630

Restricted cash
22

 
93

 

 
115

Finance and other receivables, net
581

 
2,032

 
(268
)
 
2,345

Inventories
1,368

 
14

 

 
1,382

Goodwill
170

 

 

 
170

Property and equipment, net
1,466

 
234

 

 
1,700

Investments in and advances to financial services operations
695

 

 
(695
)
 

Investments in non-consolidated affiliates
75

 

 

 
75

Deferred taxes, net
203

 
26

 

 
229

Other assets
427

 
32

 

 
459

Total assets
$
6,106

 
$
2,511

 
$
(963
)
 
$
7,654

Liabilities and stockholders' equity (deficit)
 
 
 
 
 
 
 
Accounts payable
$
1,662

 
$
36

 
$
(268
)
 
$
1,430

Debt
3,212

 
1,652

 

 
4,864

Postretirement benefits liabilities
2,583

 
37

 

 
2,620

Other liabilities
2,526

 
91

 

 
2,617

Total liabilities
9,983

 
1,816

 
(268
)
 
11,531

Redeemable equity securities
2

 

 

 
2

Stockholders' equity attributable to non-controlling interest
33

 

 

 
33

Stockholders' equity (deficit) attributable to controlling interest
(3,912
)
 
695

 
(695
)
 
(3,912
)
Total liabilities and stockholders' equity (deficit)
$
6,106

 
$
2,511

 
$
(963
)
 
$
7,654


E- 8



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 Balance Sheet
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- 9



Condensed Statements of Cash Activity
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
For the Three Months Ended January, 2014
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Condensed Consolidated Statement of Cash Flows
Cash flows from operating activities
 
 
 
 
 
 
 
Net income (loss)
$
(239
)
 
$
14

 
$
(14
)
 
$
(239
)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
55

 

 

 
55

Depreciation of equipment leased to others
21

 
10

 

 
31

Amortization of debt issuance costs and discount
11

 
3

 

 
14

Deferred income taxes
(18
)
 

 

 
(18
)
Impairment of property and equipment and intangible assets
18

 

 

 
18

Equity in income of financial services affiliates
(14
)
 

 
14

 

Dividends from non-consolidated affiliates
2

 

 

 
2

Change in intercompany receivables and payables
(83
)
 
83

 

 

Other, net
(121
)
 
165

 

 
44

Net cash provided by (used in) operating activities
(368
)
 
275

 

 
(93
)
Cash flows from investing activities
 
 
 
 
 
 


Purchases of marketable securities
(378
)
 

 

 
(378
)
Sales or maturities of marketable securities
578

 

 

 
578

Net change in restricted cash and cash equivalents
5

 
(29
)
 

 
(24
)
Capital expenditures
(21
)
 

 

 
(21
)
Purchase of equipment leased to others
(16
)
 
(33
)
 

 
(49
)
Other investing activities
1

 
7

 

 
8

Net cash provided by (used in) investing activities
169

 
(55
)
 

 
114

Net cash used in financing activities
(3
)
 
(203
)
 

 
(206
)
Effect of exchange rate changes on cash and cash equivalents
(22
)
 
1

 

 
(21
)
Income (decrease) in cash and cash equivalents
(224
)
 
18

 

 
(206
)
Cash and cash equivalents at beginning of the year
727

 
28

 

 
755

Cash and cash equivalents at end of the year
$
503

 
$
46

 
$

 
$
549


E- 10



Condensed Statements of Cash Activity
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
For the Three Months Ended January 31, 2013
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Condensed Consolidated Statement of Cash Flows
Cash flows from operating activities
 
 
 
 
 
 
 
Net income (loss)
$
(108
)
 
$
14

 
$
(14
)
 
$
(108
)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
89

 

 

 
89

Depreciation of equipment leased to others
2

 
9

 

 
11

Amortization of debt issuance costs and discount
13

 
3

 

 
16

Deferred income taxes
(9
)
 

 

 
(9
)
Equity in loss of non-consolidated affiliates
1

 

 

 
1

Equity in income of financial services affiliates
(14
)
 

 
14

 

Dividends from non-consolidated affiliates
2

 

 

 
2

Change in intercompany receivables and payables
(81
)
 
81

 

 

Other, net
(98
)
 
162

 

 
64

Net cash provided by (used in) operating activities
(203
)
 
269

 

 
66

Cash flows from investing activities
 
 
 
 
 
 
 
Purchases of marketable securities
(482
)
 

 

 
(482
)
Sales or maturities of marketable securities
177

 

 

 
177

Net change in restricted cash and cash equivalents
(2
)
 
61

 

 
59

Capital expenditures
(72
)
 

 

 
(72
)
Purchase of equipment leased to others

 
(32
)
 

 
(32
)
Other investing activities
3

 

 

 
3

Net cash provided by (used in) investing activities
(376
)
 
29

 

 
(347
)
Net cash used in financing activities
(37
)
 
(266
)
 


 
(303
)
Effect of exchange rate changes on cash and cash equivalents
(5
)
 
(1
)
 

 
(6
)
Increase (decrease) in cash and cash equivalents
(621
)
 
31

 

 
(590
)
Cash and cash equivalents at beginning of the year
1,059

 
28

 

 
1,087

Cash and cash equivalents at end of the year
$
438

 
$
59

 
$

 
$
497



E- 11