EX-99.4 7 d492268dex994.htm ADDITIONAL FINANCIAL INFORMATION (UNAUDITED) Additional Financial Information (Unaudited)

EXHIBIT 99.4

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. 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 activities. In the first quarter of 2013, the condensed statements of revenues and expenses were restated to reflect the operating results of Workhorse Custom Chassis and certain operating results of the Monaco recreational vehicle business as discontinued operations.

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 benefits

      107        —          —          107   

Impairment of property and equipment and intangible assets

      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 tax

      (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 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

 

1

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   

Impairment of property and equipment and intangible assets

      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   
  

 

 

    

 

 

    

 

 

    

 

 

  

Condensed Statement 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, 2010  
(in millions)    Manufacturing
Operations		     Financial
Services
Operations		     Adjustments     Consolidated
Statement of
Operations		  

Sales of manufactured products

    $ 11,648      $ —        $ —        $ 11,648   

Finance revenues

      —          309        (90 )      219   
  

 

 

    

 

 

    

 

 

    

 

 

  

Sales and revenues, net

      11,648        309        (90 )      11,867   
  

 

 

    

 

 

    

 

 

    

 

 

  

Costs of products sold

      9,458        —          —          9,458   

Restructuring charges (benefit)

      (19 )      4        —          (15 ) 

Selling, general and administrative expenses

      1,268        119        (6 )      1,381   

Engineering and product development costs

      455        —          —          455   

Interest expense

      154        113        (14 )      253   

Other expense (income), net

      39        (22 )      (70 )      (53 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total costs and expenses

      11,355        214        (90 )      11,479   

Equity in loss of non-consolidated affiliates

      (50 )      —          —          (50 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before equity income from financial services operations and income taxes

      243        95        —          338   

Equity income from financial services operations

      64        —          (64 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Income from continuing operations before income taxes

      307        95        (64 )      338   

Income tax expense

      8        (31 )      —          (23 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Income from continuing operations

      315        64        (64 )      315   

Loss from discontinued operations, net of tax

      (48 )      —        —        (48 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      267        64        (64 )      267   

Less: Income attributable to non-controlling interests

      44        —          —          44   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to Navistar International Corporation

    $ 223      $ 64      $ (64 )    $ 223   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

2

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
Balance
Sheet		  

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   
  

 

 

    

 

 

     

 

 

    

 

 

  

 

3

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, 2011  
(in millions)    Manufacturing
Operations		     Financial
Services
Operations		      Adjustments     Consolidated
Balance
Sheet		  

Assets

          

Cash and cash equivalents

    $ 488      $ 51       $ —        $ 539   

Marketable securities

      698        20         —          718   

Restricted cash

      29        298         —          327   

Finance and other receivables, net

      1,341        3,007         (94 )      4,254   

Inventories

      1,704        10         —          1,714   

Goodwill

      319        —           —          319   

Property and equipment, net

      1,433        137         —          1,570   

Investments in and advances to financial services operations

      564        —           (564 )      —     

Investments in non-consolidated affiliates

      60        —           —          60   

Deferred taxes, net

      2,031        26         —          2,057   

Other assets

      705        28         —          733   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total assets

    $ 9,372      $ 3,577       $ (658 )    $ 12,291   
  

 

 

    

 

 

     

 

 

    

 

 

  

Liabilities and stockholders’ equity (deficit)

          

Accounts payable

    $ 2,194      $ 22       $ (94 )    $ 2,122   

Debt

      1,980        2,876         —          4,856   

Postretirement benefits liabilities

      3,262        54         —          3,316   

Other liabilities

      1,908        61         —          1,969   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total liabilities

      9,344        3,013         (94 )      12,263   

Redeemable equity securities

      5        —           —          5   

Stockholders’ equity attributable to non-controlling interest

      50        —           —          50   

Stockholders’ equity (deficit) attributable to controlling interest

      (27 )      564         (564 )      (27 ) 
  

 

 

    

 

 

     

 

 

    

 

 

  

Total liabilities and stockholders’ equity (deficit)

    $ 9,372      $ 3,577       $ (658 )    $ 12,291   
  

 

 

    

 

 

     

 

 

    

 

 

  

 

4

Condensed Statement 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     Condensed
Consolidated
Statement of
Cash Flows		  

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 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, net of cash received

      (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   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

5

Condensed Statement 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     Condensed
Consolidated
Statement of
Cash Flows		  

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   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

6

Condensed Statement of Cash Activity

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

 

     For the Year Ended October 31, 2010  
(in millions)    Manufacturing
Operations		     Financial
Services
Operations		     Adjustments     Condensed
Consolidated
Statement of
Cash Flows		  

Cash flows from operating activities

         

Net income

    $ 267      $ 64      $ (64 )    $ 267   

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

         

Depreciation and amortization

      261        4        —          265   

Depreciation of equipment leased to others

      27        24        —          51   

Amortization of debt issuance costs and discount

      26        12        —          38   

Deferred income taxes

      (3 )      20        —          17   

Equity in loss of non-consolidated affiliates

      50        —          —          50   

Equity in income of financial services affiliates

      (64 )      —          64        —     

Dividends from non-consolidated affiliates

      5        —          —          5   

Change in intercompany receivables and payables

      11        (11 )      —          —     

Other, net

      (171 )      585        —          414   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by operating activities

      409        698        —          1,107   
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash flows from investing activities

         

Purchases of marketable securities

      (1,856 )      (20 )      —          (1,876 ) 

Sales or maturities of marketable securities

      1,290        —          —          1,290   

Net change in restricted cash and cash equivalents

      1        514        —          515   

Capital expenditures

      (232 )      (2 )      —          (234 ) 

Purchase of equipment leased to others

      (16 )      (29 )      —          (45 ) 

Acquisition of intangibles

      (15 )      —          —          (15 ) 

Business acquisitions

      (2 )      —          —          (2 ) 

Other investing activities

      (86 )      9        10        (67 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash provided by (used in) investing activities

      (916 )      472        10        (434 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash used in financing activities

      (110 )      (1,180 )      (10 )      (1,300 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Effect of exchange rate changes on cash and cash equivalents

      (1 )      1        —          —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease in cash and cash equivalents

      (618 )      (9 )      —          (627 ) 

Cash and cash equivalents at beginning of the year

      1,152        60        —          1,212   
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash and cash equivalents at end of the year

    $ 534      $ 51      $ —        $ 585   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

7