EX-99.1 2 d551487dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

LOGO   

Navistar International Corporation

 

2701 Navistar Dr.

 

Lisle, IL 60532 USA

   P : 331-332-5000    W : navistar.com     

 

    

Media Contact:

Investor Contact:

Web site:

  

Steve Schrier, 331-332-2264

Heather Kos, 331-332-2406

www.Navistar.com/newsroom

         

NAVISTAR REPORTS SECOND QUARTER RESULTS

 

   

Reports second quarter net loss of $374 million

 

   

Second quarter manufacturing cash balance of $1.16 billion exceeds guidance

 

   

Selects Cummins for SCR aftertreatment on medium-duty engines

 

   

New Class 8 offerings drive strong increase in May orders

LISLE, Ill. (June 10, 2013) – Navistar International Corporation (NYSE: NAV) today announced a second quarter 2013 net loss of $374 million, or $4.65 per diluted share, compared to a second quarter 2012 net loss of $172 million, or $2.50 per diluted share. Excluding discontinued operations, Navistar recorded a second quarter 2013 loss from continuing operations of $353 million, or $4.39 per diluted share, compared to a second quarter 2012 loss from continuing operations of $138 million, or $2.01 per diluted share. Second quarter 2012 results included a gain of $181 million for the release of an income tax valuation allowance related to Canadian deferred tax assets.

The year-over-year decline was mainly due to lower volumes and higher pre-existing warranty adjustments of $164 million in the second quarter 2013, primarily related to EPA 2010 emissions level engines. This was partially offset by $60 million in lower SG&A expenses and $32 million in reduced engineering and product development costs this quarter versus the same period one year ago.

Manufacturing revenue in the quarter was $2.5 billion, down 23 percent from the second quarter of 2012. The decline reflects a 14% drop in overall industry demand and lower market share during the company’s emissions strategy transition. This was partially offset by stronger volumes in the South America engine business.

“We are not satisfied with our overall financial results this quarter, but we are pleased with the continued progress we made in a number of areas on our turnaround plan,” said Troy A. Clarke, Navistar president and chief executive officer. “We still face some significant, yet solvable challenges, primarily in the areas of higher pre-existing warranty costs for our earlier EPA 2010 emissions level engines, as well as in rebuilding sales and restoring market share. However, we are already implementing the right leadership and business process changes to effectively address these priority issues.”

The company recently announced the hiring of industry veteran Bill Kozek to run its North America Truck and Parts group, and the naming of Bill Osborne, who spent more than 20 years in the automotive industry before joining Navistar in 2011, to head up global quality.

Navistar finished the second quarter 2013 with $1.16 billion in manufacturing cash and marketable securities, exceeding its cash guidance range of $1.0 billion to $1.1 billion. Navistar’s manufacturing cash guidance for the end of the third quarter 2013 ranges from $1.0 billion to $1.1 billion.


“We delivered on a number of our near-term priorities this quarter. We exceeded our cash guidance, continued to over-achieve on our structural cost reduction efforts, and obtained regulatory approval for our MaxxForce 13-liter engine with SCR, which we launched on time in our ProStar truck the last week of April,” Clarke added. “We were also pleased with our ongoing progress in shedding non-core assets that are not providing adequate returns on investment.”

In the second quarter Navistar completed the sale of its equity interests in its India truck and engine joint ventures; completed the sale of its Workhorse Custom Chassis brand; and subleased a portion of its Cherokee, Alabama manufacturing facility to a railcar manufacturing company. Already in the third quarter, the company has sold its RV business.

“Our new SCR-based heavy-duty offerings are the highest quality trucks we have built in more than a decade and they have improved fuel economy, a combination that positions us to hit our previously stated goal of stronger sales and increasing market share during the second half of 2013 and into 2014,” said Jack Allen, Navistar’s chief operating officer. “We are off to a strong start as May orders were up 38% versus the average sales rate for the previous quarter, driven higher by strong interest in the MaxxForce 13-liter with SCR and the ProStar ISX.”

With its heavy duty launches essentially completed, the company is turning its focus to adding SCR aftertreatment to its medium duty products. Navistar announced it will use Cummins SCR on medium duty engines, which it will begin to make available in the first quarter of calendar year 2014.

Summary Financial Results

 

     Second Quarter     First Half  
(in millions, except per share data)    2013     2012     2013     2012  

Sales and revenues, net

   $ 2,526      $ 3,261      $ 5,163      $ 6,270   

Segment Results:

        

Truck

   $ (109   $ (45   $ (167   $ (72

Engine

     (138     (108     (165     (228

Parts

     91        41        177        91   

Financial Services

     19        26        41        53   

Loss from continuing operations before income taxes

   $ (322   $ (251   $ (406   $ (458

Loss from continuing operations, net of tax(A)

     (353     (138     (467     (282

Net loss(A)

     (374     (172     (497     (325

Diluted loss per share from continuing operations(A)

   $ (4.39   $ (2.01   $ (5.82   $ (4.07

Diluted loss per share(A)

     (4.65     (2.50     (6.19     (4.69

 

(A) Amounts attributable to Navistar International Corporation.

SEGMENT REPORTING

Truck — For the second quarter 2013, the truck segment recorded a loss of $109 million, compared with a year-ago second quarter loss of $45 million. The segment’s loss was mainly driven by a decline in traditional truck volumes due to lower industry conditions and the market share impact of the company’s emissions transition, and $57 million in adjustments to pre-existing warranty costs. The segment loss was minimized by $60 million in lower SG&A and engineering expenses from 2012 cost-reduction initiatives. The segment also realized a $16 million dollar gain from the sale of the company’s interests in its India joint ventures.


Engine — For the second quarter 2013, the engine segment recorded a loss of $138 million, compared with a year-ago second quarter loss of $108 million. The year-over-year decline was predominantly due to higher warranty spend and lower volumes. The segment recorded $107 million in charges for adjustments to pre-existing warranties and $12 million in non-conformance penalties. The wider loss was partially offset by $24 million of profit improvement by the company’s MWM engine business in Brazil, $19 million in lower engineering and product development spend, and a $12 million gain related to the sale of the company’s interests in its India joint ventures.

Parts — For the second quarter 2013, the parts segment recorded profit of $91 million, compared with a year-ago second quarter profit of $41 million. The increase was primarily driven by margin improvements. The segment also realized $11 million in lower SG&A expenses reflecting the impact of 2012 cost-reduction initiatives.

Financial Services — For the second quarter 2013, Financial Services recorded a profit of $19 million, down from a year-ago second quarter profit of $26 million due to lower net interest margin, reflecting the decline in average finance receivables balances. This decrease is consistent with the transition of retail loans to GE Capital.

About Navistar

Navistar International Corporation (NYSE: NAV) is a holding company whose subsidiaries and affiliates produce International® brand commercial and military trucks, MaxxForce® brand diesel engines, and IC Bus™ brand school and commercial buses. The company also provides truck and diesel engine service parts. Another affiliate offers financing services. Additional information is available at www.Navistar.com.

Forward-Looking Statement

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, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements only speak as of the date of this report and the company assumes no obligation to update the information included in this report. Such 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 not guarantees of performance or results and they involve risks, uncertainties, and assumptions. For a further description of these factors, see the risk factors set forth in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the fiscal year ended October 31, 2012. 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. 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 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.


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   


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   
  

 

 

   

 

 

 


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   
  

 

 

   

 

 

 


Navistar International Corporation and Subsidiaries

Segment Reporting

(Unaudited)

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


SEC Regulation G Non-GAAP Reconciliation

The financial measures presented below are unaudited and not in accordance with, or an alternative for, financial measures presented in accordance with U.S. generally accepted accounting principles (“GAAP”). The non-GAAP financial information presented herein should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

Manufacturing cash, cash equivalents, and marketable securities represents the Company’s consolidated cash, cash equivalents, and marketable securities excluding cash, cash equivalents, and marketable securities of our financial services operations. We include marketable securities with our cash and cash equivalents when assessing our liquidity position as our investments are highly liquid in nature.

Manufacturing revenue represents the Sales of manufactured products, net, from the Company’s consolidated statements of operations.

Manufacturing segment cash and cash equivalents and marketable securities reconciliation:

 

     As of April 30, 2013  
(in millions)    Manufacturing
Operations
     Financial Services
Operations
     Consolidated
Balance Sheet
 

Assets

        

Cash and cash equivalents

   $ 465       $ 40       $ 505   

Marketable securities

     699         34         733   
  

 

 

    

 

 

    

 

 

 

Total Cash and cash equivalents and Marketable securities

   $ 1,164       $ 74       $ 1,238