Attached files
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 a pre-tax equity basis. Our manufacturing operations, for this purpose, include our Truck segment, Engine segment, Parts segment, and Corporate items which includes certain eliminations. The manufacturing operations financial information represents non-GAAP financial measures. The reconciling differences between these non-GAAP financial measures and our GAAP condensed consolidated financial statements in Item 1, Condensed Consolidated Financial Statements, are our financial services operations and adjustments required to eliminate certain intercompany transactions between Manufacturing Operations and Financial Services Operations and to adjust for reclasses. 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, redeemable equity securities, and stockholders’ 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.
Condensed Statements of Revenues and Expenses
Navistar International Corporation (Manufacturing operations with financial services operations on a pre-tax equity basis)
| Three Months Ended January 31, 2010 | ||||||||||||||||
| Manufacturing Operations |
Financial Services Operations |
Adjustments | Consolidated Statement of Operations |
|||||||||||||
| (in millions) | ||||||||||||||||
| Sales of manufactured products |
$ | 2,758 | $ | — | $ | — | $ | 2,758 | ||||||||
| Finance revenues |
— | 75 | (24 | ) | 51 | |||||||||||
| Sales and revenues, net |
2,758 | 75 | (24 | ) | 2,809 | |||||||||||
| Costs of products sold |
2,262 | — | — | 2,262 | ||||||||||||
| Restructuring charges |
(17 | ) | — | — | (17 | ) | ||||||||||
| Selling, general and administrative expenses |
306 | 35 | (3 | ) | 338 | |||||||||||
| Engineering and product development costs |
109 | — | — | 109 | ||||||||||||
| Interest expense |
39 | 32 | (4 | ) | 67 | |||||||||||
| Other expense (income), net |
27 | (4 | ) | (17 | ) | 6 | ||||||||||
| Total costs and expenses |
2,726 | 63 | (24 | ) | 2,765 | |||||||||||
| Equity in loss of non-consolidated affiliates |
(6 | ) | — | — | (6 | ) | ||||||||||
| Income before income taxes and equity income from financial services operations |
26 | 12 | — | 38 | ||||||||||||
| Equity income from financial services operations |
12 | — | (12 | ) | — | |||||||||||
| Income before income taxes |
38 | 12 | (12 | ) | 38 | |||||||||||
| Income tax expense |
(8 | ) | — | — | (8 | ) | ||||||||||
| Net income (loss) |
30 | 12 | (12 | ) | 30 | |||||||||||
| Income attributable to non-controlling interests |
(13 | ) | — | — | (13 | ) | ||||||||||
| Net income (loss) attributable to Navistar International Corporation |
$ | 17 | $ | 12 | $ | (12 | ) | $ | 17 | |||||||
E-8
Condensed Statements of Revenues and Expenses
Navistar International Corporation (Manufacturing operations with financial services operations on a pre-tax equity basis)
| Three Months Ended January 31, 2009 | ||||||||||||||||
| Manufacturing Operations |
Financial Services Operations |
Adjustments | Consolidated Statement of Operations |
|||||||||||||
| (in millions) | ||||||||||||||||
| Sales of manufactured products |
$ | 2,895 | $ | — | $ | — | $ | 2,895 | ||||||||
| Finance revenues |
— | 93 | (18 | ) | 75 | |||||||||||
| Sales and revenues, net |
$ | 2,895 | $ | 93 | $ | (18 | ) | $ | 2,970 | |||||||
| Costs of products sold |
2,323 | — | — | 2,323 | ||||||||||||
| Restructuring charges |
58 | — | — | 58 | ||||||||||||
| Selling, general and administrative expenses |
346 | 31 | (1 | ) | 376 | |||||||||||
| Engineering and product development costs |
108 | — | — | 108 | ||||||||||||
| Interest expense |
31 | 64 | (2 | ) | 93 | |||||||||||
| Other income, net |
(182 | ) | (1 | ) | (15 | ) | (198 | ) | ||||||||
| Total costs and expenses |
2,684 | 94 | (18 | ) | 2,760 | |||||||||||
| Equity in income of non-consolidated affiliates |
17 | — | — | 17 | ||||||||||||
| Income (loss) before income taxes and equity income from financial services operations |
228 | (1 | ) | — | 227 | |||||||||||
| Equity income from financial services operations |
(1 | ) | — | 1 | — | |||||||||||
| Income (loss) before income taxes |
227 | (1 | ) | 1 | 227 | |||||||||||
| Income tax benefit |
7 | — | — | 7 | ||||||||||||
| Net income (loss) attributable to Navistar International Corporation |
$ | 234 | $ | (1 | ) | $ | 1 | $ | 234 | |||||||
E-9
Condensed Statements of Assets, Liabilities, Redeemable Equity Securities, and Stockholders’ Deficit
Navistar International Corporation (Manufacturing operations with financial services operations on a pre-tax equity basis)
| As of January 31, 2010 | |||||||||||||||
| Manufacturing Operations |
Financial Services Operations |
Adjustments | Consolidated Balance Sheet |
||||||||||||
| (in millions) | |||||||||||||||
| Cash and cash equivalents |
$ | 618 | $ | 72 | $ | — | $ | 690 | |||||||
| Marketable securities |
50 | — | — | 50 | |||||||||||
| Restricted cash and cash equivalents |
32 | 390 | — | 422 | |||||||||||
| Accounts receivables |
903 | 3,039 | (304 | ) | 3,638 | ||||||||||
| Inventories |
1,706 | 28 | — | 1,734 | |||||||||||
| Investments in financial services operations |
431 | — | (431 | ) | — | ||||||||||
| Investments in non-consolidated affiliates |
80 | — | — | 80 | |||||||||||
| Property and equipment, net |
1,309 | 133 | — | 1,442 | |||||||||||
| Goodwill and intangible assets, net |
590 | — | — | 590 | |||||||||||
| Other assets |
260 | 58 | — | 318 | |||||||||||
| Deferred taxes, net |
105 | 57 | — | 162 | |||||||||||
| Total assets |
$ | 6,084 | $ | 3,777 | $ | (735 | ) | $ | 9,126 | ||||||
| Accounts payable |
$ | 1,649 | $ | 235 | $ | (304 | ) | $ | 1,580 | ||||||
| Postretirement benefits liabilities |
2,620 | 32 | — | 2,652 | |||||||||||
| Debt |
1,825 | 2,959 | — | 4,784 | |||||||||||
| Other liabilities |
1,612 | 120 | — | 1,732 | |||||||||||
| Redeemable equity securities |
12 | — | — | 12 | |||||||||||
| Stockholders’ equity attributable to non-controlling interest |
57 | — | — | 57 | |||||||||||
| Stockholders’ equity (deficit) attributable to controlling interest |
(1,691 | ) | 431 | (431 | ) | (1,691 | ) | ||||||||
| Total liabilities, redeemable equity securities, and stockholders’ equity (deficit) |
$ | 6,084 | $ | 3,777 | $ | (735 | ) | $ | 9,126 | ||||||
E-10
| As of October 31, 2009 | |||||||||||||||
| Manufacturing Operations |
Financial Services Operations |
Adjustments | Consolidated Balance Sheet |
||||||||||||
| (Revised)(A) | |||||||||||||||
| (in millions) | |||||||||||||||
| Cash and cash equivalents |
$ | 1,152 | $ | 60 | $ | — | $ | 1,212 | |||||||
| Restricted cash and cash equivalents |
30 | 455 | — | 485 | |||||||||||
| Accounts receivables |
915 | 3,358 | (188 | ) | 4,085 | ||||||||||
| Inventories |
1,634 | 32 | — | 1,666 | |||||||||||
| Investments in financial services operations |
423 | — | (423 | ) | — | ||||||||||
| Investments in non-consolidated affiliates |
62 | — | — | 62 | |||||||||||
| Property and equipment, net |
1,345 | 122 | — | 1,467 | |||||||||||
| Goodwill and intangible assets, net |
582 | — | — | 582 | |||||||||||
| Deferred taxes, net |
102 | 57 | — | 159 | |||||||||||
| Other assets |
253 | 52 | — | 305 | |||||||||||
| Total assets |
$ | 6,498 | $ | 4,136 | $ | (611 | ) | $ | 10,023 | ||||||
| Accounts payable |
$ | 1,929 | $ | 131 | $ | (188 | ) | $ | 1,872 | ||||||
| Postretirement benefits liabilities |
2,635 | 33 | — | 2,668 | |||||||||||
| Debt |
1,861 | 3,431 | — | 5,292 | |||||||||||
| Other liabilities |
1,702 | 118 | — | 1,820 | |||||||||||
| Redeemable equity securities |
13 | — | — | 13 | |||||||||||
| Stockholders’ equity attributable to non-controlling interests |
61 | — | — | 61 | |||||||||||
| Stockholders’ equity (deficit) attributable to Navistar International Corporation |
(1,703 | ) | 423 | (423 | ) | (1,703 | ) | ||||||||
| Total liabilities, redeemable equity securities, and stockholders’ equity (deficit) |
$ | 6,498 | $ | 4,136 | $ | (611 | ) | $ | 10,023 | ||||||
| (A) | Revised; See Note 1, Summary of significant accounting policies, to the accompanying consolidated financial statements. |
E-11
Condensed Statement of Cash Activities
Navistar International Corporation (Manufacturing operations with financial services operations on a pre-tax equity basis)
| Three Months Ended January 31, 2010 | ||||||||||||||||
| Manufacturing Operations |
Financial Services Operations |
Adjustments | Condensed Consolidated Statement of Cash Flows |
|||||||||||||
| (in millions) | ||||||||||||||||
| Cash flows from operating activities |
||||||||||||||||
| Net income |
$ | 30 | $ | 12 | $ | (12 | ) | $ | 30 | |||||||
| Adjustments to reconcile net loss to cash provided by (used in) operating activities: |
||||||||||||||||
| Depreciation and amortization |
71 | 6 | — | 77 | ||||||||||||
| Depreciation of equipment leased to others |
7 | 6 | — | 13 | ||||||||||||
| Deferred income taxes |
28 | (1 | ) | — | 27 | |||||||||||
| Equity in loss of non-consolidated affiliates |
6 | — | — | 6 | ||||||||||||
| Equity in income of financial services affiliates |
(12 | ) | — | 12 | — | |||||||||||
| Dividends from non-consolidated affiliates |
1 | — | — | 1 | ||||||||||||
| Change in intercompany receivable /payable, net |
(188 | ) | 188 | — | — | |||||||||||
| Other, net |
(277 | ) | 248 | — | (29 | ) | ||||||||||
| Net cash provided by (used in) operating activities |
(334 | ) | 459 | — | 125 | |||||||||||
| Cash flows from investing activities |
||||||||||||||||
| Purchases of marketable securities |
(378 | ) | — | — | (378 | ) | ||||||||||
| Sales or maturities of marketable securities |
328 | — | — | 328 | ||||||||||||
| Net change in restricted cash and cash equivalents |
(2 | ) | 65 | — | 63 | |||||||||||
| Capital expenditures |
(40 | ) | — | — | (40 | ) | ||||||||||
| Purchase of equipment leased to others |
— | (21 | ) | — | (21 | ) | ||||||||||
| Acquisition of intangibles |
(11 | ) | — | — | (11 | ) | ||||||||||
| Business acquisitions |
(2 | ) | — | — | (2 | ) | ||||||||||
| Other investing activities |
(29 | ) | 3 | — | (26 | ) | ||||||||||
| Net cash provided by (used in) investing activities |
(134 | ) | 47 | — | (87 | ) | ||||||||||
| Net cash used in financing activities |
(59 | ) | (495 | ) | — | (554 | ) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents |
(7 | ) | 1 | — | (6 | ) | ||||||||||
| Increase (decrease) in cash and cash equivalents |
(534 | ) | 12 | — | (522 | ) | ||||||||||
| Cash and cash equivalents at beginning of the period |
1,152 | 60 | — | 1,212 | ||||||||||||
| Cash and cash equivalents at end of the period |
$ | 618 | $ | 72 | $ | — | $ | 690 | ||||||||
E-12
Condensed Statement of Cash Activities
Navistar International Corporation (Manufacturing operations with financial services operations on a pre-tax equity basis)
| Three Months Ended January 31, 2009 | ||||||||||||||||
| Manufacturing Operations |
Financial Services Operations |
Adjustments | Condensed Consolidated Statement of Cash Flows |
|||||||||||||
| (in millions) | ||||||||||||||||
| Cash flows from operating activities |
||||||||||||||||
| Net income (loss) |
$ | 234 | $ | 1 | $ | (1 | ) | $ | 234 | |||||||
| Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: |
||||||||||||||||
| Depreciation and amortization |
67 | 4 | — | 71 | ||||||||||||
| Depreciation of equipment leased to others |
7 | 5 | — | 12 | ||||||||||||
| Deferred income taxes |
(5 | ) | 7 | — | 2 | |||||||||||
| Equity in income of non-consolidated affiliates |
(17 | ) | — | — | (17 | ) | ||||||||||
| Equity in income of financial services affiliates |
(1 | ) | — | 1 | — | |||||||||||
| Dividends from non-consolidated affiliates |
24 | — | — | 24 | ||||||||||||
| Restructuring charges |
58 | — | — | 58 | ||||||||||||
| Change in intercompany receivable/payable, net |
(129 | ) | 129 | — | — | |||||||||||
| Other, net |
(360 | ) | 300 | — | (60 | ) | ||||||||||
| Net cash provided by (used in) operating activities |
(122 | ) | 446 | — | 324 | |||||||||||
| Cash flows from investing activities |
||||||||||||||||
| Purchases of marketable securities |
(199 | ) | — | — | (199 | ) | ||||||||||
| Sales or maturities of marketable securities |
52 | — | — | 52 | ||||||||||||
| Net change in restricted cash and cash equivalents |
— | 158 | — | 158 | ||||||||||||
| Capital expenditures |
(38 | ) | — | — | (38 | ) | ||||||||||
| Purchase of equipment leased to others |
(6 | ) | (10 | ) | — | (16 | ) | |||||||||
| Other investment activities |
(28 | ) | 1 | 20 | (7 | ) | ||||||||||
| Net cash provided by (used in) investing activities |
(219 | ) | 149 | 20 | (50 | ) | ||||||||||
| Net cash (used in) provided by financing activities |
1 | (612 | ) | (20 | ) | (631 | ) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents |
(2 | ) | (5 | ) | — | (7 | ) | |||||||||
| Decrease in cash and cash equivalents |
(342 | ) | (22 | ) | — | (364 | ) | |||||||||
| Cash and cash equivalents at beginning of the period |
775 | 86 | — | 861 | ||||||||||||
| Cash and cash equivalents at end of the period |
$ | 433 | $ | 64 | $ | — | $ | 497 | ||||||||
E-13