NAVISTAR INTERNATIONAL CORP - FORM 10-Q - EX-99.1 - ADDITIONAL FINANCIAL INFORMATION (UNAUDITED) - March 3, 2015

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EX-3 - ARTICLES OF INCORPORATION AND BY-LAWS - NAVISTAR INTERNATIONAL CORPnavex31312015.htm
EX-10 - MATERIAL CONTRACTS - NAVISTAR INTERNATIONAL CORPnavex101312015.htm
EX-31.1 - CEO CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 - NAVISTAR INTERNATIONAL CORPnavex3111312015.htm
EX-31.2 - CFO CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 - NAVISTAR INTERNATIONAL CORPnavex3121312015.htm
EX-32.1 - CEO CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 - NAVISTAR INTERNATIONAL CORPnavex3211312015.htm
EX-32.2 - CFO CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 - NAVISTAR INTERNATIONAL CORPnavex3221312015.htm


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 and our Financial Services operations on an after-tax equity basis. Our Manufacturing operations, for this purpose, include our Truck segment, 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, 2015
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
2,385

 
$
—

 
$
—

 
$
2,385

Finance revenues
—

 
60

 
(24
)
 
36

Sales and revenues, net
2,385

 
60

 
(24
)
 
2,421

Costs of products sold
2,045

 
—

 
—

 
2,045

Restructuring charges
3

 
—

 
—

 
3

Asset impairment charges
7

 
—

 
—

 
7

Selling, general and administrative expenses
219

 
23

 
(1
)
 
241

Engineering and product development costs
79

 
—

 
—

 
79

Interest expense
60

 
20

 
(3
)
 
77

Other expense (income), net
24

 
(7
)
 
(20
)
 
(3
)
Total costs and expenses
2,437

 
36

 
(24
)
 
2,449

Equity in income of non-consolidated affiliates
2

 
—

 
—

 
2

Income (loss) before equity income from financial services operations and income taxes
(50
)
 
24

 
—

 
(26
)
Equity income (loss) from financial services operations
15

 
—

 
(15
)
 
—

Income (loss) from continuing operations before income taxes
(35
)
 
24

 
(15
)
 
(26
)
Income tax benefit (expense)
2

 
(9
)
 
—

 
(7
)
Net income (loss)
(33
)
 
15

 
(15
)
 
(33
)
Less: Income attributable to non-controlling interests
9

 
—

 
—

 
9

Net income (loss) attributable to Navistar International Corporation
$
(42
)
 
$
15

 
$
(15
)
 
$
(42
)


E-17


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

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

 
—

 
(252
)
Equity income (loss) 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-18


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, 2015
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Balance Sheet
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
583

 
$
37

 
$
—

 
$
620

Marketable securities
150

 
25

 
—

 
175

Restricted cash
26

 
89

 
—

 
115

Finance and other receivables, net
512

 
2,500

 
(589
)
 
2,423

Inventories
1,336

 
16

 
—

 
1,352

Goodwill
38

 
—

 
—

 
38

Property and equipment, net
1,221

 
253

 
—

 
1,474

Investments in and advances to financial services operations
573

 
—

 
(573
)
 
—

Investments in non-consolidated affiliates
67

 
—

 
—

 
67

Deferred taxes, net
157

 
16

 
—

 
173

Other assets
320

 
28

 
—

 
348

Total assets
$
4,983

 
$
2,964

 
$
(1,162
)
 
$
6,785

Liabilities and stockholders' equity (deficit)
 
 
 
 
 
 
 
Accounts payable
$
1,895

 
$
24

 
$
(589
)
 
$
1,330

Debt
2,929

 
2,153

 
—

 
5,082

Postretirement benefits liabilities
2,877

 
39

 
—

 
2,916

Other liabilities
1,970

 
175

 
—

 
2,145

Total liabilities
9,671

 
2,391

 
(589
)
 
11,473

Redeemable equity securities
1

 
—

 
—

 
1

Stockholders' equity attributable to non-controlling interest
31

 
—

 
—

 
31

Stockholders' equity (deficit) attributable to controlling interest
(4,720
)
 
573

 
(573
)
 
(4,720
)
Total liabilities and stockholders' equity (deficit)
$
4,983

 
$
2,964

 
$
(1,162
)
 
$
6,785


E-19


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, 2014
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Balance Sheet
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
440

 
$
57

 
$
—

 
$
497

Marketable securities
578

 
27

 
—

 
605

Restricted cash
22

 
149

 
—

 
171

Finance and other receivables, net
579

 
2,650

 
(613
)
 
2,616

Inventories
1,303

 
16

 
—

 
1,319

Goodwill
38

 
—

 
—

 
38

Property and equipment, net
1,294

 
268

 
—

 
1,562

Investments in and advances to financial services operations
698

 
—

 
(698
)
 
—

Investments in non-consolidated affiliates
73

 
—

 
—

 
73

Deferred taxes, net
183

 
17

 
—

 
200

Other assets
335

 
27

 
—

 
362

Total assets
$
5,543

 
$
3,211

 
$
(1,311
)
 
$
7,443

Liabilities and stockholders' equity (deficit)
 
 
 
 
 
 
 
Accounts payable
$
2,144

 
$
33

 
$
(613
)
 
$
1,564

Debt
2,958

 
2,266

 
—

 
5,224

Postretirement benefits liabilities
2,916

 
40

 
—

 
2,956

Other liabilities
2,143

 
174

 
—

 
2,317

Total liabilities
10,161

 
2,513

 
(613
)
 
12,061

Redeemable equity securities
2

 
—

 
—

 
2

Stockholders' equity attributable to non-controlling interest
34

 
—

 
—

 
34

Stockholders' equity (deficit) attributable to controlling interest
(4,654
)
 
698

 
(698
)
 
(4,654
)
Total liabilities and stockholders' equity (deficit)
$
5,543

 
$
3,211

 
$
(1,311
)
 
$
7,443



E-20


Condensed Statements of Cash Flows
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
 
For the Three Months Ended January 31, 2015
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Condensed Consolidated Statement of Cash Flows
Cash flows from operating activities
 
 
 
 
 
 
 
Net income (loss)
$
(33
)
 
$
15

 
$
(15
)
 
$
(33
)
Adjustments to reconcile net income (loss) to cash used in operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
58

 
—

 
—

 
58

Depreciation of equipment leased to others
9

 
12

 
—

 
21

Amortization of debt issuance costs and discount
6

 
3

 
—

 
9

Deferred income taxes
(12
)
 
—

 
—

 
(12
)
Asset impairment charges
3

 
4

 
—

 
7

Equity in loss of non-consolidated affiliates
(2
)
 
—

 
—

 
(2
)
Equity in income of financial services affiliates
(15
)
 
—

 
15

 
—

Dividends from financial services operations
125

 
(125
)
 
—

 
—

Dividends from non-consolidated affiliates
7

 
—

 
—

 
7

Change in intercompany receivables and payables
57

 
(57
)
 
—

 
—

Other, net
(346
)
 
80

 
—

 
(266
)
Net cash used in operating activities
(143
)
 
(68
)
 
—

 
(211
)
Cash flows from investing activities
 
 
 
 
 
 


Purchases of marketable securities
(140
)
 
—

 
—

 
(140
)
Sales of marketable securities
506

 
1

 
—

 
507

Maturities of marketable securities
63

 
—

 
—

 
63

Net change in restricted cash and cash equivalents
(3
)
 
56

 
—

 
53

Capital expenditures
(17
)
 
—

 
—

 
(17
)
Purchase of equipment leased to others
3

 
(13
)
 
—

 
(10
)
Other investing activities
—

 
1

 
—

 
1

Net cash provided by investing activities
412

 
45

 
—

 
457

Net cash used in financing activities
(109
)
 
—

 
—

 
(109
)
Effect of exchange rate changes on cash and cash equivalents
(17
)
 
3

 
—

 
(14
)
Increase (decrease) in cash and cash equivalents
143

 
(20
)
 
—

 
123

Cash and cash equivalents at beginning of the period
440

 
57

 
—

 
497

Cash and cash equivalents at end of the period
$
583

 
$
37

 
$
—

 
$
620


E-21


Condensed Statements of Cash Flows
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
 
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
)
Asset impairment charges
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 of marketable securities
521

 
—

 
—

 
521

Maturities of marketable securities
57

 
—

 
—

 
57

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
)
Increase (decrease) in cash and cash equivalents
(224
)
 
18

 
—

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

 
28

 
—

 
755

Cash and cash equivalents at end of the period
$
503

 
$
46

 
$
—

 
$
549




E-22

NAVISTAR INTERNATIONAL CORP Reports