Attached files
| file | filename |
|---|---|
| 10-Q - 10-Q - NAVISTAR INTERNATIONAL CORP | nav2016q3.htm |
| EX-32.2 - EXHIBIT 32.2 - NAVISTAR INTERNATIONAL CORP | navex3227312016.htm |
| EX-32.1 - EXHIBIT 32.1 - NAVISTAR INTERNATIONAL CORP | navex3217312016.htm |
| EX-31.2 - EXHIBIT 31.2 - NAVISTAR INTERNATIONAL CORP | navex3127312016.htm |
| EX-31.1 - EXHIBIT 31.1 - NAVISTAR INTERNATIONAL CORP | navex3117312016.htm |
| EX-10.98 - EXHIBIT 10.98 - NAVISTAR INTERNATIONAL CORP | navex10987312016.htm |
| EX-10.97 - EXHIBIT 10.97 - NAVISTAR INTERNATIONAL CORP | navex10977312016.htm |
| EX-10.96 - EXHIBIT 10.96 - NAVISTAR INTERNATIONAL CORP | navex10967312016.htm |
| EX-10 - EXHIBIT 10 - NAVISTAR INTERNATIONAL CORP | navex107312016.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 July 31, 2016 | |||||||||||||||
(in millions) | Manufacturing Operations | Financial Services Operations | Adjustments | Consolidated Statement of Operations | |||||||||||
Sales of manufactured products | $ | 2,052 | $ | — | $ | — | $ | 2,052 | |||||||
Finance revenues | — | 60 | (26 | ) | 34 | ||||||||||
Sales and revenues, net | 2,052 | 60 | (26 | ) | 2,086 | ||||||||||
Costs of products sold | 1,757 | — | — | 1,757 | |||||||||||
Restructuring charges | 5 | — | — | 5 | |||||||||||
Asset impairment charges | 12 | — | — | 12 | |||||||||||
Selling, general and administrative expenses | 177 | 21 | (1 | ) | 197 | ||||||||||
Engineering and product development costs | 62 | — | — | 62 | |||||||||||
Interest expense | 65 | 21 | (2 | ) | 84 | ||||||||||
Other (income) expense, net | 16 | (8 | ) | (23 | ) | (15 | ) | ||||||||
Total costs and expenses | 2,094 | 34 | (26 | ) | 2,102 | ||||||||||
Equity in income of non-consolidated affiliates | 2 | — | — | 2 | |||||||||||
Income (loss) before equity income from financial services operations and income taxes | (40 | ) | 26 | — | (14 | ) | |||||||||
Equity income (loss) from financial services operations | 17 | — | (17 | ) | — | ||||||||||
Income (loss) from continuing operations before income taxes | (23 | ) | 26 | (17 | ) | (14 | ) | ||||||||
Income tax expense | (5 | ) | (9 | ) | — | (14 | ) | ||||||||
Income (loss) from continuing operations | (28 | ) | 17 | (17 | ) | (28 | ) | ||||||||
Income (loss) from discontinued operations, net of tax | — | — | — | — | |||||||||||
Net income (loss) | (28 | ) | 17 | (17 | ) | (28 | ) | ||||||||
Less: Income attributable to non-controlling interests | 6 | — | — | 6 | |||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (34 | ) | $ | 17 | $ | (17 | ) | $ | (34 | ) | ||||
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 Nine Months Ended July 31, 2016 | |||||||||||||||
(in millions) | Manufacturing Operations | Financial Services Operations | Adjustments | Consolidated Statement of Operations | |||||||||||
Sales of manufactured products | $ | 5,946 | $ | — | $ | — | $ | 5,946 | |||||||
Finance revenues | — | 177 | (75 | ) | 102 | ||||||||||
Sales and revenues, net | 5,946 | 177 | (75 | ) | 6,048 | ||||||||||
Costs of products sold | 5,068 | — | — | 5,068 | |||||||||||
Restructuring charges | 11 | — | — | 11 | |||||||||||
Asset impairment charges | 17 | — | — | 17 | |||||||||||
Selling, general and administrative expenses | 543 | 63 | (2 | ) | 604 | ||||||||||
Engineering and product development costs | 181 | — | — | 181 | |||||||||||
Interest expense | 193 | 59 | (6 | ) | 246 | ||||||||||
Other (income) expense, net | 27 | (22 | ) | (67 | ) | (62 | ) | ||||||||
Total costs and expenses | 6,040 | 100 | (75 | ) | 6,065 | ||||||||||
Equity in income of non-consolidated affiliates | 3 | — | — | 3 | |||||||||||
Income (loss) before equity income from financial services operations and income taxes | (91 | ) | 77 | — | (14 | ) | |||||||||
Equity income (loss) from financial services operations | 48 | — | (48 | ) | — | ||||||||||
Income (loss) from continuing operations before income taxes | (43 | ) | 77 | (48 | ) | (14 | ) | ||||||||
Income tax benefit (expense) | 4 | (29 | ) | — | (25 | ) | |||||||||
Income (loss) from continuing operations | (39 | ) | 48 | (48 | ) | (39 | ) | ||||||||
Income (loss) from discontinued operations, net of tax | — | — | — | — | |||||||||||
Net income (loss) | (39 | ) | 48 | (48 | ) | (39 | ) | ||||||||
Less: Income attributable to non-controlling interests | 24 | — | — | 24 | |||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (63 | ) | $ | 48 | $ | (48 | ) | $ | (63 | ) | ||||
E-7
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 July 31, 2015 | |||||||||||||||
(in millions) | Manufacturing Operations | Financial Services Operations | Adjustments | Consolidated Statement of Operations | |||||||||||
Sales of manufactured products | $ | 2,501 | $ | — | $ | — | $ | 2,501 | |||||||
Finance revenues | — | 63 | (26 | ) | 37 | ||||||||||
Sales and revenues, net | 2,501 | 63 | (26 | ) | 2,538 | ||||||||||
Costs of products sold | 2,172 | — | — | 2,172 | |||||||||||
Restructuring charges | 13 | — | — | 13 | |||||||||||
Asset impairment charges | 7 | — | — | 7 | |||||||||||
Selling, general and administrative expenses | 196 | 24 | — | 220 | |||||||||||
Engineering and product development costs | 71 | — | — | 71 | |||||||||||
Interest expense | 59 | 19 | (3 | ) | 75 | ||||||||||
Other (income) expense, net | 23 | (6 | ) | (23 | ) | (6 | ) | ||||||||
Total costs and expenses | 2,541 | 37 | (26 | ) | 2,552 | ||||||||||
Equity in income of non-consolidated affiliates | 3 | — | — | 3 | |||||||||||
Income (loss) before equity income from financial services operations and income taxes | (37 | ) | 26 | — | (11 | ) | |||||||||
Equity income (loss) from financial services operations | 19 | — | (19 | ) | — | ||||||||||
Income (loss) from continuing operations before income taxes | (18 | ) | 26 | (19 | ) | (11 | ) | ||||||||
Income tax expense | (5 | ) | (7 | ) | — | (12 | ) | ||||||||
Income (loss) from continuing operations | (23 | ) | 19 | (19 | ) | (23 | ) | ||||||||
Income from discontinued operations, net of tax | 2 | — | — | 2 | |||||||||||
Net income (loss) | (21 | ) | 19 | (19 | ) | (21 | ) | ||||||||
Less: Income attributable to non-controlling interests | 7 | — | — | 7 | |||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (28 | ) | $ | 19 | $ | (19 | ) | $ | (28 | ) | ||||
E-8
Condensed Statements of Revenues and Expenses
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
For the Nine Months Ended July 31, 2015 | |||||||||||||||
(in millions) | Manufacturing Operations | Financial Services Operations | Adjustments | Consolidated Statement of Operations | |||||||||||
Sales of manufactured products | $ | 7,544 | $ | — | $ | — | $ | 7,544 | |||||||
Finance revenues | — | 183 | (75 | ) | 108 | ||||||||||
Sales and revenues, net | 7,544 | 183 | (75 | ) | 7,652 | ||||||||||
Costs of products sold | 6,577 | — | — | 6,577 | |||||||||||
Restructuring charges | 22 | — | — | 22 | |||||||||||
Asset impairment charges | 15 | — | — | 15 | |||||||||||
Selling, general and administrative expenses | 635 | 71 | (2 | ) | 704 | ||||||||||
Engineering and product development costs | 226 | — | — | 226 | |||||||||||
Interest expense | 179 | 57 | (9 | ) | 227 | ||||||||||
Other (income) expense, net | 44 | (17 | ) | (64 | ) | (37 | ) | ||||||||
Total costs and expenses | 7,698 | 111 | (75 | ) | 7,734 | ||||||||||
Equity in income of non-consolidated affiliates | 6 | — | — | 6 | |||||||||||
Income (loss) before equity income from financial services operations and income taxes | (148 | ) | 72 | — | (76 | ) | |||||||||
Equity income (loss) from financial services operations | 49 | — | (49 | ) | — | ||||||||||
Income (loss) from continuing operations before income taxes | (99 | ) | 72 | (49 | ) | (76 | ) | ||||||||
Income tax expense | (14 | ) | (23 | ) | — | (37 | ) | ||||||||
Income (loss) from continuing operations | (113 | ) | 49 | (49 | ) | (113 | ) | ||||||||
Income from discontinued operations, net of tax | 2 | — | — | 2 | |||||||||||
Net income (loss) | (111 | ) | 49 | (49 | ) | (111 | ) | ||||||||
Less: Income attributable to non-controlling interests | 23 | — | — | 23 | |||||||||||
Net income (loss) attributable to Navistar International Corporation | $ | (134 | ) | $ | 49 | $ | (49 | ) | $ | (134 | ) | ||||
E-9
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 July 31, 2016 | |||||||||||||||
(in millions) | Manufacturing Operations | Financial Services Operations | Adjustments | Consolidated Balance Sheet | |||||||||||
Assets | |||||||||||||||
Cash and cash equivalents | $ | 510 | $ | 37 | $ | — | $ | 547 | |||||||
Marketable securities | 130 | 10 | — | 140 | |||||||||||
Restricted cash | 19 | 162 | — | 181 | |||||||||||
Finance and other receivables, net | 317 | 2,111 | (498 | ) | 1,930 | ||||||||||
Inventories | 1,068 | 16 | — | 1,084 | |||||||||||
Goodwill | 38 | — | — | 38 | |||||||||||
Property and equipment, net | 996 | 261 | — | 1,257 | |||||||||||
Investments in and advances to financial services operations | 587 | — | (587 | ) | — | ||||||||||
Investments in non-consolidated affiliates | 60 | — | — | 60 | |||||||||||
Deferred taxes, net | 148 | 5 | — | 153 | |||||||||||
Other assets | 302 | 27 | — | 329 | |||||||||||
Total assets | $ | 4,175 | $ | 2,629 | $ | (1,085 | ) | $ | 5,719 | ||||||
Liabilities and stockholders' equity (deficit) | |||||||||||||||
Accounts payable | $ | 1,463 | $ | 38 | $ | (498 | ) | $ | 1,003 | ||||||
Debt | 3,131 | 1,934 | — | 5,065 | |||||||||||
Postretirement benefits liabilities | 2,998 | — | — | 2,998 | |||||||||||
Other liabilities | 1,717 | 70 | — | 1,787 | |||||||||||
Total liabilities | 9,309 | 2,042 | (498 | ) | 10,853 | ||||||||||
Stockholders' equity attributable to non-controlling interest | 3 | — | — | 3 | |||||||||||
Stockholders' equity (deficit) attributable to controlling interest | (5,137 | ) | 587 | (587 | ) | (5,137 | ) | ||||||||
Total liabilities and stockholders' equity (deficit) | $ | 4,175 | $ | 2,629 | $ | (1,085 | ) | $ | 5,719 | ||||||
E-10
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, 2015 | |||||||||||||||
(in millions) | Manufacturing Operations | Financial Services Operations | Adjustments | Consolidated Balance Sheet | |||||||||||
Assets | |||||||||||||||
Cash and cash equivalents | $ | 877 | $ | 35 | $ | — | $ | 912 | |||||||
Marketable securities | 136 | 23 | — | 159 | |||||||||||
Restricted cash | 24 | 97 | — | 121 | |||||||||||
Finance and other receivables, net | 441 | 2,450 | (454 | ) | 2,437 | ||||||||||
Inventories | 1,125 | 10 | — | 1,135 | |||||||||||
Goodwill | 38 | — | — | 38 | |||||||||||
Property and equipment, net | 1,082 | 263 | — | 1,345 | |||||||||||
Investments in and advances to financial services operations | 637 | — | (637 | ) | — | ||||||||||
Investments in non-consolidated affiliates | 66 | — | — | 66 | |||||||||||
Deferred taxes, net | 157 | 7 | — | 164 | |||||||||||
Other assets | 292 | 23 | — | 315 | |||||||||||
Total assets | $ | 4,875 | $ | 2,908 | $ | (1,091 | ) | $ | 6,692 | ||||||
Liabilities and stockholders' equity (deficit) | |||||||||||||||
Accounts payable | $ | 1,707 | $ | 48 | $ | (454 | ) | $ | 1,301 | ||||||
Debt | 3,198 | 2,100 | — | 5,298 | |||||||||||
Postretirement benefits liabilities | 3,088 | — | — | 3,088 | |||||||||||
Other liabilities | 2,042 | 123 | — | 2,165 | |||||||||||
Total liabilities | 10,035 | 2,271 | (454 | ) | 11,852 | ||||||||||
Stockholders' equity attributable to non-controlling interest | 7 | — | — | 7 | |||||||||||
Stockholders' equity (deficit) attributable to controlling interest | (5,167 | ) | 637 | (637 | ) | (5,167 | ) | ||||||||
Total liabilities and stockholders' equity (deficit) | $ | 4,875 | $ | 2,908 | $ | (1,091 | ) | $ | 6,692 | ||||||
E-11
Condensed Statements of Cash Flows
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
For the Nine Months Ended July 31, 2016 | |||||||||||||||
(in millions) | Manufacturing Operations | Financial Services Operations | Adjustments | Condensed Consolidated Statement of Cash Flows | |||||||||||
Cash flows from operating activities | |||||||||||||||
Net income (loss) | $ | (39 | ) | $ | 48 | $ | (48 | ) | $ | (39 | ) | ||||
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | |||||||||||||||
Depreciation and amortization | 109 | 2 | — | 111 | |||||||||||
Depreciation of equipment leased to others | 18 | 35 | — | 53 | |||||||||||
Amortization of debt issuance costs and discount | 18 | 9 | — | 27 | |||||||||||
Deferred income taxes | (1 | ) | 1 | — | — | ||||||||||
Asset impairment charges | 17 | — | — | 17 | |||||||||||
Loss on sales of investments and businesses, net | 2 | — | — | 2 | |||||||||||
Equity in income of non-consolidated affiliates | (3 | ) | — | — | (3 | ) | |||||||||
Equity in income of financial services affiliates | (48 | ) | — | 48 | — | ||||||||||
Dividends from financial services operations | 80 | — | (80 | ) | — | ||||||||||
Dividends from non-consolidated affiliates | 8 | — | — | 8 | |||||||||||
Change in intercompany receivables and payables | 80 | (80 | ) | — | — | ||||||||||
Other, net | (469 | ) | 279 | — | (190 | ) | |||||||||
Net cash provided by (used in) operating activities | (228 | ) | 294 | (80 | ) | (14 | ) | ||||||||
Cash flows from investing activities | |||||||||||||||
Purchases of marketable securities | (378 | ) | — | — | (378 | ) | |||||||||
Sales of marketable securities | 344 | 14 | — | 358 | |||||||||||
Maturities of marketable securities | 39 | — | — | 39 | |||||||||||
Net change in restricted cash and cash equivalents | 4 | (68 | ) | — | (64 | ) | |||||||||
Capital expenditures | (82 | ) | (1 | ) | — | (83 | ) | ||||||||
Purchase of equipment leased to others | (1 | ) | (93 | ) | — | (94 | ) | ||||||||
Other investing activities | 32 | 23 | — | 55 | |||||||||||
Net cash used in investing activities | (42 | ) | (125 | ) | — | (167 | ) | ||||||||
Net cash provided by (used in) financing activities | (120 | ) | (177 | ) | 80 | (217 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | 23 | 10 | — | 33 | |||||||||||
Increase (decrease) in cash and cash equivalents | (367 | ) | 2 | — | (365 | ) | |||||||||
Cash and cash equivalents at beginning of the period | 877 | 35 | — | 912 | |||||||||||
Cash and cash equivalents at end of the period | $ | 510 | $ | 37 | $ | — | $ | 547 | |||||||
E-12
Condensed Statements of Cash Flows
Navistar International Corporation
(Manufacturing operations with financial services operations on an after-tax equity basis)
For the Nine Months Ended July 31, 2015 | ||||||||||||||||
(in millions) | Manufacturing Operations | Financial Services Operations | Adjustments | Condensed Consolidated Statement of Cash Flows | ||||||||||||
Cash flows from operating activities | ||||||||||||||||
Net income (loss) | $ | (111 | ) | $ | 49 | $ | (49 | ) | $ | (111 | ) | |||||
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | ||||||||||||||||
Depreciation and amortization | 163 | 2 | — | 165 | ||||||||||||
Depreciation of equipment leased to others | 20 | 36 | — | 56 | ||||||||||||
Amortization of debt issuance costs and discount | 18 | 10 | — | 28 | ||||||||||||
Deferred income taxes | (9 | ) | — | — | (9 | ) | ||||||||||
Asset impairment charges | 11 | 4 | — | 15 | ||||||||||||
Equity in loss of non-consolidated affiliates | (6 | ) | — | — | (6 | ) | ||||||||||
Equity in income of financial services operations | (49 | ) | — | 49 | — | |||||||||||
Dividends from financial services operations | 125 | — | (125 | ) | — | |||||||||||
Dividends from non-consolidated affiliates | 8 | — | — | 8 | ||||||||||||
Change in intercompany receivables and payables(A) | 5 | (5 | ) | — | — | |||||||||||
Other, net(A) | (140 | ) | (20 | ) | — | (160 | ) | |||||||||
Net cash provided by (used in) operating activities | 35 | 76 | (125 | ) | (14 | ) | ||||||||||
Cash flows from investing activities | ||||||||||||||||
Purchases of marketable securities | (515 | ) | — | — | (515 | ) | ||||||||||
Sales of marketable securities | 763 | 1 | — | 764 | ||||||||||||
Maturities of marketable securities | 63 | — | — | 63 | ||||||||||||
Net change in restricted cash and cash equivalents | 2 | (194 | ) | — | (192 | ) | ||||||||||
Capital expenditures | (70 | ) | (2 | ) | — | (72 | ) | |||||||||
Purchase of equipment leased to others | 3 | (61 | ) | — | (58 | ) | ||||||||||
Acquisition of intangibles | (4 | ) | — | — | — | (4 | ) | |||||||||
Other investing activities | 15 | 4 | — | 19 | ||||||||||||
Net cash provided by (used in) investing activities | 257 | (252 | ) | — | 5 | |||||||||||
Net cash provided by (used in) financing activities | (177 | ) | 138 | 125 | 86 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | (48 | ) | 21 | — | (27 | ) | ||||||||||
Increase (decrease) in cash and cash equivalents | 67 | (17 | ) | — | 50 | |||||||||||
Cash and cash equivalents at beginning of the period | 440 | 57 | — | 497 | ||||||||||||
Cash and cash equivalents at end of the period | $ | 507 | $ | 40 | $ | — | $ | 547 | ||||||||
_________________________
(A) | Adjustments are made to Change in intercompany receivables and payables and Other, net within the Cash flows from operating activities section to conform to the 2016 presentation. The reclassification did not impact our Condensed Consolidated Statements of Cash Flows. |
E-13