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EX-32.2 - EXHIBIT 32.2 - NAVISTAR INTERNATIONAL CORPnavex3227312018.htm
EX-32.1 - EXHIBIT 32.1 - NAVISTAR INTERNATIONAL CORPnavex3217312018.htm
EX-31.2 - EXHIBIT 31.2 - NAVISTAR INTERNATIONAL CORPnavex3127312018.htm
EX-31.1 - EXHIBIT 31.1 - NAVISTAR INTERNATIONAL CORPnavex3117312018.htm
EX-10 - EXHIBIT 10 - NAVISTAR INTERNATIONAL CORPnavex107312018.htm
10-Q - 10-Q - NAVISTAR INTERNATIONAL CORPnav10q2018q3.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 Net cash provided by (used in) 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, 2018
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
2,566

 
$

 
$

 
$
2,566

Finance revenues

 
65

 
(25
)
 
40

Sales and revenues, net
2,566

 
65

 
(25
)
 
2,606

Costs of products sold
2,096

 

 

 
2,096

Restructuring charges
1

 

 

 
1

Asset impairment charges
7

 
1

 

 
8

Selling, general and administrative expenses
221

 
23

 

 
244

Engineering and product development costs
72

 

 

 
72

Interest expense
60

 
22

 

 
82

Other income, net
(48
)
 
(4
)
 
(25
)
 
(77
)
Total costs and expenses
2,409

 
42

 
(25
)
 
2,426

Equity in income of non-consolidated affiliates

 

 

 

Income before equity income from financial services operations and income taxes
157

 
23

 

 
180

Equity income from financial services operations
17

 

 
(17
)
 

Income from continuing operations before income tax
174

 
23

 
(17
)
 
180

Income tax benefit (expense)
3

 
(6
)
 

 
(3
)
Income from continuing operations
177

 
17

 
(17
)
 
177

Income (loss) from discontinued operations, net of tax

 

 

 

Net income
177

 
17

 
(17
)
 
177

Less: Net income attributable to non-controlling interests
7

 

 

 
7

Net income attributable to Navistar International Corporation
$
170

 
$
17

 
$
(17
)
 
$
170





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, 2018
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
6,815

 
$

 
$

 
$
6,815

Finance revenues

 
187

 
(69
)
 
118

Sales and revenues, net
6,815

 
187

 
(69
)
 
6,933

Costs of products sold
5,615

 

 

 
5,615

Restructuring charges
(1
)
 

 

 
(1
)
Asset impairment charges
10

 
1

 

 
11

Selling, general and administrative expenses
619

 
68

 
(1
)
 
686

Engineering and product development costs
222

 

 

 
222

Interest expense
176

 
64

 

 
240

Other expense (income), net
39

 
(8
)
 
(68
)
 
(37
)
Total costs and expenses
6,680

 
125

 
(69
)
 
6,736

Equity in income of non-consolidated affiliates

 

 

 

Income before equity income from financial services operations and income taxes
135

 
62

 

 
197

Equity income from financial services operations
49

 

 
(49
)
 

Income from continuing operations before income tax
184

 
62

 
(49
)
 
197

Income tax expense
(12
)
 
(13
)
 

 
(25
)
Income from continuing operations
172

 
49

 
(49
)
 
172

Income (loss) from discontinued operations, net of tax

 

 

 

Net income
172

 
49

 
(49
)
 
172

Less: Net income attributable to non-controlling interests
20

 

 

 
20

Net income attributable to Navistar International Corporation
$
152

 
$
49

 
$
(49
)
 
$
152


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, 2017
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
2,178

 
$

 
$

 
$
2,178

Finance revenues

 
62

 
(27
)
 
35

Sales and revenues, net
2,178

 
62

 
(27
)
 
2,213

Costs of products sold
1,803

 

 

 
1,803

Restructuring charges
(13
)
 

 

 
(13
)
Asset impairment charges
6

 

 

 
6

Selling, general and administrative expenses
215

 
19

 
(1
)
 
233

Engineering and product development costs
61

 

 

 
61

Interest expense
67

 
24

 

 
91

Other expense (income), net
22

 
(4
)
 
(26
)
 
(8
)
Total costs and expenses
2,161

 
39

 
(27
)
 
2,173

Equity in income of non-consolidated affiliates
1

 

 

 
1

Income before equity income from financial services operations and income taxes
18

 
23

 

 
41

Equity income from financial services operations
14

 

 
(14
)
 

Income from continuing operations before income taxes
32

 
23

 
(14
)
 
41

Income tax benefit (expense)
9

 
(9
)
 

 

Income from continuing operations
41

 
14

 
(14
)
 
41

Income from discontinued operations, net of tax
1

 

 

 
1

Net income
42

 
14

 
(14
)
 
42

Less: Net income attributable to non-controlling interests
5

 

 

 
5

Net income attributable to Navistar International Corporation
$
37

 
$
14

 
$
(14
)
 
$
37


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, 2017
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Statement of Operations
Sales of manufactured products
$
5,870

 
$

 
$

 
$
5,870

Finance revenues

 
172

 
(70
)
 
102

Sales and revenues, net
5,870

 
172

 
(70
)
 
5,972

Costs of products sold
4,949

 

 

 
4,949

Restructuring charges
(4
)
 

 

 
(4
)
Asset impairment charges
13

 

 

 
13

Selling, general and administrative expenses
591

 
65

 
(2
)
 
654

Engineering and product development costs
189

 

 

 
189

Interest expense
201

 
65

 
(4
)
 
262

Other expense (income), net
66

 
(9
)
 
(64
)
 
(7
)
Total costs and expenses
6,005

 
121

 
(70
)
 
6,056

Equity in income of non-consolidated affiliates
6

 

 

 
6

Income (loss) before equity income from financial services operations and income taxes
(129
)
 
51

 

 
(78
)
Equity income from financial services operations
34

 

 
(34
)
 

Income (loss) from continuing operations before income taxes
(95
)
 
51

 
(34
)
 
(78
)
Income tax benefit (expense)
7

 
(17
)
 

 
(10
)
Income (loss) from continuing operations
(88
)
 
34

 
(34
)
 
(88
)
Income from discontinued operations, net of tax
1

 

 

 
1

Net income (loss)
(87
)
 
34

 
(34
)
 
(87
)
Less: Net income attributable to non-controlling interests
18

 

 

 
18

Net income (loss) attributable to Navistar International Corporation
$
(105
)
 
$
34

 
$
(34
)
 
$
(105
)

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, 2018
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Balance Sheet
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
989

 
$
33

 
$

 
$
1,022

Marketable securities
95

 

 

 
95

Restricted cash
28

 
172

 

 
200

Finance and other receivables, net
452

 
2,161

 
(264
)
 
2,349

Inventories
1,391

 
9

 

 
1,400

Goodwill
38

 

 

 
38

Property and equipment, net
1,022

 
275

 

 
1,297

Investments in and advances to financial services operations
572

 

 
(572
)
 

Investments in non-consolidated affiliates
53

 

 

 
53

Deferred taxes, net
127

 
3

 

 
130

Other assets
322

 
18

 

 
340

Total assets
$
5,089

 
$
2,671

 
$
(836
)
 
$
6,924

Liabilities and stockholders' equity (deficit)
 
 
 
 
 
 
 
Accounts payable
$
1,755

 
$
36

 
$
(264
)
 
$
1,527

Debt
3,625

 
1,975

 

 
5,600

Postretirement benefits liabilities
2,435

 

 

 
2,435

Other liabilities
1,608

 
88

 

 
1,696

Total liabilities
9,423

 
2,099

 
(264
)
 
11,258

Stockholders' equity attributable to non-controlling interest
5

 

 

 
5

Stockholders' equity (deficit) attributable to controlling interest
(4,339
)
 
572

 
(572
)
 
(4,339
)
Total liabilities and stockholders' equity (deficit)
$
5,089

 
$
2,671

 
$
(836
)
 
$
6,924


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, 2017
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Consolidated Balance Sheet
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
666

 
$
40

 
$

 
$
706

Marketable securities
370

 

 

 
370

Restricted cash
24

 
110

 

 
134

Finance and other receivables, net
404

 
1,854

 
(69
)
 
2,189

Inventories
850

 
7

 

 
857

Goodwill
38

 

 

 
38

Property and equipment, net
1,083

 
243

 

 
1,326

Investments in and advances to financial services operations
517

 

 
(517
)
 

Investments in non-consolidated affiliates
56

 

 

 
56

Deferred taxes, net
125

 
4

 

 
129

Other assets
312

 
18

 

 
330

Total assets
$
4,445

 
$
2,276

 
$
(586
)
 
$
6,135

Liabilities and stockholders' equity (deficit)
 
 
 
 
 
 
 
Accounts payable
$
1,330

 
$
31

 
$
(69
)
 
$
1,292

Debt
3,407

 
1,651

 

 
5,058

Postretirement benefits liabilities
2,556

 

 

 
2,556

Other liabilities
1,726

 
77

 

 
1,803

Total liabilities
9,019

 
1,759

 
(69
)
 
10,709

Stockholders' equity attributable to non-controlling interest
4

 

 

 
4

Stockholders' equity (deficit) attributable to controlling interest
(4,578
)
 
517

 
(517
)
 
(4,578
)
Total liabilities and stockholders' equity (deficit)
$
4,445

 
$
2,276

 
$
(586
)
 
$
6,135


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, 2018
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Condensed Consolidated Statement of Cash Flows
Cash flows from operating activities
 
 
 
 
 
 
 
Net income
$
172

 
$
49

 
$
(49
)
 
$
172

Adjustments to reconcile net income to cash used in operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
106

 
1

 

 
107

Depreciation of equipment leased to others
13

 
40

 

 
53

Amortization of debt issuance costs and discount
16

 
7

 

 
23

Deferred income taxes
(3
)
 

 

 
(3
)
Asset impairment charges
10

 
1

 

 
11

Equity in income of financial services affiliates
(49
)
 

 
49

 

Dividends from non-consolidated affiliates
4

 

 

 
4

Change in intercompany receivables and payables
49

 
(49
)
 

 

Other, net
(472
)
 
(75
)
 

 
(547
)
Net cash used in operating activities
(154
)
 
(26
)
 

 
(180
)
Cash flows from investing activities
 
 
 
 
 
 
 
Purchases of marketable securities
(214
)
 

 

 
(214
)
Sales of marketable securities
460

 

 

 
460

Maturities of marketable securities
29

 

 

 
29

Net change in restricted cash and cash equivalents
(4
)
 
(62
)
 

 
(66
)
Capital expenditures
(78
)
 
(1
)
 

 
(79
)
Purchase of equipment leased to others
(62
)
 
(80
)
 

 
(142
)
Other investing activities
(2
)
 
8

 

 
6

Net cash provided by (used in) investing activities
129

 
(135
)
 

 
(6
)
Net cash provided by financing activities
363

 
155

 

 
518

Effect of exchange rate changes on cash and cash equivalents
(15
)
 
(1
)
 

 
(16
)
Increase (decrease) in cash and cash equivalents
323

 
(7
)
 

 
316

Cash and cash equivalents at beginning of the period
666

 
40

 

 
706

Cash and cash equivalents at end of the period
$
989

 
$
33

 
$

 
$
1,022


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, 2017
(in millions)
Manufacturing Operations
 
Financial Services Operations
 
Adjustments
 
Condensed Consolidated Statement of Cash Flows
Cash flows from operating activities
 
 
 
 
 
 
 
Net income (loss)
$
(87
)
 
$
34

 
$
(34
)
 
$
(87
)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
111

 
2

 

 
113

Depreciation of equipment leased to others
20

 
36

 

 
56

Amortization of debt issuance costs and discount
26

 
10

 

 
36

Deferred income taxes
(15
)
 
(1
)
 

 
(16
)
Asset impairment charges
13

 

 

 
13

Gain on sales of investments and businesses, net
(5
)
 

 

 
(5
)
Equity in income of non-consolidated affiliates
(6
)
 

 

 
(6
)
Equity in income of financial services affiliates
(34
)
 

 
34

 

Dividends from financial services operations
8

 

 
(8
)
 

Dividends from non-consolidated affiliates
7

 

 

 
7

Change in intercompany receivables and payables
(16
)
 
16

 

 

Other, net
(202
)
 
(77
)
 

 
(279
)
Net cash provided by (used in) operating activities
(180
)
 
20

 
(8
)
 
(168
)
Cash flows from investing activities
 
 
 
 
 
 
 
Purchases of marketable securities
(619
)
 

 

 
(619
)
Sales of marketable securities
586

 

 

 
586

Maturities of marketable securities
17

 

 

 
17

Net change in restricted cash and cash equivalents
2

 
(27
)
 

 
(25
)
Capital expenditures
(92
)
 
(1
)
 

 
(93
)
Purchase of equipment leased to others
(61
)
 
(35
)
 

 
(96
)
Other investing activities
24

 
12

 

 
36

Net cash used in investing activities
(143
)
 
(51
)
 

 
(194
)
Net cash provided by financing activities
428

 
32

 
8

 
468

Effect of exchange rate changes on cash and cash equivalents
2

 
(1
)
 

 
1

Increase in cash and cash equivalents
107

 

 

 
107

Cash and cash equivalents at beginning of the period
761

 
43

 

 
804

Cash and cash equivalents at end of the period
$
868

 
$
43

 
$

 
$
911


E-13