NAVISTAR INTERNATIONAL CORP - FORM 10-K - EX-99.1 - ADDITIONAL FINANCIAL INFORMATION

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10-K - FORM 10-K - NAVISTAR INTERNATIONAL CORP	d10k.htm
EX-3 - ARTICLES OF INCORPORATION AND BY-LAWS - NAVISTAR INTERNATIONAL CORP	dex3.htm
EX-4 - INSTRUMENTS DEFINING THE RIGHTS OF SECURITY HOLDERS, INCLUDING INDENTURES - NAVISTAR INTERNATIONAL CORP	dex4.htm
EX-1 - UNDERWRITING AGREEMENT - NAVISTAR INTERNATIONAL CORP	dex1.htm
EX-10 - MATERIAL CONTRACTS - NAVISTAR INTERNATIONAL CORP	dex10.htm
EX-23 - CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - NAVISTAR INTERNATIONAL CORP	dex23.htm
EX-21 - SUBSIDIARIES OF THE REGISTRANT - NAVISTAR INTERNATIONAL CORP	dex21.htm
EX-24 - POWER OF ATTORNEY - NAVISTAR INTERNATIONAL CORP	dex24.htm
EX-12 - COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - NAVISTAR INTERNATIONAL CORP	dex12.htm
EX-31.1 - CEO CERTIFICATION PURSUANT TO SECTION 302 - NAVISTAR INTERNATIONAL CORP	dex311.htm
EX-31.2 - CFO CERTIFICATION PURSUANT TO SECTION 302 - NAVISTAR INTERNATIONAL CORP	dex312.htm
EX-32.1 - CEO CERTIFICATION PURSUANT TO SECTION 906 - NAVISTAR INTERNATIONAL CORP	dex321.htm
EX-32.2 - CFO CERTIFICATION PURSUANT TO SECTION 906 - NAVISTAR INTERNATIONAL CORP	dex322.htm
EX-10.103 - LETTER DATED OCTOBER 20, 2009 TO WILLIAM A. CATON - NAVISTAR INTERNATIONAL CORP	dex10103.htm
EX-10.104 - COMPENSATION COMMITTEE AND BOARD OF DIRECTORS - NAVISTAR INTERNATIONAL CORP	dex10104.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 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. The manufacturing operations financial information represents non-GAAP financial measures. The reconciling differences between these non-GAAP financial measures and our GAAP consolidated financial statements in Item 8 are our financial services operations, which are included on a pre-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’ 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 (with financial services operations on a pre-tax equity basis)


	For the Year Ended October 31, 2009
	Manufacturing Operations			Financial Services Operations		Adjustments			Consolidated Statement of Operations
(in millions)
Sales of manufactured products, net	$	11,300		$		$	—		$	11,300
Finance revenues		—			348		(79	)		269

Sales and revenues, net		11,300			348		(79	)		11,569

Costs of products sold		9,366			—		—			9,366
Restructuring charges		59			—		—			59
Impairment of property and equipment		31			—		—			31
Selling, general and administrative expenses		1,218			130		(4	)		1,344
Engineering and product development costs		433			—		—			433
Interest expense		99			162		(10	)		251
Other (income) expense, net		(179	)		16		(65	)		(228	)

Total costs and expenses		11,027			308		(79	)		11,256
Equity in income of non-consolidated affiliates		46			—		—			46

Income before income taxes, minority interest, extraordinary gain, and equity income from financial services operations		319			40		—			359
Equity income from financial services operations		40			—		(40	)		—

Income before income taxes, minority interest, and extraordinary gain		359			40		(40	)		359
Income tax expense		37			—		—			37

Income before minority interest and extraordinary gain		322			40		(40	)		322
Minority interest in net income of subsidiaries, net of tax		(25	)		—		—			(25	)

Income before extraordinary gain		297			40		(40	)		297
Extraordinary gain, net of tax		23			—		—			23

Net income	$	320		$	40	$	(40	)	$	320

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	For the Year Ended October 31, 2008
	Manufacturing Operations			Financial Services Operations			Adjustments			Consolidated Statement of Operations
(in millions)
Sales of manufactured products, net	$	14,399		$	—		$	—		$	14,399
Finance revenues		—			405			(80	)		325

Sales and revenues, net		14,399			405			(80	)		14,724

Costs of products sold		11,942			—			—			11,942
Impairment of property and equipment		358			—			—			358
Selling, general and administrative expenses		1,292			149			(4	)		1,437
Engineering and product development costs		384			—			—			384
Interest expense		156			313			—			469
Other (income) expense, net		123			(33	)		(76	)		14

Total costs and expenses		14,255			429			(80	)		14,604
Equity in income of non-consolidated affiliates		71			—			—			71

Income (loss) before income taxes and equity income from financial services operations		215			(24	)		—			191
Equity loss from financial services operations		(24	)		—			24			—

Income (loss) before income taxes		191			(24	)		24			191
Income tax expense		57			—			—			57

Net income (loss)	$	134		$	(24	)	$	24		$	134

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	For the Year Ended October 31, 2007
	Manufacturing Operations			Financial Services Operations			Adjustments			Consolidated Statement of Operations
(in millions)
Sales of manufactured products, net	$	11,910		$	—		$	—		$	11,910
Finance revenues		—			518			(133	)		385

Sales and revenues, net		11,910			518			(133	)		12,295

Costs of products sold		10,109			—			—			10,109
Selling, general and administrative expenses		1,380			113			(3	)		1,490
Engineering and product development costs		375			—			—			375
Interest expense		197			305			—			502
Other (income) expense, net		123			(27	)		(130	)		(34	)

Total costs and expenses		12,184			391			(133	)		12,442
Equity in income of non-consolidated affiliates		74			—			—			74

Income (loss) before income taxes, and equity income from financial services operations		(200	)		127			—			(73	)
Equity income from financial services operations		127			—			(127	)		—

Income (loss) before income taxes		(73	)		127			(127	)		(73	)
Income tax expense		47			—			—			47

Net income (loss)	$	(120	)	$	127		$	(127	)	$	(120	)

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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 October 31, 2009
	Manufacturing Operations			Financial Services Operations		Adjustments			Consolidated Balance Sheet
(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 and advances to financial services operations		423			—		(423	)		—
Investments in and advances to 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		257			52		—			309

Total assets	$	6,502		$	4,136	$	(611	)	$	10,027

Accounts payable	$	1,929		$	131	$	(188	)	$	1,872
Postretirement benefits liabilities		2,635			33		—			2,668
Debt		1,975			3,431		—			5,406
Other liabilities		1,702			118		—			1,820
Minority interest		61			—		—			61
Redeemable equity securities		13			—		—			13
Stockholders’ deficit		(1,813	)		423		(423	)		(1,813	)

Total liabilities, redeemable equity securities, and stockholders’ equity(deficit)	$	6,502		$	4,136	$	(611	)	$	10,027

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	As of October 31, 2008
	Manufacturing Operations			Financial Services Operations		Adjustments			Consolidated Balance Sheet
(in millions)
Cash and cash equivalents	$	775		$	86	$	—		$	861
Restricted cash and cash equivalents		8			549		—			557
Accounts receivables		1,051			3,951		(209	)		4,793
Inventories		1,584			44		—			1,628
Investments in and advances to financial services operations		387			7		(394	)		—
Investments in and advances to non-consolidated affiliates		156			—		—			156
Property and equipment, net		1,390			111		—			1,501
Goodwill and intangible assets, net		529			—		—			529
Deferred taxes, net		67			49		—			116
Other assets		177			72		—			249

Total assets	$	6,124		$	4,869	$	(603	)	$	10,390

Accounts payable	$	2,162		$	74	$	(209	)	$	2,027
Postretirement benefits liabilities		1,726			18		—			1,744
Debt		1,834			4,240		—			6,074
Other liabilities		1,754			143		—			1,897
Redeemable equity securities		143			—		—			143
Stockholders’ deficit		(1,495	)		394		(394	)		(1,495	)

Total liabilities, redeemable equity securities, and stockholders’ equity(deficit)	$	6,124		$	4,869	$	(603	)	$	10,390

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Condensed Statements of Cash Activities

Navistar International Corporation (with financial services operations on a pre-tax equity basis)


	For the Year ended October 31, 2009
	Manufacturing Operations			Financial Services Operations			Adjustments			Condensed Consolidated Statement of Cash Flows
(in millions)
Cash flows from operating activities
Net income	$	320		$	40		$	(40	)	$	320
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Depreciation and amortization		290			14			—			304
Depreciation of equipment leased to others		35			21			—			56
Deferred income taxes		(14	)		(4	)		—			(18	)
Impairment of property and equipment, goodwill and intangibles		41			—			—			41
Extraordinary gain on acquisition of subsidiary		(23	)		—			—			(23	)
Gain on increased equity interest in subsidiary		(23	)		—			—			(23	)
Equity in income of non-consolidated affiliates		(46	)		—			—			(46	)
Equity in income of financial services affiliates		(40	)		—			40			—
Dividends from non-consolidated affiliates		59			—			—			59
Other, net		(85	)		633			—			548

Net cash provided by operating activities		514			704			—			1,218

Cash flows from investing activities
Purchases of marketable securities		(382	)		—			—			(382	)
Sales or maturities of marketable securities		384			—			—			384
Net change in restricted cash and cash equivalents		(23	)		94			—			71
Capital expenditures		(148	)		(3	)		—			(151	)
Purchase of equipment leased to others		(2	)		(44	)		—			(46	)
Business acquisitions, net of escrow receipt		(60	)		—			—			(60	)
Other investing activities		(51	)		3			20			(28	)

Net cash provided by (used in) investing activities		(282	)		50			20			(212	)

Net cash used in financing activities		56			(780	)		(20	)		(744	)

Effect of exchange rate changes on cash and cash equivalents		9			—			—			9

Decrease in cash and cash equivalents		297			(26	)		—			271
Increase in cash and cash equivalents upon consolidation of BDP and BDT		80			—			—			80

Cash and cash equivalents at beginning of the period		775			86			—			861

Cash and cash equivalents at end of the period	$	1,152		$	60		$	—		$	1,212

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	For the Year ended October 31, 2008
	Manufacturing Operations			Financial Services Operations			Adjustments			Condensed Consolidated Statement of Cash Flows
(in millions)
Cash flows from operating activities
Net income	$	134		$	(24	)	$	24		$	134
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Depreciation and amortization		333			11			—			344
Depreciation of equipment leased to others		44			20			—			64
Deferred income taxes		82			(26	)		—			56
Impairment of goodwill and intangibles		372			—			—			372
Equity in income of financial services affiliates		24			—			(24	)		—
Equity in income of non-consolidated affiliates		(71	)		—			—			(71	)
Dividends from financial services operations		25			—			(25	)		—
Dividends from non-consolidated affiliates		85			—			—			85
Other, net		(599	)		735			—			136

Net cash provided by operating activities		429			716			(25	)		1,120

Cash flows from investing activities
Purchases of marketable securities		(42	)		—			—			(42	)
Sales or maturities of marketable securities		46			—			—			46
Net change in restricted cash and cash equivalents		7			(150	)		—			(143	)
Capital expenditures		(168	)		(8	)		—			(176	)
Purchase of equipment leased to others		—			(39	)		—			(39	)
Contributions to NFC		(60	)		—			60			—
Business acquisitions, net of escrow receipt		—			—			—			—
Other investing activities		1			20			—			21

Net cash provided by (used in) investing activities		(216	)		(177	)		60			(333	)

Net cash used in financing activities		(133	)		(508	)		(35	)		(676	)

Effect of exchange rate changes on cash and cash equivalents		(21	)		(6	)		—			(27	)

Decrease in cash and cash equivalents		59			25			—			84
Cash and cash equivalents at beginning of the period		716			61			—			777

Cash and cash equivalents at end of the period	$	775		$	86		$	—		$	861

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	For the Year ended October 31, 2007
	Manufacturing Operations			Financial Services Operations			Adjustments			Condensed Consolidated Statement of Cash Flows
(in millions)
Cash flows from operating activities
Net income	$	(120	)	$	127		$	(127	)	$	(120	)
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Depreciation and amortization		312			5			—			317
Depreciation of equipment leased to others		40			23			—			63
Deferred income taxes		39			(40	)		—			(1	)
Impairment of goodwill and intangibles		—			—			—			—
Equity in income of financial services affiliates		(127	)		—			127			—
Equity in income of non-consolidated affiliates		(74	)		—			—			(74	)
Dividends from financial services operations		400			—			(400	)		—
Dividends from non-consolidated affiliates		111			—			—			111
Other, net		(412	)		378			—			(34	)

Net cash provided by operating activities		169			493			(400	)		262

Cash flows from investing activities
Purchases of marketable securities		(221	)		—			—			(221	)
Sales or maturities of marketable securities		351			—			—			351
Net change in restricted cash and cash equivalents		24			257			—			281
Capital expenditures		(309	)		(3	)		—			(312	)
Purchase of equipment leased to others		—			(37	)		—			(37	)
Business acquisitions, net of escrow receipt		(7	)		—			—			(7	)
Contributions to NFC		—			—			—			—
Other investing activities		92			10			—			102

Net cash provided by (used in) investing activities		(70	)		227			—			157

Net cash used in financing activities		(480	)		(726	)		400			(806	)

Effect of exchange rate changes on cash and cash equivalents		19			(12	)		—			7

Decrease in cash and cash equivalents		(362	)		(18	)		—			(380	)
Cash and cash equivalents at beginning of the period		1,078			79			—			1,157

Cash and cash equivalents at end of the period	$	716		$	61		$	—		$	777

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