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 and as such, includes certain non-GAAP financial measures.
Condensed Statements of Revenues and Expenses
for the years ended October 31
for the years ended October 31
| Navistar International Corporation | ||||||||||||
| (with financial services operations on a pre-tax equity basis) | ||||||||||||
| (in millions) | 2005 | 2004 | 2003 | |||||||||
| (Restated) | (Restated) | |||||||||||
Sales of manufactured products, net | $ | 11,827 | $ | 9,384 | $ | 7,368 | ||||||
| Cost of products sold (exclusive of engineering and product development costs shown below) | 10,250 | 8,268 | 6,670 | |||||||||
| Selling, general and administrative expense | 974 | 839 | 790 | |||||||||
| Engineering and product development costs | 413 | 287 | 270 | |||||||||
| Restructuring and program termination (credits) charges | (2 | ) | 8 | 15 | ||||||||
| Other expense, net | 182 | 148 | 26 | |||||||||
Total costs and expenses | 11,817 | 9,550 | 7,771 | |||||||||
| Income (loss) before income taxes | ||||||||||||
| Manufacturing operations | 10 | (166 | ) | (403 | ) | |||||||
| Financial services operations | 135 | 131 | 87 | |||||||||
| Income (loss) before income taxes | 145 | (35 | ) | (316 | ) | |||||||
| Income tax expense | (6 | ) | (9 | ) | (17 | ) | ||||||
Net income (loss) | $ | 139 | $ | (44 | ) | $ | (333 | ) | ||||
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EXHIBIT 99.1 (Continued)
Condensed Statements of Assets, Liabilities and
Stockholders’ Equity
as of October 31
Stockholders’ Equity
as of October 31
| Navistar International Corporation | ||||||||
| (with financial services operations on an | ||||||||
| equity basis) | ||||||||
| (in millions) | 2005 | 2004 | ||||||
| (Restated) | ||||||||
| Cash, cash equivalents and marketable securities | $ | 867 | $ | 729 | ||||
| Inventories | 1,320 | 1,133 | ||||||
| Investments in and advances to non-consolidated affiliates | 770 | 667 | ||||||
| Property and equipment, net | 1,967 | 1,779 | ||||||
| Goodwill and intangible assets, net | 601 | 76 | ||||||
| Other assets | 923 | 793 | ||||||
| Deferred taxes, net | 86 | 48 | ||||||
Total assets | $ | 6,534 | $ | 5,225 | ||||
| Accounts payable | $ | 2,023 | $ | 1,682 | ||||
| Postretirement benefits liabilities | 1,810 | 1,700 | ||||||
| Debt — manufacturing operations | 2,124 | 1,748 | ||||||
| Other liabilities | 2,276 | 1,947 | ||||||
| Stockholders’ deficit | (1,699 | ) | (1,852 | ) | ||||
Total liabilities and stockholders’ deficit | $ | 6,534 | $ | 5,225 | ||||
E-59
EXHIBIT 99.1 (Continued)
Condensed Statements of Cash Activities
for the years ended October 31
for the years ended October 31
| Navistar International Corporation | ||||||||||||
| (with financial services operations on an equity basis) | ||||||||||||
| (in millions) | 2005 | 2004 | 2003 | |||||||||
| (Restated) | (Restated) | |||||||||||
Cash flow from operating activities: | ||||||||||||
| Net income (loss) | $ | 139 | $ | (44 | ) | $ | (333 | ) | ||||
| Adjustments to reconcile net income (loss) to cash used in operating activities: | ||||||||||||
| Depreciation and amortization | 294 | 256 | 239 | |||||||||
| Deferred taxes | (67 | ) | (38 | ) | (15 | ) | ||||||
| Equity in income of non-consolidated affiliates | (225 | ) | (167 | ) | (140 | ) | ||||||
| Dividends from non-consolidated affiliates | 83 | 46 | 87 | |||||||||
| Other, net | 507 | 486 | 306 | |||||||||
Net cash provided by operating activities | 731 | 539 | 144 | |||||||||
Cash flow from investing activities: | ||||||||||||
| Purchases of marketable securities | (828 | ) | (416 | ) | (407 | ) | ||||||
| Sales or maturities of marketable securities | 918 | 312 | 329 | |||||||||
| Net change in restricted cash and cash equivalents | (5 | ) | (3 | ) | (23 | ) | ||||||
| Capital expenditures | (353 | ) | (327 | ) | (339 | ) | ||||||
| Acquisitions, net of cash acquired | (563 | ) | (24 | ) | (6 | ) | ||||||
| Other investment activities | 21 | 8 | 44 | |||||||||
Net cash used in investing activities | (810 | ) | (450 | ) | (402 | ) | ||||||
Net cash provided by financing activities | 272 | 46 | 92 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 36 | 1 | 5 | |||||||||
Increase (decrease) in cash and cash equivalents | 229 | 136 | (161 | ) | ||||||||
Cash and cash equivalents at beginning of the year | 547 | 411 | 572 | |||||||||
Cash and cash equivalents at end of the year | $ | 776 | $ | 547 | $ | 411 | ||||||
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