Navistar Reports Third Quarter 2017 Results
LISLE, Ill., Sept. 6, 2017 /PRNewswire/ -- Navistar International Corporation (NYSE: NAV) today announced a third quarter 2017 net income of $37 million, or $0.38 per diluted share, compared to a third quarter 2016 net loss of $34 million, or $0.42 per diluted share.
Third quarter 2017 EBITDA was $160 million, versus EBITDA of $96 million in the same period one year earlier. The third quarter of 2017 included $34 million in adjustments, including a $31 million charge for a legacy engine litigation matter, $6 million of pre-existing warranty charges, and $3 million net benefit in asset impairments and restructuring costs. Excluding these items, adjusted EBITDA was $194 million in the third quarter of 2017, compared to $132 million in the same period one year ago.
Revenues in the quarter were $2.2 billion, up 6% from the same period one year ago, primarily due to an increase in Truck segment volumes.
"We returned to profitability this quarter thanks to strong operational performance across the board, highlighted by a 15-percent increase in chargeouts and solid market share gains amid flat industry conditions, and strengthening margins," said Troy A. Clarke, Navistar chairman, president and chief executive officer. "We also moved ahead with new products and solutions that position us well for ongoing growth, while continuing to restructure our business to improve our future competitiveness."
Navistar ended third quarter 2017 with $973 million in consolidated cash, cash equivalents and marketable securities. Manufacturing cash, cash equivalents and marketable securities were $923 million at the end of the quarter.
The company had a number of commercial and product highlights during its third quarter, starting with the first customer shipments of the LT Series and RH Series on-highway products with the company's new A26 12.4-liter engine. Internal testing shows that with this new engine, these vehicles are delivering up to 9 percent in fuel economy improvement over the comparable models built only a year ago.
In the school bus segment, the company moved forward with multiple improvements and innovations that set up future share gains. These include the company's well-received propane model and introduction of the Cummins L9 product in the RE Series bus. IC Bus's gasoline-powered school bus is coming in 2018. The company also announced a strategic relationship with Edulog, a leading provider of student transportation planning and scheduling software solutions. Through integration with our OnCommand Connection telematics system, the resulting new solutions will deliver a powerful combination of uptime and on-time to the school bus market.
During the quarter the company announced that OnCommand Connection (OCC) now provides an all-makes telematics offering. The telematics hardware attaches to the onboard diagnostics port and makes most truck models a part of the OCC services network. The company has shipped several thousand of these units and they can be purchased at International dealers, through HDA Truck Pride, or TA Petro service centers. This Telematics solution is integrated with the company's Advanced Remote Diagnostics and its new Electronic Driver Log, which addresses the federal Hours of Service mandate that takes effect this December.
The company's alliance with Volkswagen Truck & Bus is moving forward as planned. The two companies are finding significant opportunities to leverage their combined scale through their procurement joint venture, while also pursuing technology collaboration on a number of fronts.
The company reiterated its 2017 guidance:
-- Retail deliveries of Class 6-8 trucks and buses in the United States and
Canada are forecast to be in the range of 305,000 units to 335,000 units
for fiscal year 2017.
-- Full-year 2017 revenues are expected to be similar to 2016.
-- Full-year 2017 adjusted EBITDA is expected to be higher than 2016.
-- Fiscal year end 2017 manufacturing cash is expected to be about $1
billion.
"Looking ahead, I like our position as we enter the prime selling season," Clarke said. "I feel good about the fourth quarter and look forward to finishing the year on a strong note."
SEGMENT REVIEW
Summary of Financial Results:
(Unaudited)
Three Months Ended Nine Months Ended
July 31, July 31,
(in millions, except
per share data) 2017 2016 2017 2016
---- ---- ---- ----
Sales and revenues,
net $2,213 $2,086 $5,972 $6,048
Segment Results:
Truck $7 $(54) $(118) $(128)
Parts 157 152 459 478
Global Operations 3 (5) (8) (19)
Financial Services 23 26 51 77
Income (loss) from
continuing
operations, net of
tax(A) $36 (34) $(106) $(63)
Net income (loss)(A) 37 (34) (105) (63)
Diluted income (loss)
per share from
continuing
operations(A) $0.37 $(0.42) $(1.16) $(0.77)
Diluted income (loss)
per share(A) $0.38 $(0.42) $(1.15) $(0.77)
(A) Amounts attributable to Navistar
International Corporation.
Truck Segment -- Truck segment net sales increased 10% to $1.5 billion compared to third quarter 2016, due to higher volumes in Core markets (Class 6-8 trucks and buses in the United States and Canada), an increase in Mexico truck volumes, and the production ramp up of GM-branded units manufactured at Navistar's Springfield, Ohio plant. Chargeouts in the company's Core markets increased by 15% during the third quarter.
In the third quarter of 2017, Truck segment results improved by $61 million year-over-year. The improvement was primarily driven by the impact of higher volumes in Core markets and Mexico, lower used truck losses, and lower restructuring charges, partially offset by lower other income.
Parts Segment -- Parts segment net sales declined $11 million compared to third quarter 2016 due to lower Blue Diamond Parts (BDP) sales and lower North America volumes, partially offset by higher Fleetrite(TM) all-makes brand and ReNEWed(TM) remanufactured parts sales in the U.S. and Canada.
For the third quarter 2017, the Parts segment recorded a profit of $157 million, up 3% compared to third quarter 2016, primarily due to income related to the sale of a business line and lower intercompany access fees, which were partially offset by margin declines in BDP and our U.S. market.
Global Operations Segment -- Global Operations net sales were flat compared to the prior year.
For the third quarter 2017, the Global Operations segment profit improved by $8 million, primarily due to lower manufacturing and SG&A costs, as a result of our prior year restructuring and cost reduction efforts, and income related to the sale of machinery and equipment.
Financial Services Segment -- Financial Services net revenues increased by $2 million to $62 million compared to third quarter 2016, primarily due to higher interest rates in our Mexican portfolio.
For the third quarter 2017, the Financial Services segment recorded a profit of $23 million, down $3 million compared to third quarter 2016. The decline was primarily driven by a lower interest margin resulting from an increase in its average borrowing rate as well as the pay down of certain intercompany loan receivables, partially offset by a decrease in the provision for loan losses in Mexico.
About Navistar
Navistar International Corporation (NYSE: NAV) is a holding company whose subsidiaries and affiliates produce International brand commercial and military trucks, proprietary diesel engines, and IC Bus brand school and commercial buses. An affiliate also provides truck and diesel engine service parts. Another affiliate offers financing services. Additional information is available at www.Navistar.com.
Forward-Looking Statement
Information provided and statements contained in this report that are not purely historical are forward-looking statements within the meaning of the federal securities laws. Such forward-looking statements only speak as of the date of this report and the company assumes no obligation to update the information included in this report. Such forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business strategy. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," or similar expressions. These statements are not guarantees of performance or results and they involve risks, uncertainties, and assumptions. For a further description of these factors, see the risk factors set forth in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the fiscal year ended October 31, 2016. Although we believe that these forward-looking statements are based on reasonable assumptions, there are many factors that could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. All future written and oral forward-looking statements by us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. Except for our ongoing obligations to disclose material information as required by the federal securities laws, we do not have any obligations or intention to release publicly any revisions to any forward-looking statements to reflect events or circumstances in the future or to reflect the occurrence of unanticipated events.
Navistar International Corporation and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Three Months Ended Nine Months Ended
July 31, July 31,
(in millions, except per share data) 2017 2016 2017 2016
---- ---- ---- ----
Sales and revenues
Sales of manufactured products, net $2,178 $2,052 $5,870 $5,946
Finance revenues 35 34 102 102
Sales and revenues, net 2,213 2,086 5,972 6,048
----- ----- ----- -----
Costs and expenses
Costs of products sold 1,803 1,757 4,949 5,068
Restructuring charges (13) 5 (4) 11
Asset impairment charges 6 12 13 17
Selling, general and administrative
expenses 233 197 654 604
Engineering and product development
costs 61 62 189 181
Interest expense 91 84 262 246
Other income, net (8) (15) (7) (62)
Total costs and expenses 2,173 2,102 6,056 6,065
Equity in income of non-
consolidated affiliates 1 2 6 3
--- --- --- ---
Income (loss) from continuing
operations before income taxes 41 (14) (78) (14)
Income tax expense - (14) (10) (25)
--- --- --- ---
Income (loss) from continuing
operations 41 (28) (88) (39)
Income from discontinued operations,
net of tax 1 - 1 -
--- --- --- ---
Net income (loss) 42 (28) (87) (39)
Less: Net income attributable to
non-controlling interests 5 6 18 24
--- --- --- ---
Net income (loss) attributable to
Navistar International Corporation $37 $(34) $(105) $(63)
=== ==== ===== ====
Amounts attributable to Navistar International Corporation common shareholders:
Income (loss) from continuing
operations, net of tax $36 $(34) $(106) $(63)
Income from discontinued operations,
net of tax 1 - 1 -
Net income (loss) $37 $(34) $(105) $(63)
=== ==== ===== ====
Income (loss) per share:
Basic:
Continuing operations $0.37 $(0.42) $(1.16) $(0.77)
Discontinued operations 0.01 - 0.01 -
$0.38 $(0.42) $(1.15) $(0.77)
===== ====== ====== ======
Diluted:
Continuing operations $0.37 $(0.42) $(1.16) $(0.77)
Discontinued operations 0.01 - 0.01 -
$0.38 $(0.42) $(1.15) $(0.77)
===== ====== ====== ======
Weighted average shares outstanding:
Basic 98.3 81.7 91.1 81.7
Diluted 98.6 81.7 91.1 81.7
Navistar International Corporation and Subsidiaries
Consolidated Balance Sheets
July 31, October 31,
(in millions, except per share data) 2017 2016
---- ----
ASSETS (Unaudited)
Current assets
Cash and cash equivalents $911 $804
Restricted cash and cash equivalents 81 64
Marketable securities 62 46
Trade and other receivables, net 311 276
Finance receivables, net 1,557 1,457
Inventories, net 979 944
Other current assets 181 168
--- ---
Total current assets 4,082 3,759
Restricted cash 56 48
Trade and other receivables, net 18 16
Finance receivables, net 231 220
Investments in non-consolidated affiliates 55 53
Property and equipment (net of accumulated
depreciation and amortization of $2,500 and
$2,553, respectively) 1,333 1,241
Goodwill 38 38
Intangible assets (net of accumulated
amortization of $133 and $124, respectively) 44 53
Deferred taxes, net 141 161
Other noncurrent assets 82 64
--- ---
Total assets $6,080 $5,653
====== ======
LIABILITIES and STOCKHOLDERS' DEFICIT
Liabilities
Current liabilities
Notes payable and current maturities of long-
term debt $965 $907
Accounts payable 1,213 1,113
Other current liabilities 1,137 1,183
----- -----
Total current liabilities 3,315 3,203
Long-term debt 4,255 3,997
Postretirement benefits liabilities 2,747 3,023
Other noncurrent liabilities 686 723
--- ---
Total liabilities 11,003 10,946
Stockholders' deficit
Series D convertible junior preference stock 2 2
Common stock (103.1 and 86.8 shares issued,
respectively, and $0.10 par value per share and
220 shares authorized at both dates) 10 9
Additional paid-in capital 2,733 2,499
Accumulated deficit (5,068) (4,963)
Accumulated other comprehensive loss (2,412) (2,640)
Common stock held in treasury, at cost (4.9 and
5.2 shares, respectively) (190) (205)
---- ----
Total stockholders' deficit attributable to
Navistar International Corporation (4,925) (5,298)
Stockholders' equity attributable to non-
controlling interests 2 5
--- ---
Total stockholders' deficit (4,923) (5,293)
------ ------
Total liabilities and stockholders' deficit $6,080 $5,653
====== ======
Navistar International Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended
July 31,
(in millions) 2017 2016
---- ----
Cash flows from operating activities
Net loss $(87) $(39)
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciation and amortization 113 111
Depreciation of equipment leased to
others 56 53
Deferred taxes, including change in
valuation allowance (16) -
Asset impairment charges 13 17
Loss (gain) on sales of investments and
businesses, net (5) 2
Amortization of debt issuance costs and
discount 36 27
Stock-based compensation 19 9
Provision for doubtful accounts, net of
recoveries 9 9
Equity in income of non-consolidated
affiliates, net of dividends 1 5
Write-off of debt issuance cost and
discount 4 -
Other non-cash operating activities (21) (12)
Changes in other assets and liabilities,
exclusive of the effects of businesses
disposed (290) (196)
Net cash used in operating activities (168) (14)
---- ---
Cash flows from investing activities
Purchases of marketable securities (619) (378)
Sales of marketable securities 586 358
Maturities of marketable securities 17 39
Net change in restricted cash and cash
equivalents (25) (64)
Capital expenditures (93) (83)
Purchases of equipment leased to others (96) (94)
Proceeds from sales of property and
equipment 32 20
Investments in non-consolidated
affiliates (2) (1)
Proceeds from sales of affiliates 6 36
Net cash used in investing activities (194) (167)
---- ----
Cash flows from financing activities
Proceeds from issuance of securitized
debt 278 72
Principal payments on securitized debt (326) (69)
Net change in secured revolving credit
facilities 119 26
Proceeds from issuance of non-
securitized debt 491 163
Principal payments on non-securitized
debt (368) (235)
Net change in notes and debt outstanding
under revolving credit facilities 23 (151)
Principal payments under financing
arrangements and capital lease
obligations (1) (1)
Debt issuance costs (22) (12)
Proceeds from financed lease obligations 49 17
Issuance of common stock 256 -
Stock issuance costs (11) -
Proceeds from exercise of stock options 4 -
Dividends paid by subsidiaries to non-
controlling interest (21) (28)
Other financing activities (3) 1
Net cash provided by (used in) financing
activities 468 (217)
--- ----
Effect of exchange rate changes on cash
and cash equivalents 1 33
--- ---
Increase (decrease) in cash and cash
equivalents 107 (365)
Cash and cash equivalents at beginning
of the period 804 912
--- ---
Cash and cash equivalents at end of the
period $911 $547
==== ====
Navistar International Corporation and Subsidiaries
Segment Reporting
(Unaudited)
We define segment profit (loss) as net income (loss) from continuing operations attributable to Navistar International Corporation, excluding income tax expense. The following tables present selected financial information for our reporting segments:
(in millions) Truck Parts Global Financial Corporate Total
Operations Services(A) and
Eliminations
Three Months Ended July 31, 2017
External sales and revenues,
net $1,521 $580 $74 $35 $3 $2,213
Intersegment sales and
revenues 10 6 10 27 (53) -
Total sales and revenues, net $1,531 $586 $84 $62 $(50) $2,213
====== ==== === === ==== ======
Income (loss) from continuing
operations attributable to
NIC, net of tax $7 $157 $3 $23 $(154) $36
Income tax expense - - - - - -
Segment profit (loss) $7 $157 $3 $23 $(154) $36
=== ==== === === ===== ===
Depreciation and amortization $35 $3 $3 $13 $3 $57
Interest expense - - - 24 67 91
Equity in income (loss) of
non-consolidated affiliates 1 1 (1) - - 1
Capital expenditures(B) 21 1 2 - 3 27
(in millions) Truck Parts Global Financial Corporate Total
Operations Services(A) and
Eliminations
Three Months Ended July 31,
2016
External sales and revenues,
net $1,386 $589 $73 $34 $4 $2,086
Intersegment sales and
revenues 9 8 12 26 (55) -
Total sales and revenues, net $1,395 $597 $85 $60 $(51) $2,086
====== ==== === === ==== ======
Income (loss) from continuing
operations attributable to
NIC, net of tax $(54) $152 $(5) $26 $(153) $(34)
Income tax expense - - - - (14) (14)
Segment profit (loss) $(54) $152 $(5) $26 $(139) $(20)
==== ==== === === ===== ====
Depreciation and amortization $29 $3 $4 $13 $4 $53
Interest expense - - - 21 63 84
Equity in income of non-
consolidated affiliates 1 1 - - - 2
Capital expenditures(B) 26 - - 1 3 30
(in millions) Truck Parts Global Financial Corporate Total
Operations Services(A) and
Eliminations
------------
Nine Months Ended July 31,
2017
External sales and revenues,
net $3,929 $1,747 $186 $102 $8 $5,972
Intersegment sales and
revenues 27 19 18 70 (134) -
Total sales and revenues, net $3,956 $1,766 $204 $172 $(126) $5,972
====== ====== ==== ==== ===== ======
Income (loss) from continuing
operations attributable to
NIC, net of tax $(118) $459 $(8) $51 $(490) $(106)
Income tax expense - - - - (10) (10)
Segment profit (loss) $(118) $459 $(8) $51 $(480) $(96)
===== ==== === === ===== ====
Depreciation and amortization $103 $9 $10 $38 $9 $169
Interest expense - - - 65 197 262
Equity in income of non-
consolidated affiliates 3 3 - - - 6
Capital expenditures(B) 78 2 5 1 7 93
(in millions) Truck Parts Global Financial Corporate Total
Operations Services(A) and
Eliminations
------------
Nine Months Ended July 31,
2016
External sales and revenues,
net $3,926 $1,791 $221 $102 $8 $6,048
Intersegment sales and
revenues 81 23 33 75 (212) -
Total sales and revenues, net $4,007 $1,814 $254 $177 $(204) $6,048
====== ====== ==== ==== ===== ======
Income (loss) from continuing
operations attributable to
NIC, net of tax $(128) $478 $(19) $77 $(471) $(63)
Income tax expense - - - - (25) (25)
Segment profit (loss) $(128) $478 $(19) $77 $(446) $(38)
===== ==== ==== === ===== ====
Depreciation and amortization $92 $10 $13 $37 $12 $164
Interest expense - - - 59 187 246
Equity in income (loss) of
non-consolidated affiliates 3 3 (3) - - 3
Capital expenditures(B) 70 2 2 1 8 83
(in millions) Truck Parts Global
Operations Financial Corporate Total
Services and
Eliminations
------------
Segment assets,
as of:
July 31, 2017 $1,736 $602 $374 $2,237 $1,131 $6,080
October 31, 2016 1,520 594 407 2,116 1,016 5,653
(A) Total sales
and
revenues in
the
Financial
Services
segment
include
interest
revenues of
$45 million
and $121
million for
the three
and nine
months
ended July
31, 2017,
respectively,
and $43
million and
$127
million for
the three
and nine
months
ended July
31, 2016,
respectively.
Exclusive of
purchases
of
equipment
leased to
(B) others.
SEC Regulation G Non-GAAP Reconciliation
The financial measures presented below are unaudited and not in accordance with, or an alternative for, financial measures presented in accordance with U.S. generally accepted accounting principles ("GAAP"). The non-GAAP financial information presented herein should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP and are reconciled to the most appropriate GAAP number below.
Earnings (loss) Before Interest, Income Taxes, Depreciation, and Amortization ("EBITDA"):
We define EBITDA as our consolidated net income (loss) from continuing operations attributable to Navistar International Corporation, net of tax, plus manufacturing interest expense, income taxes, and depreciation and amortization. We believe EBITDA provides meaningful information relating to the performance of our business and therefore we use it to supplement our GAAP reporting. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results.
Adjusted EBITDA:
We believe that adjusted EBITDA, which excludes certain identified items that we do not consider to be part of our ongoing business, improves the comparability of year to year results, and is representative of our underlying performance. Management uses this information to assess and measure the performance of our operating segments. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non-GAAP adjustments shown in the below reconciliations, and to provide an additional measure of performance.
Manufacturing Cash, Cash Equivalents, and Marketable Securities:
Manufacturing cash, cash equivalents, and marketable securities represents the Company's consolidated cash, cash equivalents, and marketable securities excluding cash, cash equivalents, and marketable securities of our financial services operations. We include marketable securities with our cash and cash equivalents when assessing our liquidity position as our investments are highly liquid in nature. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them to perform additional analyses of our ability to meet our operating requirements, capital expenditures, equity investments, and financial obligations.
Structural costs consist of Selling, general and administrative expenses and Engineering and product development costs.
EBITDA reconciliation:
Three Months Nine Months
Ended July 31, Ended July 31,
(in millions) 2017 2016 2017 2016
---- ---- ---- ----
Income (loss) from
continuing operations
attributable to NIC, net of
tax $36 $(34) $(106) $(63)
Plus:
Depreciation and
amortization expense 57 53 169 164
Manufacturing interest
expense(A) 67 63 197 187
Less:
Income tax expense - (14) (10) (25)
--- --- --- ---
EBITDA $160 $96 $270 $313
==== === ==== ====
(A) Manufacturing
interest
expense is
the net
interest
expense
primarily
generated for
borrowings
that support
the
manufacturing
and corporate
operations,
adjusted to
eliminate
intercompany
interest
expense with
our Financial
Services
segment. The
following
table
reconciles
Manufacturing
interest
expense to
the
consolidated
interest
expense:
Three Months Nine Months
Ended July 31, Ended July 31,
(in millions) 2017 2016 2017 2016
---- ---- ---- ----
Interest
expense $91 $84 $262 $246
Less:
Financial
services
interest
expense 24 21 65 59
Manufacturing
interest
expense $67 $63 $197 $187
=== === ==== ====
Adjusted EBITDA Reconciliation:
Three Months Nine Months
Ended July 31, Ended July 31,
(in
millions) 2017 2016 2017 2016
---- ---- ---- ----
EBITDA
(reconciled
above) $160 $96 $270 $313
---- --- ---- ----
Less
significant
items of:
Adjustments
to pre-
existing
warranties(A) 6 19 (4) 70
Asset
impairment
charges(B) 6 12 13 17
Restructuring
of North
American
manufacturing
operations(C) (3) - 6 -
Cost
reduction
and other
strategic
initiatives - 5 - 11
EGR product
litigation(D) 31 - 31 -
Gain on
sale(E) (6) - (6) -
Debt
refinancing
charges(F) - - 4 -
One-time
fee(G) - - - (15)
--- --- --- ---
Total
adjustments 34 36 44 83
---
Adjusted
EBITDA $194 $132 $314 $396
==== ==== ==== ====
(A) Adjustments to
pre-existing
warranties
reflect
changes in our
estimate of
warranty costs
for products
sold in prior
periods. Such
adjustments
typically
occur when
claims
experience
deviates from
historic and
expected
trends. Our
warranty
liability is
generally
affected by
component
failure rates,
repair costs,
and the timing
of failures.
Future events
and
circumstances
related to
these factors
could
materially
change our
estimates and
require
adjustments to
our liability.
In addition,
new product
launches
require a
greater use of
judgment in
developing
estimates
until
historical
experience
becomes
available.
(B) In the third
quarter and
first nine
months of
2017, we
recorded $6
million and
$13 million,
respectively,
of asset
impairment
charges in our
Truck segment
relating to
assets held
for the sale
of our Conway,
Arkansas
fabrication
business and
for certain
assets under
operating
leases. In the
third quarter
and first nine
months of
2016, we
recorded $11
million and
$16 million,
respectively,
of asset
impairment
charges
related to
certain long
lived assets
in our Truck
segment. In
the third
quarter of
2016, we
recorded $1
million of
asset
impairment
charges
related to
certain
intangible
assets in our
Global
operations
segment.
(C) In the third
quarter and
first nine
months of
2017, we
recorded a
benefit of $3
million and
charges of $6
million for
restructuring
in our Truck
segment. In
the third
quarter of
2017, we
recorded $41
million of
charges
related to the
cessation of
production at
our Melrose
Park Facility
and a net
benefit of $43
million
related to the
execution of
the closing
agreement for
our Chatham,
Ontario plant
which were
recognized in
Restructuring
Charges and
Costs of
Products Sold.
The first nine
months of 2017
were also
impacted by $7
million of
restructuring
charges
related to the
closure of the
Chatham,
Ontario plant
and $2 million
of Corporate
restructuring
charges.
(D) In the third
quarter of
2017, we
recognized a
charge of $31
million for a
jury verdict
related to
Maxxforce
engine EGR
litigation in
our Truck
segment.
(E) In the third
quarter of
2017, we
recognized a
gain of $6
million
related to the
sale of a
business line
in our Parts
segment.
(F) In the second
quarter of
2017, we
recorded a
charge of $4
million
related to
third party
fees and debt
issuance costs
associated
with the
repricing of
our Term Loan.
(G) In the first
quarter of
2016, we
received a $15
million one-
time fee from
a third party
which was
recognized in
Other income,
net.
Manufacturing segment cash, cash equivalents, and marketable securities reconciliation:
As of July 31, 2017
(in millions) Manufacturing Financial Consolidated
Operations Services Balance Sheet
Operations
----------
Assets
Cash and cash
equivalents $868 $43 $911
Marketable securities 55 7 62
--- --- ---
Total cash, cash
equivalents, and
marketable securities $923 $50 $973
==== === ====
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SOURCE Navistar International Corporation
