Table of Contents

|        |
|--------|
|        |  |  |  |  |
|   |   |   |   |   |

|        |
|--------|
|        |  |
| þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

|   |
|---|
|   |  |
| o | TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

|                                                                                                                                                 |
|-------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                 |  |  |
| Delaware                                                                                                                                        |   | 36-3359573 |
| (State or other jurisdiction of incorporation or organization)                                                                                  |   | (I.R.S. Employer Identification No.) |
|                                                                                                                                            |   |   |
| 2701 Navistar Drive,                                                                                                            Lisle, Illinois |   | 60532 |
| (Address of principal executive offices)                                                                                                        |   | (Zip Code) |

|                                                                                 |
|---------------------------------------------------------------------------------|
|                                                                                 |  |  |
| Title of each class                                                        |   | Name of each exchange on which registered |
| Common stock (par value $0.10)                                                  |   | New York Stock Exchange |
| Cumulative convertible junior preference stock, Series D (par value $1.00) |   | New York Stock Exchange |
| Preferred stock purchase rights                                                 |   | New York Stock Exchange |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |
| Large accelerated filer             |   | þ |    | Accelerated filer |   | o |
| Non-accelerated filer                         |   | o |    | Smaller reporting company |   | o |
| (Do not check if a smaller reporting company) |    |   |   |   |

|        |
|--------|
|        |  |  |  |  |
|   |   |   |   |   |

----

Table of Contents

|                |
|----------------|
|                |  |  |  |  |
|           |   |   | Page |
| PART I         |   |   |
| Item 1.   | Business |   | 4 |  |
| Item 1A.       | Risk Factors |   | 12 |  |
| Item 1B.       | Unresolved Staff Comments |   | 20 |  |
| Item 2.        | Properties |   | 20 |  |
| Item 3.        | Legal Proceedings |   | 21 |  |
| Item 4.        | Mine Safety Disclosures |   | 23 |  |
|           |   |   |   |
| PART II   |   |   |
| Item 5.   | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |   | 24 |  |
| Item 6.   | Selected Financial Data |   | 26 |  |
| Item 7.   | Management's Discussion and Analysis of Financial Condition and Results of Operations |   | 27 |  |
| Item 7A.       | Quantitative and Qualitative Disclosures about Market Risk |   | 58 |  |
| Item 8.        | Financial Statements and Supplementary Data |   | 59 |  |
| Item 9.   | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |   | 132 |  |
| Item 9A.  | Controls and Procedures |   | 132 |  |
| Item 9B.       | Other Information |   | 132 |  |
|           |   |   |   |
| PART III  |   |   |
| Item 10.       | Directors, Executive Officers, and Corporate Governance |   | 133 |  |
| Item 11.       | Executive Compensation |   | 133 |  |
| Item 12.       | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |   | 133 |  |
| Item 13.       | Certain Relationships and Related Transactions, and Director Independence |   | 133 |  |
| Item 14.       | Principal Accountant Fees and Services |   | 133 |  |
|           |   |   |   |
| PART IV   |   |   |
| Item 15.       | Exhibits and Financial Statement Schedules |   | 134 |  |
|           | Signatures |   | 135 |  |
|           |   |   |   |
| EXHIBIT INDEX: |   |   |
|           | Exhibit 3 |   |   |
|           | Exhibit 4 |   |   |
|           | Exhibit 10 |   |   |
|           | Exhibit 12 |   |   |
|           | Exhibit 21 |   |   |
|           | Exhibit 23.1 |   |   |
|           | Exhibit 24 |   |   |
|           | Exhibit 31.1 |   |   |
|           | Exhibit 31.2 |   |   |
|           | Exhibit 32.1 |   |   |
|           | Exhibit 32.2 |   |   |
|           | Exhibit 99.1 |   |   |

----

Table of Contents

|         |                                                               |
|---------|---------------------------------------------------------------|
| • | estimates we have made in preparing our financial statements; |

|         |                                                   |
|---------|---------------------------------------------------|
| • | our development of new products and technologies; |

|         |                                                                      |
|---------|----------------------------------------------------------------------|
| • | the anticipated sales, volume, demand, and markets for our products; |

|         |                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------|
| • | the anticipated performance and benefits of our products and technologies, including our advanced clean engine solutions; |

|         |                                                                                                                                                                                                                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | our business strategies relating to, and our ability to meet, federal and state regulatory heavy-duty diesel emissions standards applicable to certain of our engines, including the timing and costs of compliance and consequences of noncompliance with such standards, as well as our ability to meet other federal, state and foreign regulatory requirements; |

|         |                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------|
| • | our business strategies and long-term goals, and activities to accomplish such strategies and goals; |

|         |                                                                                              |
|---------|----------------------------------------------------------------------------------------------|
| • | anticipated benefits from acquisitions, strategic alliances, and joint ventures we complete; |

|         |                                                                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------|
| • | our expectations relating to the dissolution of our Blue Diamond Truck joint venture with Ford Motor Company ("Ford") expected in December 2014; |

|         |                                                                                                                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | our expectations and estimates relating to restructuring activities, including restructuring and integration charges and timing of cash payments related thereto, and operational flexibility, savings, and efficiencies from such restructurings; |

|         |                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------|
| • | our expectations relating to the possible effects of anticipated divestitures and closures of businesses; |

|         |                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | our expectations relating to our cost-reduction actions, including our voluntary separation program, involuntary reduction in force, and other actions to reduce discretionary spending; |

|         |                                                                         |
|---------|-------------------------------------------------------------------------|
| • | our expectations relating to our ability to service our long-term debt; |

|         |                                                                                          |
|---------|------------------------------------------------------------------------------------------|
| • | our expectations relating to our retail finance receivables and retail finance revenues; |

|         |                                                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | our anticipated costs relating to the development of our emissions solutions products and other product modifications that may be required to meet other federal, state, and foreign regulatory requirements; |

|         |                                       |
|---------|---------------------------------------|
| • | our anticipated capital expenditures; |

|         |                                                 |
|---------|-------------------------------------------------|
| • | our expectations relating to payments of taxes; |

|         |                                              |
|---------|----------------------------------------------|
| • | our expectations relating to warranty costs; |

|         |                                                |
|---------|------------------------------------------------|
| • | our expectations relating to interest expense; |

|         |                                                   |
|---------|---------------------------------------------------|
| • | costs relating to litigation and similar matters; |

|         |                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------|
| • | estimates relating to pension plan contributions and unfunded pension and postretirement benefits; |

|         |                                          |
|---------|------------------------------------------|
| • | trends relating to commodity prices; and |

|         |                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------|
| • | anticipated trends, expectations, and outlook relating to matters affecting our financial condition or results of operations. |

----

Table of Contents

|              |          |
|--------------|----------|
| Item 1. | Business |

----

Table of Contents

|         |                                                                                                                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In July 2012, we announced our next-generation clean engine solution to meet 2010 EPA emissions standards. Our engine strategy combines our EGR engines with an after-treatment solution utilizing SCR. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In October 2012, we signed a definitive agreement with Cummins Inc. ("Cummins") for Cummins to supply its urea-based after-treatment system to us. This after-treatment system will be combined with our engines to meet 2010 EPA emissions standards and we expect it to help facilitate our satisfaction of future greenhouse gas ("GHG") standards such as those applicable to medium and heavy-duty engines and vehicles being phased in for model years 2014 to 2017. In addition to our agreement with Cummins, we continue to refine plans and timelines to begin introducing our new product offering, taking into consideration a number of factors, including: current and projected balances of emissions credits currently used to meet EPA emissions standards; our ability to utilize non-conformance penalties ("NCPs") to achieve compliance; projected sales volumes; and customer needs. We maintain our target of a phased-in product introduction plan commencing with the MaxxForce 13L engine in April 2013, followed by our medium engine offerings. |

|         |                                                                                                                                                                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | As part of our expanded relationship with Cummins, we are offering the Cummins ISX15 engine (the "Cummins 15L"), which currently meets EPA emissions standards, in certain models. We began offering the Cummins 15L engine as a part of our North American on-highway truck line-up in December 2012. |

----

Table of Contents

----

Table of Contents

----

Table of Contents

|         |                                                                                                                                                                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In 2006 and 2008, we completed two joint ventures with Mahindra in India. We have a 49% ownership in each joint venture, which operate under the names of MNAL and MNEPL, respectively. The Company is in discussions with Mahindra regarding the potential purchase by Mahindra of our interests in MNAL and MNEPL. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In August 2012, the Company and JAC received formal approval from the Chinese government to move forward with their commercial engine joint venture. The joint venture will focus on meeting the emerging needs of the Chinese commercial truck market by providing JAC with access to Navistar's Euro IV and Euro V compliant technology. The joint venture also sets the stage for global export opportunities of JAC's light-, medium- and heavy-duty commercial trucks. The joint venture is subject to finalization of certain ancillary agreements among the parties. |

|         |                                                                                                                                                                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | During 2012, the Company also initiated certain strategic initiatives, including an agreement with Indiana Phoenix to sell front-discharge concrete mixers through our Continental Mixer subsidiary, and the acquisition of certain assets from E-Z Pack related to the manufacture of refuse truck bodies. |

|                   |
|-------------------|
|                   |  |  |  |  |  |  |
|              | Units |   | Value |
| As of October 31: |   |   | (in billions) |
| 2012              | 25,000 |  |   | $ | 1.8 |  |
| 2011              | 32,000 |  |   | 2.4 |  |

----

Table of Contents

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |
|                              | As of October 31,   |
|                              | 2012 |   | 2011 |   | 2010 |
| Employees worldwide:              |   |   |   |   |   |
| Total active employees            | 16,900 |  |   | 19,000 |  |   | 15,800 |  |
| Total inactive employees(A)  | 1,600 |  |   | 1,800 |  |   | 2,900 |  |
| Total employees worldwide         | 18,500 |  |   | 20,800 |  |   | 18,700 |  |
| Total active union employees:     |   |   |   |   |   |
| Total UAW                         | 1,700 |  |   | 2,000 |  |   | 1,700 |  |
| Total other unions                | 2,500 |  |   | 3,900 |  |   | 2,400 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Employees are considered inactive in certain situations including disability leave, leave of absence, layoffs, and work stoppages. Included within inactive employees are approximately 600 employees, 1,000 employees, and 1,100 employees as of October 31, 2012, 2011, and 2010, respectively, represented by the National Automobile, Aerospace and Agricultural Implement Workers of Canada ("CAW") at our Chatham, Ontario heavy truck plant related to the expiration of the CAW contract on June 30, 2009. In 2011, the Company committed to close this facility due to an inability to reach a collective bargaining agreement with the CAW. |

----

Table of Contents

----

Table of Contents

----

Table of Contents

|               |              |
|---------------|--------------|
| Item 1A. | Risk Factors |

----

Table of Contents

----

Table of Contents

|         |                                                                                   |
|---------|-----------------------------------------------------------------------------------|
| • | increasing our vulnerability to general adverse economic and industry conditions; |

|         |                                                                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | limiting our ability to use operating cash flow in other areas of our business because we must dedicate a portion of these funds to make significantly higher interest payments on our indebtedness; |

|         |                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------|
| • | limiting our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate; |

|         |                                                                                                                                           |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------|
| • | limiting our ability to take advantage of business opportunities as a result of various restrictive covenants in our debt agreements; and |

|         |                                                                                           |
|---------|-------------------------------------------------------------------------------------------|
| • | placing us at a competitive disadvantage compared to our competitors that have less debt. |

----

Table of Contents

----

Table of Contents

----

Table of Contents

|         |                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------|
| • | allow our government clients to terminate or not renew our contracts if we come under foreign ownership, control, or influence; |

|         |                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------|
| • | allow our government clients to terminate existing contracts for the convenience of the government; |

|         |                                                                          |
|---------|--------------------------------------------------------------------------|
| • | require us to prevent unauthorized access to classified information; and |

|         |                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------|
| • | require us to comply with laws and regulations intended to promote various social or economic goals. |

----

Table of Contents

|         |                                                                        |
|---------|------------------------------------------------------------------------|
| • | trade protection measures and import or export licensing requirements; |

----

Table of Contents

|         |                                                                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | tax rates in certain foreign countries that exceed those in the U.S., and the imposition of foreign withholding taxes on the remittance of foreign earnings to the U.S.; |

|         |                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------|
| • | difficulty in staffing and managing international operations and the application of foreign labor regulations; |

|         |                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------|
| • | multiple and potentially conflicting laws, regulations, and policies that are subject to change; |

|         |                                  |
|---------|----------------------------------|
| • | currency exchange rate risk; and |

|         |                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------|
| • | changes in general economic and political conditions in countries where we operate, particularly in emerging markets. |

----

Table of Contents

|         |                                                                                      |
|---------|--------------------------------------------------------------------------------------|
| • | the ability of our board of directors to issue so-called "flexible" preferred stock; |

|         |                                                                                   |
|---------|-----------------------------------------------------------------------------------|
| • | a provision for any board vacancies to be filled only by the remaining directors; |

|         |                                                                                   |
|---------|-----------------------------------------------------------------------------------|
| • | the inability of stockholders to act by written consent or call special meetings; |

|         |                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------|
| • | advance notice procedures for stockholder proposals to be brought before an annual meeting of our stockholders; |

|         |                                                                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | the affirmative vote of holders of the greater of (a) a majority of the voting power of all common stock and (b) at least 85% of the shares of common stock present at a meeting is required to approve certain change of control transactions; and |

|         |                                                                                                                                                                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Section 203 of the Delaware General Corporation Law, which generally restricts us from engaging in certain business combinations with a person who acquires 15% or more of our common stock for a period of three years from the date such person acquired such common stock, unless stockholder or board approval is obtained prior to the acquisition. |

|               |                                |
|---------------|--------------------------------|
| Item 1B. | Unresolved Staff Comments  |

|         |                 |
|---------|-----------------|
| Item 2. | Properties  |

----

Table of Contents

|         |                        |
|---------|------------------------|
| Item 3. |  Legal Proceedings |

----

Table of Contents

----

Table of Contents

|              |                              |
|--------------|------------------------------|
| Item 4. | Mine Safety Disclosures  |

----

Table of Contents

|               |                                                                                                                   |
|---------------|-------------------------------------------------------------------------------------------------------------------|
| Item  5. | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities  |

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Year Ended October 31, 2012 |   | High |   |     Low     |   | Year Ended October 31, 2011 |   | High   |   | Low |
|                        |   |   |   |   |   |   |   |   |   |   |
| 1st Quarter            |   | $ | 45.44 |  |   | $ | 33.74 |  |   | 1st Quarter |   | $ | 66.39 |  |   | $ | 48.32 |  |
| 2nd Quarter            |   | 48.18 |  |   | 32.68 |  |   | 2nd Quarter |   | 71.49 |  |   | 58.49 |  |
| 3rd Quarter            |   | 35.25 |  |   | 20.21 |  |   | 3rd Quarter |   | 70.40 |  |   | 50.05 |  |
| 4th Quarter(A)         |   | 26.48 |  |   | 18.17 |  |   | 4th Quarter |   | 52.36 |  |   | 30.01 |  |

|     |                                                                                                                                                                                                                                                                    |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | In October 2012, the Company issued 10.67 million shares of common stock at the public offering price of $18.75 per share. For additional information, see Note 16, Stockholders' Equity (Deficit), to the accompanying consolidated financial statements. |

----

Table of Contents

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                        | As of October 31, |
|                                                        | 2007 |   | 2008 |   | 2009 |   | 2010 |   | 2011 |   | 2012 |
| Navistar International Corporation                          | $ | 100 |  |   | $ | 48 |  |   | $ | 53 |  |   | $ | 76 |  |   | $ | 67 |  |   | $ | 30 |  |
| S&P 500 Index - Total Returns(A)                        | 100 |  |   | 64 |  |   | 70 |  |   | 82 |  |   | 88 |  |   | 102 |  |
| S&P Construction, Farm Machinery, and Heavy Truck Index | 100 |  |   | 48 |  |   | 67 |  |   | 106 |  |   | 116 |  |   | 76 |  |

|     |                                                                                                                                                                                                                                                                                                                                                       |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | The performance graph included in our 2011 Annual Report contained a typographical error in the labeling of one of the indices. The returns for the S&P 500 Index - Total Returns was inadvertently labeled as NASDAQ Composite-Total Returns. We are using the same indices in 2012 as we used in 2011, and they are correctly referenced above. |

----

Table of Contents

|              |                              |
|--------------|------------------------------|
| Item 6. | Selected Financial Data  |

|                                                                      |
|----------------------------------------------------------------------|
|                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                 | As of and for the Years Ended October 31,  |
| (in millions, except per share data)                                 | 2012(A) |   | 2011(B) |  |   | 2010 |   | 2009 |   | 2008 |
| RESULTS OF OPERATIONS DATA                                           |   |   |   |   |   |   |   |   |   |
| Sales and revenues, net                                              | $ | 12,948 |  |   | $ | 13,958 |  |   | $ | 12,145 |  |   | $ | 11,569 |  |   | $ | 14,724 |  |
| Income (loss) before extraordinary gain                              | (2,962 | ) |   | 1,778 |  |   | 267 |  |   | 322 |  |   | 134 |  |
| Extraordinary gain, net of tax                                       | — |  |   | — |  |   | — |  |   | 23 |  |   | — |  |
| Net income (loss)                                                    | (2,962 | ) |   | 1,778 |  |   | 267 |  |   | 345 |  |   | 134 |  |
| Less: Net income attributable to non-controlling interest            | 48 |  |   | 55 |  |   | 44 |  |   | 25 |  |   | — |  |
| Net income (loss) attributable to Navistar International Corporation | $ | (3,010 | ) |   | $ | 1,723 |  |   | $ | 223 |  |   | $ | 320 |  |   | $ | 134 |  |
|                                                                 |   |   |   |   |   |   |   |   |   |
| Basic earnings (loss) per share:                                     |   |   |   |   |   |  |   |   |  |   |   |  |
| Income (loss) before extraordinary gain                              | $ | (43.56 | ) |   | $ | 23.66 |  |   | $ | 3.11 |  |   | $ | 4.18 |  |   | $ | 1.89 |  |
| Extraordinary gain, net of tax                                       | — |  |   | — |  |   | — |  |   | 0.33 |  |   | — |  |
| Net income (loss)                                                    | $ | (43.56 | ) |   | $ | 23.66 |  |   | $ | 3.11 |  |   | $ | 4.51 |  |   | $ | 1.89 |  |
| Diluted earnings (loss) per share:                                   |   |   |   |   |   |  |   |   |  |   |   |  |
| Income (loss) before extraordinary gain                              | $ | (43.56 | ) |   | $ | 22.64 |  |   | $ | 3.05 |  |   | $ | 4.14 |  |   | $ | 1.82 |  |
| Extraordinary gain, net of tax                                       | — |  |   | — |  |   | — |  |   | 0.32 |  |   | — |  |
| Net income (loss)                                                    | $ | (43.56 | ) |   | $ | 22.64 |  |   | $ | 3.05 |  |   | $ | 4.46 |  |   | $ | 1.82 |  |
| Weighted average number of shares outstanding:                       |   |   |   |   |   |  |   |   |  |   |   |  |
| Basic                                                                | 69.1 |  |   | 72.8 |  |   | 71.7 |  |   | 71.0 |  |   | 70.7 |  |
| Diluted                                                              | 69.1 |  |   | 76.1 |  |   | 73.2 |  |   | 71.8 |  |   | 73.2 |  |
|                                                                 |   |   |   |   |   |   |   |   |   |
| BALANCE SHEET DATA                                                   |   |   |   |  |   |   |  |   |   |  |   |   |  |
| Total assets                                                         | $ | 9,102 |  |   | $ | 12,291 |  |   | $ | 9,730 |  |   | $ | 10,028 |  |   | $ | 10,390 |  |
| Long-term debt:(C)                                                   |   |   |   |   |   |  |   |   |  |   |   |  |
| Manufacturing operations                                             | $ | 2,733 |  |   | $ | 1,881 |  |   | $ | 1,841 |  |   | $ | 1,670 |  |   | $ | 1,639 |  |
| Financial services operations                                        | 833 |  |   | 1,596 |  |   | 2,397 |  |   | 2,486 |  |   | 3,770 |  |
| Total long-term debt                                                 | $ | 3,566 |  |   | $ | 3,477 |  |   | $ | 4,238 |  |   | $ | 4,156 |  |   | $ | 5,409 |  |
| Redeemable equity securities                                         | $ | 5 |  |   | $ | 5 |  |   | $ | 8 |  |   | $ | 13 |  |   | $ | 143 |  |

----

Table of Contents

|         |                                                                                       |
|---------|---------------------------------------------------------------------------------------|
| Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations |

|         |                                                                                              |
|---------|----------------------------------------------------------------------------------------------|
| • | In July, we announced our next generation clean engine solution, which combines EGR and SCR. |

|         |                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------|
| • | In August, we secured additional financing through our new senior secured, $1 billion term loan credit facility. |

|         |                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In August, we took actions to control spending across the Company with targeted reductions of certain costs which included the VSP and involuntary reductions in force. |

|         |                                                                                 |
|---------|---------------------------------------------------------------------------------|
| • | In October, we announced the planned closure of our facility in Garland, Texas. |

|         |                                                                                                                                                       |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In October, we signed agreements with Cummins for the supply of their urea-based after-treatment system, as well as the supply of their ISX15 engine. |

|         |                                                                                                                                    |
|---------|------------------------------------------------------------------------------------------------------------------------------------|
| • | In October, we received net proceeds of $192 million from our equity offering with an additional $14 million received in November. |

|         |                                                                     |
|---------|---------------------------------------------------------------------|
| • | $404 million of adjustment for pre-existing warranties in 2012, |

----

Table of Contents

|         |                                                                                               |
|---------|-----------------------------------------------------------------------------------------------|
| • | $73 million of restructuring charges for voluntary separation and reduction in force in 2012, |

|         |                                                                                                                                                                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $66 million and $64 million for costs relating to our engineering integration actions in 2012 and 2011, respectively.  For 2012, the charges included restructuring charges of $23 million and other related costs of $43 million. For 2011, the charges included restructuring charges of $29 million and other related costs of $35 million. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | $45 million and $127 million of charges related to the restructuring of our North American manufacturing operations in 2012 and 2011, respectively. For 2012, the charges included impairment charges related to certain intangible assets of $38 million and restructuring charges of $7 million. For 2011, the charges included restructuring charges of $58 million and impairment charges of $64 million related to certain intangible assets and property and equipment, and the other related costs of $5 million. |

|         |                                                           |
|---------|-----------------------------------------------------------|
| • | $34 million of charges for NCPs for certain engine sales. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Engine Strategy and Emissions Standards Compliance—We believe that our new strategy of integrating EGR and SCR, coupled with the Cummins 15L offering, provides a technology path to meet 2010 EPA emissions standards, GHG standards, and positions the Company for future success. We expect this engine strategy will help to address distractions and uncertainty around our engine certification and the continuation of product offerings, which have had a detrimental impact on the Company's performance, including a deterioration of market share. However, in the near term, we expect to be further impacted by the transition of our engine strategy. The Company has incurred significant research and development and tooling costs to design and produce our engine product lines in an effort to meet the EPA and CARB on-highway HDD emissions standards, including OBD requirements. These emissions standards have and will continue to result in significant increases in costs of our products. In addition, our revised strategy creates the potential for gaps in our product offerings that could further impact the Company's results. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | "Traditional" Truck Market—The "traditional" truck markets in which we compete are typically cyclical in nature and are strongly influenced by macro-economic factors such as industrial production, demand for durable goods, capital spending, oil prices and consumer confidence. We anticipate the "traditional" truck industry retail deliveries will be in the range of 290,000 units to 320,000 units for 2013. We expect benefits from further improvements in our "traditional" volumes as the industry continues to recover from the historic lows experienced in 2009 and 2010. According to ACT Research, the average age of truck fleets still remains high. We anticipate higher sales in 2013, resulting from truck replacement as our customers refresh aging fleets. We also expect demand for trucks to increase as freight volumes and rates continue to improve as the U.S. economy recovers. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Worldwide Engine Unit Sales—Our worldwide engine unit sales are impacted primarily by North America truck demand and sales in South America, our largest engine market outside of the North American market. Our MaxxForce engines are expected to begin to incorporate urea-based after-treatment systems from Cummins in 2013. We have made investments in engineering and product development for our proprietary engines and expect to continue to make significant investments in our after-treatment solution, meeting OBD requirements, and obtaining GHG compliance, as well as for other product innovations, cost-reductions, and fuel-usage efficiencies. These markets are impacted by consumer demand for products that use our engines as well as macro-economic factors such as oil prices and construction activity. |

----

Table of Contents

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Military Sales—In 2012, we continued to leverage existing products and plants to meet the demands of the U.S. military and our North Atlantic Treaty Organization ("NATO") allies. Our U.S. military sales were $1.0 billion in 2012, compared to $1.8 billion in both 2011 and 2010. The decrease in military sales reflects a shift in our 2012 sales to primarily upgrading Mine Resistant Ambush Protected ("MRAP") vehicles with our rolling chassis solution and retrofit kits. In comparison, our sales in 2011 and 2010 consisted of delivering, servicing, and maintaining MRAP vehicles, lower-cost militarized commercial trucks, and sales of parts and services. Additionally in 2012, we received orders for the upgrade of MRAP vehicles with our rolling chassis solution, as well as orders for MaxxPro survivability upgrade kits, which are all expected to be completed by the end of 2013. Based on the current environment, in 2013 we expect our military business to generate revenues of approximately $750 million. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Warranty Costs—Emissions regulations in the U.S. and Canada have resulted in rapid product development cycles, driving significant changes from previous engine models. In 2010, we introduced changes to our engine line-up in response to 2010 emissions regulations. Component complexity and other related costs associated with meeting emissions standards have contributed to higher repair costs that exceeded those that we have historically experienced. Historically, warranty claims experience for launch-year engines has been higher compared to the prior model-year engines; however, over time we have been able to refine both the design and manufacturing process to reduce both the volume and the severity of warranty claims. While we continue to improve the design and manufacturing of our engines to reduce the volume and severity of warranty claims, we have continued to experience higher warranty costs than expected which has contributed to significantly higher warranty charges for current and pre-existing warranties, including charges for extended service contracts, in 2012. We recognized adjustments to pre-existing warranties of $404 million in the year ended October 31, 2012, compared to adjustments of $79 million and $51 million in the years ended October 31, 2011 and 2010, respectively. The increase in the adjustments to pre-existing warranties in 2012 relates to the unanticipated increase in warranty expense, primarily for certain 2010 emission standard engines. We may continue to experience an increase in warranty costs as compared to prior periods that could result in additional charges for adjustments to pre-existing warranties. In addition, as we identify opportunities to improve the design and manufacturing of our engines we may incur additional charges for product recalls and field campaigns to address identified issues. These charges may have an adverse effect on our financial condition, results of operations and cash flows. In 2013, to meet new emissions regulations, including but not limited to OBD requirements, the Company will launch several products that will incorporate additional changes and added component complexity. These changes may result in additional future warranty expenses that may have an adverse effect on our financial condition, results of operations and cash flows. For more information, see Note 1, Summary of Significant Accounting Policies, to the accompanying consolidated financial statements. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Operating Cost Saving Initiatives—We continue to evaluate opportunities to restructure our business and rationalize our manufacturing operations in an effort to optimize our cost structure. We recently implemented a number of cost saving initiatives, including the consolidation of our Truck and Engine engineering operations, the relocation of our world headquarters to Lisle, Illinois, continued reductions in discretionary spending, and employee headcount reductions. As a result of these actions and the elimination of certain executive-level positions and consultants, we estimate these actions will result in approximately $175 million of annualized savings, beginning in 2013. In addition, we continue to evaluate additional options to improve the efficiency and performance of our operations. For example, we are evaluating opportunities to restructure our business in an effort to optimize our cost structure, which could include, among other actions, rationalization of certain manufacturing operations and/or divesting non-core businesses. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Global Economy—The global economy, and in particular the economies in the U.S. and Brazil markets, are continuing to recover, and the related financial markets have stabilized. However, the impact of the economic recession and financial turmoil on the global markets pose a continued risk as customers may postpone spending, in response to tighter credit, negative financial news, and/or declines in income or asset values. Lower demand for our customers' products or services could also have a material negative effect on the demand for our products. In addition, there could be exposure related to the financial viability of certain key third-party suppliers, some of which are our sole source for particular components. Lower expectations of growth and profitability have resulted in impairments of long-lived assets in the past and we could continue to experience pressure on the carrying values of our assets if conditions persist for an extended period of time. |

----

Table of Contents

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Impact of Government Regulation—As a manufacturer of trucks and engines, we continue to face significant governmental regulation of our products, especially in the areas of environmental and safety matters. We are also subject to various noise standards imposed by federal, state, and local regulations. Government regulation related to climate change is under consideration at the U.S. federal and state levels. Because our products use fossil fuels, they may be impacted indirectly due to regulation, such as a cap and trade program, affecting the cost of fuels. In 2010, the OBD requirements were commenced for the initial family of truck engines and those products have also been certified, and the phase-in for the remaining engine families occurs in January 2013. In 2011, the EPA and NHTSA issued final rules setting GHG emissions and fuel economy standards for medium and heavy-duty engines and vehicles, which begin to apply in 2014 and are fully implemented in model year 2017. The Company plans to comply with these rules through the use of our existing technologies combined with certain third-party components, as well as the implementation of emerging technologies as they become available. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Raw Material Commodity Costs—Commodity costs, which include steel, precious metals, resins, and petroleum products, increased by $84 million in 2012, increased by $112 million in 2011, and decreased by $49 million in 2010, as compared to the corresponding prior years. We continue to look for opportunities to mitigate the effects of market-based commodity cost increases through a combination of design changes, material substitution, alternate supplier resourcing, global sourcing efforts, pricing performance, and hedging activities. The objective of this strategy is to ensure cost stability and competitiveness in an often volatile global marketplace. Generally, the impact of commodity costs fluctuation in the global market will be reflected in our financial results on a time lag, and to a greater or lesser degree than incurred by our supply base depending on many factors including the terms of supplier contracts, special pricing arrangements, and any commodity hedging strategies employed.  |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Facilities Optimization—We continue to evaluate options to improve the efficiency and performance of our operations. Our focus is on improving our core North American Truck, Engine and Parts business. We are evaluating opportunities to restructure our business and rationalize our manufacturing operations in an effort to optimize our cost structure, which could include, among other actions, additional rationalization of our manufacturing operations and/or divesting of non-core businesses. We have consolidated our executive management, certain business operations, and product development into our world headquarters site in Lisle, Illinois, which we completed in 2012, and we are consolidating our testing and validation activities into our Melrose Park, Illinois, facility, which we expect to complete in 2013. In October 2012, we announced our intention to close our Garland, Texas truck manufacturing plant. In July 2011, we announced our intention to close our Chatham, Ontario truck manufacturing plant, our Union City, Indiana chassis plant, and our Monaco motor coach plant in Coburg, Oregon, which was subsequently sold in 2012. In early 2010, we announced and implemented our plan to consolidate bus production within our Tulsa IC Bus facility. We continue to develop plans for efficient transitions related to these activities and evaluate other options to continue the optimization of our operations. We expect to realize future benefits from the plant optimization actions taken during 2012. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Core Business Evaluation—The Company is currently evaluating its portfolio of assets to validate their strategic and financial fit. To allow us to increase our focus on our North America core businesses, we are evaluating product lines, businesses, and engineering programs that fall outside of our core businesses. We are using ROIC, combined with an assessment of the strategic fit to our core businesses, to identify areas that are not performing to our expectations. For those areas, we are evaluating whether to fix, divest, or close and expect to realize incremental benefits from these actions in the near future. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Joint Ventures and Other Investments—We have made substantial investments in joint ventures and other businesses that complement our core operations and provide growth opportunities in expansionary markets. In 2012, we announced that we received approval from the Chinese government to proceed with our engine manufacturing plans through our joint venture with JAC and expect this to have a significant impact on our global strategy in the future. In 2012, we also initiated certain strategic initiatives, including an agreement with Indiana Phoenix to sell front-discharge concrete mixers through our Continental Mixer subsidiary, and the acquisition of certain assets from E-Z Pack related to the manufacture of refuse truck bodies. In India, we have two joint ventures with Mahindra, MNAL and MNEPL, and the Company is in discussions with Mahindra regarding the potential purchase by Mahindra of our interests in those two joint ventures. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | GE Capital Alliance—In March 2010, we entered into a three-year Operating Agreement (with one-year automatic extensions and subject to early termination provisions) with GE Capital Corporation and GE Capital Commercial, Inc. (collectively "GE") (the "GE Operating Agreement"). Under the terms of the GE Operating Agreement, GE became our preferred source of retail customer financing for equipment offered by us and our dealers in the U.S. We provide GE a loss sharing arrangement for certain credit losses, and under limited circumstances NFC retains the rights to originate retail customer financing. Loan originations under the GE Operating Agreement began in the third quarter of 2010, which will continue to reduce NFC originations and portfolio balances in the future. We expect retail finance receivables and retail finance revenues to continue to decline as our retail portfolio is paid down. |

----

Table of Contents

|                                                                      |
|----------------------------------------------------------------------|
|                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except per share data and % change)                    | 2012 |   | 2011 |   | Change |   | % Change |
| Sales and revenues, net                                              | $ | 12,948 |  |   | $ | 13,958 |  |   | $ | (1,010 | ) |   | (7 | ) |
| Costs of products sold                                               | 11,670 |  |   | 11,262 |  |   | 408 |  |   | 4 |  |
| Restructuring charges                                                | 108 |  |   | 92 |  |   | 16 |  |   | 17 |  |
| Impairment of property and equipment and intangible assets           | 44 |  |   | 64 |  |   | (20 | ) |   | (31 | ) |
| Selling, general and administrative expenses                         | 1,444 |  |   | 1,434 |  |   | 10 |  |   | 1 |  |
| Engineering and product development costs                            | 539 |  |   | 532 |  |   | 7 |  |   | 1 |  |
| Interest expense                                                     | 259 |  |   | 247 |  |   | 12 |  |   | 5 |  |
| Other expense (income), net                                          | 37 |  |   | (64 | ) |   | 101 |  |   | N.M. |  |
| Total costs and expenses                                             | 14,101 |  |   | 13,567 |  |   | 534 |  |   | 4 |  |
| Equity in loss of non-consolidated affiliates                        | (29 | ) |   | (71 | ) |   | 42 |  |   | (59 | ) |
| Income (loss) before income taxes                                    | (1,182 | ) |   | 320 |  |   | (1,502 | ) |   | N.M. |  |
| Income tax benefit (expense)                                         | (1,780 | ) |   | 1,458 |  |   | (3,238 | ) |   | N.M. |  |
| Net income (loss)                                                    | (2,962 | ) |   | 1,778 |  |   | (4,740 | ) |   | N.M. |  |
| Less: Net income attributable to non-controlling interests           | 48 |  |   | 55 |  |   | (7 | ) |   | (13 | ) |
| Net income (loss) attributable to Navistar International Corporation | $ | (3,010 | ) |   | $ | 1,723 |  |   | $ | (4,733 | ) |   | N.M. |  |
| Diluted earnings per share                                           | $ | (43.56 | ) |   | $ | 22.64 |  |   | $ | (66.20 | ) |   | N.M. |  |

|      |                 |
|------|-----------------|
| N.M. | Not meaningful. |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change) | Total |   | U.S. and Canada |   | Rest of World ("ROW") |
| 2012                                          |   | 2011 |   | Change | %Change | 2012 |   | 2011 |   | Change | %Change | 2012 |   | 2011 |   | Change | %Change |
| Truck                                         | $ | 9,069 |  |   | $ | 9,738 |  |   | (669 | ) |   | (7 | ) |   | $ | 7,658 |  |   | $ | 8,330 |  |   | (672 | ) |   | (8 | ) |   | $ | 1,411 |  |   | $ | 1,408 |  |   | 3 |  |   | — |  |
| Engine                                        | 3,394 |  |   | 3,791 |  |   | (397 | ) |   | (10 | ) |   | 2,175 |  |   | 2,240 |  |   | (65 | ) |   | (3 | ) |   | 1,219 |  |   | 1,551 |  |   | (332 | ) |   | (21 | ) |
| Parts                                         | 2,119 |  |   | 2,155 |  |   | (36 | ) |   | (2 | ) |   | 1,890 |  |   | 1,937 |  |   | (47 | ) |   | (2 | ) |   | 229 |  |   | 218 |  |   | 11 |  |   | 5 |  |
| Financial Services                            | 259 |  |   | 291 |  |   | (32 | ) |   | (11 | ) |   | 194 |  |   | 227 |  |   | (33 | ) |   | (15 | ) |   | 65 |  |   | 64 |  |   | 1 |  |   | 2 |  |
| Corporate and Eliminations                    | (1,893 | ) |   | (2,017 | ) |   | 124 |  |   | (6 | ) |   | (1,864 | ) |   | (2,060 | ) |   | 196 |  |   | (10 | ) |   | (29 | ) |   | 43 |  |   | (72 | ) |   | (167 | ) |
| Total                                         | $ | 12,948 |  |   | $ | 13,958 |  |   | (1,010 | ) |   | (7 | ) |   | $ | 10,053 |  |   | $ | 10,674 |  |   | (621 | ) |   | (6 | ) |   | $ | 2,895 |  |   | $ | 3,284 |  |   | (389 | ) |   | (12 | ) |

----

Table of Contents

|                                                          |
|----------------------------------------------------------|
|                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change)                           | 2012 |   | 2011 |   | Change |   | %Change |
| Engineering integration costs                            | $ | 23 |  |   | $ | 29 |  |   | $ | (6 | ) |   | (21 | ) |
| Restructuring of North American manufacturing operations | 7 |  |   | 58 |  |   | (51 | ) |   | (88 | ) |
| Voluntary separation program and reduction in force      | 73 |  |   | — |  |   | 73 |  |   | N.M. |  |
| Other                                                    | 5 |  |   | 5 |  |   | — |  |   | — |  |
| Restructuring charges                                    | $ | 108 |  |   | $ | 92 |  |   | $ | 16 |  |   | 17 |  |

----

Table of Contents

----

Table of Contents

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change)        | 2012 |   | 2011 |   | Change |   | %Change |
| Truck segment sales - U.S. and Canada | $ | 7,658 |  |   | $ | 8,330 |  |   | $ | (672 | ) |   | (8 | ) |
| Truck segment sales - ROW             | 1,411 |  |   | 1,408 |  |   | 3 |  |   | — |  |
| Total Truck segment sales, net        | $ | 9,069 |  |   | $ | 9,738 |  |   | $ | (669 | ) |   | (7 | ) |
| Truck segment profit (loss)           | $ | (320 | ) |   | $ | 336 |  |   | $ | (656 | ) |   | N.M. |  |

----

Table of Contents

|                                                          |
|----------------------------------------------------------|
|                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change)                           | 2012 |   | 2011 |   | Change |   | %Change |
| Engineering integration costs                            | $ | 36 |  |   | $ | 49 |  |   | $ | (13 | ) |   | (27 | ) |
| Restructuring of North American manufacturing operations | 35 |  |   | 124 |  |   | (89 | ) |   | (72 | ) |
| Voluntary separation program and reduction in force      | 29 |  |   | — |  |   | 29 |  |   | N.M. |  |
| Charges incurred by the Truck segment                    | $ | 100 |  |   | $ | 173 |  |   | $ | (73 | ) |   | (42 | ) |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change)         | 2012 |   | 2011 |   | Change |   | %Change |
| Engine segment sales - U.S. and Canada | $ | 2,175 |  |   | $ | 2,240 |  |   | $ | (65 | ) |   | (3 | ) |
| Engine segment sales - ROW             | 1,219 |  |   | 1,551 |  |   | (332 | ) |   | (21 | ) |
| Total Engine segment sales, net        | $ | 3,394 |  |   | $ | 3,791 |  |   | $ | (397 | ) |   | (10 | ) |
| Engine segment profit (loss)           | $ | (562 | ) |   | $ | 84 |  |   | $ | (646 | ) |   | N.M. |  |

----

Table of Contents

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change)        | 2012 |   | 2011 |   | Change |   | %Change |
| Parts segment sales - U.S. and Canada | $ | 1,890 |  |   | $ | 1,937 |  |   | $ | (47 | ) |   | (2 | ) |
| Parts segment sales - ROW             | 229 |  |   | 218 |  |   | 11 |  |   | 5 |  |
| Total Parts segment sales, net        | $ | 2,119 |  |   | $ | 2,155 |  |   | $ | (36 | ) |   | (2 | ) |
| Parts segment profit                  | $ | 240 |  |   | $ | 287 |  |   | $ | (47 | ) |   | (16 | ) |

|                                                          |
|----------------------------------------------------------|
|                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change)                           | 2012 |   | 2011 |   | Change |   | %Change |
| Financial Services segment revenues - U.S. and Canada(A) | $ | 194 |  |   | $ | 227 |  |   | $ | (33 | ) |   | (15 | ) |
| Financial Services segment revenues - ROW                | 65 |  |   | 64 |  |   | 1 |  |   | 2 |  |
| Total Financial Services segment revenues, net           | $ | 259 |  |   | $ | 291 |  |   | $ | (32 | ) |   | (11 | ) |
| Financial Services segment profit                        | $ | 91 |  |   | $ | 129 |  |   | $ | (38 | ) |   | (29 | ) |

|     |                                                                   |
|-----|-------------------------------------------------------------------|
| (A) | The Financial Services segment does not have Canadian operations. |

----

Table of Contents

|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except per share data and % change)             | 2011 |   | 2010 |   | Change |   | % Change |
| Sales and revenues, net                                       | $ | 13,958 |  |   | $ | 12,145 |  |   | $ | 1,813 |  |   | 15 |  |
| Costs of products sold                                        | 11,262 |  |   | 9,741 |  |   | 1,521 |  |   | 16 |  |
| Restructuring charges (benefit)                               | 92 |  |   | (15 | ) |   | 107 |  |   | N.M. |  |
| Impairment of property and equipment and intangible assets    | 64 |  |   | — |  |   | 64 |  |   | N.M. |  |
| Selling, general and administrative expenses                  | 1,434 |  |   | 1,406 |  |   | 28 |  |   | 2 |  |
| Engineering and product development costs                     | 532 |  |   | 464 |  |   | 68 |  |   | 15 |  |
| Interest expense                                              | 247 |  |   | 253 |  |   | (6 | ) |   | (2 | ) |
| Other income, net                                             | (64 | ) |   | (44 | ) |   | (20 | ) |   | 45 |  |
| Total costs and expenses                                      | 13,567 |  |   | 11,805 |  |   | 1,762 |  |   | 15 |  |
| Equity in loss of non-consolidated affiliates                 | (71 | ) |   | (50 | ) |   | (21 | ) |   | 42 |  |
| Income before income tax                                      | 320 |  |   | 290 |  |   | 30 |  |   | 10 |  |
| Income tax benefit (expense)                                  | 1,458 |  |   | (23 | ) |   | 1,481 |  |   | N.M. |  |
| Net income                                                    | 1,778 |  |   | 267 |  |   | 1,511 |  |   | N.M. |  |
| Less: Net income attributable to non-controlling interests    | 55 |  |   | 44 |  |   | 11 |  |   | 25 |  |
| Net income attributable to Navistar International Corporation | $ | 1,723 |  |   | $ | 223 |  |   | $ | 1,500 |  |   | N.M. |  |
| Diluted earnings per share                                    | $ | 22.64 |  |   | $ | 3.05 |  |   | $ | 19.59 |  |   | N.M. |  |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change) | Total |   | U.S. and Canada |   | Rest of World ("ROW") |
| 2011                                          |   | 2010 |   | Change |   | %Change |   | 2011 |   | 2010 |   | Change |   | %Change |   | 2011 |   | 2010 |   | Change |   | %Change |
| Truck                                         | $ | 9,738 |  |   | $ | 8,207 |  |   | $ | 1,531 |  |   | 19 |  |   | $ | 8,330 |  |   | $ | 7,393 |  |   | $ | 937 |  |   | 13 |  |   | $ | 1,408 |  |   | $ | 814 |  |   | $ | 594 |  |   | 73 |  |
| Engine                                        | 3,791 |  |   | 2,986 |  |   | 805 |  |   | 27 |  |   | 2,240 |  |   | 1,730 |  |   | 510 |  |   | 29 |  |   | 1,551 |  |   | 1,256 |  |   | 295 |  |   | 23 |  |
| Parts                                         | 2,155 |  |   | 1,885 |  |   | 270 |  |   | 14 |  |   | 1,937 |  |   | 1,718 |  |   | 219 |  |   | 13 |  |   | 218 |  |   | 167 |  |   | 51 |  |   | 31 |  |
| Financial Services                            | 291 |  |   | 309 |  |   | (18 | ) |   | (6 | ) |   | 227 |  |   | 254 |  |   | (27 | ) |   | (11 | ) |   | 64 |  |   | 55 |  |   | 9 |  |   | 16 |  |
| Corporate and Eliminations                    | (2,017 | ) |   | (1,242 | ) |   | (775 | ) |   | 62 |  |   | (2,060 | ) |   | (1,175 | ) |   | (885 | ) |   | 75 |  |   | 43 |  |   | (67 | ) |   | 110 |  |   | (164 | ) |
| Total                                         | $ | 13,958 |  |   | $ | 12,145 |  |   | $ | 1,813 |  |   | 15 |  |   | $ | 10,674 |  |   | $ | 9,920 |  |   | $ | 754 |  |   | 8 |  |   | $ | 3,284 |  |   | $ | 2,225 |  |   | $ | 1,059 |  |   | 48 |  |

----

Table of Contents

----

Table of Contents

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change)        | 2011 |   | 2010 |   | Change |   | %Change   |
| Truck segment sales - U.S. and Canada | $ | 8,330 |  |   | $ | 7,393 |  |   | 937 |  |   | 13 |  |
| Truck segment sales - ROW             | 1,408 |  |   | 814 |  |   | 594 |  |   | 73 |  |
| Total Truck segment sales, net        | $ | 9,738 |  |   | $ | 8,207 |  |   | 1,531 |  |   | 19 |  |
| Truck segment profit                  | $ | 336 |  |   | $ | 424 |  |   | (88 | ) |   | (21 | ) |

----

Table of Contents

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change)         | 2011 |   | 2010 |   | Change |   | %Change   |
| Engine segment sales - U.S. and Canada | $ | 2,240 |  |   | $ | 1,730 |  |   | $ | 510 |  |   | 29 |
| Engine segment sales - ROW             | 1,551 |  |   | 1,256 |  |   | 295 |  |   | 23 |
| Total Engine segment sales, net        | $ | 3,791 |  |   | $ | 2,986 |  |   | $ | 805 |  |   | 27 |
| Engine segment profit                  | $ | 84 |  |   | $ | 51 |  |   | $ | 33 |  |   | 65 |

----

Table of Contents

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change)        | 2011 |   | 2010 |   | Change   |   | %Change   |
| Parts segment sales - U.S. and Canada | $ | 1,937 |  |   | $ | 1,718 |  |   | $ | 219 |  |   | 13 |
| Parts segment sales - ROW             | 218 |  |   | 167 |  |   | 51 |  |   | 31 |
| Total Parts segment sales, net        | $ | 2,155 |  |   | $ | 1,885 |  |   | $ | 270 |  |   | 14 |
| Parts segment profit                  | $ | 287 |  |   | $ | 266 |  |   | $ | 21 |  |   | 8 |

|                                                          |
|----------------------------------------------------------|
|                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change)                           | 2011 |   | 2010 |   | Change   |   | %Change |
| Financial Services segment revenues - U.S. and Canada(A) | $ | 227 |  |   | $ | 254 |  |   | $ | (27 | ) |   | (11 | ) |
| Financial Services segment revenues - ROW                | 64 |  |   | 55 |  |   | 9 |  |   | 16 |  |
| Total Financial Services segment revenues, net           | $ | 291 |  |   | $ | 309 |  |   | $ | (18 | ) |   | (6 | ) |
| Financial Services segment profit                        | $ | 129 |  |   | $ | 95 |  |   | $ | 34 |  |   | 36 |  |

|     |                                                                               |
|-----|-------------------------------------------------------------------------------|
| (A) | Our Financial Services segment does not have Canadian operations or revenues. |

----

Table of Contents

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     |   |   |   |   |   |   | 2012 vs. 2011 |   | 2011 vs. 2010 |
| (in units)                               | 2012 |   | 2011(A) |   | 2010 |   | Change   |   | % Change |   | Change   |   | % Change |
| "Traditional" Markets (U.S. and Canada)  |   |   |   |   |   |   |   |   |   |   |   |   |
| School buses                             | 20,400 |  |   | 18,600 |  |   | 20,900 |  |   | 1,800 |  |   | 10 |   | (2,300 | ) |   | (11 | ) |
| Class 6 and 7 medium trucks              | 68,100 |  |   | 64,600 |  |   | 46,400 |  |   | 3,500 |  |   | 5 |   | 18,200 |  |   | 39 |  |
| Class 8 heavy trucks                     | 187,000 |  |   | 139,700 |  |   | 92,600 |  |   | 47,300 |  |   | 34 |   | 47,100 |  |   | 51 |  |
| Class 8 severe service trucks(B)         | 43,700 |  |   | 39,400 |  |   | 34,600 |  |   | 4,300 |  |   | 11 |   | 4,800 |  |   | 14 |  |
| Total "traditional" markets              | 319,200 |  |   | 262,300 |  |   | 194,500 |  |   | 56,900 |  |   | 22 |   | 67,800 |  |   | 35 |  |
| Combined class 8 trucks                  | 230,700 |  |   | 179,100 |  |   | 127,200 |  |   | 51,600 |  |   | 29 |   | 51,900 |  |   | 41 |  |
| Navistar "traditional" retail deliveries | 73,800 |  |   | 73,000 |  |   | 65,400 |  |   | 800 |  |   | 1 |   | 7,600 |  |   | 12 |  |

|     |                                                                                                                                                                   |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Beginning in the fourth quarter of 2011, our competitors began reporting certain RV and commercial bus chassis units consistently with how we report these units. |

|     |                                                                                                                         |
|-----|-------------------------------------------------------------------------------------------------------------------------|
| (B) | "Traditional" retail deliveries include CAT-branded units sold to Caterpillar under our North America supply agreement. |

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |
|                                    | 2012 |   | 2011 |   | 2010 |
| "Traditional" Markets (U.S. and Canada) |   |   |   |   |   |
| School buses                            | 47 | % |   | 49 | % |   | 59 | % |
| Class 6 and 7 medium trucks             | 33 | % |   | 41 | % |   | 38 | % |
| Class 8 heavy trucks                    | 15 | % |   | 17 | % |   | 24 | % |
| Class 8 severe service trucks(A)        | 30 | % |   | 35 | % |   | 40 | % |
| Total "traditional" markets             | 23 | % |   | 28 | % |   | 34 | % |
| Combined class 8 trucks                 | 18 | % |   | 21 | % |   | 28 | % |

|     |                                                                                                                       |
|-----|-----------------------------------------------------------------------------------------------------------------------|
| (A) | Retail delivery market share includes CAT-branded units sold to Caterpillar under our North America supply agreement. |

----

Table of Contents

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                    |   |   |   | 2012 vs. 2011 |   | 2011 vs. 2010 |
| (in units)                              | 2012 |   | 2011 |   | 2010 |   | Change   |   | % Change |   | Change |   | % Change   |
| "Traditional" Markets (U.S. and Canada) |   |   |   |   |   |   |   |   |   |   |   |   |
| School buses                            | 10,900 |  |   | 8,600 |  |   | 7,800 |  |   | 2,300 |  |   | 27 |  |   | 800 |  |   | 10 |  |
| Class 6 and 7 medium trucks             | 20,300 |  |   | 28,000 |  |   | 17,700 |  |   | (7,700 | ) |   | (28 | ) |   | 10,300 |  |   | 58 |  |
| Class 8 heavy trucks                    | 22,500 |  |   | 29,600 |  |   | 20,200 |  |   | (7,100 | ) |   | (24 | ) |   | 9,400 |  |   | 47 |  |
| Class 8 severe service trucks(A)        | 12,500 |  |   | 13,100 |  |   | 13,300 |  |   | (600 | ) |   | (5 | ) |   | (200 | ) |   | (2 | ) |
| Total "traditional" markets             | 66,200 |  |   | 79,300 |  |   | 59,000 |  |   | (13,100 | ) |   | (17 | ) |   | 20,300 |  |   | 34 |  |
| Combined class 8 trucks                 | 35,000 |  |   | 42,700 |  |   | 33,500 |  |   | (7,700 | ) |   | (18 | ) |   | 9,200 |  |   | 27 |  |

|     |                                                                                                                  |
|-----|------------------------------------------------------------------------------------------------------------------|
| (A) | Truck segment net orders include CAT-branded units sold to Caterpillar under our North America supply agreement. |

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                    |   |   |   |   | 2012 vs. 2011 |   | 2011 vs. 2010 |
| (in units)                              | 2012 |   | 2011 |   | 2010 |   | Change |   | %Change |   | Change |   | % Change   |
| "Traditional" Markets (U.S. and Canada) |   |   |   |   |   |   |   |   |   |   |   |   |   |
| School buses                            | 2,300 |  |   | 1,200 |  |   | 1,500 |  |   | 1,100 |  |   | 92 |  |   | (300 | ) |   | (20 | ) |
| Class 6 and 7 medium trucks             | 3,900 |  |   | 6,100 |  |   | 4,700 |  |   | (2,200 | ) |   | (36 | ) |   | 1,400 |  |   | 30 |  |
| Class 8 heavy trucks                    | 5,700 |  |   | 9,300 |  |   | 6,300 |  |   | (3,600 | ) |   | (39 | ) |   | 3,000 |  |   | 48 |  |
| Class 8 severe service trucks(A)        | 2,600 |  |   | 3,400 |  |   | 3,100 |  |   | (800 | ) |   | (24 | ) |   | 300 |  |   | 10 |  |
| Total "traditional" markets             | 14,500 |  |   | 20,000 |  |   | 15,600 |  |   | (5,500 | ) |   | (28 | ) |   | 4,400 |  |   | 28 |  |
| Combined class 8 trucks                 | 8,300 |  |   | 12,700 |  |   | 9,400 |  |   | (4,400 | ) |   | (35 | ) |   | 3,300 |  |   | 35 |  |

|     |                                                                                                                |
|-----|----------------------------------------------------------------------------------------------------------------|
| (A) | Truck segment backlog includes CAT-branded units sold to Caterpillar under our North America supply agreement. |

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                    |   |   |   | 2012 vs. 2011 |   | 2011 vs. 2010 |
| (in units)                              | 2012 |   | 2011 |   | 2010 |   | Change   |   | %Change |   | Change   |   | %Change |
| "Traditional" Markets (U.S. and Canada) |   |   |   |   |   |   |   |   |   |   |   |   |
| School buses                            | 9,700 |  |   | 9,200 |  |   | 12,400 |  |   | 500 |  |   | 5 |  |   | (3,200 | ) |   | (26 | ) |
| Class 6 and 7 medium trucks        | 21,900 |  |   | 27,100 |  |   | 18,500 |  |   | (5,200 | ) |   | (19 | ) |   | 8,600 |  |   | 46 |  |
| Class 8 heavy trucks               | 27,100 |  |   | 25,700 |  |   | 21,600 |  |   | 1,400 |  |   | 5 |  |   | 4,100 |  |   | 19 |  |
| Class 8 severe service trucks(A)   | 13,600 |  |   | 13,300 |  |   | 14,000 |  |   | 300 |  |   | 2 |  |   | (700 | ) |   | (5 | ) |
| Total "traditional" markets             | 72,300 |  |   | 75,300 |  |   | 66,500 |  |   | (3,000 | ) |   | (4 | ) |   | 8,800 |  |   | 13 |  |
| Non "traditional" military(B)           | 1,600 |  |   | 1,400 |  |   | 1,400 |  |   | 200 |  |   | 14 |  |   | — |  |   | — |  |
| "Expansion" markets(C)                  | 31,200 |  |   | 31,700 |  |   | 19,100 |  |   | (500 | ) |   | (2 | ) |   | 12,600 |  |   | 66 |  |
| Total worldwide units(D)                | 105,100 |  |   | 108,400 |  |   | 87,000 |  |   | (3,300 | ) |   | (3 | ) |   | 21,400 |  |   | 25 |  |
| Combined class 8 trucks                 | 40,700 |  |   | 39,000 |  |   | 35,600 |  |   | 1,700 |  |   | 4 |  |   | 3,400 |  |   | 10 |  |
| Combined military(E)                    | 2,400 |  |   | 3,700 |  |   | 4,600 |  |   | (1,300 | ) |   | (35 | ) |   | (900 | ) |   | (20 | ) |

|     |                                                                                                    |
|-----|----------------------------------------------------------------------------------------------------|
| (A) | Chargeouts include CAT-branded units sold to Caterpillar under our North America supply agreement. |

|     |                                                                                                                                                |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------|
| (B) | Excludes U.S. and Canada militarized commercial units included in "traditional" markets Class 8 severe service trucks and "expansion" markets. |

|     |                                                                                                                                                         |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| (C) | Includes chargeouts related to Blue Diamond Truck ("BDT") of 6,600 units, 6,700 units, and 3,800 during 2012, 2011, and 2010, respectively. |

|     |                                                                                                                                                |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------|
| (D) | Excludes chargeouts related to RV towables of 3,000 units, 2,800 units, and 4,000 units during 2012, 2011, and 2010, respectively. |

|     |                                                                                                                                                                  |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (E) | Includes military units included within "traditional" markets Class 8 severe service, "expansion" markets, and all units reported as non "traditional" military. |

----

Table of Contents

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                        |   |   |   |   |   |   | 2012 vs. 2011 |   | 2011 vs. 2010 |
| (in units)                  | 2012 |   | 2011 |   | 2010 |   | Change   |   | %Change   |   | Change   |   | %Change   |
| OEM sales-South America(A)  | 106,700 |  |   | 138,600 |  |   | 132,800 |  |   | (31,900 | ) |   | (23 | ) |   | 5,800 |  |   | 4 |  |
| Ford Sales- U.S. and Canada | — |  |   | — |  |   | 24,900 |  |   | — |  |   | — |  |   | (24,900 | ) |   | (100 | ) |
| Intercompany sales          | 83,100 |  |   | 88,800 |  |   | 68,500 |  |   | (5,700 | ) |   | (6 | ) |   | 20,300 |  |   | 30 |  |
| Other OEM sales             | 10,100 |  |   | 16,200 |  |   | 14,200 |  |   | (6,100 | ) |   | (38 | ) |   | 2,000 |  |   | 14 |  |
| Total sales                 | 199,900 |  |   | 243,600 |  |   | 240,400 |  |   | (43,700 | ) |   | (18 | ) |   | 3,200 |  |   | 1 |  |

|     |                                                                                                                                          |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Includes shipments related to Ford of 6,300 units, 27,000 units, and 22,300 units during 2012, 2011, and 2010, respectively. |

|                                                                                    |
|------------------------------------------------------------------------------------|
|                                                                                    |  |  |  |  |  |  |  |  |  |  |  |
|                                                                               | As of October 31, |
| (in millions)                                                                      | 2012 |   | 2011 |   | 2010 |
| Consolidated cash and cash equivalents                                             | $ | 1,087 |  |   | $ | 539 |  |   | $ | 585 |  |
| Consolidated marketable securities                                                 | 466 |  |   | 718 |  |   | 586 |  |
| Consolidated cash, cash equivalents and marketable securities at end of the period | $ | 1,553 |  |   | $ | 1,257 |  |   | $ | 1,171 |  |

----

Table of Contents

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |
|                                                         | Year Ended October 31, 2012 |
| (in millions)                                                | ManufacturingOperations |   | Financial Services Operations and Adjustments |   | Condensed Consolidated Statement of Cash Flows |
| Net cash provided by (used in) operating activities          | $ | (298 | ) |   | $ | 908 |  |   | $ | 610 |  |
| Net cash provided by (used in) investing activities          | (110 | ) |   | 108 |  |   | (2 | ) |
| Net cash provided by (used in) financing activities          | 977 |  |   | (1,040 | ) |   | (63 | ) |
| Effect of exchange rate changes on cash and cash equivalents | 2 |  |   | 1 |  |   | 3 |  |
| Increase (decrease) in cash and cash equivalents             | 571 |  |   | (23 | ) |   | 548 |  |
| Cash and cash equivalents at beginning of the year           | 488 |  |   | 51 |  |   | 539 |  |
| Cash and cash equivalents at end of the year                 | $ | 1,059 |  |   | $ | 28 |  |   | $ | 1,087 |  |

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |
|                                                         | Year Ended October 31, 2011 |
| (in millions)                                                | ManufacturingOperations |   | Financial Services Operations and Adjustments |   | Condensed Consolidated Statement of Cash Flows |
| Net cash provided by operating activities                    | $ | 680 |  |   | $ | 200 |  |   | $ | 880 |  |
| Net cash used in investing activities                        | (617 | ) |   | (206 | ) |   | (823 | ) |
| Net cash provided by (used in) financing activities          | (106 | ) |   | 6 |  |   | (100 | ) |
| Effect of exchange rate changes on cash and cash equivalents | (3 | ) |   | — |  |   | (3 | ) |
| Decrease in cash and cash equivalents                        | (46 | ) |   | — |  |   | (46 | ) |
| Cash and cash equivalents at beginning of the year           | 534 |  |   | 51 |  |   | 585 |  |
| Cash and cash equivalents at end of the year                 | $ | 488 |  |   | $ | 51 |  |   | $ | 539 |  |

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |
|                                                         | Year Ended October 31, 2010 |
| (in millions)                                                | ManufacturingOperations |   | Financial Services Operations and Adjustments |   | Condensed Consolidated Statement of Cash Flows |
| Net cash provided by operating activities                    | $ | 409 |  |   | $ | 698 |  |   | $ | 1,107 |  |
| Net cash provided by (used in) investing activities          | (916 | ) |   | 482 |  |   | (434 | ) |
| Net cash used in financing activities                        | (110 | ) |   | (1,190 | ) |   | (1,300 | ) |
| Effect of exchange rate changes on cash and cash equivalents | (1 | ) |   | 1 |  |   | — |  |
| Decrease in cash and cash equivalents                        | (618 | ) |   | (9 | ) |   | (627 | ) |
| Cash and cash equivalents at beginning of the year           | 1,152 |  |   | 60 |  |   | 1,212 |  |
| Cash and cash equivalents at end of the year                 | $ | 534 |  |   | $ | 51 |  |   | $ | 585 |  |

----

Table of Contents

----

Table of Contents

----

Table of Contents

|               |
|---------------|
|               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Company  |   | Instrument Type |   | Total Amount |   | Purpose of Funding |   | AmountUtilized |   | Matures or Expires |
| (in millions) |   |   |   |   |   |   |   |   |   |
| NFSC          |   | Revolving wholesale note trust |   | $ | 974 |  |   | Eligible wholesale notes |   | $ | 524 |  |   | 2013 |
| TRAC          |   | Revolving retail account conduit |   | 125 |  |   | Eligible retail accounts |   | 51 |  |   | 2013 |
| NFC           |   | Credit agreement |   | 827 |  | (A)  | Finance receivables and general corporate purposes |   | 367 |  |   | 2016 |
| NFM           |   | Bank lines and commercial paper |   | 489 |  |   | General corporate purposes |   | 414 |  |   | 2013-2019 |

|     |                                                             |
|-----|-------------------------------------------------------------|
| (A) | NFM can borrow up to $200 million, if not used by NFC. |

----

Table of Contents

----

Table of Contents

----

Table of Contents

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                    | Payments Due by Year Ending October 31,   |
| (in millions)                                           | Total |   | 2013 |   | 2014-2015 |   | 2016-2017 |   | 2018 +   |
| Type of contractual obligation:                         |   |   |   |   |   |   |   |   |   |
| Long-term debt obligations                              | $ | 4,720 |  |   | $ | 1,145 |  |   | $ | 2,033 |  |   | $ | 342 |  |   | $ | 1,200 |  |
| Interest on long-term debt(A)                           | 1,407 |  |   | 221 |  |   | 309 |  |   | 201 |  |   | 676 |  |
| Financing arrangements and capital lease obligations(B) | 140 |  |   | 64 |  |   | 31 |  |   | 13 |  |   | 32 |  |
| Operating lease obligations(C)                          | 366 |  |   | 58 |  |   | 104 |  |   | 79 |  |   | 125 |  |
| Purchase obligations(D)                                 | 113 |  |   | 96 |  |   | 10 |  |   | 4 |  |   | 3 |  |
| Total                                                   | $ | 6,746 |  |   | $ | 1,584 |  |   | $ | 2,487 |  |   | $ | 639 |  |   | $ | 2,036 |  |

|     |                                                                                                                                                                                                                                                                 |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Amounts represent estimated contractual interest payments on outstanding debt. Rates in effect as of October 31, 2012 are used for variable rate debt. For more information, see Note 9, Debt, to the accompanying consolidated financial statements. |

|     |                                                                                                                                                                                                                                                                                                                                    |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B) | We lease many of our facilities as well as other property and equipment under financing arrangements and capital leases in the normal course of business including $24 million of interest obligations. For more information, see Note 6, Property and Equipment, Net, to the accompanying consolidated financial statements. |

|     |                                                                                                                                                                                                                                                                                          |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (C) | Lease obligations for facility closures are included in operating leases. Future operating lease obligations are not recognized in our Consolidated Balance Sheet. For more information, see Note 6, Property and Equipment, Net, to the accompanying consolidated financial statements. |

|     |                                                                                                                                                                                                         |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (D) | Purchase obligations include various commitments in the ordinary course of business that would include the purchase of goods or services and they are not recognized in our Consolidated Balance Sheet. |

----

Table of Contents

----

Table of Contents

|         |                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | the nature of the estimate or assumption is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change, or |

|         |                                                                                                       |
|---------|-------------------------------------------------------------------------------------------------------|
| • | the impact of the estimate or assumption on financial condition or operating performance is material. |

|         |                                                                                                                                                                                                                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Plant rationalization activities impact the determination of whether a plan curtailment or settlement has occurred. Key considerations include, but are not limited to, expected future service credit, the remaining years of recall rights of the workforce, and the extent to which minimum service requirements (in the case of healthcare benefits) have been met. |

|         |                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The discount rates are obtained by matching the anticipated future benefit payments for the plans to the Citigroup yield curve to establish a weighted average discount rate for each plan. |

|         |                                                                                                                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Health care cost trend rates are developed based upon historical retiree cost trend data, short term health care outlook, and industry benchmarks and surveys. The inflation assumptions used are based upon both our specific trends and nationally expected trends. |

|         |                                                                                                                                                                                                                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The expected return on plan assets is derived from historical plan returns, expected long-term performance of asset classes, asset allocations, input from an external pension investment advisor, and risks and other factors adjusted for our specific investment strategy. The focus is on long-term trends and provides for the consideration of recent plan performance. |

|         |                                                                       |
|---------|-----------------------------------------------------------------------|
| • | Retirement rates are based upon actual and projected plan experience. |

----

Table of Contents

|         |                                                                          |
|---------|--------------------------------------------------------------------------|
| • | Mortality rates are developed from actual and projected plan experience. |

|         |                                                                                                                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The rate of compensation increase reflects our long-term actual experience and our projected future increases including contractually agreed upon wage rate increases for represented employees. |

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                       | October 31, 2012  |   | 2013 Expense   |
|                       | Obligations  |   |   |   |   |
| (in millions)              | Pension  |   | OPEB   |   | Pension  |   | OPEB   |
| Discount rate:             |   |   |   |   |   |   |   |
| Increase of 1.0%           | $ | (435 | ) |   | $ | (194 | ) |   | $ | (2 | ) |   | $ | (3 | ) |
| Decrease of 1.0%           | 481 |  |   | 234 |  |   | (2 | ) |   | 4 |  |
| Expected return on assets: |   |   |   |   |   |   |   |
| Increase of 1.0%           | NA |  |   | NA |  |   | (24 | ) |   | (4 | ) |
| Decrease of 1.0%           | NA |  |   | NA |  |   | 24 |  |   | 4 |  |

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

|          |                                                            |
|----------|------------------------------------------------------------|
| Item 7A. | Quantitative and Qualitative Disclosures about Market Risk |

----

Table of Contents

|              |                                                  |
|--------------|--------------------------------------------------|
| Item 8. | Financial Statements and Supplementary Data  |

|                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |  |  |
|                                                                                                                | Page |
| Report of Independent Registered Public Accounting Firm                                                             | 60 |  |
| Consolidated Statements of Operations for the years ended October 31, 2012, 2011, and 2010                     | 61 |  |
| Consolidated Statements of Comprehensive Income (Loss) for the years ended October 31, 2012, 2011, and 2010    | 62 |  |
| Consolidated Balance Sheets as of October 31, 2012 and 2011                                                    | 63 |  |
| Consolidated Statements of Cash Flows for the years ended October 31, 2012, 2011, and 2010                     | 64 |  |
| Consolidated Statements of Stockholders' Equity (Deficit) for the years ended October 31, 2012, 2011, and 2010 | 65 |  |

|                                            |
|--------------------------------------------|
|                                            |  |  |  |
| Notes to Consolidated Financial Statements |   |
| 1                                          | Summary of Significant Accounting Policies | 66 |  |
| 2                                          | Restructurings and Impairments | 76 |  |
| 3                                          | Finance Receivables | 79 |  |
| 4                                          | Allowance for Doubtful Accounts | 81 |  |
| 5                                          | Inventories | 82 |  |
| 6                                          | Property and Equipment, Net | 82 |  |
| 7                                          | Goodwill and other Intangible Assets, Net | 84 |  |
| 8                                          | Investments in Non-consolidated Affiliates | 85 |  |
| 9                                          | Debt | 87 |  |
| 10                                         | Postretirement Benefits | 93 |  |
| 11                                         | Income Taxes | 101 |  |
| 12                                         | Fair Value Measurements | 104 |  |
| 13                                         | Financial Instruments and Commodity Contracts | 107 |  |
| 14                                         | Commitments and Contingencies | 109 |  |
| 15                                         | Segment Reporting | 115 |  |
| 16                                         | Stockholders' Equity (Deficit) | 118 |  |
| 17                                         | Earnings Per Share | 120 |  |
| 18                                         | Stock-based Compensation Plans | 121 |  |
| 19                                         | Supplemental Cash Flow Information | 124 |  |
| 20                                         | Condensed Consolidating Guarantor and Non-guarantor Financial Information | 125 |  |
| 21                                         | Selected Quarterly Financial Data (Unaudited) | 131 |  |

----

Table of Contents

----

Table of Contents

|                                                                               |
|-------------------------------------------------------------------------------|
|                                                                               |  |  |  |  |  |  |  |  |  |  |  |
|                                                                          | For the Years Ended October 31, |
| (in millions, except per share data)                                          | 2012 |   | 2011 |   | 2010 |
| Sales and revenues                                                            |   |   |   |   |   |
| Sales of manufactured products, net                                           | $ | 12,780 |  |   | $ | 13,758 |  |   | $ | 11,926 |  |
| Finance revenues                                                              | 168 |  |   | 200 |  |   | 219 |  |
| Sales and revenues, net                                                       | 12,948 |  |   | 13,958 |  |   | 12,145 |  |
| Costs and expenses                                                            |   |   |   |   |   |
| Costs of products sold                                                        | 11,670 |  |   | 11,262 |  |   | 9,741 |  |
| Restructuring charges                                                         | 108 |  |   | 92 |  |   | (15 | ) |
| Impairment of property and equipment and intangible assets                    | 44 |  |   | 64 |  |   | — |  |
| Selling, general and administrative expenses                                  | 1,444 |  |   | 1,434 |  |   | 1,406 |  |
| Engineering and product development costs                                     | 539 |  |   | 532 |  |   | 464 |  |
| Interest expense                                                              | 259 |  |   | 247 |  |   | 253 |  |
| Other expense (income), net                                                   | 37 |  |   | (64 | ) |   | (44 | ) |
| Total costs and expenses                                                      | 14,101 |  |   | 13,567 |  |   | 11,805 |  |
| Equity in loss of non-consolidated affiliates                                 | (29 | ) |   | (71 | ) |   | (50 | ) |
| Income (loss) before income taxes                                             | (1,182 | ) |   | 320 |  |   | 290 |  |
| Income tax benefit (expense)                                                  | (1,780 | ) |   | 1,458 |  |   | (23 | ) |
| Net income (loss)                                                             | (2,962 | ) |   | 1,778 |  |   | 267 |  |
| Less: Net income attributable to non-controlling interests                    | 48 |  |   | 55 |  |   | 44 |  |
| Net income (loss) attributable to Navistar International Corporation          | $ | (3,010 | ) |   | $ | 1,723 |  |   | $ | 223 |  |
|                                                                          |   |   |   |   |  |  |
| Earnings (loss) per share attributable to Navistar International Corporation: |   |   |   |   |   |
| Basic                                                                         | $ | (43.56 | ) |   | $ | 23.66 |  |   | $ | 3.11 |  |
| Diluted                                                                       | (43.56 | ) |   | 22.64 |  |   | 3.05 |  |
|                                                                          |   |   |   |   |   |
| Weighted average shares outstanding:                                          |   |   |   |   |   |
| Basic                                                                         | 69.1 |  |   | 72.8 |  |   | 71.7 |  |
| Diluted                                                                       | 69.1 |  |   | 76.1 |  |   | 73.2 |  |

----

Table of Contents

|                                                                                      |
|--------------------------------------------------------------------------------------|
|                                                                                      |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                        | For the Years Ended October 31, |
| 2012                                                                                 |   | 2011 |   | 2010 |
| Net income (loss) attributable to Navistar International Corporation                 | $ | (3,010 | ) |   | $ | 1,723 |  |   | $ | 223 |  |
| Other comprehensive income (loss):                                                   |   |   |   |   |   |
| Foreign currency translation adjustment                                              | (125 | ) |   | (19 | ) |   | 22 |  |
| Defined benefit plans (net of tax of $14, $430, and $0, respectively)                | (256 | ) |   | (729 | ) |   | 472 |  |
| Total other comprehensive income (loss)                                              | (381 | ) |   | (748 | ) |   | 494 |  |
| Total comprehensive income (loss) attributable to Navistar International Corporation | $ | (3,391 | ) |   | $ | 975 |  |   | $ | 717 |  |

----

Table of Contents

|                                                                                                                                  |
|----------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                  |  |  |  |  |  |  |  |
|                                                                                                                             | As of October 31, |
| (in millions, except per share data)                                                                                             | 2012 |   | 2011 |
| ASSETS                                                                                                                           |   |   |   |
| Current assets                                                                                                                   |   |   |   |
| Cash and cash equivalents                                                                                                        | $ | 1,087 |  |   | $ | 539 |  |
| Restricted cash                                                                                                                  | — |  |   | 100 |  |
| Marketable securities                                                                                                            | 466 |  |   | 718 |  |
| Trade and other receivables, net                                                                                                 | 749 |  |   | 1,219 |  |
| Finance receivables, net                                                                                                         | 1,663 |  |   | 2,198 |  |
| Inventories                                                                                                                      | 1,537 |  |   | 1,714 |  |
| Deferred taxes, net                                                                                                              | 74 |  |   | 474 |  |
| Other current assets                                                                                                             | 261 |  |   | 273 |  |
| Total current assets                                                                                                             | 5,837 |  |   | 7,235 |  |
| Restricted cash                                                                                                                  | 161 |  |   | 227 |  |
| Trade and other receivables, net                                                                                                 | 94 |  |   | 122 |  |
| Finance receivables, net                                                                                                         | 486 |  |   | 715 |  |
| Investments in non-consolidated affiliates                                                                                       | 62 |  |   | 60 |  |
| Property and equipment, net                                                                                                      | 1,660 |  |   | 1,570 |  |
| Goodwill                                                                                                                         | 280 |  |   | 319 |  |
| Intangible assets, net                                                                                                           | 171 |  |   | 234 |  |
| Deferred taxes, net                                                                                                              | 189 |  |   | 1,583 |  |
| Other noncurrent assets                                                                                                          | 162 |  |   | 226 |  |
| Total assets                                                                                                                     | $ | 9,102 |  |   | $ | 12,291 |  |
| LIABILITIES and STOCKHOLDERS’ EQUITY (DEFICIT)                                                                             |   |   |   |
| Liabilities                                                                                                                      |   |   |   |
| Current liabilities                                                                                                              |   |   |   |
| Notes payable and current maturities of long-term debt                                                                           | $ | 1,205 |  |   | $ | 1,379 |  |
| Accounts payable                                                                                                                 | 1,686 |  |   | 2,122 |  |
| Other current liabilities                                                                                                        | 1,462 |  |   | 1,297 |  |
| Total current liabilities                                                                                                        | 4,353 |  |   | 4,798 |  |
| Long-term debt                                                                                                                   | 3,566 |  |   | 3,477 |  |
| Postretirement benefits liabilities                                                                                              | 3,405 |  |   | 3,210 |  |
| Deferred taxes, net                                                                                                              | 42 |  |   | 59 |  |
| Other noncurrent liabilities                                                                                                     | 996 |  |   | 719 |  |
| Total liabilities                                                                                                                | 12,362 |  |   | 12,263 |  |
| Redeemable equity securities                                                                                                     | 5 |  |   | 5 |  |
| Stockholders’ equity (deficit)                                                                                             |   |   |   |
| Series D convertible junior preference stock                                                                                | 3 |  |   | 3 |  |
| Common stock (86.0 and 75.4 shares issued, respectively; and $.10 par value per share and 220.0 shares authorized at both dates) | 9 |  |   | 7 |  |
| Additional paid in capital                                                                                                       | 2,440 |  |   | 2,253 |  |
| Accumulated deficit                                                                                                              | (3,165 | ) |   | (155 | ) |
| Accumulated other comprehensive loss                                                                                             | (2,325 | ) |   | (1,944 | ) |
| Common stock held in treasury, at cost (6.8 and 4.9 shares, respectively)                                                        | (272 | ) |   | (191 | ) |
| Total stockholders’ deficit attributable to Navistar International Corporation                                             | (3,310 | ) |   | (27 | ) |
| Stockholders’ equity attributable to non-controlling interests                                                             | 45 |  |   | 50 |  |
| Total stockholders’ equity (deficit)                                                                                       | (3,265 | ) |   | 23 |  |
| Total liabilities and stockholders’ equity (deficit)                                                                       | $ | 9,102 |  |   | $ | 12,291 |  |

----

Table of Contents

|                                                                                                        |
|--------------------------------------------------------------------------------------------------------|
|                                                                                                        |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                   | For the Years Ended October 31, |
| (in millions)                                                                                          | 2012 |   | 2011 |   | 2010 |
| Cash flows from operating activities                                                                   |   |   |   |   |   |
| Net income (loss)                                                                                      | $ | (2,962 | ) |   | $ | 1,778 |  |   | $ | 267 |  |
| Adjustments to reconcile net income (loss) to cash provided by operating activities:                   |   |   |   |   |   |
| Depreciation and amortization                                                                          | 277 |  |   | 290 |  |   | 265 |  |
| Depreciation of equipment leased to others                                                             | 46 |  |   | 38 |  |   | 51 |  |
| Deferred taxes, including change in valuation allowance                                                | 1,778 |  |   | (1,513 | ) |   | 17 |  |
| Impairment of property and equipment and intangible assets                                             | 44 |  |   | 75 |  |   | — |  |
| Amortization of debt issuance costs and discount                                                       | 46 |  |   | 44 |  |   | 38 |  |
| Stock-based compensation                                                                               | 19 |  |   | 36 |  |   | 24 |  |
| Provision for doubtful accounts, net of recoveries                                                     | 14 |  |   | (6 | ) |   | 29 |  |
| Equity in loss of non-consolidated affiliates, net of dividends                                        | 36 |  |   | 75 |  |   | 55 |  |
| Other non-cash operating activities                                                                    | 20 |  |   | (15 | ) |   | 61 |  |
| Changes in other assets and liabilities, exclusive of the effects of businesses acquired and disposed: |   |   |   |   |   |
| Trade and other receivables                                                                            | 454 |  |   | (212 | ) |   | (136 | ) |
| Finance receivables                                                                                    | 741 |  |   | 8 |  |   | 546 |  |
| Inventories                                                                                            | 76 |  |   | (129 | ) |   | 122 |  |
| Accounts payable                                                                                       | (399 | ) |   | 247 |  |   | (72 | ) |
| Other assets and liabilities                                                                           | 420 |  |   | 164 |  |   | (160 | ) |
| Net cash provided by operating activities                                                              | 610 |  |   | 880 |  |   | 1,107 |  |
| Cash flows from investing activities                                                                   |   |   |   |   |   |
| Purchases of marketable securities                                                                     | (1,209 | ) |   | (1,562 | ) |   | (1,876 | ) |
| Sales or maturities of marketable securities                                                           | 1,461 |  |   | 1,430 |  |   | 1,290 |  |
| Net change in restricted cash and cash equivalents                                                     | 165 |  |   | (147 | ) |   | 515 |  |
| Capital expenditures                                                                                   | (309 | ) |   | (429 | ) |   | (234 | ) |
| Purchase of equipment leased to others                                                                 | (61 | ) |   | (71 | ) |   | (45 | ) |
| Proceeds from sales of property and equipment                                                          | 18 |  |   | 32 |  |   | 23 |  |
| Investments in non-consolidated affiliates                                                             | (42 | ) |   | (65 | ) |   | (97 | ) |
| Proceeds from sales of affiliates                                                                      | 1 |  |   | 3 |  |   | 7 |  |
| Business acquisitions, net of cash received                                                            | (12 | ) |   | 12 |  |   | (2 | ) |
| Acquisition of intangibles                                                                             | (14 | ) |   | (26 | ) |   | (15 | ) |
| Net cash used in investing activities                                                                  | (2 | ) |   | (823 | ) |   | (434 | ) |
| Cash flows from financing activities                                                                   |   |   |   |   |   |
| Proceeds from issuance of securitized debt                                                             | 1,313 |  |   | 599 |  |   | 1,460 |  |
| Principal payments on securitized debt                                                                 | (1,976 | ) |   | (708 | ) |   | (1,579 | ) |
| Proceeds from issuance of non-securitized debt                                                         | 1,517 |  |   | 214 |  |   | 687 |  |
| Principal payments on non-securitized debt                                                             | (616 | ) |   | (107 | ) |   | (883 | ) |
| Net increase (decrease) in notes and debt outstanding under revolving credit facilities                | (269 | ) |   | 137 |  |   | (866 | ) |
| Principal payments under financing arrangements and capital lease obligations                          | (35 | ) |   | (86 | ) |   | (62 | ) |
| Debt issuance costs                                                                                    | (57 | ) |   | (11 | ) |   | (35 | ) |
| Issuance of common stock                                                                               | 192 |  |   | — |  |   | — |  |
| Purchase of treasury stock                                                                             | (75 | ) |   | (125 | ) |   | — |  |
| Proceeds from exercise of stock options                                                                | 2 |  |   | 40 |  |   | 35 |  |
| Dividends paid by subsidiaries to non-controlling interest                                             | (56 | ) |   | (53 | ) |   | (57 | ) |
| Other financing activities                                                                             | (3 | ) |   | — |  |   | — |  |
| Net cash used in financing activities                                                                  | (63 | ) |   | (100 | ) |   | (1,300 | ) |
| Effect of exchange rate changes on cash and cash equivalents                                           | 3 |  |   | (3 | ) |   | — |  |
| Increase (decrease) in cash and cash equivalents                                                       | 548 |  |   | (46 | ) |   | (627 | ) |
| Cash and cash equivalents at beginning of the year                                                     | 539 |  |   | 585 |  |   | 1,212 |  |
| Cash and cash equivalents at end of the year                                                           | $ | 1,087 |  |   | $ | 539 |  |   | $ | 585 |  |

----

Table of Contents

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                           | Series D ConvertibleJuniorPreference Stock |   | CommonStock |   | Additional Paid-inCapital |   | AccumulatedDeficit |   | AccumulatedOtherComprehensiveIncome (Loss) |   | CommonStockHeld inTreasury, at cost |   | Stockholders'EquityAttributableto NoncontrollingInterests |   | Total |
| Balance as of October 31, 2009                                                          | $ | 4 |  |   | $ | 7 |  |   | $ | 2,181 |  |   | $ | (2,101 | ) |   | $ | (1,690 | ) |   | $ | (149 | ) |   | $ | 61 |  |   | $ | (1,687 | ) |
| Net income                                                                              |   |   |   |   |   |   | 223 |  |   |   |   |   |   | 44 |  |   | 267 |  |
| Total other comprehensive income                                                        |   |   |   |   |   |   |   |   | 494 |  |   |   |   |   |   | 494 |  |
| Transfer from redeemable equity securities upon exercise or expiration of stock options |   |   |   |   | 5 |  |   |   |   |   |   |   |   |   |   | 5 |  |
| Stock-based compensation                                                                |   |   |   |   | 18 |  |   |   |   |   |   |   |   |   |   | 18 |  |
| Stock ownership programs                                                                |   |   |   |   | 2 |  |   |   |   |   |   | 25 |  |   |   |   | 27 |  |
| Cash dividends paid to non-controlling interest                                         |   |   |   |   |   |   |   |   |   |   |   |   | (57 | ) |   | (57 | ) |
| Other                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   | 1 |  |   | 1 |  |
| Balance as of October 31, 2010                                                          | $ | 4 |  |   | $ | 7 |  |   | $ | 2,206 |  |   | $ | (1,878 | ) |   | $ | (1,196 | ) |   | $ | (124 | ) |   | $ | 49 |  |   | $ | (932 | ) |
| Net income                                                                              |   |   |   |   |   |   | 1,723 |  |   |   |   |   |   | 55 |  |   | 1,778 |  |
| Total other comprehensive loss                                                          |   |   |   |   |   |   |   |   | (748 | ) |   |   |   |   |   | (748 | ) |
| Transfer from redeemable equity securities upon exercise or expiration of stock options |   |   |   |   | 3 |  |   |   |   |   |   |   |   |   |   | 3 |  |
| Stock-based compensation                                                                |   |   |   |   | 27 |  |   |   |   |   |   |   |   |   |   | 27 |  |
| Stock ownership programs                                                                |   |   |   |   | (8 | ) |   |   |   |   |   | 38 |  |   |   |   | 30 |  |
| Stock repurchase programs                                                               |   |   |   |   |   |   |   |   |   |   | (105 | ) |   |   |   | (105 | ) |
| Forward contract for accelerated stock repurchase program                               |   |   |   |   | (20 | ) |   |   |   |   |   |   |   |   |   | (20 | ) |
| Cash dividends paid to non-controlling interest                                         |   |   |   |   |   |   |   |   |   |   |   |   | (53 | ) |   | (53 | ) |
| Impact to additional paid-in capital from change in valuation allowance                 |   |   |   |   | 45 |  |   |   |   |   |   |   |   |   |   | 45 |  |
| Other                                                                                   | (1 | ) |   |   |   |   |   |   |   |   |   |   |   | (1 | ) |   | (2 | ) |
| Balance as of October 31, 2011                                                          | $ | 3 |  |   | $ | 7 |  |   | $ | 2,253 |  |   | $ | (155 | ) |   | $ | (1,944 | ) |   | $ | (191 | ) |   | $ | 50 |  |   | $ | 23 |  |
| Net loss                                                                                |   |   |   |   |   |   | (3,010 | ) |   |   |   |   |   | 48 |  |   | (2,962 | ) |
| Total other comprehensive loss                                                          |   |   |   |   |   |   |   |   | (381 | ) |   |   |   |   |   | (381 | ) |
| Stock-based compensation                                                                |   |   |   |   | 18 |  |   |   |   |   |   |   |   |   |   | 18 |  |
| Stock ownership programs                                                                |   |   |   |   | (14 | ) |   |   |   |   |   | 15 |  |   |   |   | 1 |  |
| Stock repurchase programs                                                               |   |   |   |   | 20 |  |   |   |   |   |   | (95 | ) |   |   |   | (75 | ) |
| Cash dividends paid to non-controlling interest                                         |   |   |   |   |   |   |   |   |   |   |   |   | (56 | ) |   | (56 | ) |
| Increase in ownership interest acquired from non-controlling interest holder            |   |   |   |   | (3 | ) |   |   |   |   |   |   |   | 3 |  |   | — |  |
| October 2012 issuance of common stock, net of issuance costs and fees                   |   |   | 1 |  |   | 191 |  |   |   |   |   |   |   |   |   |   | 192 |  |
| Impact to additional paid-in capital from change in valuation allowance                 |   |   |   |   | (26 | ) |   |   |   |   |   |   |   |   |   | (26 | ) |
| Other                                                                                   |   |   | 1 |  |   | 1 |  |   |   |   |   |   | (1 | ) |   |   |   | 1 |  |
| Balance as of October 31, 2012                                                          | $ | 3 |  |   | $ | 9 |  |   | $ | 2,440 |  |   | $ | (3,165 | ) |   | $ | (2,325 | ) |   | $ | (272 | ) |   | $ | 45 |  |   | $ | (3,265 | ) |

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

|                                    |
|------------------------------------|
|                                    |  |
|                               | Years |
| Buildings                          | 20 - 50 |
| Leasehold improvements             | 3 - 20 |
| Machinery and equipment            | 3 - 12 |
| Furniture, fixtures, and equipment | 3 - 15 |
| Equipment leased to others         | 1 - 10 |

----

Table of Contents

|                                 |
|---------------------------------|
|                                 |  |  |
|                            | Years |
| Customer base and relationships | 3 - 15 |  |
| Trademarks                      | 20 |  |
| Supply agreements               | 3 |  |
| Other                           | 3 - 18 |  |

----

Table of Contents

----

Table of Contents

|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |  |  |  |  |  |  |  |  |  |  |
|                                                              | Year Ended October 31, |
| (in millions)                                                     | 2012 |   | 2011 |   | 2010 |
| Balance at November 1                                             | $ | 598 |  |   | $ | 506 |  |   | $ | 492 |  |
| Costs accrued and revenues deferred(A)                            | 571 |  |   | 407 |  |   | 269 |  |
| Acquisitions                                                      | — |  |   | 5 |  |   | — |  |
| Adjustments to pre-existing warranties(B)                         | 404 |  |   | 79 |  |   | 51 |  |
| Payments and revenues recognized                                  | (455 | ) |   | (399 | ) |   | (306 | ) |
| Balance at October 31                                             | 1,118 |  |   | 598 |  |   | 506 |  |
| Less: Current portion                                             | 551 |  |   | 263 |  |   | 252 |  |
| Noncurrent accrued product warranty and deferred warranty revenue | $ | 567 |  |   | $ | 335 |  |   | $ | 254 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | The warranty estimation for engines sold in 2012 includes a factor for improvements to the design and manufacturing process that was based on historical experience. In the fourth quarter of 2012 we identified a deviation from historic experience and we recorded an adjustment for a change in estimate to increase in the costs accrued for warranty of $28 million, or $0.41 per diluted share for products sold in the first three quarters of 2012. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B) | In the first quarter of 2012, we recorded significant adjustments for changes in estimates of $123 million, or $1.76 per diluted share. In the second quarter of 2012, we recorded significant adjustments for changes in estimates of $104 million, or $1.51 per diluted share. In the fourth quarter of 2012, we recorded significant adjustments for changes in estimates of $149 million, or $2.16 per diluted share. In the third quarter of 2011, we recorded significant adjustments for changes in estimates of $30 million, or $0.39 per diluted share. In the second quarter of 2011, we recorded significant adjustments for changes in estimates of $27 million, or $0.34 per diluted share. In the third quarter of 2010, we recorded significant adjustments for changes in estimates of $25 million, or $0.34 diluted share. |

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                | Balance at October 31, 2011 |   | Additions |   | Payments |   | Adjustments |   | Balance at October 31, 2012 |
| Employee termination charges | $ | 31 |  |   | $ | 73 |  |   | $ | (30 | ) |   | $ | (2 | ) |   | $ | 72 |  |
| Employee relocation costs    | — |  |   | 8 |  |   | (8 | ) |   | — |  |   | — |  |
| Lease vacancy                | — |  |   | 19 |  |   | (4 | ) |   | 2 |  |   | 17 |  |
| Other                        | 8 |  |   | 11 |  |   | (17 | ) |   | (2 | ) |   | — |  |
| Restructuring liability      | $ | 39 |  |   | $ | 111 |  |   | $ | (59 | ) |   | $ | (2 | ) |   | $ | 89 |  |

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                | Balance atOctober 31, 2010 |   | Additions |   | Payments |   | Adjustments |   | Balance at October 31, 2011 |
| Employee termination charges | $ | 5 |  |   | $ | 31 |  |   | $ | (5 | ) |   | $ | — |  |   | $ | 31 |  |
| Employee relocation costs    | — |  |   | 9 |  |   | (9 | ) |   | — |  |   | — |  |
| Other                        | — |  |   | 8 |  |   | — |  |   | — |  |   | 8 |  |
| Restructuring liability      | $ | 5 |  |   | $ | 48 |  |   | $ | (14 | ) |   | $ | — |  |   | $ | 39 |  |

----

Table of Contents

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |
| (in millions)                         | 2012 |   | 2011 |
| Retail portfolio                      | $ | 1,048 |  |   | $ | 1,613 |  |
| Wholesale portfolio                   | 1,128 |  |   | 1,334 |  |
| Total finance receivables             | 2,176 |  |   | 2,947 |  |
| Less: Allowance for doubtful accounts | 27 |  |   | 34 |  |
| Total finance receivables, net        | 2,149 |  |   | 2,913 |  |
| Less: Current portion, net(A)         | 1,663 |  |   | 2,198 |  |
| Noncurrent portion, net               | $ | 486 |  |   | $ | 715 |  |

|     |                                                                                                                                                                                                                                                |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | The current portion of finance receivables is computed based on contractual maturities. Actual cash collections typically vary from the contractual cash flows because of prepayments, extensions, delinquencies, credit losses, and renewals. |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)             | Retail Portfolio |   | Wholesale Portfolio |   | Total |
| Due in:                   |   |   |   |   |   |
| 2013                      | $ | 587 |  |   | $ | 1,128 |  |   | $ | 1,715 |  |
| 2014                      | 260 |  |   | — |  |   | 260 |  |
| 2015                      | 153 |  |   | — |  |   | 153 |  |
| 2016                      | 81 |  |   | — |  |   | 81 |  |
| 2017                      | 30 |  |   | — |  |   | 30 |  |
| Thereafter                | 7 |  |   | — |  |   | 7 |  |
| Gross finance receivables | 1,118 |  |   | 1,128 |  |   | 2,246 |  |
| Unearned finance income   | (70 | ) |   | — |  |   | (70 | ) |
| Total finance receivables | $ | 1,048 |  |   | $ | 1,128 |  |   | $ | 2,176 |  |

----

Table of Contents

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |  |
| (in millions)                                  | Maturity |   | October 31, 2012 |   | October 31, 2011 |
| Variable funding notes                         | August 2013 |   | $ | 750 |  |   | $ | 500 |  |
| Investor notes                                 | October 2012 |   | — |  |   | 350 |  |
| Investor notes                                 | October 2013 |   | 224 |  |   | — |  |
| Investor notes                                 | January 2012 |   | — |  |   | 250 |  |
|    Total wholesale note funding |   |   | $ | 974 |  |   | $ | 1,100 |  |

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |
| (in millions)                           | 2012 |   | 2011 |
| Retail notes and finance leases revenue | $ | 98 |  |   | $ | 137 |  |
| Wholesale notes interest                | 87 |  |   | 93 |  |
| Operating lease revenue                 | 40 |  |   | 32 |  |
| Retail and wholesale accounts interest  | 34 |  |   | 27 |  |
| Securitization income                   | — |  |   | 2 |  |
| Gross finance revenues                  | 259 |  |   | 291 |  |
| Less: Intercompany revenues             | 91 |  |   | 91 |  |
| Finance revenues                        | $ | 168 |  |   | $ | 200 |  |

|                                            |
|--------------------------------------------|
|                                            |  |  |  |
| (in millions)                              | 2010 |
| Proceeds from sales of finance receivables | $ | 3,509 |  |
| Servicing fees                             | 6 |  |
| Cash from net excess spread                | 32 |  |
| Investment Income                          | — |  |
| Net cash from securitization transactions  | $ | 3,547 |  |

----

Table of Contents

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                    | October 31, 2012 |
| (in millions)                                           | RetailPortfolio |   | WholesalePortfolio |   | Trade andOtherReceivables |   | Total |
| Allowance for doubtful accounts, at beginning of period | $ | 31 |  |   | $ | 2 |  |   | $ | 17 |  |   | $ | 50 |  |
| Provision for doubtful accounts, net of recoveries      | 3 |  |   | (2 | ) |   | 13 |  |   | 14 |  |
| Charge-off of accounts(A)                               | (7 | ) |   | — |  |   | (6 | ) |   | (13 | ) |
| Allowance for doubtful accounts, at end of period       | $ | 27 |  |   | $ | — |  |   | $ | 24 |  |   | $ | 51 |  |

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                    | October 31, 2011 |
| (in millions)                                           | RetailPortfolio |   | WholesalePortfolio |   | Trade andOtherReceivables |   | Total |
| Allowance for doubtful accounts, at beginning of period | $ | 58 |  |   | $ | 2 |  |   | $ | 36 |  |   | $ | 96 |  |
| Provision for doubtful accounts, net of recoveries      | (5 | ) |   | — |  |   | (1 | ) |   | (6 | ) |
| Charge-off of accounts(A)                               | (22 | ) |   | — |  |   | (18 | ) |   | (40 | ) |
| Allowance for doubtful accounts, at end of period       | $ | 31 |  |   | $ | 2 |  |   | $ | 17 |  |   | $ | 50 |  |

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                    | October 31, 2010 |
| (in millions)                                           | RetailPortfolio |   | WholesalePortfolio |   | Trade andOtherReceivables |   | Total |
| Allowance for doubtful accounts, at beginning of period | $ | 58 |  |   | $ | 1 |  |   | $ | 45 |  |   | $ | 104 |  |
| Provision for doubtful accounts, net of recoveries      | 26 |  |   | 1 |  |   | 2 |  |   | 29 |  |
| Charge-off of accounts(A)                               | (26 | ) |   | — |  |   | (11 | ) |   | (37 | ) |
| Allowance for doubtful accounts, at end of period       | $ | 58 |  |   | $ | 2 |  |   | $ | 36 |  |   | $ | 96 |  |

|     |                                                                                                                                                                                                                                                                                                                             |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | We repossess sold and leased vehicles on defaulted finance receivables and leases, and place them into Inventories. Losses recognized at the time of repossession and charged against the allowance for doubtful accounts were $6 million , $20 million, and $22 million in 2012, 2011, and 2010. respectively. |

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                        | As of October 31, 2012 |   | As of October 31, 2011 |
| (in millions)                                               | RetailPortfolio |   | WholesalePortfolio |   | Total |   | RetailPortfolio |   | WholesalePortfolio |   | Total |
| Impaired finance receivables with specific loss reserves    | $ | 14 |  |   | $ | — |  |   | $ | 14 |  |   | $ | 15 |  |   | $ | — |  |   | $ | 15 |  |
| Impaired finance receivables without specific loss reserves | 1 |  |   | — |  |   | 1 |  |   | 2 |  |   | — |  |   | 2 |  |
| Specific loss reserves on impaired finance receivables      | 9 |  |   | — |  |   | 9 |  |   | 10 |  |   | — |  |   | 10 |  |
| Finance receivables on non-accrual status                   | 10 |  |   | — |  |   | 10 |  |   | 14 |  |   | — |  |   | 14 |  |

----

Table of Contents

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |
|                                | As of October 31, 2012 |
| (in millions)                       | RetailPortfolio |   | WholesalePortfolio |   | Total |
| Current, and up to 30 days past due | $ | 965 |  |   | $ | 1,126 |  |   | $ | 2,091 |  |
| 30-90 days past due                 | 72 |  |   | 1 |  |   | 73 |  |
| Over 90 days past due               | 11 |  |   | 1 |  |   | 12 |  |
| Total finance receivables           | $ | 1,048 |  |   | $ | 1,128 |  |   | $ | 2,176 |  |

|                   |
|-------------------|
|                   |  |  |  |  |  |  |  |
| (in millions)     | 2012 |   | 2011 |
| Finished products | $ | 833 |  |   | $ | 873 |  |
| Work in process   | 136 |  |   | 174 |  |
| Raw materials     | 568 |  |   | 667 |  |
| Total inventories | $ | 1,537 |  |   | $ | 1,714 |  |

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |
| (in millions)                                   | 2012 |   | 2011 |
| Land(A)                                         | $ | 79 |  |   | $ | 52 |  |
| Buildings(A)                                    | 520 |  |   | 387 |  |
| Leasehold improvements                          | 81 |  |   | 71 |  |
| Machinery and equipment                         | 2,504 |  |   | 2,309 |  |
| Furniture, fixtures, and equipment              | 244 |  |   | 214 |  |
| Equipment leased to others                      | 301 |  |   | 291 |  |
| Construction in progress(A)                     | 159 |  |   | 309 |  |
| Total property and equipment, at cost           | 3,888 |  |   | 3,633 |  |
| Less: Accumulated depreciation and amortization | 2,228 |  |   | 2,063 |  |
| Property and equipment, net                     | $ | 1,660 |  |   | $ | 1,570 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | We consolidated our executive management, certain business operations, and product development into a 1.2 million square foot, world headquarters site in Lisle, Illinois, which we completed in the first quarter of fiscal 2012, and we are consolidating our testing and validation center in our Melrose Park facility, which we expect to complete in 2013. Construction in progress includes amounts related to this activity. |

|                                                                                                |
|------------------------------------------------------------------------------------------------|
|                                                                                                |  |  |  |  |  |  |  |
| (in millions)                                                                                  | 2012 |   | 2011 |
| Equipment leased to others                                                                     | $ | 301 |  |   | $ | 291 |  |
| Less: Accumulated depreciation                                                                 | 94 |  |   | 103 |  |
| Equipment leased to others, net                                                                | $ | 207 |  |   | $ | 188 |  |
|                                                                                           |   |   |   |
| Buildings, machinery, and equipment under financing arrangements and capital lease obligations | $ | 156 |  |   | $ | 100 |  |
| Less: Accumulated depreciation and amortization                                                | 86 |  |   | 71 |  |
| Assets under financing arrangements and capital lease obligations, net                         | $ | 70 |  |   | $ | 29 |  |

----

Table of Contents

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                              | 2012 |   | 2011 |   | 2010 |
| Depreciation expense                       | $ | 248 |  |   | $ | 260 |  |   | $ | 236 |  |
| Depreciation of equipment leased to others | 46 |  |   | 38 |  |   | 51 |  |
| Amortization expense                       | 4 |  |   | 1 |  |   | 2 |  |
| Interest capitalized                       | 9 |  |   | 18 |  |   | 4 |  |

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)          | FinancingArrangementsand CapitalLease Obligations  |   | OperatingLeases |   | Total |
| 2013                   | $ | 69 |  |   | $ | 58 |  |   | $ | 127 |  |
| 2014                   | 29 |  |   | 54 |  |   | 83 |  |
| 2015                   | 9 |  |   | 50 |  |   | 59 |  |
| 2016                   | 9 |  |   | 42 |  |   | 51 |  |
| 2017                   | 9 |  |   | 37 |  |   | 46 |  |
| Thereafter             | 39 |  |   | 125 |  |   | 164 |  |
|                   | 164 |  |   | $ | 366 |  |   | $ | 530 |  |
| Less: Interest portion | 24 |  |   |   |  |   |   |  |
| Total                  | $ | 140 |  |   |   |   |   |

----

Table of Contents

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)               | Truck |   | Engine |   | Parts |   | Total |
| As of October 31, 2009 | $ | 74 |  |   | $ | 206 |  |   | $ | 38 |  |   | $ | 318 |  |
| Currency translation        | — |  |   | 5 |  |   | — |  |   | 5 |  |
| Adjustments(A)              | — |  |   | (6 | ) |   | — |  |   | (6 | ) |
| Acquisitions                | 7 |  |   | — |  |   | — |  |   | 7 |  |
| As of October 31, 2010 | $ | 81 |  |   | $ | 205 |  |   | $ | 38 |  |   | $ | 324 |  |
| Currency translation        | — |  |   | 2 |  |   | — |  |   | 2 |  |
| Adjustments(A)              | — |  |   | (7 | ) |   | — |  |   | (7 | ) |
| As of October 31, 2011      | $ | 81 |  |   | $ | 200 |  |   | $ | 38 |  |   | $ | 319 |  |
| Currency translation        | — |  |   | (33 | ) |   | — |  |   | (33 | ) |
| Adjustments(A)              | — |  |   | (6 | ) |   | — |  |   | (6 | ) |
| As of October 31, 2012      | $ | 81 |  |   | $ | 161 |  |   | $ | 38 |  |   | $ | 280 |  |

|     |                                                                                                                                                                                                                                                                            |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Adjustments to goodwill primarily result from the tax benefit attributable to the amortization of tax deductible goodwill in excess of goodwill recorded for financial statement purposes as measured in the IIAA balance sheet immediately after its acquisition in 2005. |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |
| (in millions)                                 | 2012 |   | 2011 |
| Dealer franchise rights                       | $ | 5 |  |   | $ | 7 |  |
| Trademarks                                    | 50 |  |   | 60 |  |
| Intangible assets not subject to amortization | $ | 55 |  |   | $ | 67 |  |

|                          |
|--------------------------|
|                          |  |  |  |  |  |  |  |  |  |  |  |
|                     | As of October 31, 2012 |
| (in millions)            | Customer Base and Relationships  |   | Trademarks, Patents and Other |   | Total  |
| Gross carrying value     | $ | 93 |  |   | $ | 101 |  |   | $ | 194 |  |
| Accumulated amortization | (47 | ) |   | (31 | ) |   | (78 | ) |
| Net of amortization      | $ | 46 |  |   | $ | 70 |  |   | $ | 116 |  |

|                          |
|--------------------------|
|                          |  |  |  |  |  |  |  |  |  |  |  |
|                     | As of October 31, 2011 |
| (in millions)            | Customer Base and Relationships  |   | Trademarks, Patents and Other |   | Total  |
| Gross carrying value     | $ | 135 |  |   | $ | 104 |  |   | $ | 239 |  |
| Accumulated amortization | (52 | ) |   | (20 | ) |   | (72 | ) |
| Net of amortization      | $ | 83 |  |   | $ | 84 |  |   | 167 |  |

----

Table of Contents

|               |
|---------------|
|               |  |  |  |
| (in millions) | EstimatedAmortization |
| 2013          | $ | 22 |  |
| 2014          | 21 |  |
| 2015          | 17 |  |
| 2016          | 15 |  |
| 2017          | 14 |  |
| Thereafter    | 27 |  |

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |
| (in millions)                                    | 2012 |   | 2011 |
| Assets:                                          | (Unaudited) |
| Current assets                                   | $ | 271 |  |   | $ | 214 |  |
| Noncurrent assets                                | 199 |  |   | 238 |  |
| Total assets                                     | $ | 470 |  |   | $ | 452 |  |
| Liabilities and equity:                          |   |   |   |
| Current liabilities                              | $ | 195 |  |   | $ | 118 |  |
| Noncurrent liabilities                           | 91 |  |   | 117 |  |
| Total liabilities                                | 286 |  |   | 235 |  |
| Partners' capital and stockholders' equity:      |  |  |   |   |
| NIC                                              | 55 |  |   | 73 |  |
| Third parties                                    | 129 |  |   | 144 |  |
| Total partners' capital and stockholders' equity | 184 |  |   | 217 |  |
| Total liabilities and equity                     | $ | 470 |  |   | $ | 452 |  |

----

Table of Contents

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |  |  |  |
|                                    | 2012 |   | 2011(A) |   | 2010 |
| (in millions)                           | (Unaudited) |   | (Unaudited) |   | (Unaudited) |
| Net sales                               | $ | 704 |  |   | $ | 938 |  |   | $ | 659 |  |
| Costs, expenses, and income tax expense | 726 |  |   | 1,069 |  |   | 755 |  |
| Net loss                                | $ | (22 | ) |   | $ | (131 | ) |   | $ | (96 | ) |

|     |                                                          |
|-----|----------------------------------------------------------|
| (A) | Includes amounts for NC2 through September 29, 2011. |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |
| (in millions)                   | 2012 |   | 2011 |
| Receivables due from affiliates | $ | 32 |  |   | $ | 30 |  |
| Payables due to affiliates      | 29 |  |   | 29 |  |

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |
| (in millions)           | Eleven Months Ended September 29, 2011 |   | Year Ended               October 31, 2010 |
| Net revenue             | $ | 235 |  |   | $ | 63 |  |
| Net expenses            | 318 |  |   | 135 |  |
| Loss before tax expense | (83 | ) |   | (72 | ) |
| Net loss                | (83 | ) |   | (72 | ) |

----

Table of Contents

|                                                                                                                |
|----------------------------------------------------------------------------------------------------------------|
|                                                                                                                |  |  |  |  |  |  |  |
| (in millions)                                                                                                  | 2012 |   | 2011 |
| Manufacturing operations                                                                                       |   |   |   |
| Senior Secured Term Loan Credit Facility, due 2014, net of unamortized discount of $9                          | $ | 991 |  |   | $ | — |  |
| 8.25% Senior Notes, due 2021, net of unamortized discount of $28 and $33, respectively                         | 872 |  |   | 967 |  |
| 3.0% Senior Subordinated Convertible Notes, due 2014, net of unamortized discount of $50 and $73, respectively | 520 |  |   | 497 |  |
| Debt of majority-owned dealerships                                                                             | 60 |  |   | 94 |  |
| Financing arrangements and capital lease obligations                                                           | 140 |  |   | 118 |  |
| Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040                                                      | 225 |  |   | 225 |  |
| Promissory Note                                                                                                | 30 |  |   | 40 |  |
| Other                                                                                                          | 67 |  |   | 39 |  |
| Total manufacturing operations debt                                                                            | 2,905 |  |   | 1,980 |  |
| Less: Current portion                                                                                          | 172 |  |   | 99 |  |
| Net long-term manufacturing operations debt                                                                    | $ | 2,733 |  |   | $ | 1,881 |  |
| Financial Services operations:                                                                                 |   |   |   |
| Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2019          | $ | 994 |  |   | $ | 1,664 |  |
| Bank revolvers, at fixed and variable rates, due dates from 2013 through 2019                                  | 763 |  |   | 1,072 |  |
| Commercial paper, at variable rates, due serially through 2013                                                 | 31 |  |   | 70 |  |
| Borrowings secured by operating and finance leases, at various rates, due serially through 2017                | 78 |  |   | 70 |  |
| Total financial services operations debt                                                                       | 1,866 |  |   | 2,876 |  |
| Less: Current portion                                                                                          | 1,033 |  |   | 1,280 |  |
| Net long-term financial services operations debt                                                               | $ | 833 |  |   | $ | 1,596 |  |

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |  |  |  |  |
|                                       | ManufacturingOperations |   | Financial ServicesOperations |   | Total   |
| (in millions)                              |   |   |   |   |   |
| 2013                                       | $ | 176 |  |   | $ | 1,033 |  |   | $ | 1,209 |  |
| 2014                                       | 1,609 |  |   | 152 |  |   | 1,761 |  |
| 2015                                       | 26 |  |   | 277 |  |   | 303 |  |
| 2016                                       | 11 |  |   | 79 |  |   | 90 |  |
| 2017                                       | 10 |  |   | 253 |  |   | 263 |  |
| Thereafter                                 | 1,160 |  |   | 72 |  |   | 1,232 |  |
| Total debt, including unamortized discount | 2,992 |  |   | 1,866 |  |   | 4,858 |  |
| Less: Unamortized discount                 | 87 |  |   | — |  |   | 87 |  |
| Net debt                                   | $ | 2,905 |  |   | $ | 1,866 |  |   | $ | 4,771 |  |

----

Table of Contents

|                                                                            |
|----------------------------------------------------------------------------|
|                                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                       | Pension Benefits |   | Health and LifeInsurance Benefits |
| (in millions)                                                              | 2012 |   | 2011 |   | 2012 |   | 2011 |
| Change in benefit obligations                                              |   |   |   |   |   |   |   |
| Benefit obligations at beginning of year                                   | $ | 4,171 |  |   | $ | 4,005 |  |   | $ | 2,000 |  |   | $ | 1,162 |  |
| Amendments and administrative changes                                      | — |  |   | — |  |   | — |  |   | 302 |  |
| Service cost                                                               | 17 |  |   | 17 |  |   | 7 |  |   | 8 |  |
| Interest on obligations                                                    | 169 |  |   | 189 |  |   | 83 |  |   | 56 |  |
| Actuarial loss (gain)                                                      | 462 |  |   | 242 |  |   | (72 | ) |   | 547 |  |
| Curtailments                                                               | 4 |  |   | (11 | ) |   | — |  |   | 11 |  |
| Contractual termination benefits                                           | 2 |  |   | 38 |  |   | (3 | ) |   | 6 |  |
| Retrospective payments due to retirees                                     | — |  |   | — |  |   | (2 | ) |   | 15 |  |
| Currency translation                                                       | (5 | ) |   | 26 |  |   | — |  |   | — |  |
| Plan participants' contributions                                           | — |  |   | — |  |   | 20 |  |   | 34 |  |
| Subsidy receipts                                                           | — |  |   | — |  |   | 20 |  |   | — |  |
| Benefits paid                                                              | (328 | ) |   | (335 | ) |   | (187 | ) |   | (141 | ) |
| Benefit obligations at end of year                                         | $ | 4,492 |  |   | $ | 4,171 |  |   | $ | 1,866 |  |   | $ | 2,000 |  |
| Change in plan assets                                                      |   |   |   |  |   |   |   |   |
| Fair value of plan assets at beginning of year                             | $ | 2,392 |  |   | $ | 2,479 |  |   | $ | 463 |  |   | $ | 509 |  |
| Actual return on plan assets                                               | 186 |  |   | 75 |  |   | 27 |  |   | 22 |  |
| Currency translation                                                       | (9 | ) |   | 25 |  |   | — |  |   | — |  |
| Employer contributions                                                     | 157 |  |   | 134 |  |   | 19 |  |   | 2 |  |
| Benefits paid                                                              | (315 | ) |   | (321 | ) |   | (72 | ) |   | (70 | ) |
| Fair value of plan assets at end of year                                   | $ | 2,411 |  |   | $ | 2,392 |  |   | $ | 437 |  |   | $ | 463 |  |
| Funded status at year end                                                  | $ | (2,081 | ) |   | $ | (1,779 | ) |   | $ | (1,429 | ) |   | $ | (1,537 | ) |
|                                                                       |   |   |   |   |   |   |   |
| Amounts recognized in our Consolidated Balance Sheets consist of:          |   |   |   |  |   |   |   |   |
| Current liability                                                          | $ | (14 | ) |   | $ | (13 | ) |   | $ | (92 | ) |   | $ | (93 | ) |
| Noncurrent liability                                                       | (2,067 | ) |   | (1,766 | ) |   | (1,337 | ) |   | (1,444 | ) |
| Net liability recognized                                                   | $ | (2,081 | ) |   | $ | (1,779 | ) |   | $ | (1,429 | ) |   | $ | (1,537 | ) |
|                                                                       |   |   |   |   |   |   |   |
| Amounts recognized in our accumulated other comprehensive loss consist of: |   |   |  |   |   |   |   |
| Net actuarial loss                                                         | $ | 2,529 |  |   | $ | 2,170 |  |   | $ | 558 |  |   | $ | 654 |  |
| Net prior service cost (benefit)                                           | 3 |  |   | 5 |  |   | (13 | ) |   | (21 | ) |
| Net amount recognized                                                      | $ | 2,532 |  |   | $ | 2,175 |  |   | $ | 545 |  |   | $ | 633 |  |

----

Table of Contents

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |
| (in millions)                   | 2012 |   | 2011 |
| Projected benefit obligations   | $ | 4,492 |  |   | $ | 4,171 |  |
| Accumulated benefit obligations | 4,431 |  |   | 4,113 |  |
| Fair value of plan assets       | 2,411 |  |   | 2,392 |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                         | 2012 |   | 2011 |   | 2010 |
| Pension expense                       | $ | 122 |  |   | $ | 139 |  |   | $ | 142 |  |
| Health and life insurance expense     | 81 |  |   | 30 |  |   | 37 |  |
| Total postretirement benefits expense | $ | 203 |  |   | $ | 169 |  |   | $ | 179 |  |

----

Table of Contents

|                                                                                                      |
|------------------------------------------------------------------------------------------------------|
|                                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                 | PensionBenefits |   | Health andLife InsuranceBenefits |
| (in millions)                                                                                        | 2012 |   | 2011 |   | 2010 |   | 2012 |   | 2011 |   | 2010 |
| Service cost for benefits earned during the period                                                   | $ | 17 |  |   | $ | 17 |  |   | 18 |  |   | $ | 7 |  |   | $ | 8 |  |   | $ | 8 |  |
| Interest on obligation                                                                               | 169 |  |   | 189 |  |   | 209 |  |   | 83 |  |   | 56 |  |   | 81 |  |
| Amortization of cumulative loss                                                                      | 112 |  |   | 97 |  |   | 98 |  |   | 38 |  |   | 4 |  |   | 8 |  |
| Amortization of prior service cost (benefit)                                                         | 1 |  |   | 1 |  |   | 1 |  |   | (5 | ) |   | (29 | ) |   | (20 | ) |
| Curtailments                                                                                         | 5 |  |   | 2 |  |   | 1 |  |   | (3 | ) |   | 11 |  |   | 2 |  |
| Contractual termination benefits                                                                     | 2 |  |   | 38 |  |   | 1 |  |   | (2 | ) |   | 6 |  |   | (2 | ) |
| Retrospective payments to retirees                                                                   | — |  |   | — |  |   | — |  |   | (2 | ) |   | 15 |  |   | — |  |
| Premiums on pension insurance                                                                        | 8 |  |   | 6 |  |   | 7 |  |   | — |  |   | — |  |   | — |  |
| Expected return on assets                                                                            | (192 | ) |   | (211 | ) |   | (193 | ) |   | (35 | ) |   | (41 | ) |   | (40 | ) |
| Net postretirement benefits expense                                                                  | $ | 122 |  |   | $ | 139 |  |   | $ | 142 |  |   | $ | 81 |  |   | $ | 30 |  |   | $ | 37 |  |
| Other Changes in plan assets and benefit obligations recognized in other comprehensive loss (income) |   |   |   |   |   |   |   |   |   |   |   |
| Actuarial net loss (gain)                                                                            | $ | 469 |  |   | $ | 374 |  |   | $ | 77 |  |   | $ | (58 | ) |   | $ | 566 |  |   | $ | (127 | ) |
| Amortization of cumulative loss                                                                      | (112 | ) |   | (97 | ) |   | (98 | ) |   | (38 | ) |   | (4 | ) |   | (8 | ) |
| Prior service cost (benefit)                                                                         | (1 | ) |   | — |  |   | 4 |  |   | — |  |   | 302 |  |   | (341 | ) |
| Amortization of prior service benefit (cost)                                                         | (1 | ) |   | (1 | ) |   | (1 | ) |   | 5 |  |   | 29 |  |   | 20 |  |
| Curtailments                                                                                         | — |  |   | (13 | ) |   | (3 | ) |   | 3 |  |   | — |  |   | — |  |
| Currency translation                                                                                 | 2 |  |   | 4 |  |   | 4 |  |   | — |  |   | — |  |   | — |  |
| Total recognized in other comprehensive loss (income)                                                | $ | 357 |  |   | $ | 267 |  |   | $ | (17 | ) |   | $ | (88 | ) |   | $ | 893 |  |   | $ | (456 | ) |
| Total net postretirement benefits expense and other comprehensive loss (income)                      | $ | 479 |  |   | $ | 406 |  |   | $ | 125 |  |   | $ | (7 | ) |   | $ | 923 |  |   | $ | (419 | ) |

----

Table of Contents

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |
| (in millions)                                | PensionBenefits |   | Health and LifeInsurance Benefits |
| Amortization of prior service cost (benefit) | $ | 1 |  |   | $ | (4 | ) |
| Amortization of cumulative losses            | 127 |  |   | 29 |  |

|                                                                                    |
|------------------------------------------------------------------------------------|
|                                                                                    |  |  |  |  |  |  |  |  |  |  |  |
|                                                                               | Pension Benefits |   | Health and Life                  Insurance Benefits |
|                                                                               | 2012 |   | 2011 |   | 2012 |   | 2011 |
| Discount rate used to determine present value of benefit obligation at end of year | 3.2 | % |   | 4.2 | % |   | 3.4 | % |   | 4.2 | % |
| Expected rate of increase in future compensation levels                            | 3.5 | % |   | 3.5 | % |   | — |  |   | — |  |

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                    | PensionBenefits |   | Health and Life                          Insurance Benefits |
|                                                    | 2012 |   | 2011 |   | 2010 |   | 2012 |   | 2011 |   | 2010 |
| Discount rate(A)                                        | 4.1 | % |   | 4.8 | % |   | 5.4 | % |   | 4.2 | % |   | 4.6 | % |   | 5.6 | % |
| Expected long-term rate of return on plan assets        | 8.3 | % |   | 8.5 | % |   | 8.5 | % |   | 8.3 | % |   | 8.5 | % |   | 8.5 | % |
| Expected rate of increase in future compensation levels | 3.5 | % |   | 3.5 | % |   | 3.5 | % |   | — |  |   | — |  |   | — |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | In 2012 for pension benefits, the weighted average discount rate used to compute the expense for the period of November 1, 2011  through July 31, 2012 was 4.2%.  Due to plan remeasurements at July 31, 2012 at a rate of 3.3%, the weighted average discount rate for the full fiscal year 2012 was 4.1%. In 2010 for health and life insurance benefits, the weighted average discount rate used to compute the expense for the period of November 1, 2009 through March 31, 2010 was 5.5%. Due to a plan remeasurement at March 31, 2010 at a rate of 5.6%, the weighted average discount rate for the full fiscal year 2010 was 5.6%. |

----

Table of Contents

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |
| (in millions)                                           | One-PercentagePoint Increase |   | One-PercentagePoint Decrease |
| Effect on total of service and interest cost components | $ | 10 |  |   | $ | (10 | ) |
| Effect on postretirement benefit obligation             | 215 |  |   | (179 | ) |

----

Table of Contents

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                        | 2012 |   | 2011 |
| (in millions)               | Level 1 |   | Level 2 |   | Level 3 |   | Total |   | Level 1 |   | Level 2 |   | Level 3 |   | Total |
| Asset Category              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents   | $ | 85 |  |   | $ | — |  |   | $ | — |  |   | $ | 85 |  |   | $ | 82 |  |   | $ | — |  |   | $ | — |  |   | $ | 82 |  |
| Equity                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Large Cap              | 463 |  |   | — |  |   | — |  |   | 463 |  |   | 492 |  |   | — |  |   | — |  |   | 492 |  |
| U.S. Small-Mid Cap          | 271 |  |   | — |  |   | — |  |   | 271 |  |   | 242 |  |   | — |  |   | — |  |   | 242 |  |
| Canadian                    | 108 |  |   | — |  |   | — |  |   | 108 |  |   | 103 |  |   | — |  |   | — |  |   | 103 |  |
| International               | 186 |  |   | — |  |   | — |  |   | 186 |  |   | 179 |  |   | — |  |   | — |  |   | 179 |  |
| Emerging Markets            | 101 |  |   | — |  |   | — |  |   | 101 |  |   | 105 |  |   | — |  |   | — |  |   | 105 |  |
| Equity derivative           | — |  |   | — |  |   | 4 |  |   | 4 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Fixed Income                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate Bonds             | — |  |   | 136 |  |   | — |  |   | 136 |  |   | — |  |   | 466 |  |   | — |  |   | 466 |  |
| Government Bonds            | — |  |   | 547 |  |   | — |  |   | 547 |  |   | — |  |   | 225 |  |   | — |  |   | 225 |  |
| Asset Backed Securities     | — |  |   | 9 |  |   | — |  |   | 9 |  |   | — |  |   | 19 |  |   | — |  |   | 19 |  |
| Mortgage Backed Securities  | — |  |   | 1 |  |   | — |  |   | 1 |  |   | — |  |   | 8 |  |   | — |  |   | 8 |  |
| Fixed income derivative     | — |  |   | — |  |   | 19 |  |   | 19 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Collective Trusts and Other |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common and Preferred Stock  | — |  |   | 244 |  |   | — |  |   | 244 |  |   | — |  |   | 231 |  |   | — |  |   | 231 |  |
| Commodities                 | — |  |   | 66 |  |   | — |  |   | 66 |  |   | — |  |   | 76 |  |   | — |  |   | 76 |  |
| Hedge Funds                 | — |  |   | — |  |   | 92 |  |   | 92 |  |   | — |  |   | — |  |   | 99 |  |   | 99 |  |
| Private Equity              | — |  |   | — |  |   | 92 |  |   | 92 |  |   | — |  |   | — |  |   | 75 |  |   | 75 |  |
| Mutual Funds                | 36 |  |   | — |  |   | — |  |   | 36 |  |   | 34 |  |   | — |  |   | — |  |   | 34 |  |
| Real Estate                 | — |  |   | — |  |   | 1 |  |   | 1 |  |   | — |  |   | — |  |   | 1 |  |   | 1 |  |
| Total(A)                    | $ | 1,250 |  |   | $ | 1,003 |  |   | $ | 208 |  |   | $ | 2,461 |  |   | $ | 1,237 |  |   | $ | 1,025 |  |   | $ | 175 |  |   | $ | 2,437 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | For both October 31, 2012 and 2011, the totals exclude $8 million of receivables, which are included in the change in plan assets table. In addition, the table above includes the fair value of Canadian pension assets translated at the exchange rates as of October 31, 2012 and 2011, respectively, while the change in plan asset table includes the fair value of Canadian pension assets translated at historical foreign currency rates. |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                         | Hedge Funds |   | Private Equity |   | Real Estate |   | Insurance Contract |   | Fixed Income Derivative |   | Equity Derivatives |
| Balance at November 1, 2010      | $ | 102 |  |   | $ | 57 |  |   | $ | 1 |  |   | $ | 120 |  |   | $ | — |  |   | $ | — |  |
| Unrealized gains (losses)             | (21 | ) |   | 15 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Realized gains                        | 19 |  |   | — |  |   | — |  |   | 1 |  |   | — |  |   | — |  |
| Purchases, issuances, and settlements | (1 | ) |   | 3 |  |   | — |  |   | (121 | ) |   | — |  |   | — |  |
| Balance at October 31, 2011      | $ | 99 |  |   | $ | 75 |  |   | $ | 1 |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |
| Unrealized gains (losses)             | (1 | ) |   | 10 |  |   | — |  |   | — |  |   | 19 |  |   | 4 |  |
| Realized gains                        | 4 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Purchases, issuances, and settlements | (10 | ) |   | 7 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Balance at October 31, 2012      | $ | 92 |  |   | $ | 92 |  |   | $ | 1 |  |   | $ | — |  |   | $ | 19 |  |   | $ | 4 |  |

----

Table of Contents

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                        | 2012 |   | 2011 |
| (in millions)               | Level 1 |   | Level 2 |   | Level 3 |   | Total |   | Level 1 |   | Level 2 |   | Level 3 |   | Total |
| Asset Category              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents   | $ | 31 |  |   | $ | — |  |   | $ | — |  |   | $ | 31 |  |   | $ | 24 |  |   | $ | — |  |   | $ | — |  |   | $ | 24 |  |
| Equity                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Large Cap              | 82 |  |   | — |  |   | — |  |   | 82 |  |   | 100 |  |   | — |  |   | — |  |   | 100 |  |
| U.S. Small-Mid Cap          | 64 |  |   | — |  |   | — |  |   | 64 |  |   | 59 |  |   | — |  |   | — |  |   | 59 |  |
| Emerging Markets            | 22 |  |   | — |  |   | — |  |   | 22 |  |   | 26 |  |   | — |  |   | — |  |   | 26 |  |
| International               | 63 |  |   | — |  |   | — |  |   | 63 |  |   | 68 |  |   | — |  |   | — |  |   | 68 |  |
| Fixed Income                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate Bonds             | — |  |   | 49 |  |   | — |  |   | 49 |  |   | — |  |   | 77 |  |   | — |  |   | 77 |  |
| Government Bonds            | — |  |   | 66 |  |   | — |  |   | 66 |  |   | — |  |   | 42 |  |   | — |  |   | 42 |  |
| Asset Backed Securities     | — |  |   | 4 |  |   | — |  |   | 4 |  |   | — |  |   | 4 |  |   | — |  |   | 4 |  |
| Mortgage Backed Securities  | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 1 |  |   | — |  |   | 1 |  |
| Collective Trusts and Other |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodities                 | — |  |   | 13 |  |   | — |  |   | 13 |  |   | — |  |   | 17 |  |   | — |  |   | 17 |  |
| Hedge Funds                 | — |  |   | — |  |   | 19 |  |   | 19 |  |   | — |  |   | — |  |   | 25 |  |   | 25 |  |
| Private Equity              | — |  |   | — |  |   | 23 |  |   | 23 |  |   | — |  |   | — |  |   | 19 |  |   | 19 |  |
| Total(A)                    | $ | 262 |  |   | $ | 132 |  |   | $ | 42 |  |   | $ | 436 |  |   | $ | 277 |  |   | $ | 141 |  |   | $ | 44 |  |   | $ | 462 |  |

|     |                                                                                                                                                  |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | For both October 31, 2012 and 2011, the totals excludes $1 million of receivables, which are included in the change in plan asset table. |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |
| (in millions)                         | Hedge Funds |   | Private Equity |
| Balance at November 1, 2010      | $ | 25 |  |   | $ | 14 |  |
| Unrealized gains (losses)             | (4 | ) |   | 4 |  |
| Purchases, issuances, and settlements | 4 |  |   | 1 |  |
| Balance at October 31, 2011      | $ | 25 |  |   | $ | 19 |  |
| Unrealized gains (losses)             | (2 | ) |   | 2 |  |
| Realized gains                        | 2 |  |   | — |  |
| Purchases, issuances, and settlements | (6 | ) |   | 2 |  |
| Balance at October 31, 2012      | $ | 19 |  |   | $ | 23 |  |

----

Table of Contents

|                   |
|-------------------|
|                   |  |  |  |  |  |  |  |
| (in millions)     | Pension Benefit Payments |   | Other Postretirement Benefit Payments(A) |
| 2013              | $ | 326 |  |   | $ | 135 |  |
| 2014              | 318 |  |   | 132 |  |
| 2015              | 308 |  |   | 134 |  |
| 2016              | 301 |  |   | 127 |  |
| 2017              | 294 |  |   | 121 |  |
| 2018 through 2022 | 1,362 |  |   | 543 |  |

|     |                                                                                               |
|-----|-----------------------------------------------------------------------------------------------|
| (A) | Payments are net of expected participant contributions and expected federal subsidy receipts. |

----

Table of Contents

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                     | 2012 |   | 2011 |   | 2010 |
| Domestic                          | $ | (964 | ) |   | $ | 247 |  |   | $ | 166 |  |
| Foreign                           | (218 | ) |   | 73 |  |   | 124 |  |
| Income (loss) before income taxes | $ | (1,182 | ) |   | $ | 320 |  |   | $ | 290 |  |

|                                    |
|------------------------------------|
|                                    |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                      | 2012 |   | 2011 |   | 2010 |
| Current:                           |   |   |   |   |   |
| Federal                            | $ | (2 | ) |   | $ | (3 | ) |   | $ | 30 |  |
| State and local                    | (11 | ) |   | 1 |  |   | (4 | ) |
| Foreign                            | 4 |  |   | (47 | ) |   | (33 | ) |
| Total current expense              | (9 | ) |   | (49 | ) |   | (7 | ) |
| Deferred:                          |   |   |   |   |   |
| Federal                            | (1,841 | ) |   | 1,423 |  |   | — |  |
| State and local                    | (137 | ) |   | 106 |  |   | — |  |
| Foreign                            | 207 |  |   | (22 | ) |   | (16 | ) |
| Total deferred benefit (expense)   | (1,771 | ) |   | 1,507 |  |   | (16 | ) |
| Total income tax benefit (expense) | $ | (1,780 | ) |   | $ | 1,458 |  |   | $ | (23 | ) |

|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                     | 2012 |   | 2011 |   | 2010 |
| Federal income tax benefit (expense) at the statutory rate of 35% | $ | 414 |  |   | $ | (112 | ) |   | $ | (101 | ) |
| State income taxes, net of federal benefit                        | (6 | ) |   | (6 | ) |   | (3 | ) |
| Alternative minimum taxes                                         | — |  |   | — |  |   | 29 |  |
| Credits and incentives                                            | 10 |  |   | 27 |  |   | 2 |  |
| Adjustments to valuation allowances                               | (2,232 | ) |   | 1,499 |  |   | 56 |  |
| Medicare subsidies                                                | — |  |   | — |  |   | 6 |  |
| Foreign operations                                                | (17 | ) |   | (19 | ) |   | (11 | ) |
| Adjustments to uncertain tax positions                            | 11 |  |   | 42 |  |   | 5 |  |
| Subpart F income                                                  | — |  |   | (1 | ) |   | (17 | ) |
| Non-controlling interest adjustment                               | 17 |  |   | 19 |  |   | 16 |  |
| Other                                                             | 23 |  |   | 9 |  |   | (5 | ) |
| Recorded income tax benefit (expense)                             | $ | (1,780 | ) |   | $ | 1,458 |  |   | $ | (23 | ) |

----

Table of Contents

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |
| (in millions)                             | 2012 |   | 2011 |
| Deferred tax assets attributable to:      |   |   |   |
| Employee benefits liabilities             | $ | 1,419 |  |   | $ | 1,369 |  |
| Net operating loss ("NOL") carry forwards | 583 |  |   | 273 |  |
| Product liability and warranty accruals   | 457 |  |   | 262 |  |
| Research and development                  | 49 |  |   | 74 |  |
| Tax credit carry forwards                 | 218 |  |   | 208 |  |
| Other                                     | 285 |  |   | 294 |  |
| Gross deferred tax assets                 | 3,011 |  |   | 2,480 |  |
| Less: Valuation allowances                | 2,664 |  |   | 344 |  |
| Net deferred tax assets                   | $ | 347 |  |   | $ | 2,136 |  |
| Deferred tax liabilities attributable to: |   |   |   |
| Goodwill and intangibles assets           | $ | (77 | ) |   | $ | (107 | ) |
| Other                                     | (54 | ) |   | (39 | ) |
| Total deferred tax liabilities            | $ | (131 | ) |   | $ | (146 | ) |

----

Table of Contents

|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |
| (in millions)                                                 | 2012 |
| Liability for uncertain tax positions at November 1           | $ | 82 |  |
| Increase as a result of positions taken in prior periods      | 12 |  |
| Increase as a result of positions taken in the current period | 2 |  |
| Settlements                                                   | (46 | ) |
| Lapse of statute of limitations                               | (1 | ) |
| Liability for uncertain tax positions at October 31      | $ | 49 |  |

----

Table of Contents

|         |                                                                                              |
|---------|----------------------------------------------------------------------------------------------|
| • | Level 1—based upon quoted prices for identical instruments in active markets, |

|         |                                                                                                                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Level 2—based upon quoted prices for similar instruments, prices for identical or similar instruments in markets that are not active, or model-derived valuations, all of whose significant inputs are observable, and |

|         |                                                                            |
|---------|----------------------------------------------------------------------------|
| • | Level 3—based upon one or more significant unobservable inputs. |

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                              | As of October 31, 2012 |
| (in millions)                     | Level 1 |   | Level 2 |   | Level 3 |   | Total |
| Assets                            |   |   |   |   |   |   |   |
| Marketable securities:            |   |   |   |   |   |   |   |
| U.S. Treasury bills               | $ | 420 |  |   | $ | — |  |   | $ | — |  |   | $ | 420 |  |
| Other                             | 46 |  |   | — |  |   | — |  |   | 46 |  |
| Total assets                      | $ | 466 |  |   | $ | — |  |   | $ | — |  |   | $ | 466 |  |
| Liabilities                       |   |   |   |   |   |   |   |
| Derivative financial instruments: |   |   |   |   |   |   |   |
| Commodity contracts               | $ | — |  |   | $ | 4 |  |   | $ | — |  |   | $ | 4 |  |
| Guarantees                        | — |  |   | — |  |   | 7 |  |   | 7 |  |
| Total liabilities                 | $ | — |  |   | $ | 4 |  |   | $ | 7 |  |   | $ | 11 |  |

----

Table of Contents

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     | As of October 31, 2011 |
| (in millions)                            | Level 1 |   | Level 2 |   | Level 3 |   | Total |
| Assets                                   |   |   |   |   |   |   |   |
| Marketable securities:                   |   |   |   |   |   |   |   |
| U.S. Treasury bills                      | $ | 283 |  |   | $ | — |  |   | $ | — |  |   | $ | 283 |  |
| Other U.S. and non-U.S. government bonds | 415 |  |   | — |  |   | — |  |   | 415 |  |
| Other                                    | 20 |  |   | — |  |   | — |  |   | 20 |  |
| Derivative financial instruments:        |   |   |   |   |   |   |   |
| Commodity contracts                      | — |  |   | — |  |   | 1 |  |   | 1 |  |
| Foreign currency contracts               | — |  |   | 3 |  |   | — |  |   | 3 |  |
| Total assets                             | $ | 718 |  |   | $ | 3 |  |   | $ | 1 |  |   | $ | 722 |  |
| Liabilities                              |   |   |   |   |   |   |   |
| Derivative financial instruments:        |   |   |   |   |   |   |   |
| Commodity contracts                      | $ | — |  |   | $ | 3 |  |   | $ | 3 |  |   | $ | 6 |  |
| Foreign currency swaps                   | — |  |   | 4 |  |   | — |  |   | 4 |  |
| Guarantees                               | — |  |   | — |  |   | 6 |  |   | 6 |  |
| Total liabilities                        | $ | — |  |   | $ | 7 |  |   | $ | 9 |  |   | $ | 16 |  |

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                            | 2012 |   | 2011 |
| (in millions)                                                   | Guarantees |   | Retained interests |   | Commodity contracts |   | Guarantees |   | Retained interests |   | Commodity contracts |
| Balance at November 1                                           | $ | (6 | ) |   | $ | — |  |   | $ | (2 | ) |   | $ | — |  |   | $ | 53 |  |   | $ | 2 |  |
| Total gains (realized/unrealized) included in earnings (A) | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 2 |  |
| Transfers out of Level 3                                        | — |  |   | — |  |   | 2 |  |   | — |  |   | — |  |   | — |  |
| Issuances                                                       | (1 | ) |   | — |  |   | — |  |   | (6 | ) |   | — |  |   | — |  |
| Settlements                                                     | — |  |   | — |  |   | — |  |   | — |  |   | (53 | ) |   | (6 | ) |
| Balance at October 31                                           | $ | (7 | ) |   | $ | — |  |   | $ | — |  |   | $ | (6 | ) |   | $ | — |  |   | $ | (2 | ) |
| Change in unrealized gains on assets and liabilities still held | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | (2 | ) |

|     |                                                                       |
|-----|-----------------------------------------------------------------------|
| (A) | For commodity contracts, gains are included in Cost of products sold. |

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |
|                         | Level 2 |
| (in millions)                | 2012 |   | 2011 |
| Finance receivables (A) | $ | 5 |  |   | $ | 5 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Certain impaired finance receivables are measured at fair value on a nonrecurring basis. An impairment charge is recorded for the amount by which the carrying value of the receivables exceeds the fair value of the underlying collateral, net of remarketing costs. As of October 31, 2012, impaired receivables with a carrying amount of $14 million had specific loss reserves of $9 million and a fair value of $5 million. As of October 31, 2011, impaired receivables with a carrying amount of $15 million had specific loss reserves of $10 million and a fair value of $5 million. Fair values of the underlying collateral are determined by reference to dealer vehicle value publications adjusted for certain market factors. |

----

Table of Contents

|                                                                                                 |
|-------------------------------------------------------------------------------------------------|
|                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                            | As of October 31, 2012 |
|                                                                                            | Estimated Fair Value |   | Carrying Value |
| (in millions)                                                                                   | Level 1 |   | Level 2 |   | Level 3 |   | Total |   |
| Assets                                                                                          |   |   |   |   |   |   |   |   |   |
| Retail notes                                                                                    | $ | — |  |   | $ | — |  |   | $ | 613 |  |   | $ | 613 |  |   | $ | 618 |  |
| Notes receivable                                                                                | — |  |   | — |  |   | 27 |  |   | 27 |  |   | 27 |  |
| Liabilities                                                                                     |   |   |   |   |   |   |   |   |   |
| Debt:                                                                                           |   |   |   |   |   |   |   |   |   |
| Manufacturing operations                                                                        |   |   |   |   |   |   |   |   |   |
| Senior Secured Term Loan Credit Facility, due 2014                                              | — |  |   | — |  |   | 1,047 |  |   | 1,047 |  |   | 991 |  |
| 8.25% Senior Notes, due 2021                                                                    | 899 |  |   | — |  |   | — |  |   | 899 |  |   | 872 |  |
| 3.0% Senior Subordinated Convertible Notes, due 2014(A)                                    | 514 |  |   | — |  |   | — |  |   | 514 |  |   | 520 |  |
| Debt of majority-owned dealerships                                                              | — |  |   | — |  |   | 60 |  |   | 60 |  |   | 60 |  |
| Financing arrangements                                                                          | — |  |   | — |  |   | 102 |  |   | 102 |  |   | 136 |  |
| Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040                                  | — |  |   | 234 |  |   | — |  |   | 234 |  |   | 225 |  |
| Promissory Note                                                                                 | — |  |   | — |  |   | 29 |  |   | 29 |  |   | 30 |  |
| Other                                                                                           | — |  |   | — |  |   | 67 |  |   | 67 |  |   | 67 |  |
| Financial Services operations                                                                   |   |   |   |   |   |   |   |   |   |
| Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2019      | — |  |   | — |  |   | 994 |  |   | 994 |  |   | 994 |  |
| Bank revolvers, at fixed and variable rates, due dates from 2013 through 2019                   | — |  |   | — |  |   | 734 |  |   | 734 |  |   | 763 |  |
| Commercial paper, at variable rates, due serially through 2013                                  | 31 |  |   | — |  |   | — |  |   | 31 |  |   | 31 |  |
| Borrowings secured by operating and finance leases, at various rates, due serially through 2017 | — |  |   | — |  |   | 79 |  |   | 79 |  |   | 78 |  |

----

Table of Contents

|                                                                                                 |
|-------------------------------------------------------------------------------------------------|
|                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                            | As of October 31, 2011 |
|                                                                                            | Estimated Fair Value |   | Carrying Value |
| (in millions)                                                                                   | Level 1 |   | Level 2 |   | Level 3 |   | Total |   |
| Assets                                                                                          |   |   |   |   |   |   |   |   |   |
| Retail notes                                                                                    | $ | — |  |   | $ | — |  |   | $ | 954 |  |   | $ | 954 |  |   | $ | 958 |  |
| Notes receivable                                                                                | — |  |   | — |  |   | 47 |  |   | 47 |  |   | 47 |  |
| Liabilities                                                                                     |   |   |   |   |   |   |   |   |   |
| Debt:                                                                                           |   |   |   |   |   |   |   |   |   |
| Manufacturing operations                                                                        |   |   |   |   |   |   |   |   |   |
| 8.25% Senior Notes, due 2021                                                                    | 1,131 |  |   | — |  |   | — |  |   | 1,131 |  |   | 967 |  |
| 3.0% Senior Subordinated Convertible Notes, due 2014(A)                                    | 633 |  |   | — |  |   | — |  |   | 633 |  |   | 497 |  |
| Debt of majority-owned dealerships                                                              | — |  |   | — |  |   | 88 |  |   | 88 |  |   | 94 |  |
| Financing arrangements                                                                          | — |  |   | — |  |   | 112 |  |   | 112 |  |   | 114 |  |
| Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040                                  | — |  |   | 234 |  |   | — |  |   | 234 |  |   | 225 |  |
| Promissory Note                                                                                 | — |  |   | — |  |   | 39 |  |   | 39 |  |   | 40 |  |
| Other                                                                                           | — |  |   | — |  |   | 26 |  |   | 26 |  |   | 39 |  |
| Financial Services operations                                                                   |   |   |   |   |   |   |   |   |   |
| Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2018      | — |  |   | — |  |   | 1,695 |  |   | 1,695 |  |   | 1,664 |  |
| Bank revolvers, at fixed and variable rates, due dates from 2013 through 2017                   | — |  |   | — |  |   | 1,091 |  |   | 1,091 |  |   | 1,072 |  |
| Commercial paper, at variable rates, due serially through 2012                                  | 70 |  |   | — |  |   | — |  |   | 70 |  |   | 70 |  |
| Borrowings secured by operating and finance leases, at various rates, due serially through 2017 | — |  |   | — |  |   | 70 |  |   | 70 |  |   | 70 |  |

|     |                                                                                                                                                                                                                                                                            |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | The carrying value represents the consolidated financial statement amount of the debt which excludes the allocation of the conversion feature to equity, while the fair value is based on quoted market prices for the convertible note which includes the equity feature. |

----

Table of Contents

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |
|                       | As of October 31, 2012 |
|                       | Asset Derivatives |   | Liability Derivatives |
| (in millions)              | Location inConsolidated Balance Sheets |   | Fair Value |   | Location inConsolidated Balance Sheets |   | Fair Value |
| Commodity contracts        | Other current assets |   | $ | — |  |   | Other current liabilities |   | $ | 3 |  |
| Commodity contracts        | Other noncurrent assets |   | — |  |   | Other noncurrent liabilities |   | 2 |  |
| Total fair value           |   | $ | — |  |   |   |   | $ | 5 |  |
|                       |   |   |   |   |   |   |   |
|                       | As of October 31, 2011 |
|                       | Asset Derivatives |   | Liability Derivatives |
| (in millions)              | Location inConsolidated Balance Sheets |   | Fair Value |   | Location inConsolidated Balance Sheets |   | Fair Value |
| Foreign currency contracts | Other current assets |   | $ | 3 |  |   | Other current liabilities |   | $ | — |  |
| Cross currency swaps       | Other current assets |   | — |  |   | Other current liabilities |   | 4 |  |
| Commodity contracts        | Other current assets |   | 1 |  |   | Other current liabilities |   | 6 |  |
| Total fair value           |   | $ | 4 |  |   |   |   | $ | 10 |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  | Location inConsolidated Statements of Operations |   | Amount of Loss(Gain) Recognized |
| (in millions)                         | 2012 |   | 2011 |   | 2010 |
| Interest rate swaps                   | Interest expense |   | $ | — |  |   | $ | — |  |   | $ | 5 |  |
| Interest rate caps purchased          | Interest expense |   | — |  |   | — |  |   | 3 |  |
| Interest rate caps sold               | Interest expense |   | — |  |   | — |  |   | (3 | ) |
| Cross currency swaps                  | Other expense (income), net |   | (1 | ) |   | 8 |  |   | — |  |
| Foreign currency contracts            | Other expense (income), net |   | 4 |  |   | (4 | ) |   | (8 | ) |
| Commodity forward contracts | Costs of products sold |   | 8 |  |   | (14 | ) |   | (1 | ) |
| Total loss (gain)                     |   | $ | 11 |  |   | $ | (10 | ) |   | $ | (4 | ) |

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Our Truck segment manufactures and distributes a full line of Class 4 through 8 trucks, buses, and military vehicles under the International and IC Bus ("IC") brands. Our Truck segment also produces RVs, including non-motorized towables, under the Monaco family of brands, and concrete mixers under the Continental Mixers brand. In an effort to strengthen and maintain our dealer network, this segment occasionally acquires and operates dealer locations for the purpose of transitioning ownership. During 2012, we idled our WCC business. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Our Engine segment designs and manufactures diesel engines for use globally, in Class 3 through 8 vehicles, as well as off-road applications. In North America, these engines primarily go into our Class 6 and 7 medium trucks and buses and Class 8 heavy trucks, and are sold to OEMs. In Brazil, our Engine segment produces diesel engines, primarily under the MWM brand, as well as under contract manufacturing arrangements, for sale to OEMs in South America. In all other areas of the world, including North America, engines are sold under the MaxxForce brand name. To control cost and technology, our Engine segment has expanded its operations to include Pure Power Technologies ("PPT"), a components company focused on air, fuel, and after-treatment systems to meet more stringent Euro and EPA emissions |

----

Table of Contents

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Our Parts segment provides customers with proprietary products needed to support the International commercial and military truck, IC Bus, MaxxForce engine lines, as well as our other product lines. Our Parts segment also provides a wide selection of other standard truck, trailer, and engine aftermarket parts. At October 31, 2012, this segment operated eleven regional parts distribution centers that provide 24-hour availability and shipment. |

|         |                                                                                                                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Our Financial Services segment provides retail, wholesale, and lease financing of products sold by the Truck and Parts segments and their dealers within the U.S. and Mexico, as well as financing for wholesale accounts and selected retail accounts receivable. |

|         |                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------|
| • | The costs of profit sharing and annual incentive compensation are included in corporate expenses. |

|         |                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------|
| • | Interest expense and interest income for the manufacturing operations are reported in corporate expenses. |

|         |                                                                                                                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Certain sales to our dealers include interest-free periods that vary in length. The Financial Services segment finances these sales and our Truck segment subsidizes and reimburses the Financial Services segment for those finance charges. |

|         |                                                                                                                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Intersegment purchases and sales between the Truck and Engine segments are recorded at our best estimates of arms-length pricing. During 2010, MaxxForce Big-Bore engine program was treated as a joint program with the Truck and Engine segments sharing in certain costs of the program. |

|         |                                                                                                                                                                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Beginning in 2011, certain purchases from the Engine segment by the Parts segment, primarily related to PPT, are recorded at market-based pricing.  All other intersegment purchases from the Truck and Engine segments by the Parts segment are recorded at standard production cost. |

|         |                                                                                                                                                                                                                                                                                                                                           |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We allocate "access fees" to the Parts segment from the Truck and Engine segments for certain engineering and product development costs, depreciation expense, and selling, general and administrative expenses incurred by the Truck and Engine segments based on the relative percentage of certain sales, as adjusted for cyclicality. |

|         |                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The Financial Services segment provides the manufacturing operations, primarily our Truck and Parts segments, financing services that account for a significant share of its financing revenue. Certain retail sales financed by the Financial Services segment, primarily NFC, require the manufacturing operations, primarily the Truck segment, to share a portion of any credit losses. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In 2010 and 2011, as a result of higher costs of borrowings, the Financial Services segment charged the manufacturing operations certain fees and interest rates for its funding services. Effective with the third quarter of 2011, with improvements in its cost of borrowings, the Financial Services segment reduced some of these fees and interest rates through an amendment to the Company's master intercompany agreement. Effective with the fourth quarter of 2011, the Company's master intercompany agreement was again amended to provide for the Financial Services segment to reimburse the manufacturing operations for fees and financing revenue when the Financial Services segment exceeds a minimum interest coverage ratio. As a result of the amendment, in the fourth quarter of 2011 the Financial Services segment reimbursed the manufacturing operations $11 million of financing fees and revenues. Effective with the first quarter of 2012, the Company's master intercompany agreement was again amended to eliminate these intercompany fees. |

|         |                                                                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Beginning in 2011, we allocate gains and losses on commodities derivatives to the segment to which the underlying commodities relate.  Previously, the impacts of commodities derivatives were not material and were recorded in Corporate. |

|         |                                                                                                                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Other than the items discussed above, the selected financial information presented below is recognized in accordance with our policies described in Note 1, Summary of Significant Accounting Policies. |

----

Table of Contents

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                          | Truck(A) |   | Engine |   | Parts(A) |   | FinancialServices(B) |   | CorporateandEliminations |   | Total |
| Year Ended October 31, 2012                            |   |   |   |   |   |   |   |   |   |   |   |
| External sales and revenues, net                       | $ | 9,034 |  |   | $ | 1,755 |  |   | $ | 1,991 |  |   | $ | 168 |  |   | $ | — |  |   | $ | 12,948 |  |
| Intersegment sales and revenues                        | 35 |  |   | 1,639 |  |   | 128 |  |   | 91 |  |   | (1,893 | ) |   | — |  |
| Total sales and revenues, net                          | $ | 9,069 |  |   | $ | 3,394 |  |   | $ | 2,119 |  |   | $ | 259 |  |   | $ | (1,893 | ) |   | $ | 12,948 |  |
| Net income (loss) attributable to NIC                  | $ | (320 | ) |   | $ | (562 | ) |   | $ | 240 |  |   | $ | 91 |  |   | $ | (2,459 | ) |   | $ | (3,010 | ) |
| Income tax expense                                     | — |  |   | — |  |   | — |  |   | — |  |   | (1,780 | ) |   | (1,780 | ) |
| Segment profit (loss)                                  | $ | (320 | ) |   | $ | (562 | ) |   | $ | 240 |  |   | $ | 91 |  |   | $ | (679 | ) |   | $ | (1,230 | ) |
| Depreciation and amortization                          | $ | 140 |  |   | $ | 118 |  |   | $ | 10 |  |   | $ | 33 |  |   | $ | 22 |  |   | $ | 323 |  |
| Interest expense                                       | — |  |   | — |  |   | — |  |   | 88 |  |   | 171 |  |   | 259 |  |
| Equity in income (loss) of non-consolidated affiliates | (28 | ) |   | (7 | ) |   | 6 |  |   | — |  |   | — |  |   | (29 | ) |
| Capital expenditures(C)                                | 75 |  |   | 148 |  |   | 21 |  |   | 3 |  |   | 62 |  |   | 309 |  |
| As of October 31, 2012                                 |   |   |   |   |   |   |   |   |   |   |   |
| Segment assets                                         | $ | 2,118 |  |   | $ | 1,777 |  |   | $ | 707 |  |   | $ | 2,563 |  |   | $ | 1,937 |  |   | $ | 9,102 |  |

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                          | Truck(A) |   | Engine |   | Parts(A) |   | FinancialServices(B) |   | CorporateandEliminations |   | Total |
| Year Ended October 31, 2011                            |   |   |   |   |   |   |   |   |   |   |   |
| External sales and revenues, net                       | $ | 9,690 |  |   | $ | 2,101 |  |   | $ | 1,967 |  |   | $ | 200 |  |   | $ | — |  |   | $ | 13,958 |  |
| Intersegment sales and revenues                        | 48 |  |   | 1,690 |  |   | 188 |  |   | 91 |  |   | (2,017 | ) |   | — |  |
| Total sales and revenues, net                          | $ | 9,738 |  |   | $ | 3,791 |  |   | $ | 2,155 |  |   | $ | 291 |  |   | $ | (2,017 | ) |   | $ | 13,958 |  |
| Net income attributable to NIC                         | $ | 336 |  |   | $ | 84 |  |   | $ | 287 |  |   | $ | 129 |  |   | $ | 887 |  |   | $ | 1,723 |  |
| Income tax benefit                                     | — |  |   | — |  |   | — |  |   | — |  |   | 1,458 |  |   | 1,458 |  |
| Segment profit (loss)                                  | $ | 336 |  |   | $ | 84 |  |   | $ | 287 |  |   | $ | 129 |  |   | $ | (571 | ) |   | $ | 265 |  |
| Depreciation and amortization                          | $ | 151 |  |   | $ | 120 |  |   | $ | 9 |  |   | $ | 28 |  |   | $ | 20 |  |   | $ | 328 |  |
| Interest expense                                       | — |  |   | — |  |   | — |  |   | 109 |  |   | 138 |  |   | 247 |  |
| Equity in income (loss) of non-consolidated affiliates | (73 | ) |   | (4 | ) |   | 6 |  |   | — |  |   | — |  |   | (71 | ) |
| Capital expenditures(C)                                | 83 |  |   | 172 |  |   | 19 |  |   | 2 |  |   | 153 |  |   | 429 |  |
| As of October 31, 2011                                 |   |   |   |   |   |   |   |   |   |   |   |
| Segment assets                                         | $ | 2,771 |  |   | $ | 1,849 |  |   | $ | 700 |  |   | $ | 3,580 |  |   | $ | 3,391 |  |   | $ | 12,291 |  |

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Year Ended October 31, 2010                            |   |   |   |   |   |   |   |   |   |   |   |
| External sales and revenues, net                       | $ | 8,205 |  |   | $ | 2,031 |  |   | $ | 1,690 |  |   | $ | 219 |  |   | $ | — |  |   | $ | 12,145 |  |
| Intersegment sales and revenues                        | 2 |  |   | 955 |  |   | 195 |  |   | 90 |  |   | (1,242 | ) |   | — |  |
| Total sales and revenues, net                          | $ | 8,207 |  |   | $ | 2,986 |  |   | $ | 1,885 |  |   | $ | 309 |  |   | $ | (1,242 | ) |   | $ | 12,145 |  |
| Net income (loss) attributable to NIC                  | $ | 424 |  |   | $ | 51 |  |   | $ | 266 |  |   | $ | 95 |  |   | $ | (613 | ) |   | $ | 223 |  |
| Income tax expense                                     | — |  |   | — |  |   | — |  |   | — |  |   | (23 | ) |   | (23 | ) |
| Segment profit (loss)                                  | $ | 424 |  |   | $ | 51 |  |   | $ | 266 |  |   | $ | 95 |  |   | $ | (590 | ) |   | $ | 246 |  |
| Depreciation and amortization                          | $ | 160 |  |   | $ | 106 |  |   | $ | 7 |  |   | $ | 28 |  |   | $ | 15 |  |   | $ | 316 |  |
| Interest expense                                       | — |  |   | — |  |   | — |  |   | 113 |  |   | 140 |  |   | 253 |  |
| Equity in income (loss) of non-consolidated affiliates | (51 | ) |   | (2 | ) |   | 3 |  |   | — |  |   | — |  |   | (50 | ) |
| Capital expenditures(C)                                | 82 |  |   | 116 |  |   | 8 |  |   | 2 |  |   | 26 |  |   | 234 |  |
| As of October 31, 2010                                 |   |   |   |   |   |   |   |   |   |   |   |
| Segment assets                                         | $ | 2,457 |  |   | $ | 1,715 |  |   | $ | 811 |  |   | $ | 3,497 |  |   | $ | 1,250 |  |   | $ | 9,730 |  |

|     |                                                                     |
|-----|---------------------------------------------------------------------|
| (A) | See Note 2, Restructurings and Impairments, for further discussion. |

|     |                                                                                                                                                                                  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B) | Total sales and revenues in the Financial Services segment include interest revenues of $254 million, $285 million, and $270 million for 2012, 2011, and 2010, respectively. |

|     |                                                       |
|-----|-------------------------------------------------------|
| (C) | Exclusive of purchases of equipment leased to others. |

----

Table of Contents

|                     |
|---------------------|
|                     |  |  |  |  |  |  |  |  |
| (in millions)       | 2012 |   | 2011 |   | 2010 |
| Sales and revenues: |   |   |   |   |   |
| United States       | 9,075 |  |   | 9,646 |  |   | 8,847 |  |
| Canada              | 949 |  |   | 1,071 |  |   | 1,006 |  |
| Mexico              | 728 |  |   | 1,002 |  |   | 490 |  |
| Brazil              | 1,066 |  |   | 1,190 |  |   | 961 |  |
| Other               | 1,130 |  |   | 1,049 |  |   | 841 |  |

|                       |
|-----------------------|
|                       |  |  |  |  |  |
| (in millions)         | 2012 |   | 2011 |
| Long-lived assets:(A) |   |   |   |
| United States         | 1,519 |  |   | 1,340 |  |
| Canada                | 28 |  |   | 83 |  |
| Mexico                | 94 |  |   | 152 |  |
| Brazil                | 445 |  |   | 519 |  |
| Other                 | 25 |  |   | 29 |  |

|     |                                                                                                 |
|-----|-------------------------------------------------------------------------------------------------|
| (A) | Long-lived assets consist of Property and equipment, net, Goodwill, and Intangible assets, net. |

----

Table of Contents

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                            | 2012 |   | 2011 |   | 2010 |
| Defined benefit plans                    | $ | (2,302 | ) |   | $ | (2,045 | ) |   | $ | (1,316 | ) |
| Foreign currency translation adjustments | (23 | ) |   | 101 |  |   | 120 |  |
| Accumulated other comprehensive loss     | $ | (2,325 | ) |   | $ | (1,944 | ) |   | $ | (1,196 | ) |

----

Table of Contents

|                                                                                                       |
|-------------------------------------------------------------------------------------------------------|
|                                                                                                       |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except per share data)                                                                  | 2012 |   | 2011 |   | 2010 |
| Numerator:                                                                                            |   |   |   |   |   |
| Net income (loss) attributable to Navistar International Corporation available to common stockholders | $ | (3,010 | ) |   | $ | 1,723 |  |   | $ | 223 |  |
| Denominator:                                                                                          |   |   |   |   |   |
| Weighted average shares outstanding:                                                                  |   |   |   |   |   |
| Basic                                                                                                 | 69.1 |  |   | 72.8 |  |   | 71.7 |  |
| Effect of dilutive securities                                                                         | — |  |   | 3.3 |  |   | 1.5 |  |
| Diluted                                                                                               | 69.1 |  |   | 76.1 |  |   | 73.2 |  |
| Earnings (loss) per share attributable to Navistar International Corporation:                         |   |   |   |   |   |
| Basic                                                                                                 | $ | (43.56 | ) |   | $ | 23.66 |  |   | $ | 3.11 |  |
| Diluted                                                                                               | (43.56 | ) |   | 22.64 |  |   | 3.05 |  |

----

Table of Contents

----

Table of Contents

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                      | 2012 |   | 2011 |   | 2010 |
|                                      | Shares |   | Weighted Average Exercise Price |   | Shares |   | Weighted Average Exercise Price |   | Shares |   | Weighted Average Exercise Price |
|                                      | (in thousands) |   |   |   | (in thousands) |   |   |   | (in thousands) |   |   |
| Options outstanding, at beginning of year | 4,500 |  |   | $ | 39.65 |  |   | 4,911 |  |   | $ | 33.81 |  |   | 5,917 |  |   | $ | 33.09 |  |
| Granted                                   | 1,289 |  |   | 31.69 |  |   | 1,069 |  |   | 60.32 |  |   | 599 |  |   | 38.71 |  |
| Exercised                                 | (71 | ) |   | 27.66 |  |   | (1,440 | ) |   | 34.87 |  |   | (1,147 | ) |   | 30.94 |  |
| Forfeited/expired                         | (82 | ) |   | 44.66 |  |   | (40 | ) |   | 47.06 |  |   | (458 | ) |   | 38.14 |  |
| Options outstanding, at end of year       | 5,636 |  |   | 37.89 |  |   | 4,500 |  |   | 39.65 |  |   | 4,911 |  |   | 33.81 |  |
| Options exercisable, at end of year       | 3,672 |  |   | 36.96 |  |   | 3,064 |  |   | 36.07 |  |   | 3,767 |  |   | 34.67 |  |

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                        | Options Outstanding |
|                        | NumberOutstanding |   | Weighted Average Remaining Contractual Life |   | Weighted Average Exercise Price   |   | Aggregate Intrinsic Value |
| Range of Exercise Prices:   | (in thousands) |   | (in years) |   |   |   | (in millions) |
| $ 21.22 - $ 31.81 | 2,059 |  |   | 3.5 |  |   | $ | 24.53 |  |   | $ | — |  |
| $ 32.18 - $ 40.92 | 1,773 |  |   | 4.3 |  |   | 38.13 |  |   | — |  |
| $ 42.48 - $ 69.91 | 1,804 |  |   | 2.9 |  |   | 52.91 |  |   | — |  |

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                        | Options Exercisable |
|                        | NumberOutstanding |   | Weighted Average Remaining Contractual Life |   | Weighted Average Exercise Price   |   | Aggregate Intrinsic Value |
| Range of Exercise Prices:   | (in thousands) |   | (in years) |   |   |   | (in millions) |
| $ 21.22 - $ 31.81 | 1,558 |  |   | 3.1 |  |   | $ | 25.02 |  |   | $ | — |  |
| $ 32.18 - $ 40.92 | 863 |  |   | 2.7 |  |   | 39.34 |  |   | — |  |
| $ 42.48 - $ 69.91 | 1,251 |  |   | 2.0 |  |   | 50.20 |  |   | — |  |

|                          |
|--------------------------|
|                          |  |  |  |  |  |  |  |  |
|                     | 2012 |   | 2011 |   | 2010 |
| Risk-free interest rate  | 0.8 | % |   | 2.0 | % |   | 2.3 | % |
| Dividend yield           | — | % |   | — | % |   | — | % |
| Expected volatility      | 55.6 | % |   | 45.9 | % |   | 53.2 | % |
| Expected life (in years) | 4.8 |  |   | 4.8 |  |   | 4.7 |  |

----

Table of Contents

|                               |
|-------------------------------|
|                               |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                          | Share-Settled Restricted Stock Units |   | Cash-Settled Restricted Stock Units |
|                          | Shares |   | Weighted Average Grant Date Fair Value |   | Shares |   | Weighted Average Grant Date Fair Value |
|                          | (in thousands) |   |   |   | (in thousands) |   |   |
| Nonvested at October 31, 2011 | 162 |  |   | $ | 35.54 |  |   | 393 |  |   | $ | 48.80 |  |
| Granted                       | 50 |  |   | 27.27 |  |   | 285 |  |   | 37.10 |  |
| Vested                        | (93 | ) |   | 27.58 |  |   | (158 | ) |   | 46.18 |  |
| Forfeited                     | (1 | ) |   | 33.97 |  |   | (57 | ) |   | 43.58 |  |
| Nonvested at October 31, 2012 | 118 |  |   | 38.28 |  |   | 463 |  |   | 43.20 |  |

----

Table of Contents

|                                                                           |
|---------------------------------------------------------------------------|
|                                                                           |  |  |  |  |  |  |  |  |  |  |  |
|                                                                      | For the Years EndedOctober 31,   |
|                                                                      | 2012 |   | 2011 |   | 2010 |
| (in millions)                                                             |   |   |   |   |   |
| Equity in income of affiliated companies, net of dividends                |   |   |   |   |   |
| Equity in loss of non-consolidated affiliates                             | $ | 29 |  |   | $ | 71 |  |   | $ | 50 |  |
| Dividends from non-consolidated affiliates                                | 7 |  |   | 4 |  |   | 5 |  |
| Equity in loss of non-consolidated affiliates, net of dividends           | $ | 36 |  |   | $ | 75 |  |   | $ | 55 |  |
| Other non-cash operating activities                                       |   |   |   |   |   |
| Loss on sales of affiliates                                               | $ | 3 |  |   | $ | — |  |   | $ | 8 |  |
| Gain on increased equity interest in subsidiary                           | — |  |   | (6 | ) |   | — |  |
| Loss on sale of property and equipment                                    | 4 |  |   | 2 |  |   | 1 |  |
| Loss (gain) on sale and impairment of repossessed collateral              | — |  |   | (1 | ) |   | 9 |  |
| Loss on sale of finance receivables                                       | — |  |   | — |  |   | 39 |  |
| Write-off of debt issuance cost                                           | 13 |  |   | — |  |   | 4 |  |
| Gain on settlement of financing arrangement                               | — |  |   | (10 | ) |   | — |  |
| Other non-cash operating activities                                       | $ | 20 |  |   | $ | (15 | ) |   | $ | 61 |  |
| Changes in other assets and liabilities                                   |   |   |   |   |   |
| Other current assets                                                      | $ | 1 |  |   | $ | (28 | ) |   | $ | (39 | ) |
| Other noncurrent assets                                                   | 16 |  |   | (32 | ) |   | 7 |  |
| Other current liabilities                                                 | 198 |  |   | 130 |  |   | (73 | ) |
| Postretirement benefits liabilities                                       | (79 | ) |   | 9 |  |   | (40 | ) |
| Other noncurrent liabilities                                              | 292 |  |   | 94 |  |   | (16 | ) |
| Other, net                                                                | (8 | ) |   | (9 | ) |   | 1 |  |
| Changes in other assets and liabilities                                   | $ | 420 |  |   | $ | 164 |  |   | $ | (160 | ) |
| Cash paid during the year                                                 |   |   |   |   |   |
| Interest, net of amounts capitalized                                      | $ | 195 |  |   | $ | 208 |  |   | $ | 170 |  |
| Income taxes, net of refunds                                              | 51 |  |   | 9 |  |   | 27 |  |
| Non-cash investing and financing activities                               |   |   |   |   |   |
| Property and equipment acquired under capital leases                      | $ | 58 |  |   | $ | — |  |   | $ | 12 |  |
| Transfers from inventories to property and equipment for leases to others | 37 |  |   | 9 |  |   | 34 |  |

----

Table of Contents

|                                                                                     |
|-------------------------------------------------------------------------------------|
|                                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                       | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Condensed Consolidating Statement of Operations for the year Ended October 31, 2012 |   |   |   |   |   |   |   |   |   |
| Sales and revenues, net                                                             | $ | — |  |   | $ | 7,924 |  |   | $ | 11,666 |  |   | $ | (6,642 | ) |   | $ | 12,948 |  |
| Costs of products sold                                                              | — |  |   | 8,188 |  |   | 10,067 |  |   | (6,585 | ) |   | 11,670 |  |
| Restructuring charges                                                               | — |  |   | 86 |  |   | 22 |  |   | — |  |   | 108 |  |
| Impairment of property and equipment and intangible assets                          | — |  |   | 2 |  |   | 42 |  |   | — |  |   | 44 |  |
| All other operating expenses (income)                                               | (249 | ) |   | 1,297 |  |   | 994 |  |   | 237 |  |   | 2,279 |  |
| Total costs and expenses                                                            | (249 | ) |   | 9,573 |  |   | 11,125 |  |   | (6,348 | ) |   | 14,101 |  |
| Equity in income (loss) of affiliates                                               | (3,258 | ) |   | 536 |  |   | (34 | ) |   | 2,727 |  |   | (29 | ) |
| Income (loss) before income taxes                                                   | (3,009 | ) |   | (1,113 | ) |   | 507 |  |   | 2,433 |  |   | (1,182 | ) |
| Income tax benefit (expense)                                                        | (1 | ) |   | (1,987 | ) |   | 209 |  |   | (1 | ) |   | (1,780 | ) |
| Net income (loss)                                                                   | (3,010 | ) |   | (3,100 | ) |   | 716 |  |   | 2,432 |  |   | (2,962 | ) |
| Less: Net income attributable to non-controlling interests                          | — |  |   | — |  |   | 48 |  |   | — |  |   | 48 |  |
| Net income (loss) attributable to Navistar International Corporation                | $ | (3,010 | ) |   | $ | (3,100 | ) |   | $ | 668 |  |   | $ | 2,432 |  |   | $ | (3,010 | ) |

----

Table of Contents

|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                                 | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Condensed Consolidating Statement of Comprehensive Income for the year Ended October 31, 2012 |   |   |   |   |   |   |   |   |   |
| Net income (loss) attributable to Navistar International Corporation                          | $ | (3,010 | ) |   | $ | (3,100 | ) |   | $ | 668 |  |   | $ | 2,432 |  |   | $ | (3,010 | ) |
| Other comprehensive income (loss):                                                            |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                                       | (125 | ) |   | — |  |   | (125 | ) |   | 125 |  |   | (125 | ) |
| Defined benefit plans (net of tax of $14, $0, $14, $(14), and $14, respectively)              | (256 | ) |   | (225 | ) |   | (31 | ) |   | 256 |  |   | (256 | ) |
| Total other comprehensive income (loss)                                                       | (381 | ) |   | (225 | ) |   | (156 | ) |   | 381 |  |   | (381 | ) |
| Total comprehensive income (loss) attributable to Navistar International Corporation          | $ | (3,391 | ) |   | $ | (3,325 | ) |   | $ | 512 |  |   | $ | 2,813 |  |   | $ | (3,391 | ) |

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                           | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Condensed Consolidating Balance Sheet as of October 31, 2012                            |   |   |   |   |   |   |   |   |   |
| Assets                                                                                  |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                               | $ | 702 |  |   | $ | 55 |  |   | $ | 330 |  |   | $ | — |  |   | $ | 1,087 |  |
| Marketable securities                                                                   | 314 |  |   | — |  |   | 152 |  |   | — |  |   | 466 |  |
| Restricted cash                                                                         | 24 |  |   | 8 |  |   | 129 |  |   | — |  |   | 161 |  |
| Finance and other receivables, net                                                      | 5 |  |   | 128 |  |   | 2,859 |  |   | — |  |   | 2,992 |  |
| Inventories                                                                             | — |  |   | 691 |  |   | 885 |  |   | (39 | ) |   | 1,537 |  |
| Investments in non-consolidated affiliates                                              | (5,616 | ) |   | 6,454 |  |   | 54 |  |   | (830 | ) |   | 62 |  |
| Property and equipment, net                                                             | — |  |   | 790 |  |   | 874 |  |   | (4 | ) |   | 1,660 |  |
| Goodwill                                                                                | — |  |   | — |  |   | 280 |  |   | — |  |   | 280 |  |
| Deferred taxes, net                                                                     | 9 |  |   | 11 |  |   | 243 |  |   | — |  |   | 263 |  |
| Other                                                                                   | 83 |  |   | 177 |  |   | 335 |  |   | (1 | ) |   | 594 |  |
| Total assets                                                                            | $ | (4,479 | ) |   | $ | 8,314 |  |   | $ | 6,141 |  |   | $ | (874 | ) |   | $ | 9,102 |  |
| Liabilities and stockholders’ equity (deficit)                                    |   |   |   |   |   |   |   |   |   |
| Debt                                                                                    | $ | 1,617 |  |   | $ | 1,162 |  |   | $ | 1,997 |  |   | $ | (5 | ) |   | $ | 4,771 |  |
| Postretirement benefits liabilities                                                     | — |  |   | 3,144 |  |   | 367 |  |   | — |  |   | 3,511 |  |
| Amounts due to (from) affiliates                                                        | (5,863 | ) |   | 9,522 |  |   | (3,743 | ) |   | 84 |  |   | — |  |
| Other liabilities                                                                       | 3,072 |  |   | 337 |  |   | 748 |  |   | (77 | ) |   | 4,080 |  |
| Total liabilities                                                                       | (1,174 | ) |   | 14,165 |  |   | (631 | ) |   | 2 |  |   | 12,362 |  |
| Redeemable equity securities                                                            | 5 |  |   | — |  |   | — |  |   | — |  |   | 5 |  |
| Stockholders’ equity attributable to non-controlling interests                    | — |  |   | — |  |   | 45 |  |   | — |  |   | 45 |  |
| Stockholders’ equity (deficit) attributable to Navistar International Corporation | (3,310 | ) |   | (5,851 | ) |   | 6,727 |  |   | (876 | ) |   | (3,310 | ) |
| Total liabilities and stockholders’ equity (deficit)                              | $ | (4,479 | ) |   | $ | 8,314 |  |   | $ | 6,141 |  |   | $ | (874 | ) |   | $ | 9,102 |  |

----

Table of Contents

|                                                                                     |
|-------------------------------------------------------------------------------------|
|                                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                       | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Condensed Consolidating Statement of Cash Flows for the Year Ended October 31, 2012 |   |   |   |   |   |   |   |   |   |
| Net cash provided by (used in) operations                                           | $ | 350 |  |   | $ | (183 | ) |   | $ | 901 |  |   | $ | (458 | ) |   | $ | 610 |  |
| Cash flows from investment activities                                               |   |   |   |   |   |   |   |   |   |
| Net change in restricted cash and cash equivalents                                  | (4 | ) |   | 1 |  |   | 168 |  |   | — |  |   | 165 |  |
| Net sales of marketable securities                                                  | 115 |  |   | — |  |   | 137 |  |   | — |  |   | 252 |  |
| Capital expenditures and purchase of equipment leased to others                     | — |  |   | (213 | ) |   | (157 | ) |   | — |  |   | (370 | ) |
| Other investing activities                                                          | — |  |   | (157 | ) |   | 108 |  |   | — |  |   | (49 | ) |
| Net cash provided by (used in) investment activities                                | 111 |  |   | (369 | ) |   | 256 |  |   | — |  |   | (2 | ) |
| Cash flows from financing activities                                                |   |   |   |   |   |   |   |   |   |
| Net borrowings (repayments) of debt                                                 | 171 |  |   | 594 |  |   | (1,245 | ) |   | 549 |  |   | 69 |  |
| Other financing activities                                                          | (156 | ) |   | — |  |   | 115 |  |   | (91 | ) |   | (132 | ) |
| Net cash provided by (used in) financing activities                                 | 15 |  |   | 594 |  |   | (1,130 | ) |   | 458 |  |   | (63 | ) |
| Effect of exchange rate changes on cash and cash equivalents                        | — |  |   | — |  |   | 3 |  |   | — |  |   | 3 |  |
| Increase in cash and cash equivalents                                               | 476 |  |   | 42 |  |   | 30 |  |   | — |  |   | 548 |  |
| Cash and cash equivalents at beginning of the year                                  | 226 |  |   | 13 |  |   | 300 |  |   | — |  |   | 539 |  |
| Cash and cash equivalents at end of the year                                        | $ | 702 |  |   | $ | 55 |  |   | $ | 330 |  |   | $ | — |  |   | $ | 1,087 |  |

|                                                                                     |
|-------------------------------------------------------------------------------------|
|                                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                       | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Condensed Consolidating Statement of Operations for the Year Ended October 31, 2011 |   |   |   |   |   |   |   |   |   |
| Sales and revenues, net                                                             | $ | — |  |   | $ | 8,319 |  |   | $ | 13,202 |  |   | $ | (7,563 | ) |   | $ | 13,958 |  |
| Costs of products sold                                                              | — |  |   | 7,775 |  |   | 10,974 |  |   | (7,487 | ) |   | 11,262 |  |
| Restructuring charges                                                               | — |  |   | 33 |  |   | 59 |  |   | — |  |   | 92 |  |
| Impairment of property and equipment and intangible assets                          | — |  |   | — |  |   | 64 |  |   | — |  |   | 64 |  |
| All other operating expenses                                                        | 79 |  |   | 1,263 |  |   | 902 |  |   | (95 | ) |   | 2,149 |  |
| Total costs and expenses                                                            | 79 |  |   | 9,071 |  |   | 11,999 |  |   | (7,582 | ) |   | 13,567 |  |
| Equity in income (loss) of affiliates                                               | 1,759 |  |   | 462 |  |   | (37 | ) |   | (2,255 | ) |   | (71 | ) |
| Income (loss) before income taxes                                                   | 1,680 |  |   | (290 | ) |   | 1,166 |  |   | (2,236 | ) |   | 320 |  |
| Income tax benefit (expense)                                                        | 43 |  |   | 1,937 |  |   | (511 | ) |   | (11 | ) |   | 1,458 |  |
| Net income                                                                          | 1,723 |  |   | 1,647 |  |   | 655 |  |   | (2,247 | ) |   | 1,778 |  |
| Less: Net income attributable to non-controlling interests                          | — |  |   | — |  |   | 55 |  |   | — |  |   | 55 |  |
| Net income attributable to Navistar International Corporation                       | $ | 1,723 |  |   | $ | 1,647 |  |   | $ | 600 |  |   | $ | (2,247 | ) |   | $ | 1,723 |  |

----

Table of Contents

|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                                 | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Condensed Consolidating Statement of Comprehensive Income for the Year Ended October 31, 2011 |   |   |   |   |   |   |   |   |   |
| Net income attributable to Navistar International Corporation                                 | $ | 1,723 |  |   | $ | 1,647 |  |   | $ | 600 |  |   | $ | (2,247 | ) |   | $ | 1,723 |  |
| Other comprehensive income (loss):                                                            |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                                       | (19 | ) |   | — |  |   | (11 | ) |   | 11 |  |   | (19 | ) |
| Defined benefit plans (net of tax of $430, $421, $9, $(430), and $430, respectively)          | (729 | ) |   | (725 | ) |   | (4 | ) |   | 729 |  |   | (729 | ) |
| Total other comprehensive loss                                                                | (748 | ) |   | (725 | ) |   | (15 | ) |   | 740 |  |   | (748 | ) |
| Total comprehensive income attributable to Navistar International Corporation                 | $ | 975 |  |   | $ | 922 |  |   | $ | 585 |  |   | $ | (1,507 | ) |   | $ | 975 |  |

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                           | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Condensed Consolidating Balance Sheet as of October 31, 2011                       |   |   |   |   |   |   |   |   |   |
| Assets                                                                                  |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                               | $ | 226 |  |   | $ | 13 |  |   | $ | 300 |  |   | $ | — |  |   | $ | 539 |  |
| Marketable securities                                                                   | 429 |  |   | 1 |  |   | 288 |  |   | — |  |   | 718 |  |
| Restricted cash                                                                         | 20 |  |   | 9 |  |   | 298 |  |   | — |  |   | 327 |  |
| Finance and other receivables, net                                                      | 3 |  |   | 154 |  |   | 4,070 |  |   | 27 |  |   | 4,254 |  |
| Inventories                                                                             | — |  |   | 650 |  |   | 1,113 |  |   | (49 | ) |   | 1,714 |  |
| Investments in non-consolidated affiliates                                              | (2,094 | ) |   | 5,818 |  |   | 54 |  |   | (3,718 | ) |   | 60 |  |
| Property and equipment, net                                                             | — |  |   | 600 |  |   | 972 |  |   | (2 | ) |   | 1,570 |  |
| Goodwill                                                                                | — |  |   | — |  |   | 319 |  |   | — |  |   | 319 |  |
| Deferred taxes, net                                                                     | 31 |  |   | 1,912 |  |   | 114 |  |   | — |  |   | 2,057 |  |
| Other                                                                                   | 168 |  |   | 152 |  |   | 416 |  |   | (3 | ) |   | 733 |  |
| Total assets                                                                            | $ | (1,217 | ) |   | $ | 9,309 |  |   | $ | 7,944 |  |   | $ | (3,745 | ) |   | $ | 12,291 |  |
| Liabilities and stockholders’ equity (deficit)                                    |   |   |   |   |   |   |   |   |   |
| Debt                                                                                    | $ | 1,689 |  |   | $ | 156 |  |   | $ | 3,242 |  |   | $ | (231 | ) |   | $ | 4,856 |  |
| Postretirement benefits liabilities                                                     | — |  |   | 2,981 |  |   | 335 |  |   | — |  |   | 3,316 |  |
| Amounts due to (from) affiliates                                                        | (5,574 | ) |   | 9,055 |  |   | (3,595 | ) |   | 114 |  |   | — |  |
| Other liabilities                                                                       | 2,690 |  |   | (194 | ) |   | 1,717 |  |   | (122 | ) |   | 4,091 |  |
| Total liabilities                                                                       | (1,195 | ) |   | 11,998 |  |   | 1,699 |  |   | (239 | ) |   | 12,263 |  |
| Redeemable equity securities                                                            | 5 |  |   | — |  |   | — |  |   | — |  |   | 5 |  |
| Stockholders’ equity (deficit) attributable to non-controlling interest           | — |  |   | — |  |   | 52 |  |   | (2 | ) |   | 50 |  |
| Stockholders’ equity (deficit) attributable to Navistar International Corporation | (27 | ) |   | (2,689 | ) |   | 6,193 |  |   | (3,504 | ) |   | (27 | ) |
| Total liabilities and stockholders’ equity (deficit)                              | $ | (1,217 | ) |   | $ | 9,309 |  |   | $ | 7,944 |  |   | $ | (3,745 | ) |   | $ | 12,291 |  |

----

Table of Contents

|                                                                                     |
|-------------------------------------------------------------------------------------|
|                                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                       | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Condensed Consolidating Statement of Cash Flows for the Year Ended October 31, 2011 |   |   |   |   |   |   |   |   |   |
| Net cash provided by (used in) operations                                           | $ | (44 | ) |   | $ | (66 | ) |   | $ | 556 |  |   | $ | 434 |  |   | $ | 880 |  |
| Cash flows from investment activities                                               |   |   |   |   |   |   |   |   |   |
| Net change in restricted cash and cash equivalents                                  | — |  |   | — |  |   | (147 | ) |   | — |  |   | (147 | ) |
| Net purchases in marketable securities                                              | (55 | ) |   | — |  |   | (77 | ) |   | — |  |   | (132 | ) |
| Capital expenditures and purchase of equipment leased to others                     | — |  |   | (264 | ) |   | (236 | ) |   | — |  |   | (500 | ) |
| Other investing activities                                                          | — |  |   | (12 | ) |   | (32 | ) |   | — |  |   | (44 | ) |
| Net cash used in investment activities                                              | (55 | ) |   | (276 | ) |   | (492 | ) |   | — |  |   | (823 | ) |
| Cash flows from financing activities                                                |   |   |   |   |   |   |   |   |   |
| Net borrowings (repayments) of debt                                                 | 91 |  |   | 333 |  |   | 48 |  |   | (434 | ) |   | 38 |  |
| Other financing activities                                                          | (5 | ) |   | — |  |   | (133 | ) |   | — |  |   | (138 | ) |
| Net cash provided by (used in) financing activities                                 | 86 |  |   | 333 |  |   | (85 | ) |   | (434 | ) |   | (100 | ) |
| Effect of exchange rate changes on cash and cash equivalents                        | — |  |   | — |  |   | (3 | ) |   | — |  |   | (3 | ) |
| Decrease in cash and cash equivalents                                               | (13 | ) |   | (9 | ) |   | (24 | ) |   | — |  |   | (46 | ) |
| Cash and cash equivalents at beginning of the year                                  | 239 |  |   | 22 |  |   | 324 |  |   | — |  |   | 585 |  |
| Cash and cash equivalents at end of the year                                        | $ | 226 |  |   | $ | 13 |  |   | $ | 300 |  |   | $ | — |  |   | $ | 539 |  |

|                                                                                     |
|-------------------------------------------------------------------------------------|
|                                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                       | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Condensed Consolidating Statement of Operations for the Year Ended October 31, 2010 |   |   |   |   |   |   |   |   |   |
| Sales and revenues, net                                                             | $ | — |  |   | $ | 6,751 |  |   | $ | 11,278 |  |   | $ | (5,884 | ) |   | $ | 12,145 |  |
| Costs of products sold                                                              | (1 | ) |   | 6,303 |  |   | 9,245 |  |   | (5,806 | ) |   | 9,741 |  |
| Restructuring benefits                                                              | — |  |   | (13 | ) |   | (2 | ) |   | — |  |   | (15 | ) |
| All other operating expenses (income)                                               | 61 |  |   | 1,349 |  |   | 763 |  |   | (94 | ) |   | 2,079 |  |
| Total costs and expenses                                                            | 60 |  |   | 7,639 |  |   | 10,006 |  |   | (5,900 | ) |   | 11,805 |  |
| Equity in income (loss) of affiliates                                               | 283 |  |   | 895 |  |   | (17 | ) |   | (1,211 | ) |   | (50 | ) |
| Income (loss) before income taxes                                                   | 223 |  |   | 7 |  |   | 1,255 |  |   | (1,195 | ) |   | 290 |  |
| Income tax benefit (expense)                                                        | — |  |   | 55 |  |   | (78 | ) |   | — |  |   | (23 | ) |
| Net income                                                                          | 223 |  |   | 62 |  |   | 1,177 |  |   | (1,195 | ) |   | 267 |  |
| Less: Net income attributable to non-controlling interest                           | — |  |   | — |  |   | 44 |  |   | — |  |   | 44 |  |
| Net income attributable to Navistar International Corporation                       | $ | 223 |  |   | $ | 62 |  |   | $ | 1,133 |  |   | $ | (1,195 | ) |   | $ | 223 |  |

----

Table of Contents

|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                                 | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Condensed Consolidating Statement of Comprehensive Income for the Year Ended October 31, 2010 |   |   |   |   |   |   |   |   |   |
| Net income attributable to Navistar International Corporation                                 | $ | 223 |  |   | $ | 62 |  |   | $ | 1,133 |  |   | $ | (1,195 | ) |   | $ | 223 |  |
| Other comprehensive income (loss):                                                            |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                                       | 22 |  |   | — |  |   | 22 |  |   | (22 | ) |   | 22 |  |
| Defined benefit plans (net of tax of $0, $0, $0 $0, and $0, respectively)                     | 472 |  |   | 511 |  |   | (39 | ) |   | (472 | ) |   | 472 |  |
| Total other comprehensive income (loss)                                                       | 494 |  |   | 511 |  |   | (17 | ) |   | (494 | ) |   | 494 |  |
| Total comprehensive income attributable to Navistar International Corporation                 | $ | 717 |  |   | $ | 573 |  |   | $ | 1,116 |  |   | $ | (1,689 | ) |   | $ | 717 |  |

|                                                                                     |
|-------------------------------------------------------------------------------------|
|                                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                       | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Condensed Consolidating Statement of Cash Flows for the Year Ended October 31, 2010 |   |   |   |   |   |   |   |   |   |
| Net cash provided by (used in) operations                                           | $ | (174 | ) |   | $ | (421 | ) |   | $ | 1,041 |  |   | $ | 661 |  |   | $ | 1,107 |  |
| Cash flows from investment activities                                               |   |   |   |   |   |   |   |   |   |
| Net change in restricted cash and cash equivalents                                  | — |  |   | — |  |   | 515 |  |   | — |  |   | 515 |  |
| Net purchases in marketable securities                                              | (374 | ) |   | — |  |   | (212 | ) |   | — |  |   | (586 | ) |
| Capital expenditures and purchase of equipment leased to others                     | — |  |   | (107 | ) |   | (172 | ) |   | — |  |   | (279 | ) |
| Other investing activities                                                          | (20 | ) |   | (84 | ) |   | (13 | ) |   | 33 |  |   | (84 | ) |
| Net cash provided by (used in) investment activities                                | (394 | ) |   | (191 | ) |   | 118 |  |   | 33 |  |   | (434 | ) |
| Cash flows from financing activities                                                |   |   |   |   |   |   |   |   |   |
| Net borrowings (repayments) of debt                                                 | (20 | ) |   | 598 |  |   | (1,195 | ) |   | (661 | ) |   | (1,278 | ) |
| Other financing activities                                                          | 35 |  |   | — |  |   | (24 | ) |   | (33 | ) |   | (22 | ) |
| Net cash provided by (used in) financing activities                                 | 15 |  |   | 598 |  |   | (1,219 | ) |   | (694 | ) |   | (1,300 | ) |
| Effect of exchange rate changes on cash and cash equivalents                        | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Decrease in cash and cash equivalents                                               | (553 | ) |   | (14 | ) |   | (60 | ) |   | — |  |   | (627 | ) |
| Cash and cash equivalents at beginning of the year                                  | 792 |  |   | 36 |  |   | 384 |  |   | — |  |   | 1,212 |  |
| Cash and cash equivalents at end of the year                                        | $ | 239 |  |   | $ | 22 |  |   | $ | 324 |  |   | $ | — |  |   | $ | 585 |  |

----

Table of Contents

|                                                                               |
|-------------------------------------------------------------------------------|
|                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                          | 1st Quarter Ended January 31, |   | 2nd Quarter Ended April 30, |
| (in millions, except for per share data and stock price)                      | 2012 |   | 2011 |   | 2012 |   | 2011 |
| Sales and revenues, net                                                       | $ | 3,052 |  |   | $ | 2,743 |  |   | $ | 3,298 |  |   | $ | 3,355 |  |
| Manufacturing gross margin(A)(B)                                              | 310 |  |   | 494 |  |   | 311 |  |   | 597 |  |
| Net income (loss)(C)                                                          | (140 | ) |   | 6 |  |   | (162 | ) |   | 88 |  |
| Less: Net income attributable to non-controlling interests                    | 13 |  |   | 12 |  |   | 10 |  |   | 14 |  |
| Net income (loss) attributable to Navistar International Corporation          | (153 | ) |   | (6 | ) |  | (172 | ) |   | 74 |  |
| Earnings (loss) per share attributable to Navistar International Corporation: |   |   |   |   |   |   |   |
| Basic                                                                         | $ | (2.19 | ) |   | $ | (0.08 | ) |   | $ | (2.50 | ) |   | $ | 1.01 |  |
| Diluted                                                                       | (2.19 | ) |   | (0.08 | ) |   | (2.50 | ) |   | 0.93 |  |
| Market price range-common stock:                                              |   |   |   |   |   |   |   |
| High                                                                          | $ | 45.44 |  |   | $ | 66.39 |  |   | $ | 48.18 |  |   | 71.49 |  |
| Low                                                                           | 33.74 |  |   | 48.32 |  |   | 32.68 |  |   | 58.49 |  |

|                                                                               |
|-------------------------------------------------------------------------------|
|                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                          | 3rd Quarter Ended July 31, |   | 4th Quarter Ended October 31, |
| (in millions, except for per share data and stock price)                      | 2012 |   | 2011(D) |   | 2012 |   | 2011(D) |
| Sales and revenues, net                                                       | $ | 3,319 |  |   | $ | 3,537 |  |   | $ | 3,279 |  |   | $ | 4,323 |  |
| Manufacturing gross margin(A)(B)                                              | 401 |  |   | 560 |  |   | 88 |  |   | 845 |  |
| Net income (loss)(C)                                                          | 96 |  |   | 1,409 |  |   | (2,756 | ) |   | 275 |  |
| Less: Net income attributable to non-controlling interests                    | 12 |  |   | 9 |  |   | 13 |  |   | 20 |  |
| Net income (loss) attributable to Navistar International Corporation          | 84 |  |   | 1,400 |  |   | (2,769 | ) |   | 255 |  |
| Earnings (loss) per share attributable to Navistar International Corporation: |   |   |   |   |   |   |   |
| Basic                                                                         | $ | 1.22 |  |   | $ | 19.10 |  |   | $ | (40.13 | ) |   | $ | 3.52 |  |
| Diluted                                                                       | 1.22 |  |   | 18.24 |  |   | (40.13 | ) |   | 3.48 |  |
| Market price range-common stock:                                              |   |   |   |   |   |   |   |
| High                                                                          | $ | 35.25 |  |   | $ | 70.40 |  |   | $ | 26.48 |  |   | $ | 52.36 |  |
| Low                                                                           | 20.21 |  |   | 50.05 |  |   | 18.17 |  |   | 30.01 |  |

|     |                                                                                                                              |
|-----|------------------------------------------------------------------------------------------------------------------------------|
| (A) | Manufacturing gross margin is calculated by subtracting Costs of products sold from Sales of manufactured products, net. |

|     |                                                                                                                                                                                                                                                                                                                                                     |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B) | We record adjustments to our product warranty accrual to 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. In the fourth quarter of 2012, we recorded adjustments for changes in estimates of $149 million. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (C) | In the fourth quarter of 2012, we determined that a significant additional valuation allowance on our U.S. deferred tax assets was required, due in part to our current domestic performance, which include continued fourth quarter deterioration and cumulative losses as of October 31, 2012 which included significant fourth quarter warranty charges. As a result we recognized income tax expense of $2 billion for the increase in the valuation allowance. In the fourth quarter of 2012, we also recognized $233 million of income tax expense related to the reversal of income tax benefits recognized in the first, second, and third quarters of 2012. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (D) | In the fourth quarter of 2011, certain out-of-period adjustments were recorded related to the partial release of the Company's income tax valuation allowance. The adjustments of approximately $61 million primarily related to the classification of a deferred tax item and resulted in the Company recognizing an additional income tax benefit. The Company should have recognized the income tax benefit for this amount in the third quarter of 2011 with the release of a portion of the Company's income tax valuation allowance. Correcting the error was not material to any of the related periods. |

----

Table of Contents

|              |                                                                                      |
|--------------|--------------------------------------------------------------------------------------|
| Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |

|         |                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets of the Company. |

|         |                                                                                                                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP and that receipts and expenditures of the Company are being made in accordance with authorization of our management and our Board of Directors. |

|         |                                                                                                                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on our consolidated financial statements. |

|               |                   |
|---------------|-------------------|
| Item 9B. | Other Information |

----

Table of Contents

|               |                                                         |
|---------------|---------------------------------------------------------|
| Item 10. | Directors, Executive Officers, and Corporate Governance |

|               |                        |
|---------------|------------------------|
| Item 11. | Executive Compensation |

|               |                                                                                                |
|---------------|------------------------------------------------------------------------------------------------|
| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |

|               |                                                                           |
|---------------|---------------------------------------------------------------------------|
| Item 13. | Certain Relationships and Related Transactions, and Director Independence |

|               |                                        |
|---------------|----------------------------------------|
| Item 14. | Principal Accounting Fees and Services |

----

Table of Contents

|           |
|-----------|
|           |  |  |  |  |
| Exhibit:  |   |    |   | Page |
|      |   |   |   |   |
| (3)       |   | Articles of Incorporation and By-Laws |   | E-1 |
| (4)       |   | Instruments Defining the Rights of Security Holders, Including Indentures |   | E-2 |
| (10)      |   | Material Contracts |   | E-3 |
| (11)      |   | Computation of Earnings (loss) per Share (incorporated by reference from Note 17, Earnings (Loss) Per Share Attributable to Navistar International Corporation, to the accompanying consolidated financial statements) |   | 120 |
| (12)      |   | Computation of Ratio of Earnings to Fixed Charges |   | E-51 |
| (21)      |   | Subsidiaries of the Registrant |   | E-52 |
| (23.1)    |   | Consent of Independent Registered Public Accounting Firm |   | E-53 |
| (24)      |   | Power of Attorney |   | E-54 |
| (31.1)    |   | CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |   | E-55 |
| (31.2)    |   | CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |   | E-56 |
| (32.1)    |   | CEO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |   | E-57 |
| (32.2)    |   | CFO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |   | E-58 |
| (99.1)    |   | Additional Financial Information (Unaudited) |   | E-59 |
| (101.ING) |   | XBRL Instance Document |   | N/A |
| (101.SCH) |   | XBRL Taxonomy Extension Schema Document |   | N/A |
| (101.CAL) |   | XBRL Taxonomy Extension Calculation Linkbase Document |   | N/A |
| (101.LAB) |   | XBRL Taxonomy Extension Label Linkbase Document |   | N/A |
| (101.PRE) |   | XBRL Taxonomy Extension Presentation Linkbase Document |   | N/A |
| (101.DEF) |   | XBRL Taxonomy Extension Definition Linkbase Document |   | N/A |

----

Table of Contents

|        |
|--------|
|        |  |
|   | NAVISTAR INTERNATIONAL CORPORATION |
|   | (Registrant) |
|   | /s/    RICHARD C. TARAPCHAK         |
|   | Richard C. Tarapchak |
|   | Vice President and Controller |
|   | (Principal Accounting Officer) |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |
| Signature                       |   | Title |   | Date |
|                            |   |   |   |   |
| /s/  LEWIS B. CAMPBELL          |   | Executive Chairman andChief Executive Officer and Director(Principal Executive Officer) |   | December 19, 2012 |
| Lewis B. Campbell               |   |   |   |
|                            |   |   |   |   |
| /s/  ANDREW J. CEDEROTH         |   | Executive Vice President andChief Financial Officer(Principal Financial Officer) |   | December 19, 2012 |
| Andrew J. Cederoth              |   |   |   |
|                            |   |   |   |   |
| /s/  RICHARD C. TARAPCHAK       |   | Vice President and Controller (Principal Accounting Officer) |   | December 19, 2012 |
| Richard Tarapchak               |   |   |   |
|                            |   |   |   |   |
| /s/  JOHN D. CORRENTI           |   | Director |   | December 19, 2012 |
| John D. Correnti                |   |   |   |   |
|                            |   |   |   |   |
| /s/  MICHAEL N. HAMMES          |   | Director |   | December 19, 2012 |
| Michael N. Hammes               |   |   |   |   |
|                            |   |   |   |   |
| /s/  VINCENT J. INTRIERI        |   | Director |   | December 19, 2012 |
| Vincent J. Intrieri             |   |   |   |   |
|                            |   |   |   |   |
| /s/  JAMES H. KEYES             |   | Director |   | December 19, 2012 |
| James H. Keyes                  |   |   |   |   |
|                            |   |   |   |   |
| /s/  STANLEY A. MCCHRYSTAL |   | Director |   | December 19, 2012 |
| Stanley A. McChrystal           |   |   |   |   |
|                            |   |   |   |   |
| /s/  SAMUEL J. MERKSAMER        |   | Director |   | December 19, 2012 |
| Samuel J. Merksamer             |   |   |   |   |
|                            |   |   |   |   |
| /s/  JOHN C. POPE          |   | Director |   | December 19, 2012 |
| John C. Pope                    |   |   |   |   |
|                            |   |   |   |   |
| /s/  MARK H. RACHESKY      |   | Director |   | December 19, 2012 |
| Mark H. Rachesky                |   |   |   |   |
|                            |   |   |   |   |
| /s/  DENNIS D. WILLIAMS         |   | Director |   | December 19, 2012 |
| Dennis D. Williams              |   |   |   |   |