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|        |  |  |  |  |
|   |   |   |   |   |

|        |
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|        |  |
| 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 |

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

|        |
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|        |  |  |  |  |
|   |   |   |   |   |

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|                                    |
|------------------------------------|
|                                    |  |  |  |
|                               |   |   | Page |
| PART I—Financial Information |   |   |
| Item 1.                       | Business |   | 5 |
| Item 1A.                           | Risk Factors |   | 15 |
| Item 1B.                           | Unresolved Staff Comments |   | 23 |
| Item 2.                            | Properties |   | 24 |
| Item 3.                            | Legal Proceedings |   | 25 |
| Item 4.                            | Mine Safety Disclosures |   | 28 |
|                               |   |   |   |
| PART II                       |   |   |
| Item 5.                       | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |   | 29 |
| Item 6.                       | Selected Financial Data |   | 31 |
| Item 7.                       | Management's Discussion and Analysis of Financial Condition and Results of Operations |   | 32 |
| Item 7A.                           | Quantitative and Qualitative Disclosures about Market Risk |   | 66 |
| Item 8.                            | Financial Statements and Supplementary Data |   | 67 |
| Item 9.                       | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |   | 148 |
| Item 9A.                      | Controls and Procedures |   | 148 |
| Item 9B.                           | Other Information |   | 149 |
|                               |   |   |   |
| PART III                      |   |   |
| Item 10.                           | Directors, Executive Officers, and Corporate Governance |   | 150 |
| Item 11.                           | Executive Compensation |   | 150 |
| Item 12.                           | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |   | 150 |
| Item 13.                           | Certain Relationships and Related Transactions, and Director Independence |   | 150 |
| Item 14.                           | Principal Accountant Fees and Services |   | 150 |
|                               |   |   |   |
| PART IV                       |   |   |
| Item 15.                           | Exhibits and Financial Statement Schedules |   | 151 |
|                               | Signatures |   | 152 |
|                               |   |   |   |
| 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 |   |   |

----

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

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

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

|         |                                                                        |
|---------|------------------------------------------------------------------------|
| • | anticipated performance and benefits of our products and technologies; |

|         |                                                                                                                                                                                                                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 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; |

|         |                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | our ability to implement our new strategy focused on establishing a leading market position based on uptime advantage, a customer-centric culture, leading with connected vehicle offerings, providing customers with meaningful innovation and tailored solutions, and developing effective leaders at every level, and the results we expect to achieve from the implementation of our new strategy; |

|         |                                                   |
|---------|---------------------------------------------------|
| • | our expectations related to new product launches; |

|         |                                                                                                                                                       |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | anticipated results from our Return-on-Invested-Capital ("ROIC") methodology and the benchmarking study to create a pathway to achieve profitability; |

|         |                                                                                      |
|---------|--------------------------------------------------------------------------------------|
| • | anticipated results from the realignment of our leadership and management structure; |

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

|         |                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------|
| • | our expectations relating to the termination of our Blue Diamond Truck ("BDT") joint venture with Ford Motor Company ("Ford"); |

|         |                                                                                                                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 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 enterprise-wide 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 expectations and estimates relating to our used truck inventory; |

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

|         |                                                                                   |
|---------|-----------------------------------------------------------------------------------|
| • | liabilities resulting from environmental, health and safety laws and regulations; |

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

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

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

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

|         |                                                                       |
|---------|-----------------------------------------------------------------------|
| • | our expectations relating to impairment of goodwill and other assets; |

|         |                                                   |
|---------|---------------------------------------------------|
| • | 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. |

----

----

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

|         |                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Trucks—We manufacture and distribute Class 4 through 8 trucks and buses in the common carrier, private carrier, government, leasing, construction, energy/petroleum, military vehicle, and student and commercial transportation markets under the International and IC brands. We design and manufacture proprietary diesel engines for our International branded trucks and military vehicles and IC branded buses. |

|         |                                                                                                                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Parts—We support our International brand commercial and military trucks, IC brand buses, Maxxforce and our proprietary engines, as well as our other product lines, by distributing proprietary products together with a wide selection of other standard truck, trailer, and engine service parts. |

|         |                                                                                                                                                                                    |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Financial Services—We provide retail, wholesale, and lease financing of products sold by the Truck and Parts segments, as well as their dealers, within the U.S. and Mexico. |

|    |                                                                                                                                                                       |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| I. | Launch of products and product features desired by our customers—We successfully launched products and product features that improve our customers' businesses. |

|         |                                                                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We launched the purpose-built propane bus for school bus customers who want an alternative fuel engine designed for the needs of the school bus market. |

|         |                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | OnCommand Connection (“OnCommand”), our unique all-makes remote diagnostics system, was tailored for the applications of our bus and truck customers, and is now standard on our vehicles, to achieve more efficient repairs and maintenance, better life-cycle value, and an overall lower cost of ownership.  We now have more than 160,000 vehicles in the OnCommand system. |

----

|         |                                                                               |
|---------|-------------------------------------------------------------------------------|
| • | We introduced the ProStar ES for customers who seek superior fuel efficiency. |

|         |                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------|
| • | We completed the Cummins ISB launch in our Class 6 and 7 medium and Class 8 severe service trucks. |

|     |                                                                                                     |
|-----|-----------------------------------------------------------------------------------------------------|
| II. | Improve quality and uptime—We continued our relentless focus on improving quality and uptime. |

|         |                                                                                                                                                                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We have made great strides in rebuilding our quality operating system, achieving new levels of first time quality and uptime and a reduction in our warranty spend.  In 2013, our warranty expense represented 7.7% of manufacturing revenue and in 2015, it was 3.0%. |

|         |                                                                                                                                                                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We have achieved a significant reduction in dealer dwell time including improvements in dealer claim days and repair time.  We expect that the significant growth in the population of OnCommand vehicles in 2015 will also enable an increase in vehicle uptime by supporting quicker repairs. |

|         |                                                                                                                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | To test our vehicles and innovative technologies, we acquired new proving grounds in New Carlisle, Indiana, which will be a strategic addition to our product development operations and our mission to deliver customer uptime. |

|      |                                                                                                                                                                                                                                                                                                                                                                                                               |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| III. | Deliver on our 2015 plan to reduce costs—Since 2012, we have aggressively managed our Selling, general and administrative and Engineering and product development costs ("structural costs") to right-size them and lower our variable costs.  We made significant progress in 2015, which we expect will pave the way for Navistar to be profitable and free-cash flow positive in the future: |

|         |                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------|
| • | We completed a competitive benchmarking study focused on material, manufacturing, and structural costs. |

|         |                                                                                              |
|---------|----------------------------------------------------------------------------------------------|
| • | We have focused on our procurement and engineering design processes to lower material costs. |

|         |                                                                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We continued to implement cost saving initiatives, including reductions in discretionary spending and employee headcount reductions, resulting in lower structural costs of $114 million in 2015 compared to 2014. |

|         |                                                                                                                                                                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We implemented a product allocation strategy across our plants whereby each facility is primarily focused on a specific platform, allowing for higher levels of manufacturing efficiency than the flexible-factory configuration we have employed for many years. |

|         |                                                             |
|---------|-------------------------------------------------------------|
| • | We reduced non-productive overtime by 43% compared to 2014. |

|         |                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------|
| • | We sold our foundry operations in Waukesha, Wisconsin and closed our foundry in Indianapolis, Indiana. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| IV. | Build sales momentum—In our Core markets, we achieved significant volume growth in Class 6 and 7 medium truck, bus, and dealer-led Class 8 heavy trucks. Growth has been fueled by the completion of the rollout of Selective Catalytic Reduction ("SCR") emissions technology, growing customer confidence, and integrating leading technology with our partners. In 2015, this growth in our Core markets was offset by lower sales from our Global Operations segment, and certain non-Core portions of our Trucks segment. |

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| V. | Improvements in non-Core markets—In addition to improvements in our Core markets, we have experienced improvements in the profitability of our non-Core markets, although revenues in those markets were down, overall, in 2015 compared to 2014.  Navistar entered into a long-term agreement with General Motors Company ("GM") to develop and assemble conventional Class 4 through 5 commercial vehicles launching in 2018.  This relationship is expected to expand Navistar's medium truck product line and leverage our manufacturing capabilities. |

|     |                                                                                                                                                                                                                                                                                                                                      |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| VI. | Improvements in Parts business—Our North American Parts profits increased 22% in 2015 compared to 2014, and overall Parts segment profits increased 12% in 2015 compared to 2014 despite a slight decrease in sales resulting from lower sales by our Blue Diamond Parts ("BDP") joint venture with Ford, among other factors. |

|    |                                                                                                                                                     |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| I. | Implement customer-centric strategy—We are taking steps to become the most customer-centric company in the industry with four key strategies: |

|         |                                                                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Lead in Uptime—We will focus on creating value for our customers by delivering high quality vehicles designed to stay on the road and offering real-time vehicle monitoring and industry-leading fast service and repair. |

|         |                                                                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Build Customer Centric Culture—We will know the customer better than anyone else in order to offer products and services that work for their business. |

|         |                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------|
| • | Lead in Connected Vehicles—We will lead with first-to-market features to expand OnCommand and connected vehicle offerings. |

----

|         |                                                                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Leverage Open Technology—We will leverage relationships with world-class technology partners to provide our customers with meaningful innovation and tailored solutions. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| II. | New Product Launches—The transition to SCR engines is complete and we are in the process of upgrading our entire product line over the next three years. We are developing new trucks and buses to meet the needs of our customers.  We expect to launch the new HX Series, the PayStar replacement, in early 2016 for the construction and vocational markets.  Over the next three years, we will continue to update our entire product line including the introduction of our ProStar replacement, the new LT series. |

|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| III. | Financial performance—Due to our continual efforts to become more competitive in cost and in the marketplace, we have had strong financial improvement in recent years.  To continue on that path, we have already launched customer-centric strategic initiatives and the next phase of our cost alignment actions.  In North America, we completed a benchmarking study that demonstrates that even with the progress we have made to improve our cost structure, there are more opportunities for cost-cutting which we will relentlessly pursue.  As a result of these actions, we expect to improve our liquidity and further improve our financial performance, be in a position to compete more aggressively, and increase investment in products and strategic initiatives. |

|     |                                                                                                                                                                                                                                                                                              |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| IV. | Profitable improvements in market share—We expect the sales momentum that occurred in 2015 will continue with new product offerings, improved quality, competitive pricing, and our customer-centric initiatives.  We expect profitable market share improvements in our Core markets. |

|         |                                                                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The export truck and parts operations, formerly in our Global Operations segment, are now included within the results of our Truck and Parts segments, respectively. |

|         |                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Parts required to support the military truck lines, formerly within our Parts segment, are now included within the results of our Truck segment. |

----

----

----

|                   |
|-------------------|
|                   |  |  |  |  |  |  |
|              | Units |   | Value |
| As of October 31: |   |   | (in billions) |
| 2015              | 24,000 |  |   | $ | 2.0 |  |
| 2014              | 30,000 |  |   | 2.2 |  |

----

|                               |
|-------------------------------|
|                               |  |  |  |  |  |  |  |  |
|                          | As of October 31,   |
|                          | 2015 |   | 2014 |   | 2013 |
| Employees worldwide:          |   |   |   |   |   |
| Total active employees        | 13,200 |  |   | 14,600 |  |   | 15,300 |  |
| Total inactive employees(A)   | 1,200 |  |   | 1,200 |  |   | 1,700 |  |
| Total employees worldwide     | 14,400 |  |   | 15,800 |  |   | 17,000 |  |
| Total active union employees: |   |   |   |   |   |
| Total UAW                     | 2,800 |  |   | 2,700 |  |   | 2,300 |  |
| Total other unions            | 2,800 |  |   | 3,500 |  |   | 3,100 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Employees are considered inactive in certain situations including disability leave, leave of absence, layoffs, and work stoppages. Included within inactive employees are approximately 200 employees, 300 employees, and 500 employees as of October 31, 2015, 2014, and 2013, respectively, represented by the National Automobile, Aerospace and Agricultural Implement Workers of Canada ("CAW") at our Chatham, Ontario heavy truck plant, which was closed in 2011 due to an inability to reach a collective bargaining agreement with the CAW. For more information, see Note 3, Restructurings and Impairments, to the accompanying consolidated financial statements. |

----

----

|                      |
|----------------------|
|                      |  |  |  |  |
| Name                 |   | Age |   | Position with the Company |
|                 |   |   |   |   |
| Troy A. Clarke       |   | 60 |   | President and Chief Executive Officer and Director |
| Walter G. Borst      |   | 53 |   | Executive Vice President and Chief Financial Officer |
| William R. Kozek     |   | 53 |   | President, Truck and Parts |
| Persio V. Lisboa     |   | 50 |   | President, Operations |
| William V. McMenamin |   | 56 |   | President, Financial Services and Treasurer |
| Steven K. Covey      |   | 64 |   | Senior Vice President and General Counsel |
| Samara A. Strycker   |   | 43 |   | Senior Vice President and Corporate Controller |
| Curt A. Kramer       |   | 47 |   | Corporate Secretary |

----

----

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

|         |                                                                                   |
|---------|-----------------------------------------------------------------------------------|
| • | 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 significant 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. |

----

----

----

----

|         |                                                                                      |
|---------|--------------------------------------------------------------------------------------|
| • | 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; |

|         |                                                                                                                                                                                                                                                                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 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; and |

|         |                                                                                                                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | the fact that our ability to utilize our tax net operating losses and research and development tax credits could be adversely affected by a change of control could have an anti-takeover effect. |

----

|         |                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------|
| • | 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. |

----

----

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

|         |                                                                                                |
|---------|------------------------------------------------------------------------------------------------|
| • | 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. |

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

----

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

----

----

----

----

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

----

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

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Year Ended October 31, 2015 |   | High |   | Low |   | Year Ended October 31, 2014 |   | High |   |     Low     |
| 1st Quarter                 |   | $ | 38.05 |  |   | $ | 28.99 |  |   | 1st Quarter |   | $ | 41.57 |  |   | $ | 30.80 |  |
| 2nd Quarter                 |   | 31.28 |  |   | 27.50 |  |   | 2nd Quarter |   | 39.45 |  |   | 29.08 |  |
| 3rd Quarter                 |   | 30.41 |  |   | 16.32 |  |   | 3rd Quarter |   | 39.41 |  |   | 32.45 |  |
| 4th Quarter                 |   | 19.91 |  |   | 11.21 |  |   | 4th Quarter |   | 40.17 |  |   | 29.54 |  |

----

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                        | As of October 31, |
|                                                        | 2010 |   | 2011 |   | 2012 |   | 2013 |   | 2014 |   | 2015 |
| Navistar International Corporation                          | $ | 100 |  |   | $ | 87 |  |   | $ | 39 |  |   | $ | 75 |  |   | $ | 73 |  |   | $ | 26 |  |
| S&P 500 Index - Total Returns                           | 100 |  |   | 108 |  |   | 125 |  |   | 158 |  |   | 186 |  |   | 195 |  |
| S&P Construction, Farm Machinery, and Heavy Truck Index | 100 |  |   | 110 |  |   | 107 |  |   | 116 |  |   | 137 |  |   | 101 |  |

----

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

|                                                                                 |
|---------------------------------------------------------------------------------|
|                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                            | As of and for the Years Ended October 31, |
| (in millions, except per share data)                                            | 2015 |   | 2014 |   | 2013 |   | 2012(A) |   | 2011(B) |
| RESULTS OF OPERATIONS DATA                                                      |   |   |   |   |   |   |   |   |   |
| Sales and revenues, net                                                         | $ | 10,140 |  |   | $ | 10,806 |  |   | $ | 10,775 |  |   | $ | 12,695 |  |   | $ | 13,641 |  |
| Income (loss) from continuing operations before taxes                           | (103 | ) |   | (556 | ) |   | (974 | ) |   | (1,111 | ) |   | 435 |  |
| Income tax benefit (expense)                                                    | (51 | ) |   | (26 | ) |   | 171 |  |   | (1,780 | ) |   | 1,417 |  |
| Income (loss) from continuing operations                                        | (154 | ) |   | (582 | ) |   | (803 | ) |   | (2,891 | ) |   | 1,852 |  |
| Income (loss) from discontinued operations, net of tax                          | 3 |  |   | 3 |  |   | (41 | ) |   | (71 | ) |   | (74 | ) |
| Net income (loss)                                                               | (151 | ) |   | (579 | ) |   | (844 | ) |   | (2,962 | ) |   | 1,778 |  |
| Less: Net income attributable to non-controlling interests                      | 33 |  |   | 40 |  |   | 54 |  |   | 48 |  |   | 55 |  |
| Net income (loss) attributable to Navistar International Corporation            | $ | (184 | ) |   | $ | (619 | ) |   | $ | (898 | ) |   | $ | (3,010 | ) |   | $ | 1,723 |  |
| Amounts attributable to Navistar International Corporation common shareholders: |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing operations, net of tax                            | $ | (187 | ) |   | $ | (622 | ) |   | $ | (857 | ) |   | $ | (2,939 | ) |   | $ | 1,797 |  |
| Income (loss) from discontinued operations, net of tax                          | 3 |  |   | 3 |  |   | (41 | ) |   | (71 | ) |   | (74 | ) |
| Net income (loss)                                                               | $ | (184 | ) |   | $ | (619 | ) |   | $ | (898 | ) |   | $ | (3,010 | ) |   | $ | 1,723 |  |
| Basic earnings (loss) per share:                                                |   |   |   |   |   |   |   |   |   |
| Continuing operations                                                           | $ | (2.29 | ) |   | $ | (7.64 | ) |   | $ | (10.66 | ) |   | $ | (42.53 | ) |   | $ | 24.68 |  |
| Discontinued operations                                                         | 0.04 |  |   | 0.04 |  |   | (0.51 | ) |   | (1.03 | ) |   | (1.02 | ) |
| Net income (loss)                                                               | $ | (2.25 | ) |   | $ | (7.60 | ) |   | $ | (11.17 | ) |   | $ | (43.56 | ) |   | $ | 23.66 |  |
| Diluted earnings (loss) per share:                                              |   |   |   |   |   |   |   |   |   |
| Continuing operations                                                           | $ | (2.29 | ) |   | $ | (7.64 | ) |   | $ | (10.66 | ) |   | $ | (42.53 | ) |   | $ | 23.61 |  |
| Discontinued operations                                                         | 0.04 |  |   | 0.04 |  |   | (0.51 | ) |   | (1.03 | ) |   | (0.97 | ) |
| Net income (loss)                                                               | $ | (2.25 | ) |   | $ | (7.60 | ) |   | $ | (11.17 | ) |   | $ | (43.56 | ) |   | $ | 22.64 |  |
| Weighted average number of shares outstanding:                                  |   |   |   |   |   |   |   |   |   |
| Basic                                                                           | 81.6 |  |   | 81.4 |  |   | 80.4 |  |   | 69.1 |  |   | 72.8 |  |
| Diluted                                                                         | 81.6 |  |   | 81.4 |  |   | 80.4 |  |   | 69.1 |  |   | 76.1 |  |
| BALANCE SHEET DATA                                                              |   |   |   |   |   |   |   |   |   |  |
| Total assets                                                                    | $ | 6,692 |  |   | $ | 7,443 |  |   | $ | 8,315 |  |   | $ | 9,102 |  |   | $ | 12,291 |  |
| Long-term debt:(C)                                                              |   |   |   |   |   |   |   |   |   |
| Manufacturing operations                                                        | $ | 3,095 |  |   | $ | 2,858 |  |   | $ | 2,561 |  |   | $ | 2,733 |  |   | $ | 1,881 |  |
| Financial services operations                                                   | 1,093 |  |   | 1,071 |  |   | 1,361 |  |   | 833 |  |   | 1,596 |  |
| Total long-term debt                                                            | $ | 4,188 |  |   | $ | 3,929 |  |   | $ | 3,922 |  |   | $ | 3,566 |  |   | $ | 3,477 |  |
| Redeemable equity securities                                                    | $ | — |  |   | $ | 2 |  |   | $ | 4 |  |   | $ | 5 |  |   | $ | 5 |  |

|     |                                                                                                                                                                                  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B) | In 2011, the Company recognized an income tax benefit of $1.5 billion from the release of a portion of our deferred tax valuation allowance on our U.S. deferred tax assets. |

----

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

|         |                                                                                                                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Continuing Operations Results—Consolidated net sales and revenues were $10.1 billion in 2015, down 6% compared to 2014.  The 6% decrease reflects lower sales from our Global Operations and Truck segments. |

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Engine Strategy and Emissions Standards Compliance—We believe that our strategy of integrating our engines with the Cummins’ SCR after-treatment solution, coupled with offering the Cummins ISB and ISX engines, positions the Company for future success. We expect this strategy will help to address uncertainty around the continuation of product offerings and the deterioration of market share. The Company has incurred significant research and development and tooling costs to design and produce our product lines to meet the EPA and CARB on-highway heavy-duty diesel ("HDD") emissions standards, including OBD requirements. These emissions standards have and will continue to result in significant increases in costs of our products. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Core Truck Market—The Core truck markets in which we compete are typically cyclical in nature and are strongly influenced by macroeconomic factors such as industrial production, demand for durable goods, construction spending, business investment, oil prices, and consumer confidence and spending, among others. Industry volume is expected to peak in 2015 for this cycle, and we anticipate an industry volume decline in 2016.  However, as general economic and industry-specific indicators are positive, we anticipate a relatively smaller decline in 2016 compared to the larger volume declines experienced after prior cycle peaks. In addition, better new truck fuel economy along with rising freight rates and improved trucker profits show the trucking industry remains healthy.  We anticipate that Core markets retail deliveries will range between 350,000 units to 380,000 units for 2016. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Used Truck inventory - During 2015, our used truck inventory increased to approximately $390 million from $320 million in 2014 (offset by reserves of $110 million and $40 million, respectively, and including approximately $3 million in our Financial Services segment, at the respective dates) due, in part, to an increase in used truck receipts coupled with a decrease in used truck sales.  Throughout 2015, we continued to seek alternative channels to sell our used trucks, including certain export markets which result in a lower price point as compared to our domestic channels. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Worldwide Engine Unit Sales—Our worldwide engine unit sales were 94,600 units in 2015, 138,700 units in 2014, and 185,400 units in 2013. Our worldwide engine unit sales were primarily from our Global Operations segment to external customers in South America and our Truck segment, as engines are integrated into vehicle production. Principally in our South America operations, we also made certain other OEM sales for the contract manufacturing of engines for commercial, consumer, and specialty vehicle products. We expect our South American operations to continue to be a key contributor to the Global Operations segment and expect improvements from our OEM sales for commercial, consumer, and specialty vehicle |

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Military Sales—Our U.S. military sales were $203 million in 2015, compared to $149 million in 2014 and $541 million in 2013. The 2015 military sales primarily consisted of refurbishment and upgrades of government owned MaxxPro vehicles to “like new” condition, upgrade kits, spare parts, and technical support services. The 2014 military sales primarily consisted of upgrade kits, spare parts and technical support services. The 2013 military sales primarily consisted of upgrading Mine Resistant Ambush Protected ("MRAP") vehicles with our rolling chassis solution and retrofit kits. In 2016, we expect our U.S. military sales to be slightly higher than in 2015 due to a recent new vehicle contract award, additional refurbishment and upgrades of government owned MaxxPro vehicles, and technical support services. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 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. We recognized adjustments to pre-existing warranties of $1 million in 2015 compared to adjustments of $55 million in 2014 and $404 million in 2013.  In future periods, we could experience an increase in warranty spend 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. For more information, see Note 1, Summary of Significant Accounting Policies, to the accompanying consolidated financial statements. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Structural 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 have implemented a number of cost saving initiatives, continued reductions in discretionary spending and employee headcount reductions. As a result, our structural costs decreased by $114 million in 2015, compared to 2014, and by $311 million in 2014, compared to 2013. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Core-Business Evaluation—We are focused on improving our Truck and Parts businesses in our Core markets. In 2012, we implemented an ROIC methodology, combined with an assessment of the strategic fit to our core business, to identify areas that are under-performing or are non-strategic. We are working to fix, divest or close under-performing and non-strategic areas and expect to realize incremental benefits from these actions in the near future. In addition, we are restructuring our business and rationalizing our Manufacturing operations in an effort to optimize our cost structure. This effort is ongoing, and may lead to additional divestitures of businesses or discontinuing engineering programs that are outside of our core operations or are not performing to our expectations. |

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Global Economy—The global economy, and in particular the U.S. economy, is continuing to recover, and we believe that the related financial markets have mostly stabilized. The economy in Brazil, however, is currently undergoing a period of economic uncertainty and the related financial markets have been unstable.  Despite the general economic recovery, the impact of the economic recession and financial turmoil on certain 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 and we could continue to experience pressure on the carrying values of our assets if conditions persist for an extended period of time. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 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. The EPA and NHTSA issued final rules for GHG emissions and fuel economy on September 15, 2011. Under these rules, GHG emission certification is required for vehicles and engines beginning in calendar year 2014 and will be fully implemented in model year 2017. The agencies' stated goals for these rules were to increase the use of currently existing technologies. The Company has complied with these rules through use of existing technologies and implementation of emerging technologies as they become available. Several of the Company's vehicles were certified early for the 2013 model year and the majority of our remaining vehicles and all engines were certified in 2014.  The next phase of federal GHG emission and fuel economy regulations, anticipated for model year 2021, is also under discussion among the relevant agencies, manufacturers, including the Company, and other stakeholders. Canada adopted its version of fuel economy and/or GHG emission regulations in February 2013. These regulations are substantially aligned with U.S. fuel economy and GHG emission regulations. In December 2014, California adopted GHG emission rules for heavy duty vehicles equivalent to EPA rules and an optional lower emission standard for nitrogen oxide ("NOx") in California. California has stated its intention to lower NOx standards for California certified engines and has requested that the EPA lower its standards. We expect that heavy-duty vehicle and engine fuel economy and GHG emissions rules will be under consideration in other jurisdictions in the future. These standards will impact development and production costs for vehicles and engines. There will also be administrative costs arising from the implementation of the rules. |

----

|                                                            |
|------------------------------------------------------------|
|                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except per share data and % change)          | 2015 |   | 2014 |   | Change |   | % Change |
| Sales and revenues, net                                    | $ | 10,140 |  |   | $ | 10,806 |  |   | $ | (666 | ) |   | (6 | )% |
| Costs of products sold                                     | 8,670 |  |   | 9,534 |  |   | (864 | ) |   | (9 | )% |
| Restructuring charges                                      | 76 |  |   | 42 |  |   | 34 |  |   | 81 |  % |
| Asset impairment charges                                   | 30 |  |   | 183 |  |   | (153 | ) |   | (84 | )% |
| Selling, general and administrative expenses               | 908 |  |   | 979 |  |   | (71 | ) |   | (7 | )% |
| Engineering and product development costs                  | 288 |  |   | 331 |  |   | (43 | ) |   | (13 | )% |
| Interest expense                                           | 307 |  |   | 314 |  |   | (7 | ) |   | (2 | )% |
| Other income, net                                          | (30 | ) |   | (12 | ) |   | (18 | ) |   | N.M |  |
| Total costs and expenses                                   | 10,249 |  |   | 11,371 |  |   | (1,122 | ) |   | (10 | )% |
| Equity in income of non-consolidated affiliates            | 6 |  |   | 9 |  |   | (3 | ) |   | (33 | )% |
| Loss from continuing operations before income taxes        | (103 | ) |   | (556 | ) |   | 453 |  |   | (81 | )% |
| Income tax benefit (expense)                               | (51 | ) |   | (26 | ) |   | (25 | ) |   | 96 |  % |
| Loss from continuing operations                            | (154 | ) |   | (582 | ) |   | 428 |  |   | (74 | )% |
| Less: Net income attributable to non-controlling interests | 33 |  |   | 40 |  |   | (7 | ) |   | (18 | )% |
| Loss from continuing operations(A)                         | (187 | ) |   | (622 | ) |   | 435 |  |   | (70 | )% |
| Income from discontinued operations, net of tax            | 3 |  |   | 3 |  |   | — |  |   | — |  % |
| Net loss(A)                                                | $ | (184 | ) |   | $ | (619 | ) |   | $ | 435 |  |   | (70 | )% |
|                                                       |   |   |   |   |   |   |   |
| Diluted earnings (loss) per share:(A)                      |   |   |   |   |   |   |   |
| Continuing operations                                      | $ | (2.29 | ) |   | $ | (7.64 | ) |   | $ | 5.35 |  |   | (70 | )% |
| Discontinued operations                                    | 0.04 |  |   | 0.04 |  |   | — |  |   | — |  % |
|                                                       | $ | (2.25 | ) |   | $ | (7.60 | ) |   | $ | 5.35 |  |   | (70 | )% |
| Diluted weighted average shares outstanding                | 81.6 |  |   | 81.4 |  |   | 0.2 |  |   | — |  % |

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

|     |                                                             |
|-----|-------------------------------------------------------------|
| (A) | Amounts attributable to Navistar International Corporation. |

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change) | 2015 |   | 2014 |   | Change |   | % Change |
| Truck                          | $ | 7,213 |  |   | $ | 7,473 |  |   | $ | (260 | ) |   | (3 | )% |
| Parts                          | 2,513 |  |   | 2,551 |  |   | (38 | ) |   | (1 | )% |
| Global Operations              | 506 |  |   | 940 |  |   | (434 | ) |   | (46 | )% |
| Financial Services             | 241 |  |   | 232 |  |   | 9 |  |   | 4 |  % |
| Corporate and Eliminations     | (333 | ) |   | (390 | ) |   | 57 |  |   | (15 | )% |
| Total                          | $ | 10,140 |  |   | $ | 10,806 |  |   | $ | (666 | ) |   | (6 | )% |

----

----

----

|         |                                                                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The export truck and parts operations, formerly in our Global Operations segment, are now included within the results of our Truck and Parts segments, respectively. |

|         |                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Parts required to support the military truck lines, formerly within our Parts segment, are now included within the results of our Truck segment. |

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change) | 2015 |   | 2014 |   | Change |   | % Change |
| Truck segment sales, net       | $ | 7,213 |  |   | $ | 7,473 |  |   | $ | (260 | ) |   | (3 | )% |
| Truck segment loss             | (141 | ) |   | (380 | ) |   | 239 |  |   | (63 | )% |

----

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change) | 2015 |   | 2014 |   | Change |   | % Change |
| Parts segment sales, net       | $ | 2,513 |  |   | $ | 2,551 |  |   | $ | (38 | ) |   | (1 | )% |
| Parts segment profit           | 592 |  |   | 528 |  |   | 64 |  |   | 12 |  % |

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change)       | 2015 |   | 2014 |   | Change |   | % Change |
| Global Operations segment sales, net | $ | 506 |  |   | $ | 940 |  |   | $ | (434 | ) |   | (46 | )% |
| Global Operations segment loss       | (67 | ) |   | (274 | ) |   | 207 |  |   | (76 | )% |

----

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change)           | 2015 |   | 2014 |   | Change |   | % Change |
| Financial Services segment revenues, net | $ | 241 |  |   | $ | 232 |  |   | $ | 9 |  |   | 4 | % |
| Financial Services segment profit        | 98 |  |   | 97 |  |   | 1 |  |   | 1 | % |

----

|                                                            |
|------------------------------------------------------------|
|                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                       |   |   |   |   |   |   | % Change |
| (in millions, except per share data and % change)          | 2014 |   | 2013 |   | Change |   |
| Sales and revenues, net                                    | $ | 10,806 |  |   | $ | 10,775 |  |   | $ | 31 |  |   | — |  % |
| Costs of products sold                                     | 9,534 |  |   | 9,761 |  |   | (227 | ) |   | (2 | )% |
| Restructuring charges                                      | 42 |  |   | 25 |  |   | 17 |  |   | 68 |  % |
| Asset impairment charges                                   | 183 |  |   | 97 |  |   | 86 |  |   | 89 |  % |
| Selling, general and administrative expenses               | 979 |  |   | 1,215 |  |   | (236 | ) |   | (19 | )% |
| Engineering and product development costs                  | 331 |  |   | 406 |  |   | (75 | ) |   | (18 | )% |
| Interest expense                                           | 314 |  |   | 321 |  |   | (7 | ) |   | (2 | )% |
| Other income, net                                          | (12 | ) |   | (65 | ) |   | 53 |  |   | (82 | )% |
| Total costs and expenses                                   | 11,371 |  |   | 11,760 |  |   | (389 | ) |   | (3 | )% |
| Equity in income of non-consolidated affiliates            | 9 |  |   | 11 |  |   | (2 | ) |   | (18 | )% |
| Loss from continuing operations before income taxes        | (556 | ) |   | (974 | ) |   | 418 |  |   | (43 | )% |
| Income tax benefit (expense)                               | (26 | ) |   | 171 |  |   | (197 | ) |   | N.M. |  |
| Loss from continuing operations                            | (582 | ) |   | (803 | ) |   | 221 |  |   | (28 | )% |
| Less: Net income attributable to non-controlling interests | 40 |  |   | 54 |  |   | (14 | ) |   | (26 | )% |
| Loss from continuing operations(A)                         | (622 | ) |   | (857 | ) |   | 235 |  |   | (27 | )% |
| Income (loss) from discontinued operations, net of tax     | 3 |  |   | (41 | ) |   | 44 |  |   | N.M. |  |
| Net loss(A)                                                | $ | (619 | ) |   | $ | (898 | ) |   | $ | 279 |  |   | (31 | )% |
|                                                       |   |   |   |   |   |   |   |
| Diluted earnings (loss) per share:(A)                      |   |   |   |   |   |   |   |
| Continuing operations                                      | $ | (7.64 | ) |   | $ | (10.66 | ) |   | $ | 3.02 |  |   | (28 | )% |
| Discontinued operations                                    | 0.04 |  |   | (0.51 | ) |   | 0.55 |  |   | N.M. |  |
|                                                       | $ | (7.60 | ) |   | $ | (11.17 | ) |   | $ | 3.57 |  |   | (32 | )% |
| Diluted weighted average shares outstanding                | 81.4 |  |   | 80.4 |  |   | 1.0 |  |   | 1 |  % |

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

|     |                                                             |
|-----|-------------------------------------------------------------|
| (A) | Amounts attributable to Navistar International Corporation. |

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                           |   |   |   |   |   |   | % Change |
| (in millions, except % change) | 2014 |   | 2013 |   | Change |   |
| Truck                          | $ | 7,473 |  |   | $ | 7,291 |  |   | $ | 182 |  |   | 2 |  % |
| Parts                          | 2,551 |  |   | 2,510 |  |   | 41 |  |   | 2 |  % |
| Global Operations              | 940 |  |   | 1,197 |  |   | (257 | ) |   | (21 | )% |
| Financial Services             | 232 |  |   | 233 |  |   | (1 | ) |   | — |  % |
| Corporate and Eliminations     | (390 | ) |   | (456 | ) |   | 66 |  |   | (14 | )% |
| Total                          | $ | 10,806 |  |   | $ | 10,775 |  |   | $ | 31 |  |   | — |  % |

----

----

----

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change) | 2014 |   | 2013 |   | Change |   | % Change |
| Truck segment sales, net       | $ | 7,473 |  |   | $ | 7,291 |  |   | $ | 182 |  |   | 2 |  % |
| Truck segment loss             | (380 | ) |   | (883 | ) |   | 503 |  |   | (57 | )% |

----

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                           |   |   |   |   |   |   | %           Change |
| (in millions, except % change) | 2014 |   | 2013 |   | Change |   |
| Parts segment sales, net       | $ | 2,551 |  |   | $ | 2,510 |  |   | $ | 41 |  |   | 2 | % |
| Parts segment profit           | 528 |  |   | 463 |  |   | 65 |  |   | 14 | % |

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                 |   |   |   |   |   |   | %               Change |
| (in millions, except % change)       | 2014 |   | 2013 |   | Change |   |
| Global Operations segment sales, net | $ | 940 |  |   | $ | 1,197 |  |   | $ | (257 | ) |   | (21 | )% |
| Global Operations segment loss       | (274 | ) |   | (12 | ) |   | (262 | ) |   | N.M. |  |

----

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     |   |   |   |   |   |   | %          Change |
| (in millions, except % change)           | 2014 |   | 2013 |   | Change |   |
| Financial Services segment revenues, net | $ | 232 |  |   | $ | 233 |  |   | $ | (1 | ) |   | — |  % |
| Financial Services segment profit        | 97 |  |   | 81 |  |   | 16 |  |   | 20 |  % |

----

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                             |   |   | 2015 vs 2014 |   | 2014 vs 2013 |
| (in units)                       | 2015 |   | 2014 |   | 2013 |   | Change |   | % Change |   | Change |   | % Change |
| Core Markets (U.S. and Canada)   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| School buses(A)                  | 29,600 |  |   | 28,200 |  |   | 26,600 |  |   | 1,400 |  |   | 5 | % |   | 1,600 |  |   | 6 | % |
| Class 6 and 7 medium trucks      | 80,000 |  |   | 71,000 |  |   | 64,000 |  |   | 9,000 |  |   | 13 | % |   | 7,000 |  |   | 11 | % |
| Class 8 heavy trucks             | 218,200 |  |   | 186,700 |  |   | 162,700 |  |   | 31,500 |  |   | 17 | % |   | 24,000 |  |   | 15 | % |
| Class 8 severe service trucks(B) | 60,800 |  |   | 56,200 |  |   | 48,000 |  |   | 4,600 |  |   | 8 | % |   | 8,200 |  |   | 17 | % |
| Total Core markets               | 388,600 |  |   | 342,100 |  |   | 301,300 |  |   | 46,500 |  |   | 14 | % |   | 40,800 |  |   | 14 | % |
| Combined class 8 trucks          | 279,000 |  |   | 242,900 |  |   | 210,700 |  |   | 36,100 |  |   | 15 | % |   | 32,200 |  |   | 15 | % |
| Navistar Core retail deliveries  | 62,600 |  |   | 59,800 |  |   | 55,500 |  |   | 2,800 |  |   | 5 | % |   | 4,300 |  |   | 8 | % |

|     |                                                                                                                            |
|-----|----------------------------------------------------------------------------------------------------------------------------|
| (A) | The School bus retail market deliveries include buses classified as B, C, and D and are being reported on a one-month lag. |

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

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |  |  |
|                             | 2015 |   | 2014 |   | 2013 |
| Core Markets (U.S. and Canada)   |   |   |   |   |   |
| School buses(A)                  | 38 | % |   | 35 | % |   | 37 | % |
| Class 6 and 7 medium trucks      | 23 | % |   | 21 | % |   | 24 | % |
| Class 8 heavy trucks             | 11 | % |   | 14 | % |   | 12 | % |
| Class 8 severe service trucks(B) | 15 | % |   | 16 | % |   | 22 | % |
| Total Core Markets               | 16 | % |   | 17 | % |   | 18 | % |
| Combined class 8 trucks          | 12 | % |   | 14 | % |   | 15 | % |

|     |                                                                                                                            |
|-----|----------------------------------------------------------------------------------------------------------------------------|
| (A) | The School bus retail market deliveries include buses classified as B, C, and D and are being reported on a one-month lag. |

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

----

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                             |   |   |   |   |   |   | 2015 vs 2014 |   | 2014 vs 2013 |
| (in units)                       | 2015 |   | 2014 |   | 2013 |   | Change |   | % Change |   | Change |   | % Change |
| Core Markets (U.S. and Canada)   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| School buses(A)                  | 11,400 |  |   | 10,300 |  |   | 10,200 |  |   | 1,100 |  |   | 11 |  % |   | 100 |  |   | 1 | % |
| Class 6 and 7 medium trucks      | 16,700 |  |   | 18,300 |  |   | 15,300 |  |   | (1,600 | ) |   | (9 | )% |   | 3,000 |  |   | 20 | % |
| Class 8 heavy trucks             | 26,700 |  |   | 28,900 |  |   | 24,500 |  |   | (2,200 | ) |   | (8 | )% |   | 4,400 |  |   | 18 | % |
| Class 8 severe service trucks(B) | 9,100 |  |   | 9,300 |  |   | 9,000 |  |   | (200 | ) |   | (2 | )% |   | 300 |  |   | 3 | % |
| Total Core Markets               | 63,900 |  |   | 66,800 |  |   | 59,000 |  |   | (2,900 | ) |   | (4 | )% |   | 7,800 |  |   | 13 | % |
| Combined class 8 trucks          | 35,800 |  |   | 38,200 |  |   | 33,500 |  |   | (2,400 | ) |   | (6 | )% |   | 4,700 |  |   | 14 | % |

|     |                                                                                                                            |
|-----|----------------------------------------------------------------------------------------------------------------------------|
| (A) | The School bus retail market deliveries include buses classified as B, C, and D and are being reported on a one-month lag. |

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

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                             |   |   |   |   |   |   | 2015 vs 2014 |   | 2014 vs 2013 |
| (in units)                       | 2015 |   | 2014 |   | 2013 |   | Change |   | % Change |   | Change |   | % Change |
| Core Markets (U.S. and Canada)   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| School buses(A)                  | 1,400 |  |   | 2,400 |  |   | 3,000 |  |   | (1,000 | ) |   | (42 | )% |   | (600 | ) |   | (20 | )% |
| Class 6 and 7 medium trucks      | 4,800 |  |   | 7,100 |  |   | 4,800 |  |   | (2,300 | ) |   | (32 | )% |   | 2,300 |  |   | 48 |  % |
| Class 8 heavy trucks             | 13,900 |  |   | 12,100 |  |   | 9,600 |  |   | 1,800 |  |   | 15 |  % |   | 2,500 |  |   | 26 |  % |
| Class 8 severe service trucks(B) | 2,100 |  |   | 2,300 |  |   | 1,800 |  |   | (200 | ) |   | (9 | )% |   | 500 |  |   | 28 |  % |
| Total Core Markets               | 22,200 |  |   | 23,900 |  |   | 19,200 |  |   | (1,700 | ) |   | (7 | )% |   | 4,700 |  |   | 24 |  % |
| Combined class 8 trucks          | 16,000 |  |   | 14,400 |  |   | 11,400 |  |   | 1,600 |  |   | 11 |  % |   | 3,000 |  |   | 26 |  % |

|     |                                                                                                                            |
|-----|----------------------------------------------------------------------------------------------------------------------------|
| (A) | The School bus retail market deliveries include buses classified as B, C, and D and are being reported on a one-month lag. |

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

----

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  |   |   |   |   |   |   | 2015 vs 2014 |   | 2014 vs 2013 |
| (in units)                            | 2015 |   | 2014 |   | 2013 |   | Change |   | % Change |   | Change |   | % Change |
| Core Markets (U.S. and Canada)        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| School buses(A)                       | 11,900 |  |   | 10,800 |  |   | 9,500 |  |   | 1,100 |  |   | 10 |  % |   | 1,300 |  |   | 14 |  % |
| Class 6 and 7 medium trucks      | 18,800 |  |   | 16,000 |  |   | 14,700 |  |   | 2,800 |  |   | 18 |  % |   | 1,300 |  |   | 9 |  % |
| Class 8 heavy trucks             | 25,000 |  |   | 26,000 |  |   | 21,100 |  |   | (1,000 | ) |   | (4 | )% |   | 4,900 |  |   | 23 |  % |
| Class 8 severe service trucks(B) | 9,300 |  |   | 8,700 |  |   | 9,800 |  |   | 600 |  |   | 7 |  % |   | (1,100 | ) |   | (11 | )% |
| Total Core Markets                    | 65,000 |  |   | 61,500 |  |   | 55,100 |  |   | 3,500 |  |   | 6 |  % |   | 6,400 |  |   | 12 |  % |
| Non "Core" military                   | 100 |  |   | 100 |  |   | 800 |  |   | — |  |   | — |  % |   | (700 | ) |   | (88 | )% |
| Other markets(C)                      | 19,400 |  |   | 28,400 |  |   | 28,500 |  |   | (9,000 | ) |   | (32 | )% |   | (100 | ) |   | — |  % |
| Total worldwide units(D)              | 84,500 |  |   | 90,000 |  |   | 84,400 |  |   | (5,500 | ) |   | (6 | )% |   | 5,600 |  |   | 7 |  % |
| Combined class 8 trucks               | 34,300 |  |   | 34,700 |  |   | 30,900 |  |   | (400 | ) |   | (1 | )% |   | 3,800 |  |   | 12 |  % |

|     |                                                                                                                            |
|-----|----------------------------------------------------------------------------------------------------------------------------|
| (A) | The School bus retail market deliveries include buses classified as B, C, and D and are being reported on a one-month lag. |

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

|     |                                                                                                                                                                                                            |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (C) | Other markets primarily consist of Export Truck and Mexico and also include chargeouts related to BDT of 6,000 units, 11,000 units, and 9,900 units during 2015, 2014, and 2013, respectively. |

|     |                                                                                                                                                                                                                                                                                                        |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (D) | Excludes chargeouts related to: (i) RV towables of 2,200 units during 2013, and (ii) units related to Monaco and WCC as a result of being classified as discontinued operations of 400 units during 2013. There were no units related to RV towables, Monaco and WCC in 2014 and 2015. |

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                       |   |   |   |   |   |   | 2015 vs 2014 |   | 2014 vs 2013 |
| (in units)                 | 2015 |   | 2014 |   | 2013 |   | Change |   | % Change |   | Change |   | % Change |
| OEM sales-South America(A) | 53,800 |  |   | 89,100 |  |   | 116,200 |  |   | (35,300 | ) |   | (40 | )% |   | (27,100 | ) |   | (23 | )% |
| Intercompany sales         | 31,600 |  |   | 37,900 |  |   | 59,900 |  |   | (6,300 | ) |   | (17 | )% |   | (22,000 | ) |   | (37 | )% |
| Other OEM sales            | 9,200 |  |   | 11,700 |  |   | 9,300 |  |   | (2,500 | ) |   | (21 | )% |   | 2,400 |  |   | 26 |  % |
| Total sales                | 94,600 |  |   | 138,700 |  |   | 185,400 |  |   | (44,100 | ) |   | (32 | )% |   | (46,700 | ) |   | (25 | )% |

|     |                                                                                                                                      |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Includes shipments related to Ford of 1,600 units during 2013. There were no shipments related to Ford in 2014 and 2015. |

----

|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |  |  |  |  |  |  |  |  |
|                                                          | As of October 31, |
| (in millions)                                                 | 2015 |   | 2014 |   | 2013 |
| Consolidated cash and cash equivalents                        | $ | 912 |  |   | $ | 497 |  |   | $ | 755 |  |
| Consolidated marketable securities                            | 159 |  |   | 605 |  |   | 830 |  |
| Consolidated cash, cash equivalents and marketable securities | $ | 1,071 |  |   | $ | 1,102 |  |   | $ | 1,585 |  |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |
|                                                         | Year Ended October 31, 2015 |
| (in millions)                                                | ManufacturingOperations |   | Financial Services Operations and Adjustments |   | Condensed Consolidated Statement of Cash Flows |
| Net cash provided by operating activities                    | $ | 35 |  |   | $ | 11 |  |   | $ | 46 |  |
| Net cash provided by (used in) investing activities          | 346 |  |   | (30 | ) |   | 316 |  |
| Net cash provided by (used in) financing activities          | 126 |  |   | (28 | ) |   | 98 |  |
| Effect of exchange rate changes on cash and cash equivalents | (70 | ) |   | 25 |  |   | (45 | ) |
| Increase (decrease) in cash and cash equivalents             | 437 |  |   | (22 | ) |   | 415 |  |
| Cash and cash equivalents at beginning of the year           | 440 |  |   | 57 |  |   | 497 |  |
| Cash and cash equivalents at end of the year                 | $ | 877 |  |   | $ | 35 |  |   | $ | 912 |  |

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |
|                                                              | Year Ended October 31, 2014 |
| (in millions)                                                | ManufacturingOperations |  | Financial Services Operations and Adjustments |  | Condensed Consolidated Statement of Cash Flows |
| Net cash used in operating activities                        | $ | (138 | ) |  | $ | (198 | ) |  | $ | (336 | ) |
| Net cash provided by (used in) investing activities          | 112 |  |  | (187 | ) |  | (75 | ) |
| Net cash provided by (used in) financing activities          | (240 | ) |  | 419 |  |  | 179 |  |
| Effect of exchange rate changes on cash and cash equivalents | (21 | ) |  | (5 | ) |  | (26 | ) |
| Increase (decrease) in cash and cash equivalents             | (287 | ) |  | 29 |  |  | (258 | ) |
| Cash and cash equivalents at beginning of the year           | 727 |  |  | 28 |  |  | 755 |  |
| Cash and cash equivalents at end of the year                 | $ | 440 |  |  | $ | 57 |  |  | $ | 497 |  |

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |
|                                                         | Year Ended October 31, 2013 |
| (in millions)                                                | ManufacturingOperations |   | Financial Services Operations and Adjustments |   | Condensed Consolidated Statement of Cash Flows |
| Net cash provided by (used in) operating activities          | $ | (238 | ) |   | $ | 338 |  |   | $ | 100 |  |
| Net cash used in investing activities                        | (753 | ) |   | (57 | ) |   | (810 | ) |
| Net cash provided by (used in) financing activities          | 677 |  |   | (284 | ) |   | 393 |  |
| Effect of exchange rate changes on cash and cash equivalents | (18 | ) |   | 3 |  |   | (15 | ) |
| Decrease in cash and cash equivalents                        | (332 | ) |   | — |  |   | (332 | ) |
| Cash and cash equivalents at beginning of the year           | 1,059 |  |   | 28 |  |   | 1,087 |  |
| Cash and cash equivalents at end of the year                 | $ | 727 |  |   | $ | 28 |  |   | $ | 755 |  |

----

----

----

|               |
|---------------|
|               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Company  |   | Instrument Type |   | Total  Amount   |   | Purpose of Funding |   | AmountUtilized |   | Matures or        Expires |
| (in millions) |   |   |   |   |   |   |   |   |   |
| NFSC          |   | Revolving wholesale note trust |   | $ | 875 |  |   | Eligible wholesale notes(B) |   | $ | 745 |  |   | 2016-2017 |
| NFC           |   | Credit agreement(A) |   | 747 |  |   | Finance receivables and general corporate purposes |   | 628 |  |   | 2017 |
| NFM           |   | Bank lines |   | 478 |  |   | Finance receivables and general corporate purposes |   | 435 |  |   | 2016-2020 |
| TRAC          |   | Revolving retail accounts |   | 100 |  |   | Eligible retail accounts |   | 26 |  |   | 2016 |

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

|     |                                             |
|-----|---------------------------------------------|
| (B) | Includes $10 million of intercompany notes. |

----

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                   | 2015 |  | 2014 |  | 2013 |
| Loss from continuing operations attributable to NIC, net of tax | $ | (187 | ) |  | $ | (622 | ) |  | $ | (857 | ) |
| Plus:                                                           |  |  |  |  |  |  |  |  |
| Depreciation and amortization expense                           | 281 |  |  | 332 |  |  | 417 |  |
| Manufacturing interest expense(A)                               | 233 |  |  | 243 |  |  | 251 |  |
| Less:                                                           |  |  |  |  |  |  |  |  |
| Income tax benefit (expense)                                    | (51 | ) |  | (26 | ) |  | 171 |  |
| EBITDA                                                          | $ | 378 |  |  | $ | (21 | ) |  | $ | (360 | ) |

|     |                                                                                                                                                                                                                                                                                                                                                     |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Manufacturing interest expense is the net interest expense primarily generated for borrowings that support the manufacturing and corporate operations, adjusted to eliminate intercompany interest expense with our Financial Services segment. The following table reconciles Manufacturing interest expense to the consolidated interest expense: |

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                              | 2015 |  | 2014 |  | 2013 |
| Interest expense                           | $ | 307 |  |  | $ | 314 |  |  | $ | 321 |  |
| Less:  Financial services interest expense | 74 |  |  | 71 |  |  | 70 |  |
| Manufacturing interest expense             | $ | 233 |  |  | $ | 243 |  |  | $ | 251 |  |

----

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                               | 2015 |  | 2014 |  | 2013 |
| EBITDA (reconciled above)                                   | $ | 378 |  |  | $ | (21 | ) |  | $ | (360 | ) |
| Less significant items of:                                  |  |  |  |  |  |  |  |  |
| Brazil impairment charges(A)                                | 10 |  |  | 149 |  |  | — |  |
| Adjustments to pre-existing warranties(B)                   | 4 |  |  | 55 |  |  | 404 |  |
| Brazil truck business actions(C)                            | 6 |  |  | 29 |  |  | — |  |
| North America asset impairment charges(D)                   | 20 |  |  | 24 |  |  | 97 |  |
| Mahindra Joint Venture divestiture(E)                       | — |  |  | — |  |  | (26 | ) |
| Legal settlement(F)                                         | — |  |  | — |  |  | (35 | ) |
| Restructuring of North American manufacturing operations(G) | — |  |  | 41 |  |  | — |  |
| Cost reduction and other strategic initiatives(H)           | 72 |  |  | 17 |  |  | 9 |  |
| Debt refinancing charges(I)                                 | 14 |  |  | 12 |  |  | 13 |  |
| Gain on settlement(J)                                       | (10 | ) |  | — |  |  | — |  |
| Total adjustments                                           | 116 |  |  | 327 |  |  | 462 |  |
|                                                             |  |  |  |  |  |
| Adjusted EBITDA                                             | $ | 494 |  |  | $ | 306 |  |  | $ | 102 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | In the fourth quarter of 2015, the Company recognized a total non-cash charge of $7 million for the impairment of certain intangible and long-lived assets in the Brazil truck asset group. In the third quarter of 2015, we determined that $3 million of trademark asset carrying value was impaired. In the second quarter of 2014, we recognized a non-cash charge of $149 million for the impairment of certain intangible assets of our Brazilian engine reporting unit, including the entire $142 million balance of goodwill and $7 million of trademark. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B) | Adjustments to pre-existing warranties reflect changes in our estimate of warranty costs for products sold in prior periods. Such adjustments typically occur when claims experience deviates from historic and expected trends. Our warranty liability is generally affected by component failure rates, repair costs, and the timing of failures. Future events and circumstances related to these factors could materially change our estimates and require adjustments to our liability. In addition, new product launches require a greater use of judgment in developing estimates until historical experience becomes available. |

|     |                                                                                                                                                                                                                                                                                                                                             |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (C) | In the second quarter of 2015 our Global Operations segment recorded $6 million in inventory charges to right size the Brazil Truck business.  In the fourth quarter of 2014, the Global Operations segment recorded approximately $29 million in charges, primarily related to inventory, to right size the Brazil Truck business. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (D) | During the third and fourth quarters of 2015, certain long-lived assets were determined to be impaired, resulting in a charge of $3 million and $4 million, respectively. In the first quarter of 2015, the Truck segment recorded $7 million of asset impairment charges relating to certain operating leases. In 2014, the Truck segment recorded impairment charges related to certain amortizing intangible assets and long-lived assets which were determined to be fully impaired.  In the first quarter of 2014, the Truck segment recognized asset impairment charges of $18 million. In 2013, the Truck segment recognized asset impairment charges consisting of $77 million related to the impairment of the Truck segment's entire goodwill balance, which was recorded in the fourth quarter of 2013, and $19 million which were primarily the result of our ongoing evaluation of our portfolio of assets to validate their strategic and financial fit, which led to the discontinuation of certain engineering programs related to products that were determined to be outside of our core operations or not performing to our expectations. |

|     |                                                                                                                                                                          |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (E) | In the second quarter of 2013, the Company sold its stake in the Mahindra Joint Ventures to Mahindra and the Global Operations segment recognized a gain of $26 million. |

|     |                                                                                                                                                                          |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (F) | In the first quarter of 2013, as a result of the legal settlement with Deloitte and Touche LLP, the Company recognized a gain and received cash proceeds of $35 million. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (G) | In the fourth quarter of 2014 the Truck segment recorded $27 million of charges related to our anticipated exit from our Indianapolis, Indiana foundry facility and certain assets in our Waukesha, Wisconsin foundry operations. The charges included $13 million of restructuring charges, $7 million of fixed asset impairment charges and $7 million of charges for inventory reserves. In the third quarter of 2014, the Truck segment recorded $14 million of charges related to the 2011 closure of its Chatham, Ontario plant, based on a ruling received from the Financial Services Tribunal in Ontario Canada. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (H) | In 2015, we had $72 million of cost reduction and other strategic initiatives primarily consisting of restructuring charges in the third and fourth quarters. In the fourth quarter of 2015, the Company offered the majority of our U.S.-based non-represented salaried employees the opportunity to apply for a VSP, which resulted in $37 million of restructuring charges. In addition, we incurred restructuring charges of $10 million related to cost reduction actions, including a reduction-in-force in Brazil.  In the third quarter of 2015, we incurred restructuring charges of $13 million related to cost reduction actions, including a reduction-in-force in the U.S. and Brazil. In 2014, the Company recorded restructuring charges related to cost reduction actions that included a reduction-in-force in the U.S and Brazil.  In 2013, the Company leveraged efficiencies identified through redesigning our organizational structure and implemented new cost-reduction initiatives, including an enterprise-wide reduction-in-force. As a result of these actions, the Company recognized restructuring charges of $25 million in the year ended October 31, 2013. These charges were partially offset by a gain of $16 million recognized in the Truck segment in the first quarter of 2013, as a result of the divestiture of Bison. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (I) | In the fourth quarter of 2015, we recorded $14 million of third party fees and unamortized debt issuance costs associated with the refinancing of our Amended Term Loan Credit Facility with a new Senior Secured Term Loan Credit Facility.  In the second quarter of 2014, we recorded $12 million of unamortized debt issuance costs and other charges associated with the repurchase of our 2014 Convertible Notes. In the second quarter of 2013, we recorded $13 million of unamortized debt issuance costs and other charges associated with the sale of additional Senior Notes and the refinancing of the Term loan. |

|     |                                                                                                                                                                                                                                                 |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (J) | In the second quarter of 2015, the Global Operations segment recognized a $10 million net gain related to a settlement of a customer dispute. The $10 million net gain for the settlement included restructuring charges of $4 million. |

----

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                    | Payments Due by Year Ending October 31,   |
| (in millions)                                           | Total |   | 2016 |   | 2017-2018 |   | 2019-2020 |   | 2021+ |
| Type of contractual obligation:                         |   |   |   |   |   |   |   |   |   |
| Long-term debt obligations                              | $ | 5,330 |  |   | $ | 1,103 |  |   | $ | 1,348 |  |   | $ | 1,455 |  |   | $ | 1,424 |  |
| Interest on long-term debt(A)                           | 1,512 |  |   | 265 |  |   | 436 |  |   | 370 |  |   | 441 |  |
| Financing arrangements and capital lease obligations(B) | 59 |  |   | 10 |  |   | 20 |  |   | 18 |  |   | 11 |  |
| Operating lease obligations(C)                          | 242 |  |   | 56 |  |   | 82 |  |   | 59 |  |   | 45 |  |
| Purchase obligations(D)                                 | 108 |  |   | 59 |  |   | 30 |  |   | 19 |  |   | — |  |
| Total                                                   | $ | 7,251 |  |   | $ | 1,493 |  |   | $ | 1,916 |  |   | $ | 1,921 |  |   | $ | 1,921 |  |

|     |                                                                                                                                                                                                                                                             |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Amounts represent estimated contractual interest payments on outstanding debt. Rates in effect as of October 31, 2015 are used for variable rate debt. For more information, see Note 10, 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 $10 million of interest obligations. For more information, see Note 7, 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 7, 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. |

----

----

|         |                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 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 a high quality corporate bond 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. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Mortality rates are developed from actual and projected plan experience for the U.S. postretirement benefit plans.  The Company’s actuaries conduct an experience study every five years as part of the process to select a best estimate of mortality.  The Company considers both standard mortality tables and improvement factors as well as the plans’ actual experience when selecting a best estimate.  During 2015, the Company conducted a new experience study as scheduled and as a result, updated our mortality assumptions at year-end. The pension plan and other postretirement benefits liabilities increased by approximately $280 million and $180 million, respectively, due to this change. |

|         |                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------|
| • | The rate of compensation increase reflects our long-term actual experience and our projected future increases. |

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                       | October 31, 2015 |   | 2016 Expense |
|                       | Obligations |   |   |   |   |
| (in millions)              | Pension |   | OPEB |   | Pension |   | OPEB |
| Discount rate:             |   |   |   |   |   |   |   |
| Increase of 1.0%           | $ | (354 | ) |   | $ | (191 | ) |   | $ | 3 |  |   | $ | (1 | ) |
| Decrease of 1.0%           | 419 |  |   | 229 |  |   | (5 | ) |   | (1 | ) |
| Expected return on assets: |   |   |   |   |   |   |   |
| Increase of 1.0%           | NA |  |   | NA |  |   | (23 | ) |   | (3 | ) |
| Decrease of 1.0%           | NA |  |   | NA |  |   | 23 |  |   | 3 |  |

----

----

----

----

----

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

|                                                                                                       |
|-------------------------------------------------------------------------------------------------------|
|                                                                                                       |  |
|                                                                                                  | Page |
| Report of Independent Registered Public Accounting Firm                                               | 68 |
| Consolidated Statements of Operations for the years ended October 31, 2015, 2014, and 2013            | 70 |
| Consolidated Statements of Comprehensive Loss for the years ended October 31, 2015, 2014, and 2013    | 71 |
| Consolidated Balance Sheets as of October 31, 2015 and 2014                                           | 72 |
| Consolidated Statements of Cash Flows for the years ended October 31, 2015, 2014, and 2013            | 73 |
| Consolidated Statements of Stockholders' Deficit for the years ended October 31, 2015, 2014, and 2013 | 74 |

|                                            |
|--------------------------------------------|
|                                            |  |  |
| Notes to Consolidated Financial Statements |   |
| 1                                          | Summary of Significant Accounting Policies | 75 |
| 2                                          | Discontinued Operations and Other Divestitures | 85 |
| 3                                          | Restructurings and Impairments | 86 |
| 4                                          | Finance Receivables | 88 |
| 5                                          | Allowance for Doubtful Accounts | 90 |
| 6                                          | Inventories | 91 |
| 7                                          | Property and Equipment, Net | 91 |
| 8                                          | Goodwill and Other Intangible Assets, Net | 93 |
| 9                                          | Investments in Non-consolidated Affiliates | 95 |
| 10                                         | Debt | 96 |
| 11                                         | Postretirement Benefits | 104 |
| 12                                         | Income Taxes | 112 |
| 13                                         | Fair Value Measurements | 115 |
| 14                                         | Financial Instruments and Commodity Contracts | 118 |
| 15                                         | Commitments and Contingencies | 120 |
| 16                                         | Segment Reporting | 126 |
| 17                                         | Stockholders' Deficit | 129 |
| 18                                         | Earnings (Loss) Per Share Attributable to Navistar International Corporation | 131 |
| 19                                         | Stock-based Compensation Plans | 132 |
| 20                                         | Supplemental Cash Flow Information | 139 |
| 21                                         | Condensed Consolidating Guarantor and Non-guarantor Financial Information | 140 |
| 22                                         | Selected Quarterly Financial Data (Unaudited) | 146 |

----

----

----

|                                                                                 |
|---------------------------------------------------------------------------------|
|                                                                                 |  |  |  |  |  |  |  |  |  |  |  |
|                                                                            | For the Years Ended October 31, |
| (in millions, except per share data)                                            | 2015 |   | 2014 |   | 2013 |
| Sales and revenues                                                              |   |   |   |   |   |
| Sales of manufactured products, net                                             | $ | 9,995 |  |   | $ | 10,653 |  |   | $ | 10,617 |  |
| Finance revenues                                                                | 145 |  |   | 153 |  |   | 158 |  |
| Sales and revenues, net                                                         | 10,140 |  |   | 10,806 |  |   | 10,775 |  |
| Costs and expenses                                                              |   |   |   |   |   |
| Costs of products sold                                                          | 8,670 |  |   | 9,534 |  |   | 9,761 |  |
| Restructuring charges                                                           | 76 |  |   | 42 |  |   | 25 |  |
| Asset impairment charges                                                        | 30 |  |   | 183 |  |   | 97 |  |
| Selling, general and administrative expenses                                    | 908 |  |   | 979 |  |   | 1,215 |  |
| Engineering and product development costs                                       | 288 |  |   | 331 |  |   | 406 |  |
| Interest expense                                                                | 307 |  |   | 314 |  |   | 321 |  |
| Other income, net                                                               | (30 | ) |   | (12 | ) |   | (65 | ) |
| Total costs and expenses                                                        | 10,249 |  |   | 11,371 |  |   | 11,760 |  |
| Equity in income of non-consolidated affiliates                                 | 6 |  |   | 9 |  |   | 11 |  |
| Loss from continuing operations before income taxes                             | (103 | ) |   | (556 | ) |   | (974 | ) |
| Income tax benefit (expense)                                                    | (51 | ) |   | (26 | ) |   | 171 |  |
| Loss from continuing operations                                                 | (154 | ) |   | (582 | ) |   | (803 | ) |
| Income (loss) from discontinued operations, net of tax                          | 3 |  |   | 3 |  |   | (41 | ) |
| Net loss                                                                        | (151 | ) |   | (579 | ) |   | (844 | ) |
| Less: Net income attributable to non-controlling interests                      | 33 |  |   | 40 |  |   | 54 |  |
| Net loss attributable to Navistar International Corporation                     | $ | (184 | ) |   | $ | (619 | ) |   | $ | (898 | ) |
|                                                                            |   |   |  |   |   |
| Amounts attributable to Navistar International Corporation common shareholders: |   |   |  |  |   |   |
| Loss from continuing operations, net of tax                                     | $ | (187 | ) |   | $ | (622 | ) |   | $ | (857 | ) |
| Income (loss) from discontinued operations, net of tax                          | 3 |  |   | 3 |  |   | (41 | ) |
| Net loss                                                                        | $ | (184 | ) |   | $ | (619 | ) |   | $ | (898 | ) |
|                                                                            |   |   |   |   |   |
| Earnings (loss) per share:                                                      |   |   |   |   |   |
| Basic:                                                                          |   |   |   |   |   |
| Continuing operations                                                           | $ | (2.29 | ) |   | $ | (7.64 | ) |   | $ | (10.66 | ) |
| Discontinued operations                                                         | 0.04 |  |   | 0.04 |  |   | (0.51 | ) |
|                                                                            | $ | (2.25 | ) |   | $ | (7.60 | ) |   | $ | (11.17 | ) |
|                                                                            |  |  |   |   |   |   |
| Diluted:                                                                        |  |  |   |   |   |   |
| Continuing operations                                                           | $ | (2.29 | ) |   | $ | (7.64 | ) |   | $ | (10.66 | ) |
| Discontinued operations                                                         | 0.04 |  |   | 0.04 |  |   | (0.51 | ) |
|                                                                            | $ | (2.25 | ) |   | $ | (7.60 | ) |   | $ | (11.17 | ) |
|                                                                            |   |   |   |   |   |
| Weighted average shares outstanding:                                            |   |   |   |   |   |
| Basic                                                                           | 81.6 |  |   | 81.4 |  |   | 80.4 |  |
| Diluted                                                                         | 81.6 |  |   | 81.4 |  |   | 80.4 |  |

----

|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                               | For the Years Ended October 31, |
| 2015                                                                        |   | 2014 |   | 2013 |
| Net loss attributable to Navistar International Corporation                 | $ | (184 | ) |   | $ | (619 | ) |   | $ | (898 | ) |
| Other comprehensive income (loss):                                          |   |   |   |   |   |
| Foreign currency translation adjustment                                     | (160 | ) |   | (52 | ) |   | (51 | ) |
| Unrealized gain on marketable securities                                    | — |  |   | 1 |  |   | — |  |
| Defined benefit plans (net of tax of $(5), $(2), and $(233), respectively)  | (178 | ) |   | (388 | ) |   | 552 |  |
| Total other comprehensive income (loss)                                     | (338 | ) |   | (439 | ) |   | 501 |  |
| Total comprehensive loss attributable to Navistar International Corporation | $ | (522 | ) |   | $ | (1,058 | ) |   | $ | (397 | ) |

----

|                                                                                                               |
|---------------------------------------------------------------------------------------------------------------|
|                                                                                                               |  |  |  |  |  |  |  |
|                                                                                                          | As of October 31, |
| (in millions, except per share data)                                                                          | 2015 |   | 2014 |
| ASSETS                                                                                                        |   |   |   |
| Current assets                                                                                                |   |   |   |
| Cash and cash equivalents                                                                                     | $ | 912 |  |   | $ | 497 |  |
| Restricted cash and cash equivalents                                                                          | — |  |   | 40 |  |
| Marketable securities                                                                                         | 159 |  |   | 605 |  |
| Trade and other receivables, net                                                                              | 429 |  |   | 553 |  |
| Finance receivables, net                                                                                      | 1,779 |  |   | 1,758 |  |
| Inventories                                                                                                   | 1,135 |  |   | 1,319 |  |
| Deferred taxes, net                                                                                           | 36 |  |   | 55 |  |
| Other current assets                                                                                          | 172 |  |   | 186 |  |
| Total current assets                                                                                          | 4,622 |  |   | 5,013 |  |
| Restricted cash                                                                                               | 121 |  |   | 131 |  |
| Trade and other receivables, net                                                                              | 13 |  |   | 25 |  |
| Finance receivables, net                                                                                      | 216 |  |   | 280 |  |
| Investments in non-consolidated affiliates                                                                    | 66 |  |   | 73 |  |
| Property and equipment, net                                                                                   | 1,345 |  |   | 1,562 |  |
| Goodwill                                                                                                      | 38 |  |   | 38 |  |
| Intangible assets, net                                                                                        | 57 |  |   | 90 |  |
| Deferred taxes, net                                                                                           | 128 |  |   | 145 |  |
| Other noncurrent assets                                                                                       | 86 |  |   | 86 |  |
| Total assets                                                                                                  | $ | 6,692 |  |   | $ | 7,443 |  |
| LIABILITIES and STOCKHOLDERS’ DEFICIT                                                                   |   |   |   |
| Liabilities                                                                                                   |   |   |   |
| Current liabilities                                                                                           |   |   |   |
| Notes payable and current maturities of long-term debt                                                        | $ | 1,110 |  |   | $ | 1,295 |  |
| Accounts payable                                                                                              | 1,301 |  |   | 1,564 |  |
| Other current liabilities                                                                                     | 1,377 |  |   | 1,372 |  |
| Total current liabilities                                                                                     | 3,788 |  |   | 4,231 |  |
| Long-term debt                                                                                                | 4,188 |  |   | 3,929 |  |
| Postretirement benefits liabilities                                                                           | 2,995 |  |   | 2,862 |  |
| Deferred taxes, net                                                                                           | 14 |  |   | 14 |  |
| Other noncurrent liabilities                                                                                  | 867 |  |   | 1,025 |  |
| Total liabilities                                                                                             | 11,852 |  |   | 12,061 |  |
| Redeemable equity securities                                                                                  | — |  |   | 2 |  |
| Stockholders’ deficit                                                                                   |   |   |   |
| Series D convertible junior preference stock                                                             | 2 |  |   | 3 |  |
| Common stock (86.8 shares issued, and $0.10 par value per share and 220 shares authorized, all at both dates) | 9 |  |   | 9 |  |
| Additional paid-in capital                                                                                    | 2,499 |  |   | 2,500 |  |
| Accumulated deficit                                                                                           | (4,866 | ) |   | (4,682 | ) |
| Accumulated other comprehensive loss                                                                          | (2,601 | ) |   | (2,263 | ) |
| Common stock held in treasury, at cost (5.3 and 5.4 shares, respectively)                                     | (210 | ) |   | (221 | ) |
| Total stockholders’ deficit attributable to Navistar International Corporation                          | (5,167 | ) |   | (4,654 | ) |
| Stockholders’ equity attributable to non-controlling interests                                          | 7 |  |   | 34 |  |
| Total stockholders’ deficit                                                                             | (5,160 | ) |   | (4,620 | ) |
| Total liabilities and stockholders’ deficit                                                             | $ | 6,692 |  |   | $ | 7,443 |  |

----

|                                                                                           |
|-------------------------------------------------------------------------------------------|
|                                                                                           |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                      | For the Years Ended October 31, |
| (in millions)                                                                             | 2015 |   | 2014 |   | 2013 |
| Cash flows from operating activities                                                      |   |   |   |   |   |
| Net loss                                                                                  | $ | (151 | ) |   | $ | (579 | ) |   | $ | (844 | ) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |   |   |   |   |   |
| Depreciation and amortization                                                             | 205 |  |   | 227 |  |   | 282 |  |
| Depreciation of equipment leased to others                                                | 76 |  |   | 105 |  |   | 135 |  |
| Deferred taxes, including change in valuation allowance                                   | (18 | ) |   | (15 | ) |   | (226 | ) |
| Asset impairment charges                                                                  | 30 |  |   | 183 |  |   | 105 |  |
| Gain on sales of investments and businesses, net                                          | — |  |   | — |  |   | (29 | ) |
| Amortization of debt issuance costs and discount                                          | 37 |  |   | 49 |  |   | 57 |  |
| Stock-based compensation                                                                  | 10 |  |   | 16 |  |   | 24 |  |
| Provision for doubtful accounts, net of recoveries                                        | (9 | ) |   | 20 |  |   | 20 |  |
| Equity in income of non-consolidated affiliates, net of dividends                         | 6 |  |   | 3 |  |   | 2 |  |
| Write-off of debt issuance cost and discount                                              | 4 |  |   | 1 |  |   | 6 |  |
| Other non-cash operating activities                                                       | (35 | ) |   | (41 | ) |   | (70 | ) |
| Changes in other assets and liabilities, exclusive of the effects of businesses disposed: |   |   |   |   |   |
| Trade and other receivables                                                               | 103 |  |   | 55 |  |   | 68 |  |
| Finance receivables                                                                       | (58 | ) |   | (33 | ) |   | 187 |  |
| Inventories                                                                               | 131 |  |   | (129 | ) |   | 264 |  |
| Accounts payable                                                                          | (208 | ) |   | 84 |  |   | (121 | ) |
| Other assets and liabilities                                                              | (77 | ) |   | (282 | ) |   | 240 |  |
| Net cash provided by (used in) operating activities                                       | 46 |  |   | (336 | ) |   | 100 |  |
| Cash flows from investing activities                                                      |   |   |   |   |   |
| Purchases of marketable securities                                                        | (887 | ) |   | (1,812 | ) |   | (1,779 | ) |
| Sales of marketable securities                                                            | 1,247 |  |   | 1,576 |  |   | 1,217 |  |
| Maturities of marketable securities                                                       | 86 |  |   | 461 |  |   | 198 |  |
| Net change in restricted cash and cash equivalents                                        | 42 |  |   | (80 | ) |   | 70 |  |
| Capital expenditures                                                                      | (115 | ) |   | (88 | ) |   | (167 | ) |
| Purchases of equipment leased to others                                                   | (83 | ) |   | (189 | ) |   | (432 | ) |
| Proceeds from sales of property and equipment                                             | 22 |  |   | 43 |  |   | 25 |  |
| Investments in non-consolidated affiliates                                                | 1 |  |   | — |  |   | (24 | ) |
| Proceeds from sales of affiliates                                                         | 7 |  |   | 14 |  |   | 82 |  |
| Acquisition of intangibles                                                                | (4 | ) |   | — |  |   | — |  |
| Net cash provided by (used in) investing activities                                       | 316 |  |   | (75 | ) |   | (810 | ) |
| Cash flows from financing activities                                                      |   |   |   |   |   |
| Proceeds from issuance of securitized debt                                                | 549 |  |   | 82 |  |   | 529 |  |
| Principal payments on securitized debt                                                    | (501 | ) |   | (126 | ) |   | (542 | ) |
| Net change in secured revolving credit facilities                                         | (22 | ) |   | 173 |  |   | (231 | ) |
| Proceeds from issuance of non-securitized debt                                            | 1,212 |  |   | 663 |  |   | 641 |  |
| Principal payments on non-securitized debt                                                | (990 | ) |   | (862 | ) |   | (475 | ) |
| Net increase (decrease) in notes and debt outstanding under revolving credit facilities   | (106 | ) |   | 255 |  |   | 274 |  |
| Principal payments under financing arrangements and capital lease obligations             | (2 | ) |   | (20 | ) |   | (60 | ) |
| Debt issuance costs                                                                       | (25 | ) |   | (15 | ) |   | (20 | ) |
| Proceeds from financed lease obligations                                                  | 33 |  |   | 60 |  |   | 294 |  |
| Issuance of common stock                                                                  | — |  |   | — |  |   | 14 |  |
| Proceeds from exercise of stock options                                                   | 1 |  |   | 19 |  |   | 12 |  |
| Dividends paid by subsidiaries to non-controlling interest                                | (36 | ) |   | (50 | ) |   | (47 | ) |
| Other financing activities                                                                | (15 | ) |   | — |  |   | 4 |  |
| Net cash provided by financing activities                                                 | 98 |  |   | 179 |  |   | 393 |  |
| Effect of exchange rate changes on cash and cash equivalents                              | (45 | ) |   | (26 | ) |   | (15 | ) |
| Increase (decrease) in cash and cash equivalents                                          | 415 |  |   | (258 | ) |   | (332 | ) |
| Cash and cash equivalents at beginning of the year                                        | 497 |  |   | 755 |  |   | 1,087 |  |
| Cash and cash equivalents at end of the year                                              | $ | 912 |  |   | $ | 497 |  |   | $ | 755 |  |

----

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                           | Series D ConvertibleJuniorPreference Stock |   | CommonStock |   | Additional Paid-inCapital |   | AccumulatedDeficit |   | AccumulatedOtherComprehensiveIncome (Loss) |   | CommonStockHeld inTreasury, at cost |   | Stockholders'Equity Attributableto Non-controllingInterests |   | Total |
| Balance as of October 31, 2012                                                          | $ | 3 |  |   | $ | 9 |  |   | $ | 2,440 |  |   | $ | (3,165 | ) |   | $ | (2,325 | ) |   | $ | (272 | ) |   | $ | 45 |  |   | $ | (3,265 | ) |
| Net income (loss)                                                                       | — |  |   | — |  |   | — |  |   | (898 | ) |   | — |  |   | — |  |   | 54 |  |   | (844 | ) |
| Total other comprehensive income                                                        | — |  |   | — |  |   | — |  |   | — |  |   | 501 |  |   | — |  |   | — |  |   | 501 |  |
| Transfer from redeemable equity securities upon exercise or expiration of stock options | — |  |   | — |  |   | 2 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 2 |  |
| Stock-based compensation                                                                | — |  |   | — |  |   | 18 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 18 |  |
| Stock ownership programs                                                                | — |  |   | — |  |   | (10 | ) |   | — |  |   | — |  |   | 21 |  |   | — |  |   | 11 |  |
| Cash dividends paid to non-controlling interest                                         | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (47 | ) |   | (47 | ) |
| Issuance of common stock, net of issuance cost and fees                                 | — |  |   | — |  |   | 14 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 14 |  |
| Deconsolidation of a non-controlling interest                                           | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (9 | ) |   | (9 | ) |
| Equity component of convertible debt instruments, net of tax expense of $-              | — |  |   | — |  |   | 14 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 14 |  |
| Other                                                                                   | — |  |   | — |  |   | (1 | ) |   | — |  |   | — |  |   | — |  |   | 1 |  |   | — |  |
| Balance as of October 31, 2013                                                          | $ | 3 |  |   | $ | 9 |  |   | $ | 2,477 |  |   | $ | (4,063 | ) |   | $ | (1,824 | ) |   | $ | (251 | ) |   | $ | 44 |  |   | $ | (3,605 | ) |
| Net income (loss)                                                                       | — |  |   | — |  |   | — |  |   | (619 | ) |   | — |  |   | — |  |   | 40 |  |   | (579 | ) |
| Total other comprehensive income                                                        | — |  |   | — |  |   | — |  |   | — |  |   | (439 | ) |   | — |  |   | — |  |   | (439 | ) |
| Transfer from redeemable equity securities upon exercise or expiration of stock options | — |  |   | — |  |   | 2 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 2 |  |
| Stock-based compensation                                                                | — |  |   | — |  |   | 10 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 10 |  |
| Stock ownership programs                                                                | — |  |   | — |  |   | (12 | ) |   | — |  |   | — |  |   | 30 |  |   | — |  |   | 18 |  |
| Equity component of convertible debt instruments, net of tax expense of $16             | — |  |   | — |  |   | 27 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 27 |  |
| Equity component of repurchased convertible debt instruments, net of tax benefit of $3  | — |  |   | — |  |   | (5 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | (5 | ) |
| Cash dividends paid to non-controlling interest                                         | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (50 | ) |   | (50 | ) |
| Other                                                                                   | — |  |   | — |  |   | 1 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 1 |  |
| Balance as of October 31, 2014                                                          | $ | 3 |  |   | $ | 9 |  |   | $ | 2,500 |  |   | $ | (4,682 | ) |   | $ | (2,263 | ) |   | $ | (221 | ) |   | $ | 34 |  |   | $ | (4,620 | ) |
| Net income (loss)                                                                       | — |  |   | — |  |   | — |  |   | (184 | ) |   | — |  |   | — |  |   | 33 |  |   | (151 | ) |
| Total other comprehensive income                                                        | — |  |   | — |  |   | — |  |   | — |  |   | (338 | ) |   | — |  |   | — |  |   | (338 | ) |
| Transfer from redeemable equity securities upon exercise or expiration of stock options | — |  |   | — |  |   | 2 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 2 |  |
| Stock-based compensation                                                                | — |  |   | — |  |   | 11 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 11 |  |
| Stock ownership programs                                                                | — |  |   | — |  |   | (11 | ) |   | — |  |   | — |  |   | 11 |  |   | — |  |   | — |  |
| Cash dividends paid to non-controlling interest                                         | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (36 | ) |   | (36 | ) |
| Series D convertible junior preference stock converted to common stock                  | (1 | ) |   | — |  |   | 1 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Acquire remaining ownership interest from non-controlling interest holder               | — |  |   | — |  |   | (4 | ) |   | — |  |   | — |  |   | — |  |   | (23 | ) |   | (27 | ) |
| Other                                                                                   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (1 | ) |   | (1 | ) |
| Balance as of October 31, 2015                                                          | $ | 2 |  |   | $ | 9 |  |   | $ | 2,499 |  |   | $ | (4,866 | ) |   | $ | (2,601 | ) |   | $ | (210 | ) |   | $ | 7 |  |   | $ | (5,160 | ) |

----

----

----

----

|         |                                                                                                                                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Retail notes—Retail notes primarily consist of fixed rate loans to commercial customers to facilitate their purchase of new and used trucks, trailers, and related equipment. |

|         |                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Finance leases—Finance leases consist of direct financing leases to commercial customers for acquisition of new and used trucks, trailers, and related equipment. |

|         |                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Wholesale notes—Wholesale notes primarily consist of variable rate loans to our dealers for the purchase of new and used trucks, trailers, and related equipment. |

|         |                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------|
| • | Retail accounts—Retail accounts consist of short-term accounts receivable that finance the sale of products to commercial customers. |

|         |                                                                                                                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Wholesale accounts—Wholesale accounts consist of short-term accounts receivable primarily related to the sales of items other than trucks, trailers, and related equipment (e.g. service parts) to dealers. |

----

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

----

----

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

----

----

|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                     | 2015 |   | 2014 |   | 2013 |
| Balance at beginning of period                                    | $ | 1,197 |  |   | $ | 1,349 |  |   | $ | 1,118 |  |
| Costs accrued and revenues deferred                               | 190 |  |   | 302 |  |   | 469 |  |
| Divestitures                                                      | — |  |   | — |  |   | (3 | ) |
| Currency translation adjustment                                   | (9 | ) |   | (4 | ) |   | (2 | ) |
| Adjustments to pre-existing warranties(A)(B)                      | 1 |  |   | 55 |  |   | 404 |  |
| Payments and revenues recognized                                  | (385 | ) |   | (505 | ) |   | (637 | ) |
| Balance at end of period                                          | 994 |  |   | 1,197 |  |   | 1,349 |  |
| Less: Current portion                                             | 429 |  |   | 535 |  |   | 601 |  |
| Noncurrent accrued product warranty and deferred warranty revenue | $ | 565 |  |   | $ | 662 |  |   | $ | 748 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Adjustments to pre-existing warranties reflect changes in our estimate of warranty costs for products sold in prior periods. Such adjustments typically occur when claims experience deviates from historic and expected trends. Our warranty liability is generally affected by component failure rates, repair costs, and the timing of failures. Future events and circumstances related to these factors could materially change our estimates and require adjustments to our liability. In addition, new product launches require a greater use of judgment in developing estimates until historical experience becomes available. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B) | In the first quarter of 2013, we recognized $13 million of charges for adjustments to pre-existing warranties for a specific warranty issue related to component parts from a supplier. Also during the first quarter of 2013, we reached an agreement for reimbursement from this supplier for this amount and other costs previously accrued. As a result of this agreement, we recognized a recovery of $27 million within Costs of products sold and recorded a receivable within Other current assets. In the second quarter of 2013, we recognized a warranty recovery of $13 million within Income (loss) from discontinued operations, net of tax and recorded a receivable within Other current assets. |

----

----

|                                                                                       |
|---------------------------------------------------------------------------------------|
|                                                                                       |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                  |   |   |   |   |   |
| (in millions)                                                                         | 2015 |   | 2014 |   | 2013 |
| Sales and revenues, net                                                               | $ | — |  |   | $ | — |  |   | $ | 73 |  |
|                                                                                  |   |   |   |   |   |
| Income (loss) from discontinued operations (net of tax of $- in 2015, 2014, and 2013) | $ | 3 |  |   | $ | 3 |  |   | $ | (41 | ) |

----

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                | Balance at October 31, 2014 |   | Additions |   | Payments |   | Adjustments |   | Balance at October 31, 2015 |
| Employee termination charges | $ | 8 |  |   | $ | 68 |  |   | $ | (11 | ) |   | $ | (3 | ) |   | $ | 62 |  |
| Lease vacancy                | 11 |  |   | 3 |  |   | (8 | ) |   | (1 | ) |   | 5 |  |
| Other                        | 1 |  |   | — |  |   | (1 | ) |   | 1 |  |   | 1 |  |
| Restructuring liability      | $ | 20 |  |   | $ | 71 |  |   | $ | (20 | ) |   | $ | (3 | ) |   | $ | 68 |  |

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                | Balance atOctober 31, 2013 |   | Additions |   | Payments |   | Adjustments |   | Balance at October 31, 2014 |
| Employee termination charges | $ | 15 |  |   | $ | 15 |  |   | $ | (19 | ) |   | $ | (3 | ) |   | $ | 8 |  |
| Employee relocation costs    | — |  |   | 1 |  |   | (1 | ) |   | — |  |   | — |  |
| Lease vacancy                | 18 |  |   | — |  |   | (8 | ) |   | 1 |  |   | 11 |  |
| Other                        | 1 |  |   | 2 |  |   | (2 | ) |   | — |  |   | 1 |  |
| Restructuring liability      | $ | 34 |  |   | $ | 18 |  |   | $ | (30 | ) |   | $ | (2 | ) |   | $ | 20 |  |

----

----

|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                     | 2015 |   | 2014 |   | 2013 |
| Goodwill impairment charge(A)                                     | $ | — |  |   | $ | 142 |  |   | $ | 81 |  |
| Intangible asset impairment charge                                | 7 |  |   | 7 |  |   | — |  |
| Other asset impairment charges related to continuing operations   | 23 |  |   | 34 |  |   | 20 |  |
| Other asset impairment charges related to discontinued operations | — |  |   | — |  |   | 4 |  |
| Total asset impairment charges                                    | $ | 30 |  |   | $ | 183 |  |   | $ | 105 |  |

|     |                                                                                                                                                                                 |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | For more information, see Note 8, Goodwill and Other Intangible Assets, Net. The Goodwill impairment charge in 2013 includes $4 million related to discontinued operations. |

----

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |
| (in millions)                         | 2015 |   | 2014 |
| Retail portfolio                      | $ | 554 |  |   | $ | 726 |  |
| Wholesale portfolio                   | 1,467 |  |   | 1,339 |  |
| Total finance receivables             | 2,021 |  |   | 2,065 |  |
| Less: Allowance for doubtful accounts | 26 |  |   | 27 |  |
| Total finance receivables, net        | 1,995 |  |   | 2,038 |  |
| Less: Current portion, net(A)         | 1,779 |  |   | 1,758 |  |
| Noncurrent portion, net               | $ | 216 |  |   | $ | 280 |  |

|     |                                                                                                                                                                                                                                                |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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:                   |   |   |   |   |   |
| 2016                      | $ | 352 |  |   | $ | 1,467 |  |   | $ | 1,819 |  |
| 2017                      | 107 |  |   | — |  |   | 107 |  |
| 2018                      | 76 |  |   | — |  |   | 76 |  |
| 2019                      | 41 |  |   | — |  |   | 41 |  |
| 2020                      | 14 |  |   | — |  |   | 14 |  |
| Thereafter                | 1 |  |   | — |  |   | 1 |  |
| Gross finance receivables | 591 |  |   | 1,467 |  |   | 2,058 |  |
| Unearned finance income   | 37 |  |   | — |  |   | 37 |  |
| Total finance receivables | $ | 554 |  |   | $ | 1,467 |  |   | $ | 2,021 |  |

----

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                           | 2015 |   | 2014 |   | 2013 |
| Retail notes and finance leases revenue | $ | 48 |  |   | $ | 64 |  |   | $ | 78 |  |
| Wholesale notes interest                | 97 |  |   | 80 |  |   | 77 |  |
| Operating lease revenue                 | 63 |  |   | 60 |  |   | 51 |  |
| Retail and wholesale accounts interest  | 33 |  |   | 28 |  |   | 27 |  |
| Gross finance revenues                  | 241 |  |   | 232 |  |   | 233 |  |
| Less: Intercompany revenues             | 96 |  |   | 79 |  |   | 75 |  |
| Finance revenues                        | $ | 145 |  |   | $ | 153 |  |   | $ | 158 |  |

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                    | October 31, 2015 |
| (in millions)                                           | RetailPortfolio |   | WholesalePortfolio |   | Trade andOtherReceivables |   | Total |
| Allowance for doubtful accounts, at beginning of period | $ | 24 |  |   | $ | 3 |  |   | $ | 38 |  |   | $ | 65 |  |
| Provision for doubtful accounts, net of recoveries      | 6 |  |   | 1 |  |   | — |  |   | 7 |  |
| Charge-off of accounts(A)                               | (3 | ) |   | — |  |   | (5 | ) |   | (8 | ) |
| Other(B)                                                | (5 | ) |   | — |  |   | (11 | ) |   | (16 | ) |
| Allowance for doubtful accounts, at end of period       | $ | 22 |  |   | $ | 4 |  |   | $ | 22 |  |   | $ | 48 |  |

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                    | October 31, 2014 |
| (in millions)                                           | RetailPortfolio |   | WholesalePortfolio |   | Trade andOtherReceivables |   | Total |
| Allowance for doubtful accounts, at beginning of period | $ | 21 |  |   | $ | 2 |  |   | $ | 37 |  |   | $ | 60 |  |
| Provision for doubtful accounts, net of recoveries      | 13 |  |   | 1 |  |   | 10 |  |   | 24 |  |
| Charge-off of accounts(A)                               | (9 | ) |   | — |  |   | (6 | ) |   | (15 | ) |
| Other(B)                                                | (1 | ) |   | — |  |   | (3 | ) |   | (4 | ) |
| Allowance for doubtful accounts, at end of period       | $ | 24 |  |   | $ | 3 |  |   | $ | 38 |  |   | $ | 65 |  |

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                    | October 31, 2013 |
| (in millions)                                           | RetailPortfolio |   | WholesalePortfolio |   | Trade andOtherReceivables |   | Total |
| Allowance for doubtful accounts, at beginning of period | $ | 27 |  |   | $ | — |  |   | $ | 24 |  |   | $ | 51 |  |
| Provision for doubtful accounts, net of recoveries      | 4 |  |   | 2 |  |   | 15 |  |   | 21 |  |
| Charge-off of accounts(A)                               | (10 | ) |   | — |  |   | (1 | ) |   | (11 | ) |
| Other(B)                                                | — |  |   | — |  |   | (1 | ) |   | (1 | ) |
| Allowance for doubtful accounts, at end of period       | $ | 21 |  |   | $ | 2 |  |   | $ | 37 |  |   | $ | 60 |  |

|     |                                                                                                                                                                                                                                                                                                                          |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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 less than $1 million in both 2015 and 2014, and less than $2 million in 2013. |

|     |                                       |
|-----|---------------------------------------|
| (B) | Amounts include currency translation. |

----

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                        | October 31, 2015 |   | October 31, 2014 |
| (in millions)                                               | RetailPortfolio |   | WholesalePortfolio |   | Total |   | RetailPortfolio |   | WholesalePortfolio |   | Total |
| Impaired finance receivables with specific loss reserves    | $ | 21 |  |   | $ | — |  |   | $ | 21 |  |   | $ | 20 |  |   | $ | — |  |   | $ | 20 |  |
| Impaired finance receivables without specific loss reserves | — |  |   | — |  |   | — |  |   | 1 |  |   | — |  |   | 1 |  |
| Specific loss reserves on impaired finance receivables      | 9 |  |   | — |  |   | 9 |  |   | 6 |  |   | — |  |   | 6 |  |
| Finance receivables on non-accrual status                   | 21 |  |   | — |  |   | 21 |  |   | 21 |  |   | — |  |   | 21 |  |

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |
|                                | October 31, 2015 |
| (in millions)                       | RetailPortfolio |   | WholesalePortfolio |   | Total |
| Current, and up to 30 days past due | $ | 486 |  |   | $ | 1,461 |  |   | $ | 1,947 |  |
| 30-90 days past due                 | 48 |  |   | 4 |  |   | 52 |  |
| Over 90 days past due               | 20 |  |   | 2 |  |   | 22 |  |
| Total finance receivables           | $ | 554 |  |   | $ | 1,467 |  |   | $ | 2,021 |  |

|                   |
|-------------------|
|                   |  |  |  |  |  |  |  |
| (in millions)     | 2015 |   | 2014 |
| Finished products | $ | 837 |  |   | $ | 880 |  |
| Work in process   | 34 |  |   | 50 |  |
| Raw materials     | 264 |  |   | 389 |  |
| Total inventories | $ | 1,135 |  |   | $ | 1,319 |  |

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |
| (in millions)                                   | 2015 |  | 2014 |
| Land                                            | $ | 87 |  |   | $ | 82 |  |
| Buildings                                       | 493 |  |   | 518 |  |
| Leasehold improvements                          | 56 |  |   | 60 |  |
| Machinery and equipment                         | 2,097 |  |   | 2,232 |  |
| Furniture, fixtures, and equipment              | 478 |  |   | 487 |  |
| Equipment leased to others                      | 613 |  |   | 677 |  |
| Construction in progress                        | 67 |  |   | 41 |  |
| Total property and equipment, at cost           | 3,891 |  |   | 4,097 |  |
| Less: Accumulated depreciation and amortization | 2,546 |  |   | 2,535 |  |
| Property and equipment, net                     | $ | 1,345 |  |   | $ | 1,562 |  |

----

|                                                                                                |
|------------------------------------------------------------------------------------------------|
|                                                                                                |  |  |  |  |  |  |  |
| (in millions)                                                                                  | 2015 |   | 2014 |
| Equipment leased to others                                                                     | $ | 613 |  |   | $ | 677 |  |
| Less: Accumulated depreciation                                                                 | 220 |  |   | 210 |  |
| Equipment leased to others, net                                                                | $ | 393 |  |   | $ | 467 |  |
|                                                                                           |   |   |   |
| Buildings, machinery, and equipment under financing arrangements and capital lease obligations | $ | 70 |  |   | $ | 70 |  |
| Less: Accumulated depreciation and amortization                                                | 34 |  |   | 32 |  |
| Assets under financing arrangements and capital lease obligations, net                         | $ | 36 |  |   | $ | 38 |  |

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                              | 2015 |   | 2014 |   | 2013 |
| Depreciation expense                       | $ | 190 |  |   | $ | 206 |  |   | $ | 260 |  |
| Depreciation of equipment leased to others | 76 |  |   | 105 |  |   | 135 |  |
| Amortization expense                       | 5 |  |   | 3 |  |   | — |  |
| Interest capitalized                       | 1 |  |   | — |  |   | 5 |  |

----

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)          | FinancingArrangementsand CapitalLease Obligations  |   | OperatingLeases |   | Total |
| 2016                   | $ | 10 |  |   | $ | 56 |  |   | $ | 66 |  |
| 2017                   | 10 |  |   | 44 |  |   | 54 |  |
| 2018                   | 10 |  |   | 38 |  |   | 48 |  |
| 2019                   | 9 |  |   | 31 |  |   | 40 |  |
| 2020                   | 9 |  |   | 28 |  |   | 37 |  |
| Thereafter             | 11 |  |   | 45 |  |   | 56 |  |
|                   | 59 |  |   | $ | 242 |  |   | $ | 301 |  |
| Less: Interest portion | 10 |  |   |   |  |   |   |  |
| Total                  | $ | 49 |  |   |   |   |   |

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                        | Truck |   | Parts |   | Global Operations |   | Total   |
| As of October 31, 2012          | $ | 82 |  |   | $ | 38 |  |   | $ | 160 |  |   | $ | 280 |  |
| Impairments                          | (81 | ) |   | — |  |   | — |  |   | (81 | ) |
| Currency translation                 | — |  |   | — |  |   | (12 | ) |   | (12 | ) |
| Adjustments(A)                       | (1 | ) |   | — |  |   | (2 | ) |   | (3 | ) |
| As of October 31, 2013               | $ | — |  |   | $ | 38 |  |   | $ | 146 |  |   | $ | 184 |  |
| Impairments                          | — |  |   | — |  |   | (142 | ) |   | (142 | ) |
| Currency translation                 | — |  |   | — |  |   | (4 | ) |   | (4 | ) |
| As of October 31, 2014               | $ | — |  |   | $ | 38 |  |   | $ | — |  |   | $ | 38 |  |
| Impairments and currency translation | — |  |   | — |  |   | — |  |   | — |  |
| As of October 31, 2015               | $ | — |  |   | $ | 38 |  |   | $ | — |  |   | $ | 38 |  |

|     |                                                                                                                                                                                                                                                                            |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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)                                 | 2015 |   | 2014 |
| Dealer franchise rights                       | $ | — |  |   | $ | 1 |  |
| Trademarks(A)                                 | 19 |  |   | 33 |  |
| Intangible assets not subject to amortization | $ | 19 |  |   | $ | 34 |  |

|     |                                                                                                                                                                                                                        |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | In the third quarter of 2015 we determined that $3 million of trademark asset carrying value in our Brazilian engine reporting unit was impaired. For more information, see Note 3, Restructuring and Impairments. |

|                          |
|--------------------------|
|                          |  |  |  |  |  |  |  |  |  |  |  |
|                     | As of October 31, 2015 |
| (in millions)            | CustomerBase andRelationships  |   | Trademarks, Patents and Other |   | Total  |
| Gross carrying value     | $ | 69 |  |   | $ | 89 |  |   | $ | 158 |  |
| Accumulated amortization | (58 | ) |   | (62 | ) |   | (120 | ) |
| Net of amortization      | $ | 11 |  |   | $ | 27 |  |   | $ | 38 |  |

|                          |
|--------------------------|
|                          |  |  |  |  |  |  |  |  |  |  |  |
|                     | As of October 31, 2014 |
| (in millions)            | CustomerBase andRelationships  |   | Trademarks, Patents and Other |   | Total  |
| Gross carrying value     | $ | 80 |  |   | $ | 85 |  |   | $ | 165 |  |
| Accumulated amortization | (60 | ) |   | (49 | ) |   | (109 | ) |
| Net of amortization      | $ | 20 |  |   | $ | 36 |  |   | $ | 56 |  |

|               |
|---------------|
|               |  |  |  |
| (in millions) | EstimatedAmortization |
| 2016          | $ | 12 |  |
| 2017          | 11 |  |
| 2018          | 7 |  |
| 2019          | 3 |  |
| 2020          | 1 |  |
| Thereafter    | 4 |  |

----

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |
|                                             | (Unaudited) |
| (in millions)                                    | 2015 |  | 2014 |
| Assets:                                          |   |
| Current assets                                   | $ | 240 |  |   | $ | 252 |  |
| Noncurrent assets                                | 154 |  |   | 130 |  |
| Total assets                                     | $ | 394 |  |   | $ | 382 |  |
| Liabilities and equity:                          |   |   |   |
| Current liabilities                              | $ | 195 |  |   | $ | 191 |  |
| Noncurrent liabilities                           | 35 |  |   | 12 |  |
| Total liabilities                                | 230 |  |   | 203 |  |
| Partners' capital and stockholders' equity:      |   |   |   |
| NIC                                              | 68 |  |   | 75 |  |
| Third parties                                    | 96 |  |   | 104 |  |
| Total partners' capital and stockholders' equity | 164 |  |   | 179 |  |
| Total liabilities and equity                     | $ | 394 |  |   | $ | 382 |  |

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |  |  |  |
|                                    | (Unaudited) |
| (in millions)                           | 2015 |  | 2014 |   | 2013 |
| Net sales                               | $ | 554 |  |   | $ | 527 |  |   | $ | 448 |  |
| Costs, expenses, and income tax expense | 536 |  |   | 500 |  |   | 412 |  |
| Net income                              | $ | 18 |  |   | $ | 27 |  |   | $ | 36 |  |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |
| (in millions)                   | 2015 |   | 2014 |
| Receivables due from affiliates | $ | 1 |  |   | $ | 1 |  |
| Payables due to affiliates      | 30 |  |   | 30 |  |

----

|                                                                                                                         |
|-------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                         |  |  |  |  |  |  |  |
| (in millions)                                                                                                           | 2015 |   | 2014 |
| Manufacturing operations                                                                                                |   |   |   |
| Senior Secured Term Loan Credit Facility, as amended, due 2020, net of unamortized discount of $17 and $3, respectively | $ | 1,023 |  |   | $ | 694 |  |
| 8.25% Senior Notes, due 2021, net of unamortized discount of $18 and $20, respectively                                  | 1,182 |  |   | 1,180 |  |
| 4.50% Senior Subordinated Convertible Notes, due 2018, net of unamortized discount of $14 and $19, respectively         | 186 |  |   | 181 |  |
| 4.75% Senior Subordinated Convertible Notes, due 2019, net of unamortized discount of $32 and $40, respectively         | 379 |  |   | 371 |  |
| Debt of majority-owned dealerships                                                                                      | 28 |  |   | 30 |  |
| Financing arrangements and capital lease obligations                                                                    | 49 |  |   | 54 |  |
| Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040                                                               | 225 |  |   | 225 |  |
| Promissory Note                                                                                                         | — |  |   | 10 |  |
| Financed lease obligations                                                                                              | 111 |  |   | 184 |  |
| Other                                                                                                                   | 15 |  |   | 29 |  |
| Total Manufacturing operations debt                                                                                     | 3,198 |  |   | 2,958 |  |
| Less: Current portion                                                                                                   | 103 |  |   | 100 |  |
| Net long-term Manufacturing operations debt                                                                             | $ | 3,095 |  |   | $ | 2,858 |  |

|                                                                                                       |
|-------------------------------------------------------------------------------------------------------|
|                                                                                                       |  |  |  |  |  |  |  |
| (in millions)                                                                                         | 2015 |   | 2014 |
| Financial Services operations                                                                         |   |   |   |
| Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2018 | $ | 870 |  |   | $ | 914 |  |
| Bank revolvers, at fixed and variable rates, due dates from 2016 through 2020                         | 1,063 |  |   | 1,242 |  |
| Commercial paper, at variable rates, program matures in 2017                                          | 86 |  |   | 74 |  |
| Borrowings secured by operating and finance leases, at various rates, due serially through 2020       | 81 |  |   | 36 |  |
| Total Financial Services operations debt                                                              | 2,100 |  |   | 2,266 |  |
| Less: Current portion                                                                                 | 1,007 |  |   | 1,195 |  |
| Net long-term Financial Services operations debt                                                      | $ | 1,093 |  |   | $ | 1,071 |  |

----

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----

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |
|                       | ManufacturingOperations   |   | FinancialServicesOperations |   | Total   |
| (in millions)              |   |   |   |   |   |
| 2016                       | $ | 103 |  |   | $ | 1,007 |  |   | $ | 1,110 |  |
| 2017                       | 55 |  |   | 977 |  |   | 1,032 |  |
| 2018                       | 245 |  |   | 85 |  |   | 330 |  |
| 2019                       | 433 |  |   | 25 |  |   | 458 |  |
| 2020                       | 1,008 |  |   | 5 |  |   | 1,013 |  |
| Thereafter                 | 1,435 |  |   | 1 |  |   | 1,436 |  |
| Total debt                 | 3,279 |  |   | 2,100 |  |   | 5,379 |  |
| Less: Unamortized discount | 81 |  |   | — |  |   | 81 |  |
| Net debt                   | $ | 3,198 |  |   | $ | 2,100 |  |   | $ | 5,298 |  |

----

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                           | Pension Benefits |   | Health and LifeInsurance Benefits |
| (in millions)                                  | 2015 |   | 2014 |   | 2015 |   | 2014 |
| Change in benefit obligations                  |   |   |   |   |   |   |   |
| Benefit obligations at beginning of year       | $ | 4,041 |  |   | $ | 3,943 |  |   | $ | 1,957 |  |   | $ | 1,674 |  |
| Service cost                                   | 13 |  |   | 12 |  |   | 6 |  |   | 5 |  |
| Interest on obligations                        | 142 |  |   | 158 |  |   | 71 |  |   | 68 |  |
| Actuarial loss (gain)                          | 146 |  |   | 176 |  |   | (34 | ) |   | 319 |  |
| Curtailments                                   | — |  |   | (2 | ) |   | — |  |   | — |  |
| Contractual termination benefits               | (1 | ) |   | 23 |  |   | (1 | ) |   | 2 |  |
| Currency translation                           | (53 | ) |   | 49 |  |   | — |  |   | — |  |
| Plan participants' contributions               | — |  |   | — |  |   | 31 |  |   | 40 |  |
| Subsidy receipts                               | — |  |   | — |  |   | 40 |  |   | 34 |  |
| Benefits paid                                  | (309 | ) |   | (318 | ) |   | (183 | ) |   | (185 | ) |
| Benefit obligations at end of year             | $ | 3,979 |  |   | $ | 4,041 |  |   | $ | 1,887 |  |   | $ | 1,957 |  |
| Change in plan assets                          |   |   |   |  |   |   |   |   |
| Fair value of plan assets at beginning of year | $ | 2,627 |  |   | $ | 2,519 |  |   | $ | 415 |  |   | $ | 447 |  |
| Actual return on plan assets                   | 27 |  |   | 206 |  |   | 3 |  |   | 26 |  |
| Currency translation                           | (51 | ) |   | 42 |  |   | — |  |   | — |  |
| Employer contributions                         | 113 |  |   | 164 |  |   | 2 |  |   | 2 |  |
| Benefits paid                                  | (294 | ) |   | (304 | ) |   | (51 | ) |   | (60 | ) |
| Fair value of plan assets at end of year       | $ | 2,422 |  |   | $ | 2,627 |  |   | $ | 369 |  |   | $ | 415 |  |
| Funded status at year end                      | $ | (1,557 | ) |   | $ | (1,414 | ) |   | $ | (1,518 | ) |   | $ | (1,542 | ) |

|                                                                            |
|----------------------------------------------------------------------------|
|                                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                       | Pension Benefits |   | Health and LifeInsurance Benefits |
| (in millions)                                                              | 2015 |   | 2014 |   | 2015 |   | 2014 |
| Amounts recognized in our Consolidated Balance Sheets consist of:          |   |   |   |  |   |   |   |   |
| Noncurrent asset                                                           | $ | 13 |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |
| Current liability                                                          | (15 | ) |   | (15 | ) |   | (78 | ) |   | (79 | ) |
| Noncurrent liability                                                       | (1,555 | ) |   | (1,399 | ) |   | (1,440 | ) |   | (1,463 | ) |
| Net liability recognized                                                   | $ | (1,557 | ) |   | $ | (1,414 | ) |   | $ | (1,518 | ) |   | $ | (1,542 | ) |
|                                                                       |   |   |   |   |   |   |   |
| Amounts recognized in our accumulated other comprehensive loss consist of: |   |   |  |   |   |   |   |
| Net actuarial loss                                                         | $ | 2,234 |  |   | $ | 2,019 |  |   | $ | 618 |  |   | $ | 664 |  |
| Net prior service cost (benefit)                                           | — |  |   | 1 |  |   | (1 | ) |   | (6 | ) |
| Net amount recognized                                                      | $ | 2,234 |  |   | $ | 2,020 |  |   | $ | 617 |  |   | $ | 658 |  |

----

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |
| (in millions)                   | 2015 |   | 2014 |
| Projected benefit obligations   | $ | 3,631 |  |   | $ | 4,041 |  |
| Accumulated benefit obligations | 3,612 |  |   | 4,021 |  |
| Fair value of plan assets       | 2,061 |  |   | 2,627 |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                         | 2015 |   | 2014 |   | 2013 |
| Pension expense                       | $ | 69 |  |   | $ | 106 |  |   | $ | 116 |  |
| Health and life insurance expense     | 81 |  |   | 54 |  |   | 61 |  |
| Total postretirement benefits expense | $ | 150 |  |   | $ | 160 |  |   | $ | 177 |  |

----

|                                                                                                      |
|------------------------------------------------------------------------------------------------------|
|                                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                 | Pension Benefits |   | Health and LifeInsurance Benefits |
| (in millions)                                                                                        | 2015 |   | 2014 |   | 2013 |   | 2015 |   | 2014 |   | 2013 |
| Service cost for benefits earned during the period                                                   | $ | 13 |  |   | $ | 12 |  |   | $ | 20 |  |   | $ | 6 |  |   | $ | 5 |  |   | $ | 7 |  |
| Interest on obligation                                                                               | 142 |  |   | 158 |  |   | 143 |  |   | 71 |  |   | 68 |  |   | 62 |  |
| Amortization of cumulative loss                                                                      | 97 |  |   | 94 |  |   | 128 |  |   | 39 |  |   | 16 |  |   | 29 |  |
| Amortization of prior service cost (benefit)                                                         | 1 |  |   | — |  |   | 1 |  |   | (4 | ) |   | (4 | ) |   | (4 | ) |
| Curtailments                                                                                         | — |  |   | — |  |   | 4 |  |   | — |  |   | — |  |   | — |  |
| Contractual termination benefits                                                                     | (1 | ) |   | 23 |  |   | — |  |   | (1 | ) |   | 2 |  |   | — |  |
| Premiums on pension insurance                                                                        | 11 |  |   | 12 |  |   | 9 |  |   | — |  |   | — |  |   | — |  |
| Expected return on assets                                                                            | (194 | ) |   | (193 | ) |   | (189 | ) |   | (30 | ) |   | (33 | ) |   | (33 | ) |
| Net postretirement benefits expense                                                                  | $ | 69 |  |   | $ | 106 |  |   | $ | 116 |  |   | $ | 81 |  |   | $ | 54 |  |   | $ | 61 |  |
| Other Changes in plan assets and benefit obligations recognized in other comprehensive loss (income) |   |   |   |   |   |   |   |   |   |   |   |
| Actuarial net loss (gain)                                                                            | $ | 312 |  |   | $ | 164 |  |   | $ | (422 | ) |   | $ | (7 | ) |   | $ | 326 |  |   | $ | (175 | ) |
| Amortization of cumulative loss                                                                      | (97 | ) |   | (94 | ) |   | (128 | ) |   | (39 | ) |   | (16 | ) |   | (29 | ) |
| Prior service benefit                                                                                | — |  |   | — |  |   | (1 | ) |   | — |  |   | — |  |   | — |  |
| Amortization of prior service benefit (cost)                                                         | (1 | ) |   | — |  |   | (1 | ) |   | 4 |  |   | 4 |  |   | 4 |  |
| Curtailments                                                                                         | — |  |   | — |  |   | (33 | ) |   | — |  |   | — |  |   | — |  |
| Currency translation                                                                                 | — |  |   | 1 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Total recognized in other comprehensive loss (income)                                                | $ | 214 |  |   | $ | 71 |  |   | $ | (585 | ) |   | $ | (42 | ) |   | $ | 314 |  |   | $ | (200 | ) |
| Total net postretirement benefits expense and other comprehensive loss (income)                      | $ | 283 |  |   | $ | 177 |  |   | $ | (469 | ) |   | $ | 39 |  |   | $ | 368 |  |   | $ | (139 | ) |

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |
| (in millions)                                | Pension Benefits |   | Health and Life Insurance Benefits |
| Amortization of prior service cost (benefit) | $ | — |  |   | $ | (1 | ) |
| Amortization of cumulative losses            | 103 |  |   | 33 |  |

----

|                                                                                    |
|------------------------------------------------------------------------------------|
|                                                                                    |  |  |  |  |  |  |  |  |  |  |  |
|                                                                               | Pension Benefits |   | Health and Life Insurance Benefits |
|                                                                               | 2015 |   | 2014 |   | 2015 |   | 2014 |
| Discount rate used to determine present value of benefit obligation at end of year | 4.0 | % |   | 3.7 | % |   | 4.1 | % |   | 3.7 | % |
| Expected rate of increase in future compensation levels                            | 3.5 | % |   | 3.5 | % |   | — |  |   | — |  |

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                    | Pension Benefits |   | Health and Life Insurance Benefits |
|                                                    | 2015 |   | 2014 |   | 2013 |   | 2015 |   | 2014 |   | 2013 |
| Discount rate                                           | 3.7 | % |   | 4.1 | % |   | 3.2 | % |   | 3.7 | % |   | 4.1 | % |   | 3.4 | % |
| Expected long-term rate of return on plan assets        | 7.8 | % |   | 7.8 | % |   | 8.0 | % |   | 7.8 | % |   | 7.8 | % |   | 8.0 | % |
| Expected rate of increase in future compensation levels | 3.5 | % |   | 3.5 | % |   | 3.5 | % |   | — |  |   | — |  |   | — |  |

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |
| (in millions)                                           | One-PercentagePoint Increase   |   | One-PercentagePoint Decrease   |
| Effect on total of service and interest cost components | $ | 12 |  |   | $ | (10 | ) |
| Effect on postretirement benefit obligation             | 264 |  |   | (219 | ) |

----

|         |                                                                                                                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Cash and short-term investments—Valued at cost plus earnings from investments for the period, which approximates fair market value due to the short-term duration. Cash equivalents are valued at net asset value as provided by the administrator of the fund. |

|         |                                                                                                                                                                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | U.S. Government and agency securities—Valued at the closing price reported on the active market on which the security is traded or valued by the trustee at year-end using various pricing services of financial institutions, including Interactive Data Corporation, Standard & Poor's and Telekurs. |

|         |                                                                                                                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Corporate debt securities—Valued by the trustee at year-end using various pricing services of financial institutions, including Interactive Data Corporation, Standard & Poor's and Telekurs. |

|         |                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------|
| • | Common and preferred stock—Valued at the closing price reported on the active market on which the security is traded. |

|         |                                                                                                                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Collective trusts, Partnerships/joint venture interests and Hedge funds—Valued at the net asset value provided by the administrator of the fund. The net asset value is based on the value of the underlying assets owned by the fund, minus its liabilities, divided by the number of units outstanding. |

|         |                                                                                                                                                                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Derivatives -Valued monthly for the trustee using various pricing services of financial institutions, including Interactive Data Corporation, Standard & Poor’s and Telekurs. Valued monthly by the trustee using various providers of derivatives pricing, most notably Numerix, Markit and Super Derivatives. |

----

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                        | 2015 |   | 2014 |
| (in millions)               | Level 1 |   | Level 2 |   | Level 3 |   | Total |   | Level 1 |   | Level 2 |   | Level 3 |   | Total |
| Asset Category              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents   | $ | 126 |  |   | $ | — |  |   | $ | — |  |   | $ | 126 |  |   | $ | 112 |  |   | $ | — |  |   | $ | — |  |   | $ | 112 |  |
| Equity                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Large Cap              | 209 |  |   | — |  |   | — |  |   | 209 |  |   | 227 |  |   | — |  |   | — |  |   | 227 |  |
| U.S. Small-Mid Cap          | 253 |  |   | — |  |   | — |  |   | 253 |  |   | 313 |  |   | — |  |   | — |  |   | 313 |  |
| Canadian                    | 30 |  |   | — |  |   | — |  |   | 30 |  |   | 44 |  |   | — |  |   | — |  |   | 44 |  |
| International               | 216 |  |   | — |  |   | — |  |   | 216 |  |   | 244 |  |   | — |  |   | — |  |   | 244 |  |
| Emerging Markets            | 77 |  |   | — |  |   | — |  |   | 77 |  |   | 108 |  |   | — |  |   | — |  |   | 108 |  |
| Equity derivative           | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (106 | ) |   | (106 | ) |
| Fixed Income                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate Bonds             | — |  |   | 193 |  |   | — |  |   | 193 |  |   | — |  |   | 200 |  |   | — |  |   | 200 |  |
| Government Bonds            | — |  |   | 599 |  |   | — |  |   | 599 |  |   | — |  |   | 630 |  |   | — |  |   | 630 |  |
| Asset Backed Securities     | — |  |   | 7 |  |   | — |  |   | 7 |  |   | — |  |   | 8 |  |   | — |  |   | 8 |  |
| Fixed income derivative     | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 1 |  |   | 1 |  |
| Collective Trusts and Other |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common and Preferred Stock  | — |  |   | 449 |  |   | — |  |   | 449 |  |   | — |  |   | 531 |  |   | — |  |   | 531 |  |
| Commodities                 | — |  |   | 21 |  |   | — |  |   | 21 |  |   | — |  |   | 58 |  |   | — |  |   | 58 |  |
| Hedge Funds                 | — |  |   | — |  |   | 109 |  |   | 109 |  |   | — |  |   | — |  |   | 106 |  |   | 106 |  |
| Private Equity              | — |  |   | — |  |   | 79 |  |   | 79 |  |   | — |  |   | — |  |   | 94 |  |   | 94 |  |
| Exchange Traded Funds       | 6 |  |   | — |  |   | — |  |   | 6 |  |   | 9 |  |   | — |  |   | — |  |   | 9 |  |
| Mutual Funds                | 29 |  |   | — |  |   | — |  |   | 29 |  |   | 29 |  |   | — |  |   | — |  |   | 29 |  |
| Real Estate                 | — |  |   | — |  |   | 1 |  |   | 1 |  |   | — |  |   | — |  |   | 1 |  |   | 1 |  |
| Total(A)                    | $ | 946 |  |   | $ | 1,269 |  |   | $ | 189 |  |   | $ | 2,404 |  |   | $ | 1,086 |  |   | $ | 1,427 |  |   | $ | 96 |  |   | $ | 2,609 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | For October 31, 2015 and 2014, the totals exclude $8 million and $9 million of receivables, respectively, 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, 2015 and 2014, 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 |   | Fixed Income Derivative |   | Equity Derivatives |
| Balance at November 1, 2013      | $ | 101 |  |   | $ | 103 |  |   | $ | 1 |  |   | $ | (13 | ) |   | $ | (72 | ) |
| Unrealized gains (losses)             | 5 |  |   | 10 |  |   | — |  |   | 14 |  |   | (43 | ) |
| Realized gains                        | — |  |   | 15 |  |   | — |  |   | — |  |   | — |  |
| Purchases, issuances, and settlements | — |  |   | (34 | ) |   | — |  |   | — |  |   | 9 |  |
| Balance at October 31, 2014      | $ | 106 |  |   | $ | 94 |  |   | $ | 1 |  |   | $ | 1 |  |   | $ | (106 | ) |
| Unrealized gains (losses)             | 2 |  |   | — |  |   | — |  |   | (1 | ) |   | 138 |  |
| Realized gains                        | 1 |  |   | 5 |  |   | — |  |   | 8 |  |   | (165 | ) |
| Purchases, issuances, and settlements | — |  |   | (20 | ) |   | — |  |   | (8 | ) |   | 133 |  |
| Balance at October 31, 2015      | $ | 109 |  |   | $ | 79 |  |   | $ | 1 |  |   | $ | — |  |   | $ | — |  |

----

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                        | 2015 |   | 2014 |
| (in millions)               | Level 1 |   | Level 2 |   | Level 3 |   | Total |   | Level 1 |   | Level 2 |   | Level 3 |   | Total |
| Asset Category              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents   | $ | 29 |  |   | $ | — |  |   | $ | — |  |   | $ | 29 |  |   | $ | 16 |  |   | $ | — |  |   | $ | — |  |   | $ | 16 |  |
| Equity                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Large Cap              | 25 |  |   | — |  |   | — |  |   | 25 |  |   | 28 |  |   | — |  |   | — |  |   | 28 |  |
| U.S. Small-Mid Cap          | 42 |  |   | — |  |   | — |  |   | 42 |  |   | 60 |  |   | — |  |   | — |  |   | 60 |  |
| International               | 53 |  |   | — |  |   | — |  |   | 53 |  |   | 60 |  |   | — |  |   | — |  |   | 60 |  |
| Emerging Markets            | 14 |  |   | — |  |   | — |  |   | 14 |  |   | 19 |  |   | — |  |   | — |  |   | 19 |  |
| Fixed Income                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate Bonds             | — |  |   | 58 |  |   | — |  |   | 58 |  |   | — |  |   | 55 |  |   | — |  |   | 55 |  |
| Government Bonds            | — |  |   | 42 |  |   | — |  |   | 42 |  |   | — |  |   | 49 |  |   | — |  |   | 49 |  |
| Asset Backed Securities     | — |  |   | 3 |  |   | — |  |   | 3 |  |   | — |  |   | 3 |  |   | — |  |   | 3 |  |
| Collective Trusts and Other |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common Stock                | — |  |   | 59 |  |   | — |  |   | 59 |  |   | — |  |   | 69 |  |   | — |  |   | 69 |  |
| Commodities                 | — |  |   | 1 |  |   | — |  |   | 1 |  |   | — |  |   | 10 |  |   | — |  |   | 10 |  |
| Hedge Funds                 | — |  |   | — |  |   | 22 |  |   | 22 |  |   | — |  |   | — |  |   | 22 |  |   | 22 |  |
| Private Equity              | — |  |   | — |  |   | 20 |  |   | 20 |  |   | — |  |   | — |  |   | 23 |  |   | 23 |  |
| Total(A)                    | $ | 163 |  |   | $ | 163 |  |   | $ | 42 |  |   | $ | 368 |  |   | $ | 183 |  |   | $ | 186 |  |   | $ | 45 |  |   | $ | 414 |  |

|     |                                                                                                                                                 |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | For both October 31, 2015 and 2014, the totals exclude $1 million of receivables, which are included in the change in plan asset table. |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |
| (in millions)                         | Hedge Funds |   | Private Equity |
| Balance at November 1, 2013      | $ | 21 |  |   | $ | 26 |  |
| Unrealized gains                      | 1 |  |   | 3 |  |
| Realized gains                        | — |  |   | 4 |  |
| Purchases, issuances, and settlements | — |  |   | (10 | ) |
| Balance at October 31, 2014      | $ | 22 |  |   | $ | 23 |  |
| Realized gains                        | — |  |   | 1 |  |
| Purchases, issuances, and settlements | — |  |   | (4 | ) |
| Balance at October 31, 2015      | $ | 22 |  |   | $ | 20 |  |

----

|                   |
|-------------------|
|                   |  |  |  |  |  |  |  |
| (in millions)     | Pension Benefit Payments |   | Other Postretirement Benefit Payments(A) |
| 2016              | $ | 304 |  |   | $ | 129 |  |
| 2017              | 298 |  |   | 121 |  |
| 2018              | 292 |  |   | 123 |  |
| 2019              | 285 |  |   | 122 |  |
| 2020              | 280 |  |   | 121 |  |
| 2021 through 2025 | 1,288 |  |   | 586 |  |

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

----

|                                                     |
|-----------------------------------------------------|
|                                                     |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                       | 2015 |   | 2014 |   | 2013 |
| Domestic                                            | $ | (215 | ) |   | $ | (398 | ) |   | $ | (1,045 | ) |
| Foreign                                             | 112 |  |   | (158 | ) |   | 71 |  |
| Loss from continuing operations before income taxes | $ | (103 | ) |   | $ | (556 | ) |   | $ | (974 | ) |

|                                    |
|------------------------------------|
|                                    |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                      | 2015 |   | 2014 |   | 2013 |
| Current:                           |   |   |   |   |   |
| Federal                            | $ | (2 | ) |   | $ | — |  |   | $ | 4 |  |
| State and local                    | (1 | ) |   | 7 |  |   | (10 | ) |
| Foreign                            | (64 | ) |   | (48 | ) |   | (58 | ) |
| Total current benefit (expense)    | $ | (67 | ) |   | $ | (41 | ) |   | $ | (64 | ) |
| Deferred:                          |  |   |  |   |  |
| Federal                            | 2 |  |   | 13 |  |   | 219 |  |
| State and local                    | — |  |   | — |  |   | 2 |  |
| Foreign                            | 14 |  |   | 2 |  |   | 14 |  |
| Total deferred benefit             | $ | 16 |  |   | $ | 15 |  |   | $ | 235 |  |
| Total income tax benefit (expense) | $ | (51 | ) |   | $ | (26 | ) |   | $ | 171 |  |

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                           | 2015 |   | 2014 |   | 2013 |
| Federal income tax benefit at the statutory rate of 35% | $ | 36 |  |   | $ | 195 |  |   | $ | 341 |  |
| State income taxes, net of federal benefit              | — |  |   | (4 | ) |   | (4 | ) |
| Credits and incentives                                  | 4 |  |   | (5 | ) |   | — |  |
| Adjustments to valuation allowances                     | (41 | ) |   | (234 | ) |   | (350 | ) |
| Foreign operations                                      | (48 | ) |   | (31 | ) |   | (8 | ) |
| Unremitted foreign earnings                             | (31 | ) |   | (6 | ) |   | — |  |
| Adjustments to uncertain tax positions                  | (1 | ) |   | 15 |  |   | (16 | ) |
| Income tax related to equity components                 | — |  |   | 13 |  |   | 220 |  |
| Non-controlling interest adjustment                     | 11 |  |   | 14 |  |   | 19 |  |
| Other                                                   | 19 |  |   | 17 |  |   | (31 | ) |
| Recorded income tax benefit (expense)                   | $ | (51 | ) |   | $ | (26 | ) |   | $ | 171 |  |

----

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |
| (in millions)                             | 2015 |   | 2014 |
| Deferred tax assets attributable to:      |   |   |   |
| Employee benefits liabilities             | $ | 1,253 |  |   | $ | 1,210 |  |
| Net operating loss ("NOL") carryforwards  | 1,161 |  |   | 1,213 |  |
| Product liability and warranty accruals   | 419 |  |   | 494 |  |
| Research and development                  | 135 |  |   | 9 |  |
| Tax credit carryforwards                  | 266 |  |   | 256 |  |
| Other                                     | 239 |  |   | 194 |  |
| Gross deferred tax assets                 | 3,473 |  |   | 3,376 |  |
| Less: Valuation allowances                | 3,260 |  |   | 3,174 |  |
| Net deferred tax assets                   | $ | 213 |  |   | $ | 202 |  |
| Deferred tax liabilities attributable to: |  |  |   |  |
| Unremitted foreign earnings               | $ | (37 | ) |   | $ | (6 | ) |
| Other                                     | (26 | ) |   | (10 | ) |
| Total deferred tax liabilities            | $ | (63 | ) |   | $ | (16 | ) |

----

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |
| (in millions)                                                    | 2015 |
| Liability for uncertain tax positions at November 1              | $ | 47 |  |
| Decrease as a result of positions taken in prior periods         | (1 | ) |
| Decrease as a result of foreign currency translation adjustments | (3 | ) |
| Settlements                                                      | (2 | ) |
| Liability for uncertain tax positions at October 31              | $ | 41 |  |

----

|         |                                                                                              |
|---------|----------------------------------------------------------------------------------------------|
| • | 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. |

----

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                              | October 31, 2015 |   | October 31, 2014 |
| (in millions)                     | Level 1 |   | Level 2 |   | Level 3 |   | Total |   | Level 1 |   | Level 2 |   | Level 3 |   | Total |
| Assets                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Marketable securities:            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury bills               | $ | 53 |  |   | $ | — |  |   | $ | — |  |   | $ | 53 |  |   | $ | 256 |  |   | $ | — |  |   | $ | — |  |   | $ | 256 |  |
| Other                             | 106 |  |   | — |  |   | — |  |   | 106 |  |   | 349 |  |   | — |  |   | — |  |   | 349 |  |
| Derivative financial instruments: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency contracts(A)     | — |  |   | 1 |  |   | — |  |   | 1 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Interest rate caps(B)             | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 1 |  |   | — |  |   | 1 |  |
| Total assets                      | $ | 159 |  |   | $ | 1 |  |   | $ | — |  |   | $ | 160 |  |   | $ | 605 |  |   | $ | 1 |  |   | $ | — |  |   | $ | 606 |  |
| Liabilities                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative financial instruments: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity forward contracts(C,D)  | $ | — |  |   | $ | 2 |  |   | $ | — |  |   | $ | 2 |  |   | $ | — |  |   | $ | 2 |  |   | $ | — |  |   | $ | 2 |  |
| Foreign currency contracts(C)     | — |  |   | 2 |  |   | — |  |   | 2 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Guarantees                        | — |  |   | — |  |   | 10 |  |   | 10 |  |   | — |  |   | — |  |   | 8 |  |   | 8 |  |
| Total liabilities                 | $ | — |  |   | $ | 4 |  |   | $ | 10 |  |   | $ | 14 |  |   | $ | — |  |   | $ | 2 |  |   | $ | 8 |  |   | $ | 10 |  |

|     |                                                                                                                                                                |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | The asset value of foreign currency contracts are included in other current assets as of October 31, 2015 in the accompanying Consolidated Balance Sheets. |

|     |                                                                                                                                                                |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B) | The asset value of interest rate caps are included in other noncurrent assets as of October 31, 2014 in the accompanying Consolidated Balance Sheets. |

|     |                                                                                                                                                                                                         |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (C) | The liability value of commodity forward contracts and foreign currency contracts are included in other current liabilities as of October 31, 2015 in the accompanying Consolidated Balance Sheets. |

|     |                                                                                                                                                                                  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (D) | The liability value of commodity forward contracts are included in other noncurrent liabilities as of October 31, 2014 in the accompanying Consolidated Balance Sheets. |

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |
| (in millions)                                                   | October 31, 2015 |   | October 31, 2014 |
| Guarantees, at beginning of period                              | $ | (8 | ) |   | $ | (6 | ) |
| Transfers out of Level 3                                        | — |  |   | — |  |
| Issuances                                                       | (5 | ) |   | (2 | ) |
| Settlements                                                     | 3 |  |   | — |  |
| Guarantees, at end of period                                    | $ | (10 | ) |   | $ | (8 | ) |
| Change in unrealized gains on assets and liabilities still held | $ | — |  |   | $ | — |  |

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |
| (in millions)                                      | October 31, 2015 |  | October 31, 2014 |
| Level 2 financial instruments                      |   |   |   |
| Carrying value of impaired finance receivables (A) | $ | 21 |  |   | $ | 20 |  |
| Specific loss reserve                              | (9 | ) |   | (6 | ) |
| Fair value                                         | $ | 12 |  |   | $ | 14 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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. Fair values of the underlying collateral are determined by reference to dealer vehicle value publications adjusted for certain market factors. |

----

|                                                                                                 |
|-------------------------------------------------------------------------------------------------|
|                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                            | As of October 31, 2015 |
|                                                                                            | Estimated Fair Value |   | Carrying Value |
| (in millions)                                                                                   | Level 1 |   | Level 2 |   | Level 3 |   | Total |   |
| Assets                                                                                          |   |   |   |   |   |   |   |   |   |
| Retail notes                                                                                    | $ | — |  |   | $ | — |  |   | $ | 170 |  |   | $ | 170 |  |   | $ | 166 |  |
| Notes receivable                                                                                | — |  |   | — |  |   | 3 |  |   | 3 |  |   | 3 |  |
| Liabilities                                                                                     |   |   |   |   |   |   |   |   |   |
| Debt:                                                                                           |   |   |   |   |   |   |   |   |   |
| Manufacturing operations                                                                        |   |   |   |   |   |   |   |   |   |
| Senior Secured Term Loan Credit Facility, as Amended, due 2020                                  | — |  |   | — |  |   | 1,014 |  |   | 1,014 |  |   | 1,023 |  |
| 8.25% Senior Notes, due 2021                                                                    | 998 |  |   | — |  |   | — |  |   | 998 |  |   | 1,182 |  |
| 4.50% Senior Subordinated Convertible Notes, due 2018(A)                                   | — |  |   | — |  |   | 148 |  |   | 148 |  |   | 186 |  |
| 4.75% Senior Subordinated Convertible Notes, due 2019(A)                                        | — |  |   | — |  |   | 289 |  |   | 289 |  |   | 379 |  |
| Debt of majority-owned dealerships                                                              | — |  |   | — |  |   | 28 |  |   | 28 |  |   | 28 |  |
| Financing arrangements                                                                          | — |  |   | — |  |   | 17 |  |   | 17 |  |   | 43 |  |
| Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040                                 | — |  |   | 233 |  |   | — |  |   | 233 |  |   | 225 |  |
| Financed lease obligations                                                                      | — |  |   | — |  |   | 111 |  |   | 111 |  |   | 111 |  |
| Other                                                                                           | — |  |   | — |  |   | 17 |  |   | 17 |  |   | 15 |  |
| Financial Services operations                                                                   |   |   |   |   |   |   |   |   |   |
| Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2018      | — |  |   | — |  |   | 865 |  |   | 865 |  |   | 870 |  |
| Bank revolvers, at fixed and variable rates, due dates from 2016 through 2020                   | — |  |   | — |  |   | 1,048 |  |   | 1,048 |  |   | 1,063 |  |
| Commercial paper, at variable rates, program matures in 2017                                    | 86 |  |   | — |  |   | — |  |   | 86 |  |   | 86 |  |
| Borrowings secured by operating and finance leases, at various rates, due serially through 2020 | — |  |   | — |  |   | 80 |  |   | 80 |  |   | 81 |  |

----

|                                                                                                 |
|-------------------------------------------------------------------------------------------------|
|                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                            | As of October 31, 2014 |
|                                                                                            | Estimated Fair Value |   | Carrying Value |
| (in millions)                                                                                   | Level 1 |   | Level 2 |   | Level 3 |   | Total |   |
| Assets                                                                                          |   |   |   |   |   |   |   |   |   |
| Retail notes                                                                                    | $ | — |  |   | $ | — |  |   | $ | 279 |  |   | $ | 279 |  |   | $ | 275 |  |
| Notes receivable                                                                                | — |  |   | — |  |   | 7 |  |   | 7 |  |   | 8 |  |
| Liabilities                                                                                     |   |   |   |   |   |   |   |   |   |
| Debt:                                                                                           |   |   |   |   |   |   |   |   |   |
| Manufacturing operations                                                                        |   |   |   |   |   |   |   |   |   |
| Senior Secured Term Loan Credit Facility, as Amended, due 2017                                  | — |  |   | — |  |   | 704 |  |   | 704 |  |   | 694 |  |
| 8.25% Senior Notes, due 2021                                                                    | 1,285 |  |   | — |  |   | — |  |   | 1,285 |  |   | 1,180 |  |
| 4.50% Senior Subordinated Convertible Notes, due 2018(A)                                        | — |  |   | — |  |   | 196 |  |   | 196 |  |   | 181 |  |
| 4.75% Senior Subordinated Convertible Notes, due 2019(A)                                        | — |  |   | — |  |   | 413 |  |   | 413 |  |   | 371 |  |
| Debt of majority-owned dealerships                                                              | — |  |   | — |  |   | 30 |  |   | 30 |  |   | 30 |  |
| Financing arrangements                                                                          | — |  |   | — |  |   | 22 |  |   | 22 |  |   | 48 |  |
| Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040                                 | — |  |   | 232 |  |   | — |  |   | 232 |  |   | 225 |  |
| Promissory Note                                                                                 | — |  |   | — |  |   | 10 |  |   | 10 |  |   | 10 |  |
| Financed lease obligations                                                                      | — |  |   | — |  |   | 184 |  |   | 184 |  |   | 184 |  |
| Other                                                                                           | — |  |   | — |  |   | 28 |  |   | 28 |  |   | 29 |  |
| Financial Services operations                                                                   |   |   |   |   |   |   |   |   |   |
| Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2019      | — |  |   | — |  |   | 911 |  |   | 911 |  |   | 914 |  |
| Bank revolvers, at fixed and variable rates, due dates from 2014 through 2020                   | — |  |   | — |  |   | 1,214 |  |   | 1,214 |  |   | 1,242 |  |
| Commercial paper, at variable rates, program matures in 2015                                    | 74 |  |   | — |  |   | — |  |   | 74 |  |   | 74 |  |
| Borrowings secured by operating and finance leases, at various rates, due serially through 2018 | — |  |   | — |  |   | 36 |  |   | 36 |  |   | 36 |  |

|     |                                                                                                                                                                                                                                                                                                                                           |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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 internally developed valuation techniques such as discounted cash flow modeling for Level 3 convertible notes which include the equity feature. |

----

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  |   |   | Amount of Loss (Gain) Recognized |
| (in millions)                         | Location in Consolidated                                                                                                                                                             Statements of Operations |   | 2015 |   | 2014 |   | 2013 |
| Interest rate caps                    | Interest expense |   | $ | 1 |  |   | $ | 1 |  |   | $ | — |  |
| Cross currency swaps                  | Other income, net |   | 2 |  |   | 3 |  |   | — |  |
| Foreign currency contracts            | Other income, net |   | (9 | ) |   | (1 | ) |   | (4 | ) |
| Commodity forward contracts | Costs of products sold |   | 12 |  |   | 1 |  |   | 2 |  |
| Total loss (gain)                     |   | $ | 6 |  |   | $ | 4 |  |   | $ | (2 | ) |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |
| (in millions)             | Currency |   | Notional Amount |   | Maturity |
| As of October 31, 2015    |   |   |   |   |   |
| Forward exchange contract | EUR |   | € | 30 |  |   | November 2015 - October 2016 (A) |
| Forward exchange contract | CAD |   | C$ | 25 |  |   | November 2015(B) |
| Forward exchange contract | MXN |   | ₱ | 1,270 |  |   | November 2015(C) |
| As of October 31, 2014    |   |   |   |   |   |
| Forward exchange contract | EUR |   | € | 22 |  |   | November 2014 - October 2015 |
| Forward exchange contract | EUR |   | € | 4 |  |   | December 2014 |
| Forward exchange contract | EUR |   | € | 5 |  |   | January 2015 |
| Forward exchange contract | EUR |   | € | 9 |  |   | February 2015 - October 2015(D) |

----

----

----

----

----

----

----

|         |                                                                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The export truck and parts operations, formerly in our Global Operations segment, are now included within the results of our Truck and Parts segments, respectively. |

|         |                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Parts required to support the military truck lines, formerly within our Parts segment, are now included within the results of our Truck segment. |

|         |                                                                                                                                                                                                                                              |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Our Truck segment manufactures and distributes Class 4 through 8 trucks, buses, and military vehicles under the International and IC Bus ("IC") brands, along with production of engines under the proprietary brand name and parts |

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Our Parts segment provides customers with proprietary products needed to support the International commercial truck, IC Bus, proprietary engine lines, and export parts business, as well as our other product lines. Our Parts segment also provides a wide selection of other standard truck, trailer, and engine aftermarket parts. Also included in the Parts segment are the operating results of BDP, which manages the sourcing, merchandising, and distribution of certain service parts we sell to Ford in North America. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Our Global Operations segment primarily consists of the IIAA (formerly MWM International Industria De Motores Da America Do Sul Ltda. ("MWM")) engine and truck operations in Brazil. The IIAA engine operations produce diesel engines, primarily under contract manufacturing arrangements, as well as under the MWM brand, for sale to OEMs in South America. In addition, our Global Operations segment includes the operating results of our joint venture in China with Anhui Jianghuai Automobile Co ("JAC"). |

|         |                                                                                                                                                                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 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 for the Manufacturing operations are included in corporate expenses. |

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

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The Financial Services segment finances certain sales to our dealers in North America, which include an interest-free period that varies in length, that are subsidized by our Truck and Parts segments. Additionally, the Financial Services segment reports intersegment revenues from secured loans to the Manufacturing operations. 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. |

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

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

|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                            | Truck |  | Parts |  | Global Operations |  | FinancialServices(A) |  | CorporateandEliminations |  | Total |
| Year Ended October 31, 2015                                              |  |  |  |  |  |  |  |  |  |  |  |
| External sales and revenues, net                                         | $ | 7,055 |  |   | $ | 2,475 |  |   | $ | 455 |  |   | $ | 145 |  |   | $ | 10 |  |   | $ | 10,140 |  |
| Intersegment sales and revenues                                          | 158 |  |   | 38 |  |   | 51 |  |   | 96 |  |   | (343 | ) |   | — |  |
| Total sales and revenues, net                                            | $ | 7,213 |  |   | $ | 2,513 |  |   | $ | 506 |  |   | $ | 241 |  |   | $ | (333 | ) |   | $ | 10,140 |  |
| Income (loss) from continuing operations attributable to NIC, net of tax | $ | (141 | ) |   | $ | 592 |  |   | $ | (67 | ) |   | $ | 98 |  |   | $ | (669 | ) |   | $ | (187 | ) |
| Income tax expense                                                       | — |  |   | — |  |   | — |  |   | — |  |   | (51 | ) |   | (51 | ) |
| Segment profit (loss)                                                    | $ | (141 | ) |   | $ | 592 |  |   | $ | (67 | ) |   | $ | 98 |  |   | $ | (618 | ) |   | $ | (136 | ) |
| Depreciation and amortization                                            | $ | 173 |  |   | $ | 14 |  |   | $ | 23 |  |   | $ | 51 |  |   | $ | 20 |  |   | $ | 281 |  |
| Interest expense                                                         | — |  |   | — |  |   | — |  |   | 74 |  |   | 233 |  |   | 307 |  |
| Equity in income (loss) of non-consolidated affiliates                   | 5 |  |   | 4 |  |   | (3 | ) |   | — |  |   | — |  |   | 6 |  |
| Capital expenditures(B)                                                  | 92 |  |   | 3 |  |   | 4 |  |   | 4 |  |   | 12 |  |   | 115 |  |

----

|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                            | Truck |   | Parts |   | Global Operations |   | FinancialServices(A) |   | CorporateandEliminations |   | Total |
| Year Ended October 31, 2014                                              |   |   |   |   |   |   |   |   |   |   |   |
| External sales and revenues, net                                         | $ | 7,255 |  |   | $ | 2,493 |  |   | $ | 905 |  |   | $ | 153 |  |   | $ | — |  |   | $ | 10,806 |  |
| Intersegment sales and revenues                                          | 218 |  |   | 58 |  |   | 35 |  |   | 79 |  |   | (390 | ) |   | — |  |
| Total sales and revenues, net                                            | $ | 7,473 |  |   | $ | 2,551 |  |   | $ | 940 |  |   | $ | 232 |  |   | $ | (390 | ) |   | $ | 10,806 |  |
| Income (loss) from continuing operations attributable to NIC, net of tax | $ | (380 | ) |   | $ | 528 |  |   | $ | (274 | ) |   | $ | 97 |  |   | $ | (593 | ) |   | $ | (622 | ) |
| Income tax expense                                                       | — |  |   | — |  |   | — |  |   | — |  |   | (26 | ) |   | (26 | ) |
| Segment profit (loss)                                                    | $ | (380 | ) |   | $ | 528 |  |   | $ | (274 | ) |   | $ | 97 |  |   | $ | (567 | ) |   | $ | (596 | ) |
| Depreciation and amortization                                            | $ | 216 |  |   | $ | 15 |  |   | $ | 28 |  |   | $ | 46 |  |   | $ | 27 |  |   | $ | 332 |  |
| Interest expense                                                         | — |  |   | — |  |   | — |  |   | 71 |  |   | 243 |  |   | 314 |  |
| Equity in income of non-consolidated affiliates                          | 5 |  |   | 4 |  |   | — |  |   | — |  |   | — |  |   | 9 |  |
|        Capital expenditures(B)        | 65 |  |   | 6 |  |   | 8 |  |   | 1 |  |   | 8 |  |   | 88 |  |

|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                            | Truck |   | Parts |   | Global Operations |   | FinancialServices(A) |   | CorporateandEliminations |   | Total |
| Year Ended October 31, 2013                                              |   |   |   |   |   |   |   |   |   |   |   |
| External sales and revenues, net                                         | $ | 7,049 |  |   | $ | 2,448 |  |   | $ | 1,120 |  |   | $ | 158 |  |   | $ | — |  |   | $ | 10,775 |  |
| Intersegment sales and revenues                                          | 242 |  |   | 62 |  |   | 77 |  |   | 75 |  |   | (456 | ) |   | — |  |
| Total sales and revenues, net                                            | $ | 7,291 |  |   | $ | 2,510 |  |   | $ | 1,197 |  |   | $ | 233 |  |   | $ | (456 | ) |   | $ | 10,775 |  |
| Income (loss) from continuing operations attributable to NIC, net of tax | $ | (883 | ) |   | $ | 463 |  |   | $ | (12 | ) |   | $ | 81 |  |   | $ | (506 | ) |   | $ | (857 | ) |
| Income tax benefit                                                       | — |  |   | — |  |   | — |  |   | — |  |   | 171 |  |   | 171 |  |
| Segment profit (loss)                                                    | $ | (883 | ) |   | $ | 463 |  |   | $ | (12 | ) |   | $ | 81 |  |   | $ | (677 | ) |   | $ | (1,028 | ) |
| Depreciation and amortization                                            | $ | 305 |  |   | $ | 17 |  |   | $ | 32 |  |   | $ | 40 |  |   | $ | 23 |  |   | $ | 417 |  |
| Interest expense                                                         | — |  |   | — |  |   | — |  |   | 70 |  |   | 251 |  |   | 321 |  |
| Equity in income (loss) of non-consolidated affiliates                   | 10 |  |   | 6 |  |   | (5 | ) |   | — |  |   | — |  |   | 11 |  |
|        Capital expenditures(B)        | 137 |  |   | 2 |  |   | 14 |  |   | 2 |  |   | 12 |  |   | 167 |  |

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)          | Truck |   | Parts |   | Global Operations |   | FinancialServices |   | CorporateandEliminations |   | Total |
| Segment assets, as of: |   |   |   |   |   |   |   |   |   |   |   |
| October 31, 2015       | $ | 1,876 |  |   | $ | 641 |  |   | $ | 409 |  |   | $ | 2,455 |  |   | $ | 1,311 |  |   | $ | 6,692 |  |
| October 31, 2014(C)    | 2,245 |  |   | 672 |  |   | 657 |  |   | 2,582 |  |   | 1,287 |  |   | 7,443 |  |

|     |                                                                                                                                                                                  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Total sales and revenues in the Financial Services segment include interest revenues of $175 million, $170 million, and $181 million for 2015, 2014, and 2013, respectively. |

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

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (C) | During the third quarter of 2015, it was determined that multiemployer plan accounting should have been applied in recording postretirement benefits related to our Financial Services segment, which provides that assets and liabilities of a plan are recorded only on the parent company and that periodic contributions to the plan made by the participating subsidiary are charged to expense for the purposes of the subsidiary's financial statements.  As a result, we have reclassified $16 million of deferred tax assets between Financial Services and Corporate and Eliminations related to the postretirement benefits.  This reclassification did not impact consolidated segment assets for the year-ended October 31, 2014. |

----

|                     |
|---------------------|
|                     |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)       | 2015 |   | 2014 |   | 2013 |
| Sales and revenues: |   |   |   |   |   |
| Trucks              | $ | 6,845 |  |   | $ | 7,137 |  |   | $ | 6,738 |  |
| Parts               | 2,399 |  |   | 2,424 |  |   | 2,906 |  |
| Engine              | 751 |  |   | 1,092 |  |   | 973 |  |
| Financial Services  | 145 |  |   | 153 |  |   | 158 |  |

|                     |
|---------------------|
|                     |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)       | 2015 |   | 2014 |   | 2013 |
| Sales and revenues: |   |   |   |   |   |
| United States       | $ | 7,722 |  |   | $ | 7,760 |  |   | $ | 7,122 |  |
| Canada              | 774 |  |   | 749 |  |   | 791 |  |
| Mexico              | 653 |  |   | 657 |  |   | 694 |  |
| Brazil              | 486 |  |   | 833 |  |   | 1,121 |  |
| Other               | 505 |  |   | 807 |  |   | 1,047 |  |

|                       |
|-----------------------|
|                       |  |  |  |  |  |  |  |
| (in millions)         | 2015 |   | 2014 |
| Long-lived assets:(A) |   |   |   |
| United States         | $ | 1,126 |  |   | $ | 1,277 |  |
| Canada                | 19 |  |   | 26 |  |
| Mexico                | 186 |  |   | 190 |  |
| Brazil                | 98 |  |   | 182 |  |
| Other                 | 11 |  |   | 15 |  |

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

----

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                    | Unrealized Gain on Marketable Securities |   | Foreign Currency Translation Adjustments |   | Defined Benefit Plans |   | Total |
| Balance as of October 31, 2014                                   | $ | 1 |  |   | $ | (127 | ) |   | $ | (2,137 | ) |   | $ | (2,263 | ) |
| Other comprehensive loss before reclassifications                | — |  |   | (160 | ) |   | (309 | ) |   | (469 | ) |
| Amounts reclassified out of accumulated other comprehensive loss | — |  |   | — |  |   | 131 |  |   | 131 |  |
| Net current-period other comprehensive loss                      | — |  |   | (160 | ) |   | (178 | ) |   | (338 | ) |
| Balance as of October 31, 2015                                   | $ | 1 |  |   | $ | (287 | ) |   | $ | (2,315 | ) |   | $ | (2,601 | ) |

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                    | Unrealized Gain on Marketable Securities |   | Foreign Currency Translation Adjustments |   | Defined Benefit Plans |   | Total |
| Balance as of October 31, 2013                                   | $ | — |  |   | $ | (75 | ) |   | $ | (1,749 | ) |   | $ | (1,824 | ) |
| Other comprehensive income (loss) before reclassifications       | 1 |  |   | (52 | ) |   | (491 | ) |   | (542 | ) |
| Amounts reclassified out of accumulated other comprehensive loss | — |  |   | — |  |   | 103 |  |   | 103 |  |
| Net current-period other comprehensive income (loss)             | 1 |  |   | (52 | ) |   | (388 | ) |   | (439 | ) |
| Balance as of October 31, 2014                                   | $ | 1 |  |   | $ | (127 | ) |   | $ | (2,137 | ) |   | $ | (2,263 | ) |

----

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |  |  |  |
|                                               |   | Location in Consolidated Statements of Operations |   | 2015 |   | 2014 |
| Defined benefit plans                              |   |   |   |   |   |   |
| Amortization of prior service benefit              |   | Selling, general and administrative expenses |   | $ | (4 | ) |   | $ | (4 | ) |
| Amortization of actuarial loss                     |   | Selling, general and administrative expenses |   | 136 |  |   | 109 |  |
|                                               |   | Total before tax |   | 132 |  |   | 105 |  |
|                                               |   | Tax expense |   | (1 | ) |   | (2 | ) |
| Total reclassifications for the period, net of tax |   | $ | 131 |  |   | $ | 103 |  |

|                                                                                 |
|---------------------------------------------------------------------------------|
|                                                                                 |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except per share data)                                            | 2015 |   | 2014 |   | 2013 |
| Numerator:                                                                      |   |   |   |   |   |
| Amounts attributable to Navistar International Corporation common stockholders: |   |   |   |   |   |
| Loss from continuing operations, net of tax                                     | $ | (187 | ) |   | $ | (622 | ) |   | $ | (857 | ) |
| Income (loss) from discontinued operations, net of tax                          | 3 |  |   | 3 |  |   | (41 | ) |
| Net loss                                                                        | $ | (184 | ) |   | $ | (619 | ) |   | $ | (898 | ) |
|                                                                            |   |   |   |   |   |
| Denominator:                                                                    |   |   |   |   |   |
| Weighted average shares outstanding:                                            |   |   |   |   |   |
| Basic                                                                           | 81.6 |  |   | 81.4 |  |   | 80.4 |  |
| Effect of dilutive securities                                                   | — |  |   | — |  |   | — |  |
| Diluted                                                                         | 81.6 |  |   | 81.4 |  |   | 80.4 |  |
|                                                                            |   |   |   |   |   |
| Earnings (loss) per share attributable to Navistar International Corporation:   |   |   |   |   |   |
| Basic:                                                                          |   |   |   |   |   |
| Continuing operations                                                           | $ | (2.29 | ) |   | $ | (7.64 | ) |   | $ | (10.66 | ) |
| Discontinued operations                                                         | 0.04 |  |   | 0.04 |  |   | (0.51 | ) |
| Net loss                                                                        | $ | (2.25 | ) |   | $ | (7.60 | ) |   | $ | (11.17 | ) |
| Diluted:                                                                        |   |   |   |   |   |
| Continuing operations                                                           | $ | (2.29 | ) |   | $ | (7.64 | ) |   | $ | (10.66 | ) |
| Discontinued operations                                                         | 0.04 |  |   | 0.04 |  |   | (0.51 | ) |
| Net loss                                                                        | $ | (2.25 | ) |   | $ | (7.60 | ) |   | $ | (11.17 | ) |

----

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Ownership Program—In June 1997, our Board of Directors approved the terms of the Ownership Program, as amended from time to time (the "Ownership Program"). In general, under the Ownership Program in existence until November 2013, all officers and senior managers were required to acquire, by direct purchase or through salary or annual bonus reduction, an ownership interest in the Company by acquiring a designated amount of our common stock based on organizational level. Participants were required to hold such stock for the entire period in which they are employed by the Company. The Ownership Program was amended and restated effective November 1, 2013 on a going forward basis. The new guidelines (i) increase stock ownership guideline multiples to six times salary for the President and CEO and up to three times salary for other senior executives; (ii) modify retention requirements for Company granted equity until ownership requirements are met; (iii) add a holding period for shares acquired through transactions with Company granted equity after the executives satisfy the stock ownership requirement; (iv) eliminate the granting of premium shares as an inducement to executives fulfilling stock ownership guidelines on an accelerated basis; and (v) eliminate the required time frame to fulfill stock ownership guidelines. Under the prior Ownership Program, participants were entitled to defer their cash bonus into deferred share units ("DSUs"), which vested immediately. There were 2,365 DSUs outstanding as of October 31, 2015. Premium share units ("PSUs") were also eligible to be awarded to participants who complete their ownership requirement on an accelerated basis. PSUs vested annually, pro rata over three years. There were 46,631 PSUs outstanding as of October 31, 2015 under the prior Ownership Program. Each vested DSU and PSU will be settled by delivery of one share of common stock within ten days after a participant's termination of employment or at such later date as required by Internal Revenue Code Section Rule 409A. Beginning in February 2013, PSUs and DSUs awarded under the prior Ownership Program were issued under the 2013 PIP. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Deferred Fee Plan—Under the Deferred Fee Plan, non-employee directors may elect to defer payment of all or a portion of their retainer fees and meeting fees in cash (with interest) or in stock units. Deferrals in the deferred stock account are valued as if each deferral was vested in NIC common stock as of the deferral date. As of October 31, 2015, 45,724 deferred shares were outstanding under the Deferred Fee Plan.  Beginning on September 30, 2013, shares deferred by non-employee directors are issued out of the 2013 PIP. The Deferred Fee Plan was amended and restated effective November 1, 2013 on a going forward basis. |

----

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                      | 2015 |   | 2014 |   | 2013 |
|                                      | 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 | 3,657 |  |   | $ | 39.46 |  |   | 5,000 |  |   | $ | 37.94 |  |   | 5,636 |  |   | $ | 37.89 |  |
| Granted                                   | 40 |  |   | 37.03 |  |   | 251 |  |   | 38.51 |  |   | 926 |  |   | 31.64 |  |
| Exercised                                 | (44 | ) |   | 25.68 |  |   | (784 | ) |   | 24.33 |  |   | (451 | ) |   | 26.16 |  |
| Forfeited/expired                         | (767 | ) |   | 40.60 |  |   | (810 | ) |   | 44.41 |  |   | (1,111 | ) |   | 37.24 |  |
| Options outstanding, at end of year       | 2,886 |  |   | 39.33 |  |   | 3,657 |  |   | 39.46 |  |   | 5,000 |  |   | 37.94 |  |
| Options exercisable, at end of year       | 2,407 |  |   | 40.27 |  |   | 2,637 |  |   | 41.34 |  |   | 3,468 |  |   | 38.22 |  |

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                        | Shares |   | Weighted Average Remaining Contractual Life |   | Weighted Average Exercise Price   |   | Aggregate Intrinsic Value |
| Range of Exercise Prices:   | (in thousands) |   | (in years) |   |   |   | (in millions) |
| $ 21.02 - $ 31.19 | 790 |  |   | 4.0 |  |   | $ | 27.33 |  |   | $ | — |  |
| $ 31.20 - $ 40.92 | 1,380 |  |   | 3.3 |  |   | 36.85 |  |   | — |  |
| $ 40.93 - $ 68.65 | 716 |  |   | 2.5 |  |   | 57.35 |  |   | — |  |
| Options Outstanding         | 2,886 |  |   |   |   |   |   |   |

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                        | Shares |   | Weighted Average Remaining Contractual Life |   | Weighted Average Exercise Price   |   | Aggregate Intrinsic Value |
| Range of Exercise Prices:   | (in thousands) |   | (in years) |   |   |   | (in millions) |
| $ 21.02 - $ 31.19 | 604 |  |   | 3.9 |  |   | $ | 26.72 |  |   | $ | — |  |
| $ 31.20 - $ 40.92 | 1,140 |  |   | 3.0 |  |   | 36.87 |  |   | — |  |
| $ 40.93 - $ 68.65 | 663 |  |   | 2.3 |  |   | 58.44 |  |   | — |  |
| Options Exercisable         | 2,407 |  |   |   |   |   |   |   |

|                          |
|--------------------------|
|                          |  |  |  |  |  |  |  |  |
|                     | 2015 |   | 2014 |   | 2013 |
| Risk-free interest rate  | 1.6 | % |   | 1.6 | % |   | 0.8 | % |
| Expected volatility      | 40.2 | % |   | 45.6 | % |   | 54.7 | % |
| Expected life (in years) | 4.9 |  |   | 4.9 |  |   | 5.1 |  |

----

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                            | 2015 |   | 2014 |   | 2013 |
|                            | Shares |   | Weighted Average Grant Date Fair Value |   | Shares |   | Weighted Average Grant Date Fair Value |   | Shares |   | Weighted Average Grant Date Fair Value |
|                            | (in thousands) |   |   |   | (in thousands) |   |   |   | (in thousands) |   |   |
| Nonvested, at beginning of year | 41 |  |   | $ | 24.13 |  |   | 41 |  |   | $ | 24.13 |  |   | 41 |  |   | $ | 24.13 |  |
| Granted                         | 2 |  |   | 29.50 |  |   | 4 |  |   | 33.70 |  |   | 2 |  |   | 34.19 |  |
| Vested                          | (43 | ) |   | 24.38 |  |   | (4 | ) |   | 33.70 |  |   | (2 | ) |   | 34.19 |  |
| Nonvested, at end of year       | — |  |   | — |  |   | 41 |  |   | 24.13 |  |   | 41 |  |   | 24.13 |  |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                            | Shares-Settled RSUs |
|                            | 2015 |   | 2014 |   | 2013 |
|                            | Shares |   | Weighted Average Grant Date Fair Value |   | Shares |   | Weighted Average Grant Date Fair Value |   | Shares |   | Weighted Average Grant Date Fair Value |
|                            | (in thousands) |   |   |   | (in thousands) |   |   |   | (in thousands) |   |   |
| Nonvested, at beginning of year | 188 |  |   | $ | 28.75 |  |   | 299 |  |   | $ | 29.54 |  |   | 77 |  |   | $ | 45.93 |  |
| Granted                         | — |  |   | — |  |   | — |  |   | — |  |   | 316 |  |   | 28.13 |  |
| Vested                          | (114 | ) |   | 28.91 |  |   | (90 | ) |   | 31.74 |  |   | (26 | ) |   | 35.84 |  |
| Forfeited                       | (5 | ) |   | 27.24 |  |   | (21 | ) |   | 27.24 |  |   | (68 | ) |   | 39.13 |  |
| Nonvested, at end of year       | 69 |  |   | 28.60 |  |   | 188 |  |   | 28.75 |  |   | 299 |  |   | 29.54 |  |
|                            |   |   |   |   |   |   |   |   |   |   |   |
|                            | Cash-Settled RSUs |
|                            | 2015 |   | 2014 |   | 2013 |
|                            | Shares |   | Weighted Average Grant Date Fair Value |   | Shares |   | Weighted Average Grant Date Fair Value |   | Shares |   | Weighted Average Grant Date Fair Value |
|                            | (in thousands) |   |   |   | (in thousands) |   |   |   | (in thousands) |   |   |
| Nonvested, at beginning of year | 469 |  |   | $ | 33.00 |  |   | 194 |  |   | $ | 43.74 |  |   | 463 |  |   | $ | 43.20 |  |
| Granted                         | 280 |  |   | 27.67 |  |   | 470 |  |   | 32.44 |  |   | 3 |  |   | 27.24 |  |
| Vested                          | (190 | ) |   | 33.82 |  |   | (124 | ) |   | 47.48 |  |   | (215 | ) |   | 42.71 |  |
| Forfeited                       | (61 | ) |   | 30.75 |  |   | (71 | ) |   | 33.24 |  |   | (57 | ) |   | 42.46 |  |
| Nonvested, at end of year       | 498 |  |   | 29.96 |  |   | 469 |  |   | 33.00 |  |   | 194 |  |   | 43.74 |  |

----

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                      | 2015 |   | 2014 |   | 2013 |
|                                      | 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 | 941 |  |   | $ | 35.41 |  |   | 299 |  |   | $ | 34.47 |  |   | — |  |   | $ | — |  |
| Granted                                   | 729 |  |   | 27.61 |  |   | 651 |  |   | 35.83 |  |   | 299 |  |   | 34.47 |  |
| Forfeited                                 | (261 | ) |   | 33.99 |  |   | (9 | ) |   | 35.09 |  |   | — |  |   | — |  |
| Options outstanding, at end of year       | 1,409 |  |   | 31.64 |  |   | 941 |  |   | 35.41 |  |   | 299 |  |   | 34.47 |  |

|                          |
|--------------------------|
|                          |  |  |  |  |  |  |  |  |
|                     | 2015 |   | 2014 |   | 2013 |
| Risk-free interest rate  | 1.4 | % |   | 1.6 | % |   | 0.7 | % |
| Expected volatility      | 42.9 | % |   | 45.5 | % |   | 54.1 | % |
| Expected life (in years) | 4.7 |  |   | 4.9 |  |   | 5.1 |  |

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                      | 2015 |   | 2014 |   | 2013 |
|                                      | 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 | 670 |  |   | $ | 27.24 |  |   | 759 |  |   | $ | 27.24 |  |   | — |  |   | $ | — |  |
| Granted                                   | — |  |   | — |  |   | — |  |   | — |  |   | 917 |  |   | 27.24 |  |
| Forfeited                                 | (55 | ) |   | 27.24 |  |   | (89 | ) |   | 27.24 |  |   | (158 | ) |   | 27.24 |  |
| Options outstanding, at end of year       | 615 |  |   | 27.24 |  |   | 670 |  |   | 27.24 |  |   | 759 |  |   | 27.24 |  |

----

|                                   |
|-----------------------------------|
|                                   |  |  |
|                              | 2013 |
| Risk-free interest rate           | 0.9 | % |
| Expected volatility               | 55.4 | % |
| Expected life (in years)          | 5.0 |  |
| Monte Carlo Simulation Fair Value | $12.41 |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                            | Share-Settled PSUs subject to Service and Performance Conditions |
|                            | 2015 |   | 2014 |   | 2013 |
|                            | Shares |   | Weighted Average Grant Date        Fair Value |   | Shares |   | Weighted Average Grant Date      Fair Value |   | Shares |   | Weighted Average Grant Date      Fair Value |
|                            | (in thousands) |   |   |   | (in thousands) |   |   |   | (in thousands) |   |   |
| Nonvested, at beginning of year | 292 |  |   | $ | 28.48 |  |   | 326 |  |   | $ | 28.35 |  |   | — |  |   | $ | — |  |
| Granted                         | — |  |   | — |  |   | — |  |   | — |  |   | 381 |  |   | 28.19 |  |
| Forfeited                       | (48 | ) |   | 27.24 |  |   | (34 | ) |   | 27.24 |  |   | (55 | ) |   | 27.24 |  |
| Nonvested, at end of year       | 244 |  |   | 28.73 |  |   | 292 |  |   | 28.48 |  |   | 326 |  |   | 28.35 |  |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                            | Cash-Settled PSUs subject to Service and Performance Conditions |
|                            | 2015 |   | 2014 |
|                            | Shares |   | Weighted Average Grant Date        Fair Value |   | Shares |   | Weighted Average Grant Date        Fair Value |
|                            | (in thousands) |   |   |   | (in thousands) |   |   |
| Nonvested, at beginning of year | 221 |  |   | $ | 35.11 |  |   | — |  |   | $ | — |  |
| Granted                         | 277 |  |   | 27.61 |  |   | 225 |  |   | 35.10 |  |
| Forfeited                       | (64 | ) |   | 32.95 |  |   | (4 | ) |   | 35.09 |  |
| Nonvested, at end of year       | 434 |  |   | 30.64 |  |   | 221 |  |   | 35.11 |  |

----

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                            | 2015 |   | 2014 |   | 2013 |
|                            | Shares |   | Weighted Average Grant Date Fair Value |   | Shares |   | Weighted Average Grant Date Fair Value |   | Shares |   | Weighted Average Grant Date Fair Value |
|                            | (in thousands) |   |   |   | (in thousands) |   |   |   | (in thousands) |   |   |
| Nonvested, at beginning of year | 172 |  |   | $ | 69.64 |  |   | 172 |  |   | $ | 69.64 |  |   | 314 |  |   | $ | 68.03 |  |
| Forfeited                       | — |  |   | — |  |   | — |  |   | — |  |   | (142 | ) |   | 66.09 |  |
| Nonvested, at end of year       | 172 |  |   | 69.64 |  |   | 172 |  |   | 69.64 |  |   | 172 |  |   | 69.64 |  |

----

|                                                                           |
|---------------------------------------------------------------------------|
|                                                                           |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                             | 2015 |   | 2014 |   | 2013 |
| Equity in income of affiliated companies, net of dividends                |   |   |   |   |   |
| Equity in income of non-consolidated affiliates                           | $ | (6 | ) |   | $ | (9 | ) |   | $ | (11 | ) |
| Dividends from non-consolidated affiliates                                | 12 |  |   | 12 |  |   | 13 |  |
| Equity in income of non-consolidated affiliates, net of dividends         | $ | 6 |  |   | $ | 3 |  |   | $ | 2 |  |
| Other non-cash operating activities                                       |   |   |   |   |   |
| Loss (gain) on sale of property and equipment                             | $ | (4 | ) |   | $ | (9 | ) |   | $ | 5 |  |
| Loss on sale and impairment of repossessed collateral                     | 2 |  |   | 3 |  |   | — |  |
| Loss on repurchase of debt                                                | — |  |   | 11 |  |   | — |  |
| Income from operating leases                                              | (33 | ) |   | (46 | ) |   | (75 | ) |
| Other non-cash operating activities                                       | $ | (35 | ) |   | $ | (41 | ) |   | $ | (70 | ) |
| Changes in other assets and liabilities                                   |   |   |   |   |   |
| Other current assets                                                      | $ | (4 | ) |   | $ | 62 |  |   | $ | 6 |  |
| Other noncurrent assets                                                   | 12 |  |   | 2 |  |   | (46 | ) |
| Other current liabilities                                                 | 79 |  |   | (206 | ) |   | 144 |  |
| Postretirement benefits liabilities                                       | (54 | ) |   | (82 | ) |   | (58 | ) |
| Other noncurrent liabilities                                              | (135 | ) |   | (78 | ) |   | 190 |  |
| Other, net                                                                | 25 |  |   | 20 |  |   | 4 |  |
| Changes in other assets and liabilities                                   | $ | (77 | ) |   | $ | (282 | ) |   | $ | 240 |  |
| Cash paid (received) during the year                                      |   |   |   |   |   |
| Interest, net of amounts capitalized                                      | $ | 239 |  |   | $ | 258 |  |   | $ | 237 |  |
| Income taxes, net of refunds                                              | 52 |  |   | 15 |  |   | (6 | ) |
| Non-cash investing and financing activities                               |   |   |   |   |   |
| Property and equipment acquired under capital leases                      | $ | 2 |  |   | $ | 3 |  |   | $ | — |  |
| Transfers to inventories from property and equipment for leases to others | (7 | ) |   | (14 | ) |   | (10 | ) |

----

|                                                                                     |
|-------------------------------------------------------------------------------------|
|                                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Operations for the Year Ended October 31, 2015 |
| (in millions)                                                                       | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Sales and revenues, net                                                             | $ | — |  |   | $ | 7,267 |  |   | $ | 7,413 |  |   | $ | (4,540 | ) |   | $ | 10,140 |  |
| Costs of products sold                                                              | — |  |   | 6,614 |  |   | 6,510 |  |   | (4,454 | ) |   | 8,670 |  |
| Restructuring charges                                                               | — |  |   | 50 |  |   | 26 |  |   | — |  |   | 76 |  |
| Asset impairment charges                                                            | — |  |   | 13 |  |   | 17 |  |   | — |  |   | 30 |  |
| All other operating expenses (income)                                               | 88 |  |   | 1,054 |  |   | 399 |  |   | (68 | ) |   | 1,473 |  |
| Total costs and expenses                                                            | 88 |  |   | 7,731 |  |   | 6,952 |  |   | (4,522 | ) |   | 10,249 |  |
| Equity in income (loss) of affiliates                                               | (96 | ) |   | 225 |  |   | 2 |  |   | (125 | ) |   | 6 |  |
| Income (loss) before income taxes                                                   | (184 | ) |   | (239 | ) |   | 463 |  |   | (143 | ) |   | (103 | ) |
| Income tax benefit (expense)                                                        | — |  |   | 1 |  |   | (52 | ) |   | — |  |   | (51 | ) |
| Earnings (loss) from continuing operations                                          | (184 | ) |   | (238 | ) |   | 411 |  |   | (143 | ) |   | (154 | ) |
| Income from discontinued operations, net of tax                                     | — |  |   | — |  |   | 3 |  |   | — |  |   | 3 |  |
| Net income (loss)                                                                   | (184 | ) |   | (238 | ) |   | 414 |  |   | (143 | ) |   | (151 | ) |
| Less: Net income attributable to non-controlling interests                          | — |  |   | — |  |   | 33 |  |   | — |  |   | 33 |  |
| Net income (loss) attributable to Navistar International Corporation                | $ | (184 | ) |   | $ | (238 | ) |   | $ | 381 |  |   | $ | (143 | ) |   | $ | (184 | ) |

----

|                                                                                                      |
|------------------------------------------------------------------------------------------------------|
|                                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Comprehensive Income (Loss) for the Year Ended October 31, 2015 |
| (in millions)                                                                                        | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Net income (loss) attributable to Navistar International Corporation                                 | $ | (184 | ) |   | $ | (238 | ) |   | $ | 381 |  |   | $ | (143 | ) |   | $ | (184 | ) |
| Other comprehensive income (loss):                                                                   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                                              | (160 | ) |   | — |  |   | (160 | ) |   | 160 |  |   | (160 | ) |
| Defined benefit plans (net of tax of $(5), $14, $(18), $4, and $(5), respectively)                   | (178 | ) |   | (192 | ) |   | 14 |  |   | 178 |  |   | (178 | ) |
| Total other comprehensive income (loss)                                                              | (338 | ) |   | (192 | ) |   | (146 | ) |   | 338 |  |   | (338 | ) |
| Total comprehensive income (loss) attributable to Navistar International Corporation                 | $ | (522 | ) |   | $ | (430 | ) |   | $ | 235 |  |   | $ | 195 |  |   | $ | (522 | ) |

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Balance Sheet as of October 31, 2015                            |
| (in millions)                                                                           | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Assets                                                                                  |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                               | $ | 456 |  |   | $ | 81 |  |   | $ | 375 |  |   | $ | — |  |   | $ | 912 |  |
| Marketable securities                                                                   | 112 |  |   | — |  |   | 47 |  |   | — |  |   | 159 |  |
| Restricted cash                                                                         | 16 |  |   | 7 |  |   | 98 |  |   | — |  |   | 121 |  |
| Finance and other receivables, net                                                      | 1 |  |   | 99 |  |   | 2,440 |  |   | (103 | ) |   | 2,437 |  |
| Inventories                                                                             | — |  |   | 809 |  |   | 342 |  |   | (16 | ) |   | 1,135 |  |
| Investments in non-consolidated affiliates                                              | (7,679 | ) |   | 6,204 |  |   | 64 |  |   | 1,477 |  |   | 66 |  |
| Property and equipment, net                                                             | — |  |   | 737 |  |   | 616 |  |   | (8 | ) |   | 1,345 |  |
| Goodwill                                                                                | — |  |   | — |  |   | 38 |  |   | — |  |   | 38 |  |
| Deferred taxes, net                                                                     | 7 |  |   | 20 |  |   | 137 |  |   | — |  |   | 164 |  |
| Other                                                                                   | 33 |  |   | 128 |  |   | 155 |  |   | (1 | ) |   | 315 |  |
| Total assets                                                                            | $ | (7,054 | ) |   | $ | 8,085 |  |   | $ | 4,312 |  |   | $ | 1,349 |  |   | $ | 6,692 |  |
| Liabilities and stockholders’ equity (deficit)                                    |   |   |   |   |   |   |   |   |   |
| Debt                                                                                    | $ | 1,971 |  |   | $ | 1,180 |  |   | $ | 2,151 |  |   | $ | (4 | ) |   | $ | 5,298 |  |
| Postretirement benefits liabilities                                                     | — |  |   | 2,909 |  |   | 179 |  |   | — |  |   | 3,088 |  |
| Amounts due to (from) affiliates                                                        | (7,574 | ) |   | 10,280 |  |   | (2,879 | ) |   | 173 |  |   | — |  |
| Other liabilities                                                                       | 3,716 |  |   | 207 |  |   | (388 | ) |   | (69 | ) |   | 3,466 |  |
| Total liabilities                                                                       | (1,887 | ) |   | 14,576 |  |   | (937 | ) |   | 100 |  |   | 11,852 |  |
| Stockholders’ equity attributable to non-controlling interest                     | — |  |   | — |  |   | 7 |  |   | — |  |   | 7 |  |
| Stockholders’ equity (deficit) attributable to Navistar International Corporation | (5,167 | ) |   | (6,491 | ) |   | 5,242 |  |   | 1,249 |  |   | (5,167 | ) |
| Total liabilities and stockholders’ equity (deficit)                              | $ | (7,054 | ) |   | $ | 8,085 |  |   | $ | 4,312 |  |   | $ | 1,349 |  |   | $ | 6,692 |  |

----

|                                                                                     |
|-------------------------------------------------------------------------------------|
|                                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Cash Flows for the Year Ended October 31, 2015 |
| (in millions)                                                                       | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Net cash provided by (used in) operations                                           | $ | 87 |  |   | $ | 184 |  |   | $ | 168 |  |   | $ | (393 | ) |   | $ | 46 |  |
| Cash flows from investment activities                                               |   |   |   |   |   |   |   |   |   |
| Net change in restricted cash and cash equivalents                                  | 3 |  |   | (4 | ) |   | 43 |  |   | — |  |   | 42 |  |
| Net sales of marketable securities                                                  | 266 |  |   | — |  |   | 180 |  |   | — |  |   | 446 |  |
| Capital expenditures and purchase of equipment leased to others                     | — |  |   | (82 | ) |   | (116 | ) |   | — |  |   | (198 | ) |
| Other investing activities                                                          | — |  |   | 3 |  |   | 23 |  |   | — |  |   | 26 |  |
| Net cash provided by (used in) investment activities                                | 269 |  |   | (83 | ) |   | 130 |  |   | — |  |   | 316 |  |
| Cash flows from financing activities                                                |   |   |   |   |   |   |   |   |   |
| Net borrowings (repayments) of debt                                                 | (2 | ) |   | (38 | ) |   | (113 | ) |   | 268 |  |   | 115 |  |
| Other financing activities                                                          | 1 |  |   | (35 | ) |   | (108 | ) |   | 125 |  |   | (17 | ) |
| Net cash provided by (used in) financing activities                                 | (1 | ) |   | (73 | ) |   | (221 | ) |   | 393 |  |   | 98 |  |
| Effect of exchange rate changes on cash and cash equivalents                        | — |  |   | — |  |   | (45 | ) |   | — |  |   | (45 | ) |
| Increase in cash and cash equivalents                                               | 355 |  |   | 28 |  |   | 32 |  |   | — |  |   | 415 |  |
| Cash and cash equivalents at beginning of the year                                  | 101 |  |   | 53 |  |   | 343 |  |   | — |  |   | 497 |  |
| Cash and cash equivalents at end of the year                                        | $ | 456 |  |   | $ | 81 |  |   | $ | 375 |  |   | $ | — |  |   | $ | 912 |  |

|                                                                                     |
|-------------------------------------------------------------------------------------|
|                                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Operations for the Year Ended October 31, 2014 |
| (in millions)                                                                       | NIC |  | Navistar, Inc. |  | Non-Guarantor Subsidiaries |  | Eliminations and Other |  | Consolidated |
| Sales and revenues, net                                                             | $ | — |  |  | $ | 7,269 |  |  | $ | 8,196 |  |  | $ | (4,659 | ) |  | $ | 10,806 |  |
| Costs of products sold                                                              | — |  |  | 6,794 |  |  | 7,337 |  |  | (4,597 | ) |  | 9,534 |  |
| Restructuring charges                                                               | — |  |  | 8 |  |  | 34 |  |  | — |  |  | 42 |  |
| Asset impairment charges                                                            | — |  |  | 16 |  |  | 167 |  |  | — |  |  | 183 |  |
| All other operating expenses (income)                                               | (48 | ) |  | 1,003 |  |  | 541 |  |  | 116 |  |  | 1,612 |  |
| Total costs and expenses                                                            | (48 | ) |  | 7,821 |  |  | 8,079 |  |  | (4,481 | ) |  | 11,371 |  |
| Equity in income (loss) of affiliates                                               | (680 | ) |  | (169 | ) |  | 5 |  |  | 853 |  |  | 9 |  |
| Income (loss) before income taxes                                                   | (632 | ) |  | (721 | ) |  | 122 |  |  | 675 |  |  | (556 | ) |
| Income tax benefit (expense)                                                        | 13 |  |  | 25 |  |  | (64 | ) |  | — |  |  | (26 | ) |
| Earnings (loss) from continuing operations                                          | (619 | ) |  | (696 | ) |  | 58 |  |  | 675 |  |  | (582 | ) |
| Income from discontinued operations, net of tax                                     | — |  |  | — |  |  | 3 |  |  | — |  |  | 3 |  |
| Net income (loss)                                                                   | (619 | ) |  | (696 | ) |  | 61 |  |  | 675 |  |  | (579 | ) |
| Less: Net income attributable to non-controlling interests                          | — |  |  | — |  |  | 40 |  |  | — |  |  | 40 |  |
| Net income (loss) attributable to Navistar International Corporation                | $ | (619 | ) |  | $ | (696 | ) |  | $ | 21 |  |  | $ | 675 |  |  | $ | (619 | ) |

----

|                                                                                                      |
|------------------------------------------------------------------------------------------------------|
|                                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Comprehensive Income (Loss) for the Year Ended October 31, 2014 |
| (in millions)                                                                                        | NIC |  | Navistar, Inc. |  | Non-Guarantor Subsidiaries |  | Eliminations and Other |  | Consolidated |
| Net income (loss) attributable to Navistar International Corporation                                 | $ | (619 | ) |  | $ | (696 | ) |  | $ | 21 |  |  | $ | 675 |  |  | $ | (619 | ) |
| Other comprehensive income (loss):                                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Foreign currency translation adjustment                                                              | (52 | ) |  | — |  |  | (52 | ) |  | 52 |  |  | (52 | ) |
| Unrealized gain on marketable securities                                                             | 1 |  |   | — |  |   | 1 |  |   | (1 | ) |   | 1 |  |
| Defined benefit plans (net of tax of  $(2), $0, $(2), $2, and $(2), respectively)                    | (388 | ) |  | (397 | ) |  | 9 |  |  | 388 |  |  | (388 | ) |
| Total other comprehensive income (loss)                                                              | (439 | ) |  | (397 | ) |  | (42 | ) |  | 439 |  |  | (439 | ) |
| Total comprehensive income (loss) attributable to Navistar International Corporation                 | $ | (1,058 | ) |  | $ | (1,093 | ) |  | $ | (21 | ) |  | $ | 1,114 |  |  | $ | (1,058 | ) |

|                                                                                             |
|---------------------------------------------------------------------------------------------|
|                                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Balance Sheet as of October 31, 2014                                |
| (in millions)                                                                               | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Assets                                                                                      |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                                   | $ | 101 |  |   | $ | 53 |  |   | $ | 343 |  |   | $ | — |  |   | $ | 497 |  |
| Marketable securities                                                                       | 379 |  |   | — |  |   | 226 |  |   | — |  |   | 605 |  |
| Restricted cash                                                                             | 19 |  |   | 4 |  |   | 148 |  |   | — |  |   | 171 |  |
| Finance and other receivables, net                                                          | — |  |   | 124 |  |   | 2,504 |  |   | (12 | ) |   | 2,616 |  |
| Inventories                                                                                 | — |  |   | 792 |  |   | 539 |  |   | (12 | ) |   | 1,319 |  |
| Investments in non-consolidated affiliates                                                  | (7,245 | ) |   | 6,410 |  |   | 71 |  |   | 837 |  |   | 73 |  |
| Property and equipment, net                                                                 | — |  |   | 827 |  |   | 740 |  |   | (5 | ) |   | 1,562 |  |
| Goodwill                                                                                    | — |  |   | — |  |   | 38 |  |   | — |  |   | 38 |  |
| Deferred taxes, net (A)                                                                     | 5 |  |   | 25 |  |   | 169 |  |   | 1 |  |   | 200 |  |
| Other                                                                                       | 34 |  |   | 137 |  |   | 194 |  |   | (3 | ) |   | 362 |  |
| Total assets                                                                                | $ | (6,707 | ) |   | $ | 8,372 |  |   | $ | 4,972 |  |   | $ | 806 |  |   | $ | 7,443 |  |
| Liabilities and stockholders’ equity (deficit)                                        |   |   |   |   |   |   |   |   |   |
| Debt                                                                                        | $ | 1,958 |  |   | $ | 937 |  |   | $ | 2,336 |  |   | $ | (7 | ) |   | $ | 5,224 |  |
| Postretirement benefits liabilities (A)                                                     | — |  |   | 2,752 |  |   | 203 |  |   | — |  |   | 2,955 |  |
| Amounts due to (from) affiliates                                                            | (7,618 | ) |   | 11,739 |  |   | (4,267 | ) |   | 146 |  |   | — |  |
| Other liabilities                                                                           | 3,605 |  |   | 370 |  |   | (22 | ) |   | (71 | ) |   | 3,882 |  |
| Total liabilities                                                                           | (2,055 | ) |   | 15,798 |  |   | (1,750 | ) |   | 68 |  |   | 12,061 |  |
| Redeemable equity securities                                                                | 2 |  |   | — |  |   | — |  |   | — |  |   | 2 |  |
| Stockholders’ equity attributable to non-controlling interest                         | — |  |   | — |  |   | 34 |  |   | — |  |   | 34 |  |
| Stockholders’ equity (deficit) attributable to Navistar International Corporation (A) | (4,654 | ) |   | (7,426 | ) |   | 6,688 |  |   | 738 |  |   | (4,654 | ) |
| Total liabilities and stockholders’ equity (deficit)                                  | $ | (6,707 | ) |   | $ | 8,372 |  |   | $ | 4,972 |  |   | $ | 806 |  |   | $ | 7,443 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | During the third quarter of 2015, it was determined that multiemployer plan accounting should have been applied in recording postretirement benefits related to our Financial Services segment, which provides that assets and liabilities of a plan are recorded only on the parent company and that periodic contributions to the plan made by the participating subsidiary are charged to expense for the purposes of the subsidiary's financial statements.  As a result, we have reclassified $40 million of postretirement benefits, and related deferred taxes and Accumulated Other Comprehensive Income impact, between NIC and Non-Guarantor Subsidiaries.  This reclassification did not impact the consolidated financial position for the year-ended October 31, 2014. |

----

|                                                                                     |
|-------------------------------------------------------------------------------------|
|                                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Cash Flows for the Year Ended October 31, 2014 |
| (in millions)                                                                       | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Net cash provided by (used in) operations                                           | $ | (285 | ) |   | $ | (1,287 | ) |   | $ | (112 | ) |   | $ | 1,348 |  |   | $ | (336 | ) |
| Cash flows from investment activities                                               |   |   |   |   |   |   |   |   |   |
| Net change in restricted cash and cash equivalents                                  | 5 |  |   | (1 | ) |   | (84 | ) |   | — |  |   | (80 | ) |
| Net sales of marketable securities                                                  | 203 |  |   | — |  |   | 22 |  |   | — |  |   | 225 |  |
| Capital expenditures and purchase of equipment leased to others                     | — |  |   | (114 | ) |   | (163 | ) |   | — |  |   | (277 | ) |
| Other investing activities                                                          | — |  |   | 17 |  |   | 40 |  |   | — |  |   | 57 |  |
| Net cash provided by (used in) investment activities                                | 208 |  |   | (98 | ) |   | (185 | ) |   | — |  |   | (75 | ) |
| Cash flows from financing activities                                                |   |   |   |   |   |   |   |   |   |
| Net borrowings (repayments) of debt                                                 | (176 | ) |   | 1,306 |  |   | 409 |  |   | (1,389 | ) |   | 150 |  |
| Other financing activities                                                          | 18 |  |   | 60 |  |   | (90 | ) |   | 41 |  |   | 29 |  |
| Net cash provided by (used in) financing activities                                 | (158 | ) |   | 1,366 |  |   | 319 |  |   | (1,348 | ) |   | 179 |  |
| Effect of exchange rate changes on cash and cash equivalents                        | — |  |   | — |  |   | (26 | ) |   | — |  |   | (26 | ) |
| Decrease in cash and cash equivalents                                               | (235 | ) |   | (19 | ) |   | (4 | ) |   | — |  |   | (258 | ) |
| Cash and cash equivalents at beginning of the year                                  | 336 |  |   | 72 |  |   | 347 |  |   | — |  |   | 755 |  |
| Cash and cash equivalents at end of the year                                        | $ | 101 |  |   | $ | 53 |  |   | $ | 343 |  |   | $ | — |  |   | $ | 497 |  |

|                                                                                     |
|-------------------------------------------------------------------------------------|
|                                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Operations for the Year ended October 31, 2013 |
| (in millions)                                                                       | NIC |   | Navistar, Inc. |   | Non-Guarantor Subsidiaries |   | Eliminations and Other |   | Consolidated |
| Sales and revenues, net                                                             | $ | — |  |   | $ | 6,426 |  |   | $ | 8,979 |  |   | $ | (4,630 | ) |   | $ | 10,775 |  |
| Costs of products sold                                                              | — |  |   | 6,629 |  |   | 7,720 |  |   | (4,588 | ) |   | 9,761 |  |
| Restructuring charges                                                               | — |  |   | 15 |  |   | 10 |  |   | — |  |   | 25 |  |
| Asset impairment charges                                                            | — |  |   | 81 |  |   | 16 |  |   | — |  |   | 97 |  |
| All other operating expenses (income)                                               | (208 | ) |   | 1,180 |  |   | 659 |  |   | 246 |  |   | 1,877 |  |
| Total costs and expenses                                                            | (208 | ) |   | 7,905 |  |   | 8,405 |  |   | (4,342 | ) |   | 11,760 |  |
| Equity in income (loss) of affiliates                                               | (1,108 | ) |   | 161 |  |   | 4 |  |   | 954 |  |   | 11 |  |
| Income (loss) before income taxes                                                   | (900 | ) |   | (1,318 | ) |   | 578 |  |   | 666 |  |   | (974 | ) |
| Income tax benefit (expense)                                                        | 2 |  |   | 244 |  |   | (75 | ) |   | — |  |   | 171 |  |
| Earnings (loss) from continuing operations                                          | (898 | ) |   | (1,074 | ) |   | 503 |  |   | 666 |  |   | (803 | ) |
| Loss from discontinued operations, net of tax                                       | — |  |   | — |  |   | (41 | ) |   | — |  |   | (41 | ) |
| Net income (loss)                                                                   | (898 | ) |   | (1,074 | ) |   | 462 |  |   | 666 |  |   | (844 | ) |
| Less: Net income attributable to non-controlling interests                          | — |  |   | — |  |   | 54 |  |   | — |  |   | 54 |  |
| Net income (loss) attributable to Navistar International Corporation                | $ | (898 | ) |   | $ | (1,074 | ) |   | $ | 408 |  |   | $ | 666 |  |   | $ | (898 | ) |

----

|                                                                                                      |
|------------------------------------------------------------------------------------------------------|
|                                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Comprehensive Income (Loss) for the Year ended October 31, 2013 |
| (in millions)                                                                                        | NIC |   | Navistar, Inc. |   | Non-Guarantor Subsidiaries |   | Eliminations and Other |   | Consolidated |
| Net income (loss) attributable to Navistar International Corporation                                 | $ | (898 | ) |   | $ | (1,074 | ) |   | $ | 408 |  |   | $ | 666 |  |   | $ | (898 | ) |
| Other comprehensive income (loss):                                                                   |  |  |   |  |  |   |  |  |   |  |  |   |  |
| Foreign currency translation adjustment                                                              | (51 | ) |   | — |  |   | (51 | ) |   | 51 |  |   | (51 | ) |
| Defined benefit plans (net of tax of  $(233), $(207), $(26), $233, and $(233), respectively)         | 552 |  |   | 687 |  |   | 74 |  |   | (761 | ) |   | 552 |  |
| Total other comprehensive income (loss)                                                              | 501 |  |   | 687 |  |   | 23 |  |   | (710 | ) |   | 501 |  |
| Total comprehensive income (loss) attributable to Navistar International Corporation                 | $ | (397 | ) |   | $ | (387 | ) |   | $ | 431 |  |   | $ | (44 | ) |   | $ | (397 | ) |

|                                                                                     |
|-------------------------------------------------------------------------------------|
|                                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Cash Flows for the Year ended October 31, 2013 |
| (in millions)                                                                       | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Net cash provided by (used in) operations                                           | $ | (669 | ) |   | $ | (355 | ) |   | $ | 401 |  |   | $ | 723 |  |   | $ | 100 |  |
| Cash flows from investment activities                                               |   |   |   |   |   |   |   |   |   |
| Net change in restricted cash and cash equivalents                                  | — |  |   | 5 |  |   | 65 |  |   | — |  |   | 70 |  |
| Net purchases of marketable securities                                              | (267 | ) |   | — |  |   | (97 | ) |   | — |  |   | (364 | ) |
| Capital expenditures and purchase of equipment leased to others                     | — |  |   | (422 | ) |   | (177 | ) |   | — |  |   | (599 | ) |
| Other investing activities                                                          | — |  |   | 87 |  |   | (4 | ) |   | — |  |   | 83 |  |
| Net cash used in investment activities                                              | (267 | ) |   | (330 | ) |   | (213 | ) |   | — |  |   | (810 | ) |
| Cash flows from financing activities                                                |   |   |   |   |   |   |   |   |   |
| Net borrowings (repayments) of debt                                                 | 540 |  |   | 409 |  |   | (40 | ) |   | (793 | ) |   | 116 |  |
| Other financing activities                                                          | 30 |  |   | 293 |  |   | (116 | ) |   | 70 |  |   | 277 |  |
| Net cash provided by (used in) financing activities                                 | 570 |  |   | 702 |  |   | (156 | ) |   | (723 | ) |   | 393 |  |
| Effect of exchange rate changes on cash and cash equivalents                        | — |  |   | — |  |   | (15 | ) |   | — |  |   | (15 | ) |
| Increase (decrease) in cash and cash equivalents                                    | (366 | ) |   | 17 |  |   | 17 |  |   | — |  |   | (332 | ) |
| Cash and cash equivalents at beginning of the year                                  | 702 |  |   | 55 |  |   | 330 |  |   | — |  |   | 1,087 |  |
| Cash and cash equivalents at end of the year                                        | $ | 336 |  |   | $ | 72 |  |   | $ | 347 |  |   | $ | — |  |   | $ | 755 |  |

----

|                                                                                 |
|---------------------------------------------------------------------------------|
|                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                            | 1st Quarter Ended January 31, |   | 2nd Quarter Ended April 30, |
| (in millions, except for per share data and stock prices)                       | 2015 |   | 2014 |   | 2015 |   | 2014 |
| Sales and revenues, net                                                         | $ | 2,421 |  |   | $ | 2,208 |  |   | $ | 2,693 |  |   | $ | 2,746 |  |
| Manufacturing gross margin(A)(B)                                                | 340 |  |   | 155 |  |   | 298 |  |   | 240 |  |
| Amounts attributable to Navistar International Corporation common shareholders: |   |   |   |   |   |   |   |
| Loss from continuing operations, net of tax(C)                                  | $ | (42 | ) |   | $ | (249 | ) |   | $ | (64 | ) |   | $ | (298 | ) |
| Loss from discontinued operations, net of tax                                   | — |  |   | 1 |  |   | — |  |   | 1 |  |
| Net loss                                                                        | $ | (42 | ) |   | $ | (248 | ) |   | $ | (64 | ) |   | $ | (297 | ) |
| Loss per share attributable to Navistar International Corporation:              |   |   |   |   |   |   |   |
| Basic:                                                                          |   |   |   |   |   |   |   |
| Continuing operations                                                           | $ | (0.52 | ) |   | $ | (3.07 | ) |   | $ | (0.78 | ) |   | $ | (3.66 | ) |
| Discontinued operations                                                         | — |  |   | 0.02 |  |   | — |  |   | 0.01 |  |
|                                                                            | $ | (0.52 | ) |   | $ | (3.05 | ) |   | $ | (0.78 | ) |   | $ | (3.65 | ) |
| Diluted:                                                                        |   |   |   |   |   |   |   |
| Continuing operations                                                           | $ | (0.52 | ) |   | $ | (3.07 | ) |   | $ | (0.78 | ) |   | $ | (3.66 | ) |
| Discontinued operations                                                         | — |  |   | 0.02 |  |   | — |  |   | 0.01 |  |
|                                                                            | $ | (0.52 | ) |   | $ | (3.05 | ) |   | $ | (0.78 | ) |   | $ | (3.65 | ) |
| Market price range-common stock:                                                |   |   |   |   |   |   |   |
| High                                                                            | $ | 38.05 |  |   | $ | 41.57 |  |   | $ | 31.28 |  |   | $ | 39.45 |  |
| Low                                                                             | 28.99 |  |   | 30.80 |  |   | 27.50 |  |   | 29.08 |  |

----

|                                                                                 |
|---------------------------------------------------------------------------------|
|                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                            | 3rd Quarter Ended July 31, |   | 4th Quarter Ended October 31, |
| (in millions, except for per share data and stock prices)                       | 2015 |   | 2014 |   | 2015 |   | 2014 |
| Sales and revenues, net                                                         | $ | 2,538 |  |   | $ | 2,844 |  |   | $ | 2,488 |  |   | $ | 3,008 |  |
| Manufacturing gross margin(A)(B)                                                | 329 |  |   | 389 |  |   | 358 |  |   | 335 |  |
| Amounts attributable to Navistar International Corporation common shareholders: |  |   |  |   |  |  |   |  |
| Loss from continuing operations, net of tax(C)                                  | $ | (30 | ) |   | $ | (3 | ) |   | $ | (51 | ) |   | $ | (72 | ) |
| Income (loss) from discontinued operations, net of tax                          | 2 |  |   | 1 |  |   | 1 |  |   | — |  |
| Net loss                                                                        | $ | (28 | ) |   | $ | (2 | ) |   | $ | (50 | ) |   | $ | (72 | ) |
| Loss per share attributable to Navistar International Corporation:              |   |  |  |   |  |  |   |  |
| Basic:                                                                          |  |  |   |  |   |  |  |   |  |
| Continuing operations                                                           | $ | (0.37 | ) |   | $ | (0.04 | ) |   | $ | (0.62 | ) |   | $ | (0.88 | ) |
| Discontinued operations                                                         | 0.03 |  |   | 0.02 |  |   | 0.01 |  |   | — |  |
|                                                                            | $ | (0.34 | ) |   | $ | (0.02 | ) |   | $ | (0.61 | ) |   | $ | (0.88 | ) |
| Diluted:                                                                        |  |  |   |  |   |  |  |   |  |
| Continuing operations                                                           | $ | (0.37 | ) |   | $ | (0.04 | ) |   | $ | (0.62 | ) |   | $ | (0.88 | ) |
| Discontinued operations                                                         | 0.03 |  |   | 0.02 |  |   | 0.01 |  |   | — |  |
|                                                                            | $ | (0.34 | ) |   | $ | (0.02 | ) |   | $ | (0.61 | ) |   | $ | (0.88 | ) |
| Market price range-common stock:                                                |  |  |   |  |   |  |  |   |  |
| High                                                                            | $ | 30.41 |  |   | $ | 39.41 |  |   | $ | 19.91 |  |   | $ | 40.17 |  |
| Low                                                                             | 16.32 |  |   | 32.45 |  |   | 11.21 |  |   | 29.54 |  |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  (C) | In the second quarter of 2014, the company recognized a non-cash charge of $149 million for the impairment of certain intangible assets of our Brazilian engine reporting unit. Due to the economic downturn in Brazil which resulted in a continued decline in actual and forecasted results, we tested the goodwill of our Brazilian engine reporting unit and trademark for potential impairment. As a result, we determined that the entire $142 million balance of goodwill and $7 million of trademark were impaired. |

----

|              |                                                                                      |
|--------------|--------------------------------------------------------------------------------------|
| 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 consolidated 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 |

----

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

----

|            |
|------------|
|            |  |  |  |  |
| Exhibit:   |   | Description |   | Page |
| (3)*       |   | Articles of Incorporation and By-Laws |   | E-1 |
| (4)*       |   | Instruments Defining 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 18. Earnings (Loss) Per Share Attributable to Navistar International Corporation, to the accompanying consolidated financial statements) |   | 131 |
| (12)*      |   | Computation of Ratio of Earnings to Fixed Charges |   | E-22 |
| (21)*      |   | Subsidiaries of the Registrant |   | E-23 |
| (23.1)*    |   | Consent of Independent Registered Public Accounting Firm |   | E-24 |
| (24)*      |   | Power of Attorney |   | E-25 |
| (31.1)*    |   | CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |   | E-26 |
| (31.2)*    |   | CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |   | E-27 |
| (32.1)*    |   | CEO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |   | E-28 |
| (32.2)*    |   | CFO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |   | E-29 |
| (99.1)     |   | Additional Financial Information (Unaudited) |   | E-30 |
| (101.INS)* |   | 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 |

|   |                                                                                                                                                                                                                               |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| * | Indicates exhibits not included within this 2015 Annual Report to Shareholders. These exhibits were included within our Annual Report on Form 10-K for the year ended October 31, 2015, which was filed on December 17, 2015. |

----

|        |
|--------|
|        |  |
|   | NAVISTAR INTERNATIONAL CORPORATION |
|   | (Registrant) |
|   | /s/    SAMARA A. STRYCKER         |
|   | Samara A. Strycker |
|   | Senior Vice President and Corporate Controller |
|   | (Principal Accounting Officer) |

|                                  |
|----------------------------------|
|                                  |  |  |  |  |
| Signature                        |   | Title |   | Date |
|                             |   |   |   |   |
| /s/   TROY A. CLARKE        |   | President andChief Executive Officer and Director(Principal Executive Officer) |   | December 17, 2015 |
| Troy A. Clarke                   |   |   |   |
|                             |   |   |   |   |
| /s/   WALTER G. BORST       |   | Executive Vice President andChief Financial Officer(Principal Financial Officer) |   | December 17, 2015 |
| Walter G. Borst                  |   |   |   |
|                             |   |   |   |   |
| /s/   SAMARA A. STRYCKER    |   | Senior Vice President and Corporate Controller (Principal Accounting Officer) |   | December 17, 2015 |
| Samara A. Strycker               |   |   |   |
|                             |   |   |   |   |
| /s/   MICHAEL N. HAMMES     |   | Director |   | December 17, 2015 |
| Michael N. Hammes                |   |   |   |   |
|                             |   |   |   |   |
| /s/   VINCENT J. INTRIERI   |   | Director |   | December 17, 2015 |
| Vincent J. Intrieri              |   |   |   |   |
|                             |   |   |   |   |
| /s/   JAMES H. KEYES        |   | Director |   | December 17, 2015 |
| James H. Keyes                   |   |   |   |   |
|                             |   |   |   |   |
| /s/   STANLEY A. MCCHRYSTAL |   | Director |   | December 17, 2015 |
| Stanley A. McChrystal            |   |   |   |   |
|                             |   |   |   |   |
| /s/   SAMUEL J. MERKSAMER   |   | Director |   | December 17, 2015 |
| Samuel J. Merksamer              |   |   |   |   |
|                             |   |   |   |   |
| /s/   MARK H. RACHESKY      |   | Director |   | December 17, 2015 |
| Mark H. Rachesky                 |   |   |   |   |
|                             |   |   |   |   |
| /s/   DENNIS D. WILLIAMS    |   | Director |   | December 17, 2015 |
| Dennis D. Williams               |   |   |   |   |
|                             |   |   |   |   |
| /s/   MICHAEL F. SIRIGNANO       |   | Director |   | December 17, 2015 |
| Michael F. Sirignano             |   |   |   |   |