Table of Contents

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

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

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| 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) |

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| 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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|                                      |  |  |  |
|                                 |   |   | Page |
| PART I—Financial Information   |   |   |
| Item 1.                         | Financial Statements (Unaudited) |   | 5 |
|                                 | Consolidated Statements of Operations for the three months ended January 31, 2014 and 2013 |   | 5 |
|                                 | Consolidated Statements of Comprehensive Loss for the three months ended January 31, 2014 and 2013 |   | 6 |
|                                 | Consolidated Balance Sheets as of January 31, 2014 and October 31, 2013 |   | 7 |
|                                 | Condensed Consolidated Statements of Cash Flows for the three months ended January 31, 2014 and 2013 |   | 8 |
|                                 | Consolidated Statements of Stockholders' Deficit for the three months ended January 31, 2014 and 2013 |   | 9 |
|                                 | Notes to Condensed Consolidated Financial Statements |   | 10 |
| Item 2.                              | Management's Discussion and Analysis of Financial Condition and Results of Operations |   | 39 |
| Item 3.                              | Quantitative and Qualitative Disclosures about Market Risk |   | 49 |
| Item 4.                              | Controls and Procedures |   | 49 |
|                                 |   |   |   |
| PART II—Other Information |   |   |
| Item 1.                         | Legal Proceedings |   | 51 |
| Item 1A.                        | Risk Factors |   | 51 |
| Item 2.                         | Unregistered Sales of Equity Securities and Use of Proceeds |   | 51 |
| Item 3.                              | Defaults upon Senior Securities |   | 51 |
| Item 4.                              | Mine Safety Disclosures |   | 51 |
| Item 5.                              | Other Information |   | 51 |
| Item 6.                              | Exhibits |   | 52 |
|                                 | Signatures |   | 53 |

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

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

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

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

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

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

|         |                                                                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | our expectations to achieve the objectives of our "Drive-to-Deliver" turnaround plan, including: (i) leading vehicle uptime, (ii) creating a lean enterprise, (iii) generating future financial growth, and (iv) improving market share profitably; |

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

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

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

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|---------|--------------------------------------------------------------------------------------------------------------------------------------------------|
| • | our expectations relating to the dissolution of our Blue Diamond Truck joint venture with Ford Motor Company ("Ford") expected in February 2015; |

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

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

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|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | our expectations relating to our cost-reduction actions, including our enterprise-wide reduction-in-force, and other actions to reduce discretionary spending; |

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

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

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

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

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

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

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

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

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

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

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|              |                      |
|--------------|----------------------|
| Item 1. | Financial Statements |

|                                                                                 |
|---------------------------------------------------------------------------------|
|                                                                                 |  |  |  |  |  |  |  |
|                                                                            | Three Months Ended January 31, |
| (in millions, except per share data)                                            | 2014 |   | 2013 |
| Sales and revenues                                                              |   |   |   |
| Sales of manufactured products, net                                             | $ | 2,169 |  |   | $ | 2,598 |  |
| Finance revenues                                                                | 39 |  |   | 39 |  |
| Sales and revenues, net                                                         | 2,208 |  |   | 2,637 |  |
| Costs and expenses                                                              |   |   |   |
| Costs of products sold                                                          | 2,014 |  |   | 2,286 |  |
| Restructuring charges                                                           | 3 |  |   | 2 |  |
| Asset impairment charges                                                        | 18 |  |   | — |  |
| Selling, general and administrative expenses                                    | 239 |  |   | 285 |  |
| Engineering and product development costs                                       | 90 |  |   | 111 |  |
| Interest expense                                                                | 82 |  |   | 74 |  |
| Other expense (income), net                                                     | 14 |  |   | (38 | ) |
| Total costs and expenses                                                        | 2,460 |  |   | 2,720 |  |
| Equity in loss of non-consolidated affiliates                                   | — |  |   | (1 | ) |
| Loss from continuing operations before income taxes                             | (252 | ) |   | (84 | ) |
| Income tax benefit (expense)                                                    | 12 |  |   | (15 | ) |
| Loss from continuing operations                                                 | (240 | ) |   | (99 | ) |
| Income (loss) from discontinued operations, net of tax                          | 1 |  |   | (9 | ) |
| Net loss                                                                        | (239 | ) |   | (108 | ) |
| Less: Net income attributable to non-controlling interests                      | 9 |  |   | 15 |  |
| Net loss attributable to Navistar International Corporation                     | $ | (248 | ) |   | $ | (123 | ) |
|                                                                            |   |   |   |
| Amounts attributable to Navistar International Corporation common shareholders: |   |   |   |
| Loss from continuing operations, net of tax                                     | $ | (249 | ) |   | $ | (114 | ) |
| Income (loss) from discontinued operations, net of tax                          | 1 |  |   | (9 | ) |
| Net loss                                                                        | $ | (248 | ) |   | $ | (123 | ) |
|                                                                            |   |   |   |
| Earnings (loss) per share:                                                      |   |   |   |
| Basic:                                                                          |   |   |   |
| Continuing operations                                                           | $ | (3.07 | ) |   | $ | (1.42 | ) |
| Discontinued operations                                                         | 0.02 |  |   | (0.11 | ) |
|                                                                            | $ | (3.05 | ) |   | $ | (1.53 | ) |
|                                                                            |   |   |   |
| Diluted:                                                                        |   |   |   |
| Continuing operations                                                           | $ | (3.07 | ) |   | $ | (1.42 | ) |
| Discontinued operations                                                         | 0.02 |  |   | (0.11 | ) |
|                                                                            | $ | (3.05 | ) |   | $ | (1.53 | ) |
|                                                                            |   |   |   |
| Weighted average shares outstanding:                                            |   |   |   |
| Basic                                                                           | 81.2 |  |   | 80.2 |  |
| Diluted                                                                         | 81.2 |  |   | 80.2 |  |

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|                                                                             |  |  |  |  |  |  |  |
| (in millions)                                                               | Three Months Ended January 31, |
| 2014                                                                        |   | 2013 |
| Net loss attributable to Navistar International Corporation                 | $ | (248 | ) |   | $ | (123 | ) |
| Other comprehensive income (loss):                                          |   |   |   |
| Foreign currency translation adjustment                                     | (62 | ) |   | 17 |  |
| Defined benefit plans, net of tax of $0 in both periods                     | 25 |  |   | 38 |  |
| Total other comprehensive income (loss)                                     | (37 | ) |   | 55 |  |
| Total comprehensive loss attributable to Navistar International Corporation | $ | (285 | ) |   | $ | (68 | ) |

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|                                                                                                              |
|--------------------------------------------------------------------------------------------------------------|
|                                                                                                              |  |  |  |  |  |  |  |
|                                                                                                         | January 31, |   | October 31, |
| (in millions, except per share data)                                                                         | 2014 |   | 2013 |
| ASSETS                                                                                                       | (Unaudited) |   |   |
| Current assets                                                                                               |   |   |   |
| Cash and cash equivalents                                                                                    | $ | 549 |  |   | $ | 755 |  |
| Marketable securities                                                                                        | 630 |  |   | 830 |  |
| Trade and other receivables, net                                                                             | 553 |  |   | 737 |  |
| Finance receivables, net                                                                                     | 1,461 |  |   | 1,597 |  |
| Inventories                                                                                                  | 1,382 |  |   | 1,210 |  |
| Deferred taxes, net                                                                                          | 74 |  |   | 72 |  |
| Other current assets                                                                                         | 249 |  |   | 258 |  |
| Total current assets                                                                                         | 4,898 |  |   | 5,459 |  |
| Restricted cash                                                                                              | 115 |  |   | 91 |  |
| Trade and other receivables, net                                                                             | 28 |  |   | 29 |  |
| Finance receivables, net                                                                                     | 303 |  |   | 338 |  |
| Investments in non-consolidated affiliates                                                                   | 75 |  |   | 77 |  |
| Property and equipment (net of accumulated depreciation and amortization of $2,465 and $2,440, respectively) | 1,700 |  |   | 1,741 |  |
| Goodwill                                                                                                     | 170 |  |   | 184 |  |
| Intangible assets (net of accumulated amortization of $100 and $97, respectively)                            | 112 |  |   | 138 |  |
| Deferred taxes, net                                                                                          | 155 |  |   | 159 |  |
| Other noncurrent assets                                                                                      | 98 |  |   | 99 |  |
| Total assets                                                                                                 | $ | 7,654 |  |   | $ | 8,315 |  |
| LIABILITIES and STOCKHOLDERS’ DEFICIT                                                                  |   |   |   |
| Liabilities                                                                                                  |   |   |   |
| Current liabilities                                                                                          |   |   |   |
| Notes payable and current maturities of long-term debt                                                       | $ | 1,259 |  |   | $ | 1,163 |  |
| Accounts payable                                                                                             | 1,430 |  |   | 1,502 |  |
| Other current liabilities                                                                                    | 1,564 |  |   | 1,596 |  |
| Total current liabilities                                                                                    | 4,253 |  |   | 4,261 |  |
| Long-term debt                                                                                               | 3,605 |  |   | 3,922 |  |
| Postretirement benefits liabilities                                                                          | 2,531 |  |   | 2,564 |  |
| Deferred taxes, net                                                                                          | 25 |  |   | 33 |  |
| Other noncurrent liabilities                                                                                 | 1,117 |  |   | 1,136 |  |
| Total liabilities                                                                                            | 11,531 |  |   | 11,916 |  |
| Redeemable equity securities                                                                                 | 2 |  |   | 4 |  |
| Stockholders’ deficit                                                                                  |   |   |   |
| Series D convertible junior preference stock                                                            | 3 |  |   | 3 |  |
| Common stock (86.8 shares issued, $0.10 par value per share and 220 shares authorized, all at both dates)    | 9 |  |   | 9 |  |
| Additional paid in capital                                                                                   | 2,478 |  |   | 2,477 |  |
| Accumulated deficit                                                                                          | (4,311 | ) |   | (4,063 | ) |
| Accumulated other comprehensive loss                                                                         | (1,861 | ) |   | (1,824 | ) |
| Common stock held in treasury, at cost (5.6 and 6.3 shares, respectively)                                    | (230 | ) |   | (251 | ) |
| Total stockholders’ deficit attributable to Navistar International Corporation                         | (3,912 | ) |   | (3,649 | ) |
| Stockholders’ equity attributable to non-controlling interests                                         | 33 |  |   | 44 |  |
| Total stockholders’ deficit                                                                            | (3,879 | ) |   | (3,605 | ) |
| Total liabilities and stockholders’ deficit                                                            | $ | 7,654 |  |   | $ | 8,315 |  |

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|                                                                                                       |  |  |  |  |  |  |  |
|                                                                                                  | Three Months Ended January 31, |
| (in millions)                                                                                         | 2014 |   | 2013 |
| Cash flows from operating activities                                                                  |   |   |   |
| Net loss                                                                                              | $ | (239 | ) |   | $ | (108 | ) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities:             |   |   |   |
| Depreciation and amortization                                                                         | 55 |  |   | 89 |  |
| Depreciation of equipment leased to others                                                            | 31 |  |   | 11 |  |
| Deferred taxes, including change in valuation allowance                                               | (18 | ) |   | (9 | ) |
| Asset impairment charges                                                                              | 18 |  |   | — |  |
| Amortization of debt issuance costs and discount                                                      | 14 |  |   | 16 |  |
| Stock-based compensation                                                                              | 5 |  |   | 5 |  |
| Provision for doubtful accounts, net of recoveries                                                    | 2 |  |   | 1 |  |
| Equity in loss of non-consolidated affiliates, net of dividends                                       | 2 |  |   | 3 |  |
| Other non-cash operating activities                                                                   | (9 | ) |   | — |  |
| Changes in other assets and liabilities, exclusive of the effects of businesses acquired and disposed | 46 |  |   | 58 |  |
| Net cash provided by (used in) operating activities                                                   | (93 | ) |   | 66 |  |
| Cash flows from investing activities                                                                  |   |   |  |  |
| Purchases of marketable securities                                                                    | (378 | ) |   | (482 | ) |
| Sales or maturities of marketable securities                                                          | 578 |  |   | 177 |  |
| Net change in restricted cash and cash equivalents                                                    | (24 | ) |   | 59 |  |
| Capital expenditures                                                                                  | (21 | ) |   | (72 | ) |
| Purchases of equipment leased to others                                                               | (49 | ) |   | (32 | ) |
| Proceeds from sales of property and equipment                                                         | 10 |  |   | 3 |  |
| Investments in non-consolidated affiliates                                                            | (2 | ) |   | — |  |
| Net cash provided by (used in) investing activities                                                   | 114 |  |   | (347 | ) |
| Cash flows from financing activities                                                                  |   |   |   |
| Proceeds from issuance of securitized debt                                                            | 82 |  |   | — |  |
| Principal payments on securitized debt                                                                | (94 | ) |   | (190 | ) |
| Proceeds from issuance of non-securitized debt                                                        | 47 |  |   | 25 |  |
| Principal payments on non-securitized debt                                                            | (53 | ) |   | (60 | ) |
| Net decrease in notes and debt outstanding under revolving credit facilities                          | (197 | ) |   | (32 | ) |
| Principal payments under financing arrangements and capital lease obligations                         | (4 | ) |   | (47 | ) |
| Debt issuance costs                                                                                   | (3 | ) |   | (1 | ) |
| Proceeds from financed lease obligations                                                              | 20 |  |   | — |  |
| Issuance of common stock                                                                              | — |  |   | 14 |  |
| Proceeds from exercise of stock options                                                               | 16 |  |   | 1 |  |
| Dividends paid by subsidiaries to non-controlling interest                                            | (20 | ) |   | (13 | ) |
| Net cash used in financing activities                                                                 | (206 | ) |   | (303 | ) |
| Effect of exchange rate changes on cash and cash equivalents                                          | (21 | ) |   | (6 | ) |
| Decrease in cash and cash equivalents                                                                 | (206 | ) |   | (590 | ) |
| Cash and cash equivalents at beginning of the period                                                  | 755 |  |   | 1,087 |  |
| Cash and cash equivalents at end of the period                                                        | $ | 549 |  |   | $ | 497 |  |

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|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                           | Series D ConvertibleJuniorPreference Stock |   | CommonStock |   | Additional Paid-inCapital |   | AccumulatedDeficit |   | AccumulatedOtherComprehensiveIncome (Loss) |   | CommonStockHeld inTreasury, at cost |   | Stockholders'EquityAttributableto Non-controllingInterests |   | Total |
| Balance as of October 31, 2013                                                          | $ | 3 |  |   | $ | 9 |  |   | $ | 2,477 |  |   | $ | (4,063 | ) |   | $ | (1,824 | ) |   | $ | (251 | ) |   | $ | 44 |  |   | $ | (3,605 | ) |
| Net income (loss)                                                                       |   |   |   |   |   |   | (248 | ) |   |   |   |   |   | 9 |  |   | (239 | ) |
| Total other comprehensive loss                                                          |   |   |   |   |   |   |   |   | (37 | ) |   |   |   |   |   | (37 | ) |
| Transfer from redeemable equity securities upon exercise or expiration of stock options |   |   |   |   | 2 |  |   |   |   |   |   |   |   |   |   | 2 |  |
| Stock-based compensation                                                                |   |   |   |   | 4 |  |   |   |   |   |   |   |   |   |   | 4 |  |
| Stock ownership programs                                                                |   |   |   |   | (5 | ) |   |   |   |   |   | 21 |  |   |   |   | 16 |  |
| Cash dividends paid to non-controlling interest                                         |   |   |   |   |   |   |   |   |   |   |   |   | (20 | ) |   | (20 | ) |
| Balance as of January 31, 2014                                                          | $ | 3 |  |   | $ | 9 |  |   | $ | 2,478 |  |   | $ | (4,311 | ) |   | $ | (1,861 | ) |   | $ | (230 | ) |   | $ | 33 |  |   | $ | (3,879 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as of October 31, 2012                                                          | $ | 3 |  |   | $ | 9 |  |   | $ | 2,440 |  |   | $ | (3,165 | ) |   | $ | (2,325 | ) |   | $ | (272 | ) |   | $ | 45 |  |   | $ | (3,265 | ) |
| Net income (loss)                                                                       |   |   |   |   |   |   | (123 | ) |   |   |   |   |   | 15 |  |   | (108 | ) |
| Total other comprehensive income                                                        |   |   |   |   |   |   |   |   | 55 |  |   |   |   |   |   | 55 |  |
| Transfer from redeemable equity securities upon exercise or expiration of stock options |   |   |   |   | 1 |  |   |   |   |   |   |   |   |   |   | 1 |  |
| Stock-based compensation                                                                |   |   |   |   | 3 |  |   |   |   |   |   |   |   |   |   | 3 |  |
| Stock ownership programs                                                                |   |   |   |   | (5 | ) |   |   |   |   |   | 5 |  |   |   |   | — |  |
| Cash dividends paid to non-controlling interest                                         |   |   |   |   |   |   |   |   |   |   |   |   | (13 | ) |   | (13 | ) |
| October 2012 issuance of common stock, net of issuance cost and fees                    |   |   |   |   | 14 |  |   |   |   |   |   |   |   |   |   | 14 |  |
| Other                                                                                   |   |   |   |   |   |   |   |   | 1 |  |   |   |   | (1 | ) |   | — |  |
| Balance as of January 31, 2013                                                          | $ | 3 |  |   | $ | 9 |  |   | $ | 2,453 |  |   | $ | (3,288 | ) |   | $ | (2,269 | ) |   | $ | (267 | ) |   | $ | 46 |  |   | $ | (3,313 | ) |

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|                                                                   |  |  |  |  |  |  |  |
|                                                              | Three Months Ended January 31, |
| (in millions)                                                     | 2014 |   | 2013 |
| Balance at beginning of period                                    | $ | 1,349 |  |   | $ | 1,118 |  |
| Costs accrued and revenues deferred                               | 71 |  |   | 111 |  |
| Currency translation adjustment                                   | (2 | ) |   | — |  |
| Adjustments to pre-existing warranties(A)(B)                      | 52 |  |   | 40 |  |
| Payments and revenues recognized                                  | (132 | ) |   | (161 | ) |
| Balance at end of period                                          | 1,338 |  |   | 1,108 |  |
| Less: Current portion                                             | 602 |  |   | 559 |  |
| Noncurrent accrued product warranty and deferred warranty revenue | $ | 736 |  |   | $ | 549 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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 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. |

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|                                                        |  |  |  |  |  |  |  |
|                                                   | Three months ended January 31, |
| (in millions)                                          | 2014 |   | 2013 |
| Sales and revenues, net                                | $ | — |  |   | $ | 34 |  |
|                                                   |   |   |   |
| Income (loss) before income taxes                      | $ | 1 |  |   | $ | (9 | ) |
| Income tax benefit (expense)                           | — |  |   | — |  |
| Income (loss) from discontinued operations, net of tax | $ | 1 |  |   | $ | (9 | ) |

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|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                | Balance at October 31, 2013 |   | Additions |   | Payments |   | Adjustments |   | Balance at January 31, 2014 |
| Employee termination charges | $ | 15 |  |   | $ | 2 |  |   | $ | (5 | ) |   | $ | (1 | ) |   | $ | 11 |  |
| Employee relocation costs    | — |  |   | 1 |  |   | (1 | ) |   | — |  |   | — |  |
| Lease vacancy                | 18 |  |   | — |  |   | (2 | ) |   | — |  |   | 16 |  |
| Other                        | 1 |  |   | — |  |   | (1 | ) |   | 1 |  |   | 1 |  |
| Restructuring liability      | $ | 34 |  |   | $ | 3 |  |   | $ | (9 | ) |   | $ | — |  |   | $ | 28 |  |

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                | Balance atOctober 31, 2012 |   | Additions |   | Payments |   | Adjustments |   | Balance at January 31, 2013 |
| Employee termination charges | $ | 72 |  |   | $ | — |  |   | $ | (27 | ) |   | $ | (2 | ) |   | $ | 43 |  |
| Employee relocation costs    | — |  |   | 1 |  |   | (1 | ) |   | — |  |   | — |  |
| Lease vacancy                | 17 |  |   | 1 |  |   | (2 | ) |   | 1 |  |   | 17 |  |
| Other                        | — |  |   | 1 |  |   | — |  |   | — |  |   | 1 |  |
| Restructuring liability      | $ | 89 |  |   | $ | 3 |  |   | $ | (30 | ) |   | $ | (1 | ) |   | $ | 61 |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |
| (in millions)                         | January 31, 2014 |   | October 31, 2013 |
| Retail portfolio                      | $ | 739 |  |   | $ | 751 |  |
| Wholesale portfolio                   | 1,049 |  |   | 1,207 |  |
| Total finance receivables             | 1,788 |  |   | 1,958 |  |
| Less: Allowance for doubtful accounts | 24 |  |   | 23 |  |
| Total finance receivables, net        | 1,764 |  |   | 1,935 |  |
| Less: Current portion, net(A)         | 1,461 |  |   | 1,597 |  |
| Noncurrent portion, net               | $ | 303 |  |   | $ | 338 |  |

|     |                                                                                                                                                                                                                                                |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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. |

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|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |
|                                    | Three Months Ended January 31, |
| (in millions)                           | 2014 |   | 2013 |
| Retail notes and finance leases revenue | $ | 17 |  |   | $ | 21 |  |
| Wholesale notes interest                | 18 |  |   | 20 |  |
| Operating lease revenue                 | 14 |  |   | 12 |  |
| Retail and wholesale accounts interest  | 6 |  |   | 6 |  |
| Gross finance revenues                  | 55 |  |   | 59 |  |
| Less: Intercompany revenues             | (16 | ) |   | (20 | ) |
| Finance revenues                        | $ | 39 |  |   | $ | 39 |  |

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                    | Three Months Ended January 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      | 4 |  |   | — |  |   | 2 |  |   | 6 |  |
| Charge-off of accounts(A)                               | (2 | ) |   | — |  |   | — |  |   | (2 | ) |
| Other(B)                                                | (1 | ) |   | — |  |   | (3 | ) |   | (4 | ) |
| Allowance for doubtful accounts, at end of period       | $ | 22 |  |   | $ | 2 |  |   | $ | 36 |  |   | $ | 60 |  |

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                    | Three Months Ended January 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      | (1 | ) |   | 2 |  |   | — |  |   | 1 |  |
| Charge-off of accounts(A)                               | (3 | ) |   | — |  |   | — |  |   | (3 | ) |
| Allowance for doubtful accounts, at end of period       | $ | 23 |  |   | $ | 2 |  |   | $ | 24 |  |   | $ | 49 |  |

|     |                                                                                                                                                                                                                                                                                                                            |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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 for both the three months ended January 31, 2014 and 2013. |

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

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|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                        | January 31, 2014 |   | October 31, 2013 |
| (in millions)                                               | RetailPortfolio |   | WholesalePortfolio |   | Total |   | RetailPortfolio |   | WholesalePortfolio |   | Total |
| Impaired finance receivables with specific loss reserves    | $ | 14 |  |   | $ | — |  |   | $ | 14 |  |   | $ | 15 |  |   | $ | — |  |   | $ | 15 |  |
| Impaired finance receivables without specific loss reserves | 1 |  |   | — |  |   | 1 |  |   | 1 |  |   | — |  |   | 1 |  |
| Specific loss reserves on impaired finance receivables      | 5 |  |   | — |  |   | 5 |  |   | 6 |  |   | — |  |   | 6 |  |
| Finance receivables on non-accrual status                   | 13 |  |   | — |  |   | 13 |  |   | 10 |  |   | — |  |   | 10 |  |

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                | January 31, 2014 |   | October 31, 2013 |
| (in millions)                       | RetailPortfolio |   | WholesalePortfolio |   | Total |   | RetailPortfolio |   | WholesalePortfolio |   | Total |
| Current, and up to 30 days past due | $ | 686 |  |   | $ | 1,044 |  |   | $ | 1,730 |  |   | $ | 699 |  |   | $ | 1,204 |  |   | $ | 1,903 |  |
| 30-90 days past due                 | 40 |  |   | 4 |  |   | 44 |  |   | 44 |  |   | 2 |  |   | 46 |  |
| Over 90 days past due               | 13 |  |   | 1 |  |   | 14 |  |   | 8 |  |   | 1 |  |   | 9 |  |
| Total finance receivables           | $ | 739 |  |   | $ | 1,049 |  |   | $ | 1,788 |  |   | $ | 751 |  |   | $ | 1,207 |  |   | $ | 1,958 |  |

|                   |
|-------------------|
|                   |  |  |  |  |  |  |  |
| (in millions)     | January 31, 2014 |   | October 31, 2013 |
| Finished products | $ | 775 |  |   | $ | 692 |  |
| Work in process   | 101 |  |   | 58 |  |
| Raw materials     | 506 |  |   | 460 |  |
| Total inventories | $ | 1,382 |  |   | $ | 1,210 |  |

|                                                                                                                    |
|--------------------------------------------------------------------------------------------------------------------|
|                                                                                                                    |  |  |  |  |  |  |  |
| (in millions)                                                                                                      | January 31, 2014 |   | October 31, 2013 |
| Manufacturing operations                                                                                           |   |   |   |
| Senior Secured Term Loan Credit Facility, as Amended, due 2017, net of unamortized discount of $4 for both periods | $ | 693 |  |   | $ | 693 |  |
| 8.25% Senior Notes, due 2021, net of unamortized discount of $22 for both periods                                  | 1,178 |  |   | 1,178 |  |
| 3.00% Senior Subordinated Convertible Notes, due 2014, net of unamortized discount of $19 and $26, respectively    | 551 |  |   | 544 |  |
| 4.50% Senior Subordinated Convertible Notes, due 2018, net of unamortized discount of $22 and $23, respectively    | 178 |  |   | 177 |  |
| Debt of majority-owned dealerships                                                                                 | 46 |  |   | 48 |  |
| Financing arrangements and capital lease obligations                                                               | 70 |  |   | 77 |  |
| Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040                                                          | 225 |  |   | 225 |  |
| Promissory Note                                                                                                    | 18 |  |   | 20 |  |
| Financed lease obligations                                                                                         | 219 |  |   | 218 |  |
| Other                                                                                                              | 34 |  |   | 39 |  |
| Total Manufacturing operations debt                                                                                | 3,212 |  |   | 3,219 |  |
| Less: Current portion                                                                                              | 662 |  |   | 658 |  |
| Net long-term Manufacturing operations debt                                                                        | $ | 2,550 |  |   | $ | 2,561 |  |

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|                                                                                                       |
|-------------------------------------------------------------------------------------------------------|
|                                                                                                       |  |  |  |  |  |  |  |
| (in millions)                                                                                         | January 31, 2014 |   | October 31, 2013 |
| Financial Services operations                                                                         |   |   |   |
| Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2019 | $ | 752 |  |   | $ | 778 |  |
| Bank revolvers, at fixed and variable rates, due dates from 2014 through 2019                         | 820 |  |   | 1,018 |  |
| Commercial paper, at variable rates, program matures in 2015                                          | 22 |  |   | 21 |  |
| Borrowings secured by operating and finance leases, at various rates, due serially through 2018       | 58 |  |   | 49 |  |
| Total Financial Services operations debt                                                              | 1,652 |  |   | 1,866 |  |
| Less: Current portion                                                                                 | 597 |  |   | 505 |  |
| Net long-term Financial Services operations debt                                                      | $ | 1,055 |  |   | $ | 1,361 |  |

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                               | Three Months Ended January 31, |
|                                               | Pension Benefits |   | Health and LifeInsurance Benefits |
| (in millions)                                      | 2014 |   | 2013 |   | 2014 |   | 2013 |
| Service cost for benefits earned during the period | $ | 4 |  |   | $ | 5 |  |   | $ | 1 |  |   | $ | 2 |  |
| Interest on obligation                             | 39 |  |   | 36 |  |   | 17 |  |   | 15 |  |
| Amortization of cumulative loss                    | 24 |  |   | 32 |  |   | 4 |  |   | 7 |  |
| Amortization of prior service benefit              | — |  |   | — |  |   | (1 | ) |   | (1 | ) |
| Expected return on assets                          | (48 | ) |   | (47 | ) |   | (8 | ) |   | (8 | ) |
| Net postretirement benefits expense                | $ | 19 |  |   | $ | 26 |  |   | $ | 13 |  |   | $ | 15 |  |

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

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|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                              | January 31, 2014 |   | October 31, 2013 |
| (in millions)                     | Level 1 |   | Level 2 |   | Level 3 |   | Total |   | Level 1 |   | Level 2 |   | Level 3 |   | Total |
| Assets                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Marketable securities:            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury bills               | $ | 281 |  |   | $ | — |  |   | $ | — |  |   | $ | 281 |  |   | $ | 396 |  |   | $ | — |  |   | $ | — |  |   | $ | 396 |  |
| Other                             | 349 |  |   | — |  |   | — |  |   | 349 |  |   | 434 |  |   | — |  |   | — |  |   | 434 |  |
| Derivative financial instruments: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency contracts        | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 4 |  |   | — |  |   | 4 |  |
| Interest rate caps                | — |  |   | 3 |  |   | — |  |   | 3 |  |   | — |  |   | 1 |  |   | — |  |   | 1 |  |
| Total assets                      | $ | 630 |  |   | $ | 3 |  |   | $ | — |  |   | $ | 633 |  |   | $ | 830 |  |   | $ | 5 |  |   | $ | — |  |   | $ | 835 |  |
| Liabilities                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative financial instruments: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency contracts        | $ | — |  |   | $ | 1 |  |   | $ | — |  |   | $ | 1 |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |
| Guarantees                        | — |  |   | — |  |   | 6 |  |   | 6 |  |   | — |  |   | — |  |   | 6 |  |   | 6 |  |
| Total liabilities                 | $ | — |  |   | $ | 1 |  |   | $ | 6 |  |   | $ | 7 |  |   | $ | — |  |   | $ | — |  |   | $ | 6 |  |   | $ | 6 |  |

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                            | Three Months Ended January 31, |
|                                                            | 2014 |   | 2013 |
| (in millions)                                                   | Guarantees |   | Commodity contracts |   | Guarantees |   | Commodity contracts |
| Balance at November 1                                           | $ | (6 | ) |   | $ | — |  |   | $ | (7 | ) |   | $ | — |  |
| Transfers out of Level 3                                        | — |  |   | — |  |   | — |  |   | — |  |
| Issuances                                                       | — |  |   | — |  |   | — |  |   | — |  |
| Settlements                                                     | — |  |   | — |  |   | — |  |   | — |  |
| Balance at January 31                                           | $ | (6 | ) |   | $ | — |  |   | $ | (7 | ) |   | $ | — |  |
| Change in unrealized gains on assets and liabilities still held | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |
| (in millions)                                      | January 31, 2014 |   | October 31, 2013 |
| Level 2 financial instruments                      |   |   |   |
| Carrying value of impaired finance receivables (A) | $ | 14 |  |   | $ | 15 |  |
| Specific loss reserve                              | (5 | ) |   | (6 | ) |
| Fair value                                         | $ | 9 |  |   | $ | 9 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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. |

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|                                                                                                 |
|-------------------------------------------------------------------------------------------------|
|                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                            | As of January 31, 2014 |
|                                                                                            | Estimated Fair Value |   | Carrying Value |
| (in millions)                                                                                   | Level 1 |   | Level 2 |   | Level 3 |   | Total |   |
| Assets                                                                                          |   |   |   |   |   |   |   |   |   |
| Retail notes                                                                                    | $ | — |  |   | $ | — |  |   | $ | 339 |  |   | $ | 339 |  |   | $ | 335 |  |
| Notes receivable                                                                                | — |  |   | — |  |   | 12 |  |   | 12 |  |   | 70 |  |
| Liabilities                                                                                     |   |   |   |   |   |   |   |   |   |
| Debt:                                                                                           |   |   |   |   |   |   |   |   |   |
| Manufacturing operations                                                                        |   |   |   |   |   |   |   |   |   |
| Senior Secured Term Loan Credit Facility, as Amended due 2017                                   | — |  |   | — |  |   | 723 |  |   | 723 |  |   | 693 |  |
| 8.25% Senior Notes, due 2021                                                                    | 1,264 |  |   | — |  |   | — |  |   | 1,264 |  |   | 1,178 |  |
| 3.0% Senior Subordinated Convertible Notes, due 2014(A)                                    | 577 |  |   | — |  |   | — |  |   | 577 |  |   | 551 |  |
| 4.50% Senior Subordinated Convertible Notes, due 2018                                      | — |  |   | — |  |   | 199 |  |   | 199 |  |   | 178 |  |
| Debt of majority-owned dealerships                                                              | — |  |   | — |  |   | 46 |  |   | 46 |  |   | 46 |  |
| Financing arrangements                                                                          | — |  |   | — |  |   | 39 |  |   | 39 |  |   | 67 |  |
| Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040                                  | — |  |   | 224 |  |   | — |  |   | 224 |  |   | 225 |  |
| Promissory Note                                                                                 | — |  |   | — |  |   | 18 |  |   | 18 |  |   | 18 |  |
| Financed lease obligations                                                                      | — |  |   | — |  |   | 219 |  |   | 219 |  |   | 219 |  |
| Other                                                                                           | — |  |   | — |  |   | 31 |  |   | 31 |  |   | 34 |  |
| Financial Services operations                                                                   |   |   |   |   |   |   |   |   |   |
| Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2019      | — |  |   | — |  |   | 746 |  |   | 746 |  |   | 752 |  |
| Bank revolvers, at fixed and variable rates, due dates from 2014 through 2019                   | — |  |   | — |  |   | 798 |  |   | 798 |  |   | 820 |  |
| Commercial paper, at variable rates, program matures in 2015                                    | 22 |  |   | — |  |   | — |  |   | 22 |  |   | 22 |  |
| Borrowings secured by operating and finance leases, at various rates, due serially through 2018 | — |  |   | — |  |   | 58 |  |   | 58 |  |   | 58 |  |

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|                                                                                                 |
|-------------------------------------------------------------------------------------------------|
|                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                            | As of October 31, 2013 |
|                                                                                            | Estimated Fair Value |   | Carrying Value |
| (in millions)                                                                                   | Level 1 |   | Level 2 |   | Level 3 |   | Total |   |
| Assets                                                                                          |   |   |   |   |   |   |   |   |   |
| Retail notes                                                                                    | $ | — |  |   | $ | — |  |   | $ | 390 |  |   | $ | 390 |  |   | $ | 390 |  |
| Notes receivable                                                                                | — |  |   | — |  |   | 13 |  |   | 13 |  |   | 14 |  |
| Liabilities                                                                                     |   |   |   |   |   |   |   |   |   |
| Debt:                                                                                           |   |   |   |   |   |   |   |   |   |
| Manufacturing operations                                                                        |   |   |   |   |   |   |   |   |   |
| Senior Secured Term Loan Credit Facility, as Amended due 2017                                   | — |  |   | — |  |   | 720 |  |   | 720 |  |   | 693 |  |
| 8.25% Senior Notes, due 2021                                                                    | 1,274 |  |   | — |  |   | — |  |   | 1,274 |  |   | 1,178 |  |
| 3.0% Senior Subordinated Convertible Notes, due 2014(A)                                    | 586 |  |   | — |  |   | — |  |   | 586 |  |   | 544 |  |
| 4.50% Senior Subordinated Convertible Notes, due 2018                                           | — |  |   | — |  |   | 203 |  |   | 203 |  |   | 177 |  |
| Debt of majority-owned dealerships                                                              | — |  |   | — |  |   | 48 |  |   | 48 |  |   | 48 |  |
| Financing arrangements                                                                          | — |  |   | — |  |   | 44 |  |   | 44 |  |   | 73 |  |
| Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040                                  | — |  |   | 229 |  |   | — |  |   | 229 |  |   | 225 |  |
| Promissory Note                                                                                 | — |  |   | — |  |   | 20 |  |   | 20 |  |   | 20 |  |
| Financed Lease Obligations                                                                      | — |  |   | — |  |   | 218 |  |   | 218 |  |   | 218 |  |
| Other                                                                                           | — |  |   | — |  |   | 36 |  |   | 36 |  |   | 39 |  |
| Financial Services operations                                                                   |   |   |   |   |   |   |   |   |   |
| Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2019      | — |  |   | — |  |   | 775 |  |   | 775 |  |   | 778 |  |
| Bank revolvers, at fixed and variable rates, due dates from 2014 through 2019                   | — |  |   | — |  |   | 990 |  |   | 990 |  |   | 1,018 |  |
| Commercial paper, at variable rates, program matures in 2015                                    | 21 |  |   | — |  |   | — |  |   | 21 |  |   | 21 |  |
| Borrowings secured by operating and finance leases, at various rates, due serially through 2017 | — |  |   | — |  |   | 49 |  |   | 49 |  |   | 49 |  |

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

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|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |
|                       | January 31, 2014 |
|                       | Asset Derivatives |   | Liability Derivatives |
| (in millions)              | Location inConsolidated Balance Sheets |   | Fair Value |   | Location inConsolidated Balance Sheets |   | Fair Value |
| Foreign currency contracts | Other current assets |   | $ | — |  |   | Other current liabilities |   | $ | 1 |  |
| Interest rate caps         | Other current assets |   | 3 |  |   | Other noncurrent liabilities |   | — |  |
| Total fair value           |   | $ | 3 |  |   |   |   | $ | 1 |  |

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |
|                       | October 31, 2013 |
|                       | Asset Derivatives |   | Liability Derivatives |
| (in millions)              | Location inConsolidated Balance Sheets |   | Fair Value |   | Location inConsolidated Balance Sheets |   | Fair Value |
| Foreign currency contracts | Other current assets |   | $ | 4 |  |   | Other current liabilities |   | $ | — |  |
| Interest rate caps         | Other noncurrent assets |   | 1 |  |   | Other current liabilities |   | — |  |
| Total fair value           |   | $ | 5 |  |   |   |   | $ | — |  |

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |
|                       | Location in Consolidated                                                                                                                                                             Statements of Operations |   | Three Months Ended January 31, |
| (in millions)              |   | 2014 |   | 2013 |
| Cross currency swaps       | Other expense (income), net |   | $ | 1 |  |   | $ | — |  |
| Interest rate caps         | Interest expense |   | (1 | ) |   | — |  |
| Foreign currency contracts | Other expense (income), net |   | — |  |   | 1 |  |
| Total loss                 |   | $ | — |  |   | $ | 1 |  |

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|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |
| (in millions)             | Currency |   | Notional Amount |   | Maturity |
| As of January 31, 2014    |   |   |   |   |   |
| Forward exchange contract | EUR |   | € | 20 |  |   | April 2014 |
| As of October 31, 2013    |   |   |   |   |   |
| Option collar contracts   | EUR |   | € | 2 |  |   | October 2013 |
| Forward exchange contract | CAD |   | C$ | 90 |  |   | October 2013 |
| Option collar contract    | CAD |   | C$ | 50 |  |   | October 2013 |
| Option collar contract    | BRL |   | US$ | 25 |  |   | October 2013 |

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|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Our North America 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 MaxxForce brand name, in the North America markets that include sales in the U.S., Canada, and Mexico. In an effort to strengthen and maintain our dealer network, this segment occasionally acquires and operates dealer locations for the purpose of transitioning ownership. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Our North America Parts segment provides customers with proprietary products needed to support the International commercial and military truck, IC Bus, MaxxForce engine lines, as well as our other product lines. Our North America Parts segment also provides a wide selection of other standard truck, trailer, and engine aftermarket parts. At January 31, 2014, this segment operated eleven regional parts distribution centers that provide 24-hour availability and shipment. Also included in the North America 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 includes businesses that derive their revenue from outside our core North America markets and primarily consists of the IIAA (formerly MWM) engine and truck operations in Brazil and our export truck and parts businesses. 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. |

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

|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                            | North America Truck |   | North America Parts |   | Global Operations |   | FinancialServices(A) |   | CorporateandEliminations |   | Total |
| Three Months Ended January 31, 2014                                      |   |   |   |   |   |   |   |   |   |   |   |
| External sales and revenues, net                                         | $ | 1,277 |  |   | $ | 597 |  |   | $ | 295 |  |   | $ | 39 |  |   | $ | — |  |   | $ | 2,208 |  |
| Intersegment sales and revenues                                          | 88 |  |   | 10 |  |   | 8 |  |   | 16 |  |   | (122 | ) |   | — |  |
| Total sales and revenues, net                                            | $ | 1,365 |  |   | $ | 607 |  |   | $ | 303 |  |   | $ | 55 |  |   | $ | (122 | ) |   | $ | 2,208 |  |
| Income (loss) from continuing operations attributable to NIC, net of tax | $ | (207 | ) |   | $ | 104 |  |   | $ | (33 | ) |   | $ | 23 |  |   | $ | (136 | ) |   | $ | (249 | ) |
| Income tax benefit                                                       | — |  |   | — |  |   | — |  |   | — |  |   | 12 |  |   | 12 |  |
| Segment profit (loss)                                                    | $ | (207 | ) |   | $ | 104 |  |   | $ | (33 | ) |   | $ | 23 |  |   | $ | (148 | ) |   | $ | (261 | ) |
| Depreciation and amortization                                            | $ | 58 |  |   | $ | 4 |  |   | $ | 8 |  |   | $ | 10 |  |   | $ | 6 |  |   | $ | 86 |  |
| Interest expense                                                         | — |  |   | — |  |   | — |  |   | 17 |  |   | 65 |  |   | 82 |  |
| Equity in income (loss) of non-consolidated affiliates                   | 1 |  |   | 1 |  |   | (2 | ) |   | — |  |   | — |  |   | — |  |
| Capital expenditures(B)                                                  | 12 |  |   | 4 |  |   | 3 |  |   | 1 |  |   | 1 |  |   | 21 |  |

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|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                            | North America Truck |   | North America Parts |   | Global Operations |   | FinancialServices(A) |   | CorporateandEliminations |   | Total |
| Three Months Ended January 31, 2013                                      |   |   |   |   |   |   |   |   |   |   |   |
| External sales and revenues, net                                         | $ | 1,538 |  |   | $ | 669 |  |   | $ | 391 |  |   | $ | 39 |  |   | $ | — |  |   | $ | 2,637 |  |
| Intersegment sales and revenues                                          | 127 |  |   | 18 |  |   | 15 |  |   | 20 |  |   | (180 | ) |   | — |  |
| Total sales and revenues, net                                            | $ | 1,665 |  |   | $ | 687 |  |   | $ | 406 |  |   | $ | 59 |  |   | $ | (180 | ) |   | $ | 2,637 |  |
| Income (loss) from continuing operations attributable to NIC, net of tax | $ | (101 | ) |   | $ | 117 |  |   | $ | (10 | ) |   | $ | 22 |  |   | $ | (142 | ) |   | $ | (114 | ) |
| Income tax expense                                                       | — |  |   | — |  |   | — |  |   | — |  |   | (15 | ) |   | (15 | ) |
| Segment profit (loss)                                                    | $ | (101 | ) |   | $ | 117 |  |   | $ | (10 | ) |   | $ | 22 |  |   | $ | (127 | ) |   | $ | (99 | ) |
| Depreciation and amortization                                            | $ | 71 |  |   | $ | 4 |  |   | $ | 9 |  |   | $ | 9 |  |   | $ | 7 |  |   | $ | 100 |  |
| Interest expense                                                         | — |  |   | — |  |   | — |  |   | 18 |  |   | 56 |  |   | 74 |  |
| Equity in income (loss) of non-consolidated affiliates                   | 2 |  |   | 1 |  |   | (4 | ) |   | — |  |   | — |  |   | (1 | ) |
| Capital expenditures(B)                                                  | 65 |  |   | 1 |  |   | 3 |  |   | — |  |   | 3 |  |   | 72 |  |

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)          | North America Truck |   | North America Parts |   | Global Operations |   | FinancialServices |   | CorporateandEliminations |   | Total |
| Segment assets, as of: |   |   |   |   |   |   |   |   |   |   |   |
| January 31, 2014       | $ | 2,309 |  |   | $ | 701 |  |   | $ | 994 |  |   | $ | 2,243 |  |   | $ | 1,407 |  |   | $ | 7,654 |  |
| October 31, 2013       | 2,250 |  |   | 716 |  |   | 1,162 |  |   | 2,355 |  |   | 1,832 |  |   | 8,315 |  |

|     |                                                                                                                                                                                                     |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Total sales and revenues in the Financial Services segment include interest revenues of $40 million and $47 million for the three months ended January 31, 2014 and 2013, respectively. |

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

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                    | Foreign Currency Translation Adjustments |   | Defined Benefit Plan |   | Total |
| Balance as of October 31, 2013                                   | $ | (75 | ) |   | $ | (1,749 | ) |   | $ | (1,824 | ) |
| Other comprehensive loss before reclassifications                | (62 | ) |   | (1 | ) |   | (63 | ) |
| Amounts reclassified out of accumulated other comprehensive loss | — |  |   | 26 |  |   | 26 |  |
| Net current-period other comprehensive income (loss)             | (62 | ) |   | 25 |  |   | (37 | ) |
| Balance as of January 31, 2014                                   | $ | (137 | ) |   | $ | (1,724 | ) |   | $ | (1,861 | ) |

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Table of Contents

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |
|                                               |   | Location in Consolidated Statements of Operations |   | Three months ended January 31, 2014 |
| Defined benefit plans                              |   |   |   |   |
| Amortization of prior service costs                |   | Selling, general and administrative expenses |   | $ | (1 | ) |
| Amortization of actuarial loss                     |   | Selling, general and administrative expenses |   | 27 |  |
|                                               |   | Total before tax |   | 26 |  |
|                                               |   | Tax benefit (expense) |   | — |  |
|                                               |   | Net of tax |   | 26 |  |
|                                               |   |   |   |   |
| Total reclassifications for the period, net of tax |   | $ | 26 |  |

|                                                                                 |
|---------------------------------------------------------------------------------|
|                                                                                 |  |  |  |  |  |  |  |
|                                                                            | Three months ended January 31, |
| (in millions, except per share data)                                            | 2014 |   | 2013 |
| Numerator:                                                                      |   |   |   |
| Amounts attributable to Navistar International Corporation common stockholders: |   |   |   |
| Loss from continuing operations, net of tax                                     | $ | (249 | ) |   | $ | (114 | ) |
| Income (loss) from discontinued operations, net of tax                          | 1 |  |   | (9 | ) |
| Net loss                                                                        | $ | (248 | ) |   | $ | (123 | ) |
|                                                                            |   |   |   |
| Denominator:                                                                    |   |   |   |
| Weighted average shares outstanding:                                            |   |   |   |
| Basic                                                                           | 81.2 |  |   | 80.2 |  |
| Effect of dilutive securities                                                   | — |  |   | — |  |
| Diluted                                                                         | 81.2 |  |   | 80.2 |  |
|                                                                            |   |   |   |
| Earnings (loss) per share attributable to Navistar International Corporation:   |   |   |   |
| Basic:                                                                          |   |   |   |
| Continuing operations                                                           | $ | (3.07 | ) |   | $ | (1.42 | ) |
| Discontinued operations                                                         | 0.02 |  |   | (0.11 | ) |
|                                                                            | $ | (3.05 | ) |   | $ | (1.53 | ) |
| Diluted:                                                                        |   |   |   |
| Continuing operations                                                           | $ | (3.07 | ) |   | $ | (1.42 | ) |
| Discontinued operations                                                         | 0.02 |  |   | (0.11 | ) |
|                                                                            | $ | (3.05 | ) |   | $ | (1.53 | ) |

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Table of Contents

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Table of Contents

|                                                                                             |
|---------------------------------------------------------------------------------------------|
|                                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Operations for the Three Months Ended January 31, 2014 |
| (in millions)                                                                               | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Sales and revenues, net                                                                     | $ | — |  |   | $ | 1,424 |  |   | $ | 1,729 |  |   | $ | (945 | ) |   | $ | 2,208 |  |
| Costs of products sold                                                                      | — |  |   | 1,425 |  |   | 1,531 |  |   | (942 | ) |   | 2,014 |  |
| Restructuring charges                                                                       | — |  |   | 2 |  |   | 1 |  |   | — |  |   | 3 |  |
| Asset impairment charges                                                                    | — |  |   | — |  |   | 18 |  |   | — |  |   | 18 |  |
| All other operating expenses (income)                                                       | 36 |  |   | 241 |  |   | 159 |  |   | (11 | ) |   | 425 |  |
| Total costs and expenses                                                                    | 36 |  |   | 1,668 |  |   | 1,709 |  |   | (953 | ) |   | 2,460 |  |
| Equity in income (loss) of affiliates                                                       | (212 | ) |   | (11 | ) |   | (1 | ) |   | 224 |  |   | — |  |
| Income (loss) before income taxes                                                           | (248 | ) |   | (255 | ) |   | 19 |  |   | 232 |  |   | (252 | ) |
| Income tax benefit                                                                          | — |  |   | 7 |  |   | 5 |  |   | — |  |   | 12 |  |
| Earnings (loss) from continuing operations                                                  | (248 | ) |   | (248 | ) |   | 24 |  |   | 232 |  |   | (240 | ) |
| Income from discontinued operations, net of tax                                             | — |  |   | — |  |   | 1 |  |   | — |  |   | 1 |  |
| Net income (loss)                                                                           | (248 | ) |   | (248 | ) |   | 25 |  |   | 232 |  |   | (239 | ) |
| Less: Net income attributable to non-controlling interests                                  | — |  |   | — |  |   | 9 |  |   | — |  |   | 9 |  |
| Net income (loss) attributable to Navistar International Corporation                        | $ | (248 | ) |   | $ | (248 | ) |   | $ | 16 |  |   | $ | 232 |  |   | $ | (248 | ) |

|                                                                                                              |
|--------------------------------------------------------------------------------------------------------------|
|                                                                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended January 31, 2014 |
| (in millions)                                                                                                | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Net income (loss) attributable to Navistar International Corporation                                         | $ | (248 | ) |   | $ | (248 | ) |   | $ | 16 |  |   | $ | 232 |  |   | $ | (248 | ) |
| Other comprehensive income (loss):                                                                           |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                                                      | (62 | ) |   | — |  |   | (62 | ) |   | 62 |  |   | (62 | ) |
| Defined benefit plans (net of tax of $0 tax for all entities)                                                | 25 |  |   | 25 |  |   | — |  |   | (25 | ) |   | 25 |  |
| Total other comprehensive income (loss)                                                                      | (37 | ) |   | 25 |  |   | (62 | ) |   | 37 |  |   | (37 | ) |
| Total comprehensive income (loss) attributable to Navistar International Corporation                         | $ | (285 | ) |   | $ | (223 | ) |   | $ | (46 | ) |   | $ | 269 |  |   | $ | (285 | ) |

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|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Balance Sheet as of January 31, 2014                            |
| (in millions)                                                                           | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Assets                                                                                  |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                               | $ | 177 |  |   | $ | 40 |  |   | $ | 332 |  |   | $ | — |  |   | $ | 549 |  |
| Marketable securities                                                                   | 317 |  |   | — |  |   | 313 |  |   | — |  |   | 630 |  |
| Restricted cash                                                                         | 18 |  |   | 4 |  |   | 93 |  |   | — |  |   | 115 |  |
| Finance and other receivables, net                                                      | (1 | ) |   | 138 |  |   | 2,214 |  |   | (6 | ) |   | 2,345 |  |
| Inventories                                                                             | — |  |   | 773 |  |   | 621 |  |   | (12 | ) |   | 1,382 |  |
| Investments in non-consolidated affiliates                                              | (6,375 | ) |   | 6,586 |  |   | 72 |  |   | (208 | ) |   | 75 |  |
| Property and equipment, net                                                             | — |  |   | 906 |  |   | 790 |  |   | 4 |  |   | 1,700 |  |
| Goodwill                                                                                | — |  |   | — |  |   | 170 |  |   | — |  |   | 170 |  |
| Deferred taxes, net                                                                     | 1 |  |   | 13 |  |   | 215 |  |   | — |  |   | 229 |  |
| Other                                                                                   | 34 |  |   | 162 |  |   | 267 |  |   | (4 | ) |   | 459 |  |
| Total assets                                                                            | $ | (5,829 | ) |   | $ | 8,622 |  |   | $ | 5,087 |  |   | $ | (226 | ) |   | $ | 7,654 |  |
| Liabilities and stockholders’ equity (deficit)                                    |   |   |   |   |   |   |   |   |   |
| Debt                                                                                    | $ | 2,133 |  |   | $ | 994 |  |   | $ | 1,741 |  |   | $ | (4 | ) |   | $ | 4,864 |  |
| Postretirement benefits liabilities                                                     | — |  |   | 2,377 |  |   | 243 |  |   | — |  |   | 2,620 |  |
| Amounts due to (from) affiliates                                                        | (7,396 | ) |   | 11,182 |  |   | (3,871 | ) |   | 85 |  |   | — |  |
| Other liabilities                                                                       | 3,344 |  |   | 632 |  |   | 147 |  |   | (76 | ) |   | 4,047 |  |
| Total liabilities                                                                       | (1,919 | ) |   | 15,185 |  |   | (1,740 | ) |   | 5 |  |   | 11,531 |  |
| Redeemable equity securities                                                            | 2 |  |   | — |  |   | — |  |   | — |  |   | 2 |  |
| Stockholders’ equity (deficit) attributable to non-controlling interest           | — |  |   | — |  |   | 33 |  |   | — |  |   | 33 |  |
| Stockholders’ equity (deficit) attributable to Navistar International Corporation | (3,912 | ) |   | (6,563 | ) |   | 6,794 |  |   | (231 | ) |   | (3,912 | ) |
| Total liabilities and stockholders’ equity (deficit)                              | $ | (5,829 | ) |   | $ | 8,622 |  |   | $ | 5,087 |  |   | $ | (226 | ) |   | $ | 7,654 |  |

|                                                                                             |
|---------------------------------------------------------------------------------------------|
|                                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Cash Flows for the Three Months Ended January 31, 2014 |
| (in millions)                                                                               | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Net cash provided by (used in) operations                                                   | $ | (446 | ) |   | $ | (970 | ) |   | $ | 368 |  |   | $ | 955 |  |   | $ | (93 | ) |
| Cash flows from investment activities                                                       |   |   |   |   |   |   |   |   |   |
| Net change in restricted cash and cash equivalents                                          | 6 |  |   | (1 | ) |   | (29 | ) |   | — |  |   | (24 | ) |
| Net sales of marketable securities                                                          | 264 |  |   | — |  |   | (64 | ) |   | — |  |   | 200 |  |
| Capital expenditures and purchase of equipment leased to others                             | — |  |   | (18 | ) |   | (52 | ) |   | — |  |   | (70 | ) |
| Other investing activities                                                                  | — |  |   | 1 |  |   | 7 |  |   | — |  |   | 8 |  |
| Net cash provided by (used in) investment activities                                        | 270 |  |   | (18 | ) |   | (138 | ) |   | — |  |   | 114 |  |
| Cash flows from financing activities                                                        |   |   |   |   |   |   |   |   |   |
| Net borrowings (repayments) of debt                                                         | 1 |  |   | 936 |  |   | (204 | ) |   | (955 | ) |   | (222 | ) |
| Other financing activities                                                                  | 16 |  |   | 20 |  |   | (20 | ) |   | — |  |   | 16 |  |
| Net cash provided by (used in) financing activities                                         | 17 |  |   | 956 |  |   | (224 | ) |   | (955 | ) |   | (206 | ) |
| Effect of exchange rate changes on cash and cash equivalents                                | — |  |   | — |  |   | (21 | ) |   | — |  |   | (21 | ) |
| Decrease in cash and cash equivalents                                                       | (159 | ) |   | (32 | ) |   | (15 | ) |   | — |  |   | (206 | ) |
| Cash and cash equivalents at beginning of the period                                        | 336 |  |   | 72 |  |   | 347 |  |   | — |  |   | 755 |  |
| Cash and cash equivalents at end of the period                                              | $ | 177 |  |   | $ | 40 |  |   | $ | 332 |  |   | $ | — |  |   | $ | 549 |  |

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Table of Contents

|                                                                                             |
|---------------------------------------------------------------------------------------------|
|                                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Operations for the Three Months Ended January 31, 2013 |
| (in millions)                                                                               | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Sales and revenues, net                                                                     | $ | — |  |   | $ | 1,609 |  |   | $ | 2,258 |  |   | $ | (1,230 | ) |   | $ | 2,637 |  |
| Costs of products sold                                                                      | — |  |   | 1,595 |  |   | 1,909 |  |   | (1,218 | ) |   | 2,286 |  |
| Restructuring charges                                                                       | — |  |   | — |  |   | 2 |  |   | — |  |   | 2 |  |
| Asset impairment charges                                                                    | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| All other operating expenses (income)                                                       | 21 |  |   | 231 |  |   | 192 |  |   | (12 | ) |   | 432 |  |
| Total costs and expenses                                                                    | 21 |  |   | 1,826 |  |   | 2,103 |  |   | (1,230 | ) |   | 2,720 |  |
| Equity in income (loss) of affiliates                                                       | (102 | ) |   | 54 |  |   | (2 | ) |   | 49 |  |   | (1 | ) |
| Income (loss) before income taxes                                                           | (123 | ) |   | (163 | ) |   | 153 |  |   | 49 |  |   | (84 | ) |
| Income tax expense                                                                          | — |  |   | (11 | ) |   | (4 | ) |   | — |  |   | (15 | ) |
| Earnings (loss) from continuing operations                                                  | (123 | ) |   | (174 | ) |   | 149 |  |   | 49 |  |   | (99 | ) |
| Loss from discontinued operations, net of tax                                               | — |  |   | — |  |   | (9 | ) |   | — |  |   | (9 | ) |
| Net income (loss)                                                                           | (123 | ) |   | (174 | ) |   | 140 |  |   | 49 |  |   | (108 | ) |
| Less: Net income attributable to non-controlling interests                                  | — |  |   | — |  |   | 15 |  |   | — |  |   | 15 |  |
| Net income (loss) attributable to Navistar International Corporation                        | $ | (123 | ) |   | $ | (174 | ) |   | $ | 125 |  |   | $ | 49 |  |   | $ | (123 | ) |

|                                                                                                              |
|--------------------------------------------------------------------------------------------------------------|
|                                                                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended January 31, 2013 |
| (in millions)                                                                                                | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Net income (loss) attributable to Navistar International Corporation                                         | $ | (123 | ) |   | $ | (174 | ) |   | $ | 125 |  |   | $ | 49 |  |   | $ | (123 | ) |
| Other comprehensive income (loss):                                                                           |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                                                      | 17 |  |   | — |  |   | 17 |  |   | (17 | ) |   | 17 |  |
| Defined benefit plans (net of tax of no tax for all entities)                                                | 38 |  |   | 35 |  |   | 3 |  |   | (38 | ) |   | 38 |  |
| Total other comprehensive income (loss)                                                                      | 55 |  |   | 35 |  |   | 20 |  |   | (55 | ) |   | 55 |  |
| Total comprehensive income (loss) attributable to Navistar International Corporation                         | $ | (68 | ) |   | $ | (139 | ) |   | $ | 145 |  |   | $ | (6 | ) |   | $ | (68 | ) |

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|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Balance Sheet as of October 31, 2013                       |
| (in millions)                                                                           | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Assets                                                                                  |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                               | $ | 336 |  |   | $ | 72 |  |   | $ | 347 |  |   | $ | — |  |   | $ | 755 |  |
| Marketable securities                                                                   | 581 |  |   | 1 |  |   | 248 |  |   | — |  |   | 830 |  |
| Restricted cash                                                                         | 23 |  |   | 3 |  |   | 65 |  |   | — |  |   | 91 |  |
| Finance and other receivables, net                                                      | 3 |  |   | 148 |  |   | 2,561 |  |   | (11 | ) |   | 2,701 |  |
| Inventories                                                                             | — |  |   | 621 |  |   | 608 |  |   | (19 | ) |   | 1,210 |  |
| Investments in non-consolidated affiliates                                              | (6,123 | ) |   | 6,600 |  |   | 73 |  |   | (473 | ) |   | 77 |  |
| Property and equipment, net                                                             | — |  |   | 937 |  |   | 807 |  |   | (3 | ) |   | 1,741 |  |
| Goodwill                                                                                | — |  |   | — |  |   | 184 |  |   | — |  |   | 184 |  |
| Deferred taxes, net                                                                     | — |  |   | 13 |  |   | 219 |  |   | (1 | ) |   | 231 |  |
| Other                                                                                   | 36 |  |   | 156 |  |   | 304 |  |   | (1 | ) |   | 495 |  |
| Total assets                                                                            | $ | (5,144 | ) |   | $ | 8,551 |  |   | $ | 5,416 |  |   | $ | (508 | ) |   | $ | 8,315 |  |
| Liabilities and stockholders’ equity (deficit)                                    |   |   |   |   |   |   |   |   |   |
| Debt                                                                                    | $ | 2,125 |  |   | $ | 1,002 |  |   | $ | 1,960 |  |   | $ | (2 | ) |   | $ | 5,085 |  |
| Postretirement benefits liabilities                                                     | — |  |   | 2,407 |  |   | 245 |  |   | — |  |   | 2,652 |  |
| Amounts due to (from) affiliates                                                        | (6,988 | ) |   | 10,846 |  |   | (3,932 | ) |   | 74 |  |   | — |  |
| Other liabilities                                                                       | 3,362 |  |   | 646 |  |   | 250 |  |   | (79 | ) |   | 4,179 |  |
| Total liabilities                                                                       | (1,501 | ) |   | 14,901 |  |   | (1,477 | ) |   | (7 | ) |   | 11,916 |  |
| Redeemable equity securities                                                            | 4 |  |   | — |  |   | — |  |   | — |  |   | 4 |  |
| Stockholders’ equity (deficit) attributable to non-controlling interest           | — |  |   | — |  |   | 44 |  |   | — |  |   | 44 |  |
| Stockholders’ equity (deficit) attributable to Navistar International Corporation | (3,647 | ) |   | (6,350 | ) |   | 6,849 |  |   | (501 | ) |   | (3,649 | ) |
| Total liabilities and stockholders’ equity (deficit)                              | $ | (5,144 | ) |   | $ | 8,551 |  |   | $ | 5,416 |  |   | $ | (508 | ) |   | $ | 8,315 |  |

|                                                                                             |
|---------------------------------------------------------------------------------------------|
|                                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Cash Flows for the Three Months Ended January 31, 2013 |
| (in millions)                                                                               | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Net cash provided by (used in) operations                                                   | $ | (342 | ) |   | $ | (531 | ) |   | $ | 297 |  |   | $ | 642 |  |   | $ | 66 |  |
| Cash flows from investment activities                                                       |   |   |   |   |   |   |   |   |   |
| Net change in restricted cash and cash equivalents                                          | — |  |   | (1 | ) |   | 60 |  |   | — |  |   | 59 |  |
| Net sales of marketable securities                                                          | (242 | ) |   | — |  |   | (63 | ) |   | — |  |   | (305 | ) |
| Capital expenditures and purchase of equipment leased to others                             | — |  |   | (62 | ) |   | (42 | ) |   | — |  |   | (104 | ) |
| Other investing activities                                                                  | — |  |   | — |  |   | 3 |  |   | — |  |   | 3 |  |
| Net cash used in investment activities                                                      | (242 | ) |   | (63 | ) |   | (42 | ) |   | — |  |   | (347 | ) |
| Cash flows from financing activities                                                        |   |   |   |   |   |   |   |   |   |
| Net borrowings (repayments) of debt                                                         | 21 |  |   | 589 |  |   | (273 | ) |   | (642 | ) |   | (305 | ) |
| Other financing activities                                                                  | 15 |  |   | — |  |   | (13 | ) |   | — |  |   | 2 |  |
| Net cash provided by (used in) financing activities                                         | 36 |  |   | 589 |  |   | (286 | ) |   | (642 | ) |   | (303 | ) |
| Effect of exchange rate changes on cash and cash equivalents                                | — |  |   | — |  |   | (6 | ) |   | — |  |   | (6 | ) |
| Decrease in cash and cash equivalents                                                       | (548 | ) |   | (5 | ) |   | (37 | ) |   | — |  |   | (590 | ) |
| Cash and cash equivalents at beginning of the period                                        | 702 |  |   | 55 |  |   | 330 |  |   | — |  |   | 1,087 |  |
| Cash and cash equivalents at end of the period                                              | $ | 154 |  |   | $ | 50 |  |   | $ | 293 |  |   | $ | — |  |   | $ | 497 |  |

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|         |                                                                                       |
|---------|---------------------------------------------------------------------------------------|
| Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations |

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Table of Contents

|                                                            |
|------------------------------------------------------------|
|                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                       | Three Months Ended January 31, |   |   |   | % Change |
| (in millions, except per share data and % change)          | 2014 |   | 2013 |   | Change |   |
| Sales and revenues, net                                    | $ | 2,208 |  |   | $ | 2,637 |  |   | $ | (429 | ) |   | (16 | )% |
| Costs of products sold                                     | 2,014 |  |   | 2,286 |  |   | (272 | ) |   | (12 | )% |
| Restructuring charges                                      | 3 |  |   | 2 |  |   | 1 |  |   | 50 |  % |
| Asset impairment charges                                   | 18 |  |   | — |  |   | 18 |  |   | N.M. |  |
| Selling, general and administrative expenses               | 239 |  |   | 285 |  |   | (46 | ) |   | (16 | )% |
| Engineering and product development costs                  | 90 |  |   | 111 |  |   | (21 | ) |   | (19 | )% |
| Interest expense                                           | 82 |  |   | 74 |  |   | 8 |  |   | 11 |  % |
| Other expense (income), net                                | 14 |  |   | (38 | ) |   | 52 |  |   | N.M. |  |
| Total costs and expenses                                   | 2,460 |  |   | 2,720 |  |   | (260 | ) |   | (10 | )% |
| Equity in income (loss) of non-consolidated affiliates     | — |  |   | (1 | ) |   | 1 |  |   | (100 | )% |
| Loss from continuing operations before income taxes        | (252 | ) |   | (84 | ) |   | (168 | ) |   | 200 |  % |
| Income tax benefit (expense)                               | 12 |  |   | (15 | ) |   | 27 |  |   | N.M. |  |
| Loss from continuing operations                            | (240 | ) |   | (99 | ) |   | (141 | ) |   | 142 |  % |
| Less: Net income attributable to non-controlling interests | 9 |  |   | 15 |  |   | (6 | ) |   | (40 | )% |
| Loss from continuing operations(A)                         | (249 | ) |   | (114 | ) |   | (135 | ) |   | 118 |  % |
| Income (loss) from discontinued operations, net of tax     | 1 |  |   | (9 | ) |   | 10 |  |   | N.M. |  |
| Net loss(A)                                                | $ | (248 | ) |   | $ | (123 | ) |   | $ | (125 | ) |   | 102 |  % |
|                                                       |   |   |   |   |   |   |   |
| Diluted earnings (loss) per share:(A)                      |   |   |   |   |   |   |   |
| Continuing operations                                      | $ | (3.07 | ) |   | $ | (1.42 | ) |   | $ | (1.65 | ) |   | 116 |  % |
| Discontinued operations                                    | 0.02 |  |   | (0.11 | ) |   | 0.13 |  |   | (118 | )% |
|                                                       | $ | (3.05 | ) |   | $ | (1.53 | ) |   | $ | (1.52 | ) |   | 99 |  % |
| Diluted weighted average shares outstanding                | 81.2 |  |   | 80.2 |  |   | 1.0 |  |   | 1 |  % |

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

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

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                           | Three Months Ended January 31, |   |   |   | % Change |
| (in millions, except % change) | 2014 |   | 2013 |   | Change |   |
| North America Truck            | $ | 1,365 |  |   | $ | 1,665 |  |   | $ | (300 | ) |   | (18 | )% |
| North America Parts            | 607 |  |   | 687 |  |   | (80 | ) |   | (12 | )% |
| Global Operations              | 303 |  |   | 406 |  |   | (103 | ) |   | (25 | )% |
| Financial Services             | 55 |  |   | 59 |  |   | (4 | ) |   | (7 | )% |
| Corporate and Eliminations     | (122 | ) |   | (180 | ) |   | 58 |  |   | (32 | )% |
| Total                          | $ | 2,208 |  |   | $ | 2,637 |  |   | $ | (429 | ) |   | (16 | )% |

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|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                   | Three months ended January 31, |   |   |   | %Change   |
| (in millions, except % change)         | 2014 |   | 2013 |   | Change |   |
| North America Truck segment sales, net | $ | 1,365 |  |   | $ | 1,665 |  |   | $ | (300 | ) |   | (18 | )% |
| North America Truck segment loss       | (207 | ) |   | (101 | ) |   | (106 | ) |   | 105 |  % |

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|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                   | Three Months Ended January 31, |   |   |   | %Change   |
| (in millions, except % change)         | 2014 |   | 2013 |   | Change |   |
| North America Parts segment sales, net | $ | 607 |  |   | $ | 687 |  |   | $ | (80 | ) |   | (12 | )% |
| North America Parts segment profit     | 104 |  |   | 117 |  |   | (13 | ) |   | (11 | )% |

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                 | Three Months Ended January 31, |   |   |   | %Change   |
| (in millions, except % change)       | 2014 |   | 2013 |   | Change |   |
| Global Operations segment sales, net | $ | 303 |  |   | $ | 406 |  |   | $ | (103 | ) |   | (25 | )% |
| Global Operations segment loss       | (33 | ) |   | (10 | ) |   | (23 | ) |   | 230 |  % |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     | Three Months Ended January 31, |   |   |   | %Change   |
| (in millions, except % change)           | 2014 |   | 2013 |   | Change |   |
| Financial Services segment revenues, net | $ | 55 |  |   | $ | 59 |  |   | $ | (4 | ) |   | (7 | )% |
| Financial Services segment profit        | 23 |  |   | 22 |  |   | 1 |  |   | 5 |  % |

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|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |
|                                   | Three Months Ended January 31, |   |  |   |   |
| (in units)                             | 2014 |   | 2013 |   | Change   |   | % Change   |
| Traditional Markets (U.S. and Canada)  |   |   |   |   |   |   |   |
| School buses                           | 5,300 |  |   | 5,000 |  |   | 300 |  |   | 6 |  % |
| Class 6 and 7 medium trucks            | 15,700 |  |   | 14,300 |  |   | 1,400 |  |   | 10 |  % |
| Class 8 heavy trucks                   | 42,600 |  |   | 41,300 |  |   | 1,300 |  |   | 3 |  % |
| Class 8 severe service trucks          | 12,100 |  |   | 10,900 |  |   | 1,200 |  |   | 11 |  % |
| Total Traditional markets              | 75,700 |  |   | 71,500 |  |   | 4,200 |  |   | 6 |  % |
| Combined Class 8 trucks                | 54,700 |  |   | 52,200 |  |   | 2,500 |  |   | 5 |  % |
| Navistar Traditional retail deliveries | 12,100 |  |   | 12,800 |  |   | (700 | ) |   | (5 | )% |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  | Three Months Ended |
|                                  | January 31, 2014 |   | October 31, 2013 |   | July 31, 2013 |   | April 30, 2013 |   | January 31, 2013 |
| Traditional Markets (U.S. and Canada) |   |  |   |   |  |   |   |   |   |   |   |
| Class 6 and 7 medium trucks           | 17 | % |   | 20 | % |   | 24 | % |   | 26 | % |   | 25 | % |
| Class 8 heavy trucks                  | 12 | % |   | 14 | % |   | 12 | % |   | 12 | % |   | 11 | % |
| Class 8 severe service trucks         | 19 | % |   | 20 | % |   | 18 | % |   | 22 | % |   | 26 | % |
| Combined Class 8 trucks               | 14 | % |   | 16 | % |   | 14 | % |   | 15 | % |   | 14 | % |

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|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |
|                                  | Three Months Ended January 31, |   |  |   |   |
| (in units)                            | 2014 |   | 2013 |   | Change |   | % Change |
| Traditional Markets (U.S. and Canada) |   |   |   |   |   |   |   |
| School buses                          | 2,300 |  |   | 1,500 |  |   | 800 |  |   | 53 |  % |
| Class 6 and 7 medium trucks           | 4,300 |  |   | 3,300 |  |   | 1,000 |  |   | 30 |  % |
| Class 8 heavy trucks                  | 5,600 |  |   | 5,800 |  |   | (200 | ) |   | (3 | )% |
| Class 8 severe service trucks         | 2,200 |  |   | 1,900 |  |   | 300 |  |   | 16 |  % |
| Total Traditional markets             | 14,400 |  |   | 12,500 |  |   | 1,900 |  |   | 15 |  % |
| Combined Class 8 trucks               | 7,800 |  |   | 7,700 |  |   | 100 |  |   | 1 |  % |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |
|                                  | January 31, 2014 |   |   |   |   |
| (in units)                            | 2014 |   | 2013 |   | Change |   | % Change |
| Traditional Markets (U.S. and Canada) |   |   |   |   |   |   |   |
| School buses                          | 3,300 |  |   | 1,700 |  |   | 1,600 |  |   | 94 | % |
| Class 6 and 7 medium trucks           | 5,600 |  |   | 3,100 |  |   | 2,500 |  |   | 81 | % |
| Class 8 heavy trucks                  | 10,100 |  |   | 7,000 |  |   | 3,100 |  |   | 44 | % |
| Class 8 severe service trucks(A)      | 2,200 |  |   | 1,800 |  |   | 400 |  |   | 22 | % |
| Total Traditional markets             | 21,200 |  |   | 13,600 |  |   | 7,600 |  |   | 56 | % |
| Combined Class 8 trucks               | 12,300 |  |   | 8,800 |  |   | 3,500 |  |   | 40 | % |

|     |                                                                                       |
|-----|---------------------------------------------------------------------------------------|
| (A) | The units in the first quarter of 2013 have been recast to exclude militarized units. |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |
|                                  | Three Months Ended January 31, |   |  |
| (in units)                            | 2014 |   | 2013 |   | Change   |   | % Change |
| Traditional Markets (U.S. and Canada) |   |   |   |   |   |   |   |
| School buses                          | 1,900 |  |   | 2,000 |  |   | (100 | ) |   | (5 | )% |
| Class 6 and 7 medium trucks      | 3,200 |  |   | 4,100 |  |   | (900 | ) |   | (22 | )% |
| Class 8 heavy trucks             | 4,500 |  |   | 4,600 |  |   | (100 | ) |   | (2 | )% |
| Class 8 severe service trucks    | 1,900 |  |   | 2,400 |  |   | (500 | ) |   | (21 | )% |
| Total Traditional markets             | 11,500 |  |   | 13,100 |  |   | (1,600 | ) |   | (12 | )% |
| Military vehicles(A)                  | — |  |   | 300 |  |   | (300 | ) |   | (100 | )% |
| Expansion markets(B)                  | 5,500 |  |   | 6,600 |  |   | (1,100 | ) |   | (17 | )% |
| Total worldwide units(C)              | 17,000 |  |   | 20,000 |  |   | (3,000 | ) |   | (15 | )% |
| Combined Class 8 trucks               | 6,400 |  |   | 7,000 |  |   | (600 | ) |   | (9 | )% |

|     |                                                                                           |
|-----|-------------------------------------------------------------------------------------------|
| (A) | The units in the first quarter of 2013 have been recast to include all militarized units. |

|     |                                                                                                                                                                |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B) | Includes chargeouts related to Blue Diamond Truck ("BDT") of 2,400 units and 2,300 units during the first quarter of 2014 and 2013,  respectively. |

|     |                                                                                                                                                                                                                                                                                |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (C) | In the first quarter of 2013, chargeouts excludes: (i) 400 RV towables units, which was related to the Bison Coach trailer business sold in October 2013, and (ii) 200 units related to Monaco and WCC, both of which have been classified as discontinued operations. |

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|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |  |  |  |
|                    | Three Months Ended January 31, |   |  |   |   |
| (in units)              | 2014 |   | 2013 |   | Change   |   | % Change   |
| OEM sales-South America | 21,700 |  |   | 25,700 |  |   | (4,000 | ) |   | (16 | )% |
| Intercompany sales      | 9,500 |  |   | 16,400 |  |   | (6,900 | ) |   | (42 | )% |
| Other OEM sales         | 1,500 |  |   | 1,900 |  |   | (400 | ) |   | (21 | )% |
| Total sales             | 32,700 |  |   | 44,000 |  |   | (11,300 | ) |   | (26 | )% |

|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |  |  |  |  |  |  |  |  |
|                                                          | As of |
| (in millions)                                                 | January 31, 2014 |   | October 31, 2013 |   | January 31, 2013 |
| Consolidated cash and cash equivalents                        | $ | 549 |  |   | $ | 755 |  |   | $ | 497 |  |
| Consolidated marketable securities                            | 630 |  |   | 830 |  |   | 771 |  |
| Consolidated cash, cash equivalents and marketable securities | $ | 1,179 |  |   | $ | 1,585 |  |   | $ | 1,268 |  |

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|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |
|                                                         | Three months ended January 31, 2014 |
| (in millions)                                                | ManufacturingOperations |   | Financial Services Operations and Adjustments |   | Condensed Consolidated Statement of Cash Flows |
| Net cash provided by (used in) operating activities          | $ | (368 | ) |   | $ | 275 |  |   | $ | (93 | ) |
| Net cash provided by (used in) investing activities          | 169 |  |   | (55 | ) |   | 114 |  |
| Net cash used in financing activities                        | (3 | ) |   | (203 | ) |   | (206 | ) |
| Effect of exchange rate changes on cash and cash equivalents | (22 | ) |   | 1 |  |   | (21 | ) |
| Increase (decrease) in cash and cash equivalents             | (224 | ) |   | 18 |  |   | (206 | ) |
| Cash and cash equivalents at beginning of the period         | 727 |  |   | 28 |  |   | 755 |  |
| Cash and cash equivalents at end of the period               | $ | 503 |  |   | $ | 46 |  |   | $ | 549 |  |

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |
|                                                              | Three months ended January 31, 2013 |
| (in millions)                                                | ManufacturingOperations |  | Financial Services Operations and Adjustments |  | Condensed Consolidated Statement of Cash Flows |
| Net cash provided by (used in) operating activities          | $ | (203 | ) |  | $ | 269 |  |  | $ | 66 |  |
| Net cash provided by (used in) investing activities          | (376 | ) |  | 29 |  |  | (347 | ) |
| Net cash used in financing activities                        | (37 | ) |  | (266 | ) |  | (303 | ) |
| Effect of exchange rate changes on cash and cash equivalents | (5 | ) |  | (1 | ) |  | (6 | ) |
| Increase (decrease) in cash and cash equivalents             | (621 | ) |  | 31 |  |  | (590 | ) |
| Cash and cash equivalents at beginning of the period         | 1,059 |  |  | 28 |  |  | 1,087 |  |
| Cash and cash equivalents at end of the period               | $ | 438 |  |  | $ | 59 |  |  | $ | 497 |  |

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Table of Contents

|         |                                           |
|---------|-------------------------------------------|
| • | Pension and Other Postretirement Benefits |

|         |                                 |
|---------|---------------------------------|
| • | Allowance for Doubtful Accounts |

|         |              |
|---------|--------------|
| • | Income Taxes |

|         |                                 |
|---------|---------------------------------|
| • | Impairment of Long-Lived Assets |

|         |          |
|---------|----------|
| • | Goodwill |

|         |                                    |
|---------|------------------------------------|
| • | Indefinite-Lived Intangible Assets |

|         |                      |
|---------|----------------------|
| • | Contingency Accruals |

|         |                                                            |
|---------|------------------------------------------------------------|
| Item 3. | Quantitative and Qualitative Disclosures about Market Risk |

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Table of Contents

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1) | We did not have sufficient controls designed to validate the completeness and accuracy of underlying data used in the determination of significant estimates and accounting transactions.  Specifically, controls were not designed to identify errors in the underlying data which was used to calculate warranty cost estimates and other significant accounting estimates and the accounting effects of significant transactions. |

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2) | We did not maintain effective controls over the presentation of income tax expense between different categories of income.  Specifically, we did not apply the exception within the intra-period tax allocation rules under applicable accounting guidance which requires, in certain circumstances, an allocation of tax expense to Other Comprehensive Income and an offsetting tax benefit to Continuing Operations, with no net impact to the total tax benefit included in total comprehensive loss. |

|    |                                                                                                                                                                                                                            |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1) | We are designing, documenting, and testing controls that are intended to validate the completeness and accuracy of the data used for warranty costs estimates and other significant accounting estimates and transactions. |

|    |                                                                                                                                                                                                                                                                                                                                  |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2) | We already have a control in place in which outside tax advisors review the tax provision each quarter. To further strengthen controls, we are enhancing the quarterly discussions with our outside tax advisors to review business developments that could affect the determination or presentation of income tax expense. |

----

Table of Contents

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

|         |                                                             |
|---------|-------------------------------------------------------------|
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |

|              |                                      |
|--------------|--------------------------------------|
| Item 3. | Defaults upon Senior Securities  |

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

|              |                   |
|--------------|-------------------|
| Item 5. | Other Information |

----

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|           |
|-----------|
|           |  |  |  |  |
| Exhibit:  |   | Description |   | Page |
|      |   |   |   |   |
| (10)      |   | Material Contracts |   | E-1 |
| (31.1)    |   | CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |   | E-2 |
| (31.2)    |   | CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |   | E-3 |
| (32.1)    |   | CEO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |   | E-4 |
| (32.2)    |   | CFO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |   | E-5 |
| (99.1)    |   | Additional Financial Information (Unaudited) |   | E-6 |
| (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 |

----

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