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

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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         |   |   |
| Item 1.   | Business |   | 5 |
| Item 1A.       | Risk Factors |   | 15 |
| Item 1B.       | Unresolved Staff Comments |   | 22 |
| Item 2.        | Properties |   | 23 |
| Item 3.        | Legal Proceedings |   | 24 |
| Item 4.        | Mine Safety Disclosures |   | 27 |
|           |   |   |   |
| PART II   |   |   |
| Item 5.   | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |   | 28 |
| Item 6.   | Selected Financial Data |   | 30 |
| Item 7.   | Management's Discussion and Analysis of Financial Condition and Results of Operations |   | 31 |
| Item 7A.       | Quantitative and Qualitative Disclosures about Market Risk |   | 65 |
| Item 8.        | Financial Statements and Supplementary Data |   | 66 |
| Item 9.   | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |   | 146 |
| Item 9A.  | Controls and Procedures |   | 146 |
| Item 9B.       | Other Information |   | 147 |
|           |   |   |   |
| PART III  |   |   |
| Item 10.       | Directors, Executive Officers, and Corporate Governance |   | 148 |
| Item 11.       | Executive Compensation |   | 148 |
| Item 12.       | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |   | 148 |
| Item 13.       | Certain Relationships and Related Transactions, and Director Independence |   | 148 |
| Item 14.       | Principal Accountant Fees and Services |   | 148 |
|           |   |   |   |
| PART IV   |   |   |
| Item 15.       | Exhibits and Financial Statement Schedules |   | 149 |
|           | Signatures |   | 150 |
|           |   |   |   |
| EXHIBIT INDEX: |   |   |
|           | Exhibit 3 |   |   |
|           | Exhibit 4 |   |   |
|           | Exhibit 10 |   |   |
|           | Exhibit 12 |   |   |
|           | Exhibit 21 |   |   |
|           | Exhibit 23.1 |   |   |
|           | Exhibit 24 |   |   |
|           | Exhibit 31.1 |   |   |
|           | Exhibit 31.2 |   |   |
|           | Exhibit 32.1 |   |   |
|           | Exhibit 32.2 |   |   |
|           | Exhibit 99.1 |   |   |

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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; |

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| • | 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; |

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

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| • | 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; |

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| • | 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; |

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| • | our anticipated capital expenditures; |

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

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| • | our expectations relating to warranty costs; |

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| • | our expectations relating to interest expense; |

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

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

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| • | trends relating to commodity prices; and |

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

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| Item 1. | Business |

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

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

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|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Engines—We design and manufacture diesel engines across the 50 through 550 horsepower range under the MaxxForce and MWM brand names. In North America, our engines are primarily used in our International branded trucks and military vehicles and IC branded buses. In Brazil, in addition to the MWM brand, we also produce mid-range diesel engines primarily under contract manufacturing arrangements for sale to original equipment manufacturers ("OEMs") in South America. We also manufacture diesel engines for the pickup truck, van, and sport-utility vehicle ("SUV") markets. |

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

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| • | Customer satisfaction—We strive to provide the highest level of customer satisfaction in the industry through improving the uptime of our products while reducing the lifetime costs of operation. |

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| • | Great products—We seek to leverage our knowledge of customer requirements to deliver products and services that meet our customers’ evolving needs. |

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| • | Quality—We are driven to be the market leader in quality, and have implemented quality improvement actions across our enterprise, targeting all stages of the product life cycle, from design, validation, and testing to manufacturing and through to customer service. |

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| • | Reduced cost—We are focused and committed to becoming a lean enterprise through eliminating non-value added activities and reducing our overall cost structure to improve profitability at all stages of the industry cycle. |

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| • | People—We facilitate organizational integration through our "One Navistar" initiative, in order to maximize the potential of our workforce and unite our efforts around common goals, resulting in a high performance organization. |

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| • | Urgency—We act with a sense of urgency across our entire organization. The "Navistar way" is embodied by our efforts to become a faster, more efficient, and more focused organization. |

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|    |                                                                                                                                                                                                                                                                                                                                                                     |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| I. | Improve quality—We moved with urgency to address quality issues in our existing product portfolio, as well as implemented new quality controls and testing systems. For example, during 2013, we logged nearly four million test miles on the International® ProStar® trucks powered by our Certified MaxxForce 13L engine (defined below). |

|     |                                                                                                                                                                                                                                                                                                                      |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| II. | Hit our launches—We achieved several milestones, which included achieving EPA certification using an existing SCR technology, getting to market products that incorporate existing SCR technology while expanding our engine options, and revamping our heavy-duty truck portfolio. Specific examples include: |

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| • | We met our first major engine strategy milestone with the launch of certain Class 8 truck models featuring the Cummins ISX15 engine, which includes their after-treatment system, in December 2012. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
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| • | In April, we met another major engine strategy milestone with the receipt of EPA certification of our MaxxForce 13L Big-Bore engines incorporating the Cummins SCR after-treatment system (the "Certified MaxxForce 13L engine"). Later in that same month, we began shipping our International® ProStar® trucks powered by our Certified MaxxForce 13L engine. Also in April, we received on-board diagnostics ("OBD") certification for all current applications. |

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| III. | Deliver on our 2013 plan—We demonstrated discipline with regards to the cash of our Manufacturing operations, where we met our guidance each quarter of 2013. We made tough decisions to reduce operating costs and made significant progress on our benchmarking study and ROIC evaluation initiative. We changed our leadership, which resulted in blending our internal expertise with an outside perspective. |

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| • | In 2012, we implemented a number of cost-reduction actions to control spending across the Company, including reductions in discretionary spending and employee headcount reductions. As a result, our operating costs, which include selling, general and administrative ("SG&A") expenses and engineering and product development costs, decreased by $330 million in 2013, compared to the prior year. Also throughout 2013, we initiated various additional cost-reduction actions that were identified by our benchmarking study. Specifically in September, we leveraged efficiencies identified through redesigning our organizational structure and began implementing new cost-reduction initiatives, including an enterprise-wide reduction-in-force, which we expect will contribute an estimated $50 million to $60 million of annual savings beginning in 2014. |

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| • | The ROIC evaluation initiative drove our decisions to divest: (i) our interests in Mahindra Navistar Automotives Ltd. and Mahindra-Navistar Engines Private Ltd. (collectively, the "Mahindra Joint Ventures") in February, (ii) the Workhorse Custom Chassis ("WCC") business in March, (iii) substantially all of our interest in certain operations of the Monaco RV business in May, and (iv) the Bison Coach trailer manufacturing business ("Bison Coach") in October. We also entered into an agreement to sublease a portion of our manufacturing facility in Cherokee, Alabama. Additionally, we began rationalizing certain engineering and product development programs, due in part to changes in our engine strategy and renewed focus on our core business of the North American truck and bus markets. |

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| • | In connection with our renewed focus on the North America market, we have realigned our leadership and management structure around functional expertise. We believe this realignment will result in better execution of our strategies by facilitating faster decision making, driving greater accountability and transparency, creating better alignment towards common objectives, and reducing our operating costs. As a result of the progress we have made with this realignment, we determined our reporting segments changed in the fourth quarter of 2013. |

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| IV. | Build sales momentum—In our Traditional markets, we have seen a strong response to our new truck offerings. As of October 31, 2013, our backlog of unfilled truck orders in our Traditional markets increased by 26% compared to October 31, 2012. We have seen an increase in our order share in the second half of 2013 compared to the first half of the year. We believe this momentum will continue to be fueled by offering the Cummins ISB 6.7 liter engine (the "Cummins ISB") in our International® DuraStar® medium-duty trucks and IC Bus™ CE Series school buses. Initial production of DuraStar® and CE Series school buses, incorporating the Cummins ISB, is expected to begin during our first quarter of 2014. |

|    |                                                                                                                                                                                                                                                                                                                                         |
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| I. | Lead in vehicle uptime—Quality remains at the forefront of our customer-focused approach. We believe our quality will continue to improve and our trucks will be market leaders in uptime and fuel economy with the lowest cost of ownership. Going forward, we believe we are building the best trucks in our Company's history. |

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| II. | Lean enterprise—We are utilizing a customer-focused redesign of our trucks to find new ways to reduce costs and add value for our customers. We are eliminating waste and driving functional excellence to achieve continuous improvement. We expect these steps will build customer satisfaction, lower our break-even point, and drive profitability at all points in the cycle. |

|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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| III. | Financial growth—We expect the increases seen in our orders and backlogs in our Traditional markets will translate to increased volumes and market share in the future. Due to our focus on reducing costs through manufacturing optimization, eliminating waste, and addressing the opportunities identified by benchmarking studies, we expect to lower manufacturing costs, increase capacity utilization and productivity, and achieve a lower cost structure. We also expect to continue to enhance our liquidity and profitability. As a result of these actions, we expect to improve our financial performance and achieve our long-term financial goals. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
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| IV. | Profitable improvements in market share—We expect the sales momentum that began in late 2013 to continue with new and improved products, volume growth, and effective pricing. We intend to move steadily closer towards having a full-product portfolio with the SCR after-treatment technology. We expect to continue our product differentiation with enhanced features and options that will benefit our customers and help drive profitable market share improvements. |

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|                   |  |  |  |  |  |  |
|              | Units |   | Value |
| As of October 31: |   |   | (in billions) |
| 2013              | 24,000 |  |   | $ | 1.8 |  |
| 2012              | 25,000 |  |   | 1.8 |  |

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|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |
|                              | As of October 31,   |
|                              | 2013 |   | 2012 |   | 2011 |
| Employees worldwide:              |   |   |   |   |   |
| Total active employees            | 14,800 |  |   | 16,900 |  |   | 19,000 |  |
| Total inactive employees(A)  | 1,700 |  |   | 1,600 |  |   | 1,800 |  |
| Total employees worldwide         | 16,500 |  |   | 18,500 |  |   | 20,800 |  |
| Total active union employees:     |   |   |   |   |   |
| Total UAW                         | 2,300 |  |   | 1,700 |  |   | 2,000 |  |
| Total other unions                | 2,800 |  |   | 2,500 |  |   | 3,900 |  |

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| (A) | Employees are considered inactive in certain situations including disability leave, leave of absence, layoffs, and work stoppages. Included within inactive employees are approximately 500 employees, 600 employees, and 1,000 employees as of October 31, 2013, 2012, and 2011, respectively, represented by the National Automobile, Aerospace and Agricultural Implement Workers of Canada ("CAW") at our Chatham, Ontario heavy truck plant related to the expiration of the CAW contract on June 30, 2009. In 2011, the Company committed to close this facility due to an inability to reach a collective bargaining agreement with the CAW. For more information, see Note 3, Restructurings and Impairments, to the accompanying consolidated financial statements. |

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|----------------------|
|                      |  |  |  |  |
| Name                 |   | Age |   | Position with the Company |
|                 |   |   |   |   |
| Troy A. Clarke       |   | 58 |   | President and Chief Executive Officer and Director |
| Walter G. Borst      |   | 52 |   | Executive Vice President and Chief Financial Officer |
| Jack Allen           |   | 56 |   | Executive Vice President and Chief Operating Officer |
| Eric Tech            |   | 50 |   | Senior Vice President, Strategy and Planning, & President, Global and Specialty Business |
| Steven K. Covey      |   | 62 |   | Senior Vice President, Chief Ethics Officer and General Counsel |
| James M. Moran       |   | 48 |   | Senior Vice President and Treasurer |
| Richard C. Tarapchak |   | 48 |   | Senior Vice President and Corporate Controller |
| Curt A. Kramer       |   | 45 |   | Corporate Secretary |
| Gregory W. Elliott   |   | 52 |   | Senior Vice President, Human Resources and Administration |

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| Item 1A. | Risk Factors |

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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| • | currency exchange rate risk; and |

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

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

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| Item 2. | Properties  |

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| Item 4. | Mine Safety Disclosures  |

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

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Year Ended October 31, 2013 |   | High |   | Low |   | Year Ended October 31, 2012 |   | High |   |     Low     |
| 1st Quarter                 |   | $ | 26.90 |  |   | $ | 18.78 |  |   | 1st Quarter |   | $ | 45.44 |  |   | $ | 33.74 |  |
| 2nd Quarter                 |   | 37.65 |  |   | 23.25 |  |   | 2nd Quarter |   | 48.18 |  |   | 32.68 |  |
| 3rd Quarter                 |   | 38.81 |  |   | 25.56 |  |   | 3rd Quarter |   | 35.25 |  |   | 20.21 |  |
| 4th Quarter                 |   | 39.79 |  |   | 31.88 |  |   | 4th Quarter(A) |   | 26.48 |  |   | 18.17 |  |

|     |                                                                                                                                                                                                                                                           |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | In October 2012, the Company issued 10.67 million shares of common stock at the public offering price of $18.75 per share. For additional information, see Note 17, Stockholders' Deficit, to the accompanying consolidated financial statements. |

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|                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                        | As of October 31, |
|                                                        | 2008 |   | 2009 |   | 2010 |   | 2011 |   | 2012 |   | 2013 |
| Navistar International Corporation                          | $ | 100 |  |   | $ | 110 |  |   | $ | 160 |  |   | $ | 140 |  |   | $ | 62 |  |   | $ | 68 |  |
| S&P 500 Index - Total Returns                           | 100 |  |   | 110 |  |   | 128 |  |   | 138 |  |   | 159 |  |   | 204 |  |
| S&P Construction, Farm Machinery, and Heavy Truck Index | 100 |  |   | 138 |  |   | 219 |  |   | 241 |  |   | 157 |  |   | 172 |  |

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

|                                                                                 |
|---------------------------------------------------------------------------------|
|                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                            | As of and for the Years Ended October 31, |
| (in millions, except per share data)                                            | 2013 |   | 2012(A) |   | 2011(B) |   | 2010 |   | 2009 |
| RESULTS OF OPERATIONS DATA                                                      |   |   |   |   |   |   |   |   |   |
| Sales and revenues, net                                                         | $ | 10,775 |  |   | $ | 12,695 |  |   | $ | 13,641 |  |   | $ | 11,867 |  |   | $ | 11,474 |  |
| Income (loss) from continuing operations before taxes                           | $ | (974 | ) |   | $ | (1,111 | ) |   | $ | 435 |  |   | $ | 338 |  |   | $ | 441 |  |
| Income tax benefit (expense)                                                    | 171 |  |   | (1,780 | ) |   | 1,417 |  |   | (23 | ) |   | (37 | ) |
| Income (loss) from continuing operations                                        | (803 | ) |   | (2,891 | ) |   | 1,852 |  |   | 315 |  |   | 404 |  |
| Loss from discontinued operations, net of tax                                   | (41 | ) |   | (71 | ) |   | (74 | ) |   | (48 | ) |   | (59 | ) |
| Net income (loss)                                                               | (844 | ) |   | (2,962 | ) |   | 1,778 |  |   | 267 |  |   | 345 |  |
| Less: Net income attributable to non-controlling interests                      | 54 |  |   | 48 |  |   | 55 |  |   | 44 |  |   | 25 |  |
| Net income (loss) attributable to Navistar International Corporation            | $ | (898 | ) |   | $ | (3,010 | ) |   | $ | 1,723 |  |   | $ | 223 |  |   | $ | 320 |  |
| Amounts attributable to Navistar International Corporation common shareholders: |   |   |   |   |   |   |
| Income (loss) from continuing operations, net of tax                            | $ | (857 | ) |   | $ | (2,939 | ) |   | $ | 1,797 |  |   | $ | 271 |  |   | $ | 379 |  |
| Loss from discontinued operations, net of tax                                   | (41 | ) |   | (71 | ) |   | (74 | ) |   | (48 | ) |   | (59 | ) |
| Net income (loss)                                                               | $ | (898 | ) |   | $ | (3,010 | ) |   | $ | 1,723 |  |   | $ | 223 |  |   | $ | 320 |  |
| Basic earnings (loss) per share:                                                |   |   |   |   |   |   |   |  |   |   |  |
| Continuing operations                                                           | $ | (10.66 | ) |   | $ | (42.53 | ) |   | $ | 24.68 |  |   | $ | 3.78 |  |   | $ | 5.34 |  |
| Discontinued operations                                                         | (0.51 | ) |   | (1.03 | ) |   | (1.02 | ) |   | (0.67 | ) |   | (0.83 | ) |
| Net income (loss)                                                               | $ | (11.17 | ) |   | $ | (43.56 | ) |   | $ | 23.66 |  |   | $ | 3.11 |  |   | $ | 4.51 |  |
| Diluted earnings (loss) per share:                                              |   |   |   |   |   |   |   |   |   |
| Continuing operations                                                           | $ | (10.66 | ) |   | $ | (42.53 | ) |   | $ | 23.61 |  |   | $ | 3.70 |  |   | $ | 5.28 |  |
| Discontinued operations                                                         | (0.51 | ) |   | (1.03 | ) |   | (0.97 | ) |   | (0.65 | ) |   | (0.82 | ) |
| Net income (loss)                                                               | $ | (11.17 | ) |   | $ | (43.56 | ) |   | $ | 22.64 |  |   | $ | 3.05 |  |   | $ | 4.46 |  |
| Weighted average number of shares outstanding:                                  |   |   |   |   |   |   |   |  |   |   |  |
| Basic                                                                           | 80.4 |  |   | 69.1 |  |   | 72.8 |  |   | 71.7 |  |   | 71.0 |  |
| Diluted                                                                         | 80.4 |  |   | 69.1 |  |   | 76.1 |  |   | 73.2 |  |   | 71.8 |  |
| BALANCE SHEET DATA                                                              |   |   |   |   |   |  |   |   |  |   |   |  |
| Total assets                                                                    | $ | 8,315 |  |   | $ | 9,102 |  |   | $ | 12,291 |  |   | $ | 9,730 |  |   | $ | 10,028 |  |
| Long-term debt:(C)                                                              |   |   |   |   |   |   |   |   |   |
| Manufacturing operations                                                        | $ | 2,561 |  |   | $ | 2,733 |  |   | $ | 1,881 |  |   | $ | 1,841 |  |   | $ | 1,670 |  |
| Financial services operations                                                   | 1,361 |  |   | 833 |  |   | 1,596 |  |   | 2,397 |  |   | 2,486 |  |
| Total long-term debt                                                            | $ | 3,922 |  |   | $ | 3,566 |  |   | $ | 3,477 |  |   | $ | 4,238 |  |   | $ | 4,156 |  |
| Redeemable equity securities                                                    | $ | 4 |  |   | $ | 5 |  |   | $ | 5 |  |   | $ | 8 |  |   | $ | 13 |  |

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

|    |                                                                                                                                                                                                                                                                                                                                                                     |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| I. | Improve quality—We moved with urgency to address quality issues in our existing product portfolio, as well as implemented new quality controls and testing systems. For example, during 2013, we logged nearly four million test miles on the International® ProStar® trucks powered by our Certified MaxxForce 13L engine (defined below). |

|     |                                                                                                                                                                                                                                                                                                                      |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| II. | Hit our launches—We achieved several milestones, which included achieving EPA certification using an existing SCR technology, getting to market products that incorporate existing SCR technology while expanding our engine options, and revamping our heavy-duty truck portfolio. Specific examples include: |

|         |                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We met our first major engine strategy milestone with the launch of certain Class 8 truck models featuring the Cummins ISX15 engine, which includes their after-treatment system, in December 2012. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In April, we met another major engine strategy milestone with the receipt of EPA certification of our MaxxForce 13L Big-Bore engines incorporating the Cummins SCR after-treatment system (the "Certified MaxxForce 13L engine"). Later in that same month, we began shipping our International® ProStar® trucks powered by our Certified MaxxForce 13L engine. Also in April, we received on-board diagnostics ("OBD") certification for all current applications. |

|      |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| III. | Deliver on our 2013 plan—We demonstrated discipline with regards to the cash of our Manufacturing operations, where we met our guidance each quarter of 2013. We made tough decisions to reduce operating costs and made significant progress on our benchmarking study and ROIC evaluation initiative. We changed our leadership, which resulted in blending our internal expertise with an outside perspective. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In 2012, we implemented a number of cost-reduction actions to control spending across the Company, including reductions in discretionary spending and employee headcount reductions. As a result, our operating costs, which include selling, general and administrative ("SG&A") expenses and engineering and product development costs, decreased by $330 million in 2013, compared to the prior year. Also throughout 2013, we initiated various additional cost-reduction actions that were identified by our benchmarking study. Specifically in September, we leveraged efficiencies identified through redesigning our organizational structure and began implementing new cost-reduction |

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|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The ROIC evaluation initiative drove our decisions to divest: (i) our interests in Mahindra Navistar Automotives Ltd. and Mahindra-Navistar Engines Private Ltd. (collectively, the "Mahindra Joint Ventures") in February, (ii) the Workhorse Custom Chassis ("WCC") business in March, (iii) substantially all of our interest in certain operations of the Monaco RV business in May, and (iv) the Bison Coach trailer manufacturing business ("Bison Coach") in October. We also entered into an agreement to sublease a portion of our manufacturing facility in Cherokee, Alabama. Additionally, we began rationalizing certain engineering and product development programs due in part to changes in our engine strategy and renewed focus on our core business of the North American truck and bus markets. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In connection with our renewed focus on the North America market, we have realigned our leadership and management structure around functional expertise. We believe this realignment will result in better execution of our strategies by facilitating faster decision making, driving greater accountability and transparency, creating better alignment towards common objectives, and reducing our operating costs. As a result of the progress we have made with this realignment, we determined our reporting segments changed in the fourth quarter of 2013. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| IV. | Build sales momentum—In our Traditional markets, we have seen a strong response to our new truck offerings. As of October 31, 2013, our backlog of unfilled truck orders in our Traditional markets increased by 26% compared to October 31, 2012. We have seen an increase in our order share in the second half of 2013 compared to the first half of the year. We believe this momentum will continue to be fueled by offering the Cummins ISB 6.7 liter engine (the "Cummins ISB") in our International® DuraStar® medium-duty trucks and IC Bus™ CE Series school buses. Initial production of DuraStar® and CE Series school buses, incorporating the Cummins ISB, is expected to begin during our first quarter of 2014. |

|    |                                                                                                                                                                                                                                                                                                                                         |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| I. | Lead in vehicle uptime—Quality remains at the forefront of our customer-focused approach. We believe our quality will continue to improve and our trucks will be market leaders in uptime and fuel economy with the lowest cost of ownership. Going forward, we believe we are building the best trucks in our Company's history. |

|     |                                                                                                                                                                                                                                                                                                                                                                                          |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| II. | Lean enterprise—We are utilizing a customer-focused redesign of our trucks to find new ways to reduce costs and add value for our customers. We are eliminating waste and driving functional excellence to achieve continuous improvement. We expect these steps will build customer satisfaction, lower our break-even point, and drive profitability at all points in the cycle. |

|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| III. | Financial growth—We expect the increases seen in our orders and backlogs in our Traditional markets will translate to increased volumes and market share in the future. Due to our focus on reducing costs through manufacturing optimization, eliminating waste, and addressing the opportunities identified by benchmarking studies, we expect to lower manufacturing costs, increase capacity utilization and productivity, and achieve a lower cost structure. We also expect to continue to enhance our liquidity and profitability. As a result of these actions, we expect to improve our financial performance and achieve our long-term financial goals. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| IV. | Profitable improvements in market share—We expect the sales momentum that began in late 2013 to continue with new and improved products, volume growth, and effective pricing. We intend to move steadily closer towards having a full-product portfolio with the SCR after-treatment technology. We expect to continue our product differentiation with enhanced features and options that will benefit our customers and help drive profitable market share improvements. |

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|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Segment Realignment—In connection with our renewed focus on our primary markets, we have realigned our management and reporting structure around functional expertise. We believe this realignment will result in better execution of our strategies by facilitating faster decision making, driving greater accountability and transparency, creating better alignment towards common objectives and reducing our operating costs. With the completion of changes in the fourth quarter of 2013, our reporting segments changed to the following segments, which reflect how our new Chief Operating Decision Maker ("CODM") assesses the performance of our operating segments and makes decisions about resource allocations: |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | North America Truck—This segment manufactures and distributes Class 4 through 8 trucks, buses, and military vehicles under the International and 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. |

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|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | North America Parts—This 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 October 31, 2013, 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. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | Global Operations—This 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. |

|         |                                                                                                                                                                                                                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | Financial Services—This 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. |

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

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Traditional Truck Market—The Traditional truck markets in which we compete are typically cyclical in nature and are strongly influenced by macro-economic factors such as industrial production, demand for durable goods, capital spending, oil prices and consumer confidence. We anticipate the Traditional truck industry retail deliveries will be in the range of 300,000 units to 335,000 units for 2014. We expect benefits from further improvements in our Traditional volumes as the truck industry continues to recover from the historic lows experienced in the recent past. According to ACT Research, the average age of truck fleets still remains high. We anticipate higher sales in 2014, resulting from truck replacement as our customers refresh aging fleets. We also expect demand for trucks to increase as freight volumes and rates continue to improve as the U.S. economy recovers. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Worldwide Engine Unit Sales—Our worldwide engine unit sales were 185,400 units in 2013, 199,900 units in 2012, and 243,600 units in 2011. Our 2013 and 2012 worldwide engine unit sales were primarily to external customers in South America and our North America Truck segment. Principally in our South America operations, we also made certain other OEM sales for the contract manufacturing of engines for commercial, consumer, and specialty vehicle products. We expect our South American operations to continue to be a key contributor to the Global Operations segment and expect improvements from our OEM sales for commercial, consumer, and specialty vehicle products. In North America during 2013, we integrated the Cummins’ urea-based after-treatment systems with our MaxxForce engines. Also in May 2013, our engine joint venture with JAC was fully capitalized and became operational. We continued to make investments in engineering and product development for our proprietary engines for product innovations, cost-reductions, and fuel economy. Our markets are impacted by consumer demand for products that use our engines, as well as macro-economic factors such as oil prices and construction activity. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Military Sales—Our U.S. military sales were $541 million in 2013, compared to $1.0 billion in 2012 and $1.8 billion in 2011. The 2013 and 2012 military sales primarily consisted of upgrading Mine Resistant Ambush Protected ("MRAP") vehicles with our rolling chassis solution and retrofit kits. In comparison, our 2011 sales consisted of delivering, servicing, and maintaining MRAP vehicles, lower-cost militarized commercial trucks, and sales of parts and services. In 2014, we expect our U.S. military sales to continue to decline. Contributing to the decline are the budgetary constraints experienced by the U.S. government. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Warranty Costs—Emissions regulations in the U.S. and Canada have resulted in rapid product development cycles, driving significant changes from previous engine models. In 2010, we introduced changes to our engine line-up in response to 2010 emissions regulations. Component complexity and other related costs associated with meeting emissions standards have contributed to higher repair costs that exceeded those that we have historically experienced. Historically, warranty claims experience for launch-year engines has been higher compared to the prior model-year engines; however, over time we have been able to refine both the design and manufacturing process to reduce both the volume and the severity of warranty claims. While we continue to improve the design and manufacturing of our engines to reduce the volume and severity of warranty claims, we have continued to experience higher warranty costs than expected which has contributed to significantly higher warranty charges for current and pre-existing warranties, including charges for extended service contracts, in 2012. We recognized adjustments to pre-existing warranties of $404 million in both 2013 and 2012, compared |

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|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Operating Cost Saving Initiatives—We continue to evaluate opportunities to restructure our business and rationalize our Manufacturing operations in an effort to optimize our cost structure. We have implemented a number of cost saving initiatives, including the consolidation of our North America Truck and Engine engineering operations, the relocation of our world headquarters to Lisle, Illinois, continued reductions in discretionary spending and employee headcount reductions. As a result, our operating costs, which include SG&A expenses and engineering and product development costs, decreased by $330 million in 2013, compared to the prior year. In the fourth quarter of 2013, we leveraged efficiencies identified through redesigning our organizational structure and began implementing new cost-reduction initiatives, including an enterprise-wide reduction-in-force, which we expect will contribute an estimated additional $50 million to $60 million of annual savings beginning in 2014. |

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

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

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Impact of Government Regulation—As a manufacturer of trucks and engines, we continue to face significant governmental regulation of our products, especially in the areas of environmental and safety matters. We are also subject to various noise standards imposed by federal, state, and local regulations. Government regulation related to climate change is under consideration at the U.S. federal and state levels. Because our products use fossil fuels, they may be impacted indirectly due to regulation, such as a cap and trade program, affecting the cost of fuels. In 2010, the initial phase-in of OBD requirements commenced for the initial family of truck engines and those products have been certified. The phase-in for the remaining engine families occurred in 2013. In 2011, the EPA and NHTSA issued final rules setting greenhouse gas emissions and fuel economy standards for medium and heavy-duty engines and vehicles, which begin to apply in 2014 and are fully implemented in model year 2017. The next phase of federal greenhouse gas emission and fuel economy rules are currently under discussion and anticipated for the 2020 model year. California is also in the initial stages of considering greenhouse gas emission rules for heavy duty vehicles. The Company plans to comply with these rules through the use of our existing technologies combined with certain third-party components, as well as the implementation of emerging technologies as they become available. As a result, the Company expects to incur additional engineering and product development expenses to comply with these rules. |

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|                                                            |
|------------------------------------------------------------|
|                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except per share data and % change)          | 2013 |   | 2012 |   | Change |   | % Change |
| Sales and revenues, net                                    | $ | 10,775 |  |   | $ | 12,695 |  |   | $ | (1,920 | ) |   | (15 | )% |
| Costs of products sold                                     | 9,761 |  |   | 11,401 |  |   | (1,640 | ) |   | (14 | )% |
| Restructuring charges                                      | 25 |  |   | 107 |  |   | (82 | ) |   | (77 | )% |
| Asset impairment charges                                   | 97 |  |   | 16 |  |   | 81 |  |   | 506 |  % |
| Selling, general and administrative expenses               | 1,215 |  |   | 1,419 |  |   | (204 | ) |   | (14 | )% |
| Engineering and product development costs                  | 406 |  |   | 532 |  |   | (126 | ) |   | (24 | )% |
| Interest expense                                           | 321 |  |   | 259 |  |   | 62 |  |   | 24 |  % |
| Other expense (income), net                                | (65 | ) |   | 43 |  |   | (108 | ) |   | N.M. |  |
| Total costs and expenses                                   | 11,760 |  |   | 13,777 |  |   | (2,017 | ) |   | (15 | )% |
| Equity in income (loss) of non-consolidated affiliates     | 11 |  |   | (29 | ) |   | 40 |  |   | N.M. |  |
| Loss from continuing operations before income taxes        | (974 | ) |   | (1,111 | ) |   | 137 |  |   | (12 | )% |
| Income tax benefit (expense)                               | 171 |  |   | (1,780 | ) |   | 1,951 |  |   | (110 | )% |
| Loss from continuing operations                            | (803 | ) |   | (2,891 | ) |   | 2,088 |  |   | (72 | )% |
| Less: Net income attributable to non-controlling interests | 54 |  |   | 48 |  |   | 6 |  |   | 13 |  % |
| Loss from continuing operations(A)                         | (857 | ) |   | (2,939 | ) |   | 2,082 |  |   | (71 | )% |
| Loss from discontinued operations, net of tax              | (41 | ) |   | (71 | ) |   | 30 |  |   | (42 | )% |
| Net loss(A)                                                | $ | (898 | ) |   | $ | (3,010 | ) |   | $ | 2,112 |  |   | (70 | )% |
|                                                       |   |   |   |   |   |   |   |
| Diluted loss per share:(A)                                 |   |   |   |   |   |   |   |
| Continuing operations                                      | $ | (10.66 | ) |   | $ | (42.53 | ) |   | $ | 31.87 |  |   | (75 | )% |
| Discontinued operations                                    | (0.51 | ) |   | (1.03 | ) |   | 0.52 |  |   | (50 | )% |
|                                                       | $ | (11.17 | ) |   | $ | (43.56 | ) |   | $ | 32.39 |  |   | (74 | )% |
| Diluted weighted average shares outstanding                | 80.4 |  |   | 69.1 |  |   | 11.3 |  |   | 16 |  % |

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

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

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change) | 2013 |   | 2012 |   | Change |   | % Change |
| North America Truck            | $ | 6,798 |  |   | $ | 8,388 |  |   | $ | (1,590 | ) |   | (19 | )% |
| North America Parts            | 2,615 |  |   | 2,621 |  |   | (6 | ) |   | — |  % |
| Global Operations              | 1,825 |  |   | 2,210 |  |   | (385 | ) |   | (17 | )% |
| Financial Services             | 233 |  |   | 259 |  |   | (26 | ) |   | (10 | )% |
| Corporate and Eliminations     | (696 | ) |   | (783 | ) |   | 87 |  |   | (11 | )% |
| Total                          | $ | 10,775 |  |   | $ | 12,695 |  |   | $ | (1,920 | ) |   | (15 | )% |

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|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change)         | 2013 |   | 2012 |   | Change |   | %Change   |
| North America Truck segment sales, net | $ | 6,798 |  |   | $ | 8,388 |  |   | $ | (1,590 | ) |   | (19 | )% |
| North America Truck segment loss       | (902 | ) |   | (736 | ) |   | (166 | ) |   | 23 |  % |

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|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change)         | 2013 |   | 2012 |   | Change |   | %Change   |
| North America Parts segment sales, net | $ | 2,615 |  |   | $ | 2,621 |  |   | $ | (6 | ) |   | — |  % |
| North America Parts segment profit     | 476 |  |   | 343 |  |   | 133 |  |   | 39 |  % |

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change)       | 2013 |   | 2012 |   | Change |   | %Change   |
| Global Operations segment sales, net | $ | 1,825 |  |   | $ | 2,210 |  |   | $ | (385 | ) |   | (17 | )% |
| Global Operations segment loss       | (6 | ) |   | (168 | ) |   | 162 |  |   | (96 | )% |

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|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change)           | 2013 |   | 2012 |   | Change |   | %Change   |
| Financial Services segment revenues, net | $ | 233 |  |   | $ | 259 |  |   | $ | (26 | ) |   | (10 | )% |
| Financial Services segment profit        | 81 |  |   | 91 |  |   | (10 | ) |   | (11 | )% |

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|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except per share data and % change)            | 2012 |   | 2011 |   | Change |   | %Change |
| Sales and revenues, net                                      | $ | 12,695 |  |   | $ | 13,641 |  |   | $ | (946 | ) |   | (7 | )% |
| Costs of products sold                                       | 11,401 |  |   | 10,937 |  |   | 464 |  |   | 4 |  % |
| Restructuring charges (benefit)                              | 107 |  |   | 82 |  |   | 25 |  |   | 30 |  % |
| Asset impairment charges                                     | 16 |  |   | 13 |  |   | 3 |  |   | 23 |  % |
| Selling, general and administrative expenses                 | 1,419 |  |   | 1,407 |  |   | 12 |  |   | 1 |  % |
| Engineering and product development costs                    | 532 |  |   | 520 |  |   | 12 |  |   | 2 |  % |
| Interest expense                                             | 259 |  |   | 247 |  |   | 12 |  |   | 5 |  % |
| Other income (expense), net                                  | 43 |  |   | (71 | ) |   | 114 |  |   | N.M. |  |
| Total costs and expenses                                     | 13,777 |  |   | 13,135 |  |   | 642 |  |   | 5 |  % |
| Equity in loss of non-consolidated affiliates                | (29 | ) |   | (71 | ) |   | 42 |  |   | (59 | )% |
| Income (loss) from continuing operations before income taxes | (1,111 | ) |   | 435 |  |   | (1,546 | ) |   | N.M. |  |
| Income tax benefit (expense)                                 | (1,780 | ) |   | 1,417 |  |   | (3,197 | ) |   | N.M. |  |
| Income (loss) from continuing operations                     | (2,891 | ) |   | 1,852 |  |   | (4,743 | ) |   | N.M. |  |
| Less: Net income attributable to non-controlling interests   | 48 |  |   | 55 |  |   | (7 | ) |   | (13 | )% |
| Income (loss) from continuing operations                     | (2,939 | ) | 55 |  | 1,797 |  |   | (4,736 | ) |   | N.M. |  |
| Loss from discontinued operations, net of tax                | (71 | ) |   | (74 | ) |   | 3 |  |   | (4 | )% |
| Net income (loss)(A)                                         | $ | (3,010 | ) | $ | 55 |  | $ | 1,723 |  |   | $ | (4,733 | ) |   | N.M. |  |
| Diluted earnings (loss) per share:(A)                        |   |   |   |   |   |   |   |
| Continuing operations                                        | $ | (42.53 | ) |   | $ | 23.61 |  |   | $ | (66.14 | ) |   | N.M. |  |
| Discontinued operations                                      | (1.03 | ) |   | (0.97 | ) |   | (0.06 | ) |   | 6 |  % |
|                                                         | $ | (43.56 | ) |   | $ | 22.64 |  |   | $ | (66.20 | ) |   | N.M. |  |
| Diluted weighted average shares outstanding                  | 69.1 |  |   | 76.1 |  |   | (7.0 | ) |   | (9 | )% |

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

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

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change) | 2012 |   | 2011 |   | Change |   | %Change |
| North America Truck            | $ | 8,388 |  |   | $ | 9,163 |  |   | $ | (775 | ) |   | (8 | )% |
| North America Parts            | 2,621 |  |   | 2,740 |  |   | (119 | ) |   | (4 | )% |
| Global Operations              | 2,210 |  |   | 2,430 |  |   | (220 | ) |   | (9 | )% |
| Financial Services             | 259 |  |   | 291 |  |   | (32 | ) |   | (11 | )% |
| Corporate and Eliminations     | (783 | ) |   | (983 | ) |   | 200 |  |   | (20 | )% |
| Total                          | $ | 12,695 |  |   | $ | 13,641 |  |   | $ | (946 | ) |   | (7 | )% |

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|                                                          |
|----------------------------------------------------------|
|                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change)                           | 2012 |   | 2011 |   | Change |   | %Change |
| Engineering integration costs                            | $ | 23 |  |   | $ | 29 |  |   | $ | (6 | ) |   | (21 | )% |
| Restructuring of North American manufacturing operations | 6 |  |   | 48 |  |   | (42 | ) |   | (88 | )% |
| Voluntary separation program and reduction-in-force      | 73 |  |   | — |  |   | 73 |  |   | N.M. |  |
| Other                                                    | 5 |  |   | 5 |  |   | — |  |   | — |  % |
| Restructuring charges                                    | $ | 107 |  |   | $ | 82 |  |   | $ | 25 |  |   | 30 |  % |

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Table of Contents

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change)            | 2012 |   | 2011 |   | Change |   | %Change |
| North America Truck segment sales, net    | $ | 8,388 |  |   | $ | 9,163 |  |   | $ | (775 | ) |   | (8 | )% |
| North America Truck segment profit (loss) | (736 | ) |   | 344 |  |   | (1,080 | ) |   | N.M. |  |

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|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change)                              | 2012 |   | 2011 |   | Change |   | %Change |
| Engineering integration costs(A)                            | $ | 42 |  |   | $ | 51 |  |   | $ | (9 | ) |   | (18 | )% |
| Voluntary separation program and reduction-in-force(A)      | 40 |  |   | — |  |   | 40 |  |   | N.M. |  |
| Restructuring of North American manufacturing operations(A) | 34 |  |   | 59 |  |   | (25 | ) |   | (42 | )% |
| Non-conformance penalties(B)                                | 34 |  |   | — |  |   | 34 |  |   | N.M. |  |
| Charges incurred by the North America Truck segment         | $ | 150 |  |   | $ | 110 |  |   | $ | 40 |  |   | 36 |  % |

|     |                                                                                                                          |
|-----|--------------------------------------------------------------------------------------------------------------------------|
| (A) | For more information, see Note 3, Restructurings and Impairments, to the accompanying consolidated financial statements. |

|     |                                                                                                                                  |
|-----|----------------------------------------------------------------------------------------------------------------------------------|
| (B) | For more information, see Note 15. Commitments and Contingencies, to the accompanying consolidated financial statements. |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change)         | 2012 |   | 2011 |   | Change |   | %Change |
| North America Parts segment sales, net | $ | 2,621 |  |   | $ | 2,740 |  |   | $ | (119 | ) |   | (4 | )% |
| North America Parts segment profit     | 343 |  |   | 397 |  |   | (54 | ) |   | (14 | )% |

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|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change)          | 2012 |   | 2011 |   | Change |   | %Change |
| Global Operations segment sales, net    | $ | 2,210 |  |   | $ | 2,430 |  |   | $ | (220 | ) |   | (9 | )% |
| Global Operations segment profit (loss) | (168 | ) |   | 72 |  |   | (240 | ) |   | N.M. |  |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change)           | 2012 |   | 2011 |   | Change |   | %Change |
| Financial Services segment revenues, net | $ | 259 |  |   | $ | 291 |  |   | $ | (32 | ) |   | (11 | )% |
| Financial Services segment profit        | 91 |  |   | 129 |  |   | (38 | ) |   | (29 | )% |

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Table of Contents

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                      |   |   |   |   |   |   | 2013 vs 2012 |   | 2012 vs 2011 |
| (in units)                                | 2013 |   | 2012 |   | 2011 |   | Change   |   | % Change   |   | Change   |   | % Change |
| Traditional Markets (U.S. and Canada)     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| School buses(A)                           | 26,600 |  |   | 25,000 |  |   | 24,100 |  |   | 1,600 |  |   | 6 |  % |   | 900 |  |   | 4 | % |
| Class 6 and 7 medium trucks               | 64,000 |  |   | 64,400 |  |   | 59,200 |  |   | (400 | ) |   | (1 | )% |   | 5,200 |  |   | 9 | % |
| Class 8 heavy trucks                      | 162,700 |  |   | 187,000 |  |   | 139,700 |  |   | (24,300 | ) |   | (13 | )% |   | 47,300 |  |   | 34 | % |
| Class 8 severe service trucks(B)          | 48,000 |  |   | 43,100 |  |   | 37,300 |  |   | 4,900 |  |   | 11 |  % |   | 5,800 |  |   | 16 | % |
| Total Traditional markets                 | 301,300 |  |   | 319,500 |  |   | 260,300 |  |   | (18,200 | ) |   | (6 | )% |   | 59,200 |  |   | 23 | % |
| Combined Class 8 trucks                   | 210,700 |  |   | 230,100 |  |   | 177,000 |  |   | (19,400 | ) |   | (8 | )% |   | 53,100 |  |   | 30 | % |
| Navistar Traditional retail deliveries(C) | 55,500 |  |   | 71,600 |  |   | 69,000 |  |   | (16,100 | ) |   | (22 | )% |   | 2,600 |  |   | 4 | % |

|     |                                                                                                                                                                                                                                                                                                                                                               |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Beginning in the first quarter of 2013, the Company began using bus registration data from Polk to report U.S. and Canada School bus retail market deliveries. Additionally, the School bus retail market deliveries include buses classified as B, C, and D and are being reported on a one-month lag. These changes are reflected in all periods presented. |

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

|     |                                                                                                                          |
|-----|--------------------------------------------------------------------------------------------------------------------------|
| (C) | Periods presented have been recast to exclude militarized commercial units and units related to discontinued operations. |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |
|                                  | 2013 |   | 2012 |   | 2011 |
| Traditional Markets (U.S. and Canada) |   |  |   |   |  |   |   |
| School buses(A)                       | 37 | % |   | 41 | % |   | 45 | % |
| Class 6 and 7 medium trucks(B)        | 24 | % |   | 32 | % |   | 38 | % |
| Class 8 heavy trucks                  | 12 | % |   | 15 | % |   | 17 | % |
| Class 8 severe service trucks(C)      | 22 | % |   | 29 | % |   | 31 | % |
| Total Traditional markets             | 18 | % |   | 22 | % |   | 27 | % |
| Combined Class 8 trucks               | 15 | % |   | 18 | % |   | 20 | % |

|     |                                                                                                                                                                                                                          |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Beginning in the first quarter of 2013, the School bus retail market deliveries include buses classified as B, C, and D and are being reported on a one-month lag. These changes are reflected in all periods presented. |

|     |                                                                                                                                          |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|
| (B) | Retail delivery market share for 2012 and 2011 were updated to reflect the impact of excluding units related to discontinued operations. |

|     |                                                                                                                                                                                                         |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (C) | Retail delivery market share includes CAT-branded units sold to Caterpillar under our North America supply agreement. Also, periods presented have been recast to exclude militarized commercial units. |

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Table of Contents

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  |   |   |   |   |   |   | 2013 vs. 2012 |   | 2012 vs. 2011 |
| (in units)                            | 2013 |   | 2012 |   | 2011 |   | Change |   | % Change |   | Change |   | % Change |
| Traditional Markets (U.S. and Canada) |   |   |   |   |   |   |   |   |   |   |   |   |   |
| School buses(A)                       | 10,200 |  |   | 11,300 |  |   | 8,800 |  |   | (1,100 | ) |   | (10 | )% |   | 2,500 |  |   | 28 |  % |
| Class 6 and 7 medium trucks(B)        | 15,300 |  |   | 18,300 |  |   | 24,300 |  |   | (3,000 | ) |   | (16 | )% |   | (6,000 | ) |   | (25 | )% |
| Class 8 heavy trucks                  | 24,500 |  |   | 22,500 |  |   | 29,600 |  |   | 2,000 |  |   | 9 |  % |   | (7,100 | ) |   | (24 | )% |
| Class 8 severe service trucks(C)      | 9,000 |  |   | 12,400 |  |   | 11,600 |  |   | (3,400 | ) |   | (27 | )% |   | 800 |  |   | 7 |  % |
| Total Traditional markets             | 59,000 |  |   | 64,500 |  |   | 74,300 |  |   | (5,500 | ) |   | (9 | )% |   | (9,800 | ) |   | (13 | )% |
| Combined Class 8 trucks               | 33,500 |  |   | 34,900 |  |   | 41,200 |  |   | (1,400 | ) |   | (4 | )% |   | (6,300 | ) |   | (15 | )% |

|     |                                                                                                                                                                                                                          |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Beginning in the first quarter of 2013, the School bus retail market deliveries include buses classified as B, C, and D and are being reported on a one-month lag. These changes are reflected in all periods presented. |

|     |                                                                                           |
|-----|-------------------------------------------------------------------------------------------|
| (B) | Orders for 2012 and 2011 were recast to exclude units related to discontinued operations. |

|     |                                                                                                                                                                                  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (C) | Orders include CAT-branded units sold to Caterpillar under our North America supply agreement. Also, periods presented have been recast to exclude militarized commercial units. |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  |   |   |   |   |   |   | 2013 vs. 2012 |   | 2012 vs. 2011 |
| (in units)                            | 2013 |   | 2012 |   | 2011 |   | Change |   | % Change |   | Change |   | % Change |
| Traditional Markets (U.S. and Canada) |   |   |   |   |   |   |   |   |   |   |   |   |   |
| School buses(A)                       | 3,000 |  |   | 2,500 |  |   | 1,100 |  |   | 500 |  |   | 20 |  % |   | 1,400 |  |   | 127 |  % |
| Class 6 and 7 medium trucks(B)        | 7,400 |  |   | 6,300 |  |   | 7,700 |  |   | 1,100 |  |   | 17 |  % |   | (1,400 | ) |   | (18 | )% |
| Class 8 heavy trucks                  | 9,600 |  |   | 5,700 |  |   | 9,300 |  |   | 3,900 |  |   | 68 |  % |   | (3,600 | ) |   | (39 | )% |
| Class 8 severe service trucks(C)      | 2,500 |  |   | 3,300 |  |   | 3,700 |  |   | (800 | ) |   | (24 | )% |   | (400 | ) |   | (11 | )% |
| Total Traditional markets             | 22,500 |  |   | 17,800 |  |   | 21,800 |  |   | 4,700 |  |   | 26 |  % |   | (4,000 | ) |   | (18 | )% |
| Combined Class 8 trucks               | 12,100 |  |   | 9,000 |  |   | 13,000 |  |   | 3,100 |  |   | 34 |  % |   | (4,000 | ) |   | (31 | )% |

|     |                                                                                                                                                                                                                          |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Beginning in the first quarter of 2013, the School bus retail market deliveries include buses classified as B, C, and D and are being reported on a one-month lag. These changes are reflected in all periods presented. |

|     |                                                                                             |
|-----|---------------------------------------------------------------------------------------------|
| (B) | Backlogs for 2012 and 2011 were recast to exclude units related to discontinued operations. |

|     |                                                                                                                                                                                                                                                                                          |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (C) | Backlogs include CAT-branded units sold to Caterpillar under our North America supply agreement, and the backlogs for 2012 and 2011 were adjusted to reflect the inclusion of these CAT-branded units. Also, periods presented have been recast to exclude militarized commercial units. |

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Table of Contents

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  |   |   |   |   |   |   | 2013 vs. 2012 |   | 2012 vs. 2011 |
| (in units)                            | 2013 |   | 2012 |   | 2011 |   | Change   |   | % Change |   | Change   |   | % Change |
| Traditional Markets (U.S. and Canada) |   |   |   |   |   |   |   |   |   |   |   |   |   |
| School buses(A)                       | 9,500 |  |   | 9,700 |  |   | 9,500 |  |   | (200 | ) |   | (2 | )% |   | 200 |  |   | 2 |  % |
| Class 6 and 7 medium trucks(B)   | 14,700 |  |   | 19,900 |  |   | 23,400 |  |   | (5,200 | ) |   | (26 | )% |   | (3,500 | ) |   | (15 | )% |
| Class 8 heavy trucks             | 21,100 |  |   | 27,100 |  |   | 25,700 |  |   | (6,000 | ) |   | (22 | )% |   | 1,400 |  |   | 5 |  % |
| Class 8 severe service trucks(C) | 9,800 |  |   | 12,900 |  |   | 11,400 |  |   | (3,100 | ) |   | (24 | )% |   | 1,500 |  |   | 13 |  % |
| Total Traditional markets             | 55,100 |  |   | 69,600 |  |   | 70,000 |  |   | (14,500 | ) |   | (21 | )% |   | (400 | ) |   | (1 | )% |
| Military vehicles(D)                  | 800 |  |   | 2,400 |  |   | 3,700 |  |   | (1,600 | ) |   | (67 | )% |   | (1,300 | ) |   | (35 | )% |
| Expansion markets(E)                  | 28,500 |  |   | 29,300 |  |   | 28,600 |  |   | (800 | ) |   | (3 | )% |   | 700 |  |   | 2 |  % |
| Total worldwide units(F)              | 84,400 |  |   | 101,300 |  |   | 102,300 |  |   | (16,900 | ) |   | (17 | )% |   | (1,000 | ) |   | (1 | )% |
| Combined Class 8 trucks               | 30,900 |  |   | 40,000 |  |   | 37,100 |  |   | (9,100 | ) |   | (23 | )% |   | 2,900 |  |   | 8 |  % |

|     |                                                                                                                                                                                                                          |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Beginning in the first quarter of 2013, the School bus retail market deliveries include buses classified as B, C, and D and are being reported on a one-month lag. These changes are reflected in all periods presented. |

|     |                                                                                               |
|-----|-----------------------------------------------------------------------------------------------|
| (B) | Chargeouts for 2012 and 2011 were recast to exclude units related to discontinued operations. |

|     |                                                                                                                                                                                                                                                                                                                       |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (C) | Chargeouts include CAT-branded units sold to Caterpillar under our North America supply agreement, and the chargeouts for the first quarter of 2012 were adjusted by 200 units to reflect the inclusion of these CAT-branded units. Also, periods presented have been recast to exclude militarized commercial units. |

|     |                                                                          |
|-----|--------------------------------------------------------------------------|
| (D) | All periods presented have been recast to include all militarized units. |

|     |                                                                                                                                                               |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (E) | Includes chargeouts related to Blue Diamond Truck ("BDT") of 9,900 units, 6,600 units, and 6,700 units during 2013, 2012, and 2011, respectively. |

|     |                                                                                                                                                                                                                                                                                                                                                           |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (F) | Excludes chargeouts related to: (i) RV towables of 2,200 units, 3,000 units, and 2,800 units during 2013, 2012, and 2011, respectively, and (ii) units related to Monaco and WCC as a result of being classified as discontinued operations of 400 units, 3,700 units, and 6,100 units during 2013, 2012, and 2011, respectively. |

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                       |   |   |   |   |   |   | 2013 vs 2012 |   | 2012 vs 2011 |
| (in units)                 | 2013 |   | 2012 |   | 2011 |   | Change   |   | % Change   |   | Change   |   | % Change   |
| OEM sales-South America(A) | 116,200 |  |   | 106,700 |  |   | 138,600 |  |   | 9,500 |  |   | 9 |  % |   | (31,900 | ) |   | (23 | )% |
| Intercompany sales         | 59,900 |  |   | 83,100 |  |   | 88,800 |  |   | (23,200 | ) |   | (28 | )% |   | (5,700 | ) |   | (6 | )% |
| Other OEM sales            | 9,300 |  |   | 10,100 |  |   | 16,200 |  |   | (800 | ) |   | (8 | )% |   | (6,100 | ) |   | (38 | )% |
| Total sales                | 185,400 |  |   | 199,900 |  |   | 243,600 |  |   | (14,500 | ) |   | (7 | )% |   | (43,700 | ) |   | (18 | )% |

|     |                                                                                                                                         |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Includes shipments related to Ford of 1,600 units, 6,300 units, and 27,000 units during 2013, 2012, and 2011, respectively. |

----

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|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |  |  |  |  |  |  |  |  |
|                                                          | As of October 31, |
| (in millions)                                                 | 2013 |   | 2012 |   | 2011 |
| Consolidated cash and cash equivalents                        | $ | 755 |  |   | $ | 1,087 |  |   | $ | 539 |  |
| Consolidated marketable securities                            | 830 |  |   | 466 |  |   | 718 |  |
| Consolidated cash, cash equivalents and marketable securities | $ | 1,585 |  |   | $ | 1,553 |  |   | $ | 1,257 |  |

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

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

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

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|               |
|---------------|
|               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Company  |   | Instrument Type |   | Total  Amount   |   | Purpose of Funding |   | AmountUtilized |   | Matures or Expires |
| (in millions) |   |   |   |   |   |   |   |   |   |
| NFSC          |   | Revolving wholesale note trust |   | $ | 950 |  |   | Eligible wholesale notes |   | $ | 570 |  |   | 2015 |
| NFC           |   | Credit agreement |   | 810 |  |   | Finance receivables and general corporate purposes |   | 600 |  | (A)  | 2016 |
| NFM           |   | Bank lines and commercial paper |   | 528 |  |   | General corporate purposes |   | 439 |  |   | 2013-2019 |

|     |                                                                   |
|-----|-------------------------------------------------------------------|
| (A) | Includes $50 million borrowed by NFM under the sub-revolver. |

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|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                    | Payments Due by Year Ending October 31,   |
| (in millions)                                           | Total |   | 2014 |   | 2015-2016 |   | 2017-2018 |   | 2019+ |
| Type of contractual obligation:                         |   |   |   |   |   |   |   |   |   |
| Long-term debt obligations                              | $ | 5,085 |  |   | $ | 1,164 |  |   | $ | 895 |  |   | $ | 1,526 |  |   | $ | 1,500 |  |
| Interest on long-term debt(A)                           | 1,536 |  |   | 233 |  |   | 392 |  |   | 289 |  |   | 622 |  |
| Financing arrangements and capital lease obligations(B) | 77 |  |   | 25 |  |   | 12 |  |   | 14 |  |   | 26 |  |
| Operating lease obligations(C)                          | 347 |  |   | 72 |  |   | 108 |  |   | 72 |  |   | 95 |  |
| Purchase obligations(D)                                 | 421 |  |   | 406 |  |   | 13 |  |   | 2 |  |   | — |  |
| Total                                                   | $ | 7,466 |  |   | $ | 1,900 |  |   | $ | 1,420 |  |   | $ | 1,903 |  |   | $ | 2,243 |  |

|     |                                                                                                                                                                                                                                                                 |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Amounts represent estimated contractual interest payments on outstanding debt. Rates in effect as of October 31, 2013 are used for variable rate debt. For more information, see Note 10, Debt, to the accompanying consolidated financial statements. |

|     |                                                                                                                                                                                                                                                                                                                                         |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B) | We lease many of our facilities as well as other property and equipment under financing arrangements and capital leases in the normal course of business, including $18 million of interest obligations. For more information, see Note 7, Property and Equipment, Net, to the accompanying consolidated financial statements. |

|     |                                                                                                                                                                                                                                                                                          |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (C) | Lease obligations for facility closures are included in operating leases. Future operating lease obligations are not recognized in our Consolidated Balance Sheet. For more information, see Note 7, Property and Equipment, Net, to the accompanying consolidated financial statements. |

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

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

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

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

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

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

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

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

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

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

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                       | October 31, 2013 |   | 2014 Expense |
|                       | Obligations |   |   |   |   |
| (in millions)              | Pension |   | OPEB |   | Pension |   | OPEB |
| Discount rate:             |   |   |   |   |   |   |   |
| Increase of 1.0%           | $ | (370 | ) |   | $ | (162 | ) |   | $ | (3 | ) |   | $ | (3 | ) |
| Decrease of 1.0%           | 408 |  |   | 193 |  |   | (1 | ) |   | 3 |  |
| Expected return on assets: |  |   |  |   |  |   |  |
| Increase of 1.0%           | NA |  |   | NA |  |   | (25 | ) |   | (4 | ) |
| Decrease of 1.0%           | NA |  |   | NA |  |   | 25 |  |   | 4 |  |

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

|                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |  |
|                                                                                                                | Page |
| Report of Independent Registered Public Accounting Firm                                                             | 67 |
| Consolidated Statements of Operations for the years ended October 31, 2013, 2012, and 2011                     | 68 |
| Consolidated Statements of Comprehensive Income (Loss) for the years ended October 31, 2013, 2012, and 2011    | 69 |
| Consolidated Balance Sheets as of October 31, 2013 and 2012                                                    | 70 |
| Consolidated Statements of Cash Flows for the years ended October 31, 2013, 2012, and 2011                     | 71 |
| Consolidated Statements of Stockholders' Equity (Deficit) for the years ended October 31, 2013, 2012, and 2011 | 72 |

|                                            |
|--------------------------------------------|
|                                            |  |  |
| Notes to Consolidated Financial Statements |   |
| 1                                          | Summary of Significant Accounting Policies | 73 |
| 2                                          | Discontinued Operations and Other Divestitures | 83 |
| 3                                          | Restructurings and Impairments | 84 |
| 4                                          | Finance Receivables | 87 |
| 5                                          | Allowance for Doubtful Accounts | 89 |
| 6                                          | Inventories | 90 |
| 7                                          | Property and Equipment, Net | 90 |
| 8                                          | Goodwill and Other Intangible Assets, Net | 92 |
| 9                                          | Investments in Non-consolidated Affiliates | 93 |
| 10                                         | Debt | 95 |
| 11                                         | Postretirement Benefits | 102 |
| 12                                         | Income Taxes | 111 |
| 13                                         | Fair Value Measurements | 114 |
| 14                                         | Financial Instruments and Commodity Contracts | 117 |
| 15                                         | Commitments and Contingencies | 119 |
| 16                                         | Segment Reporting | 126 |
| 17                                         | Stockholders' Deficit | 129 |
| 18                                         | Earnings (Loss) Per Share Attributable to Navistar International Corporation | 131 |
| 19                                         | Stock-based Compensation Plans | 132 |
| 20                                         | Supplemental Cash Flow Information | 138 |
| 21                                         | Condensed Consolidating Guarantor and Non-guarantor Financial Information | 138 |
| 22                                         | Selected Quarterly Financial Data (Unaudited) | 144 |

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|---------------------------------------------------------------------------------|
|                                                                                 |  |  |  |  |  |  |  |  |  |  |  |
|                                                                            | For the Years Ended October 31, |
| (in millions, except per share data)                                            | 2013 |   | 2012 |   | 2011 |
| Sales and revenues                                                              |   |   |   |   |   |
| Sales of manufactured products, net                                             | $ | 10,617 |  |   | $ | 12,527 |  |   | $ | 13,441 |  |
| Finance revenues                                                                | 158 |  |   | 168 |  |   | 200 |  |
| Sales and revenues, net                                                         | 10,775 |  |   | 12,695 |  |   | 13,641 |  |
| Costs and expenses                                                              |   |   |   |   |   |
| Costs of products sold                                                          | 9,761 |  |   | 11,401 |  |   | 10,937 |  |
| Restructuring charges                                                           | 25 |  |   | 107 |  |   | 82 |  |
| Asset impairment charges                                                        | 97 |  |   | 16 |  |   | 13 |  |
| Selling, general and administrative expenses                                    | 1,215 |  |   | 1,419 |  |   | 1,407 |  |
| Engineering and product development costs                                       | 406 |  |   | 532 |  |   | 520 |  |
| Interest expense                                                                | 321 |  |   | 259 |  |   | 247 |  |
| Other expense (income), net                                                     | (65 | ) |   | 43 |  |   | (71 | ) |
| Total costs and expenses                                                        | 11,760 |  |   | 13,777 |  |   | 13,135 |  |
| Equity in income (loss) of non-consolidated affiliates                          | 11 |  |   | (29 | ) |   | (71 | ) |
| Income (loss) from continuing operations before income taxes                    | (974 | ) |   | (1,111 | ) |   | 435 |  |
| Income tax benefit (expense)                                                    | 171 |  |   | (1,780 | ) |   | 1,417 |  |
| Income (loss) from continuing operations                                        | (803 | ) |   | (2,891 | ) |   | 1,852 |  |
| Loss from discontinued operations, net of tax                                   | (41 | ) |   | (71 | ) |   | (74 | ) |
| Net income (loss)                                                               | (844 | ) |   | (2,962 | ) |   | 1,778 |  |
| Less: Net income attributable to non-controlling interests                      | 54 |  |   | 48 |  |   | 55 |  |
| Net income (loss) attributable to Navistar International Corporation            | $ | (898 | ) |   | $ | (3,010 | ) |   | $ | 1,723 |  |
|                                                                            |   |   |   |   |   |
| Amounts attributable to Navistar International Corporation common shareholders: |   |   |   |   |   |
| Income (loss) from continuing operations, net of tax                            | $ | (857 | ) |   | $ | (2,939 | ) |   | $ | 1,797 |  |
| Loss from discontinued operations, net of tax                                   | (41 | ) |   | (71 | ) |   | (74 | ) |
| Net income (loss)                                                               | $ | (898 | ) |   | $ | (3,010 | ) |   | $ | 1,723 |  |
|                                                                            |   |   |   |   |   |
| Earnings (loss) per share:                                                      |   |   |   |   |   |
| Basic:                                                                          |   |   |   |   |   |
| Continuing operations                                                           | $ | (10.66 | ) |   | $ | (42.53 | ) |   | $ | 24.68 |  |
| Discontinued operations                                                         | (0.51 | ) |   | (1.03 | ) |   | (1.02 | ) |
|                                                                            | $ | (11.17 | ) |   | $ | (43.56 | ) |   | $ | 23.66 |  |
|                                                                            |   |   |   |   |   |
| Diluted:                                                                        |   |   |   |   |   |
| Continuing operations                                                           | $ | (10.66 | ) |   | $ | (42.53 | ) |   | $ | 23.61 |  |
| Discontinued operations                                                         | (0.51 | ) |   | (1.03 | ) |   | (0.97 | ) |
|                                                                            | $ | (11.17 | ) |   | $ | (43.56 | ) |   | $ | 22.64 |  |
|                                                                            |   |   |   |   |   |
| Weighted average shares outstanding:                                            |   |   |   |   |   |
| Basic                                                                           | 80.4 |  |   | 69.1 |  |   | 72.8 |  |
| Diluted                                                                         | 80.4 |  |   | 69.1 |  |   | 76.1 |  |

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|                                                                                            |
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|                                                                                            |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                              | For the Years Ended October 31, |
| 2013                                                                                       |   | 2012 |   | 2011 |
| Net income (loss) attributable to Navistar International Corporation                       | $ | (898 | ) |   | $ | (3,010 | ) |   | $ | 1,723 |  |
| Other comprehensive income (loss):                                                         |   |   |   |   |   |
| Foreign currency translation adjustment                                                    | (51 | ) |   | (125 | ) |   | (19 | ) |
| Defined benefit plans, net of tax benefit (expense) of $(233), $14, and $430, respectively | 552 |  |   | (256 | ) |   | (729 | ) |
| Total other comprehensive income (loss)                                                    | 501 |  |   | (381 | ) |   | (748 | ) |
| Total comprehensive income (loss) attributable to Navistar International Corporation       | $ | (397 | ) |   | $ | (3,391 | ) |   | $ | 975 |  |

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|                                                                                                                                  |
|----------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                  |  |  |  |  |  |  |  |
|                                                                                                                             | As of October 31, |
| (in millions, except per share data)                                                                                             | 2013 |   | 2012 |
| ASSETS                                                                                                                           |   |   |   |
| Current assets                                                                                                                   |   |   |   |
| Cash and cash equivalents                                                                                                        | $ | 755 |  |   | $ | 1,087 |  |
| Marketable securities                                                                                                            | 830 |  |   | 466 |  |
| Trade and other receivables, net                                                                                                 | 737 |  |   | 749 |  |
| Finance receivables, net                                                                                                         | 1,597 |  |   | 1,663 |  |
| Inventories                                                                                                                      | 1,210 |  |   | 1,537 |  |
| Deferred taxes, net                                                                                                              | 72 |  |   | 74 |  |
| Other current assets                                                                                                             | 258 |  |   | 261 |  |
| Total current assets                                                                                                             | 5,459 |  |   | 5,837 |  |
| Restricted cash                                                                                                                  | 91 |  |   | 161 |  |
| Trade and other receivables, net                                                                                                 | 29 |  |   | 94 |  |
| Finance receivables, net                                                                                                         | 338 |  |   | 486 |  |
| Investments in non-consolidated affiliates                                                                                       | 77 |  |   | 62 |  |
| Property and equipment, net                                                                                                      | 1,741 |  |   | 1,660 |  |
| Goodwill                                                                                                                         | 184 |  |   | 280 |  |
| Intangible assets, net                                                                                                           | 138 |  |   | 171 |  |
| Deferred taxes, net                                                                                                              | 159 |  |   | 189 |  |
| Other noncurrent assets                                                                                                          | 99 |  |   | 162 |  |
| Total assets                                                                                                                     | $ | 8,315 |  |   | $ | 9,102 |  |
| LIABILITIES and STOCKHOLDERS’ DEFICIT                                                                                      |   |   |   |
| Liabilities                                                                                                                      |   |   |   |
| Current liabilities                                                                                                              |   |   |   |
| Notes payable and current maturities of long-term debt                                                                           | $ | 1,163 |  |   | $ | 1,205 |  |
| Accounts payable                                                                                                                 | 1,502 |  |   | 1,686 |  |
| Other current liabilities                                                                                                        | 1,596 |  |   | 1,462 |  |
| Total current liabilities                                                                                                        | 4,261 |  |   | 4,353 |  |
| Long-term debt                                                                                                                   | 3,922 |  |   | 3,566 |  |
| Postretirement benefits liabilities                                                                                              | 2,564 |  |   | 3,405 |  |
| Deferred taxes, net                                                                                                              | 33 |  |   | 42 |  |
| Other noncurrent liabilities                                                                                                     | 1,136 |  |   | 996 |  |
| Total liabilities                                                                                                                | 11,916 |  |   | 12,362 |  |
| Redeemable equity securities                                                                                                     | 4 |  |   | 5 |  |
| Stockholders’ deficit                                                                                                      |   |   |   |
| Series D convertible junior preference stock                                                                                | 3 |  |   | 3 |  |
| Common stock (86.8 and 86.0 shares issued, respectively; and $0.10 par value per share and 220 shares authorized, at both dates) | 9 |  |   | 9 |  |
| Additional paid in capital                                                                                                       | 2,477 |  |   | 2,440 |  |
| Accumulated deficit                                                                                                              | (4,063 | ) |   | (3,165 | ) |
| Accumulated other comprehensive loss                                                                                             | (1,824 | ) |   | (2,325 | ) |
| Common stock held in treasury, at cost (6.3 and 6.8 shares, respectively)                                                        | (251 | ) |   | (272 | ) |
| Total stockholders’ deficit attributable to Navistar International Corporation                                             | (3,649 | ) |   | (3,310 | ) |
| Stockholders’ equity attributable to non-controlling interests                                                             | 44 |  |   | 45 |  |
| Total stockholders’ deficit                                                                                                | (3,605 | ) |   | (3,265 | ) |
| Total liabilities and stockholders’ deficit                                                                                | $ | 8,315 |  |   | $ | 9,102 |  |

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|                                                                                                        |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                   | For the Years Ended October 31, |
| (in millions)                                                                                          | 2013 |   | 2012 |   | 2011 |
| Cash flows from operating activities                                                                   |   |   |   |   |   |
| Net income (loss)                                                                                      | $ | (844 | ) |   | $ | (2,962 | ) |   | $ | 1,778 |  |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities:               |   |   |   |   |   |
| Depreciation and amortization                                                                          | 282 |  |   | 277 |  |   | 290 |  |
| Depreciation of equipment leased to others                                                             | 135 |  |   | 46 |  |   | 38 |  |
| Deferred taxes, including change in valuation allowance                                                | (226 | ) |   | 1,778 |  |   | (1,513 | ) |
| Asset impairment charges                                                                               | 105 |  |   | 44 |  |   | 75 |  |
| Gain on sales of investments and businesses, net                                                       | (29 | ) |   | — |  |   | — |  |
| Amortization of debt issuance costs and discount                                                       | 57 |  |   | 46 |  |   | 44 |  |
| Stock-based compensation                                                                               | 24 |  |   | 19 |  |   | 36 |  |
| Provision for doubtful accounts, net of recoveries                                                     | 20 |  |   | 14 |  |   | (6 | ) |
| Equity in loss of non-consolidated affiliates, net of dividends                                        | 2 |  |   | 36 |  |   | 75 |  |
| Write-off of debt issuance cost and discount                                                           | 6 |  |   | 13 |  |   | — |  |
| Other non-cash operating activities                                                                    | (70 | ) |   | 7 |  |   | (15 | ) |
| Changes in other assets and liabilities, exclusive of the effects of businesses acquired and disposed: |  |  |   |  |  |   |  |  |
| Trade and other receivables                                                                            | 68 |  |   | 454 |  |   | (212 | ) |
| Finance receivables                                                                                    | 187 |  |   | 741 |  |   | 8 |  |
| Inventories                                                                                            | 264 |  |   | 76 |  |   | (129 | ) |
| Accounts payable                                                                                       | (121 | ) |   | (399 | ) |   | 247 |  |
| Other assets and liabilities                                                                           | 240 |  |   | 420 |  |   | 164 |  |
| Net cash provided by operating activities                                                              | 100 |  |   | 610 |  |   | 880 |  |
| Cash flows from investing activities                                                                   |   |   |  |  |   |   |
| Purchases of marketable securities                                                                     | (1,779 | ) |   | (1,209 | ) |   | (1,562 | ) |
| Sales or maturities of marketable securities                                                           | 1,415 |  |   | 1,461 |  |   | 1,430 |  |
| Net change in restricted cash and cash equivalents                                                     | 70 |  |   | 165 |  |   | (147 | ) |
| Capital expenditures                                                                                   | (167 | ) |   | (309 | ) |   | (429 | ) |
| Purchases of equipment leased to others                                                                | (432 | ) |   | (61 | ) |   | (71 | ) |
| Proceeds from sales of property and equipment                                                          | 25 |  |   | 18 |  |   | 32 |  |
| Investments in non-consolidated affiliates                                                             | (24 | ) |   | (42 | ) |   | (65 | ) |
| Business acquisitions, net of cash received                                                            | — |  |   | (12 | ) |   | 12 |  |
| Proceeds from sales of affiliates                                                                      | 82 |  |   | 1 |  |   | 3 |  |
| Acquisition of intangibles                                                                             | — |  |   | (14 | ) |   | (26 | ) |
| Net cash used in investing activities                                                                  | (810 | ) |   | (2 | ) |   | (823 | ) |
| Cash flows from financing activities                                                                   |   |   |   |   |   |
| Proceeds from issuance of securitized debt                                                             | 529 |  |   | 1,313 |  |   | 599 |  |
| Principal payments on securitized debt                                                                 | (773 | ) |   | (1,976 | ) |   | (708 | ) |
| Proceeds from issuance of non-securitized debt                                                         | 641 |  |   | 1,517 |  |   | 214 |  |
| Principal payments on non-securitized debt                                                             | (475 | ) |   | (616 | ) |   | (107 | ) |
| Net increase (decrease) in notes and debt outstanding under revolving credit facilities                | 274 |  |   | (269 | ) |   | 137 |  |
| Principal payments under financing arrangements and capital lease obligations                          | (60 | ) |   | (35 | ) |   | (86 | ) |
| Debt issuance costs                                                                                    | (20 | ) |   | (57 | ) |   | (11 | ) |
| Proceeds from financed lease obligations                                                               | 294 |  |   | — |  |   | — |  |
| Issuance of common stock                                                                               | 14 |  |   | 192 |  |   | — |  |
| Purchase of treasury stock                                                                             | — |  |   | (75 | ) |   | (125 | ) |
| Proceeds from exercise of stock options                                                                | 12 |  |   | 2 |  |   | 40 |  |
| Dividends paid by subsidiaries to non-controlling interest                                             | (47 | ) |   | (56 | ) |   | (53 | ) |
| Other financing activities                                                                             | 4 |  |   | (3 | ) |   | — |  |
| Net cash provided by (used in) financing activities                                                    | 393 |  |   | (63 | ) |   | (100 | ) |
| Effect of exchange rate changes on cash and cash equivalents                                           | (15 | ) |   | 3 |  |   | (3 | ) |
| Increase (decrease) in cash and cash equivalents                                                       | (332 | ) |   | 548 |  |   | (46 | ) |
| Cash and cash equivalents at beginning of the year                                                     | 1,087 |  |   | 539 |  |   | 585 |  |
| Cash and cash equivalents at end of the year                                                           | $ | 755 |  |   | $ | 1,087 |  |   | $ | 539 |  |

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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, 2010                                                          | $ | 4 |  |   | $ | 7 |  |   | $ | 2,206 |  |   | $ | (1,878 | ) |   | $ | (1,196 | ) |   | $ | (124 | ) |   | $ | 49 |  |   | $ | (932 | ) |
| Net income                                                                              |   |   |   |   |   |   | 1,723 |  |   |   |   |   |   | 55 |  |   | 1,778 |  |
| Total other comprehensive loss                                                          |   |   |   |   |   |   |   |   | (748 | ) |   |   |   |   |   | (748 | ) |
| Transfer from redeemable equity securities upon exercise or expiration of stock options |   |   |   |   | 3 |  |   |   |   |   |   |   |   |   |   | 3 |  |
| Stock-based compensation                                                                |   |   |   |   | 27 |  |   |   |   |   |   |   |   |   |   | 27 |  |
| Stock ownership programs                                                                |   |   |   |   | (8 | ) |   |   |   |   |   | 38 |  |   |   |   | 30 |  |
| Stock repurchase programs                                                               |   |   |   |   |   |   |   |   |   |   | (105 | ) |   |   |   | (105 | ) |
| Forward contract for accelerated stock repurchase program                               |   |   |   |   | (20 | ) |   |   |   |   |   |   |   |   |   | (20 | ) |
| Cash dividends paid to non-controlling interest                                         |   |   |   |   |   |   |   |   |   |   |   |   | (53 | ) |   | (53 | ) |
| Impact to additional paid-in capital related to change in valuation allowance           |   |   |   |   | 45 |  |   |   |   |   |   |   |   |   |   | 45 |  |
| Other                                                                                   | (1 | ) |   |   |   |   |   |   |   |   |   |   |   | (1 | ) |   | (2 | ) |
| Balance as of October 31, 2011                                                          | $ | 3 |  |   | $ | 7 |  |   | $ | 2,253 |  |   | $ | (155 | ) |   | $ | (1,944 | ) |   | $ | (191 | ) |   | $ | 50 |  |   | $ | 23 |  |
| Net income (loss)                                                                       |   |   |   |   |   |   | (3,010 | ) |   |   |   |   |   | 48 |  |   | (2,962 | ) |
| Total other comprehensive loss                                                          |   |   |   |   |   |   |   |   | (381 | ) |   |   |   |   |   | (381 | ) |
| Stock-based compensation                                                                |   |   |   |   | 18 |  |   |   |   |   |   |   |   |   |   | 18 |  |
| Stock ownership programs                                                                |   |   |   |   | (14 | ) |   |   |   |   |   | 15 |  |   |   |   | 1 |  |
| Stock repurchase programs                                                               |   |   |   |   | 20 |  |   |   |   |   |   | (95 | ) |   |   |   | (75 | ) |
| Cash dividends paid to non-controlling interest                                         |   |   |   |   |   |   |   |   |   |   |   |   | (56 | ) |   | (56 | ) |
| Increase in ownership interest acquired from non-controlling interest holder            |   |   |   |   | (3 | ) |   |   |   |   |   |   |   | 3 |  |   | — |  |
| October 2012 issuance of common stock, net of issuance cost and fees                    |   |   | 1 |  |   | 191 |  |   |   |   |   |   |   |   |   |   | 192 |  |
| Impact to additional paid-in capital related to change in valuation allowance           |   |   |   |   | (26 | ) |   |   |   |   |   |   |   |   |   | (26 | ) |
| Other                                                                                   |   |   | 1 |  |   | 1 |  |   |   |   |   |   | (1 | ) |   |   |   | 1 |  |
| Balance as of October 31, 2012                                                          | $ | 3 |  |   | $ | 9 |  |   | $ | 2,440 |  |   | $ | (3,165 | ) |   | $ | (2,325 | ) |   | $ | (272 | ) |   | $ | 45 |  |   | $ | (3,265 | ) |
| Net income (loss)                                                                       |   |   |   |   |   |   | (898 | ) |   |   |   |   |   | 54 |  |   | (844 | ) |
| Total other comprehensive income                                                        |   |   |   |   |   |   |   |   | 501 |  |   |   |   |   |   | 501 |  |
| Transfer from redeemable equity securities upon exercise or expiration of stock options |   |   |   |   | 2 |  |   |   |   |   |   |   |   |   |   | 2 |  |
| Stock-based compensation                                                                |   |   |   |   | 18 |  |   |   |   |   |   |   |   |   |   | 18 |  |
| Stock ownership programs                                                                |   |   |   |   | (10 | ) |   |   |   |   |   | 21 |  |   |   |   | 11 |  |
| Cash dividends paid to non-controlling interest                                         |   |   |   |   |   |   |   |   |   |   |   |   | (47 | ) |   | (47 | ) |
| Issuance of common stock, net of issuance costs and fees                                |   |   |   |   | 14 |  |   |   |   |   |   |   |   |   |   | 14 |  |
| Deconsolidation of non-controlling interests                                            |   |   |   |   |   |   |   |   |   |   |   |   | (9 | ) |   | (9 | ) |
| Equity component of convertible debt instruments                                        |   |   |   |   | 14 |  |   |   |   |   |   |   |   |   |   | 14 |  |
| Other                                                                                   |   |   |   |   | (1 | ) |   |   |   |   |   |   |   | 1 |  |   | — |  |
| Balance as of October 31, 2013                                                          | $ | 3 |  |   | $ | 9 |  |   | $ | 2,477 |  |   | $ | (4,063 | ) |   | $ | (1,824 | ) |   | $ | (251 | ) |   | $ | 44 |  |   | $ | (3,605 | ) |

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

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

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

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

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

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

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

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|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                     | 2013 |   | 2012 |   | 2011 |
| Balance at November 1                                             | $ | 1,118 |  |   | $ | 598 |  |   | $ | 506 |  |
| Costs accrued and revenues deferred(A)                            | 469 |  |   | 575 |  |   | 407 |  |
| Acquisitions                                                      | — |  |   | — |  |   | 5 |  |
| Divestitures                                                      | (3 | ) |   | — |  |   | — |  |
| Currency translation adjustment                                   | (2 | ) |   | (4 | ) |   | — |  |
| Adjustments to pre-existing warranties(B)(C)                      | 404 |  |   | 404 |  |   | 79 |  |
| Payments and revenues recognized                                  | (637 | ) |   | (455 | ) |   | (399 | ) |
| Balance at October 31                                             | 1,349 |  |   | 1,118 |  |   | 598 |  |
| Less: Current portion                                             | 601 |  |   | 551 |  |   | 263 |  |
| Noncurrent accrued product warranty and deferred warranty revenue | $ | 748 |  |   | $ | 567 |  |   | $ | 335 |  |

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

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

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (C) | In the 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. In the second quarter of 2013, we recognized a warranty recovery of $13 million within Loss from discontinued operations, net of tax and recorded a receivable within Other current assets. |

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|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                 | 2013 |   | 2012 |   | 2011 |
| Sales and revenues, net                       | $ | 73 |  |   | $ | 253 |  |   | $ | 317 |  |
|                                          |   |   |   |   |   |
| Loss before income taxes                      | $ | (41 | ) |   | $ | (71 | ) |   | $ | (115 | ) |
| Income tax benefit                            | — |  |   | — |  |   | 41 |  |
| Loss from discontinued operations, net of tax | $ | (41 | ) |   | $ | (71 | ) |   | $ | (74 | ) |

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|                                                          |
|----------------------------------------------------------|
|                                                          |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                            | 2013 |   | 2012 |   | 2011 |
| Restructuring charges related to continuing operations   | $ | 25 |  |   | $ | 107 |  |   | $ | 82 |  |
| Restructuring charges related to discontinued operations | — |  |   | 1 |  |   | 10 |  |
| Total restructuring charges                              | $ | 25 |  |   | $ | 108 |  |   | $ | 92 |  |

|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                     | 2013 |   | 2012 |   | 2011 |
| Goodwill impairment charge(A)                                     | $ | 81 |  |   | $ | — |  |   | $ | — |  |
| Other asset impairment charges related to continuing operations   | 20 |  |   | 16 |  |   | 13 |  |
| Other asset impairment charges related to discontinued operations | 4 |  |   | 28 |  |   | 51 |  |
| Total asset impairment charges                                    | $ | 105 |  |   | $ | 44 |  |   | $ | 64 |  |

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

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|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                | Balance at October 31, 2012 |   | Additions |   | Payments |   | Adjustments |   | Balance at October 31, 2013 |
| Employee termination charges | $ | 72 |  |   | $ | 12 |  |   | $ | (64 | ) |   | $ | (5 | ) |   | $ | 15 |  |
| Employee relocation costs    | — |  |   | 3 |  |   | (3 | ) |   | — |  |   | — |  |
| Lease vacancy                | 17 |  |   | 6 |  |   | (9 | ) |   | 4 |  |   | 18 |  |
| Other                        | — |  |   | 5 |  |   | (4 | ) |   | — |  |   | 1 |  |
| Restructuring liability      | $ | 89 |  |   | $ | 26 |  |   | $ | (80 | ) |   | $ | (1 | ) |   | $ | 34 |  |

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                | Balance atOctober 31, 2011 |   | Additions |   | Payments |   | Adjustments |   | Balance at October 31, 2012 |
| Employee termination charges | $ | 31 |  |   | $ | 73 |  |   | $ | (30 | ) |   | $ | (2 | ) |   | $ | 72 |  |
| Employee relocation costs    | — |  |   | 8 |  |   | (8 | ) |   | — |  |   | — |  |
| Lease vacancy                | — |  |   | 19 |  |   | (4 | ) |   | 2 |  |   | 17 |  |
| Other                        | 8 |  |   | 11 |  |   | (16 | ) |   | (3 | ) |   | — |  |
| Restructuring liability      | $ | 39 |  |   | $ | 111 |  |   | $ | (58 | ) |   | $ | (3 | ) |   | $ | 89 |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |
| (in millions)                         | 2013 |   | 2012 |
| Retail portfolio                      | $ | 751 |  |   | $ | 1,048 |  |
| Wholesale portfolio                   | 1,207 |  |   | 1,128 |  |
| Total finance receivables             | 1,958 |  |   | 2,176 |  |
| Less: Allowance for doubtful accounts | 23 |  |   | 27 |  |
| Total finance receivables, net        | 1,935 |  |   | 2,149 |  |
| Less: Current portion, net(A)         | 1,597 |  |   | 1,663 |  |
| Noncurrent portion,net                | $ | 338 |  |   | $ | 486 |  |

|     |                                                                                                                                                                                                                                                |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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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|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)             | Retail Portfolio |   | Wholesale Portfolio |   | Total |
| Due in:                   |   |   |   |   |   |
| 2014                      | $ | 434 |  |   | $ | 1,207 |  |   | $ | 1,641 |  |
| 2015                      | 169 |  |   | — |  |   | 169 |  |
| 2016                      | 112 |  |   | — |  |   | 112 |  |
| 2017                      | 55 |  |   | — |  |   | 55 |  |
| 2018                      | 26 |  |   | — |  |   | 26 |  |
| Thereafter                | 15 |  |   | — |  |   | 15 |  |
| Gross finance receivables | 811 |  |   | 1,207 |  |   | 2,018 |  |
| Unearned finance income   | 60 |  |   | — |  |   | 60 |  |
| Total finance receivables | $ | 751 |  |   | $ | 1,207 |  |   | $ | 1,958 |  |

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                           | 2013 |   | 2012 |   | 2011 |
| Retail notes and finance leases revenue | $ | 78 |  |   | $ | 98 |  |   | $ | 137 |  |
| Wholesale notes interest                | 77 |  |   | 87 |  |   | 93 |  |
| Operating lease revenue                 | 51 |  |   | 40 |  |   | 32 |  |
| Retail and wholesale accounts interest  | 27 |  |   | 34 |  |   | 27 |  |
| Securitization Income                   | — |  |   | — |  |   | 2 |  |
| Gross finance revenues                  | 233 |  |   | 259 |  |   | 291 |  |
| Less: Intercompany revenues             | 75 |  |   | 91 |  |   | 91 |  |
| Finance revenues                        | $ | 158 |  |   | $ | 168 |  |   | $ | 200 |  |

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|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                    | October 31, 2013 |
| (in millions)                                           | RetailPortfolio |   | WholesalePortfolio |   | Trade andOtherReceivables |   | Total |
| Allowance for doubtful accounts, at beginning of period | $ | 27 |  |   | $ | — |  |   | $ | 24 |  |   | $ | 51 |  |
| Provision for doubtful accounts, net of recoveries(A)   | 4 |  |   | 2 |  |   | 14 |  |   | 20 |  |
| Charge-off of accounts(B)                               | (10 | ) |   | — |  |   | (1 | ) |   | (11 | ) |
| Allowance for doubtful accounts, at end of period       | $ | 21 |  |   | $ | 2 |  |   | $ | 37 |  |   | $ | 60 |  |

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

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

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

|     |                                                                                                                                                                                                                                                                                                                       |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B) | 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 $2 million, $6 million, and $20 million in 2013, 2012, and 2011, respectively. |

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                        | October 31, 2013 |   | October 31, 2012 |
| (in millions)                                               | RetailPortfolio |   | WholesalePortfolio |   | Total |   | RetailPortfolio |   | WholesalePortfolio |   | Total |
| Impaired finance receivables with specific loss reserves    | $ | 15 |  |   | $ | — |  |   | $ | 15 |  |   | $ | 14 |  |   | $ | — |  |   | $ | 14 |  |
| Impaired finance receivables without specific loss reserves | 1 |  |   | — |  |   | 1 |  |   | 1 |  |   | — |  |   | 1 |  |
| Specific loss reserves on impaired finance receivables      | 6 |  |   | — |  |   | 6 |  |   | 9 |  |   | — |  |   | 9 |  |
| Finance receivables on non-accrual status                   | 10 |  |   | — |  |   | 10 |  |   | 10 |  |   | — |  |   | 10 |  |

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|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |
|                                | October 31, 2013 |
| (in millions)                       | RetailPortfolio |   | WholesalePortfolio |   | Total |
| Current, and up to 30 days past due | $ | 699 |  |   | $ | 1,204 |  |   | $ | 1,903 |  |
| 30-90 days past due                 | 44 |  |   | 2 |  |   | 46 |  |
| Over 90 days past due               | 8 |  |   | 1 |  |   | 9 |  |
| Total finance receivables           | $ | 751 |  |   | $ | 1,207 |  |   | $ | 1,958 |  |

|                   |
|-------------------|
|                   |  |  |  |  |  |  |  |
| (in millions)     | 2013 |   | 2012 |
| Finished products | $ | 692 |  |   | $ | 833 |  |
| Work in process   | 58 |  |   | 136 |  |
| Raw materials     | 460 |  |   | 568 |  |
| Total inventories | $ | 1,210 |  |   | $ | 1,537 |  |

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |
| (in millions)                                   | 2013 |   | 2012 |
| Land(A)                                         | $ | 75 |  |   | $ | 79 |  |
| Buildings(A)                                    | 575 |  |   | 520 |  |
| Leasehold improvements                          | 80 |  |   | 81 |  |
| Machinery and equipment                         | 2,494 |  |   | 2,504 |  |
| Furniture, fixtures, and equipment              | 239 |  |   | 244 |  |
| Equipment leased to others                      | 663 |  |   | 301 |  |
| Construction in progress(A)                     | 55 |  |   | 159 |  |
| Total property and equipment, at cost           | 4,181 |  |   | 3,888 |  |
| Less: Accumulated depreciation and amortization | 2,440 |  |   | 2,228 |  |
| Property and equipment, net                     | $ | 1,741 |  |   | $ | 1,660 |  |

|     |                                                                                                                                                                                                                                                                                                                                                      |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | We consolidated our executive management, certain business operations, and product development into a 1.2 million square foot, world headquarters site in Lisle, Illinois, which we completed in the first quarter of fiscal 2012, and we completed the consolidation of our testing and validation center in our Melrose Park facility in 2013. |

|                                                                                                |
|------------------------------------------------------------------------------------------------|
|                                                                                                |  |  |  |  |  |  |  |
| (in millions)                                                                                  | 2013 |   | 2012 |
| Equipment leased to others                                                                     | $ | 663 |  |   | $ | 301 |  |
| Less: Accumulated depreciation                                                                 | 191 |  |   | 94 |  |
| Equipment leased to others, net                                                                | $ | 472 |  |   | $ | 207 |  |
|                                                                                           |   |   |   |
| Buildings, machinery, and equipment under financing arrangements and capital lease obligations | $ | 92 |  |   | $ | 156 |  |
| Less: Accumulated depreciation and amortization                                                | 31 |  |   | 86 |  |
| Assets under financing arrangements and capital lease obligations, net                         | $ | 61 |  |   | $ | 70 |  |

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|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                              | 2013 |   | 2012 |   | 2011 |
| Depreciation expense                       | $ | 260 |  |   | $ | 248 |  |   | $ | 260 |  |
| Depreciation of equipment leased to others | 135 |  |   | 46 |  |   | 38 |  |
| Amortization expense                       | — |  |   | 4 |  |   | 1 |  |
| Interest capitalized                       | 5 |  |   | 9 |  |   | 18 |  |

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)          | FinancingArrangementsand CapitalLease Obligations  |   | OperatingLeases |   | Total |
| 2014                   | $ | 30 |  |   | $ | 72 |  |   | $ | 102 |  |
| 2015                   | 9 |  |   | 61 |  |   | 70 |  |
| 2016                   | 9 |  |   | 47 |  |   | 56 |  |
| 2017                   | 9 |  |   | 39 |  |   | 48 |  |
| 2018                   | 9 |  |   | 33 |  |   | 42 |  |
| Thereafter             | 29 |  |   | 95 |  |   | 124 |  |
|                   | 95 |  |   | $ | 347 |  |   | $ | 442 |  |
| Less: Interest portion | 18 |  |   |   |  |   |   |  |
| Total                  | $ | 77 |  |   |   |   |   |

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|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)               | North America Truck   |   | North America Parts |   | Global Operations |   | Total   |
| As of October 31, 2010 | $ | 82 |  |   | $ | 38 |  |   | $ | 204 |  |   | $ | 324 |  |
| Currency translation        | — |  |   | — |  |   | 2 |  |   | 2 |  |
| Adjustments(A)              | — |  |   | — |  |   | (7 | ) |   | (7 | ) |
| As of October 31, 2011      | $ | 82 |  |   | $ | 38 |  |   | $ | 199 |  |   | $ | 319 |  |
| Currency translation        | — |  |   | — |  |   | (33 | ) |   | (33 | ) |
| Adjustments(A)              | — |  |   | — |  |   | (6 | ) |   | (6 | ) |
| As of October 31, 2012      | $ | 82 |  |   | $ | 38 |  |   | $ | 160 |  |   | $ | 280 |  |
| Impairments                 | (81 | ) |   | — |  |   | — |  |   | (81 | ) |
| Currency translation        | — |  |   | — |  |   | (12 | ) |   | (12 | ) |
| Adjustments(A)              | (1 | ) |   | — |  |   | (2 | ) |   | (3 | ) |
| As of October 31, 2013      | $ | — |  |   | $ | 38 |  |   | $ | 146 |  |   | $ | 184 |  |

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

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |
| (in millions)                                 | 2013 |   | 2012 |
| Dealer franchise rights                       | $ | 1 |  |   | $ | 5 |  |
| Trademarks                                    | 45 |  |   | 50 |  |
| Intangible assets not subject to amortization | $ | 46 |  |   | $ | 55 |  |

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|                          |
|--------------------------|
|                          |  |  |  |  |  |  |  |  |  |  |  |
|                     | As of October 31, 2013 |
| (in millions)            | CustomerBase andRelationships  |   | Trademarks, Patents and Other |   | Total  |
| Gross carrying value     | $ | 88 |  |   | $ | 101 |  |   | $ | 189 |  |
| Accumulated amortization | (55 | ) |   | (42 | ) |   | (97 | ) |
| Net of amortization      | $ | 33 |  |   | $ | 59 |  |   | $ | 92 |  |

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

|               |
|---------------|
|               |  |  |  |
| (in millions) | EstimatedAmortization |
| 2014          | $ | 21 |  |
| 2015          | 16 |  |
| 2016          | 15 |  |
| 2017          | 14 |  |
| 2018          | 9 |  |
| Thereafter    | 17 |  |

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|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |
|                                             | (Unaudited) |
| (in millions)                                    | 2013 |   | 2012 |
| Assets:                                          |   |
| Current assets                                   | $ | 254 |  |   | $ | 271 |  |
| Noncurrent assets                                | 50 |  |   | 199 |  |
| Total assets                                     | $ | 304 |  |   | $ | 470 |  |
| Liabilities and equity:                          |   |   |   |
| Current liabilities                              | $ | 111 |  |   | $ | 195 |  |
| Noncurrent liabilities                           | 8 |  |   | 91 |  |
| Total liabilities                                | 119 |  |   | 286 |  |
| Partners' capital and stockholders' equity:      |   |   |   |
| NIC                                              | 77 |  |   | 55 |  |
| Third parties                                    | 108 |  |   | 129 |  |
| Total partners' capital and stockholders' equity | 185 |  |   | 184 |  |
| Total liabilities and equity                     | $ | 304 |  |   | $ | 470 |  |

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |  |  |  |
|                                    | (Unaudited) |
| (in millions)                           | 2013 |   | 2012 |   | 2011(A) |
| Net sales                               | $ | 448 |  |   | $ | 704 |  |   | $ | 938 |  |
| Costs, expenses, and income tax expense | 412 |  |   | 726 |  |   | 1,069 |  |
| Net income (loss)                       | $ | 36 |  |   | $ | (22 | ) |   | $ | (131 | ) |

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

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |
| (in millions)                   | 2013 |   | 2012 |
| Receivables due from affiliates | $ | 23 |  |   | $ | 32 |  |
| Payables due to affiliates      | 32 |  |   | 29 |  |

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|                         |
|-------------------------|
|                         |  |  |  |
| (in millions)           | Eleven Months Ended September 29, 2011 |
| Net revenue             | $ | 235 |  |
| Net expenses            | 318 |  |
| Loss before tax expense | (83 | ) |
| Net loss                | (83 | ) |

|                                                                                                                        |
|------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                        |  |  |  |  |  |  |  |
| (in millions)                                                                                                          | 2013 |   | 2012 |
| Manufacturing operations:                                                                                              |   |   |   |
| Senior Secured Term Loan Credit Facility, as Amended, due 2017, net of unamortized discount of $4 and $9, respectively | $ | 693 |  |   | $ | 991 |  |
| 8.25% Senior Notes, due 2021, net of unamortized discount of $22 and $28, respectively                                 | 1,178 |  |   | 872 |  |
| 3.00% Senior Subordinated Convertible Notes, due 2014, net of unamortized discount of $26 and $50, respectively        | 544 |  |   | 520 |  |
| 4.50% Senior Subordinated Convertible Notes, due 2018, net of unamortized discount of $23                              | 177 |  |   | — |  |
| Debt of majority-owned dealerships                                                                                     | 48 |  |   | 60 |  |
| Financing arrangements and capital lease obligations                                                                   | 77 |  |   | 140 |  |
| Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040                                                              | 225 |  |   | 225 |  |
| Promissory Note                                                                                                        | 20 |  |   | 30 |  |
| Financed lease obligations                                                                                             | 218 |  |   | — |  |
| Other                                                                                                                  | 39 |  |   | 67 |  |
| Total Manufacturing operations debt                                                                                    | 3,219 |  |   | 2,905 |  |
| Less: Current portion                                                                                                  | 658 |  |   | 172 |  |
| Net long-term Manufacturing operations debt                                                                            | $ | 2,561 |  |   | $ | 2,733 |  |

|                                                                                                       |
|-------------------------------------------------------------------------------------------------------|
|                                                                                                       |  |  |  |  |  |  |  |
| (in millions)                                                                                         | 2013 |   | 2012 |
| Financial Services operations:                                                                        |   |   |   |
| Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2019 | $ | 778 |  |   | $ | 994 |  |
| Bank revolvers, at fixed and variable rates, due dates from 2014 through 2019                         | 1,018 |  |   | 763 |  |
| Commercial paper, at variable rates, matured in 2015                                                  | 21 |  |   | 31 |  |
| Borrowings secured by operating and finance leases, at various rates, due serially through 2017       | 49 |  |   | 78 |  |
| Total Financial Services operations debt                                                              | 1,866 |  |   | 1,866 |  |
| Less: Current portion                                                                                 | 505 |  |   | 1,033 |  |
| Net long-term Financial Services operations debt                                                      | $ | 1,361 |  |   | $ | 833 |  |

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|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |
|                       | ManufacturingOperations   |   | FinancialServicesOperations   |   | Total   |
| (in millions)              |   |   |   |   |   |
| 2014                       | $ | 685 |  |   | $ | 505 |  |   | $ | 1,190 |  |
| 2015                       | 81 |  |   | 630 |  |   | 711 |  |
| 2016                       | 108 |  |   | 88 |  |   | 196 |  |
| 2017                       | 745 |  |   | 547 |  |   | 1,292 |  |
| 2018                       | 222 |  |   | 25 |  |   | 247 |  |
| Thereafter                 | 1,453 |  |   | 71 |  |   | 1,524 |  |
| Total debt                 | 3,294 |  |   | 1,866 |  |   | 5,160 |  |
| Less: Unamortized discount | 75 |  |   | — |  |   | 75 |  |
| Net debt                   | $ | 3,219 |  |   | $ | 1,866 |  |   | $ | 5,085 |  |

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|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                           | Pension Benefits |   | Health and LifeInsurance Benefits |
| (in millions)                                  | 2013 |   | 2012 |   | 2013 |   | 2012 |
| Change in benefit obligations                  |   |   |   |   |   |   |   |
| Benefit obligations at beginning of year       | $ | 4,492 |  |   | $ | 4,171 |  |   | $ | 1,866 |  |   | $ | 2,000 |  |
| Amendments                                     | 3 |  |   | — |  |   | — |  |   | — |  |
| Service cost                                   | 20 |  |   | 17 |  |   | 7 |  |   | 7 |  |
| Interest on obligations                        | 143 |  |   | 169 |  |   | 62 |  |   | 83 |  |
| Actuarial loss (gain)                          | (334 | ) |   | 462 |  |   | (142 | ) |   | (72 | ) |
| Curtailments                                   | (33 | ) |   | 4 |  |   | — |  |   | — |  |
| Contractual termination benefits               | — |  |   | 2 |  |   | — |  |   | (3 | ) |
| Retrospective payments due to retirees         | — |  |   | — |  |   | — |  |   | (2 | ) |
| Currency translation                           | (15 | ) |   | (5 | ) |   | — |  |   | — |  |
| Plan participants' contributions               | — |  |   | — |  |   | 28 |  |   | 20 |  |
| Subsidy receipts                               | — |  |   | — |  |   | 41 |  |   | 20 |  |
| Benefits paid                                  | (333 | ) |   | (328 | ) |   | (188 | ) |   | (187 | ) |
| Benefit obligations at end of year             | $ | 3,943 |  |   | $ | 4,492 |  |   | $ | 1,674 |  |   | $ | 1,866 |  |
| Change in plan assets                          |   |   |   |  |   |   |   |   |
| Fair value of plan assets at beginning of year | $ | 2,411 |  |   | $ | 2,392 |  |   | $ | 437 |  |   | $ | 463 |  |
| Actual return on plan assets                   | 284 |  |   | 186 |  |   | 66 |  |   | 27 |  |
| Currency translation                           | (22 | ) |   | (9 | ) |   | — |  |   | — |  |
| Employer contributions                         | 165 |  |   | 157 |  |   | 3 |  |   | 19 |  |
| Benefits paid                                  | (319 | ) |   | (315 | ) |   | (59 | ) |   | (72 | ) |
| Fair value of plan assets at end of year       | $ | 2,519 |  |   | $ | 2,411 |  |   | $ | 447 |  |   | $ | 437 |  |
| Funded status at year end                      | $ | (1,424 | ) |   | $ | (2,081 | ) |   | $ | (1,227 | ) |   | $ | (1,429 | ) |

|                                                                            |
|----------------------------------------------------------------------------|
|                                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                       | Pension Benefits |   | Health and LifeInsurance Benefits |
| (in millions)                                                              | 2013 |   | 2012 |   | 2013 |   | 2012 |
| Amounts recognized in our Consolidated Balance Sheets consist of:          |   |   |   |  |   |   |   |   |
| Current liability                                                          | $ | (14 | ) |   | $ | (14 | ) |   | $ | (73 | ) |   | $ | (92 | ) |
| Noncurrent liability                                                       | (1,410 | ) |   | (2,067 | ) |   | (1,154 | ) |   | (1,337 | ) |
| Net liability recognized                                                   | $ | (1,424 | ) |   | $ | (2,081 | ) |   | $ | (1,227 | ) |   | $ | (1,429 | ) |
|                                                                       |   |   |   |   |   |   |   |
| Amounts recognized in our accumulated other comprehensive loss consist of: |   |   |  |   |   |   |   |
| Net actuarial loss                                                         | $ | 1,947 |  |   | $ | 2,529 |  |   | $ | 354 |  |   | $ | 558 |  |
| Net prior service cost (benefit)                                           | 1 |  |   | 3 |  |   | (10 | ) |   | (13 | ) |
| Net amount recognized                                                      | $ | 1,948 |  |   | $ | 2,532 |  |   | $ | 344 |  |   | $ | 545 |  |

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|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |
| (in millions)                   | 2013 |   | 2012 |
| Projected benefit obligations   | $ | 3,943 |  |   | $ | 4,492 |  |
| Accumulated benefit obligations | 3,933 |  |   | 4,431 |  |
| Fair value of plan assets       | 2,519 |  |   | 2,411 |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                         | 2013 |   | 2012 |   | 2011 |
| Pension expense                       | $ | 116 |  |   | $ | 122 |  |   | $ | 139 |  |
| Health and life insurance expense     | 61 |  |   | 81 |  |   | 30 |  |
| Total postretirement benefits expense | $ | 177 |  |   | $ | 203 |  |   | $ | 169 |  |

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|                                                                                                      |
|------------------------------------------------------------------------------------------------------|
|                                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                 | Pension Benefits |   | Health and LifeInsurance Benefits |
| (in millions)                                                                                        | 2013 |   | 2012 |   | 2011 |   | 2013 |   | 2012 |   | 2011 |
| Service cost for benefits earned during the period                                                   | $ | 20 |  |   | $ | 17 |  |   | 17 |  |   | $ | 7 |  |   | $ | 7 |  |   | $ | 8 |  |
| Interest on obligation                                                                               | 143 |  |   | 169 |  |   | 189 |  |   | 62 |  |   | 83 |  |   | 56 |  |
| Amortization of cumulative loss                                                                      | 128 |  |   | 112 |  |   | 97 |  |   | 29 |  |   | 38 |  |   | 4 |  |
| Amortization of prior service cost (benefit)                                                         | 1 |  |   | 1 |  |   | 1 |  |   | (4 | ) |   | (5 | ) |   | (29 | ) |
| Curtailments                                                                                         | 4 |  |   | 5 |  |   | 2 |  |   | — |  |   | (3 | ) |   | 11 |  |
| Contractual termination benefits                                                                     | — |  |   | 2 |  |   | 38 |  |   | — |  |   | (2 | ) |   | 6 |  |
| Retrospective payments to retirees                                                                   | — |  |   | — |  |   | — |  |   | — |  |   | (2 | ) |   | 15 |  |
| Premiums on pension insurance                                                                        | 9 |  |   | 8 |  |   | 6 |  |   | — |  |   | — |  |   | — |  |
| Expected return on assets                                                                            | (189 | ) |   | (192 | ) |   | (211 | ) |   | (33 | ) |   | (35 | ) |   | (41 | ) |
| Net postretirement benefits expense                                                                  | $ | 116 |  |   | $ | 122 |  |   | $ | 139 |  |   | $ | 61 |  |   | $ | 81 |  |   | $ | 30 |  |
| Other Changes in plan assets and benefit obligations recognized in other comprehensive loss (income) |   |   |   |   |   |   |   |   |   |   |   |
| Actuarial net loss (gain)                                                                            | $ | (422 | ) |   | $ | 469 |  |   | $ | 374 |  |   | $ | (175 | ) |   | $ | (58 | ) |   | $ | 566 |  |
| Amortization of cumulative loss                                                                      | (128 | ) |   | (112 | ) |   | (97 | ) |   | (29 | ) |   | (38 | ) |   | (4 | ) |
| Prior service cost (benefit)                                                                         | (1 | ) |   | (1 | ) |   | — |  |   | — |  |   | — |  |   | 302 |  |
| Amortization of prior service benefit (cost)                                                         | (1 | ) |   | (1 | ) |   | (1 | ) |   | 4 |  |   | 5 |  |   | 29 |  |
| Curtailments                                                                                         | (33 | ) |   | — |  |   | (13 | ) |   | — |  |   | 3 |  |   | — |  |
| Currency translation                                                                                 | — |  |   | 2 |  |   | 4 |  |   | — |  |   | — |  |   | — |  |
| Total recognized in other comprehensive loss (income)                                                | $ | (585 | ) |   | $ | 357 |  |   | $ | 267 |  |   | $ | (200 | ) |   | $ | (88 | ) |   | $ | 893 |  |
| Total net postretirement benefits expense and other comprehensive loss (income)                      | $ | (469 | ) |   | $ | 479 |  |   | $ | 406 |  |   | $ | (139 | ) |   | $ | (7 | ) |   | $ | 923 |  |

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|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |
| (in millions)                                | Pension Benefits |   | Health and Life Insurance Benefits |
| Amortization of prior service cost (benefit) | $ | — |  |   | $ | (4 | ) |
| Amortization of cumulative losses            | 94 |  |   | 16 |  |

|                                                                                    |
|------------------------------------------------------------------------------------|
|                                                                                    |  |  |  |  |  |  |  |  |  |  |  |
|                                                                               | Pension Benefits |   | Health and Life Insurance Benefits |
|                                                                               | 2013 |   | 2012 |   | 2013 |   | 2012 |
| Discount rate used to determine present value of benefit obligation at end of year | 4.1 | % |   | 3.2 | % |   | 4.1 | % |   | 3.4 | % |
| Expected rate of increase in future compensation levels                            | 3.5 | % |   | 3.5 | % |   | — |  |   | — |  |

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                    | Pension Benefits |   | Health and Life                          Insurance Benefits |
|                                                    | 2013 |   | 2012 |   | 2011 |   | 2013 |   | 2012 |   | 2011 |
| Discount rate(A)                                        | 3.2 | % |   | 4.1 | % |   | 4.8 | % |   | 3.4 | % |   | 4.2 | % |   | 4.6 | % |
| Expected long-term rate of return on plan assets        | 8.0 | % |   | 8.3 | % |   | 8.5 | % |   | 8.0 | % |   | 8.3 | % |   | 8.5 | % |
| Expected rate of increase in future compensation levels | 3.5 | % |   | 3.5 | % |   | 3.5 | % |   | — |  |   | — |  |   | — |  |

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

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|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |
| (in millions)                                           | One-PercentagePoint Increase   |   | One-PercentagePoint Decrease   |
| Effect on total of service and interest cost components | $ | 8 |  |   | $ | (8 | ) |
| Effect on postretirement benefit obligation             | 182 |  |   | (153 | ) |

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

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

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

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

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

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

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|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                        | 2013 |   | 2012 |
| (in millions)               | Level 1 |   | Level 2 |   | Level 3 |   | Total |   | Level 1 |   | Level 2 |   | Level 3 |   | Total |
| Asset Category              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents   | $ | 107 |  |   | $ | — |  |   | $ | — |  |   | $ | 107 |  |   | $ | 85 |  |   | $ | — |  |   | $ | — |  |   | $ | 85 |  |
| Equity                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Large Cap              | 207 |  |   | — |  |   | — |  |   | 207 |  |   | 463 |  |   | — |  |   | — |  |   | 463 |  |
| U.S. Small-Mid Cap          | 350 |  |   | — |  |   | — |  |   | 350 |  |   | 271 |  |   | — |  |   | — |  |   | 271 |  |
| Canadian                    | 93 |  |   | — |  |   | — |  |   | 93 |  |   | 108 |  |   | — |  |   | — |  |   | 108 |  |
| International               | 254 |  |   | — |  |   | — |  |   | 254 |  |   | 186 |  |   | — |  |   | — |  |   | 186 |  |
| Emerging Markets            | 105 |  |   | — |  |   | — |  |   | 105 |  |   | 101 |  |   | — |  |   | — |  |   | 101 |  |
| Equity derivative           | — |  |   | — |  |   | (72 | ) |   | (72 | ) |   | — |  |   | — |  |   | 4 |  |   | 4 |  |
| Fixed Income                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate Bonds             | — |  |   | 494 |  |   | — |  |   | 494 |  |   | — |  |   | 136 |  |   | — |  |   | 136 |  |
| Government Bonds            | — |  |   | 147 |  |   | — |  |   | 147 |  |   | — |  |   | 547 |  |   | — |  |   | 547 |  |
| Asset Backed Securities     | — |  |   | 8 |  |   | — |  |   | 8 |  |   | — |  |   | 9 |  |   | — |  |   | 9 |  |
| Mortgage Backed Securities  | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 1 |  |   | — |  |   | 1 |  |
| Fixed income derivative     | — |  |   | — |  |   | (13 | ) |   | (13 | ) |   | — |  |   | — |  |   | 19 |  |   | 19 |  |
| Collective Trusts and Other |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common and Preferred Stock  | — |  |   | 583 |  |   | — |  |   | 583 |  |   | — |  |   | 244 |  |   | — |  |   | 244 |  |
| Commodities                 | — |  |   | 68 |  |   | — |  |   | 68 |  |   | — |  |   | 66 |  |   | — |  |   | 66 |  |
| Hedge Funds                 | — |  |   | — |  |   | 101 |  |   | 101 |  |   | — |  |   | — |  |   | 92 |  |   | 92 |  |
| Private Equity              | — |  |   | — |  |   | 103 |  |   | 103 |  |   | — |  |   | — |  |   | 92 |  |   | 92 |  |
| Exchange Traded Funds       | 6 |  |   | — |  |   | — |  |   | 6 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Mutual Funds                | 32 |  |   | — |  |   | — |  |   | 32 |  |   | 36 |  |   | — |  |   | — |  |   | 36 |  |
| Real Estate                 | — |  |   | — |  |   | 1 |  |   | 1 |  |   | — |  |   | — |  |   | 1 |  |   | 1 |  |
| Total(A)                    | $ | 1,154 |  |   | $ | 1,300 |  |   | $ | 120 |  |   | $ | 2,574 |  |   | $ | 1,250 |  |   | $ | 1,003 |  |   | $ | 208 |  |   | $ | 2,461 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | For both October 31, 2013 and 2012, the totals exclude $8 million  of receivables, which are included in the change in plan assets table. In addition, the table above includes the fair value of Canadian pension assets translated at the exchange rates as of October 31, 2013 and 2012, respectively, while the change in plan asset table includes the fair value of Canadian pension assets translated at historical foreign currency rates. |

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|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                         | Hedge Funds |   | Private Equity |   | Real Estate |   | Fixed Income Derivative |   | Equity Derivatives |
| Balance at November 1, 2011      | $ | 99 |  |   | $ | 75 |  |   | $ | 1 |  |   | $ | — |  |   | $ | — |  |
| Unrealized gains (losses)             | (1 | ) |   | 10 |  |   | — |  |   | 19 |  |   | 4 |  |
| Realized gains                        | 4 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Purchases, issuances, and settlements | (10 | ) |   | 7 |  |   | — |  |   | — |  |   | — |  |
| Balance at October 31, 2012      | $ | 92 |  |   | $ | 92 |  |   | $ | 1 |  |   | $ | 19 |  |   | $ | 4 |  |
| Unrealized gains (losses)             | 8 |  |   | 18 |  |   | — |  |   | (32 | ) |   | (90 | ) |
| Realized gains (losses)               | 1 |  |   | — |  |   | — |  |   | 4 |  |   | 10 |  |
| Purchases, issuances, and settlements | — |  |   | (7 | ) |   | — |  |   | (4 | ) |   | 4 |  |
| Balance at October 31, 2013      | $ | 101 |  |   | $ | 103 |  |   | $ | 1 |  |   | $ | (13 | ) |   | $ | (72 | ) |

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                        | 2013 |   | 2012 |
| (in millions)               | Level 1 |   | Level 2 |   | Level 3 |   | Total |   | Level 1 |   | Level 2 |   | Level 3 |   | Total |
| Asset Category              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents   | $ | 32 |  |   | $ | — |  |   | $ | — |  |   | $ | 32 |  |   | $ | 31 |  |   | $ | — |  |   | $ | — |  |   | $ | 31 |  |
| Equity                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Large Cap              | 28 |  |   | — |  |   | — |  |   | 28 |  |   | 82 |  |   | — |  |   | — |  |   | 82 |  |
| U.S. Small-Mid Cap          | 69 |  |   | — |  |   | — |  |   | 69 |  |   | 64 |  |   | — |  |   | — |  |   | 64 |  |
| Emerging Markets            | 22 |  |   | — |  |   | — |  |   | 22 |  |   | 22 |  |   | — |  |   | — |  |   | 22 |  |
| International               | 65 |  |   | — |  |   | — |  |   | 65 |  |   | 63 |  |   | — |  |   | — |  |   | 63 |  |
| Fixed Income                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate Bonds             | — |  |   | 52 |  |   | — |  |   | 52 |  |   | — |  |   | 49 |  |   | — |  |   | 49 |  |
| Government Bonds            | — |  |   | 43 |  |   | — |  |   | 43 |  |   | — |  |   | 66 |  |   | — |  |   | 66 |  |
| Asset Backed Securities     | — |  |   | 4 |  |   | — |  |   | 4 |  |   | — |  |   | 4 |  |   | — |  |   | 4 |  |
| Mortgage Backed Securities  | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Collective Trusts and Other |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common Stock                | — |  |   | 71 |  |   | — |  |   | 71 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Commodities                 | — |  |   | 13 |  |   | — |  |   | 13 |  |   | — |  |   | 13 |  |   | — |  |   | 13 |  |
| Hedge Funds                 | — |  |   | — |  |   | 21 |  |   | 21 |  |   | — |  |   | — |  |   | 19 |  |   | 19 |  |
| Private Equity              | — |  |   | — |  |   | 26 |  |   | 26 |  |   | — |  |   | — |  |   | 23 |  |   | 23 |  |
| Total(A)                    | $ | 216 |  |   | $ | 183 |  |   | $ | 47 |  |   | $ | 446 |  |   | $ | 262 |  |   | $ | 132 |  |   | $ | 42 |  |   | $ | 436 |  |

|     |                                                                                                                                                 |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | For both October 31, 2013 and 2012, the totals exclude $1 million of receivables, which are included in the change in plan asset table. |

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|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |
| (in millions)                         | Hedge Funds |   | Private Equity |
| Balance at November 1, 2011      | $ | 25 |  |   | $ | 19 |  |
| Unrealized gains (losses)             | (2 | ) |   | 2 |  |
| Realized gains                        | 2 |  |   | — |  |
| Purchases, issuances, and settlements | (6 | ) |   | 2 |  |
| Balance at October 31, 2012      | $ | 19 |  |   | $ | 23 |  |
| Unrealized gains (losses)             | 2 |  |   | 5 |  |
| Realized gains                        | — |  |   | — |  |
| Purchases, issuances, and settlements | — |  |   | (2 | ) |
| Balance at October 31, 2013      | $ | 21 |  |   | $ | 26 |  |

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|                   |
|-------------------|
|                   |  |  |  |  |  |  |  |
| (in millions)     | Pension Benefit Payments |   | Other Postretirement Benefit Payments(A) |
| 2014              | $ | 321 |  |   | $ | 126 |  |
| 2015              | 313 |  |   | 135 |  |
| 2016              | 305 |  |   | 128 |  |
| 2017              | 297 |  |   | 120 |  |
| 2018              | 289 |  |   | 115 |  |
| 2019 through 2023 | 1,326 |  |   | 532 |  |

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

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|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                | 2013 |   | 2012 |   | 2011 |
| Domestic                                                     | $ | (1,045 | ) |   | $ | (893 | ) |   | $ | 362 |  |
| Foreign                                                      | 71 |  |   | (218 | ) |   | 73 |  |
| Income (loss) from continuing operations before income taxes | $ | (974 | ) |   | $ | (1,111 | ) |   | $ | 435 |  |

|                                    |
|------------------------------------|
|                                    |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                      | 2013 |   | 2012 |   | 2011 |
| Current:                           |   |   |   |   |   |
| Federal                            | $ | 4 |  |   | $ | (2 | ) |   | $ | (3 | ) |
| State and local                    | (10 | ) |   | (11 | ) |   | 1 |  |
| Foreign                            | (58 | ) |   | 4 |  |   | (47 | ) |
| Total current benefit (expense)    | (64 | ) |   | (9 | ) |   | (49 | ) |
| Deferred:                          |   |   |   |   |   |
| Federal                            | 219 |  |   | (1,841 | ) |   | 1,380 |  |
| State and local                    | 2 |  |   | (137 | ) |   | 108 |  |
| Foreign                            | 14 |  |   | 207 |  |   | (22 | ) |
| Total deferred benefit (expense)   | 235 |  |   | (1,771 | ) |   | 1,466 |  |
| Total income tax benefit (expense) | $ | 171 |  |   | $ | (1,780 | ) |   | $ | 1,417 |  |

|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                     | 2013 |   | 2012 |   | 2011 |
| Federal income tax benefit (expense) at the statutory rate of 35% | $ | 341 |  |   | $ | 389 |  |   | $ | (155 | ) |
| State income taxes, net of federal benefit                        | (4 | ) |   | (6 | ) |   | (4 | ) |
| Credits and incentives                                            | — |  |   | 10 |  |   | 27 |  |
| Adjustments to valuation allowances                               | (350 | ) |   | (2,207 | ) |   | 1,499 |  |
| Foreign operations                                                | (8 | ) |   | (17 | ) |   | (19 | ) |
| Adjustments to uncertain tax positions                            | (16 | ) |   | 11 |  |   | 42 |  |
| Tax expense related to equity components                          | 220 |  |   | — |  |   | — |  |
| Non-controlling interest adjustment                               | 19 |  |   | 17 |  |   | 19 |  |
| Other                                                             | (31 | ) |   | 23 |  |   | 8 |  |
| Recorded income tax benefit (expense)                             | $ | 171 |  |   | $ | (1,780 | ) |   | $ | 1,417 |  |

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|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |
| (in millions)                             | 2013 |   | 2012 |
| Deferred tax assets attributable to:      |   |   |   |
| Employee benefits liabilities             | $ | 1,107 |  |   | $ | 1,419 |  |
| Net operating loss ("NOL") carry forwards | 840 |  |   | 583 |  |
| Product liability and warranty accruals   | 546 |  |   | 457 |  |
| Research and development                  | 26 |  |   | 49 |  |
| Tax credit carry forwards                 | 259 |  |   | 218 |  |
| Other                                     | 271 |  |   | 285 |  |
| Gross deferred tax assets                 | 3,049 |  |   | 3,011 |  |
| Less: Valuation allowances                | 2,773 |  |   | 2,664 |  |
| Net deferred tax assets                   | $ | 276 |  |   | $ | 347 |  |
| Deferred tax liabilities attributable to: |   |   |   |
| Goodwill and intangibles assets           | $ | (72 | ) |   | $ | (77 | ) |
| Other                                     | (5 | ) |   | (54 | ) |
| Total deferred tax liabilities            | $ | (77 | ) |   | $ | (131 | ) |

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|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |
| (in millions)                                                 | 2013 |
| Liability for uncertain tax positions at November 1           | $ | 90 |  |
| Increase as a result of positions taken in prior periods      | 12 |  |
| Decrease as a result of positions taken in the current period | (10 | ) |
| Settlements                                                   | (3 | ) |
| Lapse of statute of limitations                               | (1 | ) |
| Liability for uncertain tax positions at October 31           | $ | 88 |  |

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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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|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                              | October 31, 2013 |   | October 31, 2012 |
| (in millions)                     | Level 1 |   | Level 2 |   | Level 3 |   | Total |   | Level 1 |   | Level 2 |   | Level 3 |   | Total |
| Assets                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Marketable securities:            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury bills               | $ | 396 |  |   | $ | — |  |   | $ | — |  |   | $ | 396 |  |   | $ | 420 |  |   | $ | — |  |   | $ | — |  |   | $ | 420 |  |
| Other                             | 434 |  |   | — |  |   | — |  |   | 434 |  |   | 46 |  |   | — |  |   | — |  |   | 46 |  |
| Derivative financial instruments: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency contracts        | — |  |   | 4 |  |   | — |  |   | 4 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Interest rate caps                | — |  |   | 1 |  |   | — |  |   | 1 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Total assets                      | $ | 830 |  |   | $ | 5 |  |   | $ | — |  |   | $ | 835 |  |   | $ | 466 |  |   | $ | — |  |   | $ | — |  |   | $ | 466 |  |
| Liabilities                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative financial instruments: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity contracts               | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | 4 |  |   | $ | — |  |   | $ | 4 |  |
| Guarantees                        | — |  |   | — |  |   | 6 |  |   | 6 |  |   | — |  |   | — |  |   | 7 |  |   | 7 |  |
| Total liabilities                 | $ | — |  |   | $ | — |  |   | $ | 6 |  |   | $ | 6 |  |   | $ | — |  |   | $ | 4 |  |   | $ | 7 |  |   | $ | 11 |  |

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                            | 2013 |   | 2012 |
| (in millions)                                                   | Guarantees |   | Commodity contracts |   | Guarantees |   | Commodity contracts |
| Balance at November 1                                           | $ | (7 | ) |   | $ | — |  |   | $ | (6 | ) |   | $ | (2 | ) |
| Transfers out of Level 3                                        | — |  |   | — |  |   | — |  |   | 2 |  |
| Issuances                                                       | — |  |   | — |  |   | (1 | ) |   | — |  |
| Settlements                                                     | 1 |  |   | — |  |   | — |  |   | — |  |
| Balance at October 31                                           | $ | (6 | ) |   | $ | — |  |   | $ | (7 | ) |   | $ | — |  |
| Change in unrealized gains on assets and liabilities still held | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |
| (in millions)                                      | October 31, 2013 |   | October 31, 2012 |
| Level 2 financial instruments                      |   |   |   |
| Carrying value of impaired finance receivables (A) | $ | 15 |  |   | $ | 14 |  |
| Specific loss reserve                              | (6 | ) |   | (9 | ) |
| Fair value                                         | $ | 9 |  |   | $ | 5 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Certain impaired finance receivables are measured at fair value on a nonrecurring basis. An impairment charge is recorded for the amount by which the carrying value of the receivables exceeds the fair value of the underlying collateral, net of remarketing costs. 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 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, due serially through 2015                                  | 21 |  |   | — |  |   | — |  |   | 21 |  |   | 21 |  |
| Borrowings secured by operating and finance leases, at various rates, due serially through 2017 | — |  |   | — |  |   | 49 |  |   | 49 |  |   | 49 |  |

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

|     |                                                                                                                                                                                                                                                                            |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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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|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |
|                       | As of 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 cap          | Other noncurrent assets |   | 1 |  |   | Other noncurrent liabilities |   | — |  |
| Total fair value           |   | $ | 5 |  |   |   |   | $ | — |  |

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

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  | Location in Consolidated                                                                                                                                                             Statements of Operations |   | Amount of Loss (Gain) Recognized |
| (in millions)                         |   | 2013 |   | 2012 |   | 2011 |
| Cross currency swaps                  | Other expense (income), net |   | $ | — |  |   | $ | (1 | ) |   | $ | 8 |  |
| Foreign currency contracts            | Other expense (income), net |   | (4 | ) |   | 4 |  |   | (4 | ) |
| Commodity forward contracts | Costs of products sold |   | 2 |  |   | 8 |  |   | (14 | ) |
| Total loss (gain)                     |   | $ | (2 | ) |   | $ | 11 |  |   | $ | (10 | ) |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |
| (in millions)             | Currency |   | Notional Amount |   | Maturity |
| 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 |
| As of October 31, 2012    |   |   |   |   |   |
| Option collar contracts   | EUR |   | € | 25 |  |   | October 2012 - April 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 October 31, 2013, 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. |

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

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

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

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The Financial Services segment provides financing services to our Manufacturing operations, as well as finances certain sales to our dealers in North America, which include an interest-free period that varies in length, that are subsidized by our North America Truck and North America Parts segments. Certain retail sales financed by the Financial Services segment, primarily NFC, require the Manufacturing operations, primarily the North America Truck segment, to share a portion of any credit losses. |

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

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

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

|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                            | North America Truck |   | North America Parts |   | Global Operations |   | FinancialServices(A) |   | CorporateandEliminations |   | Total |
| Year Ended October 31, 2013                                              |   |   |   |   |   |   |   |   |   |   |   |
| External sales and revenues, net                                         | $ | 6,312 |  |   | $ | 2,558 |  |   | $ | 1,747 |  |   | $ | 158 |  |   | $ | — |  |   | $ | 10,775 |  |
| Intersegment sales and revenues                                          | 486 |  |   | 57 |  |   | 78 |  |   | 75 |  |   | (696 | ) |   | — |  |
| Total sales and revenues, net                                            | $ | 6,798 |  |   | $ | 2,615 |  |   | $ | 1,825 |  |   | $ | 233 |  |   | $ | (696 | ) |   | $ | 10,775 |  |
| Income (loss) from continuing operations attributable to NIC, net of tax | $ | (902 | ) |   | $ | 476 |  |   | $ | (6 | ) |   | $ | 81 |  |   | $ | (506 | ) |   | $ | (857 | ) |
| Income tax benefit                                                       | — |  |   | — |  |   | — |  |   | — |  |   | 171 |  |   | 171 |  |
| Segment profit (loss)                                                    | $ | (902 | ) |   | $ | 476 |  |   | $ | (6 | ) |   | $ | 81 |  |   | $ | (677 | ) |   | $ | (1,028 | ) |
| Depreciation and amortization                                            | $ | 305 |  |   | $ | 17 |  |   | $ | 32 |  |   | $ | 40 |  |   | $ | 23 |  |   | $ | 417 |  |
| Interest expense                                                         | — |  |   | — |  |   | — |  |   | 70 |  |   | 251 |  |   | 321 |  |
| Equity in income (loss) of non-consolidated affiliates                   | 10 |  |   | 6 |  |   | (5 | ) |   | — |  |   | — |  |   | 11 |  |
| Capital expenditures(B)                                                  | 142 |  |   | 2 |  |   | 9 |  |   | 2 |  |   | 12 |  |   | 167 |  |

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|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                            | North America Truck |   | North America Parts |   | Global Operations |   | FinancialServices(A) |   | CorporateandEliminations |   | Total |
| Year Ended October 31, 2012                                              |   |   |   |   |   |   |   |   |   |   |   |
| External sales and revenues, net                                         | $ | 7,946 |  |   | $ | 2,497 |  |   | $ | 2,084 |  |   | $ | 168 |  |   | $ | — |  |   | $ | 12,695 |  |
| Intersegment sales and revenues                                          | 442 |  |   | 124 |  |   | 126 |  |   | 91 |  |   | (783 | ) |   | — |  |
| Total sales and revenues, net                                            | $ | 8,388 |  |   | $ | 2,621 |  |   | $ | 2,210 |  |   | $ | 259 |  |   | $ | (783 | ) |   | $ | 12,695 |  |
| Income (loss) from continuing operations attributable to NIC, net of tax | $ | (736 | ) |   | $ | 343 |  |   | $ | (168 | ) |   | $ | 91 |  |   | $ | (2,469 | ) |   | $ | (2,939 | ) |
| Income tax expense                                                       | — |  |   | — |  |   | — |  |   | — |  |   | (1,780 | ) |   | (1,780 | ) |
| Segment profit (loss)                                                    | $ | (736 | ) |   | $ | 343 |  |   | $ | (168 | ) |   | $ | 91 |  |   | $ | (689 | ) |   | $ | (1,159 | ) |
| Depreciation and amortization                                            | $ | 216 |  |   | $ | 16 |  |   | $ | 36 |  |   | $ | 33 |  |   | $ | 22 |  |   | $ | 323 |  |
| Interest expense                                                         | — |  |   | — |  |   | — |  |   | 88 |  |   | 171 |  |   | 259 |  |
| Equity in income (loss) of non-consolidated affiliates                   | (1 | ) |   | 5 |  |   | (33 | ) |   | — |  |   | — |  |   | (29 | ) |
| Capital expenditures(B)                                                  | 173 |  |   | 21 |  |   | 50 |  |   | 3 |  |   | 62 |  |   | 309 |  |

|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                     | North America Truck |   | North America Parts |   | Global Operations |   | FinancialServices(A) |   | CorporateandEliminations |   | Total |
| Year Ended October 31, 2011                                       |   |   |   |   |   |   |   |   |   |   |   |
| External sales and revenues, net                                  | $ | 8,591 |  |   | $ | 2,562 |  |   | $ | 2,288 |  |   | $ | 200 |  |   | $ | — |  |   | $ | 13,641 |  |
| Intersegment sales and revenues                                   | 572 |  |   | 178 |  |   | 142 |  |   | 91 |  |   | (983 | ) |   | — |  |
| Total sales and revenues, net                                     | $ | 9,163 |  |   | $ | 2,740 |  |   | $ | 2,430 |  |   | $ | 291 |  |   | $ | (983 | ) |   | $ | 13,641 |  |
| Income from continuing operations attributable to NIC, net of tax | $ | 344 |  |   | $ | 397 |  |   | $ | 72 |  |   | $ | 129 |  |   | $ | 855 |  |   | $ | 1,797 |  |
| Income tax benefit                                                | — |  |   | — |  |   | — |  |   | — |  |   | 1,417 |  |   | 1,417 |  |
| Segment profit (loss)                                             | $ | 344 |  |   | $ | 397 |  |   | $ | 72 |  |   | $ | 129 |  |   | $ | (562 | ) |   | $ | 380 |  |
| Depreciation and amortization                                     | $ | 230 |  |   | $ | 16 |  |   | $ | 34 |  |   | $ | 28 |  |   | $ | 20 |  |   | $ | 328 |  |
| Interest expense                                                  | — |  |   | — |  |   | — |  |   | 109 |  |   | 138 |  |   | 247 |  |
| Equity in income (loss) of non-consolidated affiliates            | — |  |   | 5 |  |   | (76 | ) |   | — |  |   | — |  |   | (71 | ) |
| Capital expenditures(B)                                           | 171 |  |   | 19 |  |   | 84 |  |   | 2 |  |   | 153 |  |   | 429 |  |

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)          | North America Truck(C) |   | North America Parts |   | Global Operations |   | FinancialServices |   | CorporateandEliminations |   | Total |
| Segment assets, as of: |   |   |   |   |   |   |   |   |   |   |   |
| October 31, 2013       | $ | 2,250 |  |   | $ | 716 |  |   | $ | 1,162 |  |   | $ | 2,355 |  |   | $ | 1,832 |  |   | $ | 8,315 |  |
| October 31, 2012       | 2,481 |  |   | 782 |  |   | 1,333 |  |   | 2,563 |  |   | 1,943 |  |   | 9,102 |  |
| October 31, 2011       | 2,828 |  |   | 804 |  |   | 1,657 |  |   | 3,580 |  |   | 3,422 |  |   | 12,291 |  |

|     |                                                                                                                                                                                  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Total sales and revenues in the Financial Services segment include interest revenues of $181 million, $254 million, and $285 million for 2013, 2012, and 2011, respectively. |

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

|     |                                                                                                                                                                                  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (C) | The segment assets as of October 31, 2012 includes amounts related to discontinued operations. For more information, see Note 2, Discontinued Operations and Other Divestitures. |

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|                     |
|---------------------|
|                     |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)       | 2013 |   | 2012 |   | 2011 |
| Sales and revenues: |   |   |   |   |   |
| Trucks              | $ | 6,738 |  |   | $ | 8,705 |  |   | $ | 9,312 |  |
| Parts               | 2,906 |  |   | 2,886 |  |   | 2,901 |  |
| Engines             | 973 |  |   | 936 |  |   | 1,228 |  |
| Financial Services  | 158 |  |   | 168 |  |   | 200 |  |

|                     |
|---------------------|
|                     |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)       | 2013 |   | 2012 |   | 2011 |
| Sales and revenues: |   |   |   |   |   |
| United States       | $ | 7,122 |  |   | $ | 8,822 |  |   | $ | 9,329 |  |
| Canada              | 791 |  |   | 949 |  |   | 1,071 |  |
| Mexico              | 694 |  |   | 728 |  |   | 1,002 |  |
| Brazil              | 1,121 |  |   | 1,066 |  |   | 1,190 |  |
| Other               | 1,047 |  |   | 1,130 |  |   | 1,049 |  |

|                       |
|-----------------------|
|                       |  |  |  |  |  |  |  |
| (in millions)         | 2013 |   | 2012 |
| Long-lived assets:(A) |   |   |   |
| United States         | $ | 1,467 |  |   | $ | 1,519 |  |
| Canada                | 26 |  |   | 28 |  |
| Mexico                | 157 |  |   | 94 |  |
| Brazil                | 376 |  |   | 445 |  |
| Other                 | 37 |  |   | 25 |  |

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

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|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                            | 2013 |  | 2012 |  | 2011 |
| Defined benefit plans                    | $ | (1,749 | ) |  | $ | (2,302 | ) |  | $ | (2,045 | ) |
| Foreign currency translation adjustments | (75 | ) |  | (23 | ) |  | 101 |  |
| Accumulated other comprehensive loss     | $ | (1,824 | ) |  | $ | (2,325 | ) |  | $ | (1,944 | ) |

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|                                                                                 |
|---------------------------------------------------------------------------------|
|                                                                                 |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except per share data)                                            | 2013 |   | 2012 |   | 2011 |
| Numerator:                                                                      |   |   |   |   |   |
| Amounts attributable to Navistar International Corporation common stockholders: |   |   |   |   |   |
| Income (loss) from continuing operations, net of tax                            | $ | (857 | ) |   | $ | (2,939 | ) |   | $ | 1,797 |  |
| Loss from discontinued operations, net of tax                                   | (41 | ) |   | (71 | ) |   | (74 | ) |
| Net income (loss)                                                               | $ | (898 | ) |   | $ | (3,010 | ) |   | $ | 1,723 |  |
|                                                                            |   |   |   |   |   |
| Denominator:                                                                    |   |   |   |   |   |
| Weighted average shares outstanding:                                            |   |   |   |   |   |
| Basic                                                                           | 80.4 |  |   | 69.1 |  |   | 72.8 |  |
| Effect of dilutive securities                                                   | — |  |   | — |  |   | 3.3 |  |
| Diluted                                                                         | 80.4 |  |   | 69.1 |  |   | 76.1 |  |
|                                                                            |   |   |   |   |   |
| Earnings (loss) per share attributable to Navistar International Corporation:   |   |   |   |   |   |
| Basic:                                                                          |   |   |   |   |   |
| Continuing operations                                                           | $ | (10.66 | ) |   | $ | (42.53 | ) |   | $ | 24.68 |  |
| Discontinued operations                                                         | (0.51 | ) |   | (1.03 | ) |   | (1.02 | ) |
| Net income (loss)                                                               | $ | (11.17 | ) |   | $ | (43.56 | ) |   | $ | 23.66 |  |
| Diluted:                                                                        |   |   |   |   |   |
| Continuing operations                                                           | $ | (10.66 | ) |   | $ | (42.53 | ) |   | $ | 23.61 |  |
| Discontinued operations                                                         | (0.51 | ) |   | (1.03 | ) |   | (0.97 | ) |
| Net income (loss)                                                               | $ | (11.17 | ) |   | $ | (43.56 | ) |   | $ | 22.64 |  |

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|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Ownership Program—In June 1997, our Board of Directors approved the terms of the Ownership Program, and has since amended it from time to time. In general, the Ownership Program requires all officers and senior managers to acquire, by direct purchase or through salary or annual bonus reduction, an ownership interest in the Company by acquiring a designated amount of our common stock at specified timelines. Participants are required to hold such stock for the entire period in which they are employed by the Company. Participants may defer their cash bonus into deferred share units ("DSUs"), which vest immediately. There were 11,819 DSUs outstanding as of October 31, 2013. Premium share units ("PSUs") may also be awarded to participants who complete their ownership requirement on an accelerated basis. PSUs vest annually, pro rata over three years. There were 76,698 PSUs outstanding as of October 31, 2013. Each vested DSU |

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|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Deferred Fee Plan—Under the Deferred Fee Plan, non-employee directors may elect to defer payment of all or a portion of their retainer fees and meeting fees in cash (with interest) or in stock units. Deferrals in the deferred stock account are valued as if each deferral was vested in NIC common stock as of the deferral date. As of October 31, 2013, 40,555 deferred shares were outstanding under the Deferred Fee Plan.  The Deferred Fee Plan was amended and restated effective November 1, 2013 on a going forward basis. |

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                      | 2013 |   | 2012 |   | 2011 |
|                                      | Shares |   | Weighted Average Exercise Price |   | Shares |   | Weighted Average Exercise Price |   | Shares |   | Weighted Average Exercise Price |
|                                      | (in thousands) |   |   |   | (in thousands) |   |   |   | (in thousands) |   |   |
| Options outstanding, at beginning of year | 5,636 |  |   | $ | 37.89 |  |   | 4,500 |  |   | $ | 39.65 |  |   | 4,911 |  |   | $ | 33.81 |  |
| Granted                                   | 926 |  |   | 31.64 |  |   | 1,289 |  |   | 31.69 |  |   | 1,069 |  |   | 60.32 |  |
| Exercised                                 | (451 | ) |   | 26.16 |  |   | (71 | ) |   | 27.66 |  |   | (1,440 | ) |   | 34.87 |  |
| Forfeited/expired                         | (1,111 | ) |   | 37.24 |  |   | (82 | ) |   | 44.66 |  |   | (40 | ) |   | 47.06 |  |
| Options outstanding, at end of year       | 5,000 |  |   | 37.94 |  |   | 5,636 |  |   | 37.89 |  |   | 4,500 |  |   | 39.65 |  |
| Options exercisable, at end of year       | 3,468 |  |   | 38.22 |  |   | 3,672 |  |   | 36.96 |  |   | 3,064 |  |   | 36.07 |  |

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                        | Options Outstanding |
|                        | NumberOutstanding |   | Weighted Average Remaining Contractual Life |   | Weighted Average Exercise Price   |   | Aggregate Intrinsic Value |
| Range of Exercise Prices:   | (in thousands) |   | (in years) |   |   |   | (in millions) |
| $ 21.02 - $ 31.81 | 1,727 |  |   | 4.2 |  |   | $ | 23.24 |  |   | $ | 18.4 |  |
| $ 31.82 - $ 40.92 | 1,788 |  |   | 3.8 |  |   | 37.68 |  |   | 0.2 |  |
| $ 40.93 - $ 69.91 | 1,485 |  |   | 2.2 |  |   | 52.24 |  |   | — |  |

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                        | Options Exercisable |
|                        | NumberOutstanding |   | Weighted Average Remaining Contractual Life |   | Weighted Average Exercise Price   |   | Aggregate Intrinsic Value |
| Range of Exercise Prices:   | (in thousands) |   | (in years) |   |   |   | (in millions) |
| $ 21.02 - $ 31.81 | 1,122 |  |   | 3.8 |  |   | $ | 23.59 |  |   | $ | 14.1 |  |
| $ 31.82 - $ 40.92 | 1,086 |  |   | 2.6 |  |   | 38.48 |  |   | 0.1 |  |
| $ 40.93 - $ 69.91 | 1,260 |  |   | 1.9 |  |   | 51.02 |  |   | — |  |

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|                          |
|--------------------------|
|                          |  |  |  |  |  |  |  |  |
|                     | 2013 |   | 2012 |   | 2011 |
| Risk-free interest rate  | 0.8 | % |   | 0.8 | % |   | 2.0 | % |
| Dividend yield           | — | % |   | — | % |   | — | % |
| Expected volatility      | 54.7 | % |   | 55.6 | % |   | 45.9 | % |
| Expected life (in years) | 5.1 |  |   | 4.8 |  |   | 4.8 |  |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                            | 2013 |   | 2012 |   | 2011 |
|                            | Shares |   | Weighted Average Grant Date Fair Value |   | Shares |   | Weighted Average Grant Date Fair Value |   | Shares |   | Weighted Average Grant Date Fair Value |
|                            | (in thousands) |   |   |   | (in thousands) |   |   |   | (in thousands) |   |   |
| Nonvested, at beginning of year | 41 |  |   | $ | 24.13 |  |   | — |  |   | $ | — |  |   | 10 |  |   | $ | 35.81 |  |
| Granted                         | 2 |  |   | 34.19 |  |   | 44 |  |   | 25.06 |  |   | 1 |  |   | 69.75 |  |
| Vested                          | (2 | ) |   | 34.19 |  |   | (3 | ) |   | 40.76 |  |   | (10 | ) |   | 39.76 |  |
| Forfeited                       | — |  |   | — |  |   |  |  |   | — |  |   | (1 | ) |   | 35.81 |  |
| Nonvested, at end of year       | 41 |  |   | 24.13 |  |   | 41 |  |   | 24.13 |  |   | — |  |   | — |  |

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|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                            | Share-Settled Restricted Stock Units |
|                            | 2013 |   | 2012 |   | 2011 |
|                            | Shares |   | Weighted Average Grant Date Fair Value |   | Shares |   | Weighted Average Grant Date Fair Value |   | Shares |   | Weighted Average Grant Date Fair Value |
|                            | (in thousands) |   |   |   | (in thousands) |   |   |   | (in thousands) |   |   |
| Nonvested, at beginning of year | 77 |  |   | $ | 45.93 |  |   | 162 |  |   | $ | 35.54 |  |   | 449 |  |   | $ | 45.42 |  |
| Granted                         | 316 |  |   | 28.13 |  |   | 6 |  |   | 42.19 |  |   | 42 |  |   | 53.72 |  |
| Vested                          | (26 | ) |   | 35.84 |  |   | (90 | ) |   | 27.22 |  |   | (323 | ) |   | 51.33 |  |
| Forfeited                       | (68 | ) |   | 39.13 |  |   | (1 | ) |   | 33.97 |  |   | (6 | ) |   | 48.35 |  |
| Nonvested, at end of year       | 299 |  |   | 29.54 |  |   | 77 |  |   | 45.93 |  |   | 162 |  |   | 35.54 |  |
|                            |   |   |   |   |   |   |   |   |   |   |   |
|                            | Cash-Settled Restricted Stock Units |
|                            | 2013 |   | 2012 |   | 2011 |
|                            | Shares |   | Weighted Average Grant Date Fair Value |   | Shares |   | Weighted Average Grant Date Fair Value |   | Shares |   | Weighted Average Grant Date Fair Value |
|                            | (in thousands) |   |   |   | (in thousands) |   |   |   | (in thousands) |   |   |
| Nonvested, at beginning of year | 463 |  |   | $ | 43.20 |  |   | 393 |  |   | $ | 48.80 |  |   | 275 |  |   | $ | 35.81 |  |
| Granted                         | 3 |  |   | 27.24 |  |   | 285 |  |   | 37.10 |  |   | 225 |  |   | 59.25 |  |
| Vested                          | (215 | ) |   | 42.71 |  |   | (158 | ) |   | 46.18 |  |   | (90 | ) |   | 35.81 |  |
| Forfeited                       | (57 | ) |   | 42.46 |  |   | (57 | ) |   | 43.58 |  |   | (17 | ) |   | 46.53 |  |
| Nonvested, at end of year       | 194 |  |   | 43.74 |  |   | 463 |  |   | 43.20 |  |   | 393 |  |   | 48.80 |  |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                            | 2013 |   | 2012 |   | 2011 |
|                            | Shares |   | Weighted Average Grant Date Fair Value |   | Shares |   | Weighted Average Grant Date Fair Value |   | Shares |   | Weighted Average Grant Date Fair Value |
|                            | (in thousands) |   |   |   | (in thousands) |   |   |   | (in thousands) |   |   |
| Nonvested, at beginning of year | 314 |  |   | $ | 68.03 |  |   | 161 |  |   | $ | 84.75 |  |   | — |  |   | $ | — |  |
| Granted                         | — |  |   | — |  |   | 153 |  |   | 50.52 |  |   | 161 |  |   | 84.75 |  |
| Vested                          | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Forfeited                       | (142 | ) |   | 66.09 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Nonvested, at end of year       | 172 |  |   | 69.64 |  |   | 314 |  |   | 68.03 |  |   | 161 |  |   | 84.75 |  |

|                         |
|-------------------------|
|                         |  |  |  |  |  |
|                         | 2012 |   | 2011 |
| Risk-free interest rate | 0.8 | % |   | 2.0 | % |
| Dividend yield          | — | % |   | — | % |
| Expected volatility     | 52.3 | % |   | 47.3 | % |

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Table of Contents

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     | Service and Performance |   | Service and Market |
|                                     | Shares |   | Weighted Average Exercise Price |   | Shares |   | Weighted Average Exercise Price |
|                                     | (in thousands) |   |  |   | (in thousands) |   |   |
| Options outstanding, at October 31, 2012 | — |  |   | $ | — |  |   | — |  |   | $ | — |  |
| Granted                                  | 299 |  |   | 34.47 |  |   | 917 |  |   | 27.24 |  |
| Exercised                                | — |  |   | — |  |   | — |  |   | — |  |
| Forfeited                                | — |  |   | — |  |   | (158 | ) |   | 27.24 |  |
| Options outstanding, at October 31, 2013 | 299 |  |   | 34.47 |  |   | 759 |  |   | 27.24 |  |
| Options exercisable, at October 31, 2013 | — |  |   | — |  |   | — |  |   | — |  |

|                                   |
|-----------------------------------|
|                                   |  |  |  |
|                                   | 2013 |
| Risk-free interest rate           | 0.90 | % |
| Dividend yield                    | — | % |
| Expected volatility               | 55.39 | % |
| Expected life (in years)          | 5 |  |
| Monte Carlo Simulation Fair Value | $ | 12.41 |  |

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Table of Contents

|                               |
|-------------------------------|
|                               |  |  |  |  |  |  |
|                          | Shares |   | Weighted Average Grant Date Fair Value |
|                          | (in thousands) |   |   |
| Nonvested at October 31, 2012 | — |  |   | $ | — |  |
| Granted                       | 762 |  |   | 28.19 |  |
| Vested                        | — |  |   | — |  |
| Forfeited                     | (110 | ) |   | 27.24 |  |
| Nonvested at October 31, 2013 | 652 |  |   | 28.35 |  |

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Table of Contents

|                                                                                       |
|---------------------------------------------------------------------------------------|
|                                                                                       |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                         | 2013 |   | 2012 |   | 2011 |
| Equity in income of affiliated companies, net of dividends                            |   |   |   |   |   |
| Equity in loss (income) of non-consolidated affiliates                                | $ | (11 | ) |   | $ | 29 |  |   | $ | 71 |  |
| Dividends from non-consolidated affiliates                                            | 13 |  |   | 7 |  |   | 4 |  |
| Equity in loss of non-consolidated affiliates, net of dividends                       | $ | 2 |  |   | $ | 36 |  |   | $ | 75 |  |
| Other non-cash operating activities                                                   |   |   |   |   |   |
| Loss on sales of affiliates                                                           | $ | — |  |   | $ | 3 |  |   | $ | — |  |
| Gain on increased equity interest in subsidiary                                       | — |  |   | — |  |   | (6 | ) |
| Loss on sale of property and equipment                                                | 5 |  |   | 4 |  |   | 2 |  |
| Gain on sale and impairment of repossessed collateral                                 | — |  |   | — |  |   | (1 | ) |
| Gain on settlement of financing arrangement                                           | — |  |   | — |  |   | (10 | ) |
| Income from operating leases                                                          | (75 | ) |   | — |  |   | — |  |
| Other non-cash operating activities                                                   | $ | (70 | ) |   | $ | 7 |  |   | $ | (15 | ) |
| Changes in other assets and liabilities                                               |   |   |   |   |   |
| Other current assets                                                                  | $ | 6 |  |   | $ | 1 |  |   | $ | (28 | ) |
| Other noncurrent assets                                                               | (46 | ) |   | 16 |  |   | (32 | ) |
| Other current liabilities                                                             | 144 |  |   | 198 |  |   | 130 |  |
| Postretirement benefits liabilities                                                   | (58 | ) |   | (79 | ) |   | 9 |  |
| Other noncurrent liabilities                                                          | 190 |  |   | 292 |  |   | 94 |  |
| Other, net                                                                            | 4 |  |   | (8 | ) |   | (9 | ) |
| Changes in other assets and liabilities                                               | $ | 240 |  |   | $ | 420 |  |   | $ | 164 |  |
| Cash paid during the year                                                             |   |   |   |   |   |
| Interest, net of amounts capitalized                                                  | $ | 237 |  |   | $ | 195 |  |   | $ | 208 |  |
| Income taxes, net of refunds                                                          | (6 | ) |   | 51 |  |   | 9 |  |
| Non-cash investing and financing activities                                           |   |   |   |   |   |
| Property and equipment acquired under capital leases                                  | $ | — |  |   | $ | 58 |  |   | $ | — |  |
| Transfers (to)/from inventories (from)/to property and equipment for leases to others | (10 | ) |   | 37 |  |   | 9 |  |

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Table of Contents

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

|                                                                                                      |
|------------------------------------------------------------------------------------------------------|
|                                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                                        | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Condensed Consolidating Statement of Comprehensive Income (Loss) for the Year Ended October 31, 2013 |   |   |   |   |   |   |   |   |   |
| Net income (loss) attributable to Navistar International Corporation                                 | $ | (898 | ) |   | $ | (1,074 | ) |   | $ | 408 |  |   | $ | 666 |  |   | $ | (898 | ) |
| Other comprehensive income (loss):                                                                   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                                              | (51 | ) |   | — |  |   | (51 | ) |   | 51 |  |   | (51 | ) |
| Defined benefit plans (net of tax of $(21), $5, $(26), $21, and $(21), respectively)                 | 552 |  |   | 687 |  |   | 74 |  |   | (761 | ) |   | 552 |  |
| Total other comprehensive income (loss)                                                              | 501 |  |   | 687 |  |   | 23 |  |   | (710 | ) |   | 501 |  |
| Total comprehensive income (loss) attributable to Navistar International Corporation                 | $ | (397 | ) |   | $ | (387 | ) |   | $ | 431 |  |   | $ | (44 | ) |   | $ | (397 | ) |

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Table of Contents

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                           | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Condensed Consolidating Balance Sheet as of October 31, 2013                       |   |   |   |   |   |   |   |   |   |
| 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 |  |

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

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Table of Contents

|                                                                                     |
|-------------------------------------------------------------------------------------|
|                                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                       | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Condensed Consolidating Statement of Operations for the Year Ended October 31, 2012 |   |   |   |   |   |   |   |   |   |
| Sales and revenues, net                                                             | $ | — |  |   | $ | 7,924 |  |   | $ | 11,413 |  |   | $ | (6,642 | ) |   | $ | 12,695 |  |
| Costs of products sold                                                              | — |  |   | 8,188 |  |   | 9,798 |  |   | (6,585 | ) |   | 11,401 |  |
| Restructuring charges                                                               | — |  |   | 86 |  |   | 21 |  |   | — |  |   | 107 |  |
| Asset impairment charges                                                            | — |  |   | 2 |  |   | 14 |  |   | — |  |   | 16 |  |
| All other operating expenses (income)                                               | (249 | ) |   | 1,297 |  |   | 968 |  |   | 237 |  |   | 2,253 |  |
| Total costs and expenses                                                            | (249 | ) |   | 9,573 |  |   | 10,801 |  |   | (6,348 | ) |   | 13,777 |  |
| Equity in income (loss) of affiliates                                               | (3,258 | ) |   | 536 |  |   | (34 | ) |   | 2,727 |  |   | (29 | ) |
| Income (loss) before income taxes                                                   | (3,009 | ) |   | (1,113 | ) |   | 578 |  |   | 2,433 |  |   | (1,111 | ) |
| Income tax benefit (expense)                                                        | (1 | ) |   | (1,987 | ) |   | 209 |  |   | (1 | ) |   | (1,780 | ) |
| Earnings (loss) from continuing operations                                          | (3,010 | ) |   | (3,100 | ) |   | 787 |  |   | 2,432 |  |   | (2,891 | ) |
| Loss from discontinued operations, net of tax                                       | — |  |   | — |  |   | (71 | ) |   | — |  |   | (71 | ) |
| Net income (loss)                                                                   | (3,010 | ) |   | (3,100 | ) |   | 716 |  |   | 2,432 |  |   | (2,962 | ) |
| Less: Net income attributable to non-controlling interests                          | — |  |   | — |  |   | 48 |  |   | — |  |   | 48 |  |
| Net income (loss) attributable to Navistar International Corporation                | $ | (3,010 | ) |   | $ | (3,100 | ) |   | $ | 668 |  |   | $ | 2,432 |  |   | $ | (3,010 | ) |

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

----

Table of Contents

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

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

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|                                                                                     |
|-------------------------------------------------------------------------------------|
|                                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                       | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Condensed Consolidating Statement of Operations for the Year Ended October 31, 2011 |   |   |   |   |   |   |   |   |   |
| Sales and revenues, net                                                             | $ | — |  |   | $ | 8,319 |  |   | $ | 12,885 |  |   | $ | (7,563 | ) |   | $ | 13,641 |  |
| Costs of products sold                                                              | — |  |   | 7,775 |  |   | 10,649 |  |   | (7,487 | ) |   | 10,937 |  |
| Restructuring charges                                                               | — |  |   | 33 |  |   | 49 |  |   | — |  |   | 82 |  |
| Asset impairment charges                                                            | — |  |   | — |  |   | 13 |  |   | — |  |   | 13 |  |
| All other operating expenses (income)                                               | 79 |  |   | 1,263 |  |   | 856 |  |   | (95 | ) |   | 2,103 |  |
| Total costs and expenses                                                            | 79 |  |   | 9,071 |  |   | 11,567 |  |   | (7,582 | ) |   | 13,135 |  |
| Equity in income (loss) of affiliates                                               | 1,759 |  |   | 462 |  |   | (37 | ) |   | (2,255 | ) |   | (71 | ) |
| Income (loss) before income taxes                                                   | 1,680 |  |   | (290 | ) |   | 1,281 |  |   | (2,236 | ) |   | 435 |  |
| Income tax benefit (expense)                                                        | 43 |  |   | 1,937 |  |   | (552 | ) |   | (11 | ) |   | 1,417 |  |
| Earnings (loss) from continuing operations                                          | 1,723 |  |   | 1,647 |  |   | 729 |  |   | (2,247 | ) |   | 1,852 |  |
| Loss from discontinued operations, net of tax                                       | — |  |   | — |  |   | (74 | ) |   | — |  |   | (74 | ) |
| Net income (loss)                                                                   | 1,723 |  |   | 1,647 |  |   | 655 |  |   | (2,247 | ) |   | 1,778 |  |
| Less: Net income attributable to non-controlling interests                          | — |  |   | — |  |   | 55 |  |   | — |  |   | 55 |  |
| Net income (loss) attributable to Navistar International Corporation                | $ | 1,723 |  |   | $ | 1,647 |  |   | $ | 600 |  |   | $ | (2,247 | ) |   | $ | 1,723 |  |

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

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

|                                                                                 |
|---------------------------------------------------------------------------------|
|                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                            | 1st Quarter Ended January 31, |   | 2nd Quarter Ended April 30, |
| (in millions, except for per share data and stock prices)                       | 2013 |   | 2012 |   | 2013 |   | 2012 |
| Sales and revenues, net                                                         | $ | 2,637 |  |   | $ | 3,009 |  |   | $ | 2,526 |  |   | $ | 3,261 |  |
| Manufacturing gross margin(A)(B)                                                | 312 |  |   | 315 |  |   | 124 |  |   | 318 |  |
| Amounts attributable to Navistar International Corporation common shareholders: |   |   |   |   |   |   |
| Loss from continuing operations, net of tax(C)                                  | $ | (114 | ) |   | $ | (144 | ) |   | $ | (353 | ) |   | $ | (138 | ) |
| Loss from discontinued operations, net of tax                                   | (9 | ) |   | (9 | ) |   | (21 | ) |   | (34 | ) |
| Net loss                                                                        | $ | (123 | ) |   | $ | (153 | ) |   | $ | (374 | ) |   | $ | (172 | ) |
| Loss per share attributable to Navistar International Corporation:              |   |   |   |   |   |   |   |
| Basic:                                                                          |   |   |   |   |   |   |   |
| Continuing operations                                                           | $ | (1.42 | ) |   | $ | (2.06 | ) |   | $ | (4.39 | ) |   | $ | (2.01 | ) |
| Discontinued operations                                                         | (0.11 | ) |   | (0.13 | ) |   | (0.26 | ) |   | (0.49 | ) |
|                                                                            | $ | (1.53 | ) |   | $ | (2.19 | ) |   | $ | (4.65 | ) |   | $ | (2.50 | ) |
| Diluted:                                                                        |   |   |   |   |   |   |   |
| Continuing operations                                                           | $ | (1.42 | ) |   | $ | (2.06 | ) |   | $ | (4.39 | ) |   | $ | (2.01 | ) |
| Discontinued operations                                                         | (0.11 | ) |   | (0.13 | ) |   | (0.26 | ) |   | (0.49 | ) |
|                                                                            | $ | (1.53 | ) |   | $ | (2.19 | ) |   | $ | (4.65 | ) |   | $ | (2.50 | ) |
| Market price range-common stock:                                                |   |   |   |   |   |   |   |
| High                                                                            | $ | 26.90 |  |   | $ | 45.44 |  |   | $ | 37.65 |  |   | $ | 48.18 |  |
| Low                                                                             | 18.78 |  |   | 33.74 |  |   | 23.25 |  |   | 32.68 |  |

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|                                                                                 |
|---------------------------------------------------------------------------------|
|                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                            | 3rd Quarter Ended July 31, |   | 4th Quarter Ended October 31, |
| (in millions, except for per share data and stock prices)                       | 2013 |   | 2012 |   | 2013 |   | 2012 |
| Sales and revenues, net                                                         | $ | 2,861 |  |   | $ | 3,246 |  |   | $ | 2,751 |  |   | $ | 3,179 |  |
| Manufacturing gross margin(A)(B)                                                | 273 |  |   | 404 |  |   | 147 |  |   | 89 |  |
| Amounts attributable to Navistar International Corporation common shareholders: |   |   |   |   |   |   |
| Income (loss) from continuing operations, net of tax(C)                         | $ | (237 | ) |   | $ | 80 |  |   | $ | (153 | ) |   | $ | (2,737 | ) |
| Income (loss) from discontinued operations, net of tax                          | (10 | ) |   | 4 |  |   | (1 | ) |   | (32 | ) |
| Net income (loss)                                                               | $ | (247 | ) |   | $ | 84 |  |   | $ | (154 | ) |   | $ | (2,769 | ) |
| Earnings (loss) per share attributable to Navistar International Corporation:   |   |   |   |   |   |   |   |
| Basic:                                                                          |   |   |   |   |   |   |   |
| Continuing operations                                                           | $ | (2.94 | ) |   | $ | 1.16 |  |   | $ | (1.90 | ) |   | $ | (39.67 | ) |
| Discontinued operations                                                         | (0.12 | ) |   | 0.06 |  |   | (0.01 | ) |   | (0.46 | ) |
|                                                                            | $ | (3.06 | ) |   | $ | 1.22 |  |   | $ | (1.91 | ) |   | $ | (40.13 | ) |
| Diluted:                                                                        |   |   |   |   |   |   |   |
| Continuing operations                                                           | $ | (2.94 | ) |   | $ | 1.16 |  |   | $ | (1.90 | ) |   | $ | (39.67 | ) |
| Discontinued operations                                                         | (0.12 | ) |   | 0.06 |  |   | (0.01 | ) |   | (0.46 | ) |
|                                                                            | $ | (3.06 | ) |   | $ | 1.22 |  |   | $ | (1.91 | ) |   | $ | (40.13 | ) |
| Market price range-common stock:                                                |   |   |   |   |   |   |   |
| High                                                                            | $ | 38.81 |  |   | $ | 35.25 |  |   | $ | 39.79 |  |   | $ | 26.48 |  |
| Low                                                                             | 25.56 |  |   | 20.21 |  |   | 31.88 |  |   | 18.17 |  |

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

|     |                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B) | We record adjustments to our product warranty accrual to reflect changes in our estimate of warranty costs for products sold in prior periods. Such adjustments typically occur when claims experience deviates from historic and expected trends. In the fourth quarter of  2013 and 2012, we recorded adjustments for changes in estimates of $152 million  and $149 million, respectively. |

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

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

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

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

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

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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1) | Navistar does 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. Although we did not experience any material misstatements in the amounts that we had previously reported in our financial statements, we believe that we have a material weakness in our internal controls over financial reporting such that a material misstatement in our financial statements could occur. |

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2) | Navistar did not maintain effective controls over the presentation of income tax expense between different categories of income. As a result, a material misstatement of income tax expense occurred in both the Consolidated Statements of Operations and Consolidated Statements of Other Comprehensive Income. Specifically, Navistar did not apply the exception within the intraperiod 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. The presentation error only affected the fourth quarter of fiscal 2013 and was identified and corrected in the same period prior to the filing of this report. |

|    |                                                                                                                                                                                                                                  |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1) | Management intends to design, document, and test 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) | Management already has a control in place in which outside tax advisors review the tax provision each quarter. To further strengthen controls, management intends to enhance its quarterly discussions with our outside tax advisors to anticipate any business developments that could affect the determination or presentation of income tax expense. |

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

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Table of Contents

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

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

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

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

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

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|           |
|-----------|
|           |  |  |  |  |
| Exhibit:  |   | Description |   | Page |
|      |   |   |   |   |
| (3)       |   | Articles of Incorporation and By-Laws |   | E-1 |
| (4)       |   | Instruments Defining Rights of Security Holders, including Indentures |   | E-2 |
| (10)      |   | Material Contracts |   | E-3 |
| (11)      |   | Computation of Earnings (loss) per Share (incorporated by reference from Note 18. Earnings (Loss) Per Share Attributable to Navistar International Corporation, to the accompanying consolidated financial statements) |   | 131 |
| (12)      |   | Computation of Ratio of Earnings to Fixed Charges |   | E-16 |
| (21)      |   | Subsidiaries of the Registrant |   | E-17 |
| (23.1)    |   | Consent of Independent Registered Public Accounting Firm |   | E-18 |
| (24)      |   | Power of Attorney |   | E-19 |
| (31.1)    |   | CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |   | E-20 |
| (31.2)    |   | CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |   | E-21 |
| (32.1)    |   | CEO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |   | E-22 |
| (32.2)    |   | CFO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |   | E-23 |
| (99.1)    |   | Additional Financial Information (Unaudited) |   | E-24 |
| (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 |

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

|                                  |
|----------------------------------|
|                                  |  |  |  |  |
| Signature                        |   | Title |   | Date |
|                             |   |   |   |   |
| /s/   TROY A. CLARKE        |   | President andChief Executive Officer and Director(Principal Executive Officer) |   | December 20, 2013 |
| Troy A. Clarke                   |   |   |   |
|                             |   |   |   |   |
| /s/   WALTER G. BORST       |   | Executive Vice President andChief Financial Officer(Principal Financial Officer) |   | December 20, 2013 |
| Walter G. Borst                  |   |   |   |
|                             |   |   |   |   |
| /s/   RICHARD C. TARAPCHAK  |   | Senior Vice President and Corporate Controller (Principal Accounting Officer) |   | December 20, 2013 |
| Richard Tarapchak                |   |   |   |
|                             |   |   |   |   |
| /s/   JOHN D. CORRENTI      |   | Director |   | December 20, 2013 |
| John D. Correnti                 |   |   |   |   |
|                             |   |   |   |   |
| /s/   MICHAEL N. HAMMES     |   | Director |   | December 20, 2013 |
| Michael N. Hammes                |   |   |   |   |
|                             |   |   |   |   |
| /s/   VINCENT J. INTRIERI   |   | Director |   | December 20, 2013 |
| Vincent J. Intrieri              |   |   |   |   |
|                             |   |   |   |   |
| /s/   JAMES H. KEYES        |   | Director |   | December 20, 2013 |
| James H. Keyes                   |   |   |   |   |
|                             |   |   |   |   |
| /s/   STANLEY A. MCCHRYSTAL |   | Director |   | December 20, 2013 |
| Stanley A. McChrystal            |   |   |   |   |
|                             |   |   |   |   |
| /s/   SAMUEL J. MERKSAMER   |   | Director |   | December 20, 2013 |
| Samuel J. Merksamer              |   |   |   |   |
|                             |   |   |   |   |
| /s/   MARK H. RACHESKY      |   | Director |   | December 20, 2013 |
| Mark H. Rachesky                 |   |   |   |   |
|                             |   |   |   |   |
| /s/   DENNIS D. WILLIAMS    |   | Director |   | December 20, 2013 |
| Dennis D. Williams               |   |   |   |   |