Q1 2019 EARNINGS PRESENTATION                                                                                                                                                                                                  March 8, 2019               ® International is a registered trademark of                     , Inc.                                                                                                                                      NYSE: NAV
 Safe Harbor Statement and Other Cautionary Notes   Information provided and statements contained in this report that are not purely historical are forward-looking statements within  the meaning of the federal securities laws. Such forward-looking statements only speak as of the date of this report and the  company assumes no obligation to update the information included in this report. Such forward-looking statements include  information concerning our possible or assumed future results of operations, including descriptions of our business strategy. These statements often include words such as believe, expect, anticipate, intend, plan, estimate, or similar expressions. These  statements are not guarantees of performance or results and they involve risks, uncertainties, and assumptions. For a further description of these factors, see the risk factors set forth in our filings with the Securities and Exchange Commission, including our  annual report on Form 10-K for the fiscal year ended October 31, 2018. Although we believe that these forward-looking  statements are based on reasonable assumptions, there are many factors that could affect our actual financial results or results of  operations and could cause actual results to differ materially from those in the forward-looking statements. All future written and  oral forward-looking statements by us or persons acting on our behalf are expressly qualified in their entirety by the cautionary  statements contained or referred to above. Except for our ongoing obligations to disclose material information as required by the  federal securities laws, we do not have any obligations or intention to release publicly any revisions to any forward-looking  statements to reflect events or circumstances in the future or to reflect the occurrence of unanticipated events.  The financial information herein contains audited and unaudited information and has been prepared by management in good  faith and based on data currently available to the company.   Certain non-GAAP measures are used in this presentation to assist the reader in understanding our core manufacturing  business. We believe this information is useful and relevant to assess and measure the performance of our core manufacturing  business as it illustrates manufacturing performance. It also excludes financial services and other items that may not be related to  the core manufacturing business or underlying results. Management often uses this information to assess and measure the  underlying performance of our operating segments. We have chosen to provide this supplemental information to investors,  analysts, and other interested parties to enable them to perform additional analyses of operating results. The non-GAAP numbers  are reconciled to the most appropriate GAAP number in the appendix of this presentation.                                                                                              Q1 2019 Earnings – 3/8/2019                                                                                                       NYSE: NAV 2
 First Quarter 2019 Highlights  • Revenue up 28%, led by 44% increase in Truck revenue    • Core market share up 1.8 points, led by a 6 point share increase in Class 6/7  • Core chargeouts up 50% to 18,900  • Backlogs rose 18% from year-end, doubled year-over-year  • Adjusted EBITDA up 66% to $173 million  • Net income $11 million, versus prior year loss  • Uptime leadership expanding through service partnership with Love’s Travel Stops  • Standard & Poor's credit rating upgrade to B from B-  • Canadian pension annuity transaction further de-risks balance sheet  • Sales of 70% interest in Navistar Defense and interest in JND joint venture closed    Note: This slide contains non-GAAP information; please see the REG G in appendix for a detailed reconciliation.  Q1 2019 Earnings – 3/8/2019                                                                           NYSE: NAV 3
 Strong Growth in All Key Categories  ($ in millions, except per share and units)                                                                                                            Quarters Ended                                                                                                                January 31(A)                                                                                                            2019                   2018                      Chargeouts(B)                                                                        18,900                  12,600                       Sales and revenues                                                             $       2,433            $      1,905                       Net income (Loss)(C)                                                           $             11         $         (73)                      Diluted income per share (Loss)(C)                                             $          0.11          $       (0.74)                      Adjusted EBITDA                                                                $          173           $         104                      Adjusted EBITDA margin                                                                    7.1%                   5.5%   (A) 2019 results reflect ASC 606 while 2018 results are as reported Note: This slide contains non-GAAP information; please see the REG G in                                                                                                                                       Q1 2019 Earnings – 3/8/2019  (B) Includes U.S. and Canada School buses and Class 6-8 trucks.        appendix for a detailed reconciliation.   (C) Amounts attributable to Navistar International Corporation.                                                                                  NYSE: NAV      4
 All Segments Growing Profitability in Q1  ($ in millions)                      Sales and Revenues(A)    Segment Profit (Loss)                         Quarters Ended                        Quarters  Ended                                                    January 31              January 31                        2019        2018         2019        2018    Truck             $    1,797  $      1,251 $        90 $          (7)     Parts                     548           568          144           137    Global Operations           73             81             6             (7)    Financial Services           74            59            31            20    (A) 2019 results reflect ASC 606 while 2018 results are as reported Q1 2019 Earnings – 3/8/2019                                                             NYSE: NAV 5
 Strong Industry Expected to Continue in 2019                                    2018 Actual           2019 Guidance    Class 8                            277K                 265-295K    Class 6/7                           99K                   95K    School bus                          33K                   35K    Core markets industry              409K                 395-425K                                                                 Q1 2019 Earnings – 3/8/2019                                                                      NYSE: NAV 6
 Increasing 2019 Financial Guidance                                               Prior             Updated                                          2019 Guidance      2019 Guidance    Revenue                                  $10.5-$11.0B     $10.75-$11.25B    Gross margin                            19.0%-19.5%        19.0%-19.5%    Adjusted EBITDA                         $825-$875M         $850-$900M    Manufacturing interest expense             $225M             $225M    Warranty spend greater than expense        $90M               $90M    Capital expenditures                       $150M             $150M    Pension/OPEB contributions greater than                                               $85M               $85M   expense    Core Market Share                          18.5%              19.0%                           Increased from prior guidance No change from prior guidance   Note: This slide contains non-GAAP information; please see the REG G in appendix for a detailed reconciliation. Q1 2019 Earnings – 3/8/2019                                                                          NYSE: NAV 7
 Appendix                                                                                                                                       Q1 2019 Earnings – 3/8/2019                                                                                                                                                  NYSE: NAV      8
 U.S. and Canada Dealer Stock Inventory*   7,000    6,000    5,000    4,000    3,000    2,000    1,000       -   *Includes U.S. and Canada Class 6-8 truck inventory, but does not include U.S. IC Bus.                                                                                                                                       Q1 2019 Earnings – 3/8/2019                                                                                                                                                   NYSE: NAV      9
 Retail Market Share in Commercial Vehicle Segments                                                                          Three Months Ended                                                       January 31, October 31, July 31,  April 30, January 31,                                                         2019       2018       2018       2018      2018      Core Markets (U.S. and Canada)                                                                       Class 6 and 7 medium trucks ........................................................  25.5%  24.9 % 21.9 % 26.3 % 19.6 %         Class 8 heavy trucks .........................................................................  12.1%  16.9 % 12.7 % 13.4 % 10.8 %         Class 8 severe service trucks .........................................................  11.7%  16.5 % 11.2 % 11.7 % 12.2 %         Combined class 8 trucks .................................................................  12.0%  16.8 % 12.3 % 12.9 % 11.2 %                               Class 6/7                              Class 8                              Class 8            Medium-Duty                               Heavy                          Severe Service                                                                                                Q1 2019 Earnings – 3/8/2019                                                                                                       NYSE: NAV 10
 Worldwide Truck Chargeouts                                                                       Three Months                                                                    Ended January 31,                %                                                                    2019       2018    Change    Change     Core Markets (U.S. and Canada)        School buses.............................................................................................    2,500        1,900        600 32%        Class 6 and 7 medium trucks ..................................................................    6,100       4,400      1,700 39%        Class 8 heavy trucks .................................................................................    7,800       4,200     3,600 86%        Class 8 severe service trucks....................................................................    2,500        2,100        400 19%           Total Core markets..........................................................  18,900      12,600     6,300 50%        Non "Core" defense..................................................................................        100          200       (100) (50%)        Other markets(A).......................................................................................    1,700        1,100        600 55%           Total worldwide units......................................................  20,700      13,900     6,800 49%        Combined class 8 trucks ..........................................................................  10,300       6,300     4,000 63%         _______________________         We define chargeouts as trucks that have been invoiced to customers. The units held in dealer inventory represent the          principal difference between retail deliveries and chargeouts. The above table summarizes our approximate worldwide          chargeouts.          We define our Core markets to include U.S. and Canada School bus and Class 6 through 8 trucks.           (A) Other markets primarily consist of Export Truck and Mexico.                                                                                               Q1 2019 Earnings – 3/8/2019                                                                                                       NYSE: NAV 11
 Financial Services Segment   Highlights     •  Financial Services segment profit of $31M for Q1 2019 vs. $20M for Q1 2018          •  NFC1 earned pre-tax profit of $21.3M for Q1 2019 vs. $9.2M for Q1 2018    •  Segment financing availability of $281M as of January 31, 2019     •  Financial Services debt/equity leverage of 3.5:1 as of January 31, 2019    •  Renewal of variable dealer note and retail accounts funding facilities during Q1 2019                                                 NFC Facilities        Dealer Floor Plan                        Retail Notes                   Bank and Term Loan B      • NFSC wholesale trust as of                                               • Revolver capacity of $269M        January 31, 2019                                                           matures September 2021, Term                                                       C A P I T A L               Loan B of $400M matures July       – $900M funding facility              Funded by BMO Financial Group      – Variable portion matures                                                  2025         May 2020                         • Program management continuity          – Funding for retail notes,       – Term portions mature June 2019   • Broad product offering                  wholesale notes, retail accounts,         and September 2020               • Ability to support large fleets         and dealer open accounts                                                                                • On balance sheet     • On balance sheet                  • Access to less expensive capital      1Navistar Financial Corporation (NFC) is the U.S. financial entity of Navistar’s Financial Services segment. Q1 2019 Earnings – 3/8/2019                                                                                                        NYSE: NAV 12
 Strong Cash Balance to Address Near-Term  Manufacturing Debt  ($ in millions)     Limited Near-Term Manufacturing Debt Maturities(A)                                                  Manufacturing Cash Balance(B)                                                                                           $1,400 $2,000                                                                                                                                       $1,362                                                                                                                                                            $1,192                                           $1,600                                                                    $1,100       $1,084                                                                                           $1,050                                                                                                        $947                                                          $1,100                Plan to pay                                                                  $700 $1,000       off with cash                 in April                                                                                              $350                $411                                                                       $225       $0                                                                                       $0                2019      2020-2024        2025          2026       Thereafter                        Q1 2018      Q2 2018      Q3 2018      Q4 2018      Q1 2019     Note: This slide contains non-GAAP information; please see the REG G in appendix for a detailed reconciliation.   (A)  Total manufacturing debt of $3.3B as of January 31, 2019. Graph does not include financed lease obligations and other, totaling $65 million. NYSE: NAV 13   (B)  Amounts include manufacturing cash, cash equivalents, and marketable securities. Q1 2019 consolidated equivalent cash balance was $1.24 billion.         Amounts exclude restricted cash.
 Frequently Asked Questions  Q1:  What is included in Corporate and Eliminations? A:   The primary drivers of Corporate and Eliminations are Corporate SG&A, pension and OPEB expense (excluding amounts       allocated to the segments), annual incentive, manufacturing interest expense, and the elimination of intercompany sales       and profit between segments.  Q2:  What is included in your equity in income of non-consolidated affiliates?  A:   Equity in income of non-consolidated affiliates is derived from the ownership interests in partially-owned affiliates that are       not consolidated.  Q3:  What is your net income attributable to non-controlling interests? A:   Net income attributable to non-controlling interests is the result of the consolidation of subsidiaries in which the company       does not own 100%, and is primarily comprised of Ford's non-controlling interest in our Blue Diamond Parts joint venture.  Q4:  What are your expected 2019 and beyond pension funding requirements?  A:   For the three months ended January 31, 2019 and 2018, we contributed $131 million and $21 million, respectively, to the       U.S. and Canadian pension plans (the "Plans") to meet regulatory funding requirements. During the first quarter of 2019,       the company contributed a substantial portion of our 2019 minimum required funding. The company currently anticipates       additional contributions of approximately $9 million to the Plans during the remainder of 2019. Future contributions are       dependent upon a number of factors, principally the changes in values of plan assets, changes in interest rates, and the       impact of any future funding relief. The company currently expects that from 2020 through 2022, the company will be       required to contribute $175 million to $200 million per year to the Plans, depending on asset performance and discount       rates.  Q5:  What is your expectation for future cash tax payments? A:   Cash tax payments are expected to remain low in 2019 and could gradually increase as the company utilizes available net       operating losses (NOLs) and tax credits in future years.                                                                                        Q1 2019 Earnings – 3/8/2019                                                                                               NYSE: NAV 14
 Frequently Asked Questions  Q6: What is the current balance of net operating losses as compared to other deferred tax assets?  A: As of October 31, 2018, the Company had deferred tax assets for U.S. federal NOLs valued at $560     million, state NOLs valued at $178 million, and foreign NOLs valued at $241 million, for a total     undiscounted cash value of $979 million. In addition to NOLs, the Company had deferred tax assets for     accumulated tax credits of $212 million and other deferred tax assets of $1.1 billion resulting in net     deferred tax assets before valuation allowances of approximately $2.3 billion. Of this amount, $2.2 billion     was subject to a valuation allowance at the end of FY2018. Q7: How does your FY 2019 Class 8 industry outlook compare to ACT Research?   A:         Reconcilation to ACT - Retail Sales 2019    ACT*                                    294,000    CY to FY Adjustment                      9,200    "Other Specialty OEMs" included in ACT's forecast; we do not include                                             (6,000)    these specialty OEMs in our forecast or in our internal/external reports    Total (ACT comparable Class 8 Navistar) 297,200    Navistar Industry Retail Deliveries Combined Class 8 Trucks 265,000 295,000    Navistar Difference from ACT         (32,200) (2,200)    *Source: ACT N.A. Commercial Vehicle Outlook - February 2019 (10.8%) (0.7%) Q8: Please discuss the process from an order to a retail delivery? A: Orders* are customers’ written commitments to purchase vehicles. Order backlogs* are orders yet to be     built as of the end of a period. Chargeouts are vehicles that have been invoiced to customers. Retail     deliveries occur when customers take possession and register the vehicle. Units held in dealer inventory     represent the principal difference between retail deliveries and chargeouts.    * Orders and units in backlog do not represent guarantees of purchases and are subject to cancellation.                                                                          Q1 2019 Earnings – 3/8/2019                                                                               NYSE: NAV 15
 Frequently Asked Questions   Q9: How do you define manufacturing free cash flow?                                                    Quarters Ended A:     ($ in millions)                                            Jan. 31, 2019      Oct. 31, 2018       Jul. 31, 2018     Apr. 30, 2018       Jan. 31, 2018        Consolidated Net Cash from Operating Activities...................... $               (240) $                449 $                 (83) $                  (21) $                 (76)        Less: Net Cash from Financial Services Operations...................                     25                   (124)                     33                  (220)                    161             Net Cash from Manufacturing Operations (A)  .......................                 (265)                   573                   (116)                    199                  (237)        Plus: Capital Expenditures................................................................                    (43)                    (34)                    (25)                    (23)                    (30)       ___________________________Manufacturing Free Cash Flow.......................................... $               (308) $                539 $                (141) $                 176 $               (267)        (A)    Net of adjustments required to eliminate certain intercompany transactions between Manufacturing operations and Financial Services operations.  Q10: What is your revenue by product type?                                                                                                                     Global          Financial     Corporate and                                                                                     Truck            Parts                                                                                                                   Operations        Services       Eliminations A:   ($ in millions)       Three Months Ended January 31, 2019          Truck products and services(B)(C)................................................................................................ $ 1,677 $ — $ — $ — $ 3          Truck contract manufacturing....................................................................................................... 18 — — —        —          Used trucks........................................................................................................................................ 51 — — — —          Engines............................................................................................................................................... — 66 45 — —          Parts..................................................................................................................................................... 1 480 16 — —          Extended warranty contracts......................................................................................................... 29 — — —       —       Sales of manufactured products, net............................................................................................. $ 1,776 $ 546 $ 61 $ — $ 3          Retail financing(D)........................................................................................................................... — — — 35 —          Wholesale financing(D).................................................................................................................. — — — 12   —     ___________________________Sales and revenues, net....................................................................................................................... $ 1,776 $ 546 $ 61 $ 47 $ 3      (A)    The table is reported in external revenue.     (B)    Includes other markets primarily consisting of Bus, Export Truck and Mexico. Also includes revenue of $3 million related to certain third-party financings initially recorded             as borrowings, and operating lease revenue of $1 million.     (C)    Includes military sales of $62 million. In December 2018, we completed the previously announced sale of a 70% equity interest in Navistar Defense.      (D)    Retail financing and Wholesale financing revenues in the Financial Services segment include interest revenue of $13 million and $12 million, respectively, for the three             months ended January 31, 2019.                                                                                                                                           Q1 2019 Earnings – 3/8/2019                                                                                                                                                      NYSE: NAV    16
 Outstanding Debt Balances                                                                                                                                                                                                                      January 31, October 31,          ($ in millions)                                                                         2019       2018          Manufacturing operations                                                                                     Senior Secured Term Loan Credit Agreement, due 2025, net of unamortized discount of $7 and                         unamortized debt issuance costs of $11 at both dates ....................................................................................  $  1,566  $ 1,570             6.625% Senior Notes, due 2026, net of unamortized debt issuance costs of $16 and $17                               respectively .....................................................................................................................................................................  1,084  1,083                      4.75% Senior Subordinated Convertible Notes, due 2019, net of unamortized discount of $2 and                       $5, respectively, and unamortized debt issuance costs of $1 at both dates ............................................  408  405             Loan Agreement related to 6.75% Tax Exempt Bonds, due 2040, net of unamortized debt                                issuance costs of $5 at both dates ............................................................................................................................  220  220             Financed lease obligations ........................................................................................................................................  52   122             Other .................................................................................................................................................................................  13   26                Total Manufacturing operations debt....................................................................................................               3,343      3,426             Less: Current portion ...................................................................................................................................................  437   461                Net long-term Manufacturing operations debt...................................................................................      $     2,906   $  2,965                                                                                                           January 31, October 31,          ($ in millions)                                                                         2019       2018          Financial Services operations                                                                                     Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through                   2023, net of unamortized debt issuance costs of $4 at both dates ...........................................................  $  992  $ 948             Senior secured NFC Term Loan, due 2025, net of unamortized discount of $2, and unamortized                         debt issuance costs of $4 at both dates ...............................................................................................................  393  394             Bank credit facilities, at fixed and variable rates, due dates from 2019 through 2025, net of                      unamortized debt issuance costs of $1 and $2, respectively ........................................................................  616  519             Commercial paper, at variable rates, program matures in 2022 ..................................................................  62   75                                                                                                                                Borrowings secured by operating and finance leases, at various rates, due serially through 2024  88  105                 Total Financial Services operations debt...............................................................................................          2,151      2,042             Less: Current portion ...................................................................................................................................................  505   485                 Net long-term Financial Services operations debt.............................................................................. $     1,646   $  1,556                                                                                                                             Q1 2019 Earnings – 3/8/2019                                                                                                                     NYSE: NAV  17
 SEC Regulation G Non-GAAP Reconciliation   SEC Regulation G Non-GAAP Reconciliation: The financial measures presented below are unaudited and not in accordance with, or an alternative for, financial measures presented in accordance with U.S.  generally accepted accounting principles ("GAAP"). The non-GAAP financial information presented herein should be considered supplemental to, and not as a  substitute for, or superior to, financial measures calculated in accordance with GAAP and are reconciled to the most appropriate GAAP number below.  Earnings (loss) Before Interest, Income Taxes, Depreciation, and Amortization (“EBITDA”): We define EBITDA as our consolidated net income (loss) attributable to Navistar International Corporation plus manufacturing interest expense, income taxes,  and depreciation and amortization. We believe EBITDA provides meaningful information as to the performance of our business and therefore we use it to  supplement our GAAP reporting. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable them  to perform additional analyses of operating results.  Adjusted EBITDA: We believe that adjusted EBITDA, which excludes certain identified items that we do not consider to be part of our ongoing business, improves the  comparability of year to year results, and is representative of our underlying performance. Management uses this information to assess and measure the  performance of our operating segments. We have chosen to provide this supplemental information to investors, analysts and other interested parties to  enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non-GAAP adjustments shown in  the below reconciliations, and to provide an additional measure of performance.  Manufacturing Cash, Cash Equivalents, and Marketable Securities: Manufacturing cash, cash equivalents, and marketable securities represents the Company’s consolidated cash, cash equivalents, and marketable securities  excluding cash, cash equivalents, and marketable securities of our financial services operations. We include marketable securities with our cash and cash  equivalents when assessing our liquidity position as our investments are highly liquid in nature. We have chosen to provide this supplemental information to  investors, analysts and other interested parties to enable them to perform additional analyses of our ability to meet our operating requirements, capital  expenditures, equity investments, and financial obligations.  Gross Margin consists of Sales and revenues, net, less Costs of products sold.  Structural Cost consists of Selling, general and administrative expenses and Engineering and product development costs.  Manufacturing Free Cash Flow consists of Net cash from operating activities and Capital Expenditures, all from our Manufacturing operations.  Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by Sales and revenues, net.                                                                                                                       Q1 2019 Earnings – 3/8/2019                                                                                                                                 NYSE: NAV   18
 SEC Regulation G Non-GAAP Reconciliation  Manufacturing segment cash, Cash equivalents, and Marketable securities reconciliation:                                                                  Jan. 31,     Oct. 31,     Jul. 31,     Apr. 30,      Jan. 31, ($ in millions)                                                  2019        2018          2018         2018         2018 Manufacturing Operations:    Cash and cash equivalents.................................................................................... $ 1,151 $ 1,261 $       989   $     1,060  $       671    Marketable securities............................................................................................. 41        101           95           40           276 Manufacturing Cash, Cash equivalents, and Marketable securities............. $       1,192 $         1,362 $         1,084 $          1,100 $           947   Financial Services Operations:    Cash and cash equivalents.................................................................................... $ 50 $      59  $        33   $       40   $        28    Marketable securities.............................................................................................                -                    -                     -                    -                    -  Financial Services Cash, Cash equivalents, and Marketable securities........ $ 50 $    59  $        33   $       40   $        28  Consolidated Balance Sheet:    Cash and cash equivalents.................................................................................... $ 1,201 $ 1,320 $      1,022  $     1,100  $       699    Marketable securities............................................................................................. 41        101           95           40           276 Consolidated Cash, Cash equivalents, and Marketable securities............... $      1,242 $         1,421 $          1,117 $         1,140 $            975                                                                                                            Q1 2019 Earnings – 3/8/2019                                                                                                                   NYSE: NAV  19
 SEC Regulation G Non-GAAP Reconciliations Earnings (loss) before interest, taxes, depreciation, and amortization (“EBITDA”) reconciliation                                                                                Quarters Ended January 31,                ($ in millions)                                                   2019          2018                Net income (loss) attributable to NIC................................................................................ $ 11 $ (73)                Plus:                    Depreciation and amortization expense................................................................. 48 55                    Manufacturing interest expense (A)........................................................................... 56 58                Adjusted for:                    Income tax benefit (expense)........................................................................................ 19 (15)                ______________________EBITDA................................................................................................................................................ $ 96 $ 55                (A) Manufacturing interest expense is the net interest expense primarily generated for borrowings that support the                    manufacturing and corporate operations, adjusted to eliminate interest expense of our Financial Services segment. The                    following table reconciles Manufacturing interest expense to the consolidated interest expense:                                                                                Quarters Ended January 31,                   ($ in millions)                                                2019          2018                   Interest expense.................................................................................................................... $ 85 $ 79                     Less:  Financial services interest expense.................................................................... 29 21                   Manufacturing interest expense..................................................................................... $ 56 $ 58                                                                                 Quarters Ended January 31,               ($ in millions)                                                     2019          2018               EBITDA (reconciled above)................................................................................. $               96 $               55                Adjusted for significant items of:                 Adjustments to pre-existing warranties (A)........................................................................               (7)                (6)                 Asset impairment charges (B).................................................................................................... 2                 2                  Restructuring of manufacturing operations (C) ............................................................... — (3)                 EGR product litigation (D)............................................................................................................ — 1                  Gain on sales (E)................................................................................................................................ (59) —                 Debt refinancing charges (F)...................................................................................................... — 46                  Pension settlement (G).................................................................................................................. 142 9                  Settlement gain (H)......................................................................................................................... (1) —               Total adjustments.................................................................................................................................. 77               49                Adjusted EBITDA.................................................................................................. $             173 $              104                Adjusted EBITDA margin................................................................................................................... 7.1% 5.5%  For more detail on the items noted, please see the footnotes on slide 21.                                                                                                        Q1 2019 Earnings – 3/8/2019                                                                                                                  NYSE: NAV  20
 Significant Items Included Within Our Results                                                                                                              Quarters Ended January 31,  ($ in millions)                                                                                                 2019               2018  Expense (income):     Adjustments to pre-existing warranties (A)............................................................................................................... $             (7) $                 (6)     Asset impairment charges (B)..........................................................................................................................................              2 2      Restructuring of manufacturing operations (C)....................................................................................................... — (3)     EGR product litigation (D).................................................................................................................................................. — 1      Gain on sales (E)...................................................................................................................................................................... (59) —     Debt refinancing charges (F)............................................................................................................................................. — 46      Pension settlement (G)......................................................................................................................................................... 142 9      Settlement gain (H)................................................................................................................................................................             (1) —     _____________________     (A)  Adjustments to pre-existing warranties reflect changes in our estimate of warranty costs for products sold in prior periods. Such adjustments typically occur when           claims experience deviates from historic and expected trends. Our warranty liability is generally affected by component failure rates, repair costs, and the timing of           failures. Future events and circumstances related to these factors could materially change our estimates and require adjustments to our liability. In addition, new           product launches require a greater use of judgment in developing estimates until historical experience becomes available.     (B)  In the first quarter of 2019, we recorded $2 million of asset impairment charges relating to certain assets under operating leases.  In the first quarter of 2018, we           recorded $2 million of impairment charges related to the sale of our railcar business in Cherokee, Alabama.     (C)  In the first quarter of 2018, we recorded benefits of $3 million for restructuring in our Truck and Global segments.     (D)  In the first quarter of 2018, we recognized an additional charge of $1 million for a jury verdict related to the MaxxForce engine EGR product litigation in our Truck           segment.      (E)  In the first quarter of 2019, we recognized a gain of $54 million related to the sale of a majority interest in the Navistar Defense business in our Truck segment. In the           first quarter of 2019, we also recognized a gain of $5 million related to the sale of our joint venture in China with Anhui Jianghuai Automobile Co in our Global           Operations segment.     (F)  In the first quarter of 2018, we recorded a charge of $46 million for the write off of debt issuance costs and discounts associated with the repurchase of our previously           existing 8.25% Senior Notes and the refinancing of our previously existing Term Loan.      (G)  In the first quarter of 2019 and 2018, we purchased group annuity contracts for certain retired pension plan participants resulting in plan remeasurements. As a result,           we recorded pension settlement accounting charges of $142 million and $9 million, respectively, in Other expense, net.     (H)  In the first quarter of 2019, we recorded interest income of $1 million in Other expense, net derived from the prior year settlement of a business economic loss claim           relating to our former Alabama engine manufacturing facility.                                                                                                                                       Q1 2019 Earnings – 3/8/2019                                                                                                                                                  NYSE: NAV    21