Q3 2018 EARNINGS PRESENTATION                                                                                                                                                                                        September 6, 2018                ®  International is a registered trademark of                     , Inc.                                                                                                                                      NYSE: NAV
 Safe Harbor Statement and Other Cautionary Notes  Information provided and statements contained in this presentation 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 presentation  and Navistar International Corporation assumes no obligation to update the information included in this presentation. Such  forward-looking statements include information concerning our possible or assumed future results of operations and 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, 2017, which was filed on December 19, 2017 and our  Quarterly Report on Form 10-Q for the quarter ended January 31, 2018, which was filed on March 8, 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 measures are reconciled to the most appropriate GAAP measure in the appendix of this presentation.                                                                                              Q3 2018 Earnings – 9/6/2018                                                                                                       NYSE: NAV 2
 Third Quarter 2018 Highlights   • Industry remains strong   • Class 8 heavy market share up 2.7 points year-over-year      o  13L heavy share more than doubled   • Revenues higher, led by 25% increase in Truck   • Net Income rose to $170 million   • Adjusted EBITDA up 12% to $218 million   • Supplier constraints impacting industry   • 2018 financial guidance increased   • Strong collaboration with TRATON Group (formerly Volkswagen Truck & Bus)    Note: This slide contains non-GAAP information; please see the REG G in appendix for a detailed reconciliation.  Q3 2018 Earnings – 9/6/2018                                                                 NYSE: NAV 3
 Capitalizing On A Strong Industry  ($ in millions, except per share and units)                                                                                                        Quarters Ended                                                                                                                  July 31                                                                                                        2018                 2017                     Chargeouts(A)                                                                      19,100                 15,100                      Sales and revenues                                                                 $2,606                 $2,213                     Net income(B)                                                                          $170                    $37                     Diluted income per share(B)                                                           $1.71                $0.38                     Adjusted EBITDA                                                                        $218                  $194                     Adjusted EBITDA margin                                                                  8.4%                  8.8%   (A)    Includes U.S. and Canada School buses and Class 6-8 trucks.     Note: This slide contains non-GAAP information; please see the Q3 2018 Earnings – 9/6/2018  (B) Amounts attributable to Navistar International Corporation, net of tax. REG G in appendix for a detailed reconciliation.                                                                                                                                                    NYSE: NAV      4
 Strong Truck Segment Growing Profitability  ($ in millions)                      Sales and Revenues     Segment Profit                        Quarters Ended                Quarters          Ended                                                    July 31              July 31                        2018      2017       2018      2017     Truck             $1,916     $1,531      $165        $7     Parts               $605      $586       $144       $157     Global Operations    $89       $84         $4        $3     Financial Services   $65       $62        $23       $23                                                         Q3 2018 Earnings – 9/6/2018                                                             NYSE: NAV 5
 Solid Manufacturing Cash Balance  ($ in millions)                          Manufacturing Cash(A)   $1,200                                                               $1,100        $1,084                                 $1,036                                                                                                    •  2018 Q3 cash balance                   $923                         $947       $800                                                                                             o     Consolidated cash:                                                                                                                             $1.12 billion                                                                                                       o     Manufacturing cash:                                                                                                                         $1.08 billion(A)     $400                                                                                                    •  Strong cash position to                                                                                                       address near-term maturities         $0                Q3 2017       Q4 2017         Q1 2018        Q2 2018         Q3 2018     (A)  Amounts include manufacturing cash, cash equivalents, and marketable securities.                                              Q3 2018 Earnings – 9/6/2018    Note: This slide contains non-GAAP information; please see the REG G in appendix for a detailed reconciliation.                                                                                                                                                    NYSE: NAV      6
 Strong Industry Expected To Continue Into 2019                                   Actual                Guidance                                  2017            2018            2019    Class 8 industry               207K          260-280K        255-285K    Class 6/7 medium                86K            95K              95K    School bus                      35K            35K              35K    Core markets industry          328K          390-410K        385-415K                                                                 Q3 2018 Earnings – 9/6/2018                                                                      NYSE: NAV 7
 Revising 2018 Financial Guidance                                              2017 Actuals      2018 Guidance    Revenue                                      $8.6B        $10.1-$10.4B    Gross margin                                 17.9%               18.6%    Adjusted EBITDA                             $582M          $775-$825M    Manufacturing cash                           $1.0B             >$1.25B(A)    Manufacturing interest expense              $269M               $230M    Warranty spend greater than expense         $184M               $125M    Capital expenditures                        $102M               $115M    Pension/OPEB contributions greater                                                      $75M               $100M   than expense               Increased from prior guidance No change from prior guidance Decreased from prior guidance  Note: This slide contains non-GAAP information; please see the REG G in appendix for a detailed reconciliation.  Q3 2018 Earnings – 9/6/2018  (A) 2018 manufacturing cash guidance reflects expected repayment of 2018 convertible debt.                                                                          NYSE: NAV 8
 Appendix                                                                                                                                       Q3 2018 Earnings – 9/6/2018                                                                                                                                                  NYSE: NAV      9
 Further Progress on Legacy Issues  ($ in millions)               Used Truck Inventory $500                                          • Gross inventory balance:                                                                        $191 million                                                  o MaxxForce13s in inventory:                                                         ~1,100 $250                                               • Net inventory balance:                                                                          $143 million   $0        Q3     Q4      Q1     Q2      Q3       • Q3 inventory reserve:               2017    2017   2018    2018   2018              Gross Inventory Net Inventory      $48 million   $1,000      Warranty Spend vs. Expense                                               • Q3 warranty expense  $750                                                (excluding pre-existing) as a  $500                                           percentage of revenue: 1.7%                                                o 2.4% in 3Q17 $250                                               • Warranty liability balance:      $0                                           $531 million       2013  2014   2015  2016  2017   2018              Warranty Spend Warranty Expense                                                             Q3 2018 Earnings – 9/6/2018                                                                  NYSE: NAV 10
 U.S. and Canada Dealer Stock Inventory*   6,000    5,500    5,000    4,500    4,000    3,500    3,000   *Includes U.S. and Canada Class 4-8 truck inventory, but does not include U.S. IC Bus.                                                                                               Q3 2018 Earnings – 9/6/2018                                                                                                        NYSE: NAV 11
 Retail Market Share in Commercial Vehicle Segments                                                                           Three Months Ended                                                         July 31 , April 30 , January 31, October 31, July 31,                                                          2018      2018       2018       2017       2017      Core Markets (U.S. and Canada)                                                                        Class 6 and 7 medium trucks ........................................................  22%  26 % 20 % 23 % 25 %         Class 8 heavy trucks .........................................................................  13%  13 % 11 % 14 % 10%          Class 8 severe service trucks .........................................................  11%  12 % 12 % 16 % 12%          Combined class 8 trucks .................................................................  12%  13 % 11 % 15 % 11 %                               Class 6/7                              Class 8                              Class 8            Medium-Duty                               Heavy                          Severe Service                                                                                                Q3 2018 Earnings – 9/6/2018                                                                                                       NYSE: NAV 12
 Worldwide Truck Chargeouts                                                          Three Months                                                          Ended July 31,                 %                                                        2018       2017    Change    Change             Core Markets (U.S. and Canada)                School buses(A).................................................    3,700       3,900       (200) -5%                Class 6 and 7 medium trucks ..........................    6,300       4,800      1,500 31%                Class 8 heavy trucks .........................................    7,200       4,200     3,000 71%                Class 8 severe service trucks.............................    1,900       2,200       (300) -14%                   Total Core markets..........................  19,100      15,100     4,000 26%                Non "Core" military...........................................        100          200       (100) -50%                Other markets(B)...............................................    2,500       2,900       (400) -14%                   Total worldwide units......................  21,700      18,200     3,500 19%                Combined class 8 trucks ..................................    9,100       6,400     2,700 42%  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) The School bus chargeouts include buses classified as B, C, and D and are being reported on a one-month lag. (B) Other markets primarily consist of Export Truck and Mexico.                                                                                                Q3 2018 Earnings – 9/6/2018                                                                                                        NYSE: NAV 13
 Financial Services Segment   Highlights    •  Financial Services segment profit of $23M for Q3 2018 and $62M for YTD 2018          •  NFC1  earned pre-tax profit of $14.6M for Q3 and $36.1M for YTD 2018    •  NFC financing availability of $382M as of July 31, 2018, $231M available under the $269M        revolver     •  Financial Services debt/equity leverage of 3.5:1 as of July 31, 2018    •  Term Loan B debt of $400M issued in July 2018                                                 NFC Facilities        Dealer Floor Plan                        Retail Notes                   Bank and Term Loan B      • NFSC wholesale trust as of July                                          • Revolver capacity of $269M        31, 2018                                                                   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         December 2018                    • Program management continuity          – Funding for retail notes,       – Term portions mature             • Broad product offering                  wholesale notes, retail accounts,         September 2018 and June 2019     • 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 US financial entity of Navistar’s Financial Services segment                                                                                               Q3 2018 Earnings – 9/6/2018                                                                                                        NYSE: NAV 14
 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 loss of non-consolidated affiliates is derived from our 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 we do 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 2018 and beyond pension funding requirements?  A:   For the three and nine months ended July 31, 2018, we contributed $25 million and $78 million respectively, to our U.S.       and Canadian pension plans (the "Plans") to meet regulatory minimum funding requirements. We currently anticipate       additional contributions of approximately $54 million during the remainder of 2018. 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. We currently expect that from 2019 through 2021, we will be required to contribute $140 million to       $190 million per year to the Plans, depending on asset performance and discount rates.  Q5:  What is your expectation for future cash tax payments? A:   Our cash tax payments are expected to remain low in 2018 and will gradually increase as we utilize available net       operating losses (NOLs) and tax credits in future years.                                                                                       Q3 2018 Earnings – 9/6/2018                                                                                               NYSE: NAV 15
 Frequently Asked Questions  Q6: What is the current balance of net operating losses as compared to other deferred tax assets?  A: The deferred tax assets were remeasured as of December 22, 2017 as a result of the new U.S. tax     legislation. After the remeasurement, the Company had deferred tax assets for U.S. federal NOLs valued     at $660 million, state NOLs valued at $196 million, and foreign NOLs valued at $243 million, for a total     undiscounted cash value of $1.1 billion. In addition to NOLs, the Company had deferred tax assets for     accumulated tax credits of $264 million and other deferred tax assets of $1.2 billion resulting in net     deferred tax assets before valuation allowances of approximately $2.5 billion. Of this amount, $2.4 billion     was subject to a valuation allowance as of December 22, 2017. Q7: How does your FY 2018 Class 8 industry outlook compare to ACT Research?  A:         Reconcilation to ACT - Retail Sales 2018    ACT*                                     288,900    CY to FY Adjustment                      (11,617)    "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)  271,283    Navistar Industry Retail Deliveries Combined Class 8 Trucks 260,000 280,000    Navistar Difference from ACT          (11,283) 8,717    *Source: ACT N.A. Commercial Vehicle Outlook - May 2018 (4.2%) 3.2% 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.                                                                         Q3 2018 Earnings – 9/6/2018                                                                               NYSE: NAV 16
 Frequently Asked Questions  Q9: How do you define manufacturing free cash flow? A:                                                                                             Quarters Ended  (in millions)                                          Jul. 31, 2018    Apr. 30, 2018     Jan. 31, 2018     Oct. 31, 2017     July 31, 2017   Consolidated Net Cash from Operating Activities...................... $                 (83) $                  (21) $                 (76) $                277 $                  (61)  Less: Net Cash from Financial Services Operations...................                     33                  (220)                    161                     87                    (95)      Net Cash from Manufacturing Operations (A)  .......................                  (116)                    199                  (237)                    190                     34  Capital Expenditures..........................................................................                    (25)                    (23)                    (30)                      (9)                    (27)      Manufacturing Free Cash Flow.......................................... $                (141) $                 176 $               (267) $                 181 $                    7 _____________________________ (A)   Net of adjustments.  Q10: What were your Worldwide Engine Shipments in the period? A:                                                                        Three Months                                                                        Ended July 31,                             %                                                                      2018          2017        Change        Change             (in units)                 OEM sales-South America................................       6,500        6,000           500      8%                 Intercompany sales...........................................       4,300        3,300        1,000 30%                 Other OEM sales...............................................          800           600           200 33%                     Total Core Markets..........................        11,600          9,900          1,700       17%                                                                                                                       Q3 2018 Earnings – 9/6/2018                                                                                                                                 NYSE: NAV   17
 Outstanding Debt Balances                                                                                                               July 31 ,      October 31,                      (in millions)                                                                                   2018       2017                 Manufacturing operations                                                                                                                                                                                                                                        Senior Secured Term Loan Credit Facility, due 2025, net of unamortized discount of $7 and                     unamortized debt issuance costs of $12 ..............................................................................................................  $       1,573  $       —                     Senior Secured Term Loan Credit Facility, as amended, due 2020, net of unamortized discount                                        of $7 and unamortized debt issuance costs of $9 ............................................................................................              —    1,003                                                                                                                                                        6.625% Senior Notes, due 2026, net of unamortized debt issuance costs of $17 .................................         1,083          —                                                                                                                                                       8.25% Senior Notes, due 2022 net of unamortized discount of $13, respectively, and                     unamortized debt issuance costs of $14 ..............................................................................................................               —  1,423                     4.50% Senior Subordinated Convertible Notes, due 2018, net of unamortized discount of $1 and                                      $5, respectively, and unamortized debt issuance costs of less than $1 and $1, respectively..............             199  194                                                                                                                                                       4.75% Senior Subordinated Convertible Notes, due 2019, net of unamortized discount of $7 and                     $14, respectively, and unamortized debt issuance costs of $2 and $3, respectively .............................             402  394                     Loan Agreement related to 6.75% Tax Exempt Bonds, due 2040, net of unamortized debt                                               issuance costs of $5 at both dates ..........................................................................................................................             220  220                     Financed lease obligations ........................................................................................................................................              121   130                     Other .................................................................................................................................................................................               27   43                         Total Manufacturing operations debt ....................................................................................................................          3,625   3,407                     Less: Current portion ...................................................................................................................................................             661   286                         Net long-term Manufacturing operations debt ................................................................................................$        2,964    $ 3,121                                                                                                               July 31 ,      October 31 ,                      (in millions)                                                                                 2018        2017                 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 $3 and $5, respectively...............................................  $         888  $ 849                     Senior secured NFC Term Loan, due June 2025, net of unamortized discount of $2, and                                             unamortized debt issuance cost of $4.........................................................................................................                      394         —                     Bank credit facilities, at fixed and variable rates, due dates from 201 8 through 2024, net of                                  unamortized debt issuance costs of $1 and $2, respectively ........................................................................            500  616                     Commercial paper, at variable rates, program matures in 2022 ..................................................................             88   92                                                                                                                                                     Borrowings secured by operating and finance leases, at various rates, due serially through 2024             105  94                         Total Financial Services operations debt ..............................................................................................................          1,975   1,651                     Less: Current portion ...................................................................................................................................................          1,046   883                         Net long-term Financial Services operations debt ...........................................................................................  $         929   $ 768                 Note: Our fiscal year ends on October 31. As such, all references to 2018, 2017, and other years contained within this presentation relate       to the fiscal year, unless otherwise indicated.                                                                                Q3 2018 Earnings – 9/6/2018                                                                                                                                                  NYSE: NAV    18
 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, net of tax, plus manufacturing interest expense, income  taxes, and depreciation and amortization. We believe EBITDA provides meaningful information regarding 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 and Adjusted EBITDA Margin:  We believe that adjusted EBITDA and Adjusted EBITDA margin, 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.                                                                                                                      Q3 2018 Earnings – 9/6/2018                                                                                                                                 NYSE: NAV   19
 SEC Regulation G Non-GAAP Reconciliation Manufacturing segment cash, Cash equivalents, and Marketable securities reconciliation:                                                                          Jul. 31,      Apr. 30,       Jan. 31,       Oct. 31,       Jul. 31, (in millions)                                                           2018          2018           2018           2017           2017 Manufacturing Operations:     Cash and cash equivalents.............................................................................................. $ 989 $          1,060 $ 671  $        666   $        868     Marketable securities........................................................................................................ 95      40            276            370             55 Manufacturing Cash, Cash equivalents, and Marketable securities................ $       1,084 $          1,100 $            947 $          1,036 $            923   Financial Services Operations:     Cash and cash equivalents.............................................................................................. $ 33 $    40   $         28   $         40   $         43     Marketable securities........................................................................................................                  -                     -                      -                     - 7 Financial Services Cash, Cash equivalents, and Marketable securities........... $ 33   $        40   $         28   $         40   $         50  Consolidated Balance Sheet:     Cash and cash equivalents.............................................................................................. $       1,022 $          1,100 $ 699 $ 706   $        911     Marketable securities........................................................................................................ 95      40            276            370             62 Consolidated Cash, Cash equivalents, and Marketable securities.................. $        1,117 $          1,140 $            975 $          1,076 $            973                                                                                                                        Q3 2018 Earnings – 9/6/2018                                                                                                                                 NYSE: NAV   20
 SEC Regulation G Non-GAAP Reconciliations Earnings (loss) before interest, taxes, depreciation, and amortization (“EBITDA”) reconciliation                                                                                    Quarters Ended July 31,               (in millions)                                                       2018           2017               Income attributable to NIC, net of tax.............................................................................. $ 170 $ 36               Plus:                   Depreciation and amortization expense................................................................. 51 57                   Manufacturing interest expense (A)........................................................................... 60 67               Adjusted for:                   Income tax expense...........................................................................................................               (3) —               EBITDA................................................................................................................................................ $ 284 $ 160               ______________________               (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 July 31,                   (in millions)                                                     2018          2017                   Interest expense.................................................................................................................... $ 82 $ 91                     Less:  Financial services interest expense.................................................................... 22 24                   Manufacturing interest expense..................................................................................... $ 60 $ 67               (in millions)                                                          2018           2017              EBITDA (reconciled above)................................................................................. $             284 $              160               Adjusted for significant items of:                Adjustments to pre-existing warranties (A)........................................................................               (4)                 6                 Asset impairment charges (B).................................................................................................... 8                 6                 Restructuring of manufacturing operations (C) ...............................................................                 1 (3)                EGR product litigation (D)............................................................................................................ — 31                 Gain on sale (E).................................................................................................................................. — (6)                Settlement gain (F).......................................................................................................................... (71) —              Total adjustments.................................................................................................................................. (66)               34               Adjusted EBITDA.................................................................................................. $             218 $              194               Adjusted EBITDA margin................................................................................................................... 8.4% 8.8%  For more detail on the items noted, please see the footnotes on slide 22.                                                                                                        Q3 2018 Earnings – 9/6/2018                                                                                                                  NYSE: NAV  21
 Significant Items Included Within Our Results                                                                                                       Quarters Ended July 31,             (in millions)                                                                             2018               2017             Expense (Income):                Adjustments to pre-existing warranties (A)........................................................................ $            (4) $                  6                 Asset impairment charges (B)....................................................................................................             8                  6                 Restructuring of manufacturing operations (C) ...............................................................              1 (3)                EGR product litigation (D)............................................................................................................ — 31                 Gain on sale (E).................................................................................................................................. — (6)                Settlement gain (F)..........................................................................................................................           (71) —    ______________________   (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 third quarter, we recorded $8 million of impairment charges related to the sale of our railcar business in Cherokee, Alabama, certain long-lived assets and certain assets        under operating leases in our Truck and Financial Services segments. In the third quarter of 2017, we recorded $6 million of asset impairment charges relating to assets held for        the sale of our Conway, Arkansas fabrication business and for certain assets under operating leases in our Truck segment.   (C) In the third quarter of 2018, we recorded a charge of $1 million related to adjustments for restructuring in our Truck, Global Operations and Corporate segments. In the third        quarter of 2017, we recorded a benefit of $3 million for restructuring in our Truck segment. We recorded $41 million of charges related to our plan to cease production at our        Melrose Park Facility, a net benefit of $43 million related to the resolution of the closing agreement for our Chatham, Ontario plant, and the release of $1 million in OPEB        liabilities in connection with the sale of our fabrication business in Conway, Arkansas.    (D) In the third quarter of 2017, we recognized a charge of $31 million for a jury verdict related to the Maxxforce engine EGR product litigation in our Truck segment.   (E) In the third quarter of 2017, we recognized a gain of $6 million related to the sale of a business line in our Parts segment.   (F) In the third quarter of 2018, we settled a business economic loss claim relating to our Alabama engine manufacturing facility in which we will receive a net present value of $70        million, net of our fees and costs, from the Deepwater Horizon Settlement Program. We recorded the $70 million net present value of the settlement and related interest        income of $1 million in Other Income, net.                                                                                                                                       Q3 2018 Earnings – 9/6/2018                                                                                                                                                  NYSE: NAV    22