Table of Contents

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

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

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

|                                                                                                                                                 |
|-------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                 |  |
| Delaware                                                                                                                                        | 36-3359573 |
| (State or other jurisdiction of incorporation or organization)                                                                                  | (I.R.S. Employer Identification No.) |
|                                                                                                                                            |   |
| 2701 Navistar Drive,                                                                                                            Lisle, Illinois | 60532 |
| (Address of principal executive offices)                                                                                                        | (Zip Code) |

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

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

----

Table of Contents

|                                      |
|--------------------------------------|
|                                      |  |  |
|                                 |   | Page |
| PART I—Financial Information   |   |
| Item 1.                         | Financial Statements (Unaudited) | 5 |
|                                 | Consolidated Statements of Operations for the three and six months ended April 30, 2013 and 2012 | 5 |
|                                 | Consolidated Statements of Comprehensive Loss for the three and six months ended April 30, 2013 and 2012 | 6 |
|                                 | Consolidated Balance Sheets as of April 30, 2013 and October 31, 2012 | 7 |
|                                 | Condensed Consolidated Statements of Cash Flows for the six months ended April 30, 2013 and 2012 | 8 |
|                                 | Consolidated Statements of Stockholders' Equity (Deficit) for the six months ended April 30, 2013 and 2012 | 9 |
|                                 | Notes to Condensed Consolidated Financial Statements | 10 |
| Item 2.                              | Management's Discussion and Analysis of Financial Condition and Results of Operations | 45 |
| Item 3.                              | Quantitative and Qualitative Disclosures about Market Risk | 60 |
| Item 4.                              | Controls and Procedures | 61 |
|                                 |   |   |
| PART II—Other Information |   |
| Item 1.                         | Legal Proceedings | 62 |
| Item 1A.                        | Risk Factors | 63 |
| Item 2.                         | Unregistered Sales of Equity Securities and Use of Proceeds | 63 |
| Item 3.                              | Defaults upon Senior Securities | 63 |
| Item 4.                              | Mine Safety Disclosures | 63 |
| Item 5.                              | Other Information | 63 |
| Item 6.                              | Exhibits | 63 |
|                                 | Signatures | 64 |

----

Table of Contents

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

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

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

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

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

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

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

|         |                                                                                                                                         |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------|
| • | our expectations relating to the dissolution of our Blue Diamond Truck joint venture with Ford Motor Company expected in December 2014; |

|         |                                                                                                                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | our expectations and estimates relating to restructuring activities, including restructuring and integration charges and timing of cash payments related thereto, and operational flexibility, savings, and efficiencies from such restructurings; |

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

|         |                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | our expectations relating to our cost-reduction actions, including our voluntary separation program, involuntary reduction in force, and other actions to reduce discretionary spending; |

|         |                                                                     |
|---------|---------------------------------------------------------------------|
| • | our implementation of a new Return-On-Invested Capital methodology; |

|         |                                                                      |
|---------|----------------------------------------------------------------------|
| • | our realigning our management structure around functional expertise; |

|         |                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------|
| • | our changes to our organizational and segment reporting structures expected to be completed in the near future; |

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

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

|         |                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------|
| • | our expectations relating to the availability of sufficient funds to meet operating requirements, capital expenditures, equity |

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

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

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

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

|         |                                                                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | costs relating to litigation and similar matters, including costs associated with the shareholder class action complaints and the derivative complaint; |

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

|         |                                          |
|---------|------------------------------------------|
| • | trends relating to commodity prices; and |

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

----

Table of Contents

----

Table of Contents

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

|                                                                                 |
|---------------------------------------------------------------------------------|
|                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                            | Three Months Ended April 30, |   | Six Months Ended April 30, |
| (in millions, except per share data)                                            | 2013 |   | 2012 |   | 2013 |   | 2012 |
| Sales and revenues                                                              |   |   |   |   |   |   |   |
| Sales of manufactured products, net                                             | $ | 2,487 |  |   | $ | 3,218 |  |   | $ | 5,085 |  |   | $ | 6,183 |  |
| Finance revenues                                                                | 39 |  |   | 43 |  |   | 78 |  |   | 87 |  |
| Sales and revenues, net                                                         | 2,526 |  |   | 3,261 |  |   | 5,163 |  |   | 6,270 |  |
| Costs and expenses                                                              |   |   |   |   |   |   |   |
| Costs of products sold                                                          | 2,363 |  |   | 2,900 |  |   | 4,649 |  |   | 5,550 |  |
| Restructuring charges                                                           | 6 |  |   | 19 |  |   | 8 |  |   | 19 |  |
| Impairment of intangible assets                                                 | — |  |   | 10 |  |   | — |  |   | 10 |  |
| Selling, general and administrative expenses                                    | 312 |  |   | 372 |  |   | 597 |  |   | 727 |  |
| Engineering and product development costs                                       | 100 |  |   | 132 |  |   | 211 |  |   | 267 |  |
| Interest expense                                                                | 90 |  |   | 62 |  |   | 164 |  |   | 123 |  |
| Other expense (income), net                                                     | (19 | ) |   | 13 |  |   | (57 | ) |   | 21 |  |
| Total costs and expenses                                                        | 2,852 |  |   | 3,508 |  |   | 5,572 |  |   | 6,717 |  |
| Equity in income (loss) of non-consolidated affiliates                          | 4 |  |   | (4 | ) |   | 3 |  |   | (11 | ) |
| Loss from continuing operations before income taxes                             | (322 | ) |   | (251 | ) |   | (406 | ) |   | (458 | ) |
| Income tax benefit (expense)                                                    | (22 | ) |   | 123 |  |   | (37 | ) |   | 199 |  |
| Loss from continuing operations                                                 | (344 | ) |   | (128 | ) |   | (443 | ) |   | (259 | ) |
| Loss from discontinued operations, net of tax                                   | (21 | ) |   | (34 | ) |   | (30 | ) |   | (43 | ) |
| Net loss                                                                        | (365 | ) |   | (162 | ) |   | (473 | ) |   | (302 | ) |
| Less: Net income attributable to non-controlling interests                      | 9 |  |   | 10 |  |   | 24 |  |   | 23 |  |
| Net loss attributable to Navistar International Corporation                     | $ | (374 | ) |   | $ | (172 | ) |   | $ | (497 | ) |   | $ | (325 | ) |
|                                                                            |   |   |   |   |   |   |   |
| Amounts attributable to Navistar International Corporation common shareholders: |   |   |   |   |   |   |   |
| Loss from continuing operations, net of tax                                     | $ | (353 | ) |   | $ | (138 | ) |   | $ | (467 | ) |   | $ | (282 | ) |
| Loss from discontinued operations, net of tax                                   | (21 | ) |   | (34 | ) |   | (30 | ) |   | (43 | ) |
| Net loss                                                                        | $ | (374 | ) |   | $ | (172 | ) |   | $ | (497 | ) |   | $ | (325 | ) |
|                                                                            |   |   |   |   |   |   |   |
| Loss per share:                                                                 |   |   |   |   |   |   |   |
| Basic:                                                                          |   |   |   |   |   |   |   |
| Continuing operations                                                           | $ | (4.39 | ) |   | $ | (2.01 | ) |   | $ | (5.82 | ) |   | $ | (4.07 | ) |
| Discontinued operations                                                         | (0.26 | ) |   | (0.49 | ) |   | (0.37 | ) |   | (0.62 | ) |
|                                                                            | $ | (4.65 | ) |   | $ | (2.50 | ) |   | $ | (6.19 | ) |   | $ | (4.69 | ) |
|                                                                            |   |   |   |   |   |   |   |
| Diluted:                                                                        |   |   |   |   |   |   |   |
| Continuing operations                                                           | $ | (4.39 | ) |   | $ | (2.01 | ) |   | $ | (5.82 | ) |   | $ | (4.07 | ) |
| Discontinued operations                                                         | (0.26 | ) |   | (0.49 | ) |   | (0.37 | ) |   | (0.62 | ) |
|                                                                            | $ | (4.65 | ) |   | $ | (2.50 | ) |   | $ | (6.19 | ) |   | $ | (4.69 | ) |
|                                                                            |   |   |   |   |   |   |   |
| Weighted average shares outstanding:                                            |   |   |   |   |   |   |   |
| Basic                                                                           | 80.4 |  |   | 68.7 |  |   | 80.3 |  |   | 69.3 |  |
| Diluted                                                                         | 80.4 |  |   | 68.7 |  |   | 80.3 |  |   | 69.3 |  |

----

Table of Contents

|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                               | Three Months Ended April 30, |   | Six Months Ended April 30, |
| 2013                                                                        |   | 2012 |   | 2013 |   | 2012 |
| Net loss attributable to Navistar International Corporation                 | $ | (374 | ) |   | $ | (172 | ) |   | $ | (497 | ) |   | $ | (325 | ) |
| Other comprehensive income (loss):                                          |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                     | 3 |  |   | (65 | ) |   | 20 |  |   | (78 | ) |
| Defined benefit plans (net of tax of $(1), $12, $(1), and $24 respectively) | 40 |  |   | 17 |  |   | 78 |  |   | 40 |  |
| Total other comprehensive income (loss)                                     | 43 |  |   | (48 | ) |   | 98 |  |   | (38 | ) |
| Total comprehensive loss attributable to Navistar International Corporation | $ | (331 | ) |   | $ | (220 | ) |   | $ | (399 | ) |   | $ | (363 | ) |

----

Table of Contents

|                                                                                                                                  |
|----------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                  |  |  |  |  |  |  |  |
| (in millions, except per share data)                                                                                             | April 30, 2013 |   | October 31, 2012 |
| ASSETS                                                                                                                           | (Unaudited) |   |   |
| Current assets                                                                                                                   |   |   |   |
| Cash and cash equivalents                                                                                                        | $ | 505 |  |   | $ | 1,087 |  |
| Restricted cash and cash equivalents                                                                                             | 1 |  |   | — |  |
| Marketable securities                                                                                                            | 733 |  |   | 466 |  |
| Trade and other receivables, net                                                                                                 | 839 |  |   | 749 |  |
| Finance receivables, net                                                                                                         | 1,664 |  |   | 1,663 |  |
| Inventories                                                                                                                      | 1,476 |  |   | 1,537 |  |
| Deferred taxes, net                                                                                                              | 75 |  |   | 74 |  |
| Other current assets                                                                                                             | 276 |  |   | 261 |  |
| Total current assets                                                                                                             | 5,569 |  |   | 5,837 |  |
| Restricted cash                                                                                                                  | 116 |  |   | 161 |  |
| Trade and other receivables, net                                                                                                 | 36 |  |   | 94 |  |
| Finance receivables, net                                                                                                         | 428 |  |   | 486 |  |
| Investments in non-consolidated affiliates                                                                                       | 52 |  |   | 62 |  |
| Property and equipment (net of accumulated depreciation and amortization of $2,386 and $2,228)                                   | 1,776 |  |   | 1,660 |  |
| Goodwill                                                                                                                         | 275 |  |   | 280 |  |
| Intangible assets (net of accumulated amortization of $89 and $78)                                                               | 157 |  |   | 171 |  |
| Deferred taxes, net                                                                                                              | 181 |  |   | 189 |  |
| Other noncurrent assets                                                                                                          | 133 |  |   | 162 |  |
| Total assets                                                                                                                     | $ | 8,723 |  |   | $ | 9,102 |  |
| LIABILITIES and STOCKHOLDERS’ DEFICIT                                                                                      |   |   |   |
| Liabilities                                                                                                                      |   |   |   |
| Current liabilities                                                                                                              |   |   |   |
| Notes payable and current maturities of long-term debt                                                                           | $ | 779 |  |   | $ | 1,205 |  |
| Accounts payable                                                                                                                 | 1,621 |  |   | 1,686 |  |
| Other current liabilities                                                                                                        | 1,607 |  |   | 1,462 |  |
| Total current liabilities                                                                                                        | 4,007 |  |   | 4,353 |  |
| Long-term debt                                                                                                                   | 4,002 |  |   | 3,566 |  |
| Postretirement benefits liabilities                                                                                              | 3,331 |  |   | 3,405 |  |
| Deferred taxes, net                                                                                                              | 41 |  |   | 42 |  |
| Other noncurrent liabilities                                                                                                     | 980 |  |   | 996 |  |
| Total liabilities                                                                                                                | 12,361 |  |   | 12,362 |  |
| Redeemable equity securities                                                                                                     | 4 |  |   | 5 |  |
| Stockholders’ deficit                                                                                                      |   |   |   |
| Series D convertible junior preference stock                                                                                | 3 |  |   | 3 |  |
| Common stock (86.8 and 86.0 shares issued, respectively; and $0.10 par value per share and 220 shares authorized, at both dates) | 9 |  |   | 9 |  |
| Additional paid in capital                                                                                                       | 2,456 |  |   | 2,440 |  |
| Accumulated deficit                                                                                                              | (3,662 | ) |   | (3,165 | ) |
| Accumulated other comprehensive loss                                                                                             | (2,227 | ) |   | (2,325 | ) |
| Common stock held in treasury, at cost (6.4 and 6.8 shares, respectively)                                                        | (256 | ) |   | (272 | ) |
| Total stockholders’ deficit attributable to Navistar International Corporation                                             | (3,677 | ) |   | (3,310 | ) |
| Stockholders’ equity attributable to non-controlling interests                                                             | 35 |  |   | 45 |  |
| Total stockholders’ deficit                                                                                                | (3,642 | ) |   | (3,265 | ) |
| Total liabilities and stockholders’ deficit                                                                                | $ | 8,723 |  |   | $ | 9,102 |  |

----

Table of Contents

|                                                                                                       |
|-------------------------------------------------------------------------------------------------------|
|                                                                                                       |  |  |  |  |  |  |  |
|                                                                                                  | Six Months Ended  April 30, |
| (in millions)                                                                                         | 2013 |   | 2012 |
| Cash flows from operating activities                                                                  |   |   |   |
| Net loss                                                                                              | $ | (473 | ) |   | $ | (302 | ) |
| Adjustments to reconcile net loss to cash provided by operating activities:                           |   |   |   |
| Depreciation and amortization                                                                         | 164 |  |   | 136 |  |
| Depreciation of equipment leased to others                                                            | 78 |  |   | 24 |  |
| Deferred taxes, including change in valuation allowance                                               | 20 |  |   | (203 | ) |
| Impairment of property and equipment and intangible assets                                            | 8 |  |   | 38 |  |
| Gain on sales of investments and businesses, net                                                      | (13 | ) |   | — |  |
| Amortization of debt issuance costs and discount                                                      | 31 |  |   | 19 |  |
| Stock-based compensation                                                                              | 14 |  |   | 14 |  |
| Provision for doubtful accounts, net of recoveries                                                    | 13 |  |   | — |  |
| Equity in loss of non-consolidated affiliates, net of dividends                                       | 8 |  |   | 15 |  |
| Write-off of debt issuance cost and discount                                                          | 6 |  |   | 8 |  |
| Other non-cash operating activities                                                                   | (54 | ) |   | 2 |  |
| Changes in other assets and liabilities, exclusive of the effects of businesses acquired and disposed | 155 |  |   | 298 |  |
| Net cash provided by (used in) operating activities                                                   | (43 | ) |   | 49 |  |
| Cash flows from investing activities                                                                  |   |   |   |
| Purchases of marketable securities                                                                    | (759 | ) |   | (563 | ) |
| Sales or maturities of marketable securities                                                          | 492 |  |   | 944 |  |
| Net change in restricted cash and cash equivalents                                                    | 44 |  |   | 182 |  |
| Capital expenditures                                                                                  | (107 | ) |   | (176 | ) |
| Purchases of equipment leased to others                                                               | (295 | ) |   | (28 | ) |
| Proceeds from sales of property and equipment                                                         | 19 |  |   | 6 |  |
| Investments in non-consolidated affiliates                                                            | — |  |   | (17 | ) |
| Business acquisitions, net of cash received                                                           | — |  |   | (10 | ) |
| Proceeds from sales of affiliates                                                                     | 30 |  |   | 1 |  |
| Acquisition of intangibles                                                                            | — |  |   | (14 | ) |
| Net cash provided by (used in) investing activities                                                   | (576 | ) |   | 325 |  |
| Cash flows from financing activities                                                                  |   |   |   |
| Proceeds from issuance of securitized debt                                                            | 200 |  |   | 281 |  |
| Principal payments on securitized debt                                                                | (402 | ) |   | (666 | ) |
| Proceeds from issuance of non-securitized debt                                                        | 339 |  |   | 555 |  |
| Principal payments on non-securitized debt                                                            | (374 | ) |   | (537 | ) |
| Net increase in notes and debt outstanding under revolving credit facilities                          | 80 |  |   | 2 |  |
| Principal payments under financing arrangements and capital lease obligations                         | (51 | ) |   | (20 | ) |
| Debt issuance costs                                                                                   | (14 | ) |   | (15 | ) |
| Proceeds from financed lease obligations                                                              | 263 |  |   | — |  |
| Issuance of common stock                                                                              | 14 |  |   | — |  |
| Purchase of treasury stock                                                                            | — |  |   | (75 | ) |
| Proceeds from exercise of stock options                                                               | 8 |  |   | 2 |  |
| Dividends paid by subsidiaries to non-controlling interest                                            | (25 | ) |   | (34 | ) |
| Other financing activities                                                                            | 4 |  |   | (3 | ) |
| Net cash provided by (used in) financing activities                                                   | 42 |  |   | (510 | ) |
| Effect of exchange rate changes on cash and cash equivalents                                          | (5 | ) |   | (3 | ) |
| Decrease in cash and cash equivalents                                                                 | (582 | ) |   | (139 | ) |
| Cash and cash equivalents at beginning of the period                                                  | 1,087 |  |   | 539 |  |
| Cash and cash equivalents at end of the period                                                        | $ | 505 |  |   | $ | 400 |  |

----

Table of Contents

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                           | Series D ConvertibleJuniorPreference Stock |   | CommonStock |   | Additional Paid-inCapital |   | AccumulatedDeficit |   | AccumulatedOtherComprehensiveIncome (Loss) |   | CommonStockHeld inTreasury, at cost |   | Stockholders'EquityAttributableto Non-controllingInterests |   | Total |
| Balance as of October 31, 2012                                                          | $ | 3 |  |   | $ | 9 |  |   | $ | 2,440 |  |   | $ | (3,165 | ) |   | $ | (2,325 | ) |   | $ | (272 | ) |   | $ | 45 |  |   | $ | (3,265 | ) |
| Net income (loss)                                                                       |   |   |   |   |   |   | (497 | ) |   |   |   |   |   | 24 |  |   | (473 | ) |
| Total other comprehensive income                                                        |   |   |   |   |   |   |   |   | 98 |  |   |   |   |   |   | 98 |  |
| Transfer from redeemable equity securities upon exercise or expiration of stock options |   |   |   |   | 1 |  |   |   |   |   |   |   |   |   |   | 1 |  |
| Stock-based compensation                                                                |   |   |   |   | 9 |  |   |   |   |   |   |   |   |   |   | 9 |  |
| Stock ownership programs                                                                |   |   |   |   | (9 | ) |   |   |   |   |   | 16 |  |   |   |   | 7 |  |
| Cash dividends paid to non-controlling interest                                         |   |   |   |   |   |   |   |   |   |   |   |   | (25 | ) |   | (25 | ) |
| Issuance of common stock, net of issuance costs and fees                                |   |   |   |   | 14 |  |   |   |   |   |   |   |   |   |   | 14 |  |
| Deconsolidation of a non-controlling interest                                           |   |   |   |   |   |   |   |   |   |   |   |   | (9 | ) |   | (9 | ) |
| Other                                                                                   |   |   |   |   | 1 |  |   |   |   |   |   |   |   |   |   | 1 |  |
| Balance as of April 30, 2013                                                            | $ | 3 |  |   | $ | 9 |  |   | $ | 2,456 |  |   | $ | (3,662 | ) |   | $ | (2,227 | ) |   | $ | (256 | ) |   | $ | 35 |  |   | $ | (3,642 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as of October 31, 2011                                                          | $ | 3 |  |   | $ | 7 |  |   | $ | 2,253 |  |   | $ | (155 | ) |   | $ | (1,944 | ) |   | $ | (191 | ) |   | $ | 50 |  |   | $ | 23 |  |
| Net income (loss)                                                                       |   |   |   |   |   |   | (325 | ) |   |   |   |   |   | 23 |  |   | (302 | ) |
| Total other comprehensive loss                                                          |   |   |   |   |   |   |   |   | (38 | ) |   |   |   |   |   | (38 | ) |
| Stock-based compensation                                                                |   |   |   |   | 11 |  |   |   |   |   |   |   |   |   |   | 11 |  |
| Stock ownership programs                                                                |   |   |   |   | (10 | ) |   |   |   |   |   | 11 |  |   |   |   | 1 |  |
| Stock repurchase programs                                                               |   |   |   |   | 20 |  |   |   |   |   |   | (95 | ) |   |   |   | (75 | ) |
| Cash dividends paid to non-controlling interest                                         |   |   |   |   |   |   |   |   |   |   |   |   | (34 | ) |   | (34 | ) |
| Increase in ownership interest acquired from non-controlling interest holder            |   |   |   |   | (3 | ) |   |   |   |   |   |   |   | 3 |  |   | — |  |
| Other                                                                                   |   |   | 1 |  |   | 1 |  |   |   |   |   |   | (1 | ) |   | 1 |  |   | 2 |  |
| Balance as of April 30, 2012                                                            | $ | 3 |  |   | $ | 8 |  |   | $ | 2,272 |  |   | $ | (480 | ) |   | $ | (1,982 | ) |   | $ | (276 | ) |   | $ | 43 |  |   | $ | (412 | ) |

----

Table of Contents

----

Table of Contents

----

Table of Contents

|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |  |  |  |  |  |  |
|                                                              | Six Months Ended April 30, |
| (in millions)                                                     | 2013 |   | 2012 |
| Balance at beginning of period                                    | $ | 1,118 |  |   | $ | 598 |  |
| Costs accrued and revenues deferred                               | 226 |  |   | 236 |  |
| Adjustments to pre-existing warranties(A)(B)                      | 204 |  |   | 227 |  |
| Payments and revenues recognized                                  | (327 | ) |   | (217 | ) |
| Balance at end of period                                          | 1,221 |  |   | 844 |  |
| Less: Current portion                                             | 647 |  |   | 365 |  |
| Noncurrent accrued product warranty and deferred warranty revenue | $ | 574 |  |   | $ | 479 |  |

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

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

----

Table of Contents

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                          | Three Months Ended April 30, |   | Six Months Ended April 30, |
| (in millions)                                 | 2013 |   | 2012 |   | 2013 |   | 2012 |
| Sales and revenues, net                       | $ | 36 |  |   | $ | 37 |  |   | $ | 70 |  |   | $ | 80 |  |
|                                          |   |   |   |   |   |   |   |
| Loss before income taxes                      | $ | (21 | ) |   | $ | (44 | ) |   | $ | (30 | ) |   | $ | (58 | ) |
| Income tax benefit                            | — |  |   | 10 |  |   | — |  |   | 15 |  |
| Loss from discontinued operations, net of tax | $ | (21 | ) |   | $ | (34 | ) |   | $ | (30 | ) |   | $ | (43 | ) |

----

Table of Contents

----

Table of Contents

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                | Balance at October 31, 2012 |   | Additions |   | Payments |   | Adjustments |   | Balance at April 30, 2013 |
| Employee termination charges | $ | 72 |  |   | $ | 1 |  |   | $ | (44 | ) |   | $ | (3 | ) |   | $ | 26 |  |
| Employee relocation costs    | — |  |   | 2 |  |   | (2 | ) |   | — |  |   | — |  |
| Lease vacancy                | 17 |  |   | 2 |  |   | (3 | ) |   | 2 |  |   | 18 |  |
| Other                        | — |  |   | 4 |  |   | (3 | ) |   | — |  |   | 1 |  |
| Restructuring liability      | $ | 89 |  |   | $ | 9 |  |   | $ | (52 | ) |   | $ | (1 | ) |   | $ | 45 |  |

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                | Balance atOctober 31, 2011 |   | Additions |   | Payments |   | Adjustments |   | Balance at April 30, 2012 |
| Employee termination charges | $ | 31 |  |   | $ | 2 |  |   | $ | (4 | ) |   | $ | (3 | ) |   | $ | 26 |  |
| Employee relocation costs    | — |  |   | 4 |  |   | (4 | ) |   | — |  |   | — |  |
| Lease vacancy                | — |  |   | 19 |  |   | (1 | ) |   | — |  |   | 18 |  |
| Other                        | 8 |  |   | 1 |  |   | (7 | ) |   | — |  |   | 2 |  |
| Restructuring liability      | $ | 39 |  |   | $ | 26 |  |   | $ | (16 | ) |   | $ | (3 | ) |   | $ | 46 |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |
| (in millions)                         | April 30, 2013 |   | October 31, 2012 |
| Retail portfolio                      | $ | 968 |  |   | $ | 1,048 |  |
| Wholesale portfolio                   | 1,148 |  |   | 1,128 |  |
| Total finance receivables             | 2,116 |  |   | 2,176 |  |
| Less: Allowance for doubtful accounts | 24 |  |   | 27 |  |
| Total finance receivables, net        | 2,092 |  |   | 2,149 |  |
| Less: Current portion, net(A)         | 1,664 |  |   | 1,663 |  |
| Noncurrent portion, net               | $ | 428 |  |   | $ | 486 |  |

|     |                                                                                                                                                                                                                                                |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | The current portion of finance receivables is computed based on contractual maturities. Actual cash collections typically vary from the contractual cash flows because of prepayments, extensions, delinquencies, credit losses, and renewals. |

----

Table of Contents

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                    | Three Months Ended April 30, |   | Six Months Ended April 30, |
| (in millions)                           | 2013 |   | 2012 |   | 2013 |   | 2012 |
| Retail notes and finance leases revenue | $ | 20 |  |   | $ | 26 |  |   | $ | 41 |  |   | $ | 52 |  |
| Wholesale notes interest                | 19 |  |   | 22 |  |   | 39 |  |   | 45 |  |
| Operating lease revenue                 | 12 |  |   | 11 |  |   | 24 |  |   | 20 |  |
| Retail and wholesale accounts interest  | 7 |  |   | 8 |  |   | 13 |  |   | 18 |  |
| Gross finance revenues                  | 58 |  |   | 67 |  |   | 117 |  |   | 135 |  |
| Less: Intercompany revenues             | (19 | ) |   | (24 | ) |   | (39 | ) |   | (48 | ) |
| Finance revenues                        | $ | 39 |  |   | $ | 43 |  |   | $ | 78 |  |   | $ | 87 |  |

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                    | Three Months Ended April 30, 2013 |   | Three Months Ended April 30, 2012 |
| (in millions)                                           | RetailPortfolio |   | WholesalePortfolio |   | Trade andOtherReceivables |   | Total |   | RetailPortfolio |   | WholesalePortfolio |   | Trade andOtherReceivables |   | Total |
| Allowance for doubtful accounts, at beginning of period | $ | 23 |  |   | $ | 2 |  |   | $ | 24 |  |   | $ | 49 |  |   | $ | 28 |  |   | $ | 3 |  |   | $ | 16 |  |   | $ | 47 |  |
| Provision for doubtful accounts, net of recoveries      | 1 |  |   | — |  |   | 10 |  |   | 11 |  |   | — |  |   | (1 | ) |   | 1 |  |   | — |  |
| Charge-off of accounts(A)                               | (3 | ) |   | — |  |   | — |  |   | (3 | ) |   | (2 | ) |   | — |  |   | — |  |   | (2 | ) |
| Other(B)                                                | 1 |  |   | — |  |   | — |  |   | 1 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Allowance for doubtful accounts, at end of period       | $ | 22 |  |   | $ | 2 |  |   | $ | 34 |  |   | $ | 58 |  |   | $ | 26 |  |   | $ | 2 |  |   | $ | 17 |  |   | $ | 45 |  |

----

Table of Contents

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                    | Six Months Ended April 30, 2013 |   | Six Months Ended April 30, 2012 |
| (in millions)                                           | RetailPortfolio |   | WholesalePortfolio |   | Trade andOtherReceivables |   | Total |   | RetailPortfolio |   | WholesalePortfolio |   | Trade andOtherReceivables |   | Total |
| Allowance for doubtful accounts, at beginning of period | $ | 27 |  |   | $ | — |  |   | $ | 24 |  |   | $ | 51 |  |   | $ | 31 |  |   | $ | 3 |  |   | $ | 16 |  |   | $ | 50 |  |
| Provision for doubtful accounts, net of recoveries      | (1 | ) |   | 2 |  |   | 10 |  |   | 11 |  |   | (2 | ) |   | (1 | ) |   | 3 |  |   | — |  |
| Charge-off of accounts(A)                               | (6 | ) |   | — |  |   | — |  |   | (6 | ) |   | (3 | ) |   | — |  |   | (2 | ) |   | (5 | ) |
| Other(B)                                                | 2 |  |   | — |  |   | — |  |   | 2 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Allowance for doubtful accounts, at end of period       | $ | 22 |  |   | $ | 2 |  |   | $ | 34 |  |   | $ | 58 |  |   | $ | 26 |  |   | $ | 2 |  |   | $ | 17 |  |   | $ | 45 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | We repossess sold and leased vehicles on defaulted finance receivables and leases, and place them into Inventories. Losses recognized at the time of repossession and charged against the allowance for doubtful accounts were less than $1 million for both the three and six months ended April 30, 2013 and $2 million and $3 million for the three and six months ended April 30, 2012, respectively. |

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

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                        | April 30, 2013 |   | October 31, 2012 |
| (in millions)                                               | RetailPortfolio |   | WholesalePortfolio |   | Total |   | RetailPortfolio |   | WholesalePortfolio |   | Total |
| Impaired finance receivables with specific loss reserves    | $ | 12 |  |   | $ | — |  |   | $ | 12 |  |   | $ | 14 |  |   | $ | — |  |   | $ | 14 |  |
| Impaired finance receivables without specific loss reserves | 1 |  |   | — |  |   | 1 |  |   | 1 |  |   | — |  |   | 1 |  |
| Specific loss reserves on impaired finance receivables      | 7 |  |   | — |  |   | 7 |  |   | 9 |  |   | — |  |   | 9 |  |
| Finance receivables on non-accrual status                   | 9 |  |   | — |  |   | 9 |  |   | 10 |  |   | — |  |   | 10 |  |

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                | April 30, 2013 |   | October 31, 2012 |
| (in millions)                       | RetailPortfolio |   | WholesalePortfolio |   | Total |   | RetailPortfolio |   | WholesalePortfolio |   | Total |
| Current, and up to 30 days past due | $ | 923 |  |   | $ | 1,142 |  |   | $ | 2,065 |  |   | $ | 965 |  |   | $ | 1,126 |  |   | $ | 2,091 |  |
| 30-90 days past due                 | 36 |  |   | 4 |  |   | 40 |  |   | 72 |  |   | 1 |  |   | 73 |  |
| Over 90 days past due               | 9 |  |   | 2 |  |   | 11 |  |   | 11 |  |   | 1 |  |   | 12 |  |
| Total finance receivables           | $ | 968 |  |   | $ | 1,148 |  |   | $ | 2,116 |  |   | $ | 1,048 |  |   | $ | 1,128 |  |   | $ | 2,176 |  |

|                   |
|-------------------|
|                   |  |  |  |  |  |  |  |
| (in millions)     | April 30, 2013 |   | October 31, 2012 |
| Finished products | $ | 852 |  |   | $ | 833 |  |
| Work in process   | 111 |  |   | 136 |  |
| Raw materials     | 513 |  |   | 568 |  |
| Total inventories | $ | 1,476 |  |   | $ | 1,537 |  |

----

Table of Contents

|                                                                                                                         |
|-------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                         |  |  |  |  |  |  |  |
| (in millions)                                                                                                           | April 30, 2013 |   | October 31, 2012 |
| Manufacturing operations:                                                                                               |   |   |   |
| Senior Secured Term Loan Credit Facility, as Amended, due 2017, net of unamortized discount of  $5 and $9, respectively | $ | 693 |  |   | $ | 991 |  |
| 8.25% Senior Notes, due 2021, net of unamortized discount of $23 and $28, respectively                                  | 1,177 |  |   | 872 |  |
| 3.0% Senior Subordinated Convertible Notes, due 2014, net of unamortized discount of $38 and $50, respectively          | 532 |  |   | 520 |  |
| Debt of majority-owned dealerships                                                                                      | 43 |  |   | 60 |  |
| Financing arrangements and capital lease obligations                                                                    | 87 |  |   | 140 |  |
| Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040                                                               | 225 |  |   | 225 |  |
| Promissory Note                                                                                                         | 25 |  |   | 30 |  |
| Financed lease obligations                                                                                              | 209 |  |   | — |  |
| Other                                                                                                                   | 59 |  |   | 67 |  |
| Total manufacturing operations debt                                                                                     | 3,050 |  |   | 2,905 |  |
| Less: Current portion                                                                                                   | 122 |  |   | 172 |  |
| Net long-term manufacturing operations debt                                                                             | $ | 2,928 |  |   | $ | 2,733 |  |

|                                                                                                       |
|-------------------------------------------------------------------------------------------------------|
|                                                                                                       |  |  |  |  |  |  |  |
| (in millions)                                                                                         | April 30, 2013 |   | October 31, 2012 |
| Financial Services operations:                                                                        |   |   |   |
| Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2019 | $ | 805 |  |   | $ | 994 |  |
| Bank revolvers, at fixed and variable rates, due dates from 2013 through 2019                         | 861 |  |   | 763 |  |
| Commercial paper, at variable rates, matured in 2013                                                  | — |  |   | 31 |  |
| Borrowings secured by operating and finance leases, at various rates, due serially through 2017       | 65 |  |   | 78 |  |
| Total financial services operations debt                                                              | 1,731 |  |   | 1,866 |  |
| Less: Current portion                                                                                 | 657 |  |   | 1,033 |  |
| Net long-term financial services operations debt                                                      | $ | 1,074 |  |   | $ | 833 |  |

----

Table of Contents

----

Table of Contents

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                               | Three Months Ended April 30, |   | Six Months Ended April 30, |
|                                               | PensionBenefits |   | Health andLife InsuranceBenefits |   | PensionBenefits |   | Health andLife InsuranceBenefits |
| (in millions)                                      | 2013 |   | 2012 |   | 2013 |   | 2012 |   | 2013 |   | 2012 |   | 2013 |   | 2012 |
| Service cost for benefits earned during the period | $ | 5 |  |   | $ | 4 |  |   | $ | 2 |  |   | $ | 2 |  |   | $ | 10 |  |   | $ | 8 |  |   | $ | 4 |  |   | $ | 4 |  |
| Interest on obligation                             | 36 |  |   | 43 |  |   | 16 |  |   | 21 |  |   | 72 |  |   | 86 |  |   | 31 |  |   | 42 |  |
| Amortization of cumulative loss                    | 32 |  |   | 27 |  |   | 8 |  |   | 11 |  |   | 64 |  |   | 55 |  |   | 15 |  |   | 20 |  |
| Amortization of prior service benefit              | — |  |   | — |  |   | (1 | ) |   | (1 | ) |   | — |  |   | — |  |   | (2 | ) |   | (2 | ) |
| Contractual termination benefits                   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (3 | ) |
| Premiums on pension insurance                      | 1 |  |   | 1 |  |   | — |  |   | — |  |   | 1 |  |   | 1 |  |   | — |  |   | — |  |
| Expected return on assets                          | (47 | ) |   | (48 | ) |   | (9 | ) |   | (9 | ) |   | (94 | ) |   | (96 | ) |   | (17 | ) |   | (18 | ) |
| Net postretirement benefits expense                | $ | 27 |  |   | $ | 27 |  |   | $ | 16 |  |   | $ | 24 |  |   | $ | 53 |  |   | $ | 54 |  |   | $ | 31 |  |   | $ | 43 |  |

----

Table of Contents

----

Table of Contents

|         |                                                                                              |
|---------|----------------------------------------------------------------------------------------------|
| • | Level 1—based upon quoted prices for identical instruments in active markets, |

|         |                                                                                                                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Level 2—based upon quoted prices for similar instruments, prices for identical or similar instruments in markets that are not active, or model-derived valuations, all of whose significant inputs are observable, and |

|         |                                                                            |
|---------|----------------------------------------------------------------------------|
| • | Level 3—based upon one or more significant unobservable inputs. |

----

Table of Contents

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                              | April 30, 2013 |   | October 31, 2012 |
| (in millions)                     | Level 1 |   | Level 2 |   | Level 3 |   | Total |   | Level 1 |   | Level 2 |   | Level 3 |   | Total |
| Assets                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Marketable securities:            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury bills               | $ | 662 |  |   | $ | — |  |   | $ | — |  |   | $ | 662 |  |   | $ | 420 |  |   | $ | — |  |   | $ | — |  |   | $ | 420 |  |
| Other                             | 71 |  |   | — |  |   | — |  |   | 71 |  |   | 46 |  |   | — |  |   | — |  |   | 46 |  |
| Derivative financial instruments: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency contracts        | — |  |   | 2 |  |   | — |  |   | 2 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Total assets                      | $ | 733 |  |   | $ | 2 |  |   | $ | — |  |   | $ | 735 |  |   | $ | 466 |  |   | $ | — |  |   | $ | — |  |   | $ | 466 |  |
| Liabilities                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative financial instruments: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity contracts               | $ | — |  |   | $ | 4 |  |   | $ | — |  |   | $ | 4 |  |   | $ | — |  |   | $ | 4 |  |   | $ | — |  |   | $ | 4 |  |
| Foreign currency contracts        | — |  |   | 1 |  |   | — |  |   | 1 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Guarantees                        | — |  |   | — |  |   | 7 |  |   | 7 |  |   | — |  |   | — |  |   | 7 |  |   | 7 |  |
| Total liabilities                 | $ | — |  |   | $ | 5 |  |   | $ | 7 |  |   | $ | 12 |  |   | $ | — |  |   | $ | 4 |  |   | $ | 7 |  |   | $ | 11 |  |

|                                                                    |
|--------------------------------------------------------------------|
|                                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                               | Three Months Ended April 30, |
|                                                               | 2013 |   | 2012 |
| (in millions)                                                      | Guarantees |   | Commodity contracts |   | Guarantees |   | Commodity contracts |
| Balance at February 1                                              | $ | (7 | ) |   | $ | — |  |   | $ | (7 | ) |   | $ | — |  |
| Total gains (losses) (realized/unrealized) included in earnings(A) | — |  |   | — |  |   | — |  |   | — |  |
| Transfers out of Level 3                                           | — |  |   | — |  |   | — |  |   | — |  |
| Issuances                                                          | — |  |   | — |  |   | — |  |   | — |  |
| Settlements                                                        | — |  |   | — |  |   | — |  |   | — |  |
| Balance at April 30                                                | $ | (7 | ) |   | $ | — |  |   | $ | (7 | ) |   | $ | — |  |
| Change in unrealized gains on assets and liabilities still held    | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |

|                                                                    |
|--------------------------------------------------------------------|
|                                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                               | Six Months Ended April 30, |
|                                                               | 2013 |   | 2012 |
| (in millions)                                                      | Guarantees |   | Commodity contracts |   | Guarantees |   | Commodity contracts |
| Balance at November 1                                              | $ | (7 | ) |   | $ | — |  |   | $ | (6 | ) |   | $ | (2 | ) |
| Total gains (losses) (realized/unrealized) included in earnings(A) | — |  |   | — |  |   | — |  |   | (1 | ) |
| Transfers out of Level 3                                           | — |  |   | — |  |   | — |  |   | 2 |  |
| Issuances                                                          | — |  |   | — |  |   | (1 | ) |   | — |  |
| Settlements                                                        | — |  |   | — |  |   | — |  |   | 1 |  |
| Balance at April 30                                                | $ | (7 | ) |   | $ | — |  |   | $ | (7 | ) |   | $ | — |  |
| Change in unrealized gains on assets and liabilities still held    | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |

|     |                                                                        |
|-----|------------------------------------------------------------------------|
| (A) | For commodity contracts, losses are included in Cost of products sold. |

----

Table of Contents

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |
| (in millions)                                      | April 30, 2013 |   | October 31, 2012 |
| Level 2 financial instruments                      |   |   |   |
| Carrying value of impaired finance receivables (A) | $ | 12 |  |   | $ | 14 |  |
| Specific loss reserve                              | 7 |  |   | 9 |  |
| Fair value                                         | $ | 5 |  |   | $ | 5 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Certain impaired finance receivables are measured at fair value on a nonrecurring basis. An impairment charge is recorded for the amount by which the carrying value of the receivables exceeds the fair value of the underlying collateral, net of remarketing costs. Fair values of the underlying collateral are determined by reference to dealer vehicle value publications adjusted for certain market factors. |

----

Table of Contents

|                                                                                                 |
|-------------------------------------------------------------------------------------------------|
|                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                            | April 30, 2013 |
|                                                                                            | Estimated Fair Value |   | Carrying Value |
| (in millions)                                                                                   | Level 1 |   | Level 2 |   | Level 3 |   | Total |   |
| Assets                                                                                          |   |   |   |   |   |   |   |   |   |
| Retail notes                                                                                    | $ | — |  |   | $ | — |  |   | $ | 478 |  |   | $ | 478 |  |   | $ | 478 |  |
| Notes receivable                                                                                | — |  |   | — |  |   | 17 |  |   | 17 |  |   | 13 |  |
| Liabilities                                                                                     |   |   |   |   |   |   |   |   |   |
| Debt:                                                                                           |   |   |   |   |   |   |   |   |   |
| Manufacturing operations                                                                        |   |   |   |   |   |   |   |   |   |
| Senior Secured Term Loan Credit Facility, as Amended due 2017                                   | — |  |   | — |  |   | 687 |  |   | 687 |  |   | 693 |  |
| 8.25% Senior Notes, due 2021                                                                    | 1,322 |  |   | — |  |   | — |  |   | 1,322 |  |   | 1,177 |  |
| 3.0% Senior Subordinated Convertible Notes, due 2014(A)                                    | 585 |  |   | — |  |   | — |  |   | 585 |  |   | 532 |  |
| Debt of majority-owned dealerships                                                              | — |  |   | — |  |   | 43 |  |   | 43 |  |   | 43 |  |
| Financing arrangements                                                                          | — |  |   | — |  |   | 54 |  |   | 54 |  |   | 83 |  |
| Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040                                  | — |  |   | 245 |  |   | — |  |   | 245 |  |   | 225 |  |
| Promissory Note                                                                                 | — |  |   | — |  |   | 25 |  |   | 25 |  |   | 25 |  |
| Financed lease obligations                                                                      | — |  |   | — |  |   | 209 |  |   | 209 |  |   | 209 |  |
| Other                                                                                           | — |  |   | — |  |   | 58 |  |   | 58 |  |   | 59 |  |
| Financial Services operations                                                                   |   |   |   |   |   |   |   |   |   |
| Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2019      | — |  |   | — |  |   | 807 |  |   | 807 |  |   | 805 |  |
| Bank revolvers, at fixed and variable rates, due dates from 2013 through 2019                   | — |  |   | — |  |   | 832 |  |   | 832 |  |   | 861 |  |
| Borrowings secured by operating and finance leases, at various rates, due serially through 2017 | — |  |   | — |  |   | 65 |  |   | 65 |  |   | 65 |  |

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

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

----

Table of Contents

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |
|                       | April 30, 2013 |
|                       | Asset Derivatives |   | Liability Derivatives |
| (in millions)              | Location inConsolidated Balance Sheets |   | Fair Value |   | Location inConsolidated Balance Sheets |   | Fair Value |
| Commodity contracts        | Other current assets |   | $ | — |  |   | Other current liabilities |   | $ | 4 |  |
| Foreign currency contracts | Other current assets |   | 2 |  |   | Other current liabilities |   | 1 |  |
| Total fair value           |   | $ | 2 |  |   |   |   | $ | 5 |  |

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

----

Table of Contents

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  | Location in Consolidated                                                                                                                                                             Statements of Operations |   | Amount of Loss (Gain) Recognized |
|                                  |   | Three Months Ended April 30, |   | Six Months Ended April 30, |
| (in millions)                         |   | 2013 |   | 2012 |   | 2013 |   | 2012 |
| Cross currency swaps                  | Other expense (income), net |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | 1 |  |
| Foreign currency contracts            | Other expense (income), net |   | 1 |  |   | 1 |  |   | 2 |  |   | (3 | ) |
| Commodity forward contracts | Costs of products sold |   | (2 | ) |   | — |  |   | (2 | ) |   | (1 | ) |
| Total loss (gain)                     |   | $ | (1 | ) |   | $ | 1 |  |   | $ | — |  |   | $ | (3 | ) |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |
| (in millions)             | Currency |   | Notional Amount |   | Maturity |
| As of April 30, 2013      |   |   |   |   |   |
| Option collar contracts   | EUR |   | € | 16 |  |   | April 2013 - October 2013 |
| Forward exchange contract | CAD |   | C$ | 50 |  |   | October 2013 |
| Option collar contract    | CAD |   | C$ | 50 |  |   | October 2013 |
| Option collar contract    | BRL |   | US$ | 25 |  |   | October 2013 |
| As of October 31, 2012    |   |   |   |   |   |
| Option collar contracts   | EUR |   | € | 25 |  |   | October 2012 - April 2013 |

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Our Truck segment manufactures and distributes a full line of Class 4 through 8 trucks, buses, and military vehicles under the International and IC Bus ("IC") brands. Our Truck segment also produces concrete mixers under the Continental Mixers brand. In an effort to strengthen and maintain our dealer network, this segment occasionally acquires and operates dealer locations for the purpose of transitioning ownership. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Our Engine segment designs and manufactures diesel engines for use globally, in Class 3 through 8 vehicles, as well as off-road applications. In North America, these engines primarily go into our trucks and buses. In Brazil, our Engine segment produces diesel engines, primarily under contract manufacturing arrangements, as well as under the MWM brand, for sale to OEMs in South America. In all other areas of the world, including North America, engines are sold under the MaxxForce brand name. Also included in the Engine segment are the operating results of BDP, which manages the sourcing, merchandising, and distribution of certain service parts we sell to Ford in North America. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Our Parts segment provides customers with proprietary products needed to support the International commercial and military truck, IC Bus, MaxxForce engine lines, as well as our other product lines. Our Parts segment also provides a wide selection of other standard truck, trailer, and engine aftermarket parts. At April 30, 2013, this segment operated eleven regional parts distribution centers that provide 24-hour availability and shipment. |

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

----

Table of Contents

|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                            | Truck |   | Engine |   | Parts |   | FinancialServices(A) | Corporate and Eliminations |   | Total |
| Three Months Ended April 30, 2013                                        |   |   |   |   |   |   |   |   |   |   |   |
| External sales and revenues, net                                         | $ | 1,515 |  |   | $ | 458 |  |   | $ | 514 |  |   | $ | 39 |  |   | $ | — |  |   | $ | 2,526 |  |
| Intersegment sales and revenues                                          | 4 |  |   | 286 |  |   | 16 |  |   | 19 |  |   | (325 | ) |   | — |  |
| Total sales and revenues, net                                            | $ | 1,519 |  |   | $ | 744 |  |   | $ | 530 |  |   | $ | 58 |  |   | $ | (325 | ) |   | $ | 2,526 |  |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing operations attributable to NIC, net of tax | $ | (109 | ) |   | $ | (138 | ) |   | $ | 91 |  |   | $ | 19 |  |   | $ | (216 | ) |   | $ | (353 | ) |
| Income tax expense                                                       | — |  |   | — |  |   | — |  |   | — |  |   | (22 | ) |   | (22 | ) |
| Segment profit (loss)                                                    | $ | (109 | ) |   | $ | (138 | ) |   | $ | 91 |  |   | $ | 19 |  |   | $ | (194 | ) |   | $ | (331 | ) |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization(B)                                         | $ | 92 |  |   | $ | 33 |  |   | $ | 2 |  |   | $ | 10 |  |   | $ | 5 |  |   | $ | 142 |  |
| Interest expense                                                         | — |  |   | — |  |   | — |  |   | 17 |  |   | 73 |  |   | 90 |  |
| Equity in income (loss) of non-consolidated affiliates                   | — |  |   | 1 |  |   | 3 |  |   | — |  |   | — |  |   | 4 |  |
| Capital expenditures(B)(C)                                               | 16 |  |   | 16 |  |   | — |  |   | 1 |  |   | 2 |  |   | 35 |  |

|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                            | Truck |   | Engine |   | Parts |   | FinancialServices(A) |   | Corporate and Eliminations |   | Total |
| Three Months Ended April 30, 2012                                        |   |   |   |   |   |   |   |   |   |   |   |
| External sales and revenues, net                                         | $ | 2,316 |  |   | $ | 440 |  |   | $ | 462 |  |   | $ | 43 |  |   | $ | — |  |   | $ | 3,261 |  |
| Intersegment sales and revenues                                          | 2 |  |   | 454 |  |   | 34 |  |   | 24 |  |   | (514 | ) |   | — |  |
| Total sales and revenues, net                                            | $ | 2,318 |  |   | $ | 894 |  |   | $ | 496 |  |   | $ | 67 |  |   | $ | (514 | ) |   | $ | 3,261 |  |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing operations attributable to NIC, net of tax | $ | (45 | ) |   | $ | (108 | ) |   | $ | 41 |  |   | $ | 26 |  |   | $ | (52 | ) |   | $ | (138 | ) |
| Income tax benefit                                                       | — |  |   | — |  |   | — |  |   | — |  |   | 123 |  |   | 123 |  |
| Segment profit (loss)                                                    | $ | (45 | ) |   | $ | (108 | ) |   | $ | 41 |  |   | $ | 26 |  |   | $ | (175 | ) |   | $ | (261 | ) |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization(B)                                         | $ | 35 |  |   | $ | 30 |  |   | $ | 4 |  |   | $ | 8 |  |   | $ | 5 |  |   | $ | 82 |  |
| Interest expense                                                         | — |  |   | — |  |   | — |  |   | 22 |  |   | 40 |  |   | 62 |  |
| Equity in income (loss) of non-consolidated affiliates                   | (6 | ) |   | — |  |   | 2 |  |   | — |  |   | — |  |   | (4 | ) |
| Capital expenditures(B)(C)                                               | 16 |  |   | 36 |  |   | 5 |  |   | 1 |  |   | 15 |  |   | 73 |  |

|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                            | Truck |   | Engine |   | Parts |   | FinancialServices(A) |   | Corporate and Eliminations |   | Total |
| Six Months Ended April 30, 2013                                          |   |   |   |   |   |   |   |   |   |   |   |
| External sales and revenues, net                                         | $ | 3,171 |  |   | $ | 870 |  |   | $ | 1,044 |  |   | $ | 78 |  |   | $ | — |  |   | $ | 5,163 |  |
| Intersegment sales and revenues                                          | 26 |  |   | 614 |  |   | 38 |  |   | 39 |  |   | (717 | ) |   | — |  |
| Total sales and revenues, net                                            | $ | 3,197 |  |   | $ | 1,484 |  |   | $ | 1,082 |  |   | $ | 117 |  |   | $ | (717 | ) |   | $ | 5,163 |  |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing operations attributable to NIC, net of tax | $ | (167 | ) |   | $ | (165 | ) |   | $ | 177 |  |   | $ | 41 |  |   | $ | (353 | ) |   | $ | (467 | ) |
| Income tax expense                                                       | — |  |   | — |  |   | — |  |   | — |  |   | (37 | ) |   | (37 | ) |
| Segment profit (loss)                                                    | $ | (167 | ) |   | $ | (165 | ) |   | $ | 177 |  |   | $ | 41 |  |   | $ | (316 | ) |   | $ | (430 | ) |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization(B)                                         | $ | 134 |  |   | $ | 72 |  |   | $ | 5 |  |   | $ | 19 |  |   | $ | 12 |  |   | $ | 242 |  |
| Interest expense                                                         | — |  |   | — |  |   | — |  |   | 35 |  |   | 129 |  |   | 164 |  |
| Equity in income (loss) of non-consolidated affiliates                   | — |  |   | (1 | ) |   | 4 |  |   | — |  |   | — |  |   | 3 |  |
| Capital expenditures(B)(C)                                               | 31 |  |   | 69 |  |   | 1 |  |   | 1 |  |   | 5 |  |   | 107 |  |

----

Table of Contents

|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                            | Truck |   | Engine |   | Parts |   | FinancialServices(A) |   | Corporate and Eliminations |   | Total |
| Six Months Ended April 30, 2012                                          |   |   |   |   |   |   |   |   |   |   |   |
| External sales and revenues, net                                         | $ | 4,427 |  |   | $ | 860 |  |   | $ | 896 |  |   | $ | 87 |  |   | $ | — |  |   | $ | 6,270 |  |
| Intersegment sales and revenues                                          | 13 |  |   | 893 |  |   | 69 |  |   | 48 |  |   | (1,023 | ) |   | — |  |
| Total sales and revenues, net                                            | $ | 4,440 |  |   | $ | 1,753 |  |   | $ | 965 |  |   | $ | 135 |  |   | $ | (1,023 | ) |   | $ | 6,270 |  |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing operations attributable to NIC, net of tax | $ | (72 | ) |   | $ | (228 | ) |   | $ | 91 |  |   | $ | 53 |  |   | $ | (126 | ) |   | $ | (282 | ) |
| Income tax benefit                                                       | — |  |   | — |  |   | — |  |   | — |  |   | 199 |  |   | 199 |  |
| Segment profit (loss)                                                    | $ | (72 | ) |   | $ | (228 | ) |   | $ | 91 |  |   | $ | 53 |  |   | $ | (325 | ) |   | $ | (481 | ) |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization(B)                                         | $ | 69 |  |   | $ | 59 |  |   | $ | 6 |  |   | $ | 16 |  |   | $ | 10 |  |   | $ | 160 |  |
| Interest expense                                                         | — |  |   | — |  |   | — |  |   | 47 |  |   | 76 |  |   | 123 |  |
| Equity in income (loss) of non-consolidated affiliates                   | (15 | ) |   | 1 |  |   | 3 |  |   | — |  |   | — |  |   | (11 | ) |
| Capital expenditures(B)(C)                                               | 32 |  |   | 76 |  |   | 12 |  |   | 2 |  |   | 54 |  |   | 176 |  |

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)          | Truck(B) |   | Engine |   | Parts |   | Financial Services |   | Corporate and Eliminations |   | Total |
| Segment assets, as of: |   |   |   |   |   |   |   |   |   |   |   |
| April 30, 2013         | $ | 2,139 |  |   | $ | 1,738 |  |   | $ | 709 |  |   | $ | 2,518 |  |   | $ | 1,619 |  |   | $ | 8,723 |  |
| October 31, 2012       | $ | 2,118 |  |   | $ | 1,777 |  |   | $ | 707 |  |   | $ | 2,563 |  |   | $ | 1,937 |  |   | $ | 9,102 |  |

|     |                                                                                                                                                                                                                                                                                                    |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Total sales and revenues in the Financial Services segment include interest revenues of $46 million and $93 million for the three and six months ended April 30, 2013, respectively, and $56 million and $114 million for three and six months ended April 30, 2012, respectively. |

|     |                                                                                                                                        |
|-----|----------------------------------------------------------------------------------------------------------------------------------------|
| (B) | Includes amounts related to discontinued operations. For more information, see Note 2, Discontinued Operations and Other Divestitures. |

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

----

Table of Contents

|                                                                                 |
|---------------------------------------------------------------------------------|
|                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                            | Three Months Ended April 30, |   | Six Months Ended      April 30, |
| (in millions, except per share data)                                            | 2013 |   | 2012 |   | 2013 |   | 2012 |
| Numerator:                                                                      |   |   |   |   |   |   |   |
| Amounts attributable to Navistar International Corporation common stockholders: |   |   |   |   |   |   |
| Loss from continuing operations, net of tax                                     | $ | (353 | ) |   | $ | (138 | ) |   | $ | (467 | ) |   | $ | (282 | ) |
| Loss from discontinued operations, net of tax                                   | (21 | ) |   | (34 | ) |   | (30 | ) |   | (43 | ) |
| Net loss                                                                        | $ | (374 | ) |   | $ | (172 | ) |   | $ | (497 | ) |   | $ | (325 | ) |
|                                                                            |   |   |   |   |   |   |   |
| Denominator:                                                                    |   |   |   |   |   |   |   |
| Weighted average shares outstanding:                                            |   |   |   |   |   |   |   |
| Basic                                                                           | 80.4 |  |   | 68.7 |  |   | 80.3 |  |   | 69.3 |  |
| Effect of dilutive securities                                                   | — |  |   | — |  |   | — |  |   | — |  |
| Diluted                                                                         | 80.4 |  |   | 68.7 |  |   | 80.3 |  |   | 69.3 |  |
|                                                                            |   |   |   |   |   |   |   |
| Loss per share amount attributable to Navistar International Corporation:       |   |   |   |   |   |   |
| Basic:                                                                          |   |   |   |   |   |   |   |
| Continuing operations                                                           | $ | (4.39 | ) |   | $ | (2.01 | ) |   | $ | (5.82 | ) |   | $ | (4.07 | ) |
| Discontinued operations                                                         | (0.26 | ) |   | (0.49 | ) |   | (0.37 | ) |   | (0.62 | ) |
| Net loss                                                                        | $ | (4.65 | ) |   | $ | (2.50 | ) |   | $ | (6.19 | ) |   | $ | (4.69 | ) |
| Diluted:                                                                        |   |   |   |   |   |   |   |
| Continuing operations                                                           | $ | (4.39 | ) |   | $ | (2.01 | ) |   | $ | (5.82 | ) |   | $ | (4.07 | ) |
| Discontinued operations                                                         | (0.26 | ) |   | (0.49 | ) |   | (0.37 | ) |   | (0.62 | ) |
| Net loss                                                                        | $ | (4.65 | ) |   | $ | (2.50 | ) |   | $ | (6.19 | ) |   | $ | (4.69 | ) |

----

Table of Contents

|                                                                      |
|----------------------------------------------------------------------|
|                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Operations                      |   |   |   |   |   |   |   |   |   |
| For the Three Months Ended April 30, 2013                            |   |   |   |   | Non-GuarantorSubsidiaries |   |   |   |   |
| (in millions)                                                        | NIC |   | Navistar,Inc. |   |   | Eliminationsand Other |   | Consolidated |
| Sales and revenues, net                                              | $ | — |  |   | $ | 1,493 |  |   | $ | 2,293 |  |   | $ | (1,260 | ) |   | $ | 2,526 |  |
| Costs of products sold                                               | — |  |   | 1,622 |  |   | 1,987 |  |   | (1,246 | ) |   | 2,363 |  |
| Restructuring charges                                                | — |  |   | 4 |  |   | 2 |  |   | — |  |   | 6 |  |
| All other operating expenses (income)                                | (48 | ) |   | 349 |  |   | 125 |  |   | 57 |  |   | 483 |  |
| Total costs and expenses                                             | (48 | ) |   | 1,975 |  |   | 2,114 |  |   | (1,189 | ) |   | 2,852 |  |
| Equity in income (loss) of affiliates                                | (422 | ) |   | 50 |  |   | 1 |  |   | 375 |  |   | 4 |  |
| Income (loss) before income taxes                                    | (374 | ) |   | (432 | ) |   | 180 |  |   | 304 |  |   | (322 | ) |
| Income tax expense                                                   | — |  |   | (1 | ) |   | (21 | ) |   | — |  |   | (22 | ) |
| Earnings (loss) from continuing operations                           | (374 | ) |   | (433 | ) |   | 159 |  |   | 304 |  |   | (344 | ) |
| Loss from discontinued operations, net of tax                        | — |  |   | — |  |   | (21 | ) |   | — |  |   | (21 | ) |
| Net income (loss)                                                    | (374 | ) |   | (433 | ) |   | 138 |  |   | 304 |  |   | (365 | ) |
| Less: Net income attributable to non-controlling interests           | — |  |   | — |  |   | 9 |  |   | — |  |   | 9 |  |
| Net income (loss) attributable to Navistar International Corporation | $ | (374 | ) |   | $ | (433 | ) |   | $ | 129 |  |   | $ | 304 |  |   | $ | (374 | ) |

----

Table of Contents

|                                                                                      |
|--------------------------------------------------------------------------------------|
|                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Comprehensive Income (Loss)                     |   |   |   |   |   |   |
| For the Three Months Ended April 30, 2013                                            |   |   |   |   | Non-GuarantorSubsidiaries |   |   |   |   |
| (in millions)                                                                        | NIC |   | Navistar,Inc. |   |   | Eliminationsand Other |   | Consolidated |
| Net income (loss) attributable to Navistar International Corporation                 | $ | (374 | ) |   | $ | (433 | ) |   | $ | 129 |  |   | $ | 304 |  |   | $ | (374 | ) |
| Other comprehensive income (loss):                                                   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                              | 3 |  |   | — |  |   | 2 |  |   | (2 | ) |   | 3 |  |
| Defined benefit plans (net of tax of $1, $-, $1, $(1), and $1 respectively)          | 40 |  |   | 35 |  |   | 5 |  |   | (40 | ) |   | 40 |  |
| Total other comprehensive income (loss)                                              | 43 |  |   | 35 |  |   | 7 |  |   | (42 | ) |   | 43 |  |
| Total comprehensive income (loss) attributable to Navistar International Corporation | $ | (331 | ) |   | $ | (398 | ) |   | $ | 136 |  |   | $ | 262 |  |   | $ | (331 | ) |

|                                                                      |
|----------------------------------------------------------------------|
|                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Operations                      |   |   |   |   |   |   |   |   |   |
| For the Six Months Ended April 30, 2013                              |   |   |   |   | Non-GuarantorSubsidiaries |   |   |   |   |
| (in millions)                                                        | NIC |   | Navistar,Inc. |   |   | Eliminationsand Other |   | Consolidated |
| Sales and revenues, net                                              | $ | — |  |   | $ | 3,102 |  |   | $ | 4,551 |  |   | $ | (2,490 | ) |   | $ | 5,163 |  |
| Costs of products sold                                               | — |  |   | 3,217 |  |   | 3,896 |  |   | (2,464 | ) |   | 4,649 |  |
| Restructuring charges                                                | — |  |   | 4 |  |   | 4 |  |   | — |  |   | 8 |  |
| All other operating expenses (income)                                | (27 | ) |   | 580 |  |   | 317 |  |   | 45 |  |   | 915 |  |
| Total costs and expenses                                             | (27 | ) |   | 3,801 |  |   | 4,217 |  |   | (2,419 | ) |   | 5,572 |  |
| Equity in income (loss) of affiliates                                | (524 | ) |   | 104 |  |   | (1 | ) |   | 424 |  |   | 3 |  |
| Income (loss) before income taxes                                    | (497 | ) |   | (595 | ) |   | 333 |  |   | 353 |  |   | (406 | ) |
| Income tax expense                                                   | — |  |   | (12 | ) |   | (25 | ) |   | — |  |   | (37 | ) |
| Earnings (loss) from continuing operations                           | (497 | ) |   | (607 | ) |   | 308 |  |   | 353 |  |   | (443 | ) |
| Loss from discontinued operations, net of tax                        | — |  |   | — |  |   | (30 | ) |   | — |  |   | (30 | ) |
| Net income (loss)                                                    | (497 | ) |   | (607 | ) |   | 278 |  |   | 353 |  |   | (473 | ) |
| Less: Net income attributable to non-controlling interests           | — |  |   | — |  |   | 24 |  |   | — |  |   | 24 |  |
| Net income (loss) attributable to Navistar International Corporation | $ | (497 | ) |   | $ | (607 | ) |   | $ | 254 |  |   | $ | 353 |  |   | $ | (497 | ) |

|                                                                                      |
|--------------------------------------------------------------------------------------|
|                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Comprehensive Income (Loss)                     |   |   |   |   |   |   |
| For the Six Months Ended April 30, 2013                                              |   |   |   |   | Non-GuarantorSubsidiaries |   |   |   |   |
| (in millions)                                                                        | NIC |   | Navistar,Inc. |   |   | Eliminationsand Other |   | Consolidated |
| Net income (loss) attributable to Navistar International Corporation                 | $ | (497 | ) |   | $ | (607 | ) |   | $ | 254 |  |   | $ | 353 |  |   | $ | (497 | ) |
| Other comprehensive income (loss):                                                   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                              | 20 |  |   | — |  |   | 20 |  |   | (20 | ) |   | 20 |  |
| Defined benefit plans (net of tax of $1, $-, $1, $(1), and $1 respectively)          | 78 |  |   | 70 |  |   | 8 |  |   | (78 | ) |   | 78 |  |
| Total other comprehensive income (loss)                                              | 98 |  |   | 70 |  |   | 28 |  |   | (98 | ) |   | 98 |  |
| Total comprehensive income (loss) attributable to Navistar International Corporation | $ | (399 | ) |   | $ | (537 | ) |   | $ | 282 |  |   | $ | 255 |  |   | $ | (399 | ) |

----

Table of Contents

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Balance Sheet                                                   |   |   |   |   |   |   |   |   |   |
| As of April 30, 2013                                                                    |   |   |   |   | Non-GuarantorSubsidiaries |   |   |   |   |
| (in millions)                                                                           | NIC |   | Navistar,Inc. |   |   | Eliminationsand Other |   | Consolidated |
| Assets                                                                                  |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                               | $ | 218 |  |   | $ | 36 |  |   | $ | 251 |  |   | $ | — |  |   | $ | 505 |  |
| Marketable securities                                                                   | 501 |  |   | — |  |   | 232 |  |   | — |  |   | 733 |  |
| Restricted cash                                                                         | 25 |  |   | 7 |  |   | 85 |  |   | — |  |   | 117 |  |
| Finance and other receivables, net                                                      | 8 |  |   | 165 |  |   | 2,806 |  |   | (12 | ) |   | 2,967 |  |
| Inventories                                                                             | — |  |   | 725 |  |   | 784 |  |   | (33 | ) |   | 1,476 |  |
| Investments in non-consolidated affiliates                                              | (5,971 | ) |   | 6,556 |  |   | 43 |  |   | (576 | ) |   | 52 |  |
| Property and equipment, net                                                             | — |  |   | 930 |  |   | 849 |  |   | (3 | ) |   | 1,776 |  |
| Goodwill                                                                                | — |  |   | 66 |  |   | 209 |  |   | — |  |   | 275 |  |
| Deferred taxes, net                                                                     | 9 |  |   | 10 |  |   | 237 |  |   | — |  |   | 256 |  |
| Other                                                                                   | 51 |  |   | 180 |  |   | 337 |  |   | (2 | ) |   | 566 |  |
| Total assets                                                                            | $ | (5,159 | ) |   | $ | 8,675 |  |   | $ | 5,833 |  |   | $ | (626 | ) |   | $ | 8,723 |  |
| Liabilities and stockholders’ equity (deficit)                                    |   |   |   |   |   |   |   |   |   |
| Debt                                                                                    | $ | 1,934 |  |   | $ | 1,012 |  |   | $ | 1,843 |  |   | $ | (8 | ) |   | $ | 4,781 |  |
| Postretirement benefits liabilities                                                     | — |  |   | 3,073 |  |   | 351 |  |   | — |  |   | 3,424 |  |
| Amounts due to (from) affiliates                                                        | (6,511 | ) |   | 10,396 |  |   | (3,958 | ) |   | 73 |  |   | — |  |
| Other liabilities                                                                       | 3,090 |  |   | 516 |  |   | 624 |  |   | (74 | ) |   | 4,156 |  |
| Total liabilities                                                                       | (1,487 | ) |   | 14,997 |  |   | (1,140 | ) |   | (9 | ) |   | 12,361 |  |
| Redeemable equity securities                                                            | 4 |  |   | — |  |   | — |  |   | — |  |   | 4 |  |
| Stockholders’ equity attributable to non-controlling interests                    | — |  |   | — |  |   | 35 |  |   | — |  |   | 35 |  |
| Stockholders’ equity (deficit) attributable to Navistar International Corporation | (3,676 | ) |   | (6,322 | ) |   | 6,938 |  |   | (617 | ) |   | (3,677 | ) |
| Total liabilities and stockholders’ equity (deficit)                              | $ | (5,159 | ) |   | $ | 8,675 |  |   | $ | 5,833 |  |   | $ | (626 | ) |   | $ | 8,723 |  |

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Cash Flows                 |   |   |   |   |   |   |   |   |   |
| For the Six Months Ended April 30, 2013                         |   |   |   |   | Non-GuarantorSubsidiaries |   |   |   |   |
| (in millions)                                                   | NIC |   | Navistar,Inc. |   |   | Eliminationsand Other |   | Consolidated |
| Net cash provided by (used in) operations                       | $ | (648 | ) |   | $ | (288 | ) |   | $ | 222 |  |   | $ | 671 |  |   | $ | (43 | ) |
| Cash flows from investment activities                           |   |   |   |   |   |   |   |   |   |
| Net change in restricted cash and cash equivalents              | (1 | ) |   | — |  |   | 45 |  |   | — |  |   | 44 |  |
| Net purchases of marketable securities                          | (186 | ) |   | — |  |   | (81 | ) |   | — |  |   | (267 | ) |
| Capital expenditures and purchase of equipment leased to others | — |  |   | (304 | ) |   | (98 | ) |   | — |  |   | (402 | ) |
| Other investing activities                                      | — |  |   | 9 |  |   | 40 |  |   | — |  |   | 49 |  |
| Net cash used in investment activities                          | (187 | ) |   | (295 | ) |   | (94 | ) |   | — |  |   | (576 | ) |
| Cash flows from financing activities                            |   |   |   |   |   |   |   |   |   |
| Net borrowings (repayments) of debt                             | 327 |  |   | 301 |  |   | (179 | ) |   | (671 | ) |   | (222 | ) |
| Other financing activities                                      | 24 |  |   | 263 |  |   | (23 | ) |   | — |  |   | 264 |  |
| Net cash provided by (used in) financing activities             | 351 |  |   | 564 |  |   | (202 | ) |   | (671 | ) |   | 42 |  |
| Effect of exchange rate changes on cash and cash equivalents    | — |  |   | — |  |   | (5 | ) |   | — |  |   | (5 | ) |
| Decrease in cash and cash equivalents                           | (484 | ) |   | (19 | ) |   | (79 | ) |   | — |  |   | (582 | ) |
| Cash and cash equivalents at beginning of the period            | 702 |  |   | 55 |  |   | 330 |  |   | — |  |   | 1,087 |  |
| Cash and cash equivalents at end of the period                  | $ | 218 |  |   | $ | 36 |  |   | $ | 251 |  |   | $ | — |  |   | $ | 505 |  |

----

Table of Contents

|                                                                      |
|----------------------------------------------------------------------|
|                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Operations                      |   |   |   |   |   |   |   |   |   |
| For the Three Months Ended April 30, 2012                            |   |   |   |   | Non-GuarantorSubsidiaries |   |   |   |   |
| (in millions)                                                        | NIC |   | Navistar,Inc. |   |   | Eliminationsand Other |   | Consolidated |
| Sales and revenues, net                                              | $ | — |  |   | $ | 2,172 |  |   | $ | 2,974 |  |   | $ | (1,885 | ) |   | $ | 3,261 |  |
| Costs of products sold                                               | — |  |   | 2,205 |  |   | 2,555 |  |   | (1,860 | ) |   | 2,900 |  |
| Restructuring charges                                                | — |  |   | 19 |  |   | — |  |   | — |  |   | 19 |  |
| Impairment of intangible assets                                      | — |  |   | — |  |   | 10 |  |   | — |  |   | 10 |  |
| All other operating expenses (income)                                | 14 |  |   | 357 |  |   | 233 |  |   | (25 | ) |   | 579 |  |
| Total costs and expenses                                             | 14 |  |   | 2,581 |  |   | 2,798 |  |   | (1,885 | ) |   | 3,508 |  |
| Equity in income (loss) of affiliates                                | (96 | ) |   | 271 |  |   | (6 | ) |   | (173 | ) |   | (4 | ) |
| Income (loss) before income taxes                                    | (110 | ) |   | (138 | ) |   | 170 |  |   | (173 | ) |   | (251 | ) |
| Income tax benefit (expense)                                         | (62 | ) |   | (63 | ) |   | 211 |  |   | 37 |  |   | 123 |  |
| Earnings (loss) from continuing operations                           | (172 | ) |   | (201 | ) |   | 381 |  |   | (136 | ) |   | (128 | ) |
| Loss from discontinued operations, net of tax                        | — |  |   | — |  |   | (34 | ) |   | — |  |   | (34 | ) |
| Net income (loss)                                                    | (172 | ) |   | (201 | ) |   | 347 |  |   | (136 | ) |   | (162 | ) |
| Less: Net income attributable to non-controlling interests           | — |  |   | — |  |   | 10 |  |   | — |  |   | 10 |  |
| Net income (loss) attributable to Navistar International Corporation | $ | (172 | ) |   | $ | (201 | ) |   | $ | 337 |  |   | $ | (136 | ) |   | $ | (172 | ) |

|                                                                                      |
|--------------------------------------------------------------------------------------|
|                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Comprehensive Income (Loss)                     |   |   |   |   |   |   |
| For the Three Months Ended April 30, 2012                                            |   |   |   |   | Non-GuarantorSubsidiaries |   |   |   |   |
| (in millions)                                                                        | NIC |   | Navistar,Inc. |   |   | Eliminationsand Other |   | Consolidated |
| Net income (loss) attributable to Navistar International Corporation                 | $ | (172 | ) |   | $ | (201 | ) |   | $ | 337 |  |   | $ | (136 | ) |   | $ | (172 | ) |
| Other comprehensive income (loss):                                                   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                              | (65 | ) |   | — |  |   | (65 | ) |   | 65 |  |   | (65 | ) |
| Defined benefit plans (net of tax of $(12), $(12), $-, $12, and $(12) respectively)  | 17 |  |   | 16 |  |   | 2 |  |   | (18 | ) |   | 17 |  |
| Total other comprehensive income (loss)                                              | (48 | ) |   | 16 |  |   | (63 | ) |   | 47 |  |   | (48 | ) |
| Total comprehensive income (loss) attributable to Navistar International Corporation | $ | (220 | ) |   | $ | (185 | ) |   | $ | 274 |  |   | $ | (89 | ) |   | $ | (220 | ) |

----

Table of Contents

|                                                                      |
|----------------------------------------------------------------------|
|                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Operations                      |   |   |   |   |   |   |   |
| For the Six Months Ended April 30, 2012                              |   |   |   |   | Non-GuarantorSubsidiaries |   |   |   |   |
| (in millions)                                                        | NIC |   | Navistar,Inc. |   |   | Eliminationsand Other |   | Consolidated |
| Sales and revenues, net                                              | $ | — |  |   | $ | 4,134 |  |   | $ | 5,755 |  |   | $ | (3,619 | ) |   | $ | 6,270 |  |
| Costs of products sold                                               | — |  |   | 4,200 |  |   | 4,931 |  |   | (3,581 | ) |   | 5,550 |  |
| Restructuring charges                                                | — |  |   | 19 |  |   | — |  |   | — |  |   | 19 |  |
| Impairment of property and equipment and intangible assets           | — |  |   | — |  |   | 10 |  |   | — |  |   | 10 |  |
| All other operating expenses (income)                                | 39 |  |   | 691 |  |   | 459 |  |   | (51 | ) |   | 1,138 |  |
| Total costs and expenses                                             | 39 |  |   | 4,910 |  |   | 5,400 |  |   | (3,632 | ) |   | 6,717 |  |
| Equity in income (loss) of affiliates                                | (296 | ) |   | 366 |  |   | (13 | ) |   | (68 | ) |   | (11 | ) |
| Income (loss) before income taxes                                    | (335 | ) |   | (410 | ) |   | 342 |  |   | (55 | ) |   | (458 | ) |
| Income tax benefit                                                   | 10 |  |   | 14 |  |   | 172 |  |   | 3 |  |   | 199 |  |
| Earnings (loss) from continuing operations                           | (325 | ) |   | (396 | ) |   | 514 |  |   | (52 | ) |   | (259 | ) |
| Loss from discontinued operations, net of tax                        | — |  |   | — |  |   | (43 | ) |   | — |  |   | (43 | ) |
| Net income (loss)                                                    | (325 | ) |   | (396 | ) |   | 471 |  |   | (52 | ) |   | (302 | ) |
| Less: Net income attributable to non-controlling interests           | — |  |   | — |  |   | 23 |  |   | — |  |   | 23 |  |
| Net income (loss) attributable to Navistar International Corporation | $ | (325 | ) |   | $ | (396 | ) |   | $ | 448 |  |   | $ | (52 | ) |   | $ | (325 | ) |

|                                                                                       |
|---------------------------------------------------------------------------------------|
|                                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Comprehensive Income (Loss)                      |   |   |   |   |   |   |
| For the Six Months Ended April 30, 2012                                               |   |   |   |   | Non-GuarantorSubsidiaries |   |   |   |   |
| (in millions)                                                                         | NIC |   | Navistar,Inc. |   |   | Eliminationsand Other |   | Consolidated |
| Net income (loss) attributable to Navistar International Corporation                  | $ | (325 | ) |   | $ | (396 | ) |   | $ | 448 |  |   | $ | (52 | ) |   | $ | (325 | ) |
| Other comprehensive income (loss):                                                    |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                               | (78 | ) |   | — |  |   | (78 | ) |   | 78 |  |   | (78 | ) |
| Defined benefit plans (net of tax of $(24), $(23), $(1), $24, and $(24) respectively) | 40 |  |   | 36 |  |   | 5 |  |   | (41 | ) |   | 40 |  |
| Total other comprehensive income (loss)                                               | (38 | ) |   | 36 |  |   | (73 | ) |   | 37 |  |   | (38 | ) |
| Total comprehensive income (loss) attributable to Navistar International Corporation  | $ | (363 | ) |   | $ | (360 | ) |   | $ | 375 |  |   | $ | (15 | ) |   | $ | (363 | ) |

----

Table of Contents

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

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Cash Flows                 |   |   |   |   |   |   |   |   |   |
| For the Six Months Ended April 30, 2012                         |   |   |   |   | Non-GuarantorSubsidiaries |   |   |   |   |
| (in millions)                                                   | NIC |   | Navistar,Inc. |   |   | Eliminationsand Other |   | Consolidated |
| Net cash provided by (used in) operations                       | $ | (463 | ) |   | $ | (267 | ) |   | $ | 248 |  |   | $ | 531 |  |   | $ | 49 |  |
| Cash flows from investment activities                           |   |   |   |   |   |   |   |   |   |
| Net change in restricted cash and cash equivalents              | 6 |  |   | 2 |  |   | 174 |  |   | — |  |   | 182 |  |
| Net purchases in marketable securities                          | 374 |  |   | — |  |   | 7 |  |   | — |  |   | 381 |  |
| Capital expenditures and purchase of equipment leased to others | — |  |   | (115 | ) |   | (89 | ) |   | — |  |   | (204 | ) |
| Other investing activities                                      | — |  |   | (104 | ) |   | 70 |  |   | — |  |   | (34 | ) |
| Net cash provided by (used in) investment activities            | 380 |  |   | (217 | ) |   | 162 |  |   | — |  |   | 325 |  |
| Cash flows from financing activities                            |   |   |   |   |   |   |   |   |   |
| Net borrowings (repayments) of debt                             | (50 | ) |   | 519 |  |   | (429 | ) |   | (440 | ) |   | (400 | ) |
| Other financing activities                                      | 19 |  |   | — |  |   | (38 | ) |   | (91 | ) |   | (110 | ) |
| Net cash provided by (used in) financing activities             | (31 | ) |   | 519 |  |   | (467 | ) |   | (531 | ) |   | (510 | ) |
| Effect of exchange rate changes on cash and cash equivalents    | — |  |   | — |  |   | (3 | ) |   | — |  |   | (3 | ) |
| Increase (decrease) in cash and cash equivalents                | (114 | ) |   | 35 |  |   | (60 | ) |   | — |  |   | (139 | ) |
| Cash and cash equivalents at beginning of the period            | 226 |  |   | 13 |  |   | 300 |  |   | — |  |   | 539 |  |
| Cash and cash equivalents at end of the period                  | $ | 112 |  |   | $ | 48 |  |   | $ | 240 |  |   | $ | — |  |   | $ | 400 |  |

----

Table of Contents

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

|         |                                                                                                                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In December 2012, we met our first major engine strategy milestone with the launch of certain class 8 truck models featuring the Cummins ISX15 engine (the "Cummins 15L") with the Cummins SCR after-treatment system. |

|         |                                                                                                                                                                                                                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In April 2013, we met another major engine strategy milestone with the receipt of the EPA certification of our MaxxForce 13L Big-Bore engines with the Cummins SCR after-treatment system (the "Certified MaxxForce 13L engine"). Then, later in that same month, we began shipping our International® ProStar® trucks powered by our Certified MaxxForce 13L engine. |

|         |                                                                                 |
|---------|---------------------------------------------------------------------------------|
| • | Also in April 2013, we received OBD certification for all current applications. |

|         |                                                                                                                                                                                                                                                                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We continue to make progress on our ROIC efforts. We completed the divestitures of our interests in the Mahindra Joint Ventures in February 2013, the WCC business in March 2013, and substantially all of our interest in certain operations of the Monaco RV business in May 2013. We also entered into an agreement to sublease a portion of our Cherokee Facility. |

----

Table of Contents

----

Table of Contents

|                                                            |
|------------------------------------------------------------|
|                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                       | Three Months Ended April 30, |   |   |   | % Change |   | Six Months Ended April 30, |   |   |   | % Change |
| (in millions, except per share data and % change)          | 2013 |   | 2012 |   | Change |   |   | 2013 |   | 2012 |   | Change |   |
| Sales and revenues, net                                    | $ | 2,526 |  |   | $ | 3,261 |  |   | $ | (735 | ) |   | (23 | )% |   | $ | 5,163 |  |   | $ | 6,270 |  |   | $ | (1,107 | ) |   | (18 | )% |
| Costs of products sold                                     | 2,363 |  |   | 2,900 |  |   | (537 | ) |   | (19 | )% |   | 4,649 |  |   | 5,550 |  |   | (901 | ) |   | (16 | )% |
| Restructuring charges                                      | 6 |  |   | 19 |  |   | (13 | ) |   | (68 | )% |   | 8 |  |   | 19 |  |   | (11 | ) |   | (58 | )% |
| Impairment of intangible assets                            | — |  |   | 10 |  |   | (10 | ) |   | (100 | )% |   | — |  |   | 10 |  |   | (10 | ) |   | (100 | )% |
| Selling, general and administrative expenses               | 312 |  |   | 372 |  |   | (60 | ) |   | (16 | )% |   | 597 |  |   | 727 |  |   | (130 | ) |   | (18 | )% |
| Engineering and product development costs                  | 100 |  |   | 132 |  |   | (32 | ) |   | (24 | )% |   | 211 |  |   | 267 |  |   | (56 | ) |   | (21 | )% |
| Interest expense                                           | 90 |  |   | 62 |  |   | 28 |  |   | 45 |  % |   | 164 |  |   | 123 |  |   | 41 |  |   | 33 |  % |
| Other expense (income), net                                | (19 | ) |   | 13 |  |   | (32 | ) |   | N.M. |  |   | (57 | ) |   | 21 |  |   | (78 | ) |   | N.M. |  |
| Total costs and expenses                                   | 2,852 |  |   | 3,508 |  |   | (656 | ) |   | (19 | )% |   | 5,572 |  |   | 6,717 |  |   | (1,145 | ) |   | (17 | )% |
| Equity in income (loss) of non-consolidated affiliates     | 4 |  |   | (4 | ) |   | 8 |  |   | N.M. |  |   | 3 |  |   | (11 | ) |   | 14 |  |   | N.M. |  |
| Loss from continuing operations before income taxes        | (322 | ) |   | (251 | ) |   | (71 | ) |   | 28 |  % |   | (406 | ) |   | (458 | ) |   | 52 |  |   | (11 | )% |
| Income tax benefit (expense)                               | (22 | ) |   | 123 |  |   | (145 | ) |   | N.M. |  |   | (37 | ) |   | 199 |  |   | (236 | ) |   | N.M. |  |
| Loss from continuing operations                            | (344 | ) |   | (128 | ) |   | (216 | ) |   | 169 |  % |   | (443 | ) |   | (259 | ) |   | (184 | ) |   | 71 |  % |
| Less: Net income attributable to non-controlling interests | 9 |  |   | 10 |  |   | (1 | ) |   | (10 | )% |   | 24 |  |   | 23 |  |   | 1 |  |   | 4 |  % |
| Loss from continuing operations(A)                         | (353 | ) |   | (138 | ) |   | (215 | ) |   | 156 |  % |   | (467 | ) |   | (282 | ) |   | (185 | ) |   | 66 |  % |
| Loss from discontinued operations, net of tax              | (21 | ) |   | (34 | ) |   | 13 |  |   | (38 | )% |   | (30 | ) |   | (43 | ) |   | 13 |  |   | (30 | )% |
| Net loss(A)                                                | $ | (374 | ) |   | $ | (172 | ) |   | $ | (202 | ) |   | 117 |  % |   | $ | (497 | ) |   | $ | (325 | ) |   | $ | (172 | ) |   | 53 |  % |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted loss per share:(A)                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing operations                                      | $ | (4.39 | ) |   | $ | (2.01 | ) |   | $ | (2.38 | ) |   | 118 |  % |   | $ | (5.82 | ) |   | $ | (4.07 | ) |   | $ | (1.75 | ) |   | 43 |  % |
| Discontinued operations                                    | (0.26 | ) |   | (0.49 | ) |   | 0.23 |  |   | (47 | )% |   | (0.37 | ) |   | (0.62 | ) |   | 0.25 |  |   | (40 | )% |
|                                                       | $ | (4.65 | ) |   | $ | (2.50 | ) |   | $ | (2.15 | ) |   | 86 |  % |   | $ | (6.19 | ) |   | $ | (4.69 | ) |   | $ | (1.50 | ) |   | 32 |  % |
| Diluted weighted average shares outstanding                | 80.4 |  |   | 68.7 |  |   | 11.7 |  |   | 17 |  % |   | 80.3 |  |   | 69.3 |  |   | 11.0 |  |   | 16 |  % |

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

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

----

Table of Contents

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change) | Total |   | U.S. and Canada |   | ROW |
| Three Months Ended April 30,                  |   |   | % Change |   | Three Months Ended April 30, |   |   | % Change |   | Three Months Ended April 30, |   |   | % Change |
| 2013                                          |   | 2012 |   | Change |   |   | 2013 |   | 2012 |   | Change |   |   | 2013 |   | 2012 |   | Change |
| Truck                                         | $ | 1,519 |  |   | $ | 2,318 |  |   | $ | (799 | ) |   | (34 | )% |   | $ | 1,266 |  |   | $ | 1,962 |  |   | $ | (696 | ) |   | (35 | )% |   | $ | 253 |  |   | $ | 356 |  |   | $ | (103 | ) |   | (29 | )% |
| Engine                                        | 744 |  |   | 894 |  |   | (150 | ) |   | (17 | )% |   | 401 |  |   | 576 |  |   | (175 | ) |   | (30 | )% |   | 343 |  |   | 318 |  |   | 25 |  |   | 8 |  % |
| Parts                                         | 530 |  |   | 496 |  |   | 34 |  |   | 7 |  % |   | 473 |  |   | 437 |  |   | 36 |  |   | 8 |  % |   | 57 |  |   | 59 |  |   | (2 | ) |   | (3 | )% |
| Financial Services                            | 58 |  |   | 67 |  |   | (9 | ) |   | (13 | )% |   | 39 |  |   | 51 |  |   | (12 | ) |   | (24 | )% |   | 19 |  |   | 16 |  |   | 3 |  |   | 19 |  % |
| Corporate and Eliminations                    | (325 | ) |   | (514 | ) |   | 189 |  |   | (37 | )% |   | (320 | ) |   | (509 | ) |   | 189 |  |   | (37 | )% |   | (5 | ) |   | (5 | ) |   | — |  |   | — |  % |
| Total                                         | $ | 2,526 |  |   | $ | 3,261 |  |   | $ | (735 | ) |   | (23 | )% |   | $ | 1,859 |  |   | $ | 2,517 |  |   | $ | (658 | ) |   | (26 | )% |   | $ | 667 |  |   | $ | 744 |  |   | $ | (77 | ) |   | (10 | )% |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions, except % change) | Total |   | U.S. and Canada |   | ROW |
| Six Months Ended April 30,                    |   |   |   | % Change |   | Six Months Ended April 30, |   |   |   | % Change |   | Six Months Ended April 30, |   |   |   | % Change |
| 2013                                          |   | 2012 |   | Change |   |   | 2013 |   | 2012 |   | Change |   |   | 2013 |   | 2012 |   | Change |   |
| Truck                                         | $ | 3,197 |  |   | $ | 4,440 |  |   | $ | (1,243 | ) |   | (28 | )% |   | $ | 2,702 |  |   | $ | 3,762 |  |   | $ | (1,060 | ) |   | (28 | )% |   | $ | 495 |  |   | $ | 678 |  |   | $ | (183 | ) |   | (27 | )% |
| Engine                                        | 1,484 |  |   | 1,753 |  |   | (269 | ) |   | (15 | )% |   | 872 |  |   | 1,154 |  |   | (282 | ) |   | (24 | )% |   | 612 |  |   | 599 |  |   | 13 |  |   | 2 |  % |
| Parts                                         | 1,082 |  |   | 965 |  |   | 117 |  |   | 12 |  % |   | 973 |  |   | 860 |  |   | 113 |  |   | 13 |  % |   | 109 |  |   | 105 |  |   | 4 |  |   | 4 |  % |
| Financial Services                            | 117 |  |   | 135 |  |   | (18 | ) |   | (13 | )% |   | 80 |  |   | 104 |  |   | (24 | ) |   | (23 | )% |   | 37 |  |   | 31 |  |   | 6 |  |   | 19 |  % |
| Corporate and Eliminations                    | (717 | ) |   | (1,023 | ) |   | 306 |  |   | (30 | )% |   | (708 | ) |   | (1,012 | ) |   | 304 |  |   | (30 | )% |   | (9 | ) |   | (11 | ) |   | 2 |  |   | (18 | )% |
| Total                                         | $ | 5,163 |  |   | $ | 6,270 |  |   | $ | (1,107 | ) |   | (18 | )% |   | $ | 3,919 |  |   | $ | 4,868 |  |   | $ | (949 | ) |   | (19 | )% |   | $ | 1,244 |  |   | $ | 1,402 |  |   | $ | (158 | ) |   | (11 | )% |

----

Table of Contents

----

Table of Contents

----

Table of Contents

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  | Three Months Ended April 30, |   |   | %Change   |   | Six Months Ended April 30, |   |   |   | %Change   |
| (in millions, except % change)        | 2013 |   | 2012 |   | Change |   |   | 2013 |   | 2012 |   | Change |   |
| Truck segment sales - U.S. and Canada | $ | 1,266 |  |   | $ | 1,962 |  |   | $ | (696 | ) |   | (35 | )% |   | $ | 2,702 |  |   | $ | 3,762 |  |   | $ | (1,060 | ) |   | (28 | )% |
| Truck segment sales - ROW             | 253 |  |   | 356 |  |   | (103 | ) |   | (29 | )% |   | 495 |  |   | 678 |  |   | (183 | ) |   | (27 | )% |
| Total Truck segment sales, net        | $ | 1,519 |  |   | $ | 2,318 |  |   | $ | (799 | ) |   | (34 | )% |   | $ | 3,197 |  |   | $ | 4,440 |  |   | $ | (1,243 | ) |   | (28 | )% |
| Truck segment loss                    | $ | (109 | ) |   | $ | (45 | ) |   | $ | (64 | ) |   | 142 |  % |   | $ | (167 | ) |   | $ | (72 | ) |   | $ | (95 | ) |   | 132 |  % |

----

Table of Contents

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                   | Three Months Ended April 30, |   |   | %Change   |   | Six Months Ended April 30, |   |   |   | %Change   |
| (in millions, except % change)         | 2013 |   | 2012 |   | Change |   |   | 2013 |   | 2012 |   | Change |   |
| Engine segment sales - U.S. and Canada | $ | 401 |  |   | $ | 576 |  |   | $ | (175 | ) |   | (30 | )% |   | $ | 872 |  |   | $ | 1,154 |  |   | $ | (282 | ) |   | (24 | )% |
| Engine segment sales - ROW             | 343 |  |   | 318 |  |   | 25 |  |   | 8 |  % |   | 612 |  |   | 599 |  |   | 13 |  |   | 2 |  % |
| Total Engine segment sales, net        | $ | 744 |  |   | $ | 894 |  |   | $ | (150 | ) |   | (17 | )% |   | $ | 1,484 |  |   | $ | 1,753 |  |   | $ | (269 | ) |   | (15 | )% |
| Engine segment loss                    | $ | (138 | ) |   | $ | (108 | ) |   | $ | (30 | ) |   | 28 |  % |   | $ | (165 | ) |   | $ | (228 | ) |   | $ | 63 |  |   | (28 | )% |

----

Table of Contents

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  | Three Months Ended April 30, |   |   | %Change |   | Six Months Ended April 30, |   |   |   | %Change   |
| (in millions, except % change)        | 2013 |   | 2012 |   | Change |   |   | 2013 |   | 2012 |   | Change |   |
| Parts segment sales - U.S. and Canada | $ | 473 |  |   | $ | 437 |  |   | $ | 36 |  |   | 8 |  % |   | $ | 973 |  |   | $ | 860 |  |   | $ | 113 |  |   | 13 | % |
| Parts segment sales - ROW             | 57 |  |   | 59 |  |   | (2 | ) |   | (3 | )% |   | 109 |  |   | 105 |  |   | 4 |  |   | 4 | % |
| Total Parts segment sales, net        | $ | 530 |  |   | $ | 496 |  |   | $ | 34 |  |   | 7 |  % |   | $ | 1,082 |  |   | $ | 965 |  |   | $ | 117 |  |   | 12 | % |
| Parts segment profit                  | $ | 91 |  |   | $ | 41 |  |   | $ | 50 |  |   | 122 |  % |   | $ | 177 |  |   | $ | 91 |  |   | $ | 86 |  |   | 95 | % |

|                                                          |
|----------------------------------------------------------|
|                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                     | Three Months Ended April 30, |   |   | %Change   |   | Six Months Ended April 30, |   |   |   | %Change   |
| (in millions, except % change)                           | 2013 |   | 2012 |   | Change |   |   | 2013 |   | 2012 |   | Change |   |
| Financial Services segment revenues - U.S. and Canada(A) | $ | 39 |  |   | $ | 51 |  |   | $ | (12 | ) |   | (24 | )% |   | $ | 80 |  |   | $ | 104 |  |   | $ | (24 | ) |   | (23 | )% |
| Financial Services segment revenues - ROW                | 19 |  |   | 16 |  |   | 3 |  |   | 19 |  % |   | 37 |  |   | 31 |  |   | 6 |  |   | 19 |  % |
| Total Financial Services segment revenues, net           | $ | 58 |  |   | $ | 67 |  |   | $ | (9 | ) |   | (13 | )% |   | $ | 117 |  |   | $ | 135 |  |   | $ | (18 | ) |   | (13 | )% |
| Financial Services segment profit                        | $ | 19 |  |   | $ | 26 |  |   | $ | (7 | ) |   | (27 | )% |   | $ | 41 |  |   | $ | 53 |  |   | $ | (12 | ) |   | (23 | )% |

|     |                                                                   |
|-----|-------------------------------------------------------------------|
| (A) | The Financial Services segment does not have Canadian operations. |

----

Table of Contents

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     | Three Months Ended April 30, |   |   |   | % Change |   | Six Months Ended April 30, |   |   |   | % Change |
| (in units)                               | 2013 |   | 2012 |   | Change |   |   | 2013 |   | 2012 |   | Change |   |
| "Traditional" Markets (U.S. and Canada)  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| School buses(A)                          | 3,800 |  |   | 3,800 |  |   | — |  |   | — |  % |   | 8,800 |  |   | 7,900 |  |   | 900 |  |   | 11 |  % |
| Class 6 and 7 medium trucks              | 16,900 |  |   | 19,100 |  |   | (2,200 | ) |   | (12 | )% |   | 31,200 |  |   | 35,900 |  |   | (4,700 | ) |   | (13 | )% |
| Class 8 heavy trucks                     | 37,500 |  |   | 47,100 |  |   | (9,600 | ) |   | (20 | )% |   | 78,800 |  |   | 95,900 |  |   | (17,100 | ) |   | (18 | )% |
| Class 8 severe service trucks(B)         | 10,600 |  |   | 10,200 |  |   | 400 |  |   | 4 |  % |   | 21,500 |  |   | 20,600 |  |   | 900 |  |   | 4 |  % |
| Total "traditional" markets              | 68,800 |  |   | 80,200 |  |   | (11,400 | ) |   | (14 | )% |   | 140,300 |  |   | 160,300 |  |   | (20,000 | ) |   | (12 | )% |
| Combined class 8 trucks                  | 48,100 |  |   | 57,300 |  |   | (9,200 | ) |   | (16 | )% |   | 100,300 |  |   | 116,500 |  |   | (16,200 | ) |   | (14 | )% |
| Navistar "traditional" retail deliveries | 12,300 |  |   | 18,600 |  |   | (6,300 | ) |   | (34 | )% |   | 25,100 |  |   | 36,200 |  |   | (11,100 | ) |   | (31 | )% |

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

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

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                             | Three Months Ended |
|                             | April 30, 2013 |   | January 31, 2013 |   | October 31, 2012 |   | July 31, 2012 |   | April 30, 2012 |
| Class 6 and 7 medium trucks      | 26 | % |   | 25 | % |   | 34 | % |   | 36 | % |   | 36 | % |
|                             |   |   |   |   |   |   |   |   |   |
| Class 8 heavy trucks             | 12 | % |   | 11 | % |   | 13 | % |   | 15 | % |   | 15 | % |
| Class 8 severe service trucks(A) | 22 | % |   | 26 | % |   | 30 | % |   | 30 | % |   | 30 | % |
| Combined class 8 trucks          | 15 | % |   | 14 | % |   | 17 | % |   | 18 | % |   | 18 | % |

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

----

Table of Contents

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                    | Three Months Ended April 30, |   |   |   | % Change |   | Six Months Ended April 30, |   |   |   | % Change |
| (in units)                              | 2013 |   | 2012 |   | Change |   |   | 2013 |   | 2012 |   | Change |   |
| "Traditional" Markets (U.S. and Canada) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| School buses(A)                         | 3,100 |  |   | 3,200 |  |   | (100 | ) |   | (3 | )% |   | 4,600 |  |   | 5,300 |  |   | (700 | ) |   | (13 | )% |
| Class 6 and 7 medium trucks             | 3,800 |  |   | 6,300 |  |   | (2,500 | ) |   | (40 | )% |   | 7,100 |  |   | 11,700 |  |   | (4,600 | ) |   | (39 | )% |
| Class 8 heavy trucks                    | 4,400 |  |   | 5,600 |  |   | (1,200 | ) |   | (21 | )% |   | 10,200 |  |   | 13,700 |  |   | (3,500 | ) |   | (26 | )% |
| Class 8 severe service trucks(B)        | 2,500 |  |   | 3,000 |  |   | (500 | ) |   | (17 | )% |   | 4,400 |  |   | 7,000 |  |   | (2,600 | ) |   | (37 | )% |
| Total "traditional" markets             | 13,800 |  |   | 18,100 |  |   | (4,300 | ) |   | (24 | )% |   | 26,300 |  |   | 37,700 |  |   | (11,400 | ) |   | (30 | )% |
| Combined class 8 trucks                 | 6,900 |  |   | 8,600 |  |   | (1,700 | ) |   | (20 | )% |   | 14,600 |  |   | 20,700 |  |   | (6,100 | ) |   | (29 | )% |

|     |                                                                      |
|-----|----------------------------------------------------------------------|
| (A) | U.S. and Canada School buses include buses classified as B, C and D. |

|     |                                                                                                                  |
|-----|------------------------------------------------------------------------------------------------------------------|
| (B) | Truck segment net orders include CAT-branded units sold to Caterpillar under our North America supply agreement. |

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |  |  |  |
|                                    | As of April 30, |   |   |   | % Change |
| (in units)                              | 2013 |   | 2012 |   | Change |   |
| "Traditional" Markets (U.S. and Canada) |   |   |   |   |   |   |   |
| School buses(A)                         | 2,300 |  |   | 2,100 |  |   | 200 |  |   | 10 |  % |
| Class 6 and 7 medium trucks             | 2,300 |  |   | 6,500 |  |   | (4,200 | ) |   | (65 | )% |
| Class 8 heavy trucks                    | 6,600 |  |   | 8,100 |  |   | (1,500 | ) |   | (19 | )% |
| Class 8 severe service trucks(B)        | 2,600 |  |   | 3,600 |  |   | (1,000 | ) |   | (28 | )% |
| Total "traditional" markets             | 13,800 |  |   | 20,300 |  |   | (6,500 | ) |   | (32 | )% |
| Combined class 8 trucks                 | 9,200 |  |   | 11,700 |  |   | (2,500 | ) |   | (21 | )% |

|     |                                                                      |
|-----|----------------------------------------------------------------------|
| (A) | U.S. and Canada School buses include buses classified as B, C and D. |

|     |                                                                                                                                                                                                                                      |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B) | Truck segment backlog includes CAT-branded units sold to Caterpillar under our North America supply agreement, and the backlog as of January 31, 2012 was adjusted by 200 units to reflect the inclusion of these CAT-branded units. |

----

Table of Contents

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                    | Three Months Ended April 30, |   |   |   | % Change |   | Six Months Ended April 30, |   |   |   | % Change |
| (in units)                              | 2013 |   | 2012 |   | Change |   |   | 2013 |   | 2012 |   | Change |   |
| "Traditional" Markets (U.S. and Canada) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| School buses(A)                         | 2,500 |  |   | 2,600 |  |   | (100 | ) |   | (4 | )% |   | 4,500 |  |   | 4,300 |  |   | 200 |  |   | 5 |  % |
| Class 6 and 7 medium trucks        | 4,500 |  |   | 7,100 |  |   | (2,600 | ) |   | (37 | )% |   | 8,600 |  |   | 11,400 |  |   | (2,800 | ) |   | (25 | )% |
| Class 8 heavy trucks               | 4,500 |  |   | 7,200 |  |   | (2,700 | ) |   | (38 | )% |   | 9,100 |  |   | 15,200 |  |   | (6,100 | ) |   | (40 | )% |
| Class 8 severe service trucks(B)   | 2,100 |  |   | 3,600 |  |   | (1,500 | ) |   | (42 | )% |   | 4,500 |  |   | 6,900 |  |   | (2,400 | ) |   | (35 | )% |
| Total "traditional" markets             | 13,600 |  |   | 20,500 |  |   | (6,900 | ) |   | (34 | )% |   | 26,700 |  |   | 37,800 |  |   | (11,100 | ) |   | (29 | )% |
| Non "traditional" military(C)           | 300 |  |   | 400 |  |   | (100 | ) |   | (25 | )% |   | 600 |  |   | 600 |  |   | — |  |   | — |  % |
| "Expansion" markets(D)                  | 5,900 |  |   | 7,300 |  |   | (1,400 | ) |   | (19 | )% |   | 12,500 |  |   | 14,500 |  |   | (2,000 | ) |   | (14 | )% |
| Total worldwide units(E)                | 19,800 |  |   | 28,200 |  |   | (8,400 | ) |   | (30 | )% |   | 39,800 |  |   | 52,900 |  |   | (13,100 | ) |   | (25 | )% |
| Combined class 8 trucks                 | 6,600 |  |   | 10,800 |  |   | (4,200 | ) |   | (39 | )% |   | 13,600 |  |   | 22,100 |  |   | (8,500 | ) |   | (38 | )% |
| Combined military(F)                    | 400 |  |   | 400 |  |   | — |  |   | — |  % |   | 700 |  |   | 1,400 |  |   | (700 | ) |   | (50 | )% |

|     |                                                                      |
|-----|----------------------------------------------------------------------|
| (A) | U.S. and Canada School buses include buses classified as B, C and D. |

|     |                                                                                                                                                                                                                                     |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B) | Chargeouts include CAT-branded units sold to Caterpillar under our North America supply agreement, and the chargeouts for the first quarter of 2012 were adjusted by 200 units to reflect the inclusion of these CAT-branded units. |

|     |                                                                                                                                                |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------|
| (C) | Excludes U.S. and Canada militarized commercial units included in "traditional" markets Class 8 severe service trucks and "expansion" markets. |

|     |                                                                                                                                                                                                                                                                                 |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (D) | Includes chargeouts related to Blue Diamond Truck ("BDT") of 1,600 units and 1,700 units during the three months ended April 30, 2013 and 2012, respectively and 3,900 units and 3,200 units during the six months ended April 30, 2013 and 2012, respectively. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (E) | Excludes chargeouts related to: (i) RV towables of 1,000 units and 800 units during the three months ended April 30, 2013 and 2012, respectively, and 1,700 units and 1,400 units during the six months ended April 30, 2013 and 2012, respectively, and (ii) units, previously included in "Expansion" markets that were restated as a result of Monaco and WCC being classified as discontinued operations, of 200 units and 200 units during the three months ended April 30, 2013 and 2012 and 400 units and 400 units during the six months ended April 30, 2013 and 2012, respectively. |

|     |                                                                                                                                                                  |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (F) | Includes military units included within "traditional" markets Class 8 severe service, "expansion" markets, and all units reported as non "traditional" military. |

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                    | Three Months Ended April 30, |   |   |   | % Change |   | Six Months Ended April 30, |   |   |   | % Change |
| (in units)              | 2013 |   | 2012 |   | Change |   |   | 2013 |   | 2012 |   | Change |   |
| OEM sales-South America | 30,800 |  |   | 25,300 |  |   | 5,500 |  |   | 22 |  % |   | 56,400 |  |   | 49,400 |  |   | 7,000 |  |   | 14 |  % |
| Intercompany sales      | 15,100 |  |   | 23,400 |  |   | (8,300 | ) |   | (35 | )% |   | 31,600 |  |   | 45,000 |  |   | (13,400 | ) |   | (30 | )% |
| Other OEM sales         | 2,300 |  |   | 2,000 |  |   | 300 |  |   | 15 |  % |   | 4,200 |  |   | 4,200 |  |   | — |  |   | — |  % |
| Total sales             | 48,200 |  |   | 50,700 |  |   | (2,500 | ) |   | (5 | )% |   | 92,200 |  |   | 98,600 |  |   | (6,400 | ) |   | (6 | )% |

----

Table of Contents

|                                                                                    |
|------------------------------------------------------------------------------------|
|                                                                                    |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                      | April 30, 2013 |   | October 31, 2012 |   | April 30, 2012 |
| Consolidated cash and cash equivalents                                             | $ | 505 |  |   | $ | 1,087 |  |   | $ | 400 |  |
| Consolidated marketable securities                                                 | 733 |  |   | 466 |  |   | 337 |  |
| Consolidated cash, cash equivalents and marketable securities at end of the period | $ | 1,238 |  |   | $ | 1,553 |  |   | $ | 737 |  |

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |
|                                                         | Six Months Ended April 30, 2013 |
| (in millions)                                                | ManufacturingOperations |   | Financial Services Operations and Adjustments |   | Condensed Consolidated Statement of Cash Flows |
| Net cash provided by (used in) operating activities          | $ | (237 | ) |   | $ | 194 |  |   | $ | (43 | ) |
| Net cash used in investing activities                        | (556 | ) |   | (20 | ) |   | (576 | ) |
| Net cash provided by (used in) financing activities          | 205 |  |   | (163 | ) |   | 42 |  |
| Effect of exchange rate changes on cash and cash equivalents | (6 | ) |   | 1 |  |   | (5 | ) |
| Increase (decrease) in cash and cash equivalents             | (594 | ) |   | 12 |  |   | (582 | ) |
| Cash and cash equivalents at beginning of the period         | 1,059 |  |   | 28 |  |   | 1,087 |  |
| Cash and cash equivalents at end of the period               | $ | 465 |  |   | $ | 40 |  |   | $ | 505 |  |

----

Table of Contents

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |
|                                                         | Six Months Ended April 30, 2012 |
| (in millions)                                                | ManufacturingOperations |   | Financial Services Operations and Adjustments |   | Condensed Consolidated Statement of Cash Flows |
| Net cash provided by (used in) operating activities          | $ | (214 | ) |   | $ | 263 |  |   | $ | 49 |  |
| Net cash provided by investing activities                    | 181 |  |   | 144 |  |   | 325 |  |
| Net cash used in financing activities                        | (87 | ) |   | (423 | ) |   | (510 | ) |
| Effect of exchange rate changes on cash and cash equivalents | (4 | ) |   | 1 |  |   | (3 | ) |
| Decrease in cash and cash equivalents                        | (124 | ) |   | (15 | ) |   | (139 | ) |
| Cash and cash equivalents at beginning of the period         | 488 |  |   | 51 |  |   | 539 |  |
| Cash and cash equivalents at end of the period               | $ | 364 |  |   | $ | 36 |  |   | $ | 400 |  |

----

Table of Contents

----

Table of Contents

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

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

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

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

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

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

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

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

----

Table of Contents

----

Table of Contents

----

Table of Contents

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

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

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

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

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

|              |          |
|--------------|----------|
| Item 6. | Exhibits |

|           |
|-----------|
|           |  |  |  |  |
| Exhibit:  |   |    |   | Page |
|      |   |   |   |   |
| (3)       |   | Articles of Incorporation and By-Laws  |   | E-1 |
| (10)      |   | Material Contracts |   | E-2 |
| (31.1)    |   | CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |   | E-13 |
| (31.2)    |   | CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |   | E-14 |
| (32.1)    |   | CEO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |   | E-15 |
| (32.2)    |   | CFO Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |   | E-16 |
| (99.1)    |   | Additional Financial Information (Unaudited) |   | E-17 |
| (101.INS) |   | XBRL Instance Document |   | N/A |
| (101.SCH) |   | XBRL Taxonomy Extension Schema Document |   | N/A |
| (101.CAL) |   | XBRL Taxonomy Extension Calculation Linkbase Document |   | N/A |
| (101.LAB) |   | XBRL Taxonomy Extension Label Linkbase Document |   | N/A |
| (101.PRE) |   | XBRL Taxonomy Extension Presentation Linkbase Document |   | N/A |
| (101.DEF) |   | XBRL Taxonomy Extension Definition Linkbase Document |   | N/A |

----

Table of Contents

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