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

|        |
|--------|
|        |  |
| 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) |    |   |   |   |

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

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|                                    |
|------------------------------------|
|                                    |  |  |  |
|                               |   |   | Page |
| PART I—Financial Information |   |   |
| Item 1.                       | Financial Statements (Unaudited) |   | 5 |
|                               | Consolidated Statements of Operations for the three months ended January 31, 2015 and 2014  |   | 5 |
|                               | Consolidated Statements of Comprehensive Loss for the three months ended January 31, 2015 and 2014 |   | 6 |
|                               | Consolidated Balance Sheets as of January 31, 2015 and October 31, 2014 |   | 7 |
|                               | Condensed Consolidated Statements of Cash Flows for the three months ended January 31, 2015 and 2014 |   | 8 |
|                               | Consolidated Statements of Stockholders' Deficit for the three months ended January 31, 2015 and 2014 |   | 9 |
|                               | Notes to Condensed Consolidated Financial Statements |   | 10 |
| Item 2.                            | Management's Discussion and Analysis of Financial Condition and Results of Operations |   | 37 |
| Item 3.                            | Quantitative and Qualitative Disclosures about Market Risk |   | 49 |
| Item 4.                            | Controls and Procedures |   | 49 |
|                               |   |   |   |
| PART II                       |   |   |
| Item 1.                            | Legal Proceedings |   | 50 |
| Item 1A.                           | Risk Factors |   | 51 |
| Item 2.                            | Unregistered Sales of Equity Securities and Use of Proceeds |   | 51 |
| Item 3.                            | Defaults upon Senior Securities |   | 51 |
| Item 4.                            | Mine Safety Disclosures |   | 51 |
| Item 5.                            | Other Information |   | 52 |
| Item 6.                            | Exhibits |   | 52 |
|                               | Signatures |   | 53 |
|                               |   |   |   |

----

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

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

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

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

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

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

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

|         |                                                                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | our ability to transition from the “Drive-to-Deliver” turnaround plan and achieve the expectations of our new strategy, including establishing a leading market position based on uptime advantage and developing effective leaders at every level; |

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

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

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

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

|         |                                                                                                                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 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 enterprise-wide reduction-in-force, and other actions to reduce discretionary spending; |

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

|         |                                                                                   |
|---------|-----------------------------------------------------------------------------------|
| • | liabilities resulting from environmental, health and safety laws and regulations; |

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

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

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

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

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

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

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

----

----

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

|                                                                                 |
|---------------------------------------------------------------------------------|
|                                                                                 |  |  |  |  |  |  |  |
|                                                                            | Three Months Ended January 31, |
| (in millions, except per share data)                                            | 2015 |   | 2014 |
| Sales and revenues                                                              |   |   |   |
| Sales of manufactured products, net                                             | $ | 2,385 |  |   | $ | 2,169 |  |
| Finance revenues                                                                | 36 |  |   | 39 |  |
| Sales and revenues, net                                                         | 2,421 |  |   | 2,208 |  |
| Costs and expenses                                                              |   |   |   |
| Costs of products sold                                                          | 2,045 |  |   | 2,014 |  |
| Restructuring charges                                                           | 3 |  |   | 3 |  |
| Asset impairment charges                                                        | 7 |  |   | 18 |  |
| Selling, general and administrative expenses                                    | 241 |  |   | 239 |  |
| Engineering and product development costs                                       | 79 |  |   | 90 |  |
| Interest expense                                                                | 77 |  |   | 82 |  |
| Other (income) expense, net                                                     | (3 | ) |   | 14 |  |
| Total costs and expenses                                                        | 2,449 |  |   | 2,460 |  |
| Equity in income of non-consolidated affiliates                                 | 2 |  |   | — |  |
| Loss from continuing operations before income taxes                             | (26 | ) |   | (252 | ) |
| Income tax (expense) benefit                                                    | (7 | ) |   | 12 |  |
| Loss from continuing operations                                                 | (33 | ) |   | (240 | ) |
| Income from discontinued operations, net of tax                                 | — |  |   | 1 |  |
| Net loss                                                                        | (33 | ) |   | (239 | ) |
| Less: Net income attributable to non-controlling interests                      | 9 |  |   | 9 |  |
| Net loss attributable to Navistar International Corporation                     | $ | (42 | ) |   | $ | (248 | ) |
|                                                                            |   |   |   |
| Amounts attributable to Navistar International Corporation common shareholders: |   |   |   |
| Loss from continuing operations, net of tax                                     | $ | (42 | ) |   | $ | (249 | ) |
| Income from discontinued operations, net of tax                                 | — |  |   | 1 |  |
| Net loss                                                                        | $ | (42 | ) |   | $ | (248 | ) |
|                                                                            |   |   |   |
| Earnings (loss) per share:                                                      |   |   |   |
| Basic:                                                                          |   |   |   |
| Continuing operations                                                           | $ | (0.52 | ) |   | $ | (3.07 | ) |
| Discontinued operations                                                         | — |  |   | 0.02 |  |
|                                                                            | $ | (0.52 | ) |   | $ | (3.05 | ) |
|                                                                            |   |   |   |
| Diluted:                                                                        |   |   |   |
| Continuing operations                                                           | $ | (0.52 | ) |   | $ | (3.07 | ) |
| Discontinued operations                                                         | — |  |   | 0.02 |  |
|                                                                            | $ | (0.52 | ) |   | $ | (3.05 | ) |
|                                                                            |   |   |   |
| Weighted average shares outstanding:                                            |   |   |   |
| Basic                                                                           | 81.5 |  |   | 81.2 |  |
| Diluted                                                                         | 81.5 |  |   | 81.2 |  |

----

|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |  |  |  |  |  |  |  |
| (in millions)                                                               | Three Months Ended January 31, |
| 2015                                                                        |   | 2014 |
| Net loss attributable to Navistar International Corporation                 | $ | (42 | ) |   | $ | (248 | ) |
| Other comprehensive income (loss):                                          |  |  |   |  |  |
| Foreign currency translation adjustment                                     | (59 | ) |   | (62 | ) |
| Defined benefit plans (net of tax of $(1) and $0)                           | 32 |  |   | 25 |  |
| Total other comprehensive loss                                              | (27 | ) |   | (37 | ) |
| Total comprehensive loss attributable to Navistar International Corporation | $ | (69 | ) |   | $ | (285 | ) |

----

|                                                                                                              |
|--------------------------------------------------------------------------------------------------------------|
|                                                                                                              |  |  |  |  |  |  |  |
|                                                                                                         | January 31, 2015 |   | October 31, 2014 |
| (in millions, except per share data)                                                                         |   |   |   |
| ASSETS                                                                                                       | (Unaudited) |   |   |
| Current assets                                                                                               |   |   |   |
| Cash and cash equivalents                                                                                    | $ | 620 |  |   | $ | 497 |  |
| Restricted cash and cash equivalents                                                                         | — |  |   | 40 |  |
| Marketable securities                                                                                        | 175 |  |   | 605 |  |
| Trade and other receivables, net                                                                             | 490 |  |   | 553 |  |
| Finance receivables, net                                                                                     | 1,660 |  |   | 1,758 |  |
| Inventories                                                                                                  | 1,352 |  |   | 1,319 |  |
| Deferred taxes, net                                                                                          | 38 |  |   | 55 |  |
| Other current assets                                                                                         | 188 |  |   | 186 |  |
| Total current assets                                                                                         | 4,523 |  |   | 5,013 |  |
| Restricted cash                                                                                              | 115 |  |   | 131 |  |
| Trade and other receivables, net                                                                             | 22 |  |   | 25 |  |
| Finance receivables, net                                                                                     | 251 |  |   | 280 |  |
| Investments in non-consolidated affiliates                                                                   | 67 |  |   | 73 |  |
| Property and equipment (net of accumulated depreciation and amortization of $2,576 and $2,535, respectively) | 1,474 |  |   | 1,562 |  |
| Goodwill                                                                                                     | 38 |  |   | 38 |  |
| Intangible assets (net of accumulated amortization of $103 and $109, respectively)                           | 83 |  |   | 90 |  |
| Deferred taxes, net                                                                                          | 135 |  |   | 145 |  |
| Other noncurrent assets                                                                                      | 77 |  |   | 86 |  |
| Total assets                                                                                                 | $ | 6,785 |  |   | $ | 7,443 |  |
| LIABILITIES and STOCKHOLDERS’ DEFICIT                                                                  |   |   |   |
| Liabilities                                                                                                  |   |   |   |
| Current liabilities                                                                                          |   |   |   |
| Notes payable and current maturities of long-term debt                                                       | $ | 1,041 |  |   | $ | 1,295 |  |
| Accounts payable                                                                                             | 1,330 |  |   | 1,564 |  |
| Other current liabilities                                                                                    | 1,308 |  |   | 1,372 |  |
| Total current liabilities                                                                                    | 3,679 |  |   | 4,231 |  |
| Long-term debt                                                                                               | 4,041 |  |   | 3,929 |  |
| Postretirement benefits liabilities                                                                          | 2,821 |  |   | 2,862 |  |
| Deferred taxes, net                                                                                          | 14 |  |   | 14 |  |
| Other noncurrent liabilities                                                                                 | 918 |  |   | 1,025 |  |
| Total liabilities                                                                                            | 11,473 |  |   | 12,061 |  |
| Redeemable equity securities                                                                                 | 1 |  |   | 2 |  |
| Stockholders’ deficit                                                                                  |   |   |   |
| Series D convertible junior preference stock                                                            | 3 |  |   | 3 |  |
| Common stock (86.8, shares issued; and $0.10 par value per share and 220 shares authorized, at both dates)   | 9 |  |   | 9 |  |
| Additional paid-in capital                                                                                   | 2,500 |  |   | 2,500 |  |
| Accumulated deficit                                                                                          | (4,724 | ) |   | (4,682 | ) |
| Accumulated other comprehensive loss                                                                         | (2,290 | ) |   | (2,263 | ) |
| Common stock held in treasury, at cost (5.3 and 5.4 shares, respectively)                                    | (218 | ) |   | (221 | ) |
| Total stockholders’ deficit attributable to Navistar International Corporation                         | (4,720 | ) |   | (4,654 | ) |
| Stockholders’ equity attributable to non-controlling interests                                         | 31 |  |   | 34 |  |
| Total stockholders’ deficit                                                                            | (4,689 | ) |   | (4,620 | ) |
| Total liabilities and stockholders’ deficit                                                            | $ | 6,785 |  |   | $ | 7,443 |  |

----

|                                                                                          |
|------------------------------------------------------------------------------------------|
|                                                                                          |  |  |  |  |  |  |  |
|                                                                                     | Three Months Ended January 31, |
| (in millions)                                                                            | 2015 |   | 2014 |
| Cash flows from operating activities                                                     |   |   |   |
| Net loss                                                                                 | $ | (33 | ) |   | $ | (239 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities:              |   |   |   |
| Depreciation and amortization                                                            | 58 |  |   | 55 |  |
| Depreciation of equipment leased to others                                               | 21 |  |   | 31 |  |
| Deferred taxes, including change in valuation allowance                                  | (12 | ) |   | (18 | ) |
| Asset impairment charges                                                                 | 7 |  |   | 18 |  |
| Amortization of debt issuance costs and discount                                         | 9 |  |   | 14 |  |
| Stock-based compensation                                                                 | 2 |  |   | 5 |  |
| Provision for doubtful accounts, net of recoveries                                       | (3 | ) |   | 2 |  |
| Equity in income of non-consolidated affiliates, net of dividends                        | 5 |  |   | 2 |  |
| Other non-cash operating activities                                                      | (11 | ) |   | (9 | ) |
| Changes in other assets and liabilities, exclusive of the effects of businesses disposed | (254 | ) |   | 46 |  |
| Net cash used in operating activities                                                    | (211 | ) |   | (93 | ) |
| Cash flows from investing activities                                                     |   |   |  |  |
| Purchases of marketable securities                                                       | (140 | ) |   | (378 | ) |
| Sales of marketable securities                                                           | 507 |  |   | 521 |  |
| Maturities of marketable securities                                                      | 63 |  |   | 57 |  |
| Net change in restricted cash and cash equivalents                                       | 53 |  |   | (24 | ) |
| Capital expenditures                                                                     | (17 | ) |   | (21 | ) |
| Purchases of equipment leased to others                                                  | (10 | ) |   | (49 | ) |
| Proceeds from sales of property and equipment                                            | 1 |  |   | 10 |  |
| Investments in non-consolidated affiliates                                               | — |  |   | (2 | ) |
| Net cash provided by investing activities                                                | 457 |  |   | 114 |  |
| Cash flows from financing activities                                                     |   |   |   |
| Proceeds from issuance of securitized debt                                               | 250 |  |   | 82 |  |
| Principal payments on securitized debt                                                   | (267 | ) |   | (94 | ) |
| Proceeds from issuance of non-securitized debt                                           | 35 |  |   | 47 |  |
| Principal payments on non-securitized debt                                               | (78 | ) |   | (53 | ) |
| Net decrease in notes and debt outstanding under revolving credit facilities             | (43 | ) |   | (197 | ) |
| Principal payments under financing arrangements and capital lease obligations            | — |  |   | (4 | ) |
| Debt issuance costs                                                                      | (4 | ) |   | (3 | ) |
| Proceeds from financed lease obligations                                                 | 10 |  |   | 20 |  |
| Proceeds from exercise of stock options                                                  | — |  |   | 16 |  |
| Dividends paid by subsidiaries to non-controlling interest                               | (12 | ) |   | (20 | ) |
| Net cash used in financing activities                                                    | (109 | ) |   | (206 | ) |
| Effect of exchange rate changes on cash and cash equivalents                             | (14 | ) |   | (21 | ) |
| Increase (decrease) in cash and cash equivalents                                         | 123 |  |   | (206 | ) |
| Cash and cash equivalents at beginning of the period                                     | 497 |  |   | 755 |  |
| Cash and cash equivalents at end of the period                                           | $ | 620 |  |   | $ | 549 |  |

----

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                                           | Series D ConvertibleJuniorPreference Stock |   | CommonStock |   | Additional Paid-inCapital |   | AccumulatedDeficit |   | AccumulatedOtherComprehensiveIncome (Loss) |   | CommonStockHeld inTreasury, at cost |   | Stockholders'Equity Attributableto Non-controllingInterests |   | Total |
| Balance as of October 31, 2014                                                          | $ | 3 |  |   | $ | 9 |  |   | $ | 2,500 |  |   | $ | (4,682 | ) |   | $ | (2,263 | ) |   | $ | (221 | ) |   | $ | 34 |  |   | $ | (4,620 | ) |
| Net income (loss)                                                                       | — |  |   | — |  |   | — |  |   | (42 | ) |   | — |  |   | — |  |   | 9 |  |   | (33 | ) |
| Total other comprehensive loss                                                          | — |  |   | — |  |   | — |  |   | — |  |   | (27 | ) |   | — |  |   | — |  |   | (27 | ) |
| Transfer from redeemable equity securities upon exercise or expiration of stock options | — |  |   | — |  |   | 1 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 1 |  |
| Stock-based compensation                                                                | — |  |   | — |  |   | 3 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 3 |  |
| Stock ownership programs                                                                | — |  |   | — |  |   | (4 | ) |   | — |  |   | — |  |   | 3 |  |   | — |  |   | (1 | ) |
| Cash dividends paid to non-controlling interest                                         | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (12 | ) |   | (12 | ) |
| Balance as of January 31, 2015                                                          | $ | 3 |  |   | $ | 9 |  |   | $ | 2,500 |  |   | $ | (4,724 | ) |   | $ | (2,290 | ) |   | $ | (218 | ) |   | $ | 31 |  |   | $ | (4,689 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as of October 31, 2013                                                          | 3 |  |   | 9 |  |   | 2,477 |  |   | (4,063 | ) |   | (1,824 | ) |   | (251 | ) |   | 44 |  |   | (3,605 | ) |
| Net income (loss)                                                                       | — |  |   | — |  |   | — |  |   | (248 | ) |   | — |  |   | — |  |   | 9 |  |   | (239 | ) |
| Total other comprehensive loss                                                          | — |  |   | — |  |   | — |  |   | — |  |   | (37 | ) |   | — |  |   | — |  |   | (37 | ) |
| Transfer from redeemable equity securities upon exercise or expiration of stock options | — |  |   | — |  |   | 2 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 2 |  |
| Stock-based compensation                                                                | — |  |   | — |  |   | 4 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 4 |  |
| Stock ownership programs                                                                | — |  |   | — |  |   | (5 | ) |   | — |  |   | — |  |   | 21 |  |   | — |  |   | 16 |  |
| Cash dividends paid to non-controlling interest                                         | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (20 | ) |   | (20 | ) |
| Balance as of January 31, 2014                                                          | $ | 3 |  |   | $ | 9 |  |   | $ | 2,478 |  |   | $ | (4,311 | ) |   | $ | (1,861 | ) |   | $ | (230 | ) |   | $ | 33 |  |   | $ | (3,879 | ) |

----

----

|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |  |  |  |  |  |  |
|                                                              | Three Months Ended January 31, |
| (in millions)                                                     | 2015 |   | 2014 |
| Balance at beginning of period                                    | $ | 1,197 |  |   | $ | 1,349 |  |
| Costs accrued and revenues deferred                               | 50 |  |   | 71 |  |
| Currency translation adjustment                                   | (2 | ) |   | (2 | ) |
| Adjustments to pre-existing warranties(A)                         | (57 | ) |   | 52 |  |
| Payments and revenues recognized                                  | (105 | ) |   | (132 | ) |
| Balance at end of period                                          | 1,083 |  |   | 1,338 |  |
| Less: Current portion                                             | 497 |  |   | 602 |  |
| Noncurrent accrued product warranty and deferred warranty revenue | $ | 586 |  |   | $ | 736 |  |

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

----

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                | Balance at October 31, 2014 |   | Additions |   | Payments |   | Adjustments |   | Balance at January 31, 2015 |
| Employee termination charges | $ | 8 |  |   | $ | 3 |  |   | $ | (3 | ) |   | $ | (1 | ) |   | $ | 7 |  |
| Lease vacancy                | 11 |  |   | — |  |   | (2 | ) |   | — |  |   | 9 |  |
| Other                        | 1 |  |   | — |  |   | — |  |   | — |  |   | 1 |  |
| Restructuring liability      | $ | 20 |  |   | $ | 3 |  |   | $ | (5 | ) |   | $ | (1 | ) |   | $ | 17 |  |

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

----

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |
|                                                            | Three Months Ended January 31, |
| (in millions)                                                   | 2015 |   | 2014 |
| Indefinite-lived intangible asset impairment charge             | $ | — |  |   | $ | 16 |  |
| Other asset impairment charges related to continuing operations | 7 |  |   | 2 |  |
| Total asset impairment charges                                  | $ | 7 |  |   | $ | 18 |  |

----

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |
| (in millions)                         | January 31, 2015 |   | October 31, 2014 |
| Retail portfolio                      | $ | 648 |  |   | $ | 726 |  |
| Wholesale portfolio                   | 1,289 |  |   | 1,339 |  |
| Total finance receivables             | 1,937 |  |   | 2,065 |  |
| Less: Allowance for doubtful accounts | 26 |  |   | 27 |  |
| Total finance receivables, net        | 1,911 |  |   | 2,038 |  |
| Less: Current portion, net(A)         | 1,660 |  |   | 1,758 |  |
| Noncurrent portion, net               | $ | 251 |  |   | $ | 280 |  |

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

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |
|                                    | Three Months Ended January 31, |
| (in millions)                           | 2015 |   | 2014 |
| Retail notes and finance leases revenue | $ | 13 |  |   | $ | 17 |  |
| Wholesale notes interest                | 24 |  |   | 18 |  |
| Operating lease revenue                 | 15 |  |   | 14 |  |
| Retail and wholesale accounts interest  | 8 |  |   | 6 |  |
| Gross finance revenues                  | 60 |  |   | 55 |  |
| Less: Intercompany revenues             | (24 | ) |   | (16 | ) |
| Finance revenues                        | $ | 36 |  |   | $ | 39 |  |

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                    | Three Months Ended January 31, 2015 |
| (in millions)                                           | RetailPortfolio |   | WholesalePortfolio |   | Trade andOtherReceivables |   | Total |
| Allowance for doubtful accounts, at beginning of period | $ | 24 |  |   | $ | 3 |  |   | $ | 38 |  |   | $ | 65 |  |
| Provision for doubtful accounts, net of recoveries      | 2 |  |   | — |  |   | — |  |   | 2 |  |
| Charge-off of accounts(A)                               | (1 | ) |   | — |  |   | (3 | ) |   | (4 | ) |
| Other(B)                                                | (2 | ) |   | — |  |   | (3 | ) |   | (5 | ) |
| Allowance for doubtful accounts, at end of period       | $ | 23 |  |   | $ | 3 |  |   | $ | 32 |  |   | $ | 58 |  |

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                    | Three Months Ended January 31, 2014 |
| (in millions)                                           | RetailPortfolio |   | WholesalePortfolio |   | Trade andOtherReceivables |   | Total |
| Allowance for doubtful accounts, at beginning of period | $ | 21 |  |   | $ | 2 |  |   | $ | 37 |  |   | $ | 60 |  |
| Provision for doubtful accounts, net of recoveries      | 4 |  |   | — |  |   | 2 |  |   | 6 |  |
| Charge-off of accounts(A)                               | (2 | ) |   | — |  |   | — |  |   | (2 | ) |
| Other(B)                                                | (1 | ) |   | — |  |   | (3 | ) |   | (4 | ) |
| Allowance for doubtful accounts, at end of period       | $ | 22 |  |   | $ | 2 |  |   | $ | 36 |  |   | $ | 60 |  |

|     |                                                                                                                                                                                                                                                                                                                                  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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 both less than $1 million, in three months ended January 31, 2015 and 2014, respectively. |

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                        | January 31, 2015 |   | October 31, 2014 |
| (in millions)                                               | RetailPortfolio |   | WholesalePortfolio |   | Total |   | RetailPortfolio |   | WholesalePortfolio |   | Total |
| Impaired finance receivables with specific loss reserves    | $ | 17 |  |   | $ | — |  |   | $ | 17 |  |   | $ | 20 |  |   | $ | — |  |   | $ | 20 |  |
| Impaired finance receivables without specific loss reserves | 3 |  |   | — |  |   | 3 |  |   | 1 |  |   | — |  |   | 1 |  |
| Specific loss reserves on impaired finance receivables      | 8 |  |   | — |  |   | 8 |  |   | 6 |  |   | — |  |   | 6 |  |
| Finance receivables on non-accrual status                   | 21 |  |   | — |  |   | 21 |  |   | 21 |  |   | — |  |   | 21 |  |

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                | January 31, 2015 |   | October 31, 2014 |
| (in millions)                       | RetailPortfolio |   | WholesalePortfolio |   | Total |   | RetailPortfolio |   | WholesalePortfolio |   | Total |
| Current, and up to 30 days past due | $ | 562 |  |   | $ | 1,286 |  |   | $ | 1,848 |  |   | $ | 643 |  |   | $ | 1,333 |  |   | $ | 1,976 |  |
| 30-90 days past due                 | 66 |  |   | 2 |  |   | 68 |  |   | 64 |  |   | 2 |  |   | 66 |  |
| Over 90 days past due               | 20 |  |   | 1 |  |   | 21 |  |   | 19 |  |   | 4 |  |   | 23 |  |
| Total finance receivables           | $ | 648 |  |   | $ | 1,289 |  |   | $ | 1,937 |  |   | $ | 726 |  |   | $ | 1,339 |  |   | $ | 2,065 |  |

----

|                   |
|-------------------|
|                   |  |  |  |  |  |  |  |
| (in millions)     | January 31, 2015 |   | October 31, 2014 |
| Finished products | $ | 859 |  |   | $ | 880 |  |
| Work in process   | 67 |  |   | 50 |  |
| Raw materials     | 426 |  |   | 389 |  |
| Total inventories | $ | 1,352 |  |   | $ | 1,319 |  |

|                                                                                                                  |
|------------------------------------------------------------------------------------------------------------------|
|                                                                                                                  |  |  |  |  |  |  |  |
| (in millions)                                                                                                    | January 31, 2015 |   | October 31, 2014 |
| Manufacturing operations                                                                                         |   |   |   |
| Senior Secured Term Loan Credit Facility, as amended, due 2017, net of unamortized discount of $3, at both dates | $ | 694 |  |   | $ | 694 |  |
| 8.25% Senior Notes, due 2021, net of unamortized discount of $19 and $20, respectively                           | 1,181 |  |   | 1,180 |  |
| 4.50% Senior Subordinated Convertible Notes, due 2018, net of unamortized discount of $18 and $19, respectively  | 182 |  |   | 181 |  |
| 4.75% Senior Subordinated Convertible Notes, due 2019, net of unamortized discount of $38 and $40, respectively  | 373 |  |   | 371 |  |
| Debt of majority-owned dealerships                                                                               | 28 |  |   | 30 |  |
| Financing arrangements and capital lease obligations                                                             | 51 |  |   | 54 |  |
| Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040                                                        | 225 |  |   | 225 |  |
| Promissory Note                                                                                                  | 8 |  |   | 10 |  |
| Financed lease obligations                                                                                       | 160 |  |   | 184 |  |
| Other                                                                                                            | 27 |  |   | 29 |  |
| Total Manufacturing operations debt                                                                              | 2,929 |  |   | 2,958 |  |
| Less: Current portion                                                                                            | 114 |  |   | 100 |  |
| Net long-term Manufacturing operations debt                                                                      | $ | 2,815 |  |   | $ | 2,858 |  |

|                                                                                                       |
|-------------------------------------------------------------------------------------------------------|
|                                                                                                       |  |  |  |  |  |  |  |
| (in millions)                                                                                         | January 31, 2015 |   | October 31, 2014 |
| Financial Services operations                                                                         |   |   |   |
| Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2018 | $ | 887 |  |   | $ | 914 |  |
| Bank revolvers, at fixed and variable rates, due dates from 2015 through 2020                         | 1,169 |  |   | 1,242 |  |
| Commercial paper, at variable rates, program matures in 2017                                          | 64 |  |   | 74 |  |
| Borrowings secured by operating and finance leases, at various rates, due serially through 2018       | 33 |  |   | 36 |  |
| Total Financial Services operations debt                                                              | 2,153 |  |   | 2,266 |  |
| Less: Current portion                                                                                 | 927 |  |   | 1,195 |  |
| Net long-term Financial Services operations debt                                                      | $ | 1,226 |  |   | $ | 1,071 |  |

----

----

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                               | Three Months Ended January 31, |
|                                               | Pension Benefits |   | Health and LifeInsurance Benefits |
| (in millions)                                      | 2015 |   | 2014 |   | 2015 |   | 2014 |
| Service cost for benefits earned during the period | $ | 3 |  |   | $ | 4 |  |   | $ | 1 |  |   | $ | 1 |  |
| Interest on obligation                             | 36 |  |   | 39 |  |   | 18 |  |   | 17 |  |
| Amortization of cumulative loss                    | 25 |  |   | 24 |  |   | 10 |  |   | 4 |  |
| Amortization of prior service benefit              | — |  |   | — |  |   | (1 | ) |   | (1 | ) |
| Premiums on pension insurance                      | 1 |  |   | — |  |   | — |  |   | — |  |
| Expected return on assets                          | (49 | ) |   | (48 | ) |   | (7 | ) |   | (8 | ) |
| Net postretirement benefits expense                | $ | 16 |  |   | $ | 19 |  |   | $ | 21 |  |   | $ | 13 |  |

----

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

----

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                              | January 31, 2015 |   | October 31, 2014 |
| (in millions)                     | Level 1 |   | Level 2 |   | Level 3 |   | Total |   | Level 1 |   | Level 2 |   | Level 3 |   | Total |
| Assets                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Marketable securities:            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury bills               | $ | 110 |  |   | $ | — |  |   | $ | — |  |   | $ | 110 |  |   | $ | 256 |  |   | $ | — |  |   | $ | — |  |   | $ | 256 |  |
| Other                             | 65 |  |   | — |  |   | — |  |   | 65 |  |   | 349 |  |   | — |  |   | — |  |   | 349 |  |
| Derivative financial instruments: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate caps(A)             | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 1 |  |   | — |  |   | 1 |  |
| Total assets                      | $ | 175 |  |   | $ | — |  |   | $ | — |  |   | $ | 175 |  |   | $ | 605 |  |   | $ | 1 |  |   | $ | — |  |   | $ | 606 |  |
| Liabilities                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative financial instruments: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity forward contracts(B)    | $ | — |  |   | $ | 9 |  |   | $ | — |  |   | $ | 9 |  |   | $ | — |  |   | $ | 2 |  |   | $ | — |  |   | $ | 2 |  |
| Foreign currency contracts(C)     | — |  |   | 1 |  |   | — |  |   | 1 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Guarantees                        | — |  |   | — |  |   | 8 |  |   | 8 |  |   | — |  |   | — |  |   | 8 |  |   | 8 |  |
| Total liabilities                 | $ | — |  |   | $ | 10 |  |   | $ | 8 |  |   | $ | 18 |  |   | $ | — |  |   | $ | 2 |  |   | $ | 8 |  |   | $ | 10 |  |

|     |                                                                                                                                                       |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | The asset value of interest rate caps are included in other noncurrent assets as of October 31, 2014 in the accompanying Consolidated Balance Sheets. |

|     |                                                                                                                                                                                           |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B) | The liability value of commodity forward contracts are included in other current liabilities as of January 31, 2015 and October 31, 2014 in the accompanying Consolidated Balance Sheets. |

|     |                                                                                                                                                                     |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (C) | The liability value of foreign currency contracts are included in other current liabilities as of January 31, 2015 in the accompanying Consolidated Balance Sheets. |

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |
|                                                                 | Three Months Ended   January 31, |
| (in millions)                                                   | 2015 | 2014 |
| Guarantees, at November 1                                       | $ | (8 | ) |   | $ | (6 | ) |
| Transfers out of Level 3                                        | — |  |   | — |  |
| Issuances                                                       | — |  |   | — |  |
| Settlements                                                     | — |  |   | — |  |
| Guarantees, at January 31                                       | $ | (8 | ) |   | $ | (6 | ) |
| Change in unrealized gains on assets and liabilities still held | $ | — |  |   | $ | — |  |

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |
| (in millions)                                      | January 31, 2015 |   | October 31, 2014 |
| Level 2 financial instruments                      |   |   |   |
| Carrying value of impaired finance receivables (A) | $ | 17 |  |   | $ | 20 |  |
| Specific loss reserve                              | (8 | ) |   | (6 | ) |
| Fair value                                         | $ | 9 |  |   | $ | 14 |  |

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

----

|                                                                                                 |
|-------------------------------------------------------------------------------------------------|
|                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                            | As of January 31, 2015 |
|                                                                                            | Estimated Fair Value |   | Carrying Value |
| (in millions)                                                                                   | Level 1 |   | Level 2 |   | Level 3 |   | Total |   |
| Assets                                                                                          |   |   |   |   |   |   |   |   |   |
| Retail notes                                                                                    | $ | — |  |   | $ | — |  |   | $ | 229 |  |   | $ | 229 |  |   | $ | 226 |  |
| Notes receivable                                                                                | — |  |   | — |  |   | 7 |  |   | 7 |  |   | 7 |  |
| Liabilities                                                                                     |   |   |   |   |   |   |   |   |   |
| Debt:                                                                                           |   |   |   |   |   |   |   |   |   |
| Manufacturing operations                                                                        |   |   |   |   |   |   |   |   |   |
| Senior Secured Term Loan Credit Facility, as Amended, due 2017                                  | — |  |   | — |  |   | 711 |  |   | 711 |  |   | 694 |  |
| 8.25% Senior Notes, due 2021                                                                    | 1,195 |  |   | — |  |   | — |  |   | 1,195 |  |   | 1,181 |  |
| 4.50% Senior Subordinated Convertible Notes, due 2018(A)                                   | — |  |   | — |  |   | 186 |  |   | 186 |  |   | 182 |  |
| 4.75% Senior Subordinated Convertible Notes, due 2019(A)                                        | — |  |   | — |  |   | 372 |  |   | 372 |  |   | 373 |  |
| Debt of majority-owned dealerships                                                              | — |  |   | — |  |   | 28 |  |   | 28 |  |   | 28 |  |
| Financing arrangements                                                                          | — |  |   | — |  |   | 21 |  |   | 21 |  |   | 47 |  |
| Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040                                 | — |  |   | 242 |  |   | — |  |   | 242 |  |   | 225 |  |
| Promissory Note                                                                                 | — |  |   | — |  |   | 8 |  |   | 8 |  |   | 8 |  |
| Financed lease obligations                                                                      | — |  |   | — |  |   | 160 |  |   | 160 |  |   | 160 |  |
| Other                                                                                           | — |  |   | — |  |   | 25 |  |   | 25 |  |   | 27 |  |
| Financial Services operations                                                                   |   |   |   |   |   |   |   |   |   |
| Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2018      | — |  |   | — |  |   | 886 |  |   | 886 |  |   | 887 |  |
| Bank revolvers, at fixed and variable rates, due dates from 2015 through 2020                   | — |  |   | — |  |   | 1,151 |  |   | 1,151 |  |   | 1,169 |  |
| Commercial paper, at variable rates, program matures in 2017                                    | 64 |  |   | — |  |   | — |  |   | 64 |  |   | 64 |  |
| Borrowings secured by operating and finance leases, at various rates, due serially through 2018 | — |  |   | — |  |   | 33 |  |   | 33 |  |   | 33 |  |

----

|                                                                                                 |
|-------------------------------------------------------------------------------------------------|
|                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                            | As of October 31, 2014 |
|                                                                                            | Estimated Fair Value |   | Carrying Value |
| (in millions)                                                                                   | Level 1 |   | Level 2 |   | Level 3 |   | Total |   |
| Assets                                                                                          |   |   |   |   |   |   |   |   |   |
| Retail notes                                                                                    | $ | — |  |   | $ | — |  |   | $ | 279 |  |   | $ | 279 |  |   | $ | 275 |  |
| Notes receivable                                                                                | — |  |   | — |  |   | 7 |  |   | 7 |  |   | 8 |  |
| Liabilities                                                                                     |   |   |   |   |   |   |   |   |   |
| Debt:                                                                                           |   |   |   |   |   |   |   |   |   |
| Manufacturing operations                                                                        |   |   |   |   |   |   |   |   |   |
| Senior Secured Term Loan Credit Facility, as Amended, due 2017                                  | — |  |   | — |  |   | 704 |  |   | 704 |  |   | 694 |  |
| 8.25% Senior Notes, due 2021                                                                    | 1,285 |  |   | — |  |   | — |  |   | 1,285 |  |   | 1,180 |  |
| 4.50% Senior Subordinated Convertible Notes, due 2018(A)                                        | — |  |   | — |  |   | 196 |  |   | 196 |  |   | 181 |  |
| 4.75% Senior Subordinated Convertible Notes, due 2019(A)                                        | — |  |   | — |  |   | 413 |  |   | 413 |  |   | 371 |  |
| Debt of majority-owned dealerships                                                              | — |  |   | — |  |   | 30 |  |   | 30 |  |   | 30 |  |
| Financing arrangements                                                                          | — |  |   | — |  |   | 22 |  |   | 22 |  |   | 48 |  |
| Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040                                 | — |  |   | 232 |  |   | — |  |   | 232 |  |   | 225 |  |
| Promissory Note                                                                                 | — |  |   | — |  |   | 10 |  |   | 10 |  |   | 10 |  |
| Financed lease obligations                                                                      | — |  |   | — |  |   | 184 |  |   | 184 |  |   | 184 |  |
| Other                                                                                           | — |  |   | — |  |   | 28 |  |   | 28 |  |   | 29 |  |
| Financial Services operations                                                                   |   |   |   |   |   |   |   |   |   |
| Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2019      | — |  |   | — |  |   | 911 |  |   | 911 |  |   | 914 |  |
| Bank revolvers, at fixed and variable rates, due dates from 2014 through 2020                   | — |  |   | — |  |   | 1,214 |  |   | 1,214 |  |   | 1,242 |  |
| Commercial paper, at variable rates, program matures in 2015                                    | 74 |  |   | — |  |   | — |  |   | 74 |  |   | 74 |  |
| Borrowings secured by operating and finance leases, at various rates, due serially through 2018 | — |  |   | — |  |   | 36 |  |   | 36 |  |   | 36 |  |

|     |                                                                                                                                                                                                                                                                                                                                           |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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 internally developed valuation techniques such as discounted cash flow modeling for Level 3 convertible notes which include the equity feature. |

----

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |
|                                  | Location in Consolidated                                                                                                                                                             Statements of Operations |   | Three Months Ended January 31, |
| (in millions)                         |   | 2015 |   | 2014 |
| Cross currency swaps                  | Other (income) expense, net |   | $ | 2 |  |   | $ | 1 |  |
| Interest rate caps                    | Interest expense |   | — |  |   | (1 | ) |
| Foreign currency contracts            | Other (income) expense, net |   | 1 |  |   | — |  |
| Commodity forward contracts | Costs of products sold |   | 10 |  |   | — |  |
| Total loss                            |   | $ | 13 |  |   | $ | — |  |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |
| (in millions)             | Currency |   | Notional Amount |   | Maturity |
| As of January 31, 2015    |   |   |   |   |   |
| Forward exchange contract | EUR |   | € | 6 |  |   | February 2015 |
| Forward exchange contract | EUR |   | € | 6 |  |   | March 2015 |
| Forward exchange contract | EUR |   | € | 6 |  |   | April 2015 |
| Forward exchange contract | EUR |   | € | 12 |  |   | May 2015-October 2015(A) |
| As of October 31, 2014    |   |   |   |   |   |
| Forward exchange contract | EUR |   | € | 4 |  |   | November 2014 |
| Forward exchange contract | EUR |   | € | 4 |  |   | December 2014 |
| Forward exchange contract | EUR |   | € | 5 |  |   | January 2015 |
| Forward exchange contract | EUR |   | € | 9 |  |   | February 2015 - October 2015(B) |

|     |                                                                                                                          |
|-----|--------------------------------------------------------------------------------------------------------------------------|
| (B) | Forward exchange contracts of €1 expire on the last day of each month from February 2015 through October 2015. |

----

----

----

----

----

----

|         |                                                                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The export truck and parts operations, formerly in our Global Operations segment, are now included within the results of our Truck and Parts segments, respectively. |

|         |                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Parts required to support the military truck lines, formerly within our Parts segment, are now included within the results of our Truck segment. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Our Truck segment manufactures and distributes Class 4 through 8 trucks, buses, and military vehicles under the International and IC Bus ("IC") brands, along with production of engines under the MaxxForce brand name and parts required to support the military truck lines, in the markets that include sales in the U.S., Canada, Mexico, and within our export truck business. 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 Parts segment provides customers with proprietary products needed to support the International commercial truck, IC Bus, MaxxForce engine lines, and export parts business, as well as our other product lines. Our Parts segment also provides a wide selection of other standard truck, trailer, and engine aftermarket parts. Also included in the Parts segment are the operating results of BDP, which manages the sourcing, merchandising, and distribution of certain service parts we sell to Ford in North America. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Our Global Operations segment primarily consists of the IIAA (formerly MWM International Industria De Motores Da America Do Sul Ltda. ("MWM")) engine and truck operations in Brazil. The IIAA engine operations produce diesel engines, primarily under contract manufacturing arrangements, as well as under the MWM brand, for sale to OEMs in South America. In addition, our Global Operations segment includes the operating results of our joint venture in China with Anhui Jianghuai Automobile Co ("JAC"). |

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

----

|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                            | Truck |   | Parts |   | Global Operations |   | FinancialServices(A) |   | CorporateandEliminations |   | Total |
| Three Months Ended January 31, 2015                                      |   |   |   |   |   |   |   |   |   |   |   |
| External sales and revenues, net                                         | $ | 1,631 |  |   | $ | 614 |  |   | $ | 138 |  |   | $ | 36 |  |   | $ | 2 |  |   | $ | 2,421 |  |
| Intersegment sales and revenues                                          | 74 |  |   | 12 |  |   | 14 |  |   | 24 |  |   | (124 | ) |   | — |  |
| Total sales and revenues, net                                            | $ | 1,705 |  |   | $ | 626 |  |   | $ | 152 |  |   | $ | 60 |  |   | $ | (122 | ) |   | $ | 2,421 |  |
| Income (loss) from continuing operations attributable to NIC, net of tax | $ | (18 | ) |   | $ | 145 |  |   | $ | (15 | ) |   | $ | 24 |  |   | $ | (178 | ) |   | $ | (42 | ) |
| Income tax expense                                                       | — |  |   | — |  |   | — |  |   | — |  |   | (7 | ) |   | (7 | ) |
| Segment profit (loss)                                                    | $ | (18 | ) |   | $ | 145 |  |   | $ | (15 | ) |   | $ | 24 |  |   | $ | (171 | ) |   | $ | (35 | ) |
| Depreciation and amortization                                            | $ | 52 |  |   | $ | 3 |  |   | $ | 7 |  |   | $ | 12 |  |   | $ | 5 |  |   | $ | 79 |  |
| Interest expense                                                         | — |  |   | — |  |   | — |  |   | 20 |  |   | 57 |  |   | 77 |  |
| Equity in income (loss) of non-consolidated affiliates                   | 2 |  |   | 1 |  |   | (1 | ) |   | — |  |   | — |  |   | 2 |  |
| Capital expenditures(B)                                                  | 14 |  |   | — |  |   | 2 |  |   | — |  |   | 1 |  |   | 17 |  |

|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                            | Truck |   | Parts |   | Global Operations |   | FinancialServices(A) |   | CorporateandEliminations |   | Total |
| Three Months Ended January 31, 2014                                      |   |   |   |   |   |   |   |   |   |   |   |
| External sales and revenues, net                                         | $ | 1,391 |  |   | $ | 574 |  |   | $ | 204 |  |   | $ | 39 |  |   | $ | — |  |   | $ | 2,208 |  |
| Intersegment sales and revenues                                          | 60 |  |   | 12 |  |   | 8 |  |   | 16 |  |   | (96 | ) |   | — |  |
| Total sales and revenues, net                                            | $ | 1,451 |  |   | $ | 586 |  |   | $ | 212 |  |   | $ | 55 |  |   | $ | (96 | ) |   | $ | 2,208 |  |
| Income (loss) from continuing operations attributable to NIC, net of tax | $ | (208 | ) |   | $ | 108 |  |   | $ | (35 | ) |   | $ | 23 |  |   | $ | (137 | ) |   | $ | (249 | ) |
| Income tax benefit                                                       | — |  |   | — |  |   | — |  |   | — |  |   | 12 |  |   | 12 |  |
| Segment profit (loss)                                                    | $ | (208 | ) |   | $ | 108 |  |   | $ | (35 | ) |   | $ | 23 |  |   | $ | (149 | ) |   | $ | (261 | ) |
| Depreciation and amortization                                            | $ | 58 |  |   | $ | 4 |  |   | $ | 8 |  |   | $ | 10 |  |   | $ | 6 |  |   | $ | 86 |  |
| Interest expense                                                         | — |  |   | — |  |   | — |  |   | 17 |  |   | 65 |  |   | 82 |  |
| Equity in income (loss) of non-consolidated affiliates                   | 1 |  |   | 1 |  |   | (2 | ) |   | — |  |   | — |  |   | — |  |
| Capital expenditures(B)                                                  | 12 |  |   | 4 |  |   | 3 |  |   | 1 |  |   | 1 |  |   | 21 |  |

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)          | Truck |   | Parts |   | Global Operations |   | FinancialServices |   | CorporateandEliminations |   | Total |
| Segment assets, as of: |   |   |   |   |   |   |   |   |   |   |   |
| January 31, 2015       | $ | 2,260 |  |   | $ | 656 |  |   | $ | 549 |  |   | $ | 2,375 |  |   | $ | 945 |  |   | $ | 6,785 |  |
| October 31, 2014       | 2,245 |  |   | 672 |  |   | 657 |  |   | 2,598 |  |   | 1,271 |  |   | 7,443 |  |

|     |                                                                                                                                                                                                     |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Total sales and revenues in the Financial Services segment include interest revenues of $45 million and $40 million for the three months ended January 31, 2015 and 2014, respectively. |

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

----

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions)                                                    | Unrealized Gain on Marketable Securities |   | Foreign Currency Translation Adjustments |   | Defined Benefit Plan |   | Total |
| Balance as of October 31, 2014                                   | $ | 1 |  |   | $ | (127 | ) |   | $ | (2,137 | ) |   | $ | (2,263 | ) |
| Other comprehensive income (loss) before reclassifications       | — |  |   | (59 | ) |   | — |  |   | (59 | ) |
| Amounts reclassified out of accumulated other comprehensive loss | — |  |   | — |  |   | 32 |  |   | 32 |  |
| Net current-period other comprehensive income (loss)             | — |  |   | (59 | ) |   | 32 |  |   | (27 | ) |
| Balance as of January 31, 2015                                   | $ | 1 |  |   | $ | (186 | ) |   | $ | (2,105 | ) |   | $ | (2,290 | ) |

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

|                                                                         |
|-------------------------------------------------------------------------|
|                                                                         |  |  |  |  |  |  |  |  |  |  |
|                                                                    |   |   |   | Three Months Ended January 31, |
|                                                                    |   | Location in Consolidated Statements of Operations |   | 2015 |   | 2014 |
| Defined benefit plans                                                   |   |   |   |   |   |   |
| Amortization of prior service costs                                     |   | Selling, general and administrative expenses |   | $ | (1 | ) |   | $ | (1 | ) |
| Amortization of actuarial loss                                          |   | Selling, general and administrative expenses |   | 33 |  |   | 27 |  |
| Total reclassifications for the period (net of tax of $0 at both dates) |   | $ | 32 |  |   | $ | 26 |  |

----

|                                                                                 |
|---------------------------------------------------------------------------------|
|                                                                                 |  |  |  |  |  |  |  |
|                                                                            | Three Months Ended January 31, |
| (in millions, except per share data)                                            | 2015 |   | 2014 |
| Numerator:                                                                      |   |   |   |
| Amounts attributable to Navistar International Corporation common stockholders: |   |   |   |
| Loss from continuing operations, net of tax                                     | $ | (42 | ) |   | $ | (249 | ) |
| Income from discontinued operations, net of tax                                 | — |  |   | 1 |  |
| Net loss                                                                        | $ | (42 | ) |   | $ | (248 | ) |
|                                                                            |   |   |   |
| Denominator:                                                                    |   |   |   |
| Weighted average shares outstanding:                                            |   |   |   |
| Basic                                                                           | 81.5 |  |   | 81.2 |  |
| Effect of dilutive securities                                                   | — |  |   | — |  |
| Diluted                                                                         | 81.5 |  |   | 81.2 |  |
|                                                                            |   |   |   |
| Earnings (loss) per share attributable to Navistar International Corporation:   |   |   |   |
| Basic:                                                                          |   |   |   |
| Continuing operations                                                           | $ | (0.52 | ) |   | $ | (3.07 | ) |
| Discontinued operations                                                         | — |  |   | 0.02 |  |
| Net loss                                                                        | $ | (0.52 | ) |   | $ | (3.05 | ) |
| Diluted:                                                                        |   |   |   |
| Continuing operations                                                           | $ | (0.52 | ) |   | $ | (3.07 | ) |
| Discontinued operations                                                         | — |  |   | 0.02 |  |
| Net loss                                                                        | $ | (0.52 | ) |   | $ | (3.05 | ) |

----

|                                                                                             |
|---------------------------------------------------------------------------------------------|
|                                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Operations for the Three Months Ended January 31, 2015 |
| (in millions)                                                                               | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Sales and revenues, net                                                                     | $ | — |  |   | $ | 1,610 |  |   | $ | 1,768 |  |   | $ | (957 | ) |   | $ | 2,421 |  |
| Costs of products sold                                                                      | — |  |   | 1,409 |  |   | 1,570 |  |   | (934 | ) |   | 2,045 |  |
| Restructuring charges                                                                       | — |  |   | 3 |  |   | — |  |   | — |  |   | 3 |  |
| Asset impairment charges                                                                    | — |  |   | 7 |  |   | — |  |   | — |  |   | 7 |  |
| All other operating expenses (income)                                                       | 23 |  |   | 264 |  |   | 125 |  |   | (18 | ) |   | 394 |  |
| Total costs and expenses                                                                    | 23 |  |   | 1,683 |  |   | 1,695 |  |   | (952 | ) |   | 2,449 |  |
| Equity in income (loss) of affiliates                                                       | (19 | ) |   | 15 |  |   | 1 |  |   | 5 |  |   | 2 |  |
| Income (loss) before income taxes                                                           | (42 | ) |   | (58 | ) |   | 74 |  |   | — |  |   | (26 | ) |
| Income tax expense                                                                          | — |  |   | (1 | ) |   | (6 | ) |   | — |  |   | (7 | ) |
| Earnings (loss) from continuing operations                                                  | (42 | ) |   | (59 | ) |   | 68 |  |   | — |  |   | (33 | ) |
| Income from discontinued operations, net of tax                                             | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Net income (loss)                                                                           | (42 | ) |   | (59 | ) |   | 68 |  |   | — |  |   | (33 | ) |
| Less: Net income attributable to non-controlling interests                                  | — |  |   | — |  |   | 9 |  |   | — |  |   | 9 |  |
| Net income (loss) attributable to Navistar International Corporation                        | $ | (42 | ) |   | $ | (59 | ) |   | $ | 59 |  |   | $ | — |  |   | $ | (42 | ) |

----

|                                                                                                              |
|--------------------------------------------------------------------------------------------------------------|
|                                                                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended January 31, 2015 |
| (in millions)                                                                                                | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Net income (loss) attributable to Navistar International Corporation                                         | $ | (42 | ) |   | $ | (59 | ) |   | $ | 59 |  |   | $ | — |  |   | $ | (42 | ) |
| Other comprehensive income (loss):                                                                           |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                                                      | (59 | ) |   | — |  |   | 59 |  |   | (59 | ) |   | (59 | ) |
| Unrealized gain on marketable securities                                                                     | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Defined benefit plans (net of tax of $(1), $0, $(1), $1 and, $(1), respectively)                             | 32 |  |   | 31 |  |   | 1 |  |   | (32 | ) |   | 32 |  |
| Total other comprehensive income (loss)                                                                      | (27 | ) |   | 31 |  |   | 60 |  |   | (91 | ) |   | (27 | ) |
| Total comprehensive income (loss) attributable to Navistar International Corporation                         | $ | (69 | ) |   | $ | (28 | ) |   | $ | 119 |  |   | $ | (91 | ) |   | $ | (69 | ) |

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Balance Sheet as of January 31, 2015                            |
| (in millions)                                                                           | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Assets                                                                                  |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                               | $ | 185 |  |   | $ | 40 |  |   | $ | 395 |  |   | $ | — |  |   | $ | 620 |  |
| Marketable securities                                                                   | 100 |  |   | — |  |   | 75 |  |   | — |  |   | 175 |  |
| Restricted cash                                                                         | 19 |  |   | 7 |  |   | 89 |  |   | — |  |   | 115 |  |
| Finance and other receivables, net                                                      | 6 |  |   | 140 |  |   | 2,301 |  |   | (24 | ) |   | 2,423 |  |
| Inventories                                                                             | — |  |   | 873 |  |   | 491 |  |   | (12 | ) |   | 1,352 |  |
| Investments in non-consolidated affiliates                                              | (7,291 | ) |   | 6,423 |  |   | 64 |  |   | 871 |  |   | 67 |  |
| Property and equipment, net                                                             | — |  |   | 788 |  |   | 693 |  |   | (7 | ) |   | 1,474 |  |
| Goodwill                                                                                | — |  |   | — |  |   | 38 |  |   | — |  |   | 38 |  |
| Deferred taxes, net                                                                     | 5 |  |   | 9 |  |   | 159 |  |   | — |  |   | 173 |  |
| Other                                                                                   | 34 |  |   | 137 |  |   | 181 |  |   | (4 | ) |   | 348 |  |
| Total assets                                                                            | $ | (6,942 | ) |   | $ | 8,417 |  |   | $ | 4,486 |  |   | $ | 824 |  |   | $ | 6,785 |  |
| Liabilities and stockholders’ equity (deficit)                                    |   |   |   |   |   |   |   |   |   |
| Debt                                                                                    | $ | 1,961 |  |   | $ | 910 |  |   | $ | 2,217 |  |   | $ | (6 | ) |   | $ | 5,082 |  |
| Postretirement benefits liabilities                                                     | — |  |   | 2,682 |  |   | 234 |  |   | — |  |   | 2,916 |  |
| Amounts due to (from) affiliates                                                        | (7,780 | ) |   | 11,888 |  |   | (4,172 | ) |   | 64 |  |   | — |  |
| Other liabilities                                                                       | 3,596 |  |   | 258 |  |   | (306 | ) |   | (73 | ) |   | 3,475 |  |
| Total liabilities                                                                       | (2,223 | ) |   | 15,738 |  |   | (2,027 | ) |   | (15 | ) |   | 11,473 |  |
| Redeemable equity securities                                                            | 1 |  |   | — |  |   | — |  |   | — |  |   | 1 |  |
| Stockholders’ equity attributable to non-controlling interest                     | — |  |   | — |  |   | 31 |  |   | — |  |   | 31 |  |
| Stockholders’ equity (deficit) attributable to Navistar International Corporation | (4,720 | ) |   | (7,321 | ) |   | 6,482 |  |   | 839 |  |   | (4,720 | ) |
| Total liabilities and stockholders’ equity (deficit)                              | $ | (6,942 | ) |   | $ | 8,417 |  |   | $ | 4,486 |  |   | $ | 824 |  |   | $ | 6,785 |  |

----

|                                                                                             |
|---------------------------------------------------------------------------------------------|
|                                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Statement of Cash Flows for the Three Months Ended January 31, 2015 |
| (in millions)                                                                               | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Net cash provided by (used in) operations                                                   | $ | (194 | ) |   | $ | (46 | ) |   | $ | (112 | ) |   | $ | 141 |  |   | $ | (211 | ) |
| Cash flows from investment activities                                                       |   |   |   |   |   |   |   |   |   |
| Net change in restricted cash and cash equivalents                                          | — |  |   | (3 | ) |   | 56 |  |   | — |  |   | 53 |  |
| Net sales of marketable securities                                                          | 278 |  |   | — |  |   | 152 |  |   | — |  |   | 430 |  |
| Capital expenditures and purchase of equipment leased to others                             | — |  |   | (8 | ) |   | (19 | ) |   | — |  |   | (27 | ) |
| Other investing activities                                                                  | — |  |   | — |  |   | 1 |  |   | — |  |   | 1 |  |
| Net cash provided by (used in) investment activities                                        | 278 |  |   | (11 | ) |   | 190 |  |   | — |  |   | 457 |  |
| Cash flows from financing activities                                                        |   |   |   |   |   |   |   |   |   |
| Net borrowings (repayments) of debt                                                         | — |  |   | 34 |  |   | (80 | ) |   | (61 | ) |   | (107 | ) |
| Other financing activities                                                                  | — |  |   | 10 |  |   | 68 |  |   | (80 | ) |   | (2 | ) |
| Net cash provided by (used in) financing activities                                         | — |  |   | 44 |  |   | (12 | ) |   | (141 | ) |   | (109 | ) |
| Effect of exchange rate changes on cash and cash equivalents                                | — |  |   | — |  |   | (14 | ) |   | — |  |   | (14 | ) |
| Increase (decrease) in cash and cash equivalents                                            | 84 |  |   | (13 | ) |   | 52 |  |   | — |  |   | 123 |  |
| Cash and cash equivalents at beginning of the period                                        | 101 |  |   | 53 |  |   | 343 |  |   | — |  |   | 497 |  |
| Cash and cash equivalents at end of the period                                              | $ | 185 |  |   | $ | 40 |  |   | $ | 395 |  |   | $ | — |  |   | $ | 620 |  |

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

----

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

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Condensed Consolidating Balance Sheet as of October 31, 2014                            |
| (in millions)                                                                           | NIC |   | Navistar,Inc. |   | Non-GuarantorSubsidiaries |   | Eliminationsand Other |   | Consolidated |
| Assets                                                                                  |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                               | $ | 101 |  |   | $ | 53 |  |   | $ | 343 |  |   | $ | — |  |   | $ | 497 |  |
| Marketable securities                                                                   | 379 |  |   | — |  |   | 226 |  |   | — |  |   | 605 |  |
| Restricted cash                                                                         | 19 |  |   | 4 |  |   | 148 |  |   | — |  |   | 171 |  |
| Finance and other receivables, net                                                      | — |  |   | 124 |  |   | 2,504 |  |   | (12 | ) |   | 2,616 |  |
| Inventories                                                                             | — |  |   | 792 |  |   | 539 |  |   | (12 | ) |   | 1,319 |  |
| Investments in non-consolidated affiliates                                              | (7,245 | ) |   | 6,410 |  |   | 71 |  |   | 837 |  |   | 73 |  |
| Property and equipment, net                                                             | — |  |   | 827 |  |   | 740 |  |   | (5 | ) |   | 1,562 |  |
| Goodwill                                                                                | — |  |   | — |  |   | 38 |  |   | — |  |   | 38 |  |
| Deferred taxes, net                                                                     | 5 |  |   | 9 |  |   | 185 |  |   | 1 |  |   | 200 |  |
| Other                                                                                   | 34 |  |   | 137 |  |   | 194 |  |   | (3 | ) |   | 362 |  |
| Total assets                                                                            | $ | (6,707 | ) |   | $ | 8,356 |  |   | $ | 4,988 |  |   | $ | 806 |  |   | $ | 7,443 |  |
| Liabilities and stockholders’ equity (deficit)                                    |   |   |   |   |   |   |   |   |   |
| Debt                                                                                    | $ | 1,958 |  |   | $ | 937 |  |   | $ | 2,336 |  |   | $ | (7 | ) |   | $ | 5,224 |  |
| Postretirement benefits liabilities                                                     | — |  |   | 2,712 |  |   | 243 |  |   | — |  |   | 2,955 |  |
| Amounts due to (from) affiliates                                                        | (7,618 | ) |   | 11,739 |  |   | (4,267 | ) |   | 146 |  |   | — |  |
| Other liabilities                                                                       | 3,605 |  |   | 370 |  |   | (22 | ) |   | (71 | ) |   | 3,882 |  |
| Total liabilities                                                                       | (2,055 | ) |   | 15,758 |  |   | (1,710 | ) |   | 68 |  |   | 12,061 |  |
| Redeemable equity securities                                                            | 2 |  |   | — |  |   | — |  |   | — |  |   | 2 |  |
| Stockholders’ equity attributable to non-controlling interest                     | — |  |   | — |  |   | 34 |  |   | — |  |   | 34 |  |
| Stockholders’ equity (deficit) attributable to Navistar International Corporation | (4,654 | ) |   | (7,402 | ) |   | 6,664 |  |   | 738 |  |   | (4,654 | ) |
| Total liabilities and stockholders’ equity (deficit)                              | $ | (6,707 | ) |   | $ | 8,356 |  |   | $ | 4,988 |  |   | $ | 806 |  |   | $ | 7,443 |  |

----

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

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

----

|                                                            |
|------------------------------------------------------------|
|                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                       | Three Months Ended January 31, |   |   |   | % Change |
| (in millions, except per share data and % change)          | 2015 |   | 2014 |   | Change |   |
| Sales and revenues, net                                    | $ | 2,421 |  |   | $ | 2,208 |  |   | $ | 213 |  |   | 10 |  % |
| Costs of products sold                                     | 2,045 |  |   | 2,014 |  |   | 31 |  |   | 2 |  % |
| Restructuring charges                                      | 3 |  |   | 3 |  |   | — |  |   | — |  % |
| Asset impairment charges                                   | 7 |  |   | 18 |  |   | (11 | ) |   | (61 | )% |
| Selling, general and administrative expenses               | 241 |  |   | 239 |  |   | 2 |  |   | 1 |  % |
| Engineering and product development costs                  | 79 |  |   | 90 |  |   | (11 | ) |   | (12 | )% |
| Interest expense                                           | 77 |  |   | 82 |  |   | (5 | ) |   | (6 | )% |
| Other (income) expense, net                                | (3 | ) |   | 14 |  |   | (17 | ) |   | N.M. |  |
| Total costs and expenses                                   | 2,449 |  |   | 2,460 |  |   | (11 | ) |   | — |  % |
| Equity in income of non-consolidated affiliates            | 2 |  |   | — |  |   | 2 |  |   | N.M. |  |
| Loss from continuing operations before income taxes        | (26 | ) |   | (252 | ) |   | 226 |  |   | (90 | )% |
| Income tax (expense) benefit                               | (7 | ) |   | 12 |  |   | (19 | ) |   | N.M. |  |
| Loss from continuing operations                            | (33 | ) |   | (240 | ) |   | 207 |  |   | (86 | )% |
| Less: Net income attributable to non-controlling interests | 9 |  |   | 9 |  |   | — |  |   | — |  % |
| Loss from continuing operations(A)                         | (42 | ) |   | (249 | ) |   | 207 |  |   | (83 | )% |
| Income from discontinued operations, net of tax            | — |  |   | 1 |  |   | (1 | ) |   | N.M |  |
| Net loss(A)                                                | $ | (42 | ) |   | $ | (248 | ) |   | $ | 206 |  |   | (83 | )% |
|                                                       |   |   |   |   |   |   |   |
| Diluted earnings (loss) per share:(A)                      |   |   |   |   |   |   |   |
| Continuing operations                                      | $ | (0.52 | ) |   | $ | (3.07 | ) |   | $ | 2.55 |  |   | (83 | )% |
| Discontinued operations                                    | — |  |   | 0.02 |  |   | (0.02 | ) |   | N.M. |  |
|                                                       | $ | (0.52 | ) |   | $ | (3.05 | ) |   | $ | 2.53 |  |   | (83 | )% |
| Diluted weighted average shares outstanding                | 81.5 |  |   | 81.2 |  |   | 0.3 |  |   | — |  % |

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

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

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                           | Three Months Ended January 31, |   |   |   | % Change |
| (in millions, except % change) | 2015 |   | 2014 |   | Change |   |
| Truck                          | $ | 1,705 |  |   | $ | 1,451 |  |   | $ | 254 |  |   | 18 |  % |
| Parts                          | 626 |  |   | 586 |  |   | 40 |  |   | 7 |  % |
| Global Operations              | 152 |  |   | 212 |  |   | (60 | ) |   | (28 | )% |
| Financial Services             | 60 |  |   | 55 |  |   | 5 |  |   | 9 |  % |
| Corporate and Eliminations     | (122 | ) |   | (96 | ) |   | (26 | ) |   | 27 |  % |
| Total                          | $ | 2,421 |  |   | $ | 2,208 |  |   | $ | 213 |  |   | 10 |  % |

----

----

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                           | Three Months Ended January 31, |   |   |   |   |
| (in millions, except % change) | 2015 |   | 2014 |   | Change |   | % Change |
| Truck segment sales, net       | $ | 1,705 |  |   | $ | 1,451 |  |   | $ | 254 |  |   | 18 |  % |
| Truck segment loss             | (18 | ) |   | (208 | ) |   | 190 |  |   | (91 | )% |

----

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                           | Three Months Ended January 31, |   |   |   |   |
| (in millions, except % change) | 2015 |   | 2014 |   | Change |   | % Change |
| Parts segment sales, net       | $ | 626 |  |   | $ | 586 |  |   | $ | 40 |  |   | 7 | % |
| Parts segment profit           | 145 |  |   | 108 |  |   | 37 |  |   | 34 | % |

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                 | Three Months Ended January 31, |   |   |   |   |
| (in millions, except % change)       | 2015 |   | 2014 |   | Change |   | % Change |
| Global Operations segment sales, net | $ | 152 |  |   | $ | 212 |  |   | $ | (60 | ) |   | (28 | )% |
| Global Operations segment loss       | (15 | ) |   | (35 | ) |   | 20 |  |   | (57 | )% |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     | Three Months Ended January 31, |   |   |   |   |
| (in millions, except % change)           | 2015 |   | 2014 |   | Change |   | % Change |
| Financial Services segment revenues, net | $ | 60 |  |   | $ | 55 |  |   | $ | 5 |  |   | 9 | % |
| Financial Services segment profit        | 24 |  |   | 23 |  |   | 1 |  |   | 4 | % |

----

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |
|                            | Three Months Ended January 31, |   |   |   |   |
| (in units)                      | 2015 |   | 2014 |   | Change |   | % Change |
| Core Markets (U.S. and Canada)  |   |   |   |   |   |   |   |
| School buses                    | 5,700 |  |   | 5,300 |  |   | 400 |  |   | 8 | % |
| Class 6 and 7 medium trucks     | 18,000 |  |   | 15,700 |  |   | 2,300 |  |   | 15 | % |
| Class 8 heavy trucks            | 50,400 |  |   | 42,600 |  |   | 7,800 |  |   | 18 | % |
| Class 8 severe service trucks   | 14,300 |  |   | 12,100 |  |   | 2,200 |  |   | 18 | % |
| Total Core markets              | 88,400 |  |   | 75,700 |  |   | 12,700 |  |   | 17 | % |
| Combined class 8 trucks         | 64,700 |  |   | 54,700 |  |   | 10,000 |  |   | 18 | % |
| Navistar Core retail deliveries | 13,000 |  |   | 12,100 |  |   | 900 |  |   | 7 | % |

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                           | Three Months Ended |
|                           | January 31, 2015 |   | October 31, 2014 |   | July 31, 2014 |   | April 30, 2014 |   | January 31, 2014 |
| Core Markets (U.S. and Canada) |   |  |   |   |  |   |   |   |   |   |   |
| Class 6 and 7 medium trucks    | 21 | % |   | 19 | % |   | 20 | % |   | 26 | % |   | 17 | % |
| Class 8 heavy trucks           | 10 | % |   | 15 | % |   | 14 | % |   | 14 | % |   | 12 | % |
| Class 8 severe service trucks  | 14 | % |   | 14 | % |   | 15 | % |   | 17 | % |   | 19 | % |
| Combined class 8 trucks        | 11 | % |   | 15 | % |   | 14 | % |   | 15 | % |   | 14 | % |

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |
|                           | Three Months Ended January 31, |   |   |
| (in units)                     | 2015 |   | 2014 |   | Change |   | % Change |
| Core Markets (U.S. and Canada) |   |   |   |   |   |   |   |
| School buses                   | 2,500 |  |   | 2,300 |  |   | 200 |  |   | 9 |  % |
| Class 6 and 7 medium trucks    | 4,600 |  |   | 4,300 |  |   | 300 |  |   | 7 |  % |
| Class 8 heavy trucks           | 8,100 |  |   | 5,600 |  |   | 2,500 |  |   | 45 |  % |
| Class 8 severe service trucks  | 2,000 |  |   | 2,200 |  |   | (200 | ) |   | (9 | )% |
| Total Core Markets             | 17,200 |  |   | 14,400 |  |   | 2,800 |  |   | 19 |  % |
| Combined class 8 trucks        | 10,100 |  |   | 7,800 |  |   | 2,300 |  |   | 29 |  % |

----

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |  |  |  |
|                           | As of January 31, |   |   |
| (in units)                     | 2015 |   | 2014 |   | Change |   | % Change |
| Core Markets (U.S. and Canada) |   |   |   |   |   |   |   |
| School buses                   | 2,100 |  |   | 3,200 |  |   | (1,100 | ) |   | (34 | )% |
| Class 6 and 7 medium trucks    | 7,200 |  |   | 5,600 |  |   | 1,600 |  |   | 29 |  % |
| Class 8 heavy trucks           | 15,300 |  |   | 10,100 |  |   | 5,200 |  |   | 51 |  % |
| Class 8 severe service trucks  | 2,300 |  |   | 2,200 |  |   | 100 |  |   | 5 |  % |
| Total Core Markets             | 26,900 |  |   | 21,100 |  |   | 5,800 |  |   | 27 |  % |
| Combined class 8 trucks        | 17,600 |  |   | 12,300 |  |   | 5,300 |  |   | 43 |  % |

|                                    |
|------------------------------------|
|                                    |  |  |  |  |  |  |  |  |  |  |  |
|                               | Three Months Ended January 31, |   |   |
| (in units)                         | 2015 |   | 2014 |   | Change   |   | % Change |
| Core Markets (U.S. and Canada)     |   |   |   |   |   |   |   |
| School buses                       | 2,700 |  |   | 1,900 |  |   | 800 |  |   | 42 | % |
| Class 6 and 7 medium trucks   | 4,000 |  |   | 3,200 |  |   | 800 |  |   | 25 | % |
| Class 8 heavy trucks          | 4,800 |  |   | 4,500 |  |   | 300 |  |   | 7 | % |
| Class 8 severe service trucks | 2,000 |  |   | 1,900 |  |   | 100 |  |   | 5 | % |
| Total Core Markets                 | 13,500 |  |   | 11,500 |  |   | 2,000 |  |   | 17 | % |
| Other markets(A)                   | 7,000 |  |   | 5,500 |  |   | 1,500 |  |   | 27 | % |
| Total worldwide unit               | 20,500 |  |   | 17,000 |  |   | 3,500 |  |   | 21 | % |
| Combined class 8 trucks            | 6,800 |  |   | 6,400 |  |   | 400 |  |   | 6 | % |

|     |                                                                                                                                                                                                            |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Other markets primarily consist of Export Truck and Mexico and also includes chargeouts related to BDT of 3,400 units and 2,400 units during the first quarter of 2015 and 2014, respectively. |

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |  |  |  |
|                    | Three Months Ended January 31, |   |   |
| (in units)              | 2015 |   | 2014 |   | Change   |   | % Change   |
| OEM sales-South America | 17,200 |  |   | 20,400 |  |   | (3,200 | ) |   | (16 | )% |
| Intercompany sales      | 10,800 |  |   | 9,500 |  |   | 1,300 |  |   | 14 |  % |
| Other OEM sales         | 1,400 |  |   | 2,400 |  |   | (1,000 | ) |   | (42 | )% |
| Total sales             | 29,400 |  |   | 32,300 |  |   | (2,900 | ) |   | (9 | )% |

----

|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |  |  |  |  |  |  |  |  |
|                                                          | As of |
| (in millions)                                                 | January 31, 2015 |   | October 31, 2014 |   | January 31, 2014 |
| Consolidated cash and cash equivalents                        | $ | 620 |  |   | $ | 497 |  |   | $ | 549 |  |
| Consolidated marketable securities                            | 175 |  |   | 605 |  |   | 630 |  |
| Consolidated cash, cash equivalents and marketable securities | $ | 795 |  |   | $ | 1,102 |  |   | $ | 1,179 |  |

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |
|                                                         | Three Months Ended January 31, 2015 |
| (in millions)                                                | ManufacturingOperations |   | Financial Services Operations and Adjustments |   | Condensed Consolidated Statement of Cash Flows |
| Net cash used in operating activities                        | $ | (143 | ) |   | $ | (68 | ) |   | $ | (211 | ) |
| Net cash provided by investing activities                    | 412 |  |   | 45 |  |   | 457 |  |
| Net cash used in financing activities                        | (109 | ) |   | — |  |   | (109 | ) |
| Effect of exchange rate changes on cash and cash equivalents | (17 | ) |   | 3 |  |   | (14 | ) |
| Increase (decrease) in cash and cash equivalents             | 143 |  |   | (20 | ) |   | 123 |  |
| Cash and cash equivalents at beginning of the period         | 440 |  |   | 57 |  |   | 497 |  |
| Cash and cash equivalents at end of the period               | $ | 583 |  |   | $ | 37 |  |   | $ | 620 |  |

----

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

----

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |
|                                                            | Three Months Ended January 31, |
| (in millions)                                                   | 2015 |   | 2014 |
| Loss from continuing operations attributable to NIC, net of tax | $ | (42 | ) |   | $ | (249 | ) |
| Plus:                                                           |   |   |   |
| Depreciation and amortization expense                           | 79 |  |   | 86 |  |
| Manufacturing interest expense(A)                               | 57 |  |   | 65 |  |
| Less:                                                           |   |   |   |
| Income tax benefit (expense)                                    | (7 | ) |   | 12 |  |
| EBITDA                                                          | $ | 101 |  |   | $ | (110 | ) |

|     |                                                                                                                                                                                                                                                                                                                                                     |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Manufacturing interest expense is the net interest expense primarily generated for borrowings that support the manufacturing and corporate operations, adjusted to eliminate intercompany interest expense with our Financial Services segment. The following table reconciles Manufacturing interest expense to the consolidated interest expense: |

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |
|                                       | Three Months Ended January 31, |
| (in millions)                              | 2015 |   | 2014 |
| Interest expense                           | 77 |  |   | 82 |  |
| Less:  Financial services interest expense | 20 |  |   | 17 |  |
| Manufacturing interest expense             | $ | 57 |  |   | $ | 65 |  |

----

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |
|                                      | Three Months Ended January 31, |
| (in millions)                             | 2015 |   | 2014 |
| EBITDA (reconciled above)                 | $ | 101 |  |   | $ | (110 | ) |
| Less significant items of:                |   |   |   |
| Adjustments to pre-existing warranties(A) | (57 | ) |   | 52 |  |
| Restructuring charges                     | 3 |  |   | 3 |  |
| Asset impairment charges(B)               | 7 |  |   | 18 |  |
| Total adjustments                         | (47 | ) |   | 73 |  |
|                                      |   |   |   |
| Adjusted EBITDA                           | $ | 54 |  |   | $ | (37 | ) |

|     |                                                                                                                              |
|-----|------------------------------------------------------------------------------------------------------------------------------|
| (A) | Adjustments to pre-existing warranties reflect changes in our estimate of warranty costs for products sold in prior periods. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B) | In the first quarter of 2015, the Company concluded it had a triggering event related to certain operating leases.  As a result, the Truck segment recorded $7 million of asset impairment charges. In the first quarter of 2014, the Company concluded it had a triggering event related to potential sales of assets requiring assessment of impairment for certain intangible and long-lived assets in the Truck segment.  As a result, the Truck segment recognized asset impairment charges of $18 million. |

----

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

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

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

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

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

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

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

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We do not have sufficient controls designed to validate the completeness and accuracy of underlying data used in the determination of significant estimates and accounting transactions. Specifically, controls were not designed to identify errors in the underlying data which was used to calculate warranty cost estimates and other significant accounting estimates and the accounting effects of significant transactions. This material weakness resulted in the recording of adjustments to the warranty reserve and related expense accounts and there is a reasonable possibility that a material misstatement of our financial statements will not be prevented or detected on a timely basis. |

|         |                                                                                                                                                                                                                                              |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Critical management review controls were enhanced to increase the precision of management's reviews and these reviews were expanded to validate the completeness and accuracy of the reports and data used in the operation of the controls. |

|         |                                                                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Controls were designed and implemented to validate the completeness and accuracy of the inputs and outputs for significant accounting estimates and transactions. |

|         |                                                                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Stronger system interface controls were implemented to verify the complete and accurate flow of data between systems used for the significant accounting estimates and transactions. |

|         |                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------|
| • | We increased our investment in human capital and information technology to improve the controls over completeness and accuracy. |

----

|         |                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We will continue to design, document, and test controls that are intended to validate the completeness and accuracy of the data used for significant accounting estimates and transactions. |

|         |                                                                                                                                                                                                                                                                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Until full remediation is complete, we will continue to perform substantive procedures, including, validating, and in certain cases correcting, the completeness and accuracy of the underlying data used for significant accounting estimates and transactions to ensure that, in all material respects, our financial statements are presented in conformity with U.S. GAAP. |

----

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

|           |
|-----------|
|           |  |  |  |  |
| Exhibit:  |   | Description |   | 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 |

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|        |
|--------|
|        |  |
|   | NAVISTAR INTERNATIONAL CORPORATION |
|   | (Registrant) |
|   | /s/    SAMARA A. STRYCKER         |
|   | Samara A. Strycker |
|   | Senior Vice President and Corporate Controller |
|   | (Principal Accounting Officer) |