SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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|ITEM 2.05|| |
COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES
On January 13, 2021, Navistar International Corporation (the “Company”) approved a plan to sell its facility in Melrose Park, IL (the “Melrose Park Facility”) and cease all operations at the Melrose Park Facility by November 2021. Due to a reduction in the Company’s overall engine manufacturing, the lack of engine manufacturing at the Melrose Park Facility, and the trucking industry’s increasing interest in alternative fuel drivetrains, a property the size of the Melrose Park Facility is not necessary for the remaining engine testing and administrative functions currently performed. In connection with the cessation of operations at the Melrose Park Facility, the Company expects that half of its current workforce of approximately 500 employees at the Melrose Park Facility will be transferred to the Company’s other facilities.
As a result of the Company’s disposition of, and exit from, the Melrose Park Facility, the Company expects to incur pre-tax charges of approximately $85 million, of which, $75 million are expected to be incurred in fiscal year 2021, with the remainder being incurred in fiscal year 2022. The total charges consist of $22 million for employee separation and other pension and post retirement contractual termination benefits, and approximately $31 million for other-related charges. In addition, the Company anticipates approximately $32 million in charges for accelerated depreciation and impairment impacts related to the sale and the cessation of the operations at the Melrose Park Facility. Approximately $40 million of these charges will result in additional future cash outlays.
|ITEM 7.01|| |
REGULATION FD DISCLOSURE
In accordance with General Instruction B.2. to Form 8-K, the following information shall not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
On January 13, 2021, the Company issued a press release announcing its plan to sell the Melrose Park Facility and cease all operations at the Melrose Park Facility by November 2021. The press release is attached hereto as Exhibit 99.1 and is incorporated in this Item 7.01 by reference.
|ITEM 9.01|| |
FINANCIAL STATEMENTS AND EXHIBITS
|99.1||Press release, dated January 13, 2021, “Navistar to Sell Melrose Park, Ill. Campus to Developer”|
|104||Cover Page Interactive Data File (embedded within the Inline XBRL document)|
Information provided and statements contained in this report that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”), Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”), and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements only speak as of the date of this report and Navistar International Corporation assumes no obligation to update the information included in this report. Such forward-looking statements include our expectations as to the portion of the Melrose Park Facility workforce that will be transferred to the Company’s other facilities, our expectations concerning the amount of pre-tax charges that will be incurred and information concerning our possible or assumed future results of operations, including descriptions of our business strategy. These statements often include words such as believe, expect, anticipate, intend, plan,
estimate, or similar expressions. These statements are not guarantees of performance or results and they involve risks, uncertainties, and assumptions. For a further description of these factors, see the risk factors set forth in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the fiscal year ended October 31, 2020. Although we believe that these forward-looking statements are based on reasonable assumptions, there are many factors that could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. All future written and oral forward-looking statements by us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. Except for our ongoing obligations to disclose material information as required by the federal securities laws, we do not have any obligations or intention to release publicly any revisions to any forward-looking statements to reflect events or circumstances in the future or to reflect the occurrence of unanticipated events.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|NAVISTAR INTERNATIONAL CORPORATION|
Walter G. Borst
Executive Vice President and Chief Financial Officer
Dated: January 13, 2021