Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Jul. 31, 2015 | Aug. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | nav | |
Entity Registrant Name | NAVISTAR INTERNATIONAL CORP | |
Entity Central Index Key | 808,450 | |
Current Fiscal Year End Date | --10-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 81,522,206 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Sales and revenues | ||||
Sales of manufactured products, net | $ 2,501 | $ 2,806 | $ 7,544 | $ 7,683 |
Finance revenues | 37 | 38 | 108 | 115 |
Sales and revenues, net | 2,538 | 2,844 | 7,652 | 7,798 |
Costs and expenses | ||||
Costs of products sold | 2,172 | 2,417 | 6,577 | 6,899 |
Restructuring charges | 13 | 16 | 22 | 27 |
Asset impairment charges | 7 | 4 | 15 | 173 |
Selling, general and administrative expenses | 220 | 241 | 704 | 717 |
Engineering and product development costs | 71 | 80 | 226 | 253 |
Interest expense | 75 | 78 | 227 | 234 |
Other income, net | (6) | (11) | (37) | (5) |
Total costs and expenses | 2,552 | 2,825 | 7,734 | 8,298 |
Equity in income of non-consolidated affiliates | 3 | 2 | 6 | 5 |
Income (loss) before income taxes | (11) | 21 | (76) | (495) |
Income tax expense | (12) | (14) | (37) | (25) |
Earnings (loss) from continuing operations | (23) | 7 | (113) | (520) |
Income from discontinued operations, net of tax | 2 | 1 | 2 | 3 |
Net income (loss) | (21) | 8 | (111) | (517) |
Less: Net income attributable to non-controlling interests | 7 | 10 | 23 | 30 |
Net income (loss) attributable to Navistar International Corporation | (28) | (2) | (134) | (547) |
Loss from continuing operations, net of tax | (30) | (3) | (136) | (550) |
Income from discontinued operations, net of tax | $ 2 | $ 1 | $ 2 | $ 3 |
Earnings (loss) per share attributable to Navistar International Corporation: | ||||
Basic: Loss from Continuing Operations (in dollars per share) | $ (0.37) | $ (0.04) | $ (1.67) | $ (6.77) |
Basic: Income (Loss) from Discontinued Operations (in dollars per share) | 0.03 | 0.02 | 0.03 | 0.04 |
Basic (in dollars per share) | (0.34) | (0.02) | (1.64) | (6.73) |
Diluted: Loss from Continuing Operations (in dollars per share) | (0.37) | (0.04) | (1.67) | (6.77) |
Diluted: Income (Loss) from Discontinued Operations (in dollars per share) | 0.03 | 0.02 | 0.03 | 0.04 |
Diluted (in dollars per share) | $ (0.34) | $ (0.02) | $ (1.64) | $ (6.73) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 81.6 | 81.4 | 81.5 | 81.3 |
Diluted (in shares) | 81.6 | 81.4 | 81.5 | 81.3 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss attributable to Navistar International Corporation | $ (28) | $ (2) | $ (134) | $ (547) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (47) | (3) | (133) | (17) |
Defined benefit plans (net of tax of $0, $(3), $(1), $(4), respectively) | 33 | 33 | 98 | 83 |
Total other comprehensive income (loss) | (14) | 30 | (35) | 66 |
Total comprehensive income (loss) attributable to Navistar International Corporation | $ (42) | $ 28 | $ (169) | $ (481) |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Defined benefit plan, tax | $ 0 | $ (3) | $ (1) | $ (4) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jul. 31, 2015 | Oct. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 547 | $ 497 |
Restricted cash and cash equivalents | 200 | 40 |
Marketable securities | 293 | 605 |
Trade and other receivables, net | 430 | 553 |
Finance receivables, net | 1,737 | 1,758 |
Inventories | 1,199 | 1,319 |
Deferred taxes, net | 37 | 55 |
Other current assets | 179 | 186 |
Total current assets | 4,622 | 5,013 |
Restricted cash | 157 | 131 |
Trade and other receivables, net | 14 | 25 |
Finance receivables, net | 213 | 280 |
Investments in non-consolidated affiliates | 71 | 73 |
Property and equipment (net of accumulated depreciation and amortization of $2,534 and $2,535, respectively) | 1,375 | 1,562 |
Goodwill | 38 | 38 |
Intangible assets (net of accumulated amortization of $115 and $109, respectively) | 67 | 90 |
Deferred taxes, net | 126 | 145 |
Other noncurrent assets | 86 | 86 |
Total assets | 6,769 | 7,443 |
Current liabilities | ||
Notes payable and current maturities of long-term debt | 1,090 | 1,295 |
Accounts payable | 1,326 | 1,564 |
Other current liabilities | 1,333 | 1,372 |
Total current liabilities | 3,749 | 4,231 |
Long-term debt | 4,196 | 3,929 |
Postretirement benefits liabilities | 2,749 | 2,862 |
Deferred taxes, net | 14 | 14 |
Other noncurrent liabilities | 870 | 1,025 |
Total liabilities | 11,578 | 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, all at both dates) | 9 | 9 |
Additional paid-in capital | 2,497 | 2,500 |
Accumulated deficit | (4,816) | (4,682) |
Accumulated other comprehensive loss | (2,298) | (2,263) |
Common stock held in treasury, at cost (5.3 and 5.4 shares, respectively) | (212) | (221) |
Total stockholders’ deficit attributable to Navistar International Corporation | (4,817) | (4,654) |
Stockholders’ equity attributable to non-controlling interests | 7 | 34 |
Total stockholders’ deficit | (4,810) | (4,620) |
Total liabilities and stockholders’ deficit | $ 6,769 | $ 7,443 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Jul. 31, 2015 | Oct. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 2,534 | $ 2,535 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 115 | $ 109 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 220 | 220 |
Common stock, shares issued | 86.8 | 86.8 |
Common stock held in treasury, shares | 5.3 | 5.4 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Cash flows from operating activities | ||
Net income (loss) | $ (111) | $ (517) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 165 | 177 |
Depreciation of equipment leased to others | 56 | 79 |
Deferred taxes, including change in valuation allowance | (9) | (4) |
Asset impairment charges | 15 | 173 |
Amortization of debt issuance costs and discount | 28 | 38 |
Stock-based compensation | 8 | 12 |
Provision for doubtful accounts, net of recoveries | (6) | 12 |
Equity in income of non-consolidated affiliates, net of dividends | 2 | 4 |
Write off of Deferred Debt Issuance Cost | 0 | 1 |
Other non-cash operating activities | (28) | (27) |
Changes in other assets and liabilities, exclusive of the effects of businesses disposed | (134) | (292) |
Net cash used in operating activities | (14) | (344) |
Cash flows from investing activities | ||
Purchases of marketable securities | (515) | (1,210) |
Sales of marketable securities | 764 | 1,092 |
Maturities of marketable securities | 63 | 330 |
Net change in restricted cash and cash equivalents | (192) | (30) |
Capital expenditures | (72) | (57) |
Purchases of equipment leased to others | (58) | (157) |
Proceeds from sales of property and equipment | 12 | 40 |
Proceeds from Divestiture of Businesses and Interests in Affiliates | 7 | 6 |
Acquisition of Intangibles | (4) | 0 |
Net cash provided by investing activities | 5 | 14 |
Cash flows from financing activities | ||
Proceeds from issuance of securitized debt | 490 | 82 |
Principal payments on securitized debt | (247) | (101) |
Net change in secured revolving credit facilities | (9) | 92 |
Proceeds from issuance of non-securitized debt | 166 | 603 |
Principal payments on non-securitized debt | (234) | (617) |
Net increase (decrease) in notes and debt outstanding under revolving credit facilities | (41) | 87 |
Principal payments under financing arrangements and capital lease obligations | (2) | (20) |
Debt issuance costs | (10) | (14) |
Proceeds from financed lease obligations | 26 | 44 |
Proceeds from exercise of stock options | 1 | 18 |
Dividends paid by subsidiaries to non-controlling interest | (27) | (40) |
Proceeds from (Payments for) Other Financing Activities | (27) | 0 |
Net cash provided by financing activities | 86 | 134 |
Effect of exchange rate changes on cash and cash equivalents | (27) | (12) |
Increase (decrease) in cash and cash equivalents | 50 | (208) |
Cash and cash equivalents at beginning of the period | 497 | 755 |
Cash and cash equivalents at end of the period | $ 547 | $ 547 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Millions | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] |
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Tax | $ 16 | |||||||
Stockholders' Equity balance at beginning of period at Oct. 31, 2013 | (3,605) | $ 3 | $ 9 | $ 2,477 | $ (4,063) | $ (1,824) | $ (251) | $ 44 |
Net loss attributable to Navistar International Corporation | (547) | (547) | ||||||
Net income (loss) | (517) | |||||||
Total other comprehensive income | 66 | 66 | ||||||
Less: Net income attributable to non-controlling interests | 30 | 30 | ||||||
Transfer from redeemable equity securities upon exercise or expiration of stock options | 2 | 2 | ||||||
Stock-based compensation | 7 | 7 | ||||||
Stock ownership programs | 17 | (9) | 26 | |||||
Adjustments to Additional Paid in Capital, Other | 27 | 27 | ||||||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Tax | (5) | (5) | ||||||
Dividends paid by subsidiaries to non-controlling interest | (40) | (40) | ||||||
Stockholders' Equity balance at end of period at Jul. 31, 2014 | (4,048) | 3 | 9 | 2,499 | (4,610) | (1,758) | (225) | 34 |
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Repurchase, Tax | 3 | |||||||
Stockholders' Equity balance at beginning of period at Oct. 31, 2014 | (4,620) | 3 | 9 | 2,500 | (4,682) | (2,263) | (221) | 34 |
Net loss attributable to Navistar International Corporation | (134) | (134) | ||||||
Net income (loss) | (111) | |||||||
Total other comprehensive income | (35) | (35) | ||||||
Less: Net income attributable to non-controlling interests | 23 | 23 | ||||||
Transfer from redeemable equity securities upon exercise or expiration of stock options | 1 | 1 | ||||||
Stock-based compensation | 9 | 9 | ||||||
Stock ownership programs | 0 | (9) | 9 | |||||
Dividends paid by subsidiaries to non-controlling interest | (27) | (27) | ||||||
Acquire remaining ownership interest from non-controlling interest holder | (27) | (4) | (23) | |||||
Stockholders' Equity balance at end of period at Jul. 31, 2015 | $ (4,810) | $ 3 | $ 9 | $ 2,497 | $ (4,816) | $ (2,298) | $ (212) | $ 7 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jul. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Organization and Description of the Business Navistar International Corporation ("NIC"), incorporated under the laws of the State of Delaware in 1993 , is a holding company whose principal operating entities are Navistar, Inc. and Navistar Financial Corporation ("NFC"). References herein to the "Company," "we," "our," or "us" refer collectively to NIC and its consolidated subsidiaries, including certain variable interest entities ("VIEs") of which we are the primary beneficiary. We operate in four principal industry segments: Truck, Parts, Global Operations (collectively called "Manufacturing operations"), and Financial Services, which consists of NFC and our foreign finance operations (collectively called "Financial Services operations"). These segments are discussed in Note 12, Segment Reporting . Our fiscal year ends on October 31. As such, all references to 2015 and 2014 contained within this Quarterly Report on Form 10-Q relate to the fiscal year, unless otherwise indicated. Basis of Presentation and Consolidation The accompanying unaudited consolidated financial statements include the assets, liabilities, and results of operations of our Manufacturing operations, which include majority-owned dealers ("Dealcors"), and our Financial Services operations, including VIEs of which we are the primary beneficiary. The effects of transactions among consolidated entities have been eliminated to arrive at the consolidated amounts. Certain reclassifications were made to prior period amounts to conform to the 2015 presentation, which relate to the realignment of our reporting segments that became effective during the first quarter of 2015. For more information, see Note 12, Segment Reporting . In addition, reclassifications were made to present the net change in secured revolving credit facilities as a separate line rather than within proceeds from issuance of securitized debt and principal payments on securitized debt on the Condensed Statements of Cash Flows. This reclassification did not have an impact on our Condensed Statements of Cash Flows . We prepared the accompanying unaudited consolidated financial statements in accordance with United States ("U.S.") generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and notes required by U.S. GAAP for comprehensive annual financial statements. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting policies described in our Annual Report on Form 10-K for the year ended October 31, 2014 , which should be read in conjunction with the disclosures therein. In our opinion, these interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial condition, results of operations, and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of annual operating results. Variable Interest Entities We have an interest in several VIEs, primarily joint ventures, established to manufacture or distribute products and enhance our operational capabilities. We have determined for certain of our VIEs that we are the primary beneficiary because we have the power to direct the activities of the VIE that most significantly impact its economic performance and we have the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE. Accordingly, we include in our consolidated financial statements the assets and liabilities and results of operations of those entities, even though we may not own a majority voting interest. The liabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets; rather they represent claims against the specific assets of these VIEs. Assets of these entities are not readily available to satisfy claims against our general assets. We are the primary beneficiary of our Blue Diamond Parts ("BDP") joint venture with Ford. As a result, our Consolidated Balance Sheets include assets of $56 million and $57 million and liabilities of $13 million and $5 million as of July 31, 2015 and October 31, 2014 , respectively, including $15 million and $11 million of cash and cash equivalents, at the respective dates, which are not readily available to satisfy claims against our general assets. The creditors of BDP do not have recourse to our general credit. On May 29, 2015, we acquired Ford's remaining 25% ownership in our Blue Diamond Truck ("BDT") joint venture for $27 million . The acquisition of Ford's remaining ownership of the BDT joint venture did not have a material impact on our consolidated net loss for the three months ended July 31, 2015. Prior to the acquisition of Ford's remaining ownership, we were the primary beneficiary of our BDT joint venture with Ford. As a result, our Consolidated Balance Sheets at October 31, 2014 include assets of $240 million and liabilities of $245 million , including $66 million of cash and cash equivalents, which were not readily available to satisfy claims against our general assets. Our Financial Services segment consolidates several VIEs. As a result, our Consolidated Balance Sheets include secured assets of $1.3 billion and $1.1 billion as of July 31, 2015 and October 31, 2014 , respectively, and liabilities of $1.1 billion and $896 million as of July 31, 2015 and October 31, 2014 , respectively, all of which are involved in securitizations that are treated as asset-backed debt. In addition, our Consolidated Balance Sheets include secured assets of $207 million and $156 million and corresponding liabilities of $85 million and $54 million as of July 31, 2015 and October 31, 2014 , respectively, which are related to other secured transactions that do not qualify for sale accounting treatment, and therefore, are treated as borrowings secured by operating and finance leases. Investors that hold securitization debt have a priority claim on the cash flows generated by their respective securitized assets to the extent that the related VIEs are required to make principal and interest payments. Investors in securitizations of these entities have no recourse to our general credit. We also have an interest in other VIEs, which we do not consolidate because we are not the primary beneficiary. Our financial support and maximum loss exposure relating to these non-consolidated VIEs are not material to our financial condition, results of operations, or cash flows. We use the equity method to account for our investments in entities that we do not control under the voting interest or variable interest models, but where we have the ability to exercise significant influence over operating and financial policies. Equity in income of non-consolidated affiliates includes our share of the net income of these entities. Product Warranty Liability The following table presents accrued product warranty and deferred warranty revenue activity: Nine Months Ended July 31, (in millions) 2015 2014 Balance at beginning of period $ 1,197 $ 1,349 Costs accrued and revenues deferred 177 235 Currency translation adjustment (7 ) (2 ) Adjustments to pre-existing warranties (A) (38 ) 65 Payments and revenues recognized (313 ) (391 ) Balance at end of period 1,016 1,256 Less: Current portion 466 578 Noncurrent accrued product warranty and deferred warranty revenue $ 550 $ 678 _________________________ (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. Adjustments to pre-existing warranties in the third quarter and nine months ended July 31, 2015 include a benefit of $2 million related to our Workhorse Custom Chassis operations, which are reported in Discontinued Operations in the Consolidated Statements of Operations. In the first quarter of 2015, we recognized a benefit for adjustments to pre-existing warranties of $57 million or a benefit of $0.70 per diluted share. In the first quarter of 2014, we recorded adjustments for changes in estimates of $52 million or charges of $0.64 per diluted share. In the second quarter of 2014, we recorded adjustments for changes in estimates of $42 million , or charges of $0.52 per diluted share. In the third quarter of 2014, we recognized a benefit for adjustments to pre-existing warranties of $29 million , or a benefit of $0.36 per diluted share. The impact of income taxes on the 2015 and 2014 adjustments are not material due to our deferred tax valuation allowances on our U.S. deferred tax assets. Extended Warranty Programs The amount of deferred revenue related to extended warranty programs was $419 million and $437 million at July 31, 2015 and October 31, 2014 , respectively. Revenue recognized under our extended warranty programs was $40 million and $115 million , in the three and nine months ended July 31, 2015 , respectively, and $36 million and $96 million for the three and nine months ended July 31, 2014 , respectively. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the periods presented. Significant estimates and assumptions are used for, but are not limited to, pension and other postretirement benefits, allowance for doubtful accounts, income tax contingency accruals and valuation allowances, product warranty accruals, asbestos and other product liability accruals, asset impairment charges, and litigation-related accruals. Actual results could differ from our estimates. Concentration Risks Our financial condition, results of operations, and cash flows are subject to concentration risks related to concentrations of our union employees. As of July 31, 2015 , approximately 6,000 , or 73% , of our hourly workers and approximately 200 , or 3% , of our salaried workers are represented by labor unions and are covered by collective bargaining agreements. Our future operations may be affected by changes in governmental procurement policies, budget considerations, changing national defense requirements, and global, political, regulatory and economic developments in the U.S. and certain foreign countries (primarily Canada, Mexico, and Brazil). Goodwill and Indefinite-Lived Intangible Assets Goodwill represents the excess of the cost of an acquired business over the amounts assigned to the net assets. Goodwill is not amortized but is tested for impairment at a reporting unit level on an annual basis or more frequently, if circumstances change or an event occurs that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Qualitative factors may be assessed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If the qualitative assessment indicates that the carrying amount is more likely than not higher than the fair value, goodwill is tested for impairment based on a two-step test. The first step compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired, thus the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test shall be performed to measure the amount of impairment loss, if any. The second step compares the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to that excess. Significant judgment is applied when goodwill is assessed for impairment. This judgment includes developing cash flow projections, selecting appropriate discount rates, identifying relevant market comparables, incorporating general economic and market conditions, and selecting an appropriate control premium. The income approach is based on discounted cash flows which are derived from internal forecasts and economic expectations for each respective reporting unit. An intangible asset determined to have an indefinite useful life is not amortized until its useful life is determined to no longer be indefinite. Indefinite-lived intangible assets are evaluated each reporting period to determine whether events and circumstances continue to support an indefinite useful life. Indefinite-lived intangible assets are tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test consists of a comparison of the fair value of the indefinite-lived intangible asset with its carrying amount. If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Significant judgment is applied when evaluating if an intangible asset has a finite useful life. In addition, for indefinite-lived intangible assets, significant judgment is applied in testing for impairment. This judgment includes developing cash flow projections, selecting appropriate discount rates, identifying relevant market comparables, and incorporating general economic and market conditions. During the third quarter of 2015, the economic downturn in Brazil resulted in the continued decline in actual and forecasted results for the Brazilian engine reporting unit with an indefinite-lived intangible asset, trademark, of $24 million . As a result, we performed an impairment analysis in the third quarter of 2015 utilizing the income approach, based on discounted cash flows, which are derived from internal forecasts and economic expectations. It was determined that the carrying value of the trademark exceeded its fair value. As a result, we determined that the trademark was impaired and recognized an impairment charge of $3 million . The non-cash impairment charges were included in Asset impairment charges in the Company's Consolidated Statements of Operations. The Brazilian engine reporting unit is included in the Global Operations segment. During the second quarter of 2014, the economic downturn in Brazil resulted in the continued decline in actual and forecasted results for the Brazilian engine reporting unit with goodwill of $142 million and an indefinite-lived intangible asset, trademark, of $43 million . As a result, we performed an impairment analysis in the second quarter of 2014 utilizing the income approach, based on discounted cash flows, which are derived from internal forecasts and economic expectations. It was determined that the carrying value of the Brazilian engine reporting unit, including goodwill, exceeded its fair value. As a result we compared the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. A decrease in the enterprise value of the reporting unit coupled with appreciation in the value of certain tangible assets, which are not recognized for accounting purposes, resulted in the determination that the entire $142 million of goodwill was impaired. In addition, we determined that the related trademark was impaired and recognized an impairment charge of $7 million . The non-cash impairment charges were included in Asset impairment charges in the Company's Consolidated Statements of Operations. The Brazilian engine reporting unit is included in the Global Operations segment. Recently Adopted Accounting Standards In the nine months ended July 31, 2015 , the Company has not adopted any new accounting guidance that has had a material impact on our consolidated financial statements. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. On July 9, 2015, the FASB deferred the effective date of this update to fiscal years beginning after December 15, 2017, with early adoption permitted on the original effective date of fiscal years beginning after December 15, 2016. Our effective date is November 1, 2018. We are currently evaluating the impact and method of adoption of this ASU on our consolidated financial statements. |
Restructuring and Impairments
Restructuring and Impairments | 9 Months Ended |
Jul. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructurings and Impairments | Restructurings and Impairments Restructuring charges are recorded based on restructuring plans that have been committed to by management and are, in part, based upon management's best estimates of future events. Changes to the estimates may require future adjustments to the restructuring liabilities. Restructuring Liability The following tables summarize the activity in the restructuring liability, which includes amounts related to discontinued operations and excludes pension and other postretirement contractual termination benefits: (in millions) Balance at October 31, 2014 Additions Payments Adjustments Balance at July 31, 2015 Employee termination charges $ 8 $ 17 $ (7 ) $ (2 ) $ 16 Lease vacancy 11 — (6 ) — 5 Other 1 2 (2 ) — 1 Restructuring liability $ 20 $ 19 $ (15 ) $ (2 ) $ 22 (in millions) Balance at Additions Payments Adjustments Balance at July 31, 2014 Employee termination charges $ 15 $ 12 $ (12 ) $ (2 ) $ 13 Employee relocation costs — 1 (1 ) — — Lease vacancy 18 1 (6 ) — 13 Other 1 — (2 ) — (1 ) Restructuring liability $ 34 $ 14 $ (21 ) $ (2 ) $ 25 North American Manufacturing Restructuring Activities We continue to focus on our core North American Truck and Parts businesses. We continue to evaluate our portfolio of assets, with the purpose of closing or divesting non-core/non-strategic businesses, and identifying opportunities to restructure our business and rationalize our Manufacturing operations in an effort to optimize our cost structure. The Company is currently evaluating its portfolio of assets to validate their strategic and financial fit. To allow us to increase our focus on our North America core businesses, we are evaluating product lines, businesses, and engineering programs that fall outside of our core businesses. We are using a Return-On-Invested-Capital ("ROIC") methodology, combined with an assessment of the strategic fit to our core businesses, to identify areas that are not performing to our expectations. For those areas, we are evaluating whether to fix, divest, or close. These actions could result in additional restructuring and other related charges in the future, including but not limited to: (i) impairments, (ii) costs for employee and contractor termination and other related benefits, and (iii) charges for pension and other postretirement contractual benefits and curtailments. These charges could be significant. Chatham restructuring activities In the third quarter of 2011, the Company committed to close its Chatham, Ontario heavy truck plant, which had been idled since June 2009. Potential additional charges in future periods could range from $0 million to $60 million , primarily related to pension, postretirement costs and termination benefits, which are subject to employee negotiation, acceptance rates and the resolution of disputes related thereto. Based on a ruling received from the Financial Services Tribunal in Ontario, Canada, in the third quarter of 2014, the Company recognized additional charges of $14 million related to the 2011 closure of its Chatham, Ontario plant. The Company appealed this ruling, but it was upheld in a July 3, 2015 decision issued by the Divisional Court of Ontario. On July 23, 2015, the Company filed a notice of motion for leave to appeal to the Court of Appeal for Ontario. The appeal was perfected on August 25, 2015 through an additional filing. See Note 7, Postretirement benefits for further discussion. Foundry Facilities In December 2014, we announced the closure of our Indianapolis, Indiana foundry facility and on June 30, 2015, we closed our Indianapolis, Indiana foundry. In addition, on April 30, 2015, we sold our Waukesha, Wisconsin foundry operations. As a result of these actions, the Truck segment recognized charges of $3 million and $28 million in the third quarter and first nine months of 2015, respectively, for the acceleration of depreciation of certain assets related to the foundry facilities. These charges are reported within Costs of products sold in the Company's Consolidated Statements of Operations. Cost-Reductions and Other Strategic Initiatives From time to time, we have announced, and we may continue to announce, actions to control spending across the Company with targeted reductions of certain costs. We are focused on continued reductions in discretionary spending, including reductions resulting from efficiencies, and prioritizing or eliminating certain programs or projects. In the third quarter of 2015, the Company initiated new cost-reduction actions, including a reduction-in-force in the U.S. and Brazil. As a result of these actions, the Company recognized restructuring charges of $13 million in personnel costs for employee termination and related benefits, which will be paid throughout 2015 and 2016. In the second quarter of 2014, the Company initiated new cost-reduction actions, including an enterprise-wide reduction-in-force. As a result of these actions, the Company recognized restructuring charges of $8 million in personnel costs for employee termination and related benefits, the majority of which was paid during 2014. The Company expects the remaining restructuring charges will be paid throughout 2015. Asset Impairments The following table reconciles our impairment charges in our Consolidated Statements of Operations Three Months Ended July 31, Nine Months Ended July 31, (in millions) 2015 2014 2015 2014 Goodwill impairment charge $ — $ — $ — $ 142 Intangible asset impairment charge 3 — 3 7 Other asset impairment charges related to continuing operations 4 4 12 24 Total asset impairment charges $ 7 $ 4 $ 15 $ 173 In the third quarter of 2015, the Company recognized impairment charges of $7 million , the majority of which was for certain long-lived assets in our Truck segment and certain intangible assets of our Brazilian engine reporting unit. As a result of the economic downturn in Brazil causing declines in actual and forecasted results, we tested the indefinite-lived intangible asset of our Brazilian engine reporting unit for potential impairment. As a result, we determined that $3 million of trademark asset carrying value was impaired. For more information, see Note 1, Summary of Significant Accounting Policies. In addition, during the third quarter of 2015, the Company concluded it had a triggering event related to certain long-lived assets in the Truck segment. As a result, certain long-lived assets were determined to be impaired, resulting in a charge of $3 million . These charges are recognized in Asset impairment charges in the Company's Consolidated Statements of Operations. 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, which are recognized in Asset impairment charges in the Company's Consolidated Statements of Operations . In the second quarter of 2014, we recognized a total non-cash charge of $149 million for the impairment of certain intangible assets of our Brazilian engine reporting unit. As a result of the economic downturn in Brazil causing declines in actual and forecasted results, we tested the goodwill and indefinite-lived intangible asset of our Brazilian engine reporting unit for potential impairment. As a result, we determined that the entire $142 million balance of goodwill and $7 million of trademarks were impaired. For more information, see Note 1, Summary of Significant Accounting Policies. 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, certain amortizing intangible assets and long-lived assets were determined to be fully impaired, resulting in an impairment charge of $19 million that was recognized in the nine months ended July 31, 2014 in Asset impairment charges in the Company's Consolidated Statements of Operations . |
Finance Receivables
Finance Receivables | 9 Months Ended |
Jul. 31, 2015 | |
Receivables [Abstract] | |
Finance Receivables | Finance Receivables Finance receivables are receivables of our Financial Services operations. Finance receivables generally consist of wholesale notes and accounts, as well as retail notes, finance leases and accounts. Total finance receivables reported on the Consolidated Balance Sheets are net of an allowance for doubtful accounts. Total assets of our Financial Services operations net of intercompany balances are $2.7 billion and $2.6 billion as of July 31, 2015 and October 31, 2014 , respectively. Included in total assets of our Financial Services operations are finance receivables of $2.0 billion as of July 31, 2015 and October 31, 2014 . We have two portfolio segments of finance receivables based on the type of financing inherent to each portfolio. The retail portfolio segment represents loans or leases to end-users for the purchase or lease of vehicles. The wholesale portfolio segment represents loans to dealers to finance their inventory. Our Finance receivables, net consist of the following: (in millions) July 31, 2015 October 31, 2014 Retail portfolio $ 606 $ 726 Wholesale portfolio 1,372 1,339 Total finance receivables 1,978 2,065 Less: Allowance for doubtful accounts 28 27 Total finance receivables, net 1,950 2,038 Less: Current portion, net (A) 1,737 1,758 Noncurrent portion, net $ 213 $ 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. Securitizations Our Financial Services operations transfers wholesale notes, retail accounts receivable, retail notes, finance leases, and operating leases through special purpose entities ("SPEs"), which generally are only permitted to purchase these assets, issue asset-backed securities, and make payments on the securities. In addition to servicing receivables, our continued involvement in the SPEs may include an economic interest in the transferred receivables and, in some cases, managing exposure to interest rates using interest rate swaps and interest rate caps. There were no transfers of finance receivables that qualified for sale accounting treatment as of July 31, 2015 and October 31, 2014 , and as a result, the transferred finance receivables are included in our Consolidated Balance Sheets and the related interest earned is included in Finance revenues . We transfer eligible finance receivables into retail note owner trusts or wholesale note owner trusts in order to issue asset-backed securities. These trusts are VIEs of which we are determined to be the primary beneficiary and, therefore, the assets and liabilities of the trusts are included in our Consolidated Balance Sheets . The outstanding balance of finance receivables transferred into these VIEs was $1.0 billion and $996 million as of July 31, 2015 and October 31, 2014 , respectively. Other finance receivables related to secured transactions that do not qualify for sale accounting treatment were $129 million and $93 million as of July 31, 2015 and October 31, 2014 , respectively. For more information on assets and liabilities of consolidated VIEs and other securitizations accounted for as secured borrowings by our Financial Services segment, see Note 1, Summary of Significant Accounting Policies. Finance Revenues The following table presents the components of our Finance revenues : Three Months Ended July 31, Nine Months Ended July 31, (in millions) 2015 2014 2015 2014 Retail notes and finance leases revenue $ 12 $ 16 $ 37 $ 49 Wholesale notes interest 27 22 75 59 Operating lease revenue 16 15 46 44 Retail and wholesale accounts interest 8 7 25 20 Gross finance revenues 63 60 183 172 Less: Intercompany revenues (26 ) (22 ) (75 ) (57 ) Finance revenues $ 37 $ 38 $ 108 $ 115 |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 9 Months Ended |
Jul. 31, 2015 | |
Allowance for Doubtful Accounts [Abstract] | |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Our two finance receivables portfolio segments, retail and wholesale, each consist of one class of receivable based on: (i) initial measurement attributes of the receivables, and (ii) the assessment and monitoring of risk and performance of the receivables. For more information, see Note 3, Finance Receivables . The following tables present the activity related to our allowance for doubtful accounts for our retail portfolio segment, wholesale portfolio segment, and trade and other receivables: Three Months Ended July 31, 2015 Three Months Ended July 31, 2014 (in millions) Retail Wholesale Trade and Total Retail Wholesale Trade and Total Allowance for doubtful accounts, at beginning of period $ 25 $ 3 $ 30 $ 58 $ 22 $ 2 $ 38 $ 62 Provision for doubtful accounts, net of recoveries 2 — — 2 3 — — 3 Charge-off of accounts (A) — — (1 ) (1 ) (2 ) — (3 ) (5 ) Other (B) (2 ) — (3 ) (5 ) 1 — (1 ) — Allowance for doubtful accounts, at end of period $ 25 $ 3 $ 26 $ 54 $ 24 $ 2 $ 34 $ 60 Nine Months Ended July 31, 2015 Nine Months Ended July 31, 2014 (in millions) Retail Wholesale Trade and Total Retail Wholesale Trade and Total Allowance for doubtful accounts, at beginning of period $ 24 $ 3 $ 38 $ 65 $ 21 $ 2 $ 37 $ 60 Provision for doubtful accounts, net of recoveries 7 — — 7 10 — 3 13 Charge-off of accounts (A) (1 ) — (4 ) (5 ) (7 ) — (5 ) (12 ) Other (B) (5 ) — (8 ) (13 ) — — (1 ) (1 ) Allowance for doubtful accounts, at end of period $ 25 $ 3 $ 26 $ 54 $ 24 $ 2 $ 34 $ 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 , for the three and nine months ended July 31, 2015 , as well as for the three and nine months ended July 31, 2014 . (B) Amounts include currency translation. The accrual of interest income is discontinued on certain impaired finance receivables. Impaired finance receivables include accounts with specific loss reserves and certain accounts that are on non-accrual status. In certain cases, we continue to collect payments on our impaired finance receivables. The following table presents information regarding impaired finance receivables: July 31, 2015 October 31, 2014 (in millions) Retail Wholesale Total Retail Wholesale Total Impaired finance receivables with specific loss reserves $ 21 $ — $ 21 $ 20 $ — $ 20 Impaired finance receivables without specific loss reserves — — — 1 — 1 Specific loss reserves on impaired finance receivables 10 — 10 6 — 6 Finance receivables on non-accrual status 21 — 21 21 — 21 For the impaired finance receivables in the retail portfolio as of July 31, 2015 and 2014 , the average balances of those receivables were $21 million and $15 million during the nine months ended July 31, 2015 and 2014 , respectively. The Company uses the aging of its receivables as well as other inputs when assessing credit quality. The following table presents the aging analysis for finance receivables: July 31, 2015 October 31, 2014 (in millions) Retail Wholesale Total Retail Wholesale Total Current, and up to 30 days past due $ 531 $ 1,369 $ 1,900 $ 643 $ 1,333 $ 1,976 30-90 days past due 58 2 60 64 2 66 Over 90 days past due 17 1 18 19 4 23 Total finance receivables $ 606 $ 1,372 $ 1,978 $ 726 $ 1,339 $ 2,065 |
Inventories
Inventories | 9 Months Ended |
Jul. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The following table presents the components of Inventories : (in millions) July 31, October 31, Finished products $ 772 $ 880 Work in process 66 50 Raw materials 361 389 Total inventories $ 1,199 $ 1,319 |
Debt
Debt | 9 Months Ended |
Jul. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt (in millions) July 31, 2015 October 31, 2014 Manufacturing operations Senior Secured Term Loan Credit Facility, as amended, due 2017, net of unamortized discount of $2 and $3, respectively $ 695 $ 694 8.25% Senior Notes, due 2021, net of unamortized discount of $18 and $20, respectively 1,182 1,180 4.50% Senior Subordinated Convertible Notes, due 2018, net of unamortized discount of $16 and $19, respectively 184 181 4.75% Senior Subordinated Convertible Notes, due 2019, net of unamortized discount of $34 and $40, respectively 377 371 Debt of majority-owned dealerships 26 30 Financing arrangements and capital lease obligations 48 54 Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040 225 225 Promissory Note 3 10 Financed lease obligations 129 184 Other 19 29 Total Manufacturing operations debt 2,888 2,958 Less: Current portion 100 100 Net long-term Manufacturing operations debt $ 2,788 $ 2,858 (in millions) July 31, 2015 October 31, 2014 Financial Services operations Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2018 $ 1,135 $ 914 Bank revolvers, at fixed and variable rates, due dates from 2015 through 2020 1,147 1,242 Commercial paper, at variable rates, program matures in 2017 90 74 Borrowings secured by operating and finance leases, at various rates, due serially through 2018 26 36 Total Financial Services operations debt 2,398 2,266 Less: Current portion 990 1,195 Net long-term Financial Services operations debt $ 1,408 $ 1,071 Manufacturing Operations 3.00% Senior Subordinated Convertible Notes In October 2009, we completed the sale of $570 million aggregate principal amount of 3.00% senior subordinated convertible notes ("2014 Convertible Notes"), including over-allotment options. The 2014 Convertible Notes were senior subordinated unsecured obligations of the Company. In connection with the sale of the 2014 Convertible Notes, the Company purchased call options for $125 million . The call options covered 11,337,870 shares of common stock, subject to adjustments, at an exercise price of $50.27 . The call options were intended to minimize share dilution associated with the 2014 Convertible Notes. In addition, in connection with the sale of the 2014 Convertible Notes, the Company also entered into separate warrant transactions whereby, the Company sold warrants for $87 million to sell in the aggregate 11,337,870 shares of common stock, subject to adjustments, at an exercise price of $60.14 per share of common stock. During the second quarter of 2014, the Company used proceeds from the private issuance of $411 million of 4.75% senior subordinated convertible notes due April 2019 ("2019 Convertible Notes"), as well as cash on-hand, to repurchase $404 million of notional amount of the 2014 Convertible Notes. The Company recorded a charge of $11 million related to the repurchase which was recognized in Other income, net. In conjunction with the repurchases of the 2014 Convertible Notes, call options representing 8,026,456 shares expired or were unwound by the Company and warrants representing 6,523,319 shares were unwound by the Company. On October 15, 2014, upon maturity, the 2014 Convertible Notes were paid in full and the purchased call options expired worthless. During the first quarter of 2015, warrants representing 1,939,376 shares were unwound by the Company, and the remaining 2,875,175 warrants expired worthless on April 10, 2015. Senior Secured Term Loan Credit Facility In August 2012, NIC and Navistar, Inc. signed a definitive credit agreement relating to a senior secured, term loan credit facility in an aggregate principal amount of $1 billion (the "Term Loan Credit Facility") and borrowed an aggregate principal amount of $1 billion under the Term Loan Credit Facility. The Term Loan Credit Facility required quarterly principal amortization payments of 0.25% of the aggregate principal amount, with the balance due at maturity. The Term Loan Credit Facility is secured by a first priority security interest in certain assets of NIC, Navistar, Inc., and fourteen of its direct and indirect subsidiaries, and contains customary provisions for financings of this type, including, without limitation, representations and warranties, affirmative and negative covenants and events of default. Generally, if an event of default occurs and is not cured within any specified grace period, the administrative agent, at the request of (or with the consent of) the lenders holding not less than a majority in principal amount of the outstanding term loans, may declare the term loan to be due and payable immediately. In April 2013, the Term Loan Credit Facility was amended (the "Amended Term Loan Credit Facility"), to: (i) change the maturity date of all borrowings under the Term Loan Credit Facility to August 17, 2017, (ii) lower the interest on all borrowings under the Term Loan Credit Facility to a rate equal to a base rate plus a spread of 3.50% , or a Eurodollar rate plus a spread of 4.50% with a London Interbank Offered Rate ("LIBOR") floor that was reduced to 1.25% , (iii) provide additional operating flexibility, and (iv) remove certain pledged assets as collateral from the Term Loan Credit Facility. In August 2015, the Amended Term Loan Credit Facility was refinanced with a new Senior Secured Term Loan Credit Facility (“Senior Secured Term Loan Credit Facility”), for $1.04 billion . Under the Senior Secured Term Loan Credit Facility: (i) the maturity date was extended to August 7, 2020, (ii) interest rate margins were increased to 5.50% for Eurodollar rate loans and 4.50% for base rate loans, (iii) the Eurodollar rate “floor” was reduced to 1.00% , (iv) the permitted receivables financing basket was increased from $25 million to $50 million , (v) certain prepayments of the Amended Term Loan Credit Facility made prior to August 7, 2017 will be made subject to a call premium of 1.00% , (vi) certain definitional provisions, including those related to asset dispositions were modified, and (vii) quarterly principal amortization payments of 0.25% of the aggregate principal amount are required, with the balance due at maturity. As a consequence of the Senior Secured Term Loan Credit Facility refinancing, the maturity date of Navistar, Inc.’s Amended and Restated Asset-Based Credit Facility (as defined below) was extended from May 18, 2017 to May 18, 2018. Amended and Restated Asset-Based Credit Facility In August 2012, Navistar, Inc. entered into an amended and restated asset-based credit agreement in an aggregate principal amount of $175 million (the "Amended and Restated Asset-Based Credit Facility"). The borrowing base of the facility was secured by a first priority security interest in Navistar, Inc.'s aftermarket parts inventory that is stored at certain parts distribution centers, storage facilities and third-party processor or logistics provider locations. In April 2013, the Amended and Restated Asset-Based Credit Facility was amended to include used truck inventory in the borrowing base. Also in April 2013, the maturity date of the Amended and Restated Asset-Based Credit Facility automatically extended to May 18, 2017, as a result of a modification to the maturity date of our Amended Term Loan Credit Facility. The Amended and Restated Asset-Based Credit Facility contains customary provisions for financings of this type, including, without limitation, representations and warranties, affirmative and negative covenants and events of default. All borrowings under the Amended and Restated Asset-Based Credit Facility accrue interest at a rate equal to a base rate or an adjusted LIBOR rate plus a spread. The spread, which will be based on an availability-based measure, ranges from 175 basis points to 225 basis points for Base Rate borrowings and 275 basis points to 325 basis points for LIBOR borrowings. The initial LIBOR spread is 275 basis points. On July 3, 2014, the Amended and Restated Asset-Based Credit Facility was further amended to remove used truck inventory from the borrowing base. Additionally, the calculation of availability was revised to include cash collateral posted to support outstanding designated letters of credit, subject to a $40 million cap, and the cash management provisions were amended to reflect intercreditor arrangements with respect to a financing with Navistar Financial Corporation secured by a first priority lien on the used truck inventory. In connection with the removal of used truck inventory from the borrowing base, certain adjustments were made to the covenants to reflect that such assets were no longer included in the borrowing base. The amendment also provides for a 1.00% reduction in the amount of the participation fee with respect to designated letters of credit in the event that all outstanding letters of credit are in excess of $50 million , such reduction applying only to the portion of designated letters of credit in excess of $50 million for all outstanding letters of credit. On July 15, 2015, the Amended and Restated Asset-Based Credit Facility was further amended to: (i) permit the incurrence of up to $352.5 million of additional term loans and the issuance of up to $200 million of additional senior notes, (ii) increase the permitted receivables financing from $25 million to $50 million , and (iii) modify the cash dominion trigger and certain of the definitional provisions. As a consequence of the Senior Secured Term Loan Credit Facility, the maturity date of the Amended and Restated Asset-Based Credit Facility was extended by one year to May 18, 2018. The amendment had no impact on the aggregate commitment level under the Amended and Restated Asset-Based Credit Facility, which remains at $175 million . As of July 31, 2015 and October 31, 2014, we had no borrowings under the Amended and Restated Asset-Based Credit Facility. The availability under our $175 million Amended and Restated Asset-Based Credit Facility is subject to a $35 million liquidity block, less outstanding standby letters of credit issued under this facility, and is impacted by inventory levels at certain aftermarket parts inventory locations. Financial Services Operations Asset-backed Debt In July 2015, NFC issued $250 million of two-year investor notes secured by assets of the wholesale note owner trust, of which $240 million were sold to initial purchasers. Proceeds will be used, in part, to replace the $250 million of investor notes that mature in September 2015. In January 2015, the maturity date of the $500 million variable funding notes ("VFN") facility was extended from March 2015 to January 2016. In November 2014, NFC completed the sale of $250 million of two-year investor notes secured by assets of the wholesale note owner trust. Proceeds were used, in part, to replace the $200 million of investor notes that matured in January 2015. Also in November 2014, the wholesale note owner trust was amended to reduce customer concentration restrictions. Bank Revolvers and Commercial Paper In January 2015, NFC paid $125 million in cash dividends to Navistar, Inc. Dividends and certain affiliate loans are subject to the restricted payment covenants set forth in the NFC bank credit facility. Effective December 2014, our Mexican financial services operation entered into a new two-year commercial paper program for up to P $1.8 billion (the equivalent of approximately US $111 million at July 31, 2015 ). This program replaces the existing program that was to mature in August 2015. |
Postretirement Benefits
Postretirement Benefits | 9 Months Ended |
Jul. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Postretirement Benefits | Postretirement Benefits Defined Benefit Plans We provide postretirement benefits to a substantial portion of our employees and retirees. Costs associated with postretirement benefits include pension and postretirement health care expenses for employees, retirees, surviving spouses and dependents. Generally, the pension plans are non-contributory. Our policy is to fund the pension plans in accordance with applicable U.S. and Canadian government regulations and to make additional contributions from time to time. For the three and nine months ended July 31, 2015 , we contributed $11 million and $73 million , respectively, and for the three and nine months ended July 31, 2014 , we contributed $33 million and $98 million , respectively, to our pension plans to meet regulatory funding requirements. In August 2014, the Highway and Transportation Funding Act of 2014 ("HATFA"), including extension of pension funding interest rate relief, was signed into law. As a result, we lowered our future funding expectations in 2014. We currently anticipate additional contributions of $40 million to our pension plans during the remainder of 2015. We primarily fund other post-employment benefit ("OPEB") obligations, such as retiree medical, in accordance with a 1993 Settlement Agreement (the "1993 Settlement Agreement"), which requires us to fund a portion of the plans' annual service cost to a retiree benefit trust (the "Base Trust"). The 1993 Settlement Agreement resolved a class action lawsuit originally filed in 1992 regarding the restructuring of the Company's then applicable retiree health care and life insurance benefits. Contributions for the nine months ended July 31, 2015 and 2014 , as well as anticipated contributions for the remainder of 2015 , are not material. Components of Net Periodic Benefit Expense Net postretirement benefits expense included in our Consolidated Statements of Operations is comprised of the following: Three Months Ended July 31, Nine Months Ended July 31, Pension Benefits Health and Life Pension Benefits Health and Life (in millions) 2015 2014 2015 2014 2015 2014 2015 2014 Service cost for benefits earned during the period $ 3 $ 3 $ 2 $ 2 $ 9 $ 9 $ 5 $ 4 Interest on obligation 35 39 17 17 106 118 53 51 Amortization of cumulative loss 25 23 10 4 74 70 29 12 Amortization of prior service benefit — — (1 ) (1 ) — — (3 ) (3 ) Contractual termination benefits — 14 — — (1 ) 14 (1 ) — Premiums on pension insurance 3 — — — 8 — — — Expected return on assets (48 ) (48 ) (7 ) (8 ) (145 ) (144 ) (22 ) (24 ) Net postretirement benefits expense $ 18 $ 31 $ 21 $ 14 $ 51 $ 67 $ 61 $ 40 Based on a ruling received from the Financial Services Tribunal in Ontario, Canada, in the third quarter of 2014, the Company recognized contractual termination charges of $14 million related to the 2011 closure of its Chatham, Ontario plant. The Company appealed this ruling, but it was upheld in a July 3, 2015 decision issued by the Divisional Court of Ontario. On July 23, 2015, the Company filed a notice of motion for leave to appeal to the Court of Appeal for Ontario. The appeal was perfected on August 25, 2015 through an additional filing. These charges were in addition to the previous curtailment and contractual termination charges recognized in the third quarter of 2011. There was also a remeasurement of the pension plan for hourly employees during the third quarter of 2014. The discount rate used to measure the pension benefit obligation was 3.8% at remeasurement, compared to 4.1% at October 31, 2013. As a result of the plan remeasurement, net actuarial gains of $10 million were recognized as a component of Accumulated other comprehensive income (loss) in the third quarter of 2014. See Note 2, Restructurings and Impairments for further discussion. Defined Contribution Plans and Other Contractual Arrangements Our defined contribution plans cover a substantial portion of domestic salaried employees and certain domestic represented employees. The defined contribution plans contain a 401(k) feature and provide most participants with a matching contribution from the Company. The Company deposits the matching contribution annually. Many participants covered by the plans receive annual Company contributions to their retirement accounts based on an age-weighted percentage of the participant's eligible compensation for the calendar year. Defined contribution expense pursuant to these plans was $7 million and $24 million in the three and nine months ended July 31, 2015 , respectively, and $6 million and $21 million for the three and nine months ended July 31, 2014 , respectively. In accordance with the 1993 Settlement Agreement, an independent Retiree Supplemental Benefit Trust (the "Supplemental Trust") was established. The Supplemental Trust, and the benefits it provides to certain retirees pursuant to a certain Retiree Supplemental Benefit Program under the 1993 Settlement Agreement ("Supplemental Benefit Program"), is not part of the Company's consolidated financial statements. The Company's contingent profit sharing obligations under a certain Supplemental Benefit Trust Profit Sharing Plan ("Supplemental Benefit Trust Profit Sharing Plan") will continue until certain funding targets defined by the 1993 Settlement Agreement are met. We have recorded no profit sharing accruals based on the operating performance of the entities that are included in the determination of qualifying profits. For more information, see Note 11, Commitments and Contingencies , for a discussion of pending arbitration regarding the Supplemental Benefit Profit Sharing Plan. |
Income Taxes
Income Taxes | 9 Months Ended |
Jul. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We compute on a quarterly basis an estimated annual effective tax rate considering ordinary income and related income tax expense. For all periods presented, U.S. and certain foreign results are excluded from ordinary income due to ordinary losses for which no benefit can be recognized. Ordinary income refers to income (loss) before income tax expense excluding significant unusual or infrequently occurring items. The tax effect of a significant unusual or infrequently occurring item is recorded in the interim period in which it occurs. Items included in income tax expense in the periods in which they occur include the tax effects of material restructurings, impairments, cumulative effect of changes in tax laws or rates, foreign exchange gains and losses, adjustments to uncertain tax positions, and adjustments to our valuation allowance due to changes in judgment regarding the ability to realize deferred tax assets in future years. We have evaluated the need to maintain a valuation allowance for deferred tax assets based on our assessment of whether it is more likely than not that deferred tax benefits will be realized through the generation of future taxable income. Appropriate consideration is given to all available evidence, both positive and negative, in assessing the need for a valuation allowance. We continue to maintain a valuation allowance on our U.S. deferred tax assets, as well as certain foreign deferred tax assets, that we believe, on a more-likely-than-not basis, will not be realized. For all remaining deferred tax assets, while we believe at July 31, 2015 that it is more likely than not that they will be realized, we believe that it is reasonably possible that additional deferred tax asset valuation allowances could be required in the next twelve months. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of July 31, 2015 , the amount of liability for uncertain tax positions was $41 million . The liability at July 31, 2015 has a recorded offsetting tax benefit associated with various issues that total $14 million . If the unrecognized tax benefits are recognized, all would impact our effective tax rate. However, to the extent we continue to maintain a full valuation allowance against certain deferred tax assets, the effect may be in the form of an increase in the deferred tax asset related to our net operating loss carryforward, which would be offset by a full valuation allowance. We recognize interest and penalties related to uncertain tax positions as part of Income tax expense . For the three and nine months ended July 31, 2015 , total interest and penalties related to our uncertain tax positions resulted in an income tax expense of less than $1 million in each period. We have open tax years back to 2001 with various significant taxing jurisdictions including the U.S., Canada, Mexico, and Brazil. In connection with the examination of tax returns, contingencies may arise that generally result from differing interpretations of applicable tax laws and regulations as they relate to the amount, timing, or inclusion of revenues or expenses in taxable income, or the sustainability of tax credits to reduce income taxes payable. We believe we have sufficient accruals for our contingent tax liabilities. Annual tax provisions include amounts considered sufficient to pay assessments that may result from examinations of prior year tax returns, although actual results may differ. While it is probable that the liability for unrecognized tax benefits may increase or decrease during the next twelve months, we do not expect any such change would have a material effect on our financial condition, results of operations, or cash flows. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jul. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair Value Measurements For assets and liabilities measured at fair value on a recurring and nonrecurring basis, a three-level hierarchy of measurements based upon observable and unobservable inputs is used to arrive at fair value. Observable inputs are developed based on market data obtained from independent sources, while unobservable inputs reflect our assumptions about valuation based on the best information available in the circumstances. Depending on the inputs, we classify each fair value measurement as follows: • 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. The following section describes key inputs and assumptions in our valuation methodologies: Cash Equivalents and Restricted Cash Equivalents —We classify highly liquid investments, with an original maturity of 90 days or less, including U.S. Treasury bills, federal agency securities, and commercial paper, as cash equivalents. The carrying amounts of cash and cash equivalents and restricted cash approximate fair value because of the short-term maturity and highly liquid nature of these instruments. Marketable Securities —Our marketable securities portfolios are classified as available-for-sale and primarily include investments in U.S. government securities and commercial paper with an original maturity greater than 90 days. We use quoted prices from active markets to determine fair value. Derivative Assets and Liabilities —We measure the fair value of derivatives assuming that the unit of account is an individual derivative transaction and that each derivative could be sold or transferred on a stand-alone basis. We classify within Level 2 our derivatives that are traded over-the-counter and valued using internal models based on observable market inputs. In certain cases, market data is not available and we estimate inputs such as in situations where trading in a particular commodity is not active. Measurements based upon these unobservable inputs are classified within Level 3. For more information regarding derivatives, see Note 10, Financial Instruments and Commodity Contracts . Guarantees —We provide certain guarantees of payments and residual values to specific counterparties. Fair value of these guarantees is based upon internally developed models that utilize current market-based assumptions and historical data. We classify these liabilities within Level 3. For more information regarding guarantees, see Note 11, Commitments and Contingencies. The following table presents the financial instruments measured at fair value on a recurring basis: July 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 $ 188 $ — $ — $ 188 $ 256 $ — $ — $ 256 Other 105 — — 105 349 — — 349 Derivative financial instruments: Foreign currency contracts (A) — 5 — 5 — — — — Interest rate caps (B) — — — — — 1 — 1 Total assets $ 293 $ 5 $ — $ 298 $ 605 $ 1 $ — $ 606 Liabilities Derivative financial instruments: Commodity forward contracts (C) $ — $ 4 $ — $ 4 $ — $ 2 $ — $ 2 Guarantees — — 10 10 — — 8 8 Total liabilities $ — $ 4 $ 10 $ 14 $ — $ 2 $ 8 $ 10 _________________________ (A) The asset value of foreign currency contracts are included in other current assets as of July 31, 2015 in the accompanying Consolidated Balance Sheets . (B) The asset value of interest rate caps are included in other noncurrent assets as of October 31, 2014 in the accompanying Consolidated Balance Sheets. (C) The liability value of commodity forward contracts are included in other noncurrent liabilities as of July 31, 2015 and October 31, 2014 in the accompanying Consolidated Balance Sheets. The following table presents the changes for those financial instruments classified within Level 3 of the valuation hierarchy: Three Months Ended July 31, (in millions) 2015 2014 Guarantees, at May 1 $ (7 ) $ (6 ) Transfers out of Level 3 — — Issuances (4 ) — Settlements 1 — Guarantees, at July 31 $ (10 ) $ (6 ) Change in unrealized gains on assets and liabilities still held $ — $ — Nine Months Ended July 31, (in millions) 2015 2014 Guarantees, at November 1 $ (8 ) $ (6 ) Transfers out of Level 3 — — Issuances (4 ) — Settlements 2 — Guarantees, at July 31 $ (10 ) $ (6 ) Change in unrealized gains on assets and liabilities still held $ — $ — The following table presents the financial instruments measured at fair value on a nonrecurring basis: (in millions) July 31, 2015 October 31, 2014 Level 2 financial instruments Carrying value of impaired finance receivables (A) $ 21 $ 20 Specific loss reserve (10 ) (6 ) Fair value $ 11 $ 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. In the second quarter of 2014, for the purpose of impairment evaluation the Company measured the implied fair value of the Company's Brazilian engine reporting unit's goodwill and the fair value of an indefinite-lived intangible asset, a trademark. The Company's Brazilian engine reporting unit's goodwill was determined to be fully impaired and resulted in a non-cash charge of $142 million . In addition, the related trademark, with a carrying value of $43 million was determined to be impaired and a non-cash charge of $7 million was recognized. The impairment charges were included in Asset impairment charges in the Company's Consolidated Statements of Operations . We utilized the income approach to determine the fair value of these Level 3 assets. For more information, see Note 1, Summary of Significant Accounting Policies . 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, certain amortizing intangible assets and long-lived assets with a carrying value of $18 million were determined to be fully impaired, resulting in an impairment charge of $18 million , which was included in Asset impairment charges in the Company's Consolidated Statements of Operations . We utilized the market approach to determine the fair values of these Level 2 assets. In addition to the methods and assumptions we use for the financial instruments recorded at fair value as discussed above, we use the following methods and assumptions to estimate the fair value for our other financial instruments that are not marked to market on a recurring basis. The carrying amounts of Cash and cash equivalents , Restricted cash , and Accounts payable approximate fair values because of the short-term maturity and highly liquid nature of these instruments. Finance receivables generally consist of retail and wholesale accounts and retail and wholesale notes. The carrying amounts of Trade and other receivables and retail and wholesale accounts approximate fair values as a result of the short-term nature of the receivables. The carrying amounts of wholesale notes approximate fair values as a result of the short-term nature of the wholesale notes and their variable interest rate terms. The fair values of these financial instruments are classified as Level 1. Due to the nature of the aforementioned financial instruments, they have been excluded from the fair value amounts presented in the table below. The fair values of our retail notes are estimated by discounting expected cash flows at estimated current market rates. The fair values of our retail notes are classified as Level 3 financial instruments. The fair values of our debt instruments classified as Level 1 were determined using quoted market prices. The 6.5% Tax Exempt Bonds, due 2040, are traded, but the trading market is illiquid, and as a result, the Loan Agreement underlying the Tax Exempt Bonds is classified as Level 2. The fair values of our Level 3 debt instruments are generally determined using internally developed valuation techniques such as discounted cash flow modeling. Inputs such as discount rates and credit spreads reflect our estimates of assumptions that market participants would use in pricing the instrument and may be unobservable. The following tables present the carrying values and estimated fair values of financial instruments: As of July 31, 2015 Estimated Fair Value Carrying Value (in millions) Level 1 Level 2 Level 3 Total Assets Retail notes $ — $ — $ 195 $ 195 $ 188 Notes receivable — — 5 5 5 Liabilities Debt: Manufacturing operations Senior Secured Term Loan Credit Facility, as Amended, due 2017 — — 697 697 695 8.25% Senior Notes, due 2021 1,150 — — 1,150 1,182 4.50% Senior Subordinated Convertible Notes, due 2018 (A) — — 166 166 184 4.75% Senior Subordinated Convertible Notes, due 2019 (A) — — 333 333 377 Debt of majority-owned dealerships — — 26 26 26 Financing arrangements — — 19 19 44 Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040 — — 243 243 225 Promissory Note — — 3 3 3 Financed lease obligations — — 129 129 129 Other — — 20 20 19 Financial Services operations Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2018 — — 1,129 1,129 1,135 Bank revolvers, at fixed and variable rates, due dates from 2015 through 2020 — — 1,127 1,127 1,147 Commercial paper, at variable rates, program matures in 2017 90 — — 90 90 Borrowings secured by operating and finance leases, at various rates, due serially through 2018 — — 26 26 26 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. |
Financial Instruments and Commo
Financial Instruments and Commodity Contracts | 9 Months Ended |
Jul. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Commodity Contracts | Financial Instruments and Commodity Contracts Derivative Financial Instruments We use derivative financial instruments as part of our overall interest rate, foreign currency, and commodity risk management strategies to reduce our interest rate exposure, reduce exchange rate risk for transactional exposures denominated in currencies other than the functional currency, and minimize the effect of commodity price volatility. From time to time, we use foreign currency forward and option contracts to manage the risk of exchange rate movements that would affect the value of our foreign currency cash flows. Foreign currency exchange rate movements create a degree of risk by affecting the value of sales made and costs incurred in currencies other than the functional currency. In addition, we also use commodity forward contracts to manage our exposure to variability in certain commodity prices. We generally do not enter into derivative financial instruments for speculative or trading purposes and did not during the three and nine months ended July 31, 2015 and 2014 . None of our derivatives qualified for hedge accounting treatment during the three and nine months ended July 31, 2015 and 2014 . The majority of our derivative contracts are transacted under International Swaps and Derivatives Association ("ISDA") master agreements. Each agreement permits the net settlement of amounts owed in the event of default or certain other termination events. For derivative financial instruments, we have elected not to offset derivative positions in the balance sheet with the same counterparty under the same agreement. Certain of our derivative contracts contain provisions that require us to provide collateral if certain thresholds are exceeded. Collateral of $1 million was provided at July 31, 2015 and no collateral was provided as of October 31, 2014 . Collateral is generally not required to be provided by our counter-parties for derivative contracts. We manage exposure to counter-party credit risk by entering into derivative financial instruments with various major financial institutions that can be expected to fully perform under the terms of such instruments. We do not anticipate nonperformance by any of the counter-parties. Our exposure to credit risk in the event of nonperformance by the counter-parties is limited to those assets that have been recorded, but have not yet been received in cash. At July 31, 2015 and October 31, 2014 , our exposure to the credit risk of others was $5 million and $1 million , respectively. Location in Consolidated Statements of Operations Three Months Ended July 31, (in millions) 2015 2014 Interest rate caps Interest expense $ 1 $ 1 Cross currency swaps Other income, net (1 ) 1 Foreign currency contracts Other income, net (6 ) 1 Commodity forward contracts Costs of products sold (1 ) (1 ) Total (income) loss $ (7 ) $ 2 Location in Consolidated Statements of Operations Nine Months Ended July 31, (in millions) 2015 2014 Interest rate caps Interest expense $ 1 $ 2 Cross currency swaps Other income, net 2 1 Foreign currency contracts Other income, net (5 ) 2 Commodity forward contracts Costs of products sold 4 (1 ) Total loss $ 2 $ 4 Foreign Currency Contracts During 2015 and 2014 , we entered into foreign exchange forward and option contracts as economic hedges of anticipated cash flows denominated in Brazilian Reais, Euros, Canadian Dollars, and Mexican Pesos. All contracts were entered into to protect against the risk that the eventual cash flows resulting from certain transactions would be affected by changes in exchange rates between the U.S. Dollar and the respective foreign currency. The following table presents the outstanding foreign currency contracts as of July 31, 2015 and October 31, 2014 : (in millions) Currency Notional Amount Maturity As of July 31, 2015 Forward exchange contract EUR € 12 August 2015-October 2015 (A) Forward exchange contract CAD C$ 100 August 2015-October 2015 (B) Forward exchange contract MXN ₱ 813 August 2015 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 (C) _________________________ (A) Forward exchange contracts of €4 million mature each month from August 2015 through October 2015. (B) Forward exchange contracts of C$25 million settle each month from August 2015 through November 2015. (C) Forward exchange contracts of €1 million mature on the last day of each month from February 2015 through October 2015. Commodity Forward Contracts During 2015 and 2014 , we entered into commodity forward contracts as economic hedges of our exposure to variability in commodity prices for diesel fuel and steel. As of July 31, 2015 , we had outstanding diesel fuel contracts with aggregate notional values of $13 million and outstanding steel contracts with aggregate notional values of $6 million . The commodity forward contracts have various maturity dates through October 31, 2016. As of October 31, 2014 , we had outstanding diesel fuel contracts with aggregate notional values of $24 million and outstanding steel contracts with aggregate notional values of $23 million . All of these contracts were entered into to protect against the risk that the eventual cash flows related to purchases of the commodities will be affected by changes in prices. Interest-Rate Contracts From time to time, we enter into various interest-rate contracts, interest rate caps, and cross currency swaps. As of July 31, 2015 , there were no outstanding cross currency swaps. As of October 31, 2014 , the notional amount of our outstanding cross currency swaps was $27 million . We are exposed to interest rate and exchange rate risk as a result of our borrowing activities. The objective of these contracts is to mitigate fluctuations in earnings, cash flows, and fair value of borrowings. Our Mexican financial services operation uses interest rate caps and cross currency swaps to protect against the potential of rising interest rates as required by the terms of its variable-rate asset-backed securities and fluctuations in the value of the peso, as required under Mexican bank credit facilities. As of July 31, 2015 and October 31, 2014 , the notional amount of our outstanding interest rate caps was $111 million and $134 million , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jul. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Guarantees We occasionally provide guarantees that could obligate us to make future payments if the primary entity fails to perform under its contractual obligations. We have recognized liabilities for some of these guarantees in our Consolidated Balance Sheets as they meet the recognition and measurement provisions of U.S. GAAP. In addition to the liabilities that have been recognized, we are contingently liable for other potential losses under various guarantees. We do not believe that claims that may be made under such guarantees would have a material effect on our financial condition, results of operations, or cash flows. In March 2010, we entered into an operating agreement, as amended, which contains automatic extensions and is subject to early termination provisions, with GE Capital (the "GE Operating Agreement"). Under the terms of the GE Operating Agreement, as amended, GE Capital ("GE") is our preferred source of retail customer financing for equipment offered by us and our dealers in the U.S. We provide GE with a loss sharing arrangement for certain credit losses. Under the loss sharing arrangement, as amended, we generally reimburse GE for credit losses in excess of the first 10% of the financed value of a contract; for certain leases we reimburse GE for credit losses up to a maximum of the first 9.5% of the financed value of those lease contracts. The Company’s exposure to loss is mitigated because contracts under the GE Operating Agreement are secured by the financed equipment. There were $1.7 billion and $1.5 billion of outstanding loan principal and operating lease payments receivable at July 31, 2015 and October 31, 2014 , financed through the GE Operating Agreement and subject to the loss sharing arrangements in the U.S. The related financed values of these outstanding contracts were $2.3 billion at both July 31, 2015 and October 31, 2014 . Generally, we do not carry the contracts under the GE Operating Agreement on our Consolidated Balance Sheets . However, for certain GE financed contracts which we have accounted for as borrowings, we have recognized equipment leased to others of $119 million and financed lease obligations of $128 million in our Consolidated Balance Sheets for the period ended July 31, 2015 . Historically, our losses, representing the entire loss amount, on similar contracts, measured as a percentage of the average balance of the related contracts, ranged from 0.3% to 2.1% . Under limited circumstances NFC retains the right to originate retail customer financings. Based on our historic experience of losses on similar contracts and the nature of the loss sharing arrangement, we do not believe our share of losses related to balances currently outstanding will be material. For certain independent dealers’ wholesale inventory financed by third-party banks or finance companies, we provide limited repurchase agreements to the respective financing institution. The amount of losses related to these arrangements has not been material to our Consolidated Statements of Operations or Consolidated Statements of Cash Flows and the value of the guarantees and accruals recorded are not material to our Consolidated Balance Sheets . We also have issued limited residual value guarantees in connection with various leases. The amounts of the guarantees are estimated and recorded. Our guarantees are contingent upon the fair value of the leased assets at the end of the lease term. The amount of losses related to these arrangements has not been material to our Consolidated Statements of Operations or Consolidated Statements of Cash Flows and the value of the guarantees and accruals recorded are not material to our Consolidated Balance Sheets . We obtain certain stand-by letters of credit and surety bonds from third-party financial institutions in the ordinary course of business when required under contracts or to satisfy insurance-related requirements. As of July 31, 2015 , the amount of stand-by letters of credit and surety bonds was $88 million . We extend credit commitments to certain truck fleet customers, which allow them to purchase parts and services from participating dealers. The participating dealers receive accelerated payments from us with the result that we carry the receivables and absorb the credit risk related to these customers. As of July 31, 2015 , the total credit limit under this program was $11 million of which $7 million was unused. In addition, as of July 31, 2015 , we have entered into various purchase commitments of $58 million and contracts that have cancellation fees of $59 million with various expiration dates through 2020. In the ordinary course of business, we also provide routine indemnifications and other guarantees, the terms of which range in duration and often are not explicitly defined. We do not believe these will result in claims that would have a material impact on our financial condition, results of operations, or cash flows. Environmental Liabilities We have been named a potentially responsible party ("PRP"), in conjunction with other parties, in a number of cases arising under an environmental protection law, the Comprehensive Environmental Response, Compensation, and Liability Act, popularly known as the "Superfund" law. These cases involve sites that allegedly received wastes from current or former Company locations. Based on information available to us which, in most cases, consists of data related to quantities and characteristics of material generated at current or former Company locations, material allegedly shipped by us to these disposal sites, as well as cost estimates from PRPs and/or federal or state regulatory agencies for the cleanup of these sites, a reasonable estimate is calculated of our share of the probable costs, if any, and accruals are recorded in our consolidated financial statements. These accruals are generally recognized no later than upon completion of the remedial feasibility study and are not discounted to their present value. We review all accruals on a regular basis and believe that, based on these calculations, our share of the potential additional costs for the cleanup of each site will not have a material effect on our financial condition, results of operations, or cash flows. Two sites formerly owned by us, Solar Turbines in San Diego, California, and the Canton Plant in Canton, Illinois, were identified as having soil and groundwater contamination. Two sites in Sao Paulo, Brazil, one at which we are currently operating and one where we formerly operated, were identified as having soil and groundwater contamination. While investigations and cleanup activities continue at these and other sites, we believe that we have adequate accruals to cover costs to complete the cleanup of all sites. We have accrued $21 million for these and other environmental matters, which are included within Other current liabilities and Other noncurrent liabilities , as of July 31, 2015 . The majority of these accrued liabilities are expected to be paid subsequent to 2015 . Along with other vehicle manufacturers, we have been subject to an increased number of asbestos-related claims in recent years. In general, these claims relate to illnesses alleged to have resulted from asbestos exposure from component parts found in older vehicles, although some cases relate to the alleged presence of asbestos in our facilities. In these claims, we are generally not the sole defendant, and the claims name as defendants numerous manufacturers and suppliers of a wide variety of products allegedly containing asbestos. We have strongly disputed these claims, and it has been our policy to defend against them vigorously. Historically, the actual damages paid out to claimants have not been material in any year to our financial condition, results of operations, or cash flows. It is possible that the number of these claims will continue to grow, and that the costs for resolving asbestos related claims could become significant in the future. Legal Proceedings Overview We are subject to various claims arising in the ordinary course of business, and are party to various legal proceedings that constitute ordinary, routine litigation incidental to our business. The majority of these claims and proceedings relate to commercial, product liability, and warranty matters. In addition, from time to time we are subject to various claims and legal proceedings related to employee compensation, benefits, and benefits administration including, but not limited to, compliance with the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), and Department of Labor requirements. In our opinion, apart from the actions set forth below, the disposition of these proceedings and claims, after taking into account recorded accruals and the availability and limits of our insurance coverage, will not have a material adverse effect on our business or our financial condition, results of operations, or cash flows. Profit Sharing Disputes Pursuant to the 1993 Settlement Agreement, the program administrator and named fiduciary of the Supplemental Benefit Program is the Supplemental Benefit Program committee (the "Committee"), comprised of non-Company individuals. In August 2013, the Committee filed a motion for leave to amend its February 2013 complaint (which sought injunctive relief for the Company to provide certain information to which it was allegedly entitled under the Supplemental Benefit Trust Profit Sharing Plan) and a proposed amended complaint (the "Profit Sharing Complaint") in the U.S. District Court for the Southern District of Ohio (the "Court"). Leave to file the Profit Sharing Complaint was granted by the Court in October 2013. In its Profit Sharing Complaint, the Committee alleged the Company breached the 1993 Settlement Agreement and violated ERISA by failing to properly calculate profit sharing contributions due under the Supplemental Benefit Trust Profit Sharing Plan. The Committee seeks damages in excess of $50 million , injunctive relief and reimbursement of attorneys' fees and costs. In October 2013, the Company filed a Motion to Dismiss the Profit Sharing Complaint and to compel the Committee to comply with the dispute resolution procedures set forth in the Supplemental Benefit Trust Profit Sharing Plan. In March 2014, the Court denied the Company's Motion to Dismiss and ruled, among other things, that the Company waived its right to compel the Committee to comply with the dispute resolution provisions set forth in the Supplemental Benefit Trust Profit Sharing Plan. In April 2014, the Company appealed the Court's refusal to compel the Committee to comply with the dispute resolution process to the Court of Appeals for the 6th Circuit. The Company also filed a motion with the Court to stay all proceedings pending the appeal. In May 2014, the Court granted the motion to stay all proceedings, including discovery, pending the appeal. In March 2015, the Court of Appeals vacated the Court's March 2014 denial of the Company's Motion to Dismiss and related ruling and remanded with instructions to order that the Committee's claims in the Profit Sharing Complaint be arbitrated. In May 2015, the Court ordered that the claims in the Profit Sharing Complaint be arbitrated pursuant to the dispute resolution procedures in the Supplemental Benefit Trust Profit Sharing Plan. The Company and the Committee are in the process of selecting an arbitrator. In addition, various local bargaining units of the UAW have filed separate grievances pursuant to the profit sharing plans under various collective bargaining agreements in effect between the Company and the UAW that may have similar legal and factual issues as the Profit Sharing Complaint. Based on our assessment of the facts underlying the claims in the above actions, we are unable to provide meaningful quantification of how the final resolution of these claims may impact our future consolidated financial condition, results of operations, or cash flows. FATMA Notice International Indústria de Motores da América do Sul Ltda. ("IIAA"), formerly known as Maxion International Motores S/A ("Maxion"), now a wholly owned subsidiary of the Company, received a notice in July 2010 from the State of Santa Catarina Environmental Protection Agency ("FATMA") in Brazil. The notice alleged that Maxion had sent wastes to a facility owned and operated by a company known as Natureza and that soil and groundwater contamination had occurred at the Natureza facility. The notice asserted liability against Maxion and assessed an initial penalty in the amount of R$2 million (the equivalent of less than US $1 million at July 31, 2015 ), which is not due and final until all administrative appeals are exhausted. Maxion was one of numerous companies that received similar notices. IIAA filed an administrative defense in August 2010 and has not yet received a decision following that filing. IIAA disputes the allegations in the notice and intends to vigorously defend itself. Sao Paulo Groundwater Notice In March 2014, IIAA, along with other nearby companies, received from the Sao Paulo District Attorney a notice and proposed Consent Agreement relating to alleged neighborhood-wide groundwater contamination at or around its Sao Paulo manufacturing facility. The proposed Consent Agreement seeks certain groundwater investigations and other technical relief and proposes sanctions in the amount of R $3 million (the equivalent of approximately US $1 million at July 31, 2015 ). In November 2014, IIAA extended a settlement offer. Currently, the parties remain in settlement discussions concerning the sanctions amount and the provisions of a Consent Agreement. MaxxForce Engine EGR Warranty Litigation On June 24, 2014, N&C Transportation Ltd. ("N&C") filed a putative class action lawsuit against NIC, Navistar, Inc., Navistar Canada Inc., and Harbour International Trucks in Canada in the Supreme Court of British Columbia (the "N&C Action"). Subsequently, six additional, similar putative class action lawsuits have been filed in four other provinces in Canada (together with the N&C Action, the "Canadian Actions"). On July 13, 2015, N&C filed a Notice of Application seeking an order certifying a nationwide class of Canadian residents who purchased in or after January 2009 a Class 8 Navistar truck equipped with an “Advanced EGR” engine. On July 7, 2014, Par 4 Transport, LLC filed a putative class action lawsuit against Navistar, Inc. in the United States District Court for the Northern District of Illinois (the "Par 4 Action"). Subsequently, similar putative class action lawsuits were filed in various United States district courts, including the Northern District of Illinois, the Eastern District of Wisconsin, the Southern District of Florida, the Southern District of Texas, the District of Minnesota, the Northern District of Alabama, the Western District of Kentucky, and the Middle District of Pennsylvania (together with the Par 4 Action, the "U.S. Actions"). The U.S. Actions contained allegations substantially similar to the Canadian Actions. More specifically, the Canadian Actions and the U.S. Actions (collectively, the "EGR Class Actions") seek to certify one or more classes of persons or entities in Canada or the United States who purchased and/or leased a ProStar or other Navistar vehicle equipped with a model year 2008-2013 MaxxForce Advanced EGR engine. In substance, the EGR Class Actions allege that the MaxxForce Advanced EGR engines are defective and that Navistar, Inc. failed to disclose and/or correct the alleged defect. The EGR Class Actions assert claims based on various theories, including breach of contract, breach of warranty, consumer fraud, unfair competition, misrepresentation and negligence. The EGR Class Actions seek relief in the form of monetary damages, punitive damages, declaratory relief, interest, fees, and costs. On October 3, 2014, NIC and Navistar, Inc. filed a motion before the United States Judicial Panel on Multidistrict Litigation (the "MDL Panel") seeking to transfer and consolidate before Judge Joan B. Gottschall of the United States District Court for the Northern District of Illinois all of the U.S. Actions then pending, as well as certain non-class action MaxxForce Advanced EGR engine lawsuits pending in various federal district courts. On December 17, 2014, Navistar's motion was granted. The MDL Panel issued an order consolidating all of the U.S. Actions pending on the date the motion was filed before Judge Gottschall in the United States District Court for the Northern District of Illinois. The MDL Panel also consolidated certain non-class action MaxxForce Advanced EGR engine lawsuits pending in the various federal district courts, with the exception of one matter. For cases filed after the initial ruling by the MDL Panel, we continue to request that the MDL Panel similarly transfer and consolidate cases involving one or more common questions of fact. To date, eight putative class actions and three non-class cases have been added to the MDL proceeding before Judge Gottschall. On March 5, 2015, Judge Gottschall entered an order in the MDL proceeding, appointing interim lead counsel and interim liaison counsel for the Plaintiffs. On May 11, 2015, lead counsel for the Plaintiffs filed a First Master Consolidated Class Action Complaint ("Consolidated Complaint"). The Company answered the Consolidated Complaint on July 13, 2015. The next status conference is set for September 11, 2015. Based on our assessment of the facts underlying the claims in the above actions, we are unable to provide meaningful quantification of how the final resolution of these claims may impact our future consolidated financial condition, results of operations, or cash flows. EPA Clean Air Act Litigation In February 2012, Navistar, Inc. received a Notice of Violation ("NOV") from the U.S. Environmental Protection Agency ("EPA"). The NOV pertains to approximately 7,600 diesel engines which, according to the EPA, were produced by Navistar, Inc. in 2010 and, therefore, should have met the EPA's 2010 emissions standards. Navistar, Inc. previously provided information to the EPA evidencing its belief that the engines were in fact produced in 2009. The NOV contains the EPA's conclusion that Navistar, Inc.'s alleged production of the engines in 2010 violated the Federal Clean Air Act. The NOV states that the EPA reserves the right to file an administrative complaint or to refer this matter to the U.S. Department of Justice ("DOJ") with a recommendation that a civil complaint be filed in federal district court. In July 2014, the DOJ informed Navistar that the matter had been referred to the DOJ. On July 14, 2015, the DOJ on behalf of the EPA filed a lawsuit against the Company and Navistar, Inc. in the U.S. District Court for the Northern District of Illinois alleging that during 2010 the Company introduced into commerce approximately 7,750 heavy-duty diesel engines that did not meet the EPA’s emissions standards applicable to 2010 engines, resulting in violations of the federal Clean Air Act. On July 16, 2015, the DOJ filed an Amended Complaint clarifying the amount of civil penalties being sought. The lawsuit requests injunctive relief and the assessment of civil penalties of up to $37,500 for each violation. The Company disputes the allegations in the lawsuit. Based on our assessment of the facts underlying the complaint above, we are unable to provide meaningful quantification of how the final resolution of this matter may impact our future consolidated financial condition, results of operations or cash flows. CARB Notice of Violation In April 2013, Navistar, Inc. received a notice of violation and proposed settlement ("Notice") from the California Air Resources Board ("CARB"). The Notice alleged violations of the California regulations relating to verification of after-treatment devices and proposed civil penalties of approximately $2.5 million , among other proposed settlement terms. In May 2015, the parties finalized a settlement resolving the matter for a penalty payment of $0.3 million and the Company's agreement to conduct certain in-use testing. Shareholder Litigation In March 2013, a putative class action complaint, alleging securities fraud, was filed against us by the Construction Workers Pension Trust Fund - Lake County and Vicinity, on behalf of itself and all other similarly situated purchasers of our common stock between the period of November 3, 2010 and August 1, 2012. A second class action complaint was filed in April 2013 by the Norfolk County Retirement System, individually and on behalf of all other similarly situated purchasers of our common stock between the period of June 9, 2010 and August 1, 2012. A third class action complaint was filed in April 2013 by Jane C. Purnell FBO Purnell Family Trust, on behalf of itself and all other similarly situated purchasers of our common stock between the period of November 3, 2010 and August 1, 2012. Each complaint named us as well as Daniel C. Ustian, our former President and Chief Executive Officer, and Andrew J. Cederoth, our former Executive Vice President and Chief Financial Officer, as defendants. These complaints (collectively, the "10b-5 Cases") contain similar factual allegations which include, among other things, that we violated the federal securities laws by knowingly issuing materially false and misleading statements concerning our financial condition and future business prospects and that we misrepresented and omitted material facts in filings with the SEC concerning the timing and likelihood of EPA certification of our EGR technology to meet 2010 EPA emission standards. The plaintiffs in these matters seek compensatory damages and attorneys' fees, among other relief. In May 2013, an order was entered transferring and consolidating all cases before one judge and in July 2013, the Court appointed a lead plaintiff and lead plaintiff's counsel. The lead plaintiff filed a consolidated amended complaint in October 2013. The consolidated amended complaint enlarged the proposed class period to June 9, 2009 through August 1, 2012, and named fourteen additional current and former directors and officers as defendants. In December 2013, we filed a motion to dismiss the consolidated amended complaint. In July 2014, the Court granted the defendants' Motions to Dismiss, denied the lead plaintiff's Motion to Strike as moot, and gave the lead plaintiff leave to file a second consolidated amended complaint. In August, 2014, the plaintiff timely filed a Second Amended Complaint, which narrows the claims in two ways. First, the plaintiff abandoned its claims against the majority of the defendants, asserting claims against only Navistar, Dan Ustian, A.J. Cederoth, Jack Allen, and Eric Tech. The plaintiff also shortened the putative class period by changing the class period commencement date from June 9, 2009 to March 10, 2010. Defendants filed their Motion to Dismiss the Second Amended Complaint in September, 2014 and in October, 2014, the plaintiff filed its opposition to defendants' Motion to Dismiss. In November, 2014, defendants filed their reply brief in support of defendants' Motion to Dismiss the Second Amended Complaint. Also in November 2014, the plaintiff voluntarily dismissed Eric Tech as a defendant. On July 10, 2015, the Court issued its Opinion and Order on our Motion to Dismiss the Defendants’ Second Amended Complaint in the 10b-5 Cases. The Motion to Dismiss was granted in part and denied in part. Specifically, the Court (i) dismissed all of plaintiff’s claims against the Company, Andrew J. Cederoth and Jack Allen and (ii) dismissed all of plaintiffs’ claims against Daniel C. Ustian, the only remaining defendant, except for claims regarding two of Mr. Ustian’s statements. Further, all of the dismissed claims were dismissed with prejudice except for claims based on statements made subsequent to the lead plaintiff’s last purchase of the Company’s stock (the “Post-Purchase Claims”). The Court determined the lead plaintiff lacked standing to assert the Post-Purchase Claims and dismissed those claims without prejudice. In March 2013, James Gould filed a derivative complaint on behalf of the Company against us and certain of our current and former directors and former officers. The complaint alleges, among other things, that certain of our current and former directors and former officers committed a breach of fiduciary duty, waste of corporate assets and were unjustly enriched in relation to similar factual allegations made in the 10b-5 Cases. The plaintiff in this matter seeks compensatory damages, certain corporate governance reforms, certain injunctive relief, disgorgement of the proceeds of certain defendants' profits from the sale of Company stock, and attorneys' fees, among other relief. On May 3, 2013, the Court entered a Stipulation and Order to Stay Action, staying the case pending further order of the court or entry of an order on the motion to dismiss the consolidated amended complaint in the 10b-5 Cases. On July 31, 2014, after the amended complaint in the 10b-5 Cases was dismissed, the parties filed a status report, and the court entered an order on August 27, 2014 continuing the stay pending a ruling on defendants' Motion to Dismiss the Second Amended Complaint in the 10b-5 Cases. In July 2015, the stay was further extended through November 23, 2015. Each of these matters is pending in the United States District Court, Northern District of Illinois. In August 2013, Abbie Griffin, filed a derivative complaint in the State of Delaware Court of Chancery, on behalf of the Company and all similarly situated stockholders, against the Company, as the nominal defendant, and certain of our current and former directors and former officers. The complaint alleges, among other things, that certain of our current and former directors and former officers committed a breach of fiduciary duty, in relation to similar factual allegations made in the 10b-5 Cases. The plaintiff in this matter seeks compensatory damages, certain corporate governance reforms, certain injunctive relief, and attorneys' fees, among other relief. On August 29, 2013, the court entered an order staying the case pending resolution of the defendant's Motion to Dismiss the consolidated amended complaint in the 10b-5 Cases. On August 5, 2014, the parties filed a status report with the court requesting that the August 2013 stay order remain in place pending a ruling on defendant's Motion to Dismiss the Second Amended Complaint in the 10b-5 Cases and on November 9, 2014, the court entered an order continuing the stay pending a ruling on defendants’ Motion to Dismiss the Second Amended Complaint in the 10b-5 Cases. In July 2015, the stay was further extended through December 3, 2015. Based on our assessment of the facts underlying these matters described above, we are unable to provide meaningful quantification of how the final resolution of these matters may impact our future consolidated financial condition, results of operations, or cash flows. Brazil Truck Dealer Disputes In January 2014, IIAA initiated an arbitration proceeding under the International Chamber of Commerce rules seeking payment for goods sold and unpaid, in the amount of R $64 million , including penalties and interest, from a group of four truck dealers in Brazil. The truck dealers are affiliated with each other, but not with us, and are collectively referred to as Navitrucks. In the proceeding, IIAA also seeks a declaration of fault against Navitrucks related to the termination of the truck dealer agreements between IIAA and Navitrucks. Navitrucks responded in part by submitting counterclaims against IIAA seeking the amount of R $128 million for damages related to alleged unfulfilled promises and injury to Navitrucks’ reputation. In October 2014, Navitrucks amended their counterclaims by increasing the amount of damages. During a preliminary hearing before the arbitral tribunal on March 24, 2015, the parties agreed to submit all of the pending claims between the parties to the exclusive jurisdiction of the arbitral tribunal. Pursuant to the timetable issued in the arbitration proceeding, IIAA presented its complaint in July 2015, Navitrucks filed its answer and counterclaims on August 24, 2015, and IIAA will file its rebuttal and answer to any counterclaims with the arbitral tribunal on or before October 8, 2015. As of July 31, 2015 , the approximate amount of the IIAA claim against Navitrucks is R $73 million (approximately US $22 million as of July 31, 2015 ), and the approximate amount of the Navitrucks claim against IIAA is R $195 million (approximately US $57 million as of July 31, 2015 ). Based on our assessment of the facts underlying the claims in the above actions, we are unable to provide meaningful quantification of how the final resolution of these claims may impact our future consolidated financial condition, results of operations, or cash flows. In addition, two other truck dealers and a truck fleet owner in Brazil have initiated separate adversarial proceedings against IIAA that may have similar legal and factual issues as the Navitrucks claim. These other claims are not material either individually or in the aggregate. Other U.S. Securities and Exchange Commission Inquiry In June 2012, Navistar received an informal inquiry from the Chicago Office of the Enforcement Division of the SEC seeking a number of categories of documents for the periods dating back to November 1, 2010, relating to various accounting and disclosure issues. We received a formal order of private investigation in July 2012. We have received subsequent subpoenas from the staff of the SEC in connection with their inquiry. In December 2014, the SEC filed an application in the United States District Court for the Northern District of Illinois seeking an order compelling the production of certain documents withheld by Navistar from its responses to the administrative subpoenas on the basis of attorney-client privilege and/or the work product doctrine. The discovery dispute involved a small number of documents in relation to the number of documents already produced by Navistar. On June 30, 2015, following an in camera review of some of the documents at issue, the Court entered an Order sustaining the privilege claims in part and overruling the claims in part. Pursuant to that Order, and a related order dated August 31, 2015, Navistar is completing the production of those documents, or portions of documents, for which its privilege claims were denied, as well as other documents subject to the SEC’s December 2014 application that the Company determined were not privileged under the reasoning of the Court’s June 30, 2015 Order. On August 13 and 17, 2015, the SEC staff transmitted “Wells Notices” in connection with the formal order of investigation from July 2012 described above. The Notices state that the staff has made a preliminary determination to recommend that the SEC file an enforcement action against the Company and its former chief executive officer, Daniel Ustian, alleging violations of the Securities Exchange Act of 1934, certain related regulations, the Securities Act of 1933, and an August 5, 2010 Order Instituting Cease-and-Desist Proceedings against the Company. We have been informed that the issues the staff may recommend the SEC pursue concern three applications in 2011 and 2012 by Navistar to the EPA for certification of heavy-duty diesel engines emitting 0.2g of NOx, as well as disclosures related to the circumstances of Mr. Ustian’s departure from the Company in August 2012. If the SEC were to authorize an action against the Company, the remedies pursued might include an injunction, a cease-and-desist order, and/or civil money penalties. We understand that the staff’s investigation is ongoing, and we continue to cooperate with the SEC in this matter. At this time, we are unable to predict the outcome of this matter or provide meaningful quantification of how the final resolution of this matter may impact our future consolidated financial condition, results of operations or cash flows. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Jul. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting During November 2014, we announced changes in our leadership team and in our organizational and reporting structures. We believe this realignment will guide us into the future and enable us to accelerate our performance as we finish the turnaround. These changes impact how our Chief Operating Decision Maker (“CODM”) assesses the performance of our operating segments and makes decisions about resource allocations. As a result, we identified the following changes within our reportable segments: • 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. All prior period segment information has been updated to conform to the 2015 presentation. Other than the changes noted above, there were no material changes to the reportable segments disclosed in our Annual Report on Form 10-K for the year ended October 31, 2014. The change in reportable segments had no effect on the Company's consolidated financial position, results of operations, or cash flows for the periods presented. The following is a description of our four reporting segments: • 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. Corporate contains those items that are not included in our four segments. Segment Profit (Loss) We define segment profit (loss) as Net income (loss) from continuing operations attributable to Navistar International Corporation excluding Income tax benefit (expense) . Selected financial information is as follows: (in millions) Truck Parts Global Operations Financial Services (A) Corporate and Eliminations Total Three Months Ended July 31, 2015 External sales and revenues, net $ 1,785 $ 614 $ 100 $ 37 $ 2 $ 2,538 Intersegment sales and revenues 49 11 9 26 (95 ) — Total sales and revenues, net $ 1,834 $ 625 $ 109 $ 63 $ (93 ) $ 2,538 Income (loss) from continuing operations attributable to NIC, net of tax $ (36 ) $ 151 $ (26 ) $ 26 $ (145 ) $ (30 ) Income tax expense — — — — (12 ) (12 ) Segment profit (loss) $ (36 ) $ 151 $ (26 ) $ 26 $ (133 ) $ (18 ) Depreciation and amortization $ 40 $ 4 $ 6 $ 13 $ 5 $ 68 Interest expense — — — 19 56 75 Equity in income of non-consolidated affiliates 1 1 1 — — 3 Capital expenditures (B) 20 1 1 — 5 27 (in millions) Truck Parts Global Operations Financial Services (A) Corporate and Eliminations Total Three Months Ended July 31, 2014 External sales and revenues, net $ 1,956 $ 629 $ 221 $ 38 $ — $ 2,844 Intersegment sales and revenues 46 15 12 22 (95 ) — Total sales and revenues, net $ 2,002 $ 644 $ 233 $ 60 $ (95 ) $ 2,844 Income (loss) from continuing operations attributable to NIC, net of tax $ (3 ) $ 137 $ (21 ) $ 24 $ (140 ) $ (3 ) Income tax expense — — — — (14 ) (14 ) Segment profit (loss) $ (3 ) $ 137 $ (21 ) $ 24 $ (126 ) $ 11 Depreciation and amortization $ 42 $ 4 $ 7 $ 12 $ 6 $ 71 Interest expense — — — 18 60 78 Equity in income of non-consolidated affiliates 1 1 — — — 2 Capital expenditures (B) 4 — 2 — 1 7 (in millions) Truck Parts Global Operations Financial (A) Corporate Total Nine Months Ended July 31, 2015 External sales and revenues, net $ 5,349 $ 1,835 $ 353 $ 108 $ 7 $ 7,652 Intersegment sales and revenues 121 29 38 75 (263 ) — Total sales and revenues, net $ 5,470 $ 1,864 $ 391 $ 183 $ (256 ) $ 7,652 Income (loss) from continuing operations attributable to NIC, net of tax $ (105 ) $ 429 $ (40 ) $ 72 $ (492 ) $ (136 ) Income tax expense — — — — (37 ) (37 ) Segment profit (loss) $ (105 ) $ 429 $ (40 ) $ 72 $ (455 ) $ (99 ) Depreciation and amortization $ 139 $ 11 $ 18 $ 37 $ 16 $ 221 Interest expense — — — 57 170 227 Equity in income (loss) of non-consolidated affiliates 4 3 (1 ) — — 6 Capital expenditures (B) 58 1 4 2 7 72 (in millions) Truck Parts Global Operations Financial (A) Corporate Total Nine Months Ended July 31, 2014 External sales and revenues, net $ 5,176 $ 1,817 $ 690 $ 115 $ — $ 7,798 Intersegment sales and revenues 166 43 26 57 (292 ) — Total sales and revenues, net $ 5,342 $ 1,860 $ 716 $ 172 $ (292 ) $ 7,798 Income (loss) from continuing operations attributable to NIC, net of tax $ (340 ) $ 378 $ (218 ) $ 71 $ (441 ) $ (550 ) Income tax expense — — — — (25 ) (25 ) Segment profit (loss) $ (340 ) $ 378 $ (218 ) $ 71 $ (416 ) $ (525 ) Depreciation and amortization $ 171 $ 12 $ 21 $ 33 $ 19 $ 256 Interest expense — — — 52 182 234 Equity in income (loss) of non-consolidated affiliates 3 3 (1 ) — — 5 Capital expenditures (B) 42 5 6 1 3 57 (in millions) Truck Parts Global Operations Financial Services Corporate and Eliminations Total Segment assets, as of: July 31, 2015 $ 1,967 $ 640 $ 458 $ 2,655 $ 1,049 $ 6,769 October 31, 2014 (C) 2,245 672 657 2,582 1,287 7,443 _________________________ (A) Total sales and revenues in the Financial Services segment include interest revenues of $46 million and $135 million for the three and nine months ended July 31, 2015 , respectively and $44 million and $126 million for the three and nine months ended July 31, 2014 , respectively. (B) Exclusive of purchases of equipment leased to others. (C) During the third quarter of 2015, it was determined that multiemployer plan accounting should have been applied in recording postretirement benefits related to our Financial Services segment, which provides that assets and liabilities of a plan are recorded only on the parent company and that periodic contributions to the plan made by the participating subsidiary are charged to expense for the purposes of the subsidiary's financial statements. As a result, we have reclassified $16 million of deferred tax assets between Financial Services and Corporate and Eliminations related to the postretirement benefits. This reclassification did not impact consolidated segment assets for the year-ended October 31, 2014. |
Stockholders' Deficit
Stockholders' Deficit | 9 Months Ended |
Jul. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Stockholders' Deficit Accumulated Other Comprehensive Loss Changes in Accumulated other comprehensive loss , net of tax, included in the Consolidated Statements of Stockholders' Deficit , consisted of the following: (in millions) Unrealized Gain on Marketable Securities Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of April 30, 2015 $ 1 $ (213 ) $ (2,072 ) $ (2,284 ) Other comprehensive loss before reclassifications — (47 ) — (47 ) Amounts reclassified out of accumulated other comprehensive loss — — 33 33 Net current-period other comprehensive income (loss) — (47 ) 33 (14 ) Balance as of July 31, 2015 $ 1 $ (260 ) $ (2,039 ) $ (2,298 ) (in millions) Unrealized Gain on Marketable Securities Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of October 31, 2014 $ 1 $ (127 ) $ (2,137 ) $ (2,263 ) Other comprehensive loss before reclassifications — (133 ) — (133 ) Amounts reclassified out of accumulated other comprehensive loss — — 98 98 Net current-period other comprehensive income (loss) — (133 ) 98 (35 ) Balance as of July 31, 2015 $ 1 $ (260 ) $ (2,039 ) $ (2,298 ) (in millions) Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of April 30, 2014 $ (89 ) $ (1,699 ) $ (1,788 ) Other comprehensive income (loss) before reclassifications (3 ) 7 4 Amounts reclassified out of accumulated other comprehensive loss — 26 26 Net current-period other comprehensive income (loss) (3 ) 33 30 Balance as of July 31, 2014 $ (92 ) $ (1,666 ) $ (1,758 ) (in millions) Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of October 31, 2013 $ (75 ) $ (1,749 ) $ (1,824 ) Other comprehensive income (loss) before reclassifications (17 ) 5 (12 ) Amounts reclassified out of accumulated other comprehensive loss — 78 78 Net current-period other comprehensive income (loss) (17 ) 83 66 Balance as of July 31, 2014 $ (92 ) $ (1,666 ) $ (1,758 ) The following table displays the amounts reclassified from Accumulated other comprehensive loss and the affected line item in the Consolidated Statements of Operations: Location in Consolidated Three Months Ended July 31, 2015 Nine Months Ended July 31, 2015 Defined benefit plans Amortization of prior service benefit Selling, general and administrative expenses $ (1 ) $ (3 ) Amortization of actuarial loss Selling, general and administrative expenses 34 102 Total before tax 33 99 Tax expense — (1 ) Total reclassifications for the period, net of tax $ 33 $ 98 Location in Consolidated Three Months Ended July 31, 2014 Nine Months Ended July 31, 2014 Defined benefit plans Amortization of prior service benefit Selling, general and administrative expenses $ (1 ) $ (3 ) Amortization of actuarial loss Selling, general and administrative expenses 28 82 Total before tax 27 79 Tax benefit (1 ) (1 ) Total reclassifications for the period, net of tax $ 26 $ 78 |
Stockholders' Deficit | Location in Consolidated Three Months Ended July 31, 2015 Nine Months Ended July 31, 2015 Defined benefit plans Amortization of prior service benefit Selling, general and administrative expenses $ (1 ) $ (3 ) Amortization of actuarial loss Selling, general and administrative expenses 34 102 Total before tax 33 99 Tax expense — (1 ) Total reclassifications for the period, net of tax $ 33 $ 98 Location in Consolidated Three Months Ended July 31, 2014 Nine Months Ended July 31, 2014 Defined benefit plans Amortization of prior service benefit Selling, general and administrative expenses $ (1 ) $ (3 ) Amortization of actuarial loss Selling, general and administrative expenses 28 82 Total before tax 27 79 Tax benefit (1 ) (1 ) Total reclassifications for the period, net of tax $ 26 $ 78 |
Loss Per Share Attributable to
Loss Per Share Attributable to Navistar International Corporation | 9 Months Ended |
Jul. 31, 2015 | |
Earnings Per Share [Abstract] | |
Loss Per Share Attributable to Navistar International Corporation | Earnings (Loss) Per Share Attributable to Navistar International Corporation The following table presents the information used in the calculation of our basic and diluted income (loss) per share for continuing operations, discontinued operations, and net loss, all attributable to Navistar International Corporation: Three Months Ended July 31, Nine Months Ended July 31, (in millions, except per share data) 2015 2014 2015 2014 Numerator: Amounts attributable to Navistar International Corporation common stockholders: Loss from continuing operations, net of tax $ (30 ) $ (3 ) $ (136 ) $ (550 ) Income from discontinued operations, net of tax 2 1 2 3 Net loss $ (28 ) $ (2 ) $ (134 ) $ (547 ) Denominator: Weighted average shares outstanding: Basic 81.6 81.4 81.5 81.3 Effect of dilutive securities — — — — Diluted 81.6 81.4 81.5 81.3 Earnings (loss) per share attributable to Navistar International Corporation: Basic: Continuing operations $ (0.37 ) $ (0.04 ) $ (1.67 ) $ (6.77 ) Discontinued operations 0.03 0.02 0.03 0.04 Net loss $ (0.34 ) $ (0.02 ) $ (1.64 ) $ (6.73 ) Diluted: Continuing operations $ (0.37 ) $ (0.04 ) $ (1.67 ) $ (6.77 ) Discontinued operations 0.03 0.02 0.03 0.04 Net loss $ (0.34 ) $ (0.02 ) $ (1.64 ) $ (6.73 ) The conversion rate on our 2014 Convertible Notes was 19.891 shares of common stock per $1,000 principal amount of 2014 Convertible Notes, equivalent to an initial conversion price of $50.27 per share of common stock. In connection with the sale of the 2014 Convertible Notes, we sold warrants to various counterparties to purchase shares of our common stock from us at an exercise price of $60.14 per share. The 2014 Convertible Notes and warrants were anti-dilutive when calculating diluted earnings per share when our average stock price is less than $50.27 and $60.14 , respectively. During the second quarter of 2014, the Company unwound warrants representing 6.5 million shares associated with the repurchased 2014 Convertible Notes. On October 15, 2014, upon maturity the 2014 Convertible Notes were repaid in full. During the first quarter of 2015, the Company unwound warrants representing 1.9 million shares associated with the 2014 Convertible Notes, and the remaining 2.9 million warrants expired worthless on April 10, 2015. The conversion rate on our 4.50% Senior Subordinated Convertible Notes due 2018 ("the 2018 Convertible Notes") is 17.1233 shares of common stock per $1,000 principal amount of 2018 Convertible Notes, equivalent to an initial conversion price of approximately $58.40 per share of common stock. The 2018 Convertible Notes are anti-dilutive when calculating diluted earnings per share when our average stock price is less than $58.40 . The conversion rate on our 2019 Convertible Notes is 18.4946 shares of common stock per $1,000 principal amount of 2019 Convertible Notes, equivalent to an initial conversion price of approximately $54.07 per share of common stock. The 2019 Convertible Notes are anti-dilutive when calculating diluted earnings per share when our average stock price is less than $54.07 . The computation of diluted earnings per share also excludes outstanding options and other common stock equivalents in periods where inclusion of such potential common stock instruments would be anti-dilutive. For the three and nine months ended July 31, 2015 and 2014 , no dilutive securities were included in the computation of diluted loss per share since they would have been anti-dilutive due to the net loss attributable to Navistar International Corporation. Additionally, certain securities have been excluded from the computation of earnings per share, as our average stock price was less than their respective exercise prices. For both the three and nine months ended July 31, 2015 , the aggregate shares not included were 15.0 million and 16.0 million , respectively. For the three and nine months ended July 31, 2014 , the aggregate shares not included were 23.8 million and 26.2 million , respectively. For both the three and nine months ended July 31, 2015 , the aggregate shares not included in the computation of earnings per share were primarily comprised of 3.4 million shares related to the 2018 Convertible Notes, and 7.6 million shares related to the 2019 Convertible Notes. For the three months ended July 31, 2014 , the aggregate shares not included in the computation of earnings per share were primarily comprised of 4.8 million shares related to the warrants associated with the 2014 Convertible Notes, 3.3 million shares related to the 2014 Convertible Notes, 3.4 million shares related to the 2018 Convertible Notes, and 7.6 million shares related to the 2019 Convertible Notes. For the nine months ended July 31, 2014 , the aggregate shares not included in the computation of earnings per share were primarily comprised of 7.0 million shares related to the warrants associated with the 2014 Convertible Notes, 6.0 million shares related to the 2014 Convertible Notes, 3.4 million shares related to the 2018 Convertible Notes, and 5.1 million shares related to the 2019 Convertible Notes. |
Condensed Consolidating Guarant
Condensed Consolidating Guarantor and Non-Guarantor Financial Information | 9 Months Ended |
Jul. 31, 2015 | |
Condensed Consolidating Guarantor and Non-Guarantor [Abstract] | |
Condensed Consolidating Guarantor and Non-guarantor Financial Information | Consolidating Guarantor and Non-guarantor Financial Information The following tables set forth condensed consolidating balance sheets as of July 31, 2015 and October 31, 2014 , and condensed consolidating statements of operations and condensed consolidating statements of comprehensive income (loss) for the three and nine months ended July 31, 2015 and 2014 , and condensed consolidating statements of cash flows for the nine months ended July 31, 2015 and 2014 . The information is presented as a result of Navistar, Inc.’s guarantee, exclusive of its subsidiaries, of NIC’s indebtedness under our 8.25% Senior Notes, due 2021, and obligations under our Loan Agreement related to the 6.5% Tax Exempt Bonds, due 2040. Navistar, Inc. is a direct wholly-owned subsidiary of NIC. None of NIC’s other subsidiaries guarantee any of these notes or bonds. The guarantees are "full and unconditional", as those terms are used in Regulation S-X Rule 3-10, except that the guarantees will be automatically released in certain customary circumstances, such as when the subsidiary is sold or all of the assets of the subsidiary are sold, the capital stock is sold, when the subsidiary is designated as an "unrestricted subsidiary" for purposes of the respective indenture for each of the 8.25% Senior Notes, due 2021, and the 6.5% Tax Exempt Bonds, due 2040, upon liquidation or dissolution of the subsidiary or upon legal or covenant defeasance, or satisfaction and discharge of the notes or bonds. Separate financial statements and other disclosures concerning Navistar, Inc. have not been presented because management believes that such information is not material to investors. Within this disclosure only, "NIC" includes the financial results of the parent company only, with all of its wholly-owned subsidiaries accounted for under the equity method. Likewise, "Navistar, Inc.," for purposes of this disclosure only, includes the consolidated financial results of its wholly-owned subsidiaries accounted for under the equity method and its operating units accounted for on a consolidated basis. "Non-Guarantor Subsidiaries" includes the combined financial results of all other non-guarantor subsidiaries. "Eliminations and Other" includes all eliminations and reclassifications to reconcile to the consolidated financial statements. NIC files a consolidated U.S. federal income tax return that includes Navistar, Inc. and its U.S. subsidiaries. Navistar, Inc. has a tax allocation agreement ("Tax Agreement") with NIC which requires Navistar, Inc. to compute its separate federal income tax liability and remit any resulting tax liability to NIC. Tax benefits that may arise from net operating losses of Navistar, Inc. are not refunded to Navistar, Inc. but may be used to offset future required tax payments under the Tax Agreement. The effect of the Tax Agreement is to allow NIC, the parent company, rather than Navistar, Inc., to utilize current U.S. taxable losses of Navistar, Inc. and all other direct or indirect subsidiaries of NIC. Condensed Consolidating Statement of Operations for the Three Months Ended July 31, 2015 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Sales and revenues, net $ — $ 1,892 $ 1,875 $ (1,229 ) $ 2,538 Costs of products sold — 1,752 1,627 (1,207 ) 2,172 Restructuring charges — 5 8 — 13 Asset impairment charges — — 7 — 7 All other operating expenses (income) 12 262 102 (16 ) 360 Total costs and expenses 12 2,019 1,744 (1,223 ) 2,552 Equity in income (loss) of affiliates (16 ) 76 2 (59 ) 3 Income (loss) before income taxes (28 ) (51 ) 133 (65 ) (11 ) Income tax expense — (1 ) (11 ) — (12 ) Earnings (loss) from continuing operations (28 ) (52 ) 122 (65 ) (23 ) Income from discontinued operations, net of tax — — 2 — 2 Net income (loss) (28 ) (52 ) 124 (65 ) (21 ) Less: Net income attributable to non-controlling interests — — 7 — 7 Net income (loss) attributable to Navistar International Corporation $ (28 ) $ (52 ) $ 117 $ (65 ) $ (28 ) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended July 31, 2015 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net income (loss) attributable to Navistar International Corporation $ (28 ) $ (52 ) $ 117 $ (65 ) $ (28 ) Other comprehensive income (loss): Foreign currency translation adjustment (47 ) — (47 ) 47 (47 ) Defined benefit plans (net of tax of $0, for all entities) 33 8 25 (33 ) 33 Total other comprehensive income (loss) (14 ) 8 (22 ) 14 (14 ) Total comprehensive income (loss) attributable to Navistar International Corporation $ (42 ) $ (44 ) $ 95 $ (51 ) $ (42 ) Condensed Consolidating Statement of Operations for the Nine Months Ended July 31, 2015 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Sales and revenues, net $ — $ 5,511 $ 5,586 $ (3,445 ) $ 7,652 Costs of products sold — 5,025 4,932 (3,380 ) 6,577 Restructuring charges — 8 14 — 22 Asset impairment charges — 8 7 — 15 All other operating expenses (income) 62 808 306 (56 ) 1,120 Total costs and expenses 62 5,849 5,259 (3,436 ) 7,734 Equity in income (loss) of affiliates (72 ) 155 3 (80 ) 6 Income (loss) before income taxes (134 ) (183 ) 330 (89 ) (76 ) Income tax expense — (3 ) (34 ) — (37 ) Earnings (loss) from continuing operations (134 ) (186 ) 296 (89 ) (113 ) Income from discontinued operations, net of tax — — 2 — 2 Net income (loss) (134 ) (186 ) 298 (89 ) (111 ) Less: Net income attributable to non-controlling interests — — 23 — 23 Net income (loss) attributable to Navistar International Corporation $ (134 ) $ (186 ) $ 275 $ (89 ) $ (134 ) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Nine Months Ended July 31, 2015 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net income (loss) attributable to Navistar International Corporation $ (134 ) $ (186 ) $ 275 $ (89 ) $ (134 ) Other comprehensive income (loss): Foreign currency translation adjustment (133 ) — (133 ) 133 (133 ) Defined benefit plans (net of tax of $(1), $14, $(15), $1, and $(1), respectively) 98 70 28 (98 ) 98 Total other comprehensive income (loss) (35 ) 70 (105 ) 35 (35 ) Total comprehensive income (loss) attributable to Navistar International Corporation $ (169 ) $ (116 ) $ 170 $ (54 ) $ (169 ) Condensed Consolidating Balance Sheet as of July 31, 2015 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ 226 $ 44 $ 277 $ — $ 547 Marketable securities 149 — 144 — 293 Restricted cash 17 3 337 — 357 Finance and other receivables, net 3 142 2,271 (22 ) 2,394 Inventories — 731 481 (13 ) 1,199 Investments in non-consolidated affiliates (7,352 ) 6,570 67 786 71 Property and equipment, net — 751 633 (9 ) 1,375 Goodwill — — 38 — 38 Deferred taxes, net (A) 5 9 149 — 163 Other 35 133 166 (2 ) 332 Total assets $ (6,917 ) $ 8,383 $ 4,563 $ 740 $ 6,769 Liabilities and stockholders’ equity (deficit) Debt $ 1,968 $ 872 $ 2,449 $ (3 ) $ 5,286 Postretirement benefits liabilities (A) — 2,651 189 — 2,840 Amounts due to (from) affiliates (7,669 ) 12,082 (4,590 ) 177 — Other liabilities 3,600 202 (275 ) (75 ) 3,452 Total liabilities (2,101 ) 15,807 (2,227 ) 99 11,578 Redeemable equity securities 1 — — — 1 Stockholders’ equity attributable to non-controlling interest — — 7 — 7 Stockholders’ equity (deficit) attributable to Navistar International Corporation (A) (4,817 ) (7,424 ) 6,783 641 (4,817 ) Total liabilities and stockholders’ equity (deficit) $ (6,917 ) $ 8,383 $ 4,563 $ 740 $ 6,769 Condensed Consolidating Statement of Cash Flows for the Nine Months Ended July 31, 2015 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net cash provided by (used in) operations $ (106 ) $ 282 $ 62 $ (252 ) $ (14 ) Cash flows from investment activities Net change in restricted cash and cash equivalents 1 1 (194 ) — (192 ) Net sales of marketable securities 230 — 82 — 312 Capital expenditures and purchase of equipment leased to others — (52 ) (78 ) — (130 ) Other investing activities — 3 12 — 15 Net cash provided by (used in) investment activities 231 (48 ) (178 ) — 5 Cash flows from financing activities Net borrowings (repayments) of debt — (189 ) 176 126 113 Other financing activities — (54 ) (99 ) 126 (27 ) Net cash provided by (used in) financing activities — (243 ) 77 252 86 Effect of exchange rate changes on cash and cash equivalents — — (27 ) — (27 ) Increase (decrease) in cash and cash equivalents 125 (9 ) (66 ) — 50 Cash and cash equivalents at beginning of the period 101 53 343 — 497 Cash and cash equivalents at end of the period $ 226 $ 44 $ 277 $ — $ 547 Condensed Consolidating Statement of Operations for the Three Months Ended July 31, 2014 (in millions) NIC Navistar, Inc. Non-Guarantor Subsidiaries Eliminations and Other Consolidated Sales and revenues, net $ — $ 1,962 $ 2,181 $ (1,299 ) $ 2,844 Costs of products sold — 1,761 1,938 (1,282 ) 2,417 Restructuring charges — (1 ) 17 — 16 Asset impairment charges — 13 (11 ) 2 4 All other operating expenses (income) 17 246 141 (16 ) 388 Total costs and expenses 17 2,019 2,085 (1,296 ) 2,825 Equity in income (loss) of affiliates 15 17 1 (31 ) 2 Income (loss) before income taxes (2 ) (40 ) 97 (34 ) 21 Income tax expense — (2 ) (12 ) — (14 ) Earnings (loss) from continuing operations (2 ) (42 ) 85 (34 ) 7 Income from discontinued operations, net of tax — — 1 — 1 Net income (loss) (2 ) (42 ) 86 (34 ) 8 Less: Net income attributable to non-controlling interests — — 10 — 10 Net income (loss) attributable to Navistar International Corporation $ (2 ) $ (42 ) $ 76 $ (34 ) $ (2 ) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended July 31, 2014 (in millions) NIC Navistar, Inc. Non-Guarantor Subsidiaries Eliminations and Other Consolidated Net income (loss) attributable to Navistar International Corporation $ (2 ) $ (42 ) $ 76 $ (34 ) $ (2 ) Other comprehensive income (loss): Foreign currency translation adjustment (3 ) — (3 ) 3 (3 ) Defined benefit plans (net of tax of $(3), $0, $(3), $3, and $(3), respectively) 33 23 10 (33 ) 33 Total other comprehensive income (loss) 30 23 7 (30 ) 30 Total comprehensive income (loss) attributable to Navistar International Corporation $ 28 $ (19 ) $ 83 $ (64 ) $ 28 Condensed Consolidating Statement of Operations for the Nine Months Ended July 31, 2014 (in millions) NIC Navistar, Inc. Non-Guarantor Subsidiaries Eliminations and Other Consolidated Sales and revenues, net $ — $ 5,279 $ 5,971 $ (3,452 ) $ 7,798 Costs of products sold — 4,983 5,331 (3,415 ) 6,899 Restructuring charges — 9 18 — 27 Asset impairment charges — 13 160 — 173 All other operating expenses (income) 94 760 389 (44 ) 1,199 Total costs and expenses 94 5,765 5,898 (3,459 ) 8,298 Equity in income (loss) of affiliates (466 ) (135 ) 2 604 5 Income (loss) before income taxes (560 ) (621 ) 75 611 (495 ) Income tax benefit (expense) 13 (3 ) (35 ) — (25 ) Earnings (loss) from continuing operations (547 ) (624 ) 40 611 (520 ) Income from discontinued operations, net of tax — — 3 — 3 Net income (loss) (547 ) (624 ) 43 611 (517 ) Less: Net income attributable to non-controlling interests — — 30 — 30 Net income (loss) attributable to Navistar International Corporation $ (547 ) $ (624 ) $ 13 $ 611 $ (547 ) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Nine Months Ended July 31, 2014 (in millions) NIC Navistar, Inc. Non-Guarantor Subsidiaries Eliminations and Other Consolidated Net income (loss) attributable to Navistar International Corporation $ (547 ) $ (624 ) $ 13 $ 611 $ (547 ) Other comprehensive income (loss): Foreign currency translation adjustment (17 ) — (17 ) 17 (17 ) Defined benefit plans (net of tax of $(4) $0, $(4), $4, and $(4), respectively) 83 73 10 (83 ) 83 Total other comprehensive income (loss) 66 73 (7 ) (66 ) 66 Total comprehensive income (loss) attributable to Navistar International Corporation $ (481 ) $ (551 ) $ 6 $ 545 $ (481 ) Condensed Consolidating Balance Sheet as of October 31, 2014 (in millions) NIC Navistar, Non-Guarantor Eliminations 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 (A) 5 25 169 1 200 Other 34 137 194 (3 ) 362 Total assets $ (6,707 ) $ 8,372 $ 4,972 $ 806 $ 7,443 Liabilities and stockholders’ equity (deficit) Debt $ 1,958 $ 937 $ 2,336 $ (7 ) $ 5,224 Postretirement benefits liabilities (A) — 2,752 203 — 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 ) 15,798 (1,750 ) 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 (A) (4,654 ) (7,426 ) 6,688 738 (4,654 ) Total liabilities and stockholders’ equity (deficit) $ (6,707 ) $ 8,372 $ 4,972 $ 806 $ 7,443 _________________________ (A) During the third quarter of 2015, it was determined that multiemployer plan accounting should have been applied in recording postretirement benefits related to our Financial Services segment, which provides that assets and liabilities of a plan are recorded only on the parent company and that periodic contributions to the plan made by the participating subsidiary are charged to expense for the purposes of the subsidiary's financial statements. As a result, we have reclassified $40 million of postretirement benefits, and related deferred taxes and Accumulated Other Comprehensive Income impact, between NIC and Non-Guarantor Subsidiaries. This reclassification did not impact the consolidated financial position for the year-ended October 31, 2014. Condensed Consolidating Statement of Cash Flows for the Nine Months Ended July 31, 2014 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net cash provided by (used in) operations $ (528 ) $ (1,078 ) $ 156 $ 1,106 $ (344 ) Cash flows from investment activities Net change in restricted cash and cash equivalents 6 — (36 ) — (30 ) Net sales of marketable securities 315 — (103 ) — 212 Capital expenditures and purchase of equipment leased to others — (89 ) (125 ) — (214 ) Other investing activities — 22 24 — 46 Net cash provided by (used in) investment activities 321 (67 ) (240 ) — 14 Cash flows from financing activities Net borrowings (repayments) of debt (11 ) 1,067 192 (1,136 ) 112 Other financing activities 18 44 (70 ) 30 22 Net cash provided by (used in) financing activities 7 1,111 122 (1,106 ) 134 Effect of exchange rate changes on cash and cash equivalents — — (12 ) — (12 ) Increase (decrease) in cash and cash equivalents (200 ) (34 ) 26 — (208 ) Cash and cash equivalents at beginning of the period 336 72 347 — 755 Cash and cash equivalents at end of the period $ 136 $ 38 $ 373 $ — $ 547 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jul. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying unaudited consolidated financial statements include the assets, liabilities, and results of operations of our Manufacturing operations, which include majority-owned dealers ("Dealcors"), and our Financial Services operations, including VIEs of which we are the primary beneficiary. The effects of transactions among consolidated entities have been eliminated to arrive at the consolidated amounts. Certain reclassifications were made to prior period amounts to conform to the 2015 presentation, which relate to the realignment of our reporting segments that became effective during the first quarter of 2015. For more information, see Note 12, Segment Reporting . In addition, reclassifications were made to present the net change in secured revolving credit facilities as a separate line rather than within proceeds from issuance of securitized debt and principal payments on securitized debt on the Condensed Statements of Cash Flows. This reclassification did not have an impact on our Condensed Statements of Cash Flows . We prepared the accompanying unaudited consolidated financial statements in accordance with United States ("U.S.") generally accepted accounting principles ("U.S. GAAP") for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and notes required by U.S. GAAP for comprehensive annual financial statements. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting policies described in our Annual Report on Form 10-K for the year ended October 31, 2014 , which should be read in conjunction with the disclosures therein. In our opinion, these interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial condition, results of operations, and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of annual operating results. |
Variable Interest Entities | Variable Interest Entities We have an interest in several VIEs, primarily joint ventures, established to manufacture or distribute products and enhance our operational capabilities. We have determined for certain of our VIEs that we are the primary beneficiary because we have the power to direct the activities of the VIE that most significantly impact its economic performance and we have the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE. Accordingly, we include in our consolidated financial statements the assets and liabilities and results of operations of those entities, even though we may not own a majority voting interest. The liabilities recognized as a result of consolidating these VIEs do not represent additional claims on our general assets; rather they represent claims against the specific assets of these VIEs. Assets of these entities are not readily available to satisfy claims against our general assets. We are the primary beneficiary of our Blue Diamond Parts ("BDP") joint venture with Ford. As a result, our Consolidated Balance Sheets include assets of $56 million and $57 million and liabilities of $13 million and $5 million as of July 31, 2015 and October 31, 2014 , respectively, including $15 million and $11 million of cash and cash equivalents, at the respective dates, which are not readily available to satisfy claims against our general assets. The creditors of BDP do not have recourse to our general credit. On May 29, 2015, we acquired Ford's remaining 25% ownership in our Blue Diamond Truck ("BDT") joint venture for $27 million . The acquisition of Ford's remaining ownership of the BDT joint venture did not have a material impact on our consolidated net loss for the three months ended July 31, 2015. Prior to the acquisition of Ford's remaining ownership, we were the primary beneficiary of our BDT joint venture with Ford. As a result, our Consolidated Balance Sheets at October 31, 2014 include assets of $240 million and liabilities of $245 million , including $66 million of cash and cash equivalents, which were not readily available to satisfy claims against our general assets. Our Financial Services segment consolidates several VIEs. As a result, our Consolidated Balance Sheets include secured assets of $1.3 billion and $1.1 billion as of July 31, 2015 and October 31, 2014 , respectively, and liabilities of $1.1 billion and $896 million as of July 31, 2015 and October 31, 2014 , respectively, all of which are involved in securitizations that are treated as asset-backed debt. In addition, our Consolidated Balance Sheets include secured assets of $207 million and $156 million and corresponding liabilities of $85 million and $54 million as of July 31, 2015 and October 31, 2014 , respectively, which are related to other secured transactions that do not qualify for sale accounting treatment, and therefore, are treated as borrowings secured by operating and finance leases. Investors that hold securitization debt have a priority claim on the cash flows generated by their respective securitized assets to the extent that the related VIEs are required to make principal and interest payments. Investors in securitizations of these entities have no recourse to our general credit. We also have an interest in other VIEs, which we do not consolidate because we are not the primary beneficiary. Our financial support and maximum loss exposure relating to these non-consolidated VIEs are not material to our financial condition, results of operations, or cash flows. We use the equity method to account for our investments in entities that we do not control under the voting interest or variable interest models, but where we have the ability to exercise significant influence over operating and financial policies. Equity in income of non-consolidated affiliates includes our share of the net income of these entities. |
Equity Method Investments, Policy [Policy Text Block] | We use the equity method to account for our investments in entities that we do not control under the voting interest or variable interest models, but where we have the ability to exercise significant influence over operating and financial policies. Equity in income of non-consolidated affiliates includes our share of the net income of these entities. Product Warranty Liability The following table presents accrued product warranty and deferred warranty revenue activity: Nine Months Ended July 31, (in millions) 2015 2014 Balance at beginning of period $ 1,197 $ 1,349 Costs accrued and revenues deferred 177 235 Currency translation adjustment (7 ) (2 ) Adjustments to pre-existing warranties (A) (38 ) 65 Payments and revenues recognized (313 ) (391 ) Balance at end of period 1,016 1,256 Less: Current portion 466 578 Noncurrent accrued product warranty and deferred warranty revenue $ 550 $ 678 _________________________ (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. Adjustments to pre-existing warranties in the third quarter and nine months ended July 31, 2015 include a benefit of $2 million related to our Workhorse Custom Chassis operations, which are reported in Discontinued Operations in the Consolidated Statements of Operations. In the first quarter of 2015, we recognized a benefit for adjustments to pre-existing warranties of $57 million or a benefit of $0.70 per diluted share. In the first quarter of 2014, we recorded adjustments for changes in estimates of $52 million or charges of $0.64 per diluted share. In the second quarter of 2014, we recorded adjustments for changes in estimates of $42 million , or charges of $0.52 per diluted share. In the third quarter of 2014, we recognized a benefit for adjustments to pre-existing warranties of $29 million , or a benefit of $0.36 per diluted share. The impact of income taxes on the 2015 and 2014 adjustments are not material due to our deferred tax valuation allowances on our U.S. deferred tax assets. Extended Warranty Programs The amount of deferred revenue related to extended warranty programs was $419 million and $437 million at July 31, 2015 and October 31, 2014 , respectively. Revenue recognized under our extended warranty programs was $40 million and $115 million , in the three and nine months ended July 31, 2015 , respectively, and $36 million and $96 million for the three and nine months ended July 31, 2014 , respectively. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the periods presented. Significant estimates and assumptions are used for, but are not limited to, pension and other postretirement benefits, allowance for doubtful accounts, income tax contingency accruals and valuation allowances, product warranty accruals, asbestos and other product liability accruals, asset impairment charges, and litigation-related accruals. Actual results could differ from our estimates. Concentration Risks Our financial condition, results of operations, and cash flows are subject to concentration risks related to concentrations of our union employees. As of July 31, 2015 , approximately 6,000 , or 73% , of our hourly workers and approximately 200 , or 3% , of our salaried workers are represented by labor unions and are covered by collective bargaining agreements. Our future operations may be affected by changes in governmental procurement policies, budget considerations, changing national defense requirements, and global, political, regulatory and economic developments in the U.S. and certain foreign countries (primarily Canada, Mexico, and Brazil). Goodwill and Indefinite-Lived Intangible Assets Goodwill represents the excess of the cost of an acquired business over the amounts assigned to the net assets. Goodwill is not amortized but is tested for impairment at a reporting unit level on an annual basis or more frequently, if circumstances change or an event occurs that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Qualitative factors may be assessed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If the qualitative assessment indicates that the carrying amount is more likely than not higher than the fair value, goodwill is tested for impairment based on a two-step test. The first step compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired, thus the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test shall be performed to measure the amount of impairment loss, if any. The second step compares the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to that excess. Significant judgment is applied when goodwill is assessed for impairment. This judgment includes developing cash flow projections, selecting appropriate discount rates, identifying relevant market comparables, incorporating general economic and market conditions, and selecting an appropriate control premium. The income approach is based on discounted cash flows which are derived from internal forecasts and economic expectations for each respective reporting unit. An intangible asset determined to have an indefinite useful life is not amortized until its useful life is determined to no longer be indefinite. Indefinite-lived intangible assets are evaluated each reporting period to determine whether events and circumstances continue to support an indefinite useful life. Indefinite-lived intangible assets are tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test consists of a comparison of the fair value of the indefinite-lived intangible asset with its carrying amount. If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Significant judgment is applied when evaluating if an intangible asset has a finite useful life. In addition, for indefinite-lived intangible assets, significant judgment is applied in testing for impairment. This judgment includes developing cash flow projections, selecting appropriate discount rates, identifying relevant market comparables, and incorporating general economic and market conditions. During the third quarter of 2015, the economic downturn in Brazil resulted in the continued decline in actual and forecasted results for the Brazilian engine reporting unit with an indefinite-lived intangible asset, trademark, of $24 million . As a result, we performed an impairment analysis in the third quarter of 2015 utilizing the income approach, based on discounted cash flows, which are derived from internal forecasts and economic expectations. It was determined that the carrying value of the trademark exceeded its fair value. As a result, we determined that the trademark was impaired and recognized an impairment charge of $3 million . The non-cash impairment charges were included in Asset impairment charges in the Company's Consolidated Statements of Operations. The Brazilian engine reporting unit is included in the Global Operations segment. During the second quarter of 2014, the economic downturn in Brazil resulted in the continued decline in actual and forecasted results for the Brazilian engine reporting unit with goodwill of $142 million and an indefinite-lived intangible asset, trademark, of $43 million . As a result, we performed an impairment analysis in the second quarter of 2014 utilizing the income approach, based on discounted cash flows, which are derived from internal forecasts and economic expectations. It was determined that the carrying value of the Brazilian engine reporting unit, including goodwill, exceeded its fair value. As a result we compared the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. A decrease in the enterprise value of the reporting unit coupled with appreciation in the value of certain tangible assets, which are not recognized for accounting purposes, resulted in the determination that the entire $142 million of goodwill was impaired. In addition, we determined that the related trademark was impaired and recognized an impairment charge of $7 million . The non-cash impairment charges were included in Asset impairment charges in the Company's Consolidated Statements of Operations. The Brazilian engine reporting unit is included in the Global Operations segment. Recently Adopted Accounting Standards In the nine months ended July 31, 2015 , the Company has not adopted any new accounting guidance that has had a material impact on our consolidated financial statements. Recently Issued Accounting Standards |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the periods presented. Significant estimates and assumptions are used for, but are not limited to, pension and other postretirement benefits, allowance for doubtful accounts, income tax contingency accruals and valuation allowances, product warranty accruals, asbestos and other product liability accruals, asset impairment charges, and litigation-related accruals. Actual results could differ from our estimates. |
Concentration Risk Disclosure [Text Block] | Concentration Risks Our financial condition, results of operations, and cash flows are subject to concentration risks related to concentrations of our union employees. As of July 31, 2015 , approximately 6,000 , or 73% , of our hourly workers and approximately 200 , or 3% , of our salaried workers are represented by labor unions and are covered by collective bargaining agreements. Our future operations may be affected by changes in governmental procurement policies, budget considerations, changing national defense requirements, and global, political, regulatory and economic developments in the U.S. and certain foreign countries (primarily Canada, Mexico, and Brazil). |
Restructuring and Impairments (
Restructuring and Impairments (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | The following table reconciles our impairment charges in our Consolidated Statements of Operations Three Months Ended July 31, Nine Months Ended July 31, (in millions) 2015 2014 2015 2014 Goodwill impairment charge $ — $ — $ — $ 142 Intangible asset impairment charge 3 — 3 7 Other asset impairment charges related to continuing operations 4 4 12 24 Total asset impairment charges $ 7 $ 4 $ 15 $ 173 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following tables summarize the activity in the restructuring liability, which includes amounts related to discontinued operations and excludes pension and other postretirement contractual termination benefits: (in millions) Balance at October 31, 2014 Additions Payments Adjustments Balance at July 31, 2015 Employee termination charges $ 8 $ 17 $ (7 ) $ (2 ) $ 16 Lease vacancy 11 — (6 ) — 5 Other 1 2 (2 ) — 1 Restructuring liability $ 20 $ 19 $ (15 ) $ (2 ) $ 22 (in millions) Balance at Additions Payments Adjustments Balance at July 31, 2014 Employee termination charges $ 15 $ 12 $ (12 ) $ (2 ) $ 13 Employee relocation costs — 1 (1 ) — — Lease vacancy 18 1 (6 ) — 13 Other 1 — (2 ) — (1 ) Restructuring liability $ 34 $ 14 $ (21 ) $ (2 ) $ 25 |
Finance Receivables (Tables)
Finance Receivables (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Our Finance receivables, net consist of the following: (in millions) July 31, 2015 October 31, 2014 Retail portfolio $ 606 $ 726 Wholesale portfolio 1,372 1,339 Total finance receivables 1,978 2,065 Less: Allowance for doubtful accounts 28 27 Total finance receivables, net 1,950 2,038 Less: Current portion, net (A) 1,737 1,758 Noncurrent portion, net $ 213 $ 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. |
Finance Revenues Derived From Receivables [Table Text Block] | The following table presents the components of our Finance revenues : Three Months Ended July 31, Nine Months Ended July 31, (in millions) 2015 2014 2015 2014 Retail notes and finance leases revenue $ 12 $ 16 $ 37 $ 49 Wholesale notes interest 27 22 75 59 Operating lease revenue 16 15 46 44 Retail and wholesale accounts interest 8 7 25 20 Gross finance revenues 63 60 183 172 Less: Intercompany revenues (26 ) (22 ) (75 ) (57 ) Finance revenues $ 37 $ 38 $ 108 $ 115 |
Allowance for Doubtful Accoun27
Allowance for Doubtful Accounts (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Allowance for Doubtful Accounts [Abstract] | |
Allowance For Credit Losses On Receivables [Table Text Block] | The following tables present the activity related to our allowance for doubtful accounts for our retail portfolio segment, wholesale portfolio segment, and trade and other receivables: Three Months Ended July 31, 2015 Three Months Ended July 31, 2014 (in millions) Retail Wholesale Trade and Total Retail Wholesale Trade and Total Allowance for doubtful accounts, at beginning of period $ 25 $ 3 $ 30 $ 58 $ 22 $ 2 $ 38 $ 62 Provision for doubtful accounts, net of recoveries 2 — — 2 3 — — 3 Charge-off of accounts (A) — — (1 ) (1 ) (2 ) — (3 ) (5 ) Other (B) (2 ) — (3 ) (5 ) 1 — (1 ) — Allowance for doubtful accounts, at end of period $ 25 $ 3 $ 26 $ 54 $ 24 $ 2 $ 34 $ 60 Nine Months Ended July 31, 2015 Nine Months Ended July 31, 2014 (in millions) Retail Wholesale Trade and Total Retail Wholesale Trade and Total Allowance for doubtful accounts, at beginning of period $ 24 $ 3 $ 38 $ 65 $ 21 $ 2 $ 37 $ 60 Provision for doubtful accounts, net of recoveries 7 — — 7 10 — 3 13 Charge-off of accounts (A) (1 ) — (4 ) (5 ) (7 ) — (5 ) (12 ) Other (B) (5 ) — (8 ) (13 ) — — (1 ) (1 ) Allowance for doubtful accounts, at end of period $ 25 $ 3 $ 26 $ 54 $ 24 $ 2 $ 34 $ 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 , for the three and nine months ended July 31, 2015 , as well as for the three and nine months ended July 31, 2014 |
Impaired Financing Receivables [Table Text Block] | The following table presents information regarding impaired finance receivables: July 31, 2015 October 31, 2014 (in millions) Retail Wholesale Total Retail Wholesale Total Impaired finance receivables with specific loss reserves $ 21 $ — $ 21 $ 20 $ — $ 20 Impaired finance receivables without specific loss reserves — — — 1 — 1 Specific loss reserves on impaired finance receivables 10 — 10 6 — 6 Finance receivables on non-accrual status 21 — 21 21 — 21 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | The Company uses the aging of its receivables as well as other inputs when assessing credit quality. The following table presents the aging analysis for finance receivables: July 31, 2015 October 31, 2014 (in millions) Retail Wholesale Total Retail Wholesale Total Current, and up to 30 days past due $ 531 $ 1,369 $ 1,900 $ 643 $ 1,333 $ 1,976 30-90 days past due 58 2 60 64 2 66 Over 90 days past due 17 1 18 19 4 23 Total finance receivables $ 606 $ 1,372 $ 1,978 $ 726 $ 1,339 $ 2,065 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | The following table presents the components of Inventories : (in millions) July 31, October 31, Finished products $ 772 $ 880 Work in process 66 50 Raw materials 361 389 Total inventories $ 1,199 $ 1,319 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | (in millions) July 31, 2015 October 31, 2014 Manufacturing operations Senior Secured Term Loan Credit Facility, as amended, due 2017, net of unamortized discount of $2 and $3, respectively $ 695 $ 694 8.25% Senior Notes, due 2021, net of unamortized discount of $18 and $20, respectively 1,182 1,180 4.50% Senior Subordinated Convertible Notes, due 2018, net of unamortized discount of $16 and $19, respectively 184 181 4.75% Senior Subordinated Convertible Notes, due 2019, net of unamortized discount of $34 and $40, respectively 377 371 Debt of majority-owned dealerships 26 30 Financing arrangements and capital lease obligations 48 54 Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040 225 225 Promissory Note 3 10 Financed lease obligations 129 184 Other 19 29 Total Manufacturing operations debt 2,888 2,958 Less: Current portion 100 100 Net long-term Manufacturing operations debt $ 2,788 $ 2,858 (in millions) July 31, 2015 October 31, 2014 Financial Services operations Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2018 $ 1,135 $ 914 Bank revolvers, at fixed and variable rates, due dates from 2015 through 2020 1,147 1,242 Commercial paper, at variable rates, program matures in 2017 90 74 Borrowings secured by operating and finance leases, at various rates, due serially through 2018 26 36 Total Financial Services operations debt 2,398 2,266 Less: Current portion 990 1,195 Net long-term Financial Services operations debt $ 1,408 $ 1,071 |
Postretirement Benefits (Tables
Postretirement Benefits (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | Three Months Ended July 31, Nine Months Ended July 31, Pension Benefits Health and Life Pension Benefits Health and Life (in millions) 2015 2014 2015 2014 2015 2014 2015 2014 Service cost for benefits earned during the period $ 3 $ 3 $ 2 $ 2 $ 9 $ 9 $ 5 $ 4 Interest on obligation 35 39 17 17 106 118 53 51 Amortization of cumulative loss 25 23 10 4 74 70 29 12 Amortization of prior service benefit — — (1 ) (1 ) — — (3 ) (3 ) Contractual termination benefits — 14 — — (1 ) 14 (1 ) — Premiums on pension insurance 3 — — — 8 — — — Expected return on assets (48 ) (48 ) (7 ) (8 ) (145 ) (144 ) (22 ) (24 ) Net postretirement benefits expense $ 18 $ 31 $ 21 $ 14 $ 51 $ 67 $ 61 $ 40 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial instruments measured at fair value, recurring basis | The following table presents the financial instruments measured at fair value on a recurring basis: July 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 $ 188 $ — $ — $ 188 $ 256 $ — $ — $ 256 Other 105 — — 105 349 — — 349 Derivative financial instruments: Foreign currency contracts (A) — 5 — 5 — — — — Interest rate caps (B) — — — — — 1 — 1 Total assets $ 293 $ 5 $ — $ 298 $ 605 $ 1 $ — $ 606 Liabilities Derivative financial instruments: Commodity forward contracts (C) $ — $ 4 $ — $ 4 $ — $ 2 $ — $ 2 Guarantees — — 10 10 — — 8 8 Total liabilities $ — $ 4 $ 10 $ 14 $ — $ 2 $ 8 $ 10 |
Financial instruments classified within Level 3 | Nine Months Ended July 31, (in millions) 2015 2014 Guarantees, at November 1 $ (8 ) $ (6 ) Transfers out of Level 3 — — Issuances (4 ) — Settlements 2 — Guarantees, at July 31 $ (10 ) $ (6 ) Change in unrealized gains on assets and liabilities still held $ — $ — The following table presents the changes for those financial instruments classified within Level 3 of the valuation hierarchy: Three Months Ended July 31, (in millions) 2015 2014 Guarantees, at May 1 $ (7 ) $ (6 ) Transfers out of Level 3 — — Issuances (4 ) — Settlements 1 — Guarantees, at July 31 $ (10 ) $ (6 ) Change in unrealized gains on assets and liabilities still held $ — $ — |
Financial instruments measured at fair value, nonrecurring basis | The following table presents the financial instruments measured at fair value on a nonrecurring basis: (in millions) July 31, 2015 October 31, 2014 Level 2 financial instruments Carrying value of impaired finance receivables (A) $ 21 $ 20 Specific loss reserve (10 ) (6 ) Fair value $ 11 $ 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. |
Carrying values and estimated fair values of financial instruments | The following tables present the carrying values and estimated fair values of financial instruments: As of July 31, 2015 Estimated Fair Value Carrying Value (in millions) Level 1 Level 2 Level 3 Total Assets Retail notes $ — $ — $ 195 $ 195 $ 188 Notes receivable — — 5 5 5 Liabilities Debt: Manufacturing operations Senior Secured Term Loan Credit Facility, as Amended, due 2017 — — 697 697 695 8.25% Senior Notes, due 2021 1,150 — — 1,150 1,182 4.50% Senior Subordinated Convertible Notes, due 2018 (A) — — 166 166 184 4.75% Senior Subordinated Convertible Notes, due 2019 (A) — — 333 333 377 Debt of majority-owned dealerships — — 26 26 26 Financing arrangements — — 19 19 44 Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040 — — 243 243 225 Promissory Note — — 3 3 3 Financed lease obligations — — 129 129 129 Other — — 20 20 19 Financial Services operations Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2018 — — 1,129 1,129 1,135 Bank revolvers, at fixed and variable rates, due dates from 2015 through 2020 — — 1,127 1,127 1,147 Commercial paper, at variable rates, program matures in 2017 90 — — 90 90 Borrowings secured by operating and finance leases, at various rates, due serially through 2018 — — 26 26 26 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. |
Financial Instruments and Com32
Financial Instruments and Commodity Contracts (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | Location in Consolidated Statements of Operations Three Months Ended July 31, (in millions) 2015 2014 Interest rate caps Interest expense $ 1 $ 1 Cross currency swaps Other income, net (1 ) 1 Foreign currency contracts Other income, net (6 ) 1 Commodity forward contracts Costs of products sold (1 ) (1 ) Total (income) loss $ (7 ) $ 2 Location in Consolidated Statements of Operations Nine Months Ended July 31, (in millions) 2015 2014 Interest rate caps Interest expense $ 1 $ 2 Cross currency swaps Other income, net 2 1 Foreign currency contracts Other income, net (5 ) 2 Commodity forward contracts Costs of products sold 4 (1 ) Total loss $ 2 $ 4 |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table presents the outstanding foreign currency contracts as of July 31, 2015 and October 31, 2014 : (in millions) Currency Notional Amount Maturity As of July 31, 2015 Forward exchange contract EUR € 12 August 2015-October 2015 (A) Forward exchange contract CAD C$ 100 August 2015-October 2015 (B) Forward exchange contract MXN ₱ 813 August 2015 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 (C) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of selected financial information, by segment | (in millions) Truck Parts Global Operations Financial (A) Corporate Total Nine Months Ended July 31, 2014 External sales and revenues, net $ 5,176 $ 1,817 $ 690 $ 115 $ — $ 7,798 Intersegment sales and revenues 166 43 26 57 (292 ) — Total sales and revenues, net $ 5,342 $ 1,860 $ 716 $ 172 $ (292 ) $ 7,798 Income (loss) from continuing operations attributable to NIC, net of tax $ (340 ) $ 378 $ (218 ) $ 71 $ (441 ) $ (550 ) Income tax expense — — — — (25 ) (25 ) Segment profit (loss) $ (340 ) $ 378 $ (218 ) $ 71 $ (416 ) $ (525 ) Depreciation and amortization $ 171 $ 12 $ 21 $ 33 $ 19 $ 256 Interest expense — — — 52 182 234 Equity in income (loss) of non-consolidated affiliates 3 3 (1 ) — — 5 Capital expenditures (B) 42 5 6 1 3 57 (in millions) Truck Parts Global Operations Financial (A) Corporate Total Nine Months Ended July 31, 2015 External sales and revenues, net $ 5,349 $ 1,835 $ 353 $ 108 $ 7 $ 7,652 Intersegment sales and revenues 121 29 38 75 (263 ) — Total sales and revenues, net $ 5,470 $ 1,864 $ 391 $ 183 $ (256 ) $ 7,652 Income (loss) from continuing operations attributable to NIC, net of tax $ (105 ) $ 429 $ (40 ) $ 72 $ (492 ) $ (136 ) Income tax expense — — — — (37 ) (37 ) Segment profit (loss) $ (105 ) $ 429 $ (40 ) $ 72 $ (455 ) $ (99 ) Depreciation and amortization $ 139 $ 11 $ 18 $ 37 $ 16 $ 221 Interest expense — — — 57 170 227 Equity in income (loss) of non-consolidated affiliates 4 3 (1 ) — — 6 Capital expenditures (B) 58 1 4 2 7 72 (in millions) Truck Parts Global Operations Financial Services (A) Corporate and Eliminations Total Three Months Ended July 31, 2015 External sales and revenues, net $ 1,785 $ 614 $ 100 $ 37 $ 2 $ 2,538 Intersegment sales and revenues 49 11 9 26 (95 ) — Total sales and revenues, net $ 1,834 $ 625 $ 109 $ 63 $ (93 ) $ 2,538 Income (loss) from continuing operations attributable to NIC, net of tax $ (36 ) $ 151 $ (26 ) $ 26 $ (145 ) $ (30 ) Income tax expense — — — — (12 ) (12 ) Segment profit (loss) $ (36 ) $ 151 $ (26 ) $ 26 $ (133 ) $ (18 ) Depreciation and amortization $ 40 $ 4 $ 6 $ 13 $ 5 $ 68 Interest expense — — — 19 56 75 Equity in income of non-consolidated affiliates 1 1 1 — — 3 Capital expenditures (B) 20 1 1 — 5 27 (in millions) Truck Parts Global Operations Financial Services (A) Corporate and Eliminations Total Three Months Ended July 31, 2014 External sales and revenues, net $ 1,956 $ 629 $ 221 $ 38 $ — $ 2,844 Intersegment sales and revenues 46 15 12 22 (95 ) — Total sales and revenues, net $ 2,002 $ 644 $ 233 $ 60 $ (95 ) $ 2,844 Income (loss) from continuing operations attributable to NIC, net of tax $ (3 ) $ 137 $ (21 ) $ 24 $ (140 ) $ (3 ) Income tax expense — — — — (14 ) (14 ) Segment profit (loss) $ (3 ) $ 137 $ (21 ) $ 24 $ (126 ) $ 11 Depreciation and amortization $ 42 $ 4 $ 7 $ 12 $ 6 $ 71 Interest expense — — — 18 60 78 Equity in income of non-consolidated affiliates 1 1 — — — 2 Capital expenditures (B) 4 — 2 — 1 7 (in millions) Truck Parts Global Operations Financial Services Corporate and Eliminations Total Segment assets, as of: July 31, 2015 $ 1,967 $ 640 $ 458 $ 2,655 $ 1,049 $ 6,769 October 31, 2014 (C) 2,245 672 657 2,582 1,287 7,443 _________________________ (A) Total sales and revenues in the Financial Services segment include interest revenues of $46 million and $135 million for the three and nine months ended July 31, 2015 , respectively and $44 million and $126 million for the three and nine months ended July 31, 2014 , respectively. (B) Exclusive of purchases of equipment leased to others. (C) During the third quarter of 2015, it was determined that multiemployer plan accounting should have been applied in recording postretirement benefits related to our Financial Services segment, which provides that assets and liabilities of a plan are recorded only on the parent company and that periodic contributions to the plan made by the participating subsidiary are charged to expense for the purposes of the subsidiary's financial statements. As a result, we have reclassified $16 million of deferred tax assets between Financial Services and Corporate and Eliminations related to the postretirement benefits. This reclassification did not impact consolidated segment assets for the year-ended October 31, 2014. |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated other comprehensive loss , net of tax, included in the Consolidated Statements of Stockholders' Deficit , consisted of the following: (in millions) Unrealized Gain on Marketable Securities Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of April 30, 2015 $ 1 $ (213 ) $ (2,072 ) $ (2,284 ) Other comprehensive loss before reclassifications — (47 ) — (47 ) Amounts reclassified out of accumulated other comprehensive loss — — 33 33 Net current-period other comprehensive income (loss) — (47 ) 33 (14 ) Balance as of July 31, 2015 $ 1 $ (260 ) $ (2,039 ) $ (2,298 ) (in millions) Unrealized Gain on Marketable Securities Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of October 31, 2014 $ 1 $ (127 ) $ (2,137 ) $ (2,263 ) Other comprehensive loss before reclassifications — (133 ) — (133 ) Amounts reclassified out of accumulated other comprehensive loss — — 98 98 Net current-period other comprehensive income (loss) — (133 ) 98 (35 ) Balance as of July 31, 2015 $ 1 $ (260 ) $ (2,039 ) $ (2,298 ) (in millions) Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of April 30, 2014 $ (89 ) $ (1,699 ) $ (1,788 ) Other comprehensive income (loss) before reclassifications (3 ) 7 4 Amounts reclassified out of accumulated other comprehensive loss — 26 26 Net current-period other comprehensive income (loss) (3 ) 33 30 Balance as of July 31, 2014 $ (92 ) $ (1,666 ) $ (1,758 ) (in millions) Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of October 31, 2013 $ (75 ) $ (1,749 ) $ (1,824 ) Other comprehensive income (loss) before reclassifications (17 ) 5 (12 ) Amounts reclassified out of accumulated other comprehensive loss — 78 78 Net current-period other comprehensive income (loss) (17 ) 83 66 Balance as of July 31, 2014 $ (92 ) $ (1,666 ) $ (1,758 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Location in Consolidated Three Months Ended July 31, 2015 Nine Months Ended July 31, 2015 Defined benefit plans Amortization of prior service benefit Selling, general and administrative expenses $ (1 ) $ (3 ) Amortization of actuarial loss Selling, general and administrative expenses 34 102 Total before tax 33 99 Tax expense — (1 ) Total reclassifications for the period, net of tax $ 33 $ 98 Location in Consolidated Three Months Ended July 31, 2014 Nine Months Ended July 31, 2014 Defined benefit plans Amortization of prior service benefit Selling, general and administrative expenses $ (1 ) $ (3 ) Amortization of actuarial loss Selling, general and administrative expenses 28 82 Total before tax 27 79 Tax benefit (1 ) (1 ) Total reclassifications for the period, net of tax $ 26 $ 78 |
Loss Per Share Attributable t35
Loss Per Share Attributable to Navistar International Corporation (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation [Table Text Block] | Three Months Ended July 31, Nine Months Ended July 31, (in millions, except per share data) 2015 2014 2015 2014 Numerator: Amounts attributable to Navistar International Corporation common stockholders: Loss from continuing operations, net of tax $ (30 ) $ (3 ) $ (136 ) $ (550 ) Income from discontinued operations, net of tax 2 1 2 3 Net loss $ (28 ) $ (2 ) $ (134 ) $ (547 ) Denominator: Weighted average shares outstanding: Basic 81.6 81.4 81.5 81.3 Effect of dilutive securities — — — — Diluted 81.6 81.4 81.5 81.3 Earnings (loss) per share attributable to Navistar International Corporation: Basic: Continuing operations $ (0.37 ) $ (0.04 ) $ (1.67 ) $ (6.77 ) Discontinued operations 0.03 0.02 0.03 0.04 Net loss $ (0.34 ) $ (0.02 ) $ (1.64 ) $ (6.73 ) Diluted: Continuing operations $ (0.37 ) $ (0.04 ) $ (1.67 ) $ (6.77 ) Discontinued operations 0.03 0.02 0.03 0.04 Net loss $ (0.34 ) $ (0.02 ) $ (1.64 ) $ (6.73 ) |
Condensed Consolidating Guara36
Condensed Consolidating Guarantor and Non-Guarantor Financial Information (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Condensed Consolidating Guarantor and Non-Guarantor [Abstract] | |
Schedule of Condensed Income Statement [Table Text Block] | Condensed Consolidating Statement of Operations for the Three Months Ended July 31, 2015 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Sales and revenues, net $ — $ 1,892 $ 1,875 $ (1,229 ) $ 2,538 Costs of products sold — 1,752 1,627 (1,207 ) 2,172 Restructuring charges — 5 8 — 13 Asset impairment charges — — 7 — 7 All other operating expenses (income) 12 262 102 (16 ) 360 Total costs and expenses 12 2,019 1,744 (1,223 ) 2,552 Equity in income (loss) of affiliates (16 ) 76 2 (59 ) 3 Income (loss) before income taxes (28 ) (51 ) 133 (65 ) (11 ) Income tax expense — (1 ) (11 ) — (12 ) Earnings (loss) from continuing operations (28 ) (52 ) 122 (65 ) (23 ) Income from discontinued operations, net of tax — — 2 — 2 Net income (loss) (28 ) (52 ) 124 (65 ) (21 ) Less: Net income attributable to non-controlling interests — — 7 — 7 Net income (loss) attributable to Navistar International Corporation $ (28 ) $ (52 ) $ 117 $ (65 ) $ (28 ) Condensed Consolidating Statement of Operations for the Nine Months Ended July 31, 2015 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Sales and revenues, net $ — $ 5,511 $ 5,586 $ (3,445 ) $ 7,652 Costs of products sold — 5,025 4,932 (3,380 ) 6,577 Restructuring charges — 8 14 — 22 Asset impairment charges — 8 7 — 15 All other operating expenses (income) 62 808 306 (56 ) 1,120 Total costs and expenses 62 5,849 5,259 (3,436 ) 7,734 Equity in income (loss) of affiliates (72 ) 155 3 (80 ) 6 Income (loss) before income taxes (134 ) (183 ) 330 (89 ) (76 ) Income tax expense — (3 ) (34 ) — (37 ) Earnings (loss) from continuing operations (134 ) (186 ) 296 (89 ) (113 ) Income from discontinued operations, net of tax — — 2 — 2 Net income (loss) (134 ) (186 ) 298 (89 ) (111 ) Less: Net income attributable to non-controlling interests — — 23 — 23 Net income (loss) attributable to Navistar International Corporation $ (134 ) $ (186 ) $ 275 $ (89 ) $ (134 ) Condensed Consolidating Statement of Operations for the Three Months Ended July 31, 2014 (in millions) NIC Navistar, Inc. Non-Guarantor Subsidiaries Eliminations and Other Consolidated Sales and revenues, net $ — $ 1,962 $ 2,181 $ (1,299 ) $ 2,844 Costs of products sold — 1,761 1,938 (1,282 ) 2,417 Restructuring charges — (1 ) 17 — 16 Asset impairment charges — 13 (11 ) 2 4 All other operating expenses (income) 17 246 141 (16 ) 388 Total costs and expenses 17 2,019 2,085 (1,296 ) 2,825 Equity in income (loss) of affiliates 15 17 1 (31 ) 2 Income (loss) before income taxes (2 ) (40 ) 97 (34 ) 21 Income tax expense — (2 ) (12 ) — (14 ) Earnings (loss) from continuing operations (2 ) (42 ) 85 (34 ) 7 Income from discontinued operations, net of tax — — 1 — 1 Net income (loss) (2 ) (42 ) 86 (34 ) 8 Less: Net income attributable to non-controlling interests — — 10 — 10 Net income (loss) attributable to Navistar International Corporation $ (2 ) $ (42 ) $ 76 $ (34 ) $ (2 ) Condensed Consolidating Statement of Operations for the Nine Months Ended July 31, 2014 (in millions) NIC Navistar, Inc. Non-Guarantor Subsidiaries Eliminations and Other Consolidated Sales and revenues, net $ — $ 5,279 $ 5,971 $ (3,452 ) $ 7,798 Costs of products sold — 4,983 5,331 (3,415 ) 6,899 Restructuring charges — 9 18 — 27 Asset impairment charges — 13 160 — 173 All other operating expenses (income) 94 760 389 (44 ) 1,199 Total costs and expenses 94 5,765 5,898 (3,459 ) 8,298 Equity in income (loss) of affiliates (466 ) (135 ) 2 604 5 Income (loss) before income taxes (560 ) (621 ) 75 611 (495 ) Income tax benefit (expense) 13 (3 ) (35 ) — (25 ) Earnings (loss) from continuing operations (547 ) (624 ) 40 611 (520 ) Income from discontinued operations, net of tax — — 3 — 3 Net income (loss) (547 ) (624 ) 43 611 (517 ) Less: Net income attributable to non-controlling interests — — 30 — 30 Net income (loss) attributable to Navistar International Corporation $ (547 ) $ (624 ) $ 13 $ 611 $ (547 ) |
Schedule of Condensed Statement of Comprehensive Income [Table Text Block] | Condensed Consolidating Statement of Comprehensive Income (Loss) for the Nine Months Ended July 31, 2015 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net income (loss) attributable to Navistar International Corporation $ (134 ) $ (186 ) $ 275 $ (89 ) $ (134 ) Other comprehensive income (loss): Foreign currency translation adjustment (133 ) — (133 ) 133 (133 ) Defined benefit plans (net of tax of $(1), $14, $(15), $1, and $(1), respectively) 98 70 28 (98 ) 98 Total other comprehensive income (loss) (35 ) 70 (105 ) 35 (35 ) Total comprehensive income (loss) attributable to Navistar International Corporation $ (169 ) $ (116 ) $ 170 $ (54 ) $ (169 ) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Nine Months Ended July 31, 2014 (in millions) NIC Navistar, Inc. Non-Guarantor Subsidiaries Eliminations and Other Consolidated Net income (loss) attributable to Navistar International Corporation $ (547 ) $ (624 ) $ 13 $ 611 $ (547 ) Other comprehensive income (loss): Foreign currency translation adjustment (17 ) — (17 ) 17 (17 ) Defined benefit plans (net of tax of $(4) $0, $(4), $4, and $(4), respectively) 83 73 10 (83 ) 83 Total other comprehensive income (loss) 66 73 (7 ) (66 ) 66 Total comprehensive income (loss) attributable to Navistar International Corporation $ (481 ) $ (551 ) $ 6 $ 545 $ (481 ) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended July 31, 2015 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net income (loss) attributable to Navistar International Corporation $ (28 ) $ (52 ) $ 117 $ (65 ) $ (28 ) Other comprehensive income (loss): Foreign currency translation adjustment (47 ) — (47 ) 47 (47 ) Defined benefit plans (net of tax of $0, for all entities) 33 8 25 (33 ) 33 Total other comprehensive income (loss) (14 ) 8 (22 ) 14 (14 ) Total comprehensive income (loss) attributable to Navistar International Corporation $ (42 ) $ (44 ) $ 95 $ (51 ) $ (42 ) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended July 31, 2014 (in millions) NIC Navistar, Inc. Non-Guarantor Subsidiaries Eliminations and Other Consolidated Net income (loss) attributable to Navistar International Corporation $ (2 ) $ (42 ) $ 76 $ (34 ) $ (2 ) Other comprehensive income (loss): Foreign currency translation adjustment (3 ) — (3 ) 3 (3 ) Defined benefit plans (net of tax of $(3), $0, $(3), $3, and $(3), respectively) 33 23 10 (33 ) 33 Total other comprehensive income (loss) 30 23 7 (30 ) 30 Total comprehensive income (loss) attributable to Navistar International Corporation $ 28 $ (19 ) $ 83 $ (64 ) $ 28 |
Schedule of Condensed Balance Sheet [Table Text Block] | Condensed Consolidating Balance Sheet as of October 31, 2014 (in millions) NIC Navistar, Non-Guarantor Eliminations 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 (A) 5 25 169 1 200 Other 34 137 194 (3 ) 362 Total assets $ (6,707 ) $ 8,372 $ 4,972 $ 806 $ 7,443 Liabilities and stockholders’ equity (deficit) Debt $ 1,958 $ 937 $ 2,336 $ (7 ) $ 5,224 Postretirement benefits liabilities (A) — 2,752 203 — 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 ) 15,798 (1,750 ) 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 (A) (4,654 ) (7,426 ) 6,688 738 (4,654 ) Total liabilities and stockholders’ equity (deficit) $ (6,707 ) $ 8,372 $ 4,972 $ 806 $ 7,443 _________________________ (A) During the third quarter of 2015, it was determined that multiemployer plan accounting should have been applied in recording postretirement benefits related to our Financial Services segment, which provides that assets and liabilities of a plan are recorded only on the parent company and that periodic contributions to the plan made by the participating subsidiary are charged to expense for the purposes of the subsidiary's financial statements. As a result, we have reclassified $40 million of postretirement benefits, and related deferred taxes and Accumulated Other Comprehensive Income impact, between NIC and Non-Guarantor Subsidiaries. This reclassification did not impact the consolidated financial position for the year-ended October 31, 2014. Condensed Consolidating Balance Sheet as of July 31, 2015 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ 226 $ 44 $ 277 $ — $ 547 Marketable securities 149 — 144 — 293 Restricted cash 17 3 337 — 357 Finance and other receivables, net 3 142 2,271 (22 ) 2,394 Inventories — 731 481 (13 ) 1,199 Investments in non-consolidated affiliates (7,352 ) 6,570 67 786 71 Property and equipment, net — 751 633 (9 ) 1,375 Goodwill — — 38 — 38 Deferred taxes, net (A) 5 9 149 — 163 Other 35 133 166 (2 ) 332 Total assets $ (6,917 ) $ 8,383 $ 4,563 $ 740 $ 6,769 Liabilities and stockholders’ equity (deficit) Debt $ 1,968 $ 872 $ 2,449 $ (3 ) $ 5,286 Postretirement benefits liabilities (A) — 2,651 189 — 2,840 Amounts due to (from) affiliates (7,669 ) 12,082 (4,590 ) 177 — Other liabilities 3,600 202 (275 ) (75 ) 3,452 Total liabilities (2,101 ) 15,807 (2,227 ) 99 11,578 Redeemable equity securities 1 — — — 1 Stockholders’ equity attributable to non-controlling interest — — 7 — 7 Stockholders’ equity (deficit) attributable to Navistar International Corporation (A) (4,817 ) (7,424 ) 6,783 641 (4,817 ) Total liabilities and stockholders’ equity (deficit) $ (6,917 ) $ 8,383 $ 4,563 $ 740 $ 6,769 |
Schedule of Condensed Cash Flow Statement [Table Text Block] | Condensed Consolidating Statement of Cash Flows for the Nine Months Ended July 31, 2014 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net cash provided by (used in) operations $ (528 ) $ (1,078 ) $ 156 $ 1,106 $ (344 ) Cash flows from investment activities Net change in restricted cash and cash equivalents 6 — (36 ) — (30 ) Net sales of marketable securities 315 — (103 ) — 212 Capital expenditures and purchase of equipment leased to others — (89 ) (125 ) — (214 ) Other investing activities — 22 24 — 46 Net cash provided by (used in) investment activities 321 (67 ) (240 ) — 14 Cash flows from financing activities Net borrowings (repayments) of debt (11 ) 1,067 192 (1,136 ) 112 Other financing activities 18 44 (70 ) 30 22 Net cash provided by (used in) financing activities 7 1,111 122 (1,106 ) 134 Effect of exchange rate changes on cash and cash equivalents — — (12 ) — (12 ) Increase (decrease) in cash and cash equivalents (200 ) (34 ) 26 — (208 ) Cash and cash equivalents at beginning of the period 336 72 347 — 755 Cash and cash equivalents at end of the period $ 136 $ 38 $ 373 $ — $ 547 Condensed Consolidating Statement of Cash Flows for the Nine Months Ended July 31, 2015 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net cash provided by (used in) operations $ (106 ) $ 282 $ 62 $ (252 ) $ (14 ) Cash flows from investment activities Net change in restricted cash and cash equivalents 1 1 (194 ) — (192 ) Net sales of marketable securities 230 — 82 — 312 Capital expenditures and purchase of equipment leased to others — (52 ) (78 ) — (130 ) Other investing activities — 3 12 — 15 Net cash provided by (used in) investment activities 231 (48 ) (178 ) — 5 Cash flows from financing activities Net borrowings (repayments) of debt — (189 ) 176 126 113 Other financing activities — (54 ) (99 ) 126 (27 ) Net cash provided by (used in) financing activities — (243 ) 77 252 86 Effect of exchange rate changes on cash and cash equivalents — — (27 ) — (27 ) Increase (decrease) in cash and cash equivalents 125 (9 ) (66 ) — 50 Cash and cash equivalents at beginning of the period 101 53 343 — 497 Cash and cash equivalents at end of the period $ 226 $ 44 $ 277 $ — $ 547 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Jul. 31, 2015USD ($)employees | Jan. 31, 2015USD ($) | Jul. 31, 2014USD ($) | Apr. 30, 2014USD ($) | Jan. 31, 2014USD ($) | Jul. 31, 2015USD ($)employeessegments | Jul. 31, 2014USD ($) | Oct. 31, 2014USD ($) | |
Accounting Policies [Line Items] | ||||||||
Net loss attributable to Navistar International Corporation | $ (28) | $ (2) | $ (134) | $ (547) | ||||
Number Of Segments | segments | 4 | |||||||
Goodwill | 38 | $ 38 | $ 38 | |||||
Sales of manufactured products, net | 2,501 | 2,806 | 7,544 | 7,683 | ||||
Interest expense | 75 | 78 | 227 | 234 | ||||
Capital expenditures | $ 27 | 7 | 72 | 57 | ||||
Proceeds from financed lease obligations | 26 | 44 | ||||||
Product Warranty Accrual, Preexisting, Increase (Decrease) | $ (38) | 65 | ||||||
Goodwill, Impairment Loss | 0 | |||||||
Unionized Employees Concentration Risk [Member] | Number Of Employees Hourly Workers [Member] | ||||||||
Accounting Policies [Line Items] | ||||||||
Concentration Risk Number Of Employees | employees | 6,000 | 6,000 | ||||||
concentration risk number of employees percentage | 73.00% | 73.00% | ||||||
Unionized Employees Concentration Risk [Member] | Number of Employees Salaried Workers [Member] | ||||||||
Accounting Policies [Line Items] | ||||||||
Concentration Risk Number Of Employees | employees | 200 | 200 | ||||||
concentration risk number of employees percentage | 3.00% | 3.00% | ||||||
Brazilian Reporting Unit [Member] | ||||||||
Accounting Policies [Line Items] | ||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 3 | 0 | $ 7 | $ 3 | 7 | |||
Goodwill | 142 | |||||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 24 | 43 | 24 | |||||
Goodwill, Impairment Loss | 0 | 142 | 0 | 142 | ||||
Product Warranty Accrual [Member] | ||||||||
Accounting Policies [Line Items] | ||||||||
Product Warranty Accrual, Preexisting, Increase (Decrease) | $ (57) | (29) | $ 42 | $ 52 | ||||
North America Truck [Member] | ||||||||
Accounting Policies [Line Items] | ||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 3 | $ 7 | ||||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Capital expenditures | 20 | 4 | 58 | 42 | ||||
Extended Warranty Programs [Member] | ||||||||
Accounting Policies [Line Items] | ||||||||
Deferred Revenue, Revenue Recognized | 40 | $ 36 | 115 | $ 96 | ||||
Deferred Revenue | 419 | 419 | $ 437 | |||||
Discontinued Operations [Member] | Product Warranty Accrual [Member] | ||||||||
Accounting Policies [Line Items] | ||||||||
Product Warranty Accrual, Preexisting, Increase (Decrease) | $ (2) | $ (2) |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Variable Interest Entities (Details) - USD ($) $ in Millions | May. 28, 2015 | Jul. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Oct. 31, 2013 |
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | $ 547 | $ 497 | $ 547 | $ 755 | |
Variable Interest Entity Primary Beneficiary, Blue Diamond Parts [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 56 | 57 | |||
Cash and cash equivalents | 15 | 11 | |||
Liabilities | 13 | 5 | |||
Variable Interest Entity Primary Beneficiary Blue Diamond Parts And Blue Diamond Truck [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 240 | ||||
Cash and cash equivalents | 66 | ||||
Liabilities | 245 | ||||
Variable Interest Entity Primary Beneficiary, Blue Diamond Trucks [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 25.00% | ||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | $ 27 | ||||
Variable Interest Entity Primary Beneficiary Securitizations Treated As Borrowings [Member] | Financial Services Operations [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 1,300 | 1,100 | |||
Liabilities | 1,100 | 896 | |||
Transaction Does Not Qualify for Sale Accounting [Member] | Financial Services Operations [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 207 | 156 | |||
Liabilities | $ 85 | $ 54 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Product Warranty Liability (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Jul. 31, 2015 | Jan. 31, 2015 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2013 | |
Product Liability Contingency [Line Items] | |||||||||
Product Warranty Accrual | $ 1,016 | $ 1,256 | $ 1,016 | $ 1,256 | $ 1,197 | $ 1,349 | |||
Product Warranty Accrual, Warranties Issued | 177 | 235 | |||||||
Product Warranty Accrual, Currency Translation, Increase (Decrease) | (7) | (2) | |||||||
Accrued Product Warranty And Deferred Warranty Revenue, Standard And Extended Warranty Programs, Roll Forward: | |||||||||
Adjustments to pre-existing warranties(A)(B) | (38) | 65 | |||||||
Extended Warranty Program: | |||||||||
Product Warranty Accrual, Payments | (313) | (391) | |||||||
Product Warranty Accrual, Current | 466 | 578 | 466 | 578 | |||||
Product Warranty Accrual, Noncurrent | 550 | 678 | 550 | 678 | |||||
Extended Warranty Programs [Member] | |||||||||
Extended Warranty Program: | |||||||||
Deferred Revenue, Revenue Recognized | 40 | 36 | 115 | $ 96 | |||||
Deferred Revenue | 419 | 419 | $ 437 | ||||||
Product Warranty Accrual [Member] | |||||||||
Accrued Product Warranty And Deferred Warranty Revenue, Standard And Extended Warranty Programs, Roll Forward: | |||||||||
Adjustments to pre-existing warranties(A)(B) | $ (57) | $ (29) | $ 42 | $ 52 | |||||
Product Warranty Accrual, Preexisting Increase Decrease Per Share, Net of Tax | $ (0.70) | $ (0.36) | $ 0.52 | $ 0.64 | |||||
Discontinued Operations [Member] | Product Warranty Accrual [Member] | |||||||||
Accrued Product Warranty And Deferred Warranty Revenue, Standard And Extended Warranty Programs, Roll Forward: | |||||||||
Adjustments to pre-existing warranties(A)(B) | $ (2) | $ (2) |
Restructuring and Impairments -
Restructuring and Impairments - Narrative (Details) - Impairment Type [Domain] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Jul. 31, 2015 | Jan. 31, 2015 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $ 13 | $ 16 | $ 22 | $ 27 | |||
Asset impairment charges | 7 | 4 | 15 | 173 | |||
Goodwill, Impairment Loss | 0 | ||||||
Employee Severance [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 13 | $ 8 | |||||
North America Truck [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Asset impairment charges | $ 18 | 19 | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 3 | $ 7 | |||||
Minimum [Member] | Chatham [Member] | North America Truck [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | 0 | 0 | |||||
Maximum [Member] | Chatham [Member] | North America Truck [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | 60 | 60 | |||||
Maximum [Member] | Indianapolis and Waukesha Foundry [Member] | North America Truck [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 3 | 28 | |||||
Brazilian Reporting Unit [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Asset impairment charges | 149 | ||||||
Goodwill, Impairment Loss | 0 | 142 | 0 | 142 | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 3 | 0 | $ 7 | $ 3 | $ 7 | ||
Other Postretirement Benefit Plan [Member] | Chatham [Member] | Facility Closing [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Postemployment Benefits, Period Expense | $ 14 |
Restructuring and Impairments41
Restructuring and Impairments - Restructuring Reserve by Type (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Jul. 31, 2015 | Jul. 31, 2014 | Apr. 30, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $ 13 | $ 16 | $ 22 | $ 27 | |||
Restructuring Reserve | 22 | 25 | 22 | 25 | $ 20 | $ 34 | |
Restructuring and Related Cost, Incurred Cost | 19 | 14 | |||||
Payments for Restructuring | 15 | 21 | |||||
Restructuring Reserve, Accrual Adjustment | (2) | (2) | |||||
Employee Severance [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 13 | $ 8 | |||||
Restructuring Reserve | 16 | 13 | 16 | 13 | 8 | 15 | |
Restructuring and Related Cost, Incurred Cost | 17 | 12 | |||||
Payments for Restructuring | 7 | 12 | |||||
Restructuring Reserve, Accrual Adjustment | (2) | (2) | |||||
Employee Relocation [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Reserve | 0 | 0 | 0 | ||||
Restructuring and Related Cost, Incurred Cost | 1 | ||||||
Payments for Restructuring | 1 | ||||||
Restructuring Reserve, Accrual Adjustment | 0 | ||||||
Lease Vacancy [Member] [Domain] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Reserve | 5 | 13 | 5 | 13 | 11 | 18 | |
Restructuring and Related Cost, Incurred Cost | 0 | 1 | |||||
Payments for Restructuring | 6 | 6 | |||||
Restructuring Reserve, Accrual Adjustment | 0 | 0 | |||||
Other Restructuring [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Reserve | 1 | $ (1) | 1 | (1) | $ 1 | $ 1 | |
Restructuring and Related Cost, Incurred Cost | 2 | 0 | |||||
Payments for Restructuring | 2 | 2 | |||||
Restructuring Reserve, Accrual Adjustment | 0 | $ 0 | |||||
Indianapolis and Waukesha Foundry [Member] | North America Truck [Member] | Maximum [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $ 3 | $ 28 |
Restructuring and Impairments42
Restructuring and Impairments - Schedule of Impairment Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Jul. 31, 2015 | Jan. 31, 2015 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Goodwill, Impairment Loss | $ 0 | ||||||
Other Asset Impairment Charges | $ 4 | 4 | $ 12 | $ 24 | |||
Asset impairment charges | 7 | 4 | 15 | 173 | |||
Brazilian Reporting Unit [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Goodwill, Impairment Loss | 0 | $ 142 | 0 | 142 | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 3 | $ 0 | 7 | $ 3 | 7 | ||
Asset impairment charges | $ 149 | ||||||
Impairment charges [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Asset impairment charges | 173 | ||||||
North America Truck [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 3 | $ 7 | |||||
Asset impairment charges | $ 18 | $ 19 |
Finance Receivables - Narrative
Finance Receivables - Narrative (Details) $ in Millions | Jul. 31, 2015USD ($)segments | Oct. 31, 2014USD ($) |
Schedule of Securitization [Line Items] | ||
Loans and Leases Receivable, Net Amount | $ 2,000 | $ 2,000 |
Number of Portfolio Segments for Finance Receivables | segments | 2 | |
Trac Funding Facility [Member] | ||
Schedule of Securitization [Line Items] | ||
Finance Receivables Retail Accounts Collateral For Borrowed Securities | $ 1,000 | 996 |
Cash Collateral for Borrowed Securities | 129 | 93 |
Financial Services Operations [Member] | ||
Schedule of Securitization [Line Items] | ||
Assets Net Of Intercompany Balances | $ 2,700 | $ 2,600 |
Finance Receivables - Finance R
Finance Receivables - Finance Receivables (Details) - USD ($) $ in Millions | Jul. 31, 2015 | Oct. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount, Covered | $ 1,978 | $ 2,065 | |
Less: Allowance for Doubtful accounts | 28 | 27 | |
Total finance receivables, net | 1,950 | 2,038 | |
Financing Receivable, Recorded Investment, Current | [1] | 1,737 | 1,758 |
Finance Receivables, Noncurrent | 213 | 280 | |
Retail Portfolio [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 606 | 726 | |
Wholesale Portfolio [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount, Covered | $ 1,372 | $ 1,339 | |
[1] | 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. |
Finance Receivables - Schedule
Finance Receivables - Schedule of Finance Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Finance Revenues [Line Items] | ||||
Retail notes and finance leases revenue | $ 12 | $ 16 | $ 37 | $ 49 |
Gross finance revenues | 63 | 60 | 183 | 172 |
Less: Intercompany revenues | (26) | (22) | (75) | (57) |
Finance revenues | 37 | 38 | 108 | 115 |
Financing Receivable [Member] | ||||
Finance Revenues [Line Items] | ||||
Operating lease revenue | 16 | 15 | 46 | 44 |
Wholesale Portfolio [Member] | Notes Receivable [Member] | ||||
Finance Revenues [Line Items] | ||||
Interest Income, Operating | 27 | 22 | 75 | 59 |
Retail And Wholesale Portfolios [Member] | ||||
Finance Revenues [Line Items] | ||||
Interest Income, Operating | $ 8 | $ 7 | $ 25 | $ 20 |
Allowance for Doubtful Accoun46
Allowance for Doubtful Accounts - Schedule of Allowance for Retail, Wholesale, Trade & Other (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||
Allowance for doubtful accounts at beginning of period | $ 58 | $ 62 | $ 65 | $ 60 | ||
Provision for doubtful accounts, net of recoveries | 2 | 3 | 7 | [1] | 13 | [1] |
Charge-off of accounts | (1) | (5) | (5) | [2] | (12) | [2] |
Allowance for doubtful accounts at end of period | 54 | 60 | 54 | 60 | ||
Loss on Contract Termination for Default | 1 | 1 | 1 | 1 | ||
Financing Receivable, Allowance for Credit Losses, Other | (5) | 0 | (13) | (1) | ||
Retail Portfolio [Member] | ||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||
Allowance for doubtful accounts at beginning of period | 25 | 22 | 24 | 21 | ||
Provision for doubtful accounts, net of recoveries | 2 | 3 | 7 | [1] | 10 | [1] |
Charge-off of accounts | 0 | (2) | (1) | [2] | (7) | [2] |
Allowance for doubtful accounts at end of period | 25 | 24 | 25 | 24 | ||
Financing Receivable, Allowance for Credit Losses, Other | (2) | 1 | (5) | 0 | ||
Wholesale Portfolio [Member] | ||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||
Allowance for doubtful accounts at beginning of period | 3 | 2 | 3 | 2 | ||
Provision for doubtful accounts, net of recoveries | 0 | 0 | 0 | [1] | 0 | [1] |
Charge-off of accounts | 0 | 0 | 0 | [2] | 0 | [2] |
Allowance for doubtful accounts at end of period | 3 | 2 | 3 | 2 | ||
Financing Receivable, Allowance for Credit Losses, Other | 0 | 0 | 0 | 0 | ||
Trade and Other Receivables [Member] | ||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||
Allowance for doubtful accounts at beginning of period | 30 | 38 | 38 | 37 | ||
Provision for doubtful accounts, net of recoveries | 0 | 0 | 0 | [1] | 3 | [1] |
Charge-off of accounts | (1) | (3) | (4) | [2] | (5) | [2] |
Allowance for doubtful accounts at end of period | 26 | 34 | 26 | 34 | ||
Financing Receivable, Allowance for Credit Losses, Other | $ (3) | $ (1) | $ (8) | $ (1) | ||
[1] | (B) | |||||
[2] | 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 $1 million, for the three and nine months ended July 31, 2015, as well as for the three and nine months ended July 31, 2014 |
Allowance for Doubtful Accoun47
Allowance for Doubtful Accounts - Schedule of Impaired Finance Receivables (Details) - USD ($) $ in Millions | Jul. 31, 2015 | Oct. 31, 2014 |
Impaired finance receivables with specific loss reserves [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Impaired Financing Receivable, Recorded Investment | $ 21 | $ 20 |
Impaired finance receivables with specific loss reserves [Member] | Retail Portfolio [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Impaired Financing Receivable, Recorded Investment | 21 | 20 |
Impaired finance receivables with specific loss reserves [Member] | Wholesale Portfolio [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Impaired Financing Receivable, Recorded Investment | 0 | 0 |
Impaired financing receivable without specific loss reserves [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Impaired Financing Receivable, Recorded Investment | 0 | 1 |
Impaired financing receivable without specific loss reserves [Member] | Retail Portfolio [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Impaired Financing Receivable, Recorded Investment | 0 | 1 |
Impaired financing receivable without specific loss reserves [Member] | Wholesale Portfolio [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Impaired Financing Receivable, Recorded Investment | 0 | 0 |
Specific loss reserves on impaired finance receivables [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Specific loss reserves on impaired finance receivables | 10 | 6 |
Specific loss reserves on impaired finance receivables [Member] | Retail Portfolio [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Specific loss reserves on impaired finance receivables | 10 | 6 |
Specific loss reserves on impaired finance receivables [Member] | Wholesale Portfolio [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Specific loss reserves on impaired finance receivables | 0 | 0 |
Finance receivable non-accrual status [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Finance receivables on non-accrual status | 21 | 21 |
Finance receivable non-accrual status [Member] | Retail Portfolio [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Finance receivables on non-accrual status | 21 | 21 |
Finance receivable non-accrual status [Member] | Wholesale Portfolio [Member] | ||
Finance Receivable, Impaired [Line Items] | ||
Finance receivables on non-accrual status | $ 0 | $ 0 |
Allowance for Doubtful Accoun48
Allowance for Doubtful Accounts - Schedule of Allowance Aging Analysis (Details) - USD ($) $ in Millions | Jul. 31, 2015 | Oct. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Finance Receivables, Current | $ 1,900 | $ 1,976 |
30-90 days past due | 60 | 66 |
Over 90 days past due | 18 | 23 |
Total finance receivables | 1,978 | 2,065 |
Retail Portfolio [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Finance Receivables, Current | 531 | 643 |
30-90 days past due | 58 | 64 |
Over 90 days past due | 17 | 19 |
Total finance receivables | 606 | 726 |
Wholesale Portfolio [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Finance Receivables, Current | 1,369 | 1,333 |
30-90 days past due | 2 | 2 |
Over 90 days past due | 1 | 4 |
Total finance receivables | $ 1,372 | $ 1,339 |
Allowance for Doubtful Accoun49
Allowance for Doubtful Accounts - Narrative (Details) $ in Millions | 9 Months Ended | |
Jul. 31, 2015USD ($)segmentsclass | Jul. 31, 2014USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Portfolio Segments for Finance Receivables | segments | 2 | |
Classes Of Receivables In Each Portfolio | class | 1 | |
Retail Portfolio [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired Financing Receivable, Average Recorded Investment | $ 21 | $ 15 |
Inventories - Inventory (Detail
Inventories - Inventory (Details) - USD ($) $ in Millions | Jul. 31, 2015 | Oct. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 772 | $ 880 |
Work in process | 66 | 50 |
Raw materials | 361 | 389 |
Total inventories | $ 1,199 | $ 1,319 |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instruments (Details) - USD ($) $ in Millions | Jul. 31, 2015 | Oct. 31, 2014 |
Debt Instrument [Line Items] | ||
Long-term Debt and Capital Lease Obligations | $ 4,196 | $ 3,929 |
Financial Services Operations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 2,398 | 2,266 |
Long-term Debt and Capital Lease Obligations, Current | 990 | 1,195 |
Long-term Debt and Capital Lease Obligations | 1,408 | 1,071 |
Financial Services Operations [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 1,135 | 914 |
Financial Services Operations [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 1,147 | 1,242 |
Financial Services Operations [Member] | Commercial Paper [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 90 | 74 |
Financial Services Operations [Member] | Borrowings Secured By Operating and Finance Leases [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 26 | 36 |
Manufacturing Operations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 2,888 | 2,958 |
Long-term Debt and Capital Lease Obligations, Current | 100 | 100 |
Long-term Debt and Capital Lease Obligations | 2,788 | 2,858 |
Manufacturing Operations [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 695 | 694 |
Manufacturing Operations [Member] | Notes Payable to Banks [Member] | Eight Point Two Five Percent Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Unamortized Discount | $ 18 | 20 |
Debt Instrument, Interest Rate, Stated Percentage | 8.25% | |
Long-term Debt | $ 1,182 | 1,180 |
Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Four Point Five Zero Senior Subordinated Convertible Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Unamortized Discount | $ 16 | 19 |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |
Long-term Debt | $ 184 | 181 |
Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Unamortized Discount | $ 34 | 40 |
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | |
Long-term Debt | $ 377 | 371 |
Manufacturing Operations [Member] | Debt Of Majority Owned Dealerships [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 26 | 30 |
Manufacturing Operations [Member] | Financing Arrangements and Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 48 | 54 |
Manufacturing Operations [Member] | Tax Exempt Bond [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | |
Long-term Debt | $ 225 | 225 |
Manufacturing Operations [Member] | Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 3 | 10 |
Manufacturing Operations [Member] | Financed lease obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 129 | 184 |
Manufacturing Operations [Member] | Notes Payable, Other Payables [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 19 | $ 29 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Oct. 31, 2009USD ($)$ / sharesshares | Oct. 31, 2015 | Jan. 31, 2015USD ($)shares | Apr. 30, 2014USD ($)shares | Apr. 30, 2013 | Jul. 31, 2015USD ($)$ / shares | Jul. 31, 2014USD ($) | Oct. 31, 2014USD ($) | Oct. 31, 2013USD ($) | Oct. 31, 2012USD ($) | Aug. 07, 2015USD ($) | Jul. 15, 2015USD ($) | Apr. 30, 2015USD ($) | Jul. 03, 2014USD ($) | Aug. 31, 2012USD ($) | |
Debt Instrument [Line Items] | |||||||||||||||
Payments to subsidiary to meet convenant requirement | $ 0 | $ 0 | $ 0 | ||||||||||||
Warrants and Rights Outstanding | $ 2,875,175 | ||||||||||||||
Charge Related to Repurchase of Debt | $ 11,000,000 | ||||||||||||||
Shares of Call Options Unwound | shares | 8,026,456 | ||||||||||||||
Shares of Warrants Unwound | shares | 1,939,376 | 6,523,319 | |||||||||||||
Payments of Debt Issuance Costs | $ 10,000,000 | $ 14,000,000 | |||||||||||||
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | $ 125,000,000 | ||||||||||||||
Proceeds from issuance of securitized debt | $ 490,000,000 | $ 82,000,000 | |||||||||||||
Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Shares of Warrants Unwound | shares | 1,939,376 | 6,523,319 | |||||||||||||
Amended and Restated Asset-Based Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 275.00% | ||||||||||||||
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Option Indexed to Issuer's Equity, Strike Price | $ / shares | $ 54.07 | ||||||||||||||
Debt Instrument, Convertible, Conversion Ratio | 18.4946 | ||||||||||||||
Line of Credit [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000,000 | $ 1,000,000,000 | |||||||||||||
Debt Instrument, Permitted Receivables Financing | $ 25,000,000 | ||||||||||||||
Debt Instrument, Periodic Payment, Principal, Percentage | 0.25% | ||||||||||||||
Line of Credit [Member] | Base Rate [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | ||||||||||||||
Line of Credit [Member] | Eurodollar [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | ||||||||||||||
Asset-Based Credit Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 175,000,000 | ||||||||||||||
Debt Instrument, Liquidity Block | 35,000,000 | ||||||||||||||
Long-term Line of Credit | $ 0 | $ 0 | |||||||||||||
Debt Instrument, Permitted Receivables Financing | $ 50,000,000 | $ 25,000,000 | |||||||||||||
Asset-Based Credit Facility [Member] | Term Loan [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of Credit Facility, Increase to Borrowing Capacity | 352,500,000 | ||||||||||||||
Asset-Based Credit Facility [Member] | Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of Credit Facility, Increase to Borrowing Capacity | $ 200,000,000 | ||||||||||||||
Financial Services Operations [Member] | VFN Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Face Amount | $ 500,000,000 | ||||||||||||||
Financial Services Operations [Member] | Notes Payable, Other Payables [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Face Amount | 250,000,000 | ||||||||||||||
Financial Services Operations [Member] | Notes Payable, Other Payables [Member] | Investor Notes Sold to Initial Purchasers [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Face Amount | $ 240,000,000 | ||||||||||||||
Financial Services Operations [Member] | Notes Payable, Other Payables [Member] | Investor Notes Maturing Two Thousand and Fifteen [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Face Amount | 250,000,000 | ||||||||||||||
Financial Services Operations [Member] | Notes Payable, Other Payables [Member] | Investor Notes Maturing October Two Thousand Thirteen [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Face Amount | 200,000,000 | ||||||||||||||
Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of Long-term Debt | $ 404,000,000 | ||||||||||||||
Debt Instrument, Face Amount | $ 570,000,000 | ||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 60.14 | ||||||||||||||
Proceeds from Issuance of Warrants | $ 87,000,000 | ||||||||||||||
Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Four Point Five Zero Senior Subordinated Convertible Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||||||||||||||
Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | ||||||||||||||
Debt Instrument, Face Amount | $ 411,000,000 | ||||||||||||||
Manufacturing Operations [Member] | Tax Exempt Bond [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | ||||||||||||||
Maximum [Member] | Amended and Restated Asset-Based Credit Facility [Member] | Base Rate [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 225.00% | ||||||||||||||
Maximum [Member] | Amended and Restated Asset-Based Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 325.00% | ||||||||||||||
Minimum [Member] | Amended and Restated Asset-Based Credit Facility [Member] | Base Rate [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 175.00% | ||||||||||||||
Minimum [Member] | Amended and Restated Asset-Based Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 275.00% | ||||||||||||||
Minimum [Member] | Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||||||||||||
Call Option [Member] | Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Payments for Derivative Instrument, Investing Activities | $ 125,000,000 | ||||||||||||||
Option Indexed to Issuer's Equity, Indexed Shares | shares | 11,337,870 | ||||||||||||||
Option Indexed to Issuer's Equity, Strike Price | $ / shares | $ 50.27 | ||||||||||||||
Convertible Debt Securities [Member] | Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Option Indexed to Issuer's Equity, Strike Price | $ / shares | $ 50.27 | ||||||||||||||
Debt Instrument, Convertible, Conversion Ratio | 19.891 | ||||||||||||||
Convertible Debt Securities [Member] | Four Point Five Zero Senior Subordinated Convertible Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Convertible, Conversion Ratio | 17.1233 | ||||||||||||||
Letter of Credit [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of Credit Facility, Participation Fee Reduction, Amount Outstanding in Excess of Maximum Borrowing Capacity | $ 50,000,000 | ||||||||||||||
Letter of Credit [Member] | Maximum [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 40,000,000 | ||||||||||||||
Mexican Pesos | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term Debt | $ 1,800,000,000 | ||||||||||||||
United States of America, Dollars | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term Debt | $ 111,000,000 | ||||||||||||||
Subsequent Event [Member] | Line of Credit [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,040,000,000 | ||||||||||||||
Debt Instrument, Permitted Receivables Financing | $ 50,000,000 | ||||||||||||||
Debt Instrument, Periodic Payment, Principal, Percentage | 0.25% | ||||||||||||||
Debt Instrument, Call Premium | 1.00% | ||||||||||||||
Subsequent Event [Member] | Line of Credit [Member] | Base Rate [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | ||||||||||||||
Subsequent Event [Member] | Line of Credit [Member] | Eurodollar [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 5.50% | ||||||||||||||
Subsequent Event [Member] | Minimum [Member] | Line of Credit [Member] | Eurodollar [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
Postretirement Benefits - Narra
Postretirement Benefits - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plan, Cost Recognized | $ 7 | $ 6 | $ 24 | $ 21 |
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | 40 | |||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions | $ 11 | 33 | $ 73 | 98 |
Effect Of Remeasurement On Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | $ 10 | |||
Facility Closing [Member] | Chatham [Member] | Other Postretirement Benefit Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Restructuring charges | $ 14 |
Postretirement Benefits - Sched
Postretirement Benefits - Schedule of Net Benefit (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 3 | $ 3 | $ 9 | $ 9 |
Interest on obligations | 35 | 39 | 106 | 118 |
Amortization of cumulative loss | 25 | 23 | 74 | 70 |
Amortization of cumulative loss | 0 | 0 | 0 | 0 |
Contractual termination benefits | 0 | 14 | (1) | 14 |
Premiums on pension insurance | 3 | 0 | 8 | 0 |
Expected return on assets | (48) | (48) | (145) | (144) |
Net postretirement benefits expense | 18 | 31 | 51 | 67 |
Other Postretirement Benefit Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2 | 2 | 5 | 4 |
Interest on obligations | 17 | 17 | 53 | 51 |
Amortization of cumulative loss | 10 | 4 | 29 | 12 |
Amortization of cumulative loss | (1) | (1) | (3) | (3) |
Contractual termination benefits | 0 | 0 | (1) | 0 |
Premiums on pension insurance | 0 | 0 | 0 | 0 |
Expected return on assets | (7) | (8) | (22) | (24) |
Net postretirement benefits expense | $ 21 | $ 14 | $ 61 | $ 40 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | ||||
Income Tax Expense (Benefit) | $ 12 | $ 14 | $ 37 | $ 25 |
Income Taxes Percent Likelihood Of Being Realized Upon Settlement | 50.00% | 50.00% | ||
Unrecognized Tax Benefits | $ 41 | $ 41 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 1 | |||
Other Comprehensive Income (Loss) [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income Tax Expense (Benefit) | $ (14) |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Jul. 31, 2015 | Oct. 31, 2014 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 293 | $ 605 |
Guarantees, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 5 | 1 |
Guarantees, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure | 4 | 2 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Guarantees, Fair Value Disclosure | 10 | 8 |
Liabilities, Fair Value Disclosure | 10 | 8 |
US Treasury Bill Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 188 | 256 |
US Treasury Bill Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
US Treasury Bill Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Other Investment Companies [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 105 | 349 |
Other Investment Companies [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Other Investment Companies [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Other Current Assets [Member] | Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 0 | 0 |
Other Current Assets [Member] | Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 5 | 0 |
Other Current Assets [Member] | Foreign Exchange Contract [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 0 | 0 |
Other Noncurrent Assets [Member] | Interest Rate Cap [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 0 | 0 |
Other Noncurrent Assets [Member] | Interest Rate Cap [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 0 | 1 |
Other Noncurrent Assets [Member] | Interest Rate Cap [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 0 | 0 |
Other Current Liabilities [Member] | Commodity Contract [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Other Current Liabilities [Member] | Commodity Contract [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 4 | 2 |
Other Current Liabilities [Member] | Commodity Contract [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 298 | 606 |
Guarantees, Fair Value Disclosure | 10 | 8 |
Liabilities, Fair Value Disclosure | 14 | 10 |
Estimate of Fair Value Measurement [Member] | US Treasury Bill Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 188 | 256 |
Estimate of Fair Value Measurement [Member] | Other Investment Companies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 105 | 349 |
Estimate of Fair Value Measurement [Member] | Other Current Assets [Member] | Foreign Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 5 | 0 |
Estimate of Fair Value Measurement [Member] | Other Noncurrent Assets [Member] | Interest Rate Cap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 0 | 1 |
Estimate of Fair Value Measurement [Member] | Other Current Liabilities [Member] | Commodity Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 4 | $ 2 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Reconciliation (Details) - Guarantees [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Fair Value Assets And Liablities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset (Liability) Beginning Value | $ (7) | $ (6) | $ (8) | $ (6) |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Issuances | (4) | 0 | (4) | 0 |
Settlements | 1 | 0 | 2 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset (Liability) Ending Value | (10) | (6) | (10) | (6) |
Change in unrealized gains on assets and liabilities still held | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Fin58
Fair Value Measurements - Financial Instruments Measured on Nonrecurring Basis (Details) - USD ($) $ in Millions | Jul. 31, 2015 | Oct. 31, 2014 | |
Impaired finance receivables with specific loss reserves [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | $ 21 | $ 20 | |
Impaired finance receivables with specific loss reserves [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | [1] | 21 | 20 |
Specific loss reserves on impaired finance receivables [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Specific loss reserve | (10) | (6) | |
Specific loss reserves on impaired finance receivables [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Specific loss reserve | (10) | (6) | |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Finance Receivables Fair Value Disclosure | $ 11 | $ 14 | |
[1] | 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. |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Values and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | Jul. 31, 2015 | Oct. 31, 2014 | ||
Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Retail Notes | $ 188 | $ 275 | ||
Notes Receivable | 5 | 8 | ||
Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Retail Notes | 195 | 279 | ||
Notes Receivable | 5 | 7 | ||
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Retail Notes | 0 | 0 | ||
Notes Receivable | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Retail Notes | 0 | 0 | ||
Notes Receivable | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Retail Notes | 195 | 279 | ||
Notes Receivable | 5 | 7 | ||
Line of Credit [Member] | Manufacturing Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 695 | 694 | ||
Line of Credit [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 695 | 694 | ||
Line of Credit [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 697 | 704 | ||
Line of Credit [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Line of Credit [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Line of Credit [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 697 | 704 | ||
Line of Credit [Member] | Financial Services Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 1,147 | 1,242 | ||
Line of Credit [Member] | Financial Services Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 1,147 | 1,242 | ||
Line of Credit [Member] | Financial Services Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 1,127 | 1,214 | ||
Line of Credit [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Line of Credit [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Line of Credit [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 1,127 | 1,214 | ||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 26 | 30 | ||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 26 | 30 | ||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 26 | 30 | ||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 26 | 30 | ||
Financing Arrangements [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 44 | 48 | ||
Financing Arrangements [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 19 | 22 | ||
Financing Arrangements [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Financing Arrangements [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Financing Arrangements [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 19 | 22 | ||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 225 | 225 | ||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 225 | 225 | ||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 243 | 232 | ||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 232 | ||
Tax Exempt Bond [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 243 | 0 | ||
Promissory Note [Member] | Manufacturing Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 3 | 10 | ||
Promissory Note [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 3 | 10 | ||
Promissory Note [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 3 | 10 | ||
Promissory Note [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Promissory Note [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Promissory Note [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 3 | 10 | ||
Financed lease obligations [Member] | Manufacturing Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 129 | 184 | ||
Financed lease obligations [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 129 | 184 | ||
Financed lease obligations [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 129 | 184 | ||
Financed lease obligations [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Financed lease obligations [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Financed lease obligations [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 129 | 184 | ||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 19 | 29 | ||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 19 | 29 | ||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 20 | 28 | ||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 20 | 28 | ||
Secured Debt [Member] | Financial Services Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 1,135 | 914 | ||
Secured Debt [Member] | Financial Services Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 1,135 | 914 | ||
Secured Debt [Member] | Financial Services Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 1,129 | 911 | ||
Secured Debt [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Secured Debt [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Secured Debt [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 1,129 | 911 | ||
Commercial Paper [Member] | Financial Services Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 90 | 74 | ||
Commercial Paper [Member] | Financial Services Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 90 | 74 | ||
Commercial Paper [Member] | Financial Services Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 90 | 74 | ||
Commercial Paper [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 90 | |||
Commercial Paper [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 74 | |||
Commercial Paper [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | |||
Commercial Paper [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | |||
Commercial Paper [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | |||
Commercial Paper [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | |||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 26 | 36 | ||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 26 | 36 | ||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 26 | 36 | ||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Borrowings Secured By Operating and Finance Leases [Member] | Financial Services Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 26 | 36 | ||
Eight Point Two Five Percent Senior Notes [Member] | Notes Payable to Banks [Member] | Manufacturing Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 1,182 | 1,180 | ||
Eight Point Two Five Percent Senior Notes [Member] | Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 1,182 | 1,180 | ||
Eight Point Two Five Percent Senior Notes [Member] | Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 1,150 | 1,285 | ||
Eight Point Two Five Percent Senior Notes [Member] | Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 1,150 | 1,285 | ||
Eight Point Two Five Percent Senior Notes [Member] | Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Eight Point Two Five Percent Senior Notes [Member] | Notes Payable to Banks [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | 0 | ||
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 184 | 181 | ||
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | [1] | 184 | 181 | |
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | [1] | 166 | 196 | |
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | [1] | 0 | 0 | |
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | [1] | 0 | 0 | |
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | [1] | 166 | 196 | |
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 377 | 371 | ||
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | [1] | 377 | 371 | |
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | [1] | 333 | 413 | |
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | [1] | 0 | 0 | |
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 0 | [1] | 0 | |
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Subordinated Debt [Member] | Manufacturing Operations [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | [1] | $ 333 | $ 413 | |
[1] | 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. |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Jul. 31, 2015 | Jan. 31, 2015 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | Oct. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Goodwill, Impairment Loss | $ 0 | |||||||
Asset impairment charges | $ 7 | 4 | $ 15 | $ 173 | ||||
Goodwill | 38 | $ 38 | $ 38 | |||||
Cash and Cash Equivalents, Maturity Term | 90 days | |||||||
Marketable Securities, Maturity Term | 90 days | |||||||
Brazilian Reporting Unit [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Goodwill, Impairment Loss | 0 | $ 142 | $ 0 | 142 | ||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 24 | 43 | 24 | |||||
Asset impairment charges | 149 | |||||||
Goodwill | 142 | |||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 3 | $ 0 | $ 7 | $ 3 | 7 | |||
North America Truck [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Asset impairment charges | $ 18 | $ 19 | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 3 | $ 7 |
Financial Instruments and Com61
Financial Instruments and Commodity Contracts - Narrative (Details) - USD ($) | Jul. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 |
Derivative [Line Items] | |||
Derivative, Amount of Hedged Item | $ 0 | $ 0 | |
Derivative, Collateral, Obligation to Return Cash | 1,000,000 | $ 0 | |
Exposure to Credit Risk | 5,000,000 | 1,000,000 | |
Interest Rate Contract [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 0 | 27,000,000 | |
Diesel Fuel Forward Contracts [Member] | Commodity Contract [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 13,000,000 | 24,000,000 | |
Steel Forward Contracts [Member] | Commodity Contract [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 6,000,000 | 23,000,000 | |
Mexican Financial Services [Member] | Asset-backed Securities [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 111,000,000 | ||
Mexican Financial Services [Member] | Interest Rate Cap [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 134,000,000 |
Financial Instruments and Com62
Financial Instruments and Commodity Contracts - Derivative Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | Oct. 31, 2014 | |
Derivative [Line Items] | |||||
Exposure to Credit Risk | $ 5 | $ 5 | $ 1 | ||
Derivative Instruments,Derivative, Gain (Loss) on Derivative, Net | (7) | $ 2 | 2 | $ 4 | |
Interest Rate Cap [Member] | Interest Expense [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments,Derivative, Gain (Loss) on Derivative, Net | 1 | (1) | 1 | (2) | |
Cross currency swaps | Other Income Expense Net [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments,Derivative, Gain (Loss) on Derivative, Net | (1) | 1 | 2 | 1 | |
Foreign Exchange Contract [Member] | Other Income Expense Net [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments,Derivative, Gain (Loss) on Derivative, Net | (6) | 1 | (5) | 2 | |
Commodity Contract [Member] | Cost of Sales [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments,Derivative, Gain (Loss) on Derivative, Net | $ 1 | $ 1 | $ (4) | $ 1 |
Financial Instruments and Com63
Financial Instruments and Commodity Contracts - Foreign Currency Contracts (Details) - Foreign Exchange Contract [Member] € in Millions, CAD in Millions | Jul. 31, 2015EUR (€) | Jul. 31, 2015CAD | Oct. 31, 2014EUR (€) | |
Euro Member Countries, Euro | Maturing Aug 2015 - Oct 2015 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount Expiring Monthly | € 4 | |||
Derivative, Notional Amount | [1] | € 12 | ||
Euro Member Countries, Euro | Maturing Nov 2014 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | € 4 | |||
Euro Member Countries, Euro | Maturing Dec 2014 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 4 | |||
Euro Member Countries, Euro | Maturing Jan 2015 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 5 | |||
Euro Member Countries, Euro | Maturing Feb 2015 - Oct 2015 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount Expiring Monthly | 1 | |||
Derivative, Notional Amount | [2] | € 9 | ||
Canada, Dollars | Maturing Aug 2015 - Oct 2015 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount Expiring Monthly | CAD | CAD 25 | |||
Derivative, Notional Amount | CAD | [3] | 100 | ||
Mexican Pesos | Maturing August 2015 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | CAD | [3] | CAD 813 | ||
[1] | Forward exchange contracts of €4 million mature each month from August 2015 through October 2015. | |||
[2] | Forward exchange contracts of €1 million mature on the last day of each month from February 2015 through October 2015. | |||
[3] | Forward exchange contracts of C$25 million settle each month from August 2015 through November 2015. |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) BRL in Millions | Jul. 16, 2015USD ($) | Mar. 31, 2014BRL | Jan. 31, 2014dealer | Jul. 31, 2015USD ($)enginesite | Jan. 31, 2014BRL | Apr. 30, 2013USD ($) | Jul. 31, 2010BRL | Jul. 31, 2015USD ($)enginesite | Jul. 31, 2015BRLenginesite | Oct. 31, 2014USD ($) | Apr. 30, 2012engine |
Loss Contingencies [Line Items] | |||||||||||
Available stand-by letters of credit and surety bonds | $ 88,000,000 | $ 88,000,000 | |||||||||
Line of Credit Facility, Current Borrowing Capacity | 11,000,000 | 11,000,000 | |||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 7,000,000 | 7,000,000 | |||||||||
Purchase commitments | $ 58,000,000 | 58,000,000 | |||||||||
Long Term Purchase Commitment Cancellation Fees | $ 59,000,000 | ||||||||||
Number of Contaminated Sites | site | 2 | 2 | 2 | ||||||||
Number of Contaminated Sites in Sao Paulo, Brazil | site | 2 | 2 | 2 | ||||||||
Accrual for environmental loss contingencies | $ 21,000,000 | $ 21,000,000 | |||||||||
Sao Paulo Groundwater Notice [Member] | Sanctions [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Damages sought, value | BRL 3 | $ 1,000,000 | |||||||||
International Chamber of Commerce [Member] | Penalties and Interest [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Damages sought, value | BRL | BRL 64 | ||||||||||
Loss Contingency, Number of Plaintiffs | dealer | 4 | ||||||||||
Navitrucks [Member] | Alleged Unfulfilled Promises and Injury to Reputation [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Damages sought, value | BRL | BRL 128 | ||||||||||
Damages from Product Defects [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Notice of Violation, number | engine | 7,750 | 7,750 | 7,750 | 7,600 | |||||||
Civil penalties sought, per violation | $ 37,500 | ||||||||||
California Air Resources Board (CARB) [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Regulatory Penalty | $ 300,000 | $ 2,500,000 | |||||||||
G E Operating Agreement [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Operating Agreement Excess Loss Percentage | 10.00% | ||||||||||
Loss Sharing Agreement, Percentage | 9.50% | 9.50% | 9.50% | ||||||||
Off Balance Sheet Finance Receivables | $ 1,700,000,000 | $ 1,700,000,000 | $ 1,500,000,000 | ||||||||
Off Balance Sheet Finance Receivables Related Originations | 2,300,000,000 | $ 2,300,000,000 | |||||||||
Minimum [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Historical losses on finance receivables, measured as percentage of average balance of related finance receivable | 0.30% | ||||||||||
Maximum [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Historical losses on finance receivables, measured as percentage of average balance of related finance receivable | 2.10% | ||||||||||
G E Operating Agreement [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Equipment leased to others | 119,000,000 | $ 119,000,000 | |||||||||
Manufacturing Operations [Member] | Financed lease obligations [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Long-term Debt | 129,000,000 | 129,000,000 | $ 184,000,000 | ||||||||
Manufacturing Operations [Member] | G E Operating Agreement [Member] | Financed lease obligations [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Long-term Debt | 128,000,000 | 128,000,000 | |||||||||
Pending Litigation [Member] | Disputes [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Damages sought, value | 50,000,000 | ||||||||||
Pending Litigation [Member] | FATMA Notice, Trial [Member] | Penalties [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Damages sought, value | 1,000,000 | BRL 2 | |||||||||
IIAA Vs. Navitrucks [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Gain Contingency, Unrecorded Amount | 22,000,000 | 22,000,000 | BRL 73 | ||||||||
Navitrucks Vs. IIAA [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss Contingency, Estimate of Possible Loss | $ 57,000,000 | $ 57,000,000 | BRL 195 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015USD ($) | Jul. 31, 2014USD ($) | Jul. 31, 2015USD ($)segments | Jul. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number Of Segments | segments | 4 | |||
Intersegment sales and revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Sales and revenues, net | 2,538 | 2,844 | 7,652 | 7,798 |
North America Truck [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales and revenues | 49 | 46 | 121 | 166 |
Sales and revenues, net | 1,834 | 2,002 | 5,470 | 5,342 |
North America Parts [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales and revenues | 11 | 15 | 29 | 43 |
Sales and revenues, net | 625 | 644 | 1,864 | 1,860 |
Corporate And Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales and revenues | (95) | (95) | (263) | (292) |
Sales and revenues, net | $ (93) | $ (95) | $ (256) | $ (292) |
Segment Reporting - Summary of
Segment Reporting - Summary of Segment Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2015 | Oct. 31, 2014 | |
Segment Reporting Information [Line Items] | ||
Segment Assets | $ 6,769 | $ 7,443 |
North America Truck [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Assets | 1,967 | 2,245 |
North America Parts [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Assets | 640 | 672 |
Global Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Assets | 458 | 657 |
Financial Services Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Assets | 2,655 | 2,582 |
Corporate And Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Assets | 1,049 | $ 1,287 |
Deferred tax assets reclassified from Financial Services | $ 16 |
Segment Reporting - Summary o67
Segment Reporting - Summary of Segment Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Segment Reporting Information [Line Items] | ||||
External sales and revenues, net | $ 2,538 | $ 2,844 | $ 7,652 | $ 7,798 |
Sales and revenues, net | 2,538 | 2,844 | 7,652 | 7,798 |
Loss from continuing operations, net of tax | (30) | (3) | (136) | (550) |
Income tax expense | (12) | (14) | (37) | (25) |
Interest expense | 75 | 78 | 227 | 234 |
Equity in income of non-consolidated affiliates | 3 | 2 | 6 | 5 |
Capital expenditures | 27 | 7 | 72 | 57 |
Intersegment sales and revenues | 0 | 0 | 0 | 0 |
Segment Profit Loss | (18) | 11 | (99) | (525) |
Depreciation, Depletion and Amortization | 68 | 71 | 221 | 256 |
North America Truck [Member] | ||||
Segment Reporting Information [Line Items] | ||||
External sales and revenues, net | 1,785 | 1,956 | 5,349 | 5,176 |
Sales and revenues, net | 1,834 | 2,002 | 5,470 | 5,342 |
Loss from continuing operations, net of tax | (36) | (3) | (105) | (340) |
Income tax expense | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Equity in income of non-consolidated affiliates | 1 | 1 | 4 | 3 |
Capital expenditures | 20 | 4 | 58 | 42 |
Intersegment sales and revenues | 49 | 46 | 121 | 166 |
Segment Profit Loss | (36) | (3) | (105) | (340) |
Depreciation, Depletion and Amortization | 40 | 42 | 139 | 171 |
North America Parts [Member] | ||||
Segment Reporting Information [Line Items] | ||||
External sales and revenues, net | 614 | 629 | 1,835 | 1,817 |
Sales and revenues, net | 625 | 644 | 1,864 | 1,860 |
Loss from continuing operations, net of tax | 151 | 137 | 429 | 378 |
Income tax expense | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Equity in income of non-consolidated affiliates | 1 | 1 | 3 | 3 |
Capital expenditures | 1 | 0 | 1 | 5 |
Intersegment sales and revenues | 11 | 15 | 29 | 43 |
Segment Profit Loss | 151 | 137 | 429 | 378 |
Depreciation, Depletion and Amortization | 4 | 4 | 11 | 12 |
Global Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
External sales and revenues, net | 100 | 221 | 353 | 690 |
Sales and revenues, net | 109 | 233 | 391 | 716 |
Loss from continuing operations, net of tax | (26) | (21) | (40) | (218) |
Income tax expense | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Equity in income of non-consolidated affiliates | 1 | 0 | (1) | (1) |
Capital expenditures | 1 | 2 | 4 | 6 |
Intersegment sales and revenues | 9 | 12 | 38 | 26 |
Segment Profit Loss | (26) | (21) | (40) | (218) |
Depreciation, Depletion and Amortization | 6 | 7 | 18 | 21 |
Financial Services Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
External sales and revenues, net | 37 | 38 | 108 | 115 |
Sales and revenues, net | 63 | 60 | 183 | 172 |
Loss from continuing operations, net of tax | 26 | 24 | 72 | 71 |
Income tax expense | 0 | 0 | 0 | 0 |
Interest expense | 19 | 18 | 57 | 52 |
Equity in income of non-consolidated affiliates | 0 | 0 | 0 | 0 |
Capital expenditures | 0 | 0 | 2 | 1 |
Investment Income, Interest | 46 | 44 | 135 | 126 |
Intersegment sales and revenues | 26 | 22 | 75 | 57 |
Segment Profit Loss | 26 | 24 | 72 | 71 |
Depreciation, Depletion and Amortization | 13 | 12 | 37 | 33 |
Corporate And Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
External sales and revenues, net | 2 | 0 | 7 | 0 |
Sales and revenues, net | (93) | (95) | (256) | (292) |
Loss from continuing operations, net of tax | (145) | (140) | (492) | (441) |
Income tax expense | (12) | (14) | (37) | (25) |
Interest expense | 56 | 60 | 170 | 182 |
Equity in income of non-consolidated affiliates | 0 | 0 | 0 | 0 |
Capital expenditures | 5 | 1 | 7 | 3 |
Intersegment sales and revenues | (95) | (95) | (263) | (292) |
Segment Profit Loss | (133) | (126) | (455) | (416) |
Depreciation, Depletion and Amortization | $ 5 | $ 6 | $ 16 | $ 19 |
Segment Reporting - Summary o68
Segment Reporting - Summary of Segment Long Lived Assets and Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Sales and revenues, net | $ 2,538 | $ 2,844 | $ 7,652 | $ 7,798 |
Financial Services Operations [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Investment Income, Interest | 46 | 44 | 135 | 126 |
Sales and revenues, net | $ 63 | $ 60 | $ 183 | $ 172 |
Stockholders' Deficit - Narrati
Stockholders' Deficit - Narrative (Details) - Debt Instrument, Name [Domain] - Option Indexed to Issuer's Equity, Type [Domain] - Long-term Debt, Type [Domain] - $ / shares shares in Millions | Jul. 31, 2015 | Oct. 31, 2014 |
Class of Stock [Line Items] | ||
Common stock, shares issued | 86.8 | 86.8 |
Common stock, shares authorized | 220 | 220 |
Common stock, par value | $ 0.10 | $ 0.10 |
Stockholders' Deficit Accumulat
Stockholders' Deficit Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Loss, Beginning Balance | $ (2,284) | $ (1,788) | $ (2,263) | $ (1,824) |
Other comprehensive loss before reclassifications | (47) | 4 | (133) | (12) |
Amounts reclassified out of accumulated other comprehensive loss | 33 | 26 | 98 | 78 |
Net current-period other comprehensive income (loss) | (14) | 30 | (35) | 66 |
Accumulated Other Comprehensive Loss, Ending Balance | (2,298) | (1,758) | (2,298) | (1,758) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||
Total before tax | (23) | 7 | (113) | (520) |
Tax expense | (12) | (14) | (37) | (25) |
Net income (loss) attributable to Navistar International Corporation | (28) | (2) | (134) | (547) |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Loss, Beginning Balance | 1 | 1 | ||
Other comprehensive loss before reclassifications | 0 | 0 | ||
Amounts reclassified out of accumulated other comprehensive loss | 0 | 0 | ||
Net current-period other comprehensive income (loss) | 0 | 0 | ||
Accumulated Other Comprehensive Loss, Ending Balance | 1 | 1 | ||
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Loss, Beginning Balance | (213) | (89) | (127) | (75) |
Other comprehensive loss before reclassifications | (47) | (3) | (133) | (17) |
Amounts reclassified out of accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Net current-period other comprehensive income (loss) | (47) | (3) | (133) | (17) |
Accumulated Other Comprehensive Loss, Ending Balance | (260) | (92) | (260) | (92) |
Pension Benefits | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Loss, Beginning Balance | (2,072) | (1,699) | (2,137) | (1,749) |
Other comprehensive loss before reclassifications | 0 | 7 | 0 | 5 |
Amounts reclassified out of accumulated other comprehensive loss | 33 | 26 | 98 | 78 |
Net current-period other comprehensive income (loss) | 33 | 33 | 98 | 83 |
Accumulated Other Comprehensive Loss, Ending Balance | (2,039) | (1,666) | (2,039) | (1,666) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension Benefits | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||
Total before tax | 33 | 27 | 99 | 79 |
Tax expense | 0 | (1) | (1) | (1) |
Net income (loss) attributable to Navistar International Corporation | 33 | 26 | 98 | 78 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension Benefits | Selling, General and Administrative Expenses [Member] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||
Amortization of prior service costs | (1) | (1) | (3) | (3) |
Amortization of actuarial loss | $ (34) | $ 28 | $ (102) | $ 82 |
Loss Per Share Attributable t71
Loss Per Share Attributable to Navistar International Corporation - Basic & Diluted Loss per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Earnings Per Share [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 15 | 23.8 | 16 | 26.2 |
Loss from continuing operations, net of tax | $ (30) | $ (3) | $ (136) | $ (550) |
Income from discontinued operations, net of tax | 2 | 1 | 2 | 3 |
Net loss attributable to Navistar International Corporation | $ (28) | $ (2) | $ (134) | $ (547) |
Basic (in shares) | 81.6 | 81.4 | 81.5 | 81.3 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 | 0 | 0 |
Diluted (in shares) | 81.6 | 81.4 | 81.5 | 81.3 |
Basic: Loss from Continuing Operations (in dollars per share) | $ (0.37) | $ (0.04) | $ (1.67) | $ (6.77) |
Basic: Income (Loss) from Discontinued Operations (in dollars per share) | 0.03 | 0.02 | 0.03 | 0.04 |
Basic (in dollars per share) | (0.34) | (0.02) | (1.64) | (6.73) |
Diluted: Loss from Continuing Operations (in dollars per share) | (0.37) | (0.04) | (1.67) | (6.77) |
Diluted: Income (Loss) from Discontinued Operations (in dollars per share) | 0.03 | 0.02 | 0.03 | 0.04 |
Diluted (in dollars per share) | $ (0.34) | $ (0.02) | $ (1.64) | $ (6.73) |
Loss Per Share Attributable t72
Loss Per Share Attributable to Navistar International Corporation - Narrative (Details) - Option Indexed to Issuer's Equity, Type [Domain] | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Oct. 31, 2009$ / shares | Jul. 31, 2015$ / sharesshares | Jan. 31, 2015shares | Jul. 31, 2014shares | Apr. 30, 2014shares | Jul. 31, 2015USD ($)$ / sharesshares | Jul. 31, 2014shares | Apr. 30, 2015shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Shares of Warrants Unwound | 1,939,376 | 6,523,319 | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 15,000,000 | 23,800,000 | 16,000,000 | 26,200,000 | ||||
Shares related to warrants | 4,800,000 | 7,000,000 | ||||||
Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Shares of Warrants Unwound | 1,939,376 | 6,523,319 | ||||||
Class of Warrant or Right, Outstanding | 2,900,000 | |||||||
Shares related to convertible notes | 3,300,000 | 6,000,000 | ||||||
Three Point Zero Percent Senior Subordinated Convertible Notes [Member] | Convertible Debt Securities [Member] | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Debt Instrument, Convertible, Conversion Ratio | 19.891 | |||||||
Debt Instrument Convertible Conversion Ratio Basis | $ | $ 1,000 | |||||||
Option Indexed to Issuer's Equity, Strike Price | $ / shares | $ 50.27 | |||||||
Investment Warrants, Exercise Price | $ / shares | $ 60.14 | |||||||
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Shares related to convertible notes | 3,400,000 | 3,400,000 | 3,400,000 | 3,400,000 | ||||
Four Point Five Zero Senior Subordinated Convertible Notes [Member] | Convertible Debt Securities [Member] | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Debt Instrument, Convertible, Conversion Ratio | 17.1233 | |||||||
Debt Instrument Convertible Conversion Ratio Basis | $ | $ 1,000 | |||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 58.40 | $ 58.40 | ||||||
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Debt Instrument, Convertible, Conversion Ratio | 18.4946 | |||||||
Option Indexed to Issuer's Equity, Strike Price | $ / shares | $ 54.07 | |||||||
Shares related to convertible notes | 7,600,000 | 7,600,000 | 7,600,000 | 5,100,000 | ||||
Four Point Seven Five Senior Subordinated Convertible Notes [Member] [Member] | Convertible Debt Securities [Member] | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Debt Instrument Convertible Conversion Ratio Basis | $ | $ 1,000 |
Condensed Consolidating Guara73
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Other financing activities | $ 22 | |||
Other financing activities | $ (27) | 0 | ||
Sales and revenues, net | $ 2,538 | $ 2,844 | 7,652 | 7,798 |
Costs of products sold | 2,172 | 2,417 | 6,577 | 6,899 |
Restructuring charges | 13 | 16 | 22 | 27 |
Asset impairment charges | 7 | 4 | 15 | 173 |
All other operating expenses (income) | 360 | 388 | 1,120 | 1,199 |
Total costs and expenses | 2,552 | 2,825 | 7,734 | 8,298 |
Equity in income of non-consolidated affiliates | 3 | 2 | 6 | 5 |
Income (loss) before income taxes | (11) | 21 | (76) | (495) |
Income tax expense | (12) | (14) | (37) | (25) |
Total before tax | (23) | 7 | (113) | (520) |
Income from discontinued operations, net of tax | 2 | 1 | 2 | 3 |
Net income (loss) | (21) | 8 | (111) | (517) |
Less: Net income attributable to non-controlling interests | 7 | 10 | 23 | 30 |
Net income (loss) attributable to Navistar International Corporation | (28) | (2) | (134) | (547) |
Parent Company [Member] | ||||
Other financing activities | 18 | |||
Other financing activities | 0 | |||
Sales and revenues, net | 0 | 0 | 0 | 0 |
Costs of products sold | 0 | 0 | 0 | 0 |
Restructuring charges | 0 | 0 | 0 | 0 |
Asset impairment charges | 0 | 0 | 0 | 0 |
All other operating expenses (income) | 12 | 17 | 62 | 94 |
Total costs and expenses | 12 | 17 | 62 | 94 |
Equity in income of non-consolidated affiliates | (16) | 15 | (72) | (466) |
Income (loss) before income taxes | (28) | (2) | (134) | (560) |
Income tax expense | 0 | 0 | 0 | 13 |
Total before tax | (28) | (2) | (134) | (547) |
Income from discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net income (loss) | (28) | (2) | (134) | (547) |
Less: Net income attributable to non-controlling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Navistar International Corporation | (28) | (2) | (134) | (547) |
Guarantor Subsidiaries [Member] | ||||
Other financing activities | 44 | |||
Other financing activities | (54) | |||
Sales and revenues, net | 1,892 | 1,962 | 5,511 | 5,279 |
Costs of products sold | 1,752 | 1,761 | 5,025 | 4,983 |
Restructuring charges | 5 | (1) | 8 | 9 |
Asset impairment charges | 0 | 13 | 8 | 13 |
All other operating expenses (income) | 262 | 246 | 808 | 760 |
Total costs and expenses | 2,019 | 2,019 | 5,849 | 5,765 |
Equity in income of non-consolidated affiliates | 76 | 17 | 155 | (135) |
Income (loss) before income taxes | (51) | (40) | (183) | (621) |
Income tax expense | (1) | (2) | (3) | (3) |
Total before tax | (52) | (42) | (186) | (624) |
Income from discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net income (loss) | (52) | (42) | (186) | (624) |
Less: Net income attributable to non-controlling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Navistar International Corporation | (52) | (42) | (186) | (624) |
Non-Guarantor Subsidiaries [Member] | ||||
Other financing activities | (70) | |||
Other financing activities | (99) | |||
Sales and revenues, net | 1,875 | 2,181 | 5,586 | 5,971 |
Costs of products sold | 1,627 | 1,938 | 4,932 | 5,331 |
Restructuring charges | 8 | 17 | 14 | 18 |
Asset impairment charges | 7 | (11) | 7 | 160 |
All other operating expenses (income) | 102 | 141 | 306 | 389 |
Total costs and expenses | 1,744 | 2,085 | 5,259 | 5,898 |
Equity in income of non-consolidated affiliates | 2 | 1 | 3 | 2 |
Income (loss) before income taxes | 133 | 97 | 330 | 75 |
Income tax expense | (11) | (12) | (34) | (35) |
Total before tax | 122 | 85 | 296 | 40 |
Income from discontinued operations, net of tax | 2 | 1 | 2 | 3 |
Net income (loss) | 124 | 86 | 298 | 43 |
Less: Net income attributable to non-controlling interests | 7 | 10 | 23 | 30 |
Net income (loss) attributable to Navistar International Corporation | 117 | 76 | 275 | 13 |
Consolidation, Eliminations [Member] | ||||
Other financing activities | 30 | |||
Other financing activities | 126 | |||
Sales and revenues, net | (1,229) | (1,299) | (3,445) | (3,452) |
Costs of products sold | (1,207) | (1,282) | (3,380) | (3,415) |
Restructuring charges | 0 | 0 | 0 | 0 |
Asset impairment charges | 0 | 2 | 0 | 0 |
All other operating expenses (income) | (16) | (16) | (56) | (44) |
Total costs and expenses | (1,223) | (1,296) | (3,436) | (3,459) |
Equity in income of non-consolidated affiliates | (59) | (31) | (80) | 604 |
Income (loss) before income taxes | (65) | (34) | (89) | 611 |
Income tax expense | 0 | 0 | 0 | 0 |
Total before tax | (65) | (34) | (89) | 611 |
Income from discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net income (loss) | (65) | (34) | (89) | 611 |
Less: Net income attributable to non-controlling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Navistar International Corporation | $ (65) | $ (34) | $ (89) | $ 611 |
Condensed Consolidating Guara74
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Statement of Comprehsive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Net loss attributable to Navistar International Corporation | $ (28) | $ (2) | $ (134) | $ (547) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (47) | (3) | (133) | (17) |
Defined benefit plans (net of tax of $0, for all entities) | 33 | 33 | 98 | 83 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (14) | 30 | (35) | 66 |
Total comprehensive loss attributable to Navistar International Corporation | (42) | 28 | (169) | (481) |
Defined benefit plan, tax | 0 | (3) | (1) | (4) |
Parent Company [Member] | ||||
Net loss attributable to Navistar International Corporation | (28) | (2) | (134) | (547) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (47) | (3) | (133) | (17) |
Defined benefit plans (net of tax of $0, for all entities) | 33 | 33 | 98 | 83 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (14) | 30 | (35) | 66 |
Total comprehensive loss attributable to Navistar International Corporation | (42) | 28 | (169) | (481) |
Defined benefit plan, tax | 0 | (3) | ||
Guarantor Subsidiaries [Member] | ||||
Net loss attributable to Navistar International Corporation | (52) | (42) | (186) | (624) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Defined benefit plans (net of tax of $0, for all entities) | 8 | 23 | 70 | 73 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 8 | 23 | 70 | 73 |
Total comprehensive loss attributable to Navistar International Corporation | (44) | (19) | (116) | (551) |
Defined benefit plan, tax | 14 | 0 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Net loss attributable to Navistar International Corporation | 117 | 76 | 275 | 13 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (47) | (3) | (133) | (17) |
Defined benefit plans (net of tax of $0, for all entities) | 25 | 10 | 28 | 10 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (22) | 7 | (105) | (7) |
Total comprehensive loss attributable to Navistar International Corporation | 95 | 83 | 170 | 6 |
Defined benefit plan, tax | (14) | (3) | ||
Consolidation, Eliminations [Member] | ||||
Net loss attributable to Navistar International Corporation | (65) | (34) | (89) | 611 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 47 | 3 | 133 | 17 |
Defined benefit plans (net of tax of $0, for all entities) | (33) | (33) | (98) | (83) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 14 | (30) | 35 | (66) |
Total comprehensive loss attributable to Navistar International Corporation | (51) | (64) | $ (54) | $ 545 |
Defined benefit plan, tax | $ 0 | $ 3 |
Condensed Consolidating Guara75
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Balance Sheet (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jul. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Oct. 31, 2013 | |
Cash and cash equivalents | $ 547 | $ 497 | $ 547 | $ 755 |
Marketable securities | 293 | 605 | ||
Restricted cash | 357 | 171 | ||
Finance and other receivables, net | 2,394 | 2,616 | ||
Inventories | 1,199 | 1,319 | ||
Investments in non-consolidated affiliates | 71 | 73 | ||
Property and equipment, net | 1,375 | 1,562 | ||
Goodwill | 38 | 38 | ||
Deferred taxes, net (A) | 163 | 200 | ||
Other | 332 | 362 | ||
Total assets | 6,769 | 7,443 | ||
Debt | 5,286 | 5,224 | ||
Postretirement benefits liabilities (A) | 2,840 | 2,955 | ||
Amounts due to (from) affiliates | 0 | 0 | ||
Other liabilities | 3,452 | 3,882 | ||
Total liabilities | 11,578 | 12,061 | ||
Redeemable equity securities | 1 | 2 | ||
Stockholders’ equity attributable to non-controlling interests | 7 | 34 | ||
Stockholders’ equity (deficit) attributable to Navistar International Corporation (A) | (4,817) | (4,654) | ||
Total liabilities and stockholders’ deficit | 6,769 | 7,443 | ||
Parent Company [Member] | ||||
Cash and cash equivalents | 226 | 101 | ||
Marketable securities | 149 | 379 | ||
Restricted cash | 17 | 19 | ||
Finance and other receivables, net | 3 | 0 | ||
Inventories | 0 | 0 | ||
Investments in non-consolidated affiliates | (7,352) | (7,245) | ||
Property and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Deferred taxes, net (A) | 5 | 5 | ||
Other | 35 | 34 | ||
Total assets | (6,917) | (6,707) | ||
Debt | 1,968 | 1,958 | ||
Postretirement benefits liabilities (A) | 0 | 0 | ||
Amounts due to (from) affiliates | (7,669) | (7,618) | ||
Other liabilities | 3,600 | 3,605 | ||
Total liabilities | (2,101) | (2,055) | ||
Redeemable equity securities | 1 | 2 | ||
Stockholders’ equity attributable to non-controlling interests | 0 | 0 | ||
Stockholders’ equity (deficit) attributable to Navistar International Corporation (A) | (4,817) | (4,654) | ||
Total liabilities and stockholders’ deficit | (6,917) | (6,707) | ||
Guarantor Subsidiaries [Member] | ||||
Cash and cash equivalents | 44 | 53 | ||
Marketable securities | 0 | 0 | ||
Restricted cash | 3 | 4 | ||
Finance and other receivables, net | 142 | 124 | ||
Inventories | 731 | 792 | ||
Investments in non-consolidated affiliates | 6,570 | 6,410 | ||
Property and equipment, net | 751 | 827 | ||
Goodwill | 0 | 0 | ||
Deferred taxes, net (A) | 9 | 25 | ||
Other | 133 | 137 | ||
Total assets | 8,383 | 8,372 | ||
Debt | 872 | 937 | ||
Postretirement benefits liabilities (A) | 2,651 | 2,752 | ||
Amounts due to (from) affiliates | 12,082 | 11,739 | ||
Other liabilities | 202 | 370 | ||
Total liabilities | 15,807 | 15,798 | ||
Redeemable equity securities | 0 | 0 | ||
Stockholders’ equity attributable to non-controlling interests | 0 | 0 | ||
Stockholders’ equity (deficit) attributable to Navistar International Corporation (A) | (7,424) | (7,426) | ||
Total liabilities and stockholders’ deficit | 8,383 | 8,372 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Cash and cash equivalents | 277 | 343 | ||
Marketable securities | 144 | 226 | ||
Restricted cash | 337 | 148 | ||
Finance and other receivables, net | 2,271 | 2,504 | ||
Inventories | 481 | 539 | ||
Investments in non-consolidated affiliates | 67 | 71 | ||
Property and equipment, net | 633 | 740 | ||
Goodwill | 38 | 38 | ||
Deferred taxes, net (A) | 149 | 169 | ||
Other | 166 | 194 | ||
Total assets | 4,563 | 4,972 | ||
Debt | 2,449 | 2,336 | ||
Postretirement benefits liabilities (A) | 189 | 203 | ||
Amounts due to (from) affiliates | (4,590) | (4,267) | ||
Other liabilities | (275) | (22) | ||
Total liabilities | (2,227) | (1,750) | ||
Redeemable equity securities | 0 | 0 | ||
Stockholders’ equity attributable to non-controlling interests | 7 | 34 | ||
Stockholders’ equity (deficit) attributable to Navistar International Corporation (A) | 6,783 | 6,688 | ||
Total liabilities and stockholders’ deficit | 4,563 | 4,972 | ||
Deferred tax assets reclassified from NIC | 40 | |||
Consolidation, Eliminations [Member] | ||||
Cash and cash equivalents | 0 | 0 | ||
Marketable securities | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Finance and other receivables, net | (22) | (12) | ||
Inventories | (13) | (12) | ||
Investments in non-consolidated affiliates | 786 | 837 | ||
Property and equipment, net | (9) | (5) | ||
Goodwill | 0 | 0 | ||
Deferred taxes, net (A) | 0 | 1 | ||
Other | (2) | (3) | ||
Total assets | 740 | 806 | ||
Debt | (3) | (7) | ||
Postretirement benefits liabilities (A) | 0 | 0 | ||
Amounts due to (from) affiliates | 177 | 146 | ||
Other liabilities | (75) | (71) | ||
Total liabilities | 99 | 68 | ||
Redeemable equity securities | 0 | 0 | ||
Stockholders’ equity attributable to non-controlling interests | 0 | 0 | ||
Stockholders’ equity (deficit) attributable to Navistar International Corporation (A) | 641 | 738 | ||
Total liabilities and stockholders’ deficit | $ 740 | $ 806 | ||
Manufacturing Operations [Member] | Notes Payable to Banks [Member] | Eight Point Two Five Percent Senior Notes [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.25% |
Condensed Consolidating Guara76
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Statement of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Net cash provided by (used in) operations | $ (14) | $ (344) |
Net change in restricted cash and cash equivalents | (192) | (30) |
Net sales of marketable securities | 312 | 212 |
Capital expenditures and purchase of equipment leased to others | (130) | (214) |
Other investing activities | 15 | 46 |
Net cash provided by investing activities | 5 | 14 |
Net borrowings (repayments) of debt | 113 | 112 |
Other financing activities | 22 | |
Other financing activities | (27) | 0 |
Net cash provided by financing activities | 86 | 134 |
Effect of exchange rate changes on cash and cash equivalents | (27) | (12) |
Increase (decrease) in cash and cash equivalents | 50 | (208) |
Cash and cash equivalents at beginning of the period | 497 | 755 |
Cash and cash equivalents at beginning of the period | 547 | 547 |
Parent Company [Member] | ||
Net cash provided by (used in) operations | (106) | (528) |
Net change in restricted cash and cash equivalents | 1 | 6 |
Net sales of marketable securities | 230 | 315 |
Capital expenditures and purchase of equipment leased to others | 0 | 0 |
Other investing activities | 0 | 0 |
Net cash provided by investing activities | 231 | 321 |
Net borrowings (repayments) of debt | 0 | (11) |
Other financing activities | 18 | |
Other financing activities | 0 | |
Net cash provided by financing activities | 0 | 7 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 125 | (200) |
Cash and cash equivalents at beginning of the period | 101 | 336 |
Cash and cash equivalents at beginning of the period | 226 | 136 |
Guarantor Subsidiaries [Member] | ||
Net cash provided by (used in) operations | 282 | (1,078) |
Net change in restricted cash and cash equivalents | 1 | 0 |
Net sales of marketable securities | 0 | 0 |
Capital expenditures and purchase of equipment leased to others | (52) | (89) |
Other investing activities | 3 | 22 |
Net cash provided by investing activities | (48) | (67) |
Net borrowings (repayments) of debt | (189) | 1,067 |
Other financing activities | 44 | |
Other financing activities | (54) | |
Net cash provided by financing activities | (243) | 1,111 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Increase (decrease) in cash and cash equivalents | (9) | (34) |
Cash and cash equivalents at beginning of the period | 53 | 72 |
Cash and cash equivalents at beginning of the period | 44 | 38 |
Non-Guarantor Subsidiaries [Member] | ||
Net cash provided by (used in) operations | 62 | 156 |
Net change in restricted cash and cash equivalents | (194) | (36) |
Net sales of marketable securities | 82 | (103) |
Capital expenditures and purchase of equipment leased to others | (78) | (125) |
Other investing activities | 12 | 24 |
Net cash provided by investing activities | (178) | (240) |
Net borrowings (repayments) of debt | 176 | 192 |
Other financing activities | (70) | |
Other financing activities | (99) | |
Net cash provided by financing activities | 77 | 122 |
Effect of exchange rate changes on cash and cash equivalents | (27) | (12) |
Increase (decrease) in cash and cash equivalents | (66) | 26 |
Cash and cash equivalents at beginning of the period | 343 | 347 |
Cash and cash equivalents at beginning of the period | 277 | 373 |
Consolidation, Eliminations [Member] | ||
Net cash provided by (used in) operations | (252) | 1,106 |
Net change in restricted cash and cash equivalents | 0 | 0 |
Net sales of marketable securities | 0 | 0 |
Capital expenditures and purchase of equipment leased to others | 0 | 0 |
Other investing activities | 0 | 0 |
Net cash provided by investing activities | 0 | 0 |
Net borrowings (repayments) of debt | 126 | (1,136) |
Other financing activities | 30 | |
Other financing activities | 126 | |
Net cash provided by financing activities | 252 | (1,106) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of the period | 0 | 0 |
Cash and cash equivalents at beginning of the period | $ 0 | $ 0 |