Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Jul. 31, 2016 | Aug. 31, 2016 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
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 | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 81,616,811 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Sales and revenues | ||||
Sales of manufactured products, net | $ 2,052 | $ 2,501 | $ 5,946 | $ 7,544 |
Finance revenues | 34 | 37 | 102 | 108 |
Sales and revenues, net | 2,086 | 2,538 | 6,048 | 7,652 |
Costs and expenses | ||||
Costs of products sold | 1,757 | 2,172 | 5,068 | 6,577 |
Restructuring charges | 5 | 13 | 11 | 22 |
Asset impairment charges | 12 | 7 | 17 | 15 |
Selling, general and administrative expenses | 197 | 220 | 604 | 704 |
Engineering and product development costs | 62 | 71 | 181 | 226 |
Interest expense | 84 | 75 | 246 | 227 |
Other income, net | (15) | (6) | (62) | (37) |
Total costs and expenses | 2,102 | 2,552 | 6,065 | 7,734 |
Equity in income of non-consolidated affiliates | 2 | 3 | 3 | 6 |
Income (loss) before income taxes | (14) | (11) | (14) | (76) |
Income tax expense | (14) | (12) | (25) | (37) |
Earnings (loss) from continuing operations | (28) | (23) | (39) | (113) |
Income from discontinued operations, net of tax | 0 | 2 | 0 | 2 |
Net income (loss) | (28) | (21) | (39) | (111) |
Less: Net income attributable to non-controlling interests | 6 | 7 | 24 | 23 |
Net income (loss) attributable to Navistar International Corporation | (34) | (28) | (63) | (134) |
Loss from continuing operations, net of tax | (34) | (30) | (63) | (136) |
Income from discontinued operations, net of tax | $ 0 | $ 2 | $ 0 | $ 2 |
Earnings (loss) per share attributable to Navistar International Corporation: | ||||
Basic: Loss from Continuing Operations (in dollars per share) | $ (0.42) | $ (0.37) | $ (0.77) | $ (1.67) |
Basic: Income (Loss) from Discontinued Operations (in dollars per share) | 0 | 0.03 | 0 | 0.03 |
Basic (in dollars per share) | (0.42) | (0.34) | (0.77) | (1.64) |
Diluted: Loss from Continuing Operations (in dollars per share) | (0.42) | (0.37) | (0.77) | (1.67) |
Diluted: Income (Loss) from Discontinued Operations (in dollars per share) | 0 | 0.03 | 0 | 0.03 |
Diluted (in dollars per share) | $ (0.42) | $ (0.34) | $ (0.77) | $ (1.64) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 81.7 | 81.6 | 81.7 | 81.5 |
Diluted (in shares) | 81.7 | 81.6 | 81.7 | 81.5 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Net income (loss) | $ (28) | $ (21) | $ (39) | $ (111) |
Net loss attributable to Navistar International Corporation | (34) | (28) | (63) | (134) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (10) | (47) | 7 | (133) |
Defined benefit plans (net of tax) | 34 | 33 | 82 | 98 |
Total other comprehensive income (loss) | 24 | (14) | 89 | (35) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (4) | (35) | 50 | (146) |
Less: Net income attributable to non-controlling interests | 6 | 7 | 24 | 23 |
Total comprehensive income (loss) attributable to Navistar International Corporation | (10) | (42) | 26 | (169) |
Noncontrolling Interest [Member] | ||||
Other comprehensive income (loss): | ||||
Less: Net income attributable to non-controlling interests | $ 6 | $ 7 | $ 24 | $ 23 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jul. 31, 2016 | Oct. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 547 | $ 912 |
Restricted cash and cash equivalents | 115 | 0 |
Marketable securities | 140 | 159 |
Trade and other receivables, net | 301 | 429 |
Finance receivables, net | 1,410 | 1,779 |
Inventories, net | 1,084 | 1,135 |
Deferred taxes, net | 0 | 36 |
Other current assets | 175 | 172 |
Total current assets | 3,772 | 4,622 |
Restricted cash | 66 | 121 |
Trade and other receivables, net | 16 | 13 |
Finance receivables, net | 203 | 216 |
Investments in non-consolidated affiliates | 60 | 66 |
Property and equipment (net of accumulated depreciation and amortization of $2,592 and $2,546, respectively) | 1,257 | 1,345 |
Goodwill | 38 | 38 |
Intangible assets (net of accumulated amortization of $133 and $120, respectively) | 56 | 57 |
Deferred taxes, net | 153 | 128 |
Other noncurrent assets | 98 | 86 |
Total assets | 5,719 | 6,692 |
Current liabilities | ||
Notes payable and current maturities of long-term debt | 1,389 | 1,110 |
Accounts payable | 1,003 | 1,301 |
Other current liabilities | 1,141 | 1,377 |
Total current liabilities | 3,533 | 3,788 |
Long-term debt | 3,676 | 4,188 |
Postretirement benefits liabilities | 2,907 | 2,995 |
Deferred taxes, net | 0 | 14 |
Other noncurrent liabilities | 737 | 867 |
Total liabilities | 10,853 | 11,852 |
Stockholders’ deficit | ||
Series D convertible junior preference stock | 2 | 2 |
Common stock, $0.10 par value per share (86.8 shares issued and 220 shares authorized at both dates) | 9 | 9 |
Additional paid-in capital | 2,499 | 2,499 |
Accumulated deficit | (4,929) | (4,866) |
Accumulated other comprehensive loss | (2,512) | (2,601) |
Common stock held in treasury, at cost (5.2 and 5.3 shares, respectively) | (206) | (210) |
Total stockholders’ deficit attributable to Navistar International Corporation | (5,137) | (5,167) |
Stockholders’ equity attributable to non-controlling interests | 3 | 7 |
Total stockholders’ deficit | (5,134) | (5,160) |
Total liabilities and stockholders’ deficit | $ 5,719 | $ 6,692 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Jul. 31, 2016 | Oct. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 2,591 | $ 2,546 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 133 | $ 120 |
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 | 5.2 | 5.3 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Cash flows from operating activities | ||
Net income (loss) | $ (39) | $ (111) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 111 | 165 |
Depreciation of equipment leased to others | 53 | 56 |
Deferred taxes, including change in valuation allowance | 0 | (9) |
Asset impairment charges | 17 | 15 |
Gain (Loss) on Sales of Investments and Businesses, Net | 2 | 0 |
Amortization of debt issuance costs and discount | 27 | 28 |
Stock-based compensation | 9 | 8 |
Provision for doubtful accounts, net of recoveries | 9 | (6) |
Equity in income of non-consolidated affiliates, net of dividends | 5 | 2 |
Other non-cash operating activities | (12) | (28) |
Changes in other assets and liabilities, exclusive of the effects of businesses disposed: | ||
Increase (Decrease) in Operating Capital | (196) | (134) |
Net cash used in operating activities | (14) | (14) |
Cash flows from investing activities | ||
Purchases of marketable securities | (378) | (515) |
Sales of marketable securities | 358 | 764 |
Maturities of marketable securities | 39 | 63 |
Net change in restricted cash and cash equivalents | (64) | (192) |
Capital expenditures | (83) | (72) |
Purchases of equipment leased to others | (94) | (58) |
Proceeds from sales of property and equipment | 20 | 12 |
Payments to Acquire Equity Method Investments | (1) | 0 |
Proceeds from Divestiture of Businesses and Interests in Affiliates | 36 | 7 |
Acquisition of Intangibles | 0 | (4) |
Net cash provided by (used in) investing activities | (167) | 5 |
Cash flows from financing activities | ||
Proceeds from issuance of securitized debt | 72 | 490 |
Principal payments on securitized debt | (69) | (247) |
Net change in secured revolving credit facilities | 26 | (9) |
Proceeds from issuance of non-securitized debt | 163 | 166 |
Principal payments on non-securitized debt | (235) | (234) |
Net change in notes and debt outstanding under revolving credit facilities | (151) | (41) |
Principal payments under financing arrangements and capital lease obligations | (1) | (2) |
Debt issuance costs | (12) | (10) |
Proceeds from financed lease obligations | 17 | 26 |
Proceeds from exercise of stock options | 0 | 1 |
Dividends paid by subsidiaries to non-controlling interest | (28) | (27) |
Cash provided by (used in) Other Financing Activities | 1 | (27) |
Net cash provided by (used in) financing activities | (217) | 86 |
Effect of exchange rate changes on cash and cash equivalents | 33 | (27) |
Increase (decrease) in cash and cash equivalents | (365) | 50 |
Cash and cash equivalents at beginning of the period | 912 | 497 |
Cash and cash equivalents at end of the period | $ 547 | $ 547 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' 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] |
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) | ||||||
Less: Net income attributable to non-controlling interests | 23 | 23 | ||||||
Net income (loss) | (111) | |||||||
Total other comprehensive income | (35) | (35) | ||||||
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) | ||||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | (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 |
Stockholders' Equity balance at beginning of period at Oct. 31, 2015 | (5,160) | 2 | 9 | 2,499 | (4,866) | (2,601) | (210) | 7 |
Net loss attributable to Navistar International Corporation | (63) | (63) | ||||||
Less: Net income attributable to non-controlling interests | 24 | 24 | ||||||
Net income (loss) | (39) | |||||||
Total other comprehensive income | 89 | 89 | ||||||
Stock-based compensation | 3 | 3 | ||||||
Stock ownership programs | 0 | (4) | 4 | |||||
Dividends paid by subsidiaries to non-controlling interest | (28) | (28) | ||||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | (1) | (1) | 0 | |||||
Stockholders' Equity balance at end of period at Jul. 31, 2016 | $ (5,134) | $ 2 | $ 9 | $ 2,499 | $ (4,929) | $ (2,512) | $ (206) | $ 3 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jul. 31, 2016 | |
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 2016 and 2015 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. 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, 2015 , 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 Motor Company ("Ford"). As a result, our Consolidated Balance Sheets include assets of $40 million and $50 million and liabilities of $12 million and $7 million as of July 31, 2016 and October 31, 2015 , respectively, including $3 million and $7 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 or nine months ended July 31, 2015. Our Financial Services segment consolidates several VIEs. As a result, our Consolidated Balance Sheets include secured assets of $1.0 billion and $1.1 billion as of July 31, 2016 and October 31, 2015 , respectively, and liabilities of $850 million and $844 million as of July 31, 2016 and October 31, 2015 , 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 $178 million and $235 million as of July 31, 2016 and October 31, 2015 , respectively, and corresponding liabilities of $118 million and $107 million , at the respective dates, 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) 2016 2015 Balance at beginning of period $ 994 $ 1,197 Costs accrued and revenues deferred (B) 141 208 Currency translation adjustment 2 (7 ) Adjustments to pre-existing warranties (A) 70 (38 ) Payments and revenues recognized (B) (339 ) (344 ) Balance at end of period 868 1,016 Less: Current portion 423 466 Noncurrent accrued product warranty and deferred warranty revenue $ 445 $ 550 _________________________ (A) Adjustments to pre-existing warranties reflect changes in our estimate of warranty costs for products sold in prior periods. Such adjustments typically occur when claims experience deviates from historic and expected trends. Our warranty liability is generally affected by component failure rates, repair costs, and the timing of failures. Future events and circumstances related to these factors could materially change our estimates and require adjustments to our liability. In addition, new product launches require a greater use of judgment in developing estimates until historical experience becomes available. In the second quarter of 2016, we recorded a charge for adjustments to pre-existing warranties of $46 million or $0.56 per diluted share. The charge primarily relates to increases in both claim frequency and cost of repair across both the Medium Duty and Big Bore engine families. The charge increases the reserve for our standard warranty obligations as well as the loss positions related to our Big Bore extended service contracts. Adjustments to pre-existing warranties in the three 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 our Consolidated Statements of Operations. In the first quarter of 2015, we recorded a benefit for adjustments to pre-existing warranties of $57 million or $0.70 per diluted share. The impact of income taxes on the 2016 and 2015 adjustments are not material due to our deferred tax valuation allowances on our U.S. deferred tax assets. (B) During the third quarter of 2016, we determined that the amortization of loss reserves for Big Bore extended service contracts, which were included within Costs accrued and revenues deferred, should be applied to Payments and revenues recognized . As a result, for the nine months ended July 31, 2015, we have reclassified $31 million of amortization of loss reserves in order to conform to our current presentation. The reclassification did not impact our Consolidated Statements of Operations or our Consolidated Balance Sheets . Extended Warranty Programs The amount of deferred revenue related to extended warranty programs was $345 million and $401 million at July 31, 2016 and October 31, 2015 , respectively. Revenue recognized under our extended warranty programs was $37 million and $113 million , in the three and nine months ended July 31, 2016 , respectively, and $40 million and $115 million for the three and nine months ended July 31, 2015 , 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, used truck inventory valuations, asbestos and other product liability accruals, asset impairment charges, restructuring 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 our significant unionized workforce. As of July 31, 2016 , approximately 5,400 , or 82% , of our hourly workers and approximately 300 , or 6% , 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 political, regulatory and economic developments in the U.S. and certain foreign countries (primarily Canada, Mexico, and Brazil). Indefinite-Lived Intangible Assets 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, a 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 . In the third quarter of 2016, we recognized an additional impairment charge of $1 million related to this trademark. The non-cash impairment charges were included in Asset impairment charges in our Consolidated Statements of Operations. The Brazilian engine reporting unit is included in the Global Operations segment. Inventories Inventories are valued at the lower of cost or market. Our gross used truck inventory increased to approximately $430 million at July 31, 2016 from $390 million at October 31, 2015 , offset by reserves of $166 million and $110 million , respectively. During the nine months ended July 31, 2016 , additional reserves of $56 million were recorded primarily in Costs of products sold . In valuing our used truck inventory, we are required to make assumptions regarding the level of reserves required to value inventories at their net realizable value ("NRV"). Our judgments and estimates for used truck inventory are based on an analysis of current and forecasted sales prices, aging of and demand for used trucks, and the mix of sales through various market channels. The NRV is subject to change based on numerous conditions, including age, specifications, mileage, timing of sales, market mix and current and forecasted pricing. While calculations are made after taking these factors into account, significant management judgment regarding expectations for future events is involved. Future events that could significantly influence our judgment and related estimates include general economic conditions in markets where our products are sold, actions of our competitors, and the ability to sell used trucks in a timely manner. Recently Adopted Accounting Standards In the nine months ended July 31, 2016 , we have 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 Accounting Standards Update ("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. In August 2015, the FASB issued ASU No. 2015-14, which postponed the effective date of ASU No. 2014-09 to fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted on the original effective date for fiscal years beginning after December 15, 2016. Our effective date for this ASU is November 1, 2018. We are currently evaluating the method of adoption and the impact of this ASU on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases" (Topic 842). This ASU requires lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases of greater than twelve months. The accounting by lessors will remain largely unchanged. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. Our effective date for this ASU is November 1, 2019. Adoption will require a modified retrospective transition. We are currently evaluating the method of adoption and the impact of this ASU on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses” (Topic 326). The ASU sets forth an expected credit loss model which requires the measurement of expected credit losses for financial instruments based on historical experience, current conditions and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost, and certain off-balance sheet credit exposures. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. Our effective date is November 1, 2020. We are currently evaluating the method of adoption and the impact of this ASU on our consolidated financial statements. |
Restructuring and Impairments
Restructuring and Impairments | 9 Months Ended |
Jul. 31, 2016 | |
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, 2015 Additions Payments Adjustments Balance at July 31, 2016 Employee termination charges $ 62 $ 4 $ (58 ) $ 2 $ 10 Lease vacancy 5 — (4 ) — 1 Other 1 — — — 1 Restructuring liability $ 68 $ 4 $ (62 ) $ 2 $ 12 (in millions) Balance at 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 North American Manufacturing Restructuring Activities We continue to focus on our core Truck and Parts businesses and evaluate our portfolio of assets to validate their strategic and financial fit. This allows us to close or divest non-strategic businesses, and identify opportunities to restructure our business and rationalize our Manufacturing operations in an effort to optimize our cost structure. For those areas that fall outside our strategic businesses, we are evaluating alternatives which 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, we committed to close our Chatham, Ontario heavy truck plant, which had been idled since June 2009. At that time, we recognized curtailment and contractual termination charges related to postretirement plans. Based on a ruling regarding pension benefits received from the Financial Services Tribunal in Ontario, Canada, in the third quarter of 2014, we recognized additional charges of $14 million related to the 2011 closure of the Chatham, Ontario plant. We appealed this ruling, but it was upheld in a July 3, 2015 decision issued by the Divisional Court of Ontario. On July 23, 2015, we filed a notice of motion for leave to appeal to the Court of Appeal for Ontario, which was perfected on August 25, 2015 through an additional filing. On December 21, 2015, the Ontario Court of Appeal denied the motion for leave to appeal. On April 25, 2016, we filed a qualified partial wind-up report for approval by the Financial Services Commission of Ontario. Potential 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 governmental approval, employee negotiation, acceptance rates and the resolution of disputes related thereto. In addition, we are continuing to evaluate the impact of the ruling on prior plan administration practices, and, as a result, we have recognized $5 million of charges in the third quarter of 2016. We do not expect material future charges. Foundry Facilities In December 2014, we announced the closure of our Indianapolis, Indiana foundry facility; on June 30, 2015, we closed this facility; and on August 19, 2016, we sold this facility. 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 three and nine months ended July 31, 2015, respectively, for the acceleration of depreciation of certain assets related to foundry and engine facilities. These charges are reported within Costs of products sold in our 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, we initiated new cost-reduction actions, including a reduction-in-force in the U.S. and Brazil. As a result of these actions, we recognized restructuring charges of $13 million in personnel costs for employee termination and related benefits, which will primarily be paid throughout 2016. Asset Impairments The following table reconciles our Asset impairment charges in our Consolidated Statements of Operations: Three Months Ended July 31, Nine Months Ended July 31, (in millions) 2016 2015 2016 2015 Intangible asset impairment charge $ 1 $ 3 $ 1 $ 3 Other asset impairment charges related to continuing operations 11 4 16 12 Total asset impairment charges $ 12 $ 7 $ 17 $ 15 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, in the third quarters of 2016 and 2015, we determined that the trademark asset carrying value was impaired, resulting in charges of $1 million and $3 million , respectively. For more information, see Note 1, Summary of Significant Accounting Policies. In the nine months ended July 31, 2016 , we recorded $3 million of asset impairment charges in the Truck segment related to the sale of Pure Power Technologies, a components business focused on air and fuel systems, in February 2016. In the third quarters of 2016 and 2015, we concluded we had triggering events 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 charges of $11 million and $3 million , respectively. Additionally, in the first quarter of 2015, we concluded that we had a triggering event related to certain operating leases. As a result, the Truck segment recorded $7 million of asset impairment charges. All of these charges are recognized in Asset impairment charges in our Consolidated Statements of Operations. |
Finance Receivables
Finance Receivables | 9 Months Ended |
Jul. 31, 2016 | |
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 $2.1 billion and $2.5 billion as of July 31, 2016 and October 31, 2015 , respectively. Included in total assets of our Financial Services operations are finance receivables of $1.6 billion and $2.0 billion as of July 31, 2016 and October 31, 2015 , respectively. We have two portfolio segments of finance receivables that we distinguish based on the type of customer and nature of the 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 in our Consolidated Balance Sheets consist of the following: (in millions) July 31, 2016 October 31, 2015 Retail portfolio $ 406 $ 554 Wholesale portfolio 1,228 1,467 Total finance receivables 1,634 2,021 Less: Allowance for doubtful accounts 21 26 Total finance receivables, net 1,613 1,995 Less: Current portion, net (A) 1,410 1,779 Noncurrent portion, net $ 203 $ 216 _________________________ (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 transfer wholesale notes, retail accounts receivable, retail notes, finance leases, and operating leases to special purpose entities ("SPEs"), which generally are only permitted to purchase these assets, issue asset-backed securities, and make payments on the securities issued. 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 rate changes on the securities using interest rate swaps or interest rate caps. There were no transfers of finance receivables that qualified for sale accounting treatment as of July 31, 2016 and October 31, 2015 , 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 $917 million and $1.0 billion as of July 31, 2016 and October 31, 2015 , respectively. Other finance receivables related to secured transactions that do not qualify for sale accounting treatment were $54 million and $96 million as of July 31, 2016 and October 31, 2015 , 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 in our Consolidated Statements of Operations : Three Months Ended July 31, Nine Months Ended July 31, (in millions) 2016 2015 2016 2015 Retail notes and finance leases revenue $ 9 $ 12 $ 28 $ 37 Wholesale notes interest 29 27 81 75 Operating lease revenue 17 16 49 46 Retail and wholesale accounts interest 5 8 19 25 Gross finance revenues 60 63 177 183 Less: Intercompany revenues (26 ) (26 ) (75 ) (75 ) Finance revenues $ 34 $ 37 $ 102 $ 108 |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 9 Months Ended |
Jul. 31, 2016 | |
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, 2016 Three Months Ended July 31, 2015 (in millions) Retail Wholesale Trade and Total Retail Wholesale Trade and Total Allowance for doubtful accounts, at beginning of period $ 21 $ 4 $ 26 $ 51 $ 25 $ 3 $ 30 $ 58 Provision for doubtful accounts, net of recoveries 2 (1 ) — 1 2 — — 2 Charge-off of accounts (3 ) — (1 ) (4 ) — — (1 ) (1 ) Other (A) (2 ) — 2 — (2 ) — (3 ) (5 ) Allowance for doubtful accounts, at end of period $ 18 $ 3 $ 27 $ 48 $ 25 $ 3 $ 26 $ 54 Nine Months Ended July 31, 2016 Nine Months Ended July 31, 2015 (in millions) Retail Wholesale Trade and Total Retail Wholesale Trade and Total Allowance for doubtful accounts, at beginning of period $ 22 $ 4 $ 22 $ 48 $ 24 $ 3 $ 38 $ 65 Provision for doubtful accounts, net of recoveries 5 (1 ) 4 8 7 — — 7 Charge-off of accounts (7 ) — (2 ) (9 ) (1 ) — (4 ) (5 ) Other (A) (2 ) — 3 1 (5 ) — (8 ) (13 ) Allowance for doubtful accounts, at end of period $ 18 $ 3 $ 27 $ 48 $ 25 $ 3 $ 26 $ 54 _________________________ (A) Amounts include impact from 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, 2016 October 31, 2015 (in millions) Retail Wholesale Total Retail Wholesale Total Impaired finance receivables with specific loss reserves $ 18 $ — $ 18 $ 21 $ — $ 21 Impaired finance receivables without specific loss reserves — — — — — — Specific loss reserves on impaired finance receivables 9 — 9 9 — 9 Finance receivables on non-accrual status 18 — 18 21 — 21 The average balances of the impaired finance receivables in the retail portfolio were $18 million and $21 million during the nine months ended July 31, 2016 and 2015 , respectively. We use the aging of our receivables as well as other inputs when assessing credit quality. The following table presents the aging analysis for finance receivables: July 31, 2016 October 31, 2015 (in millions) Retail Wholesale Total Retail Wholesale Total Current, and up to 30 days past due $ 356 $ 1,226 $ 1,582 $ 486 $ 1,461 $ 1,947 30-90 days past due 34 1 35 48 4 52 Over 90 days past due 16 1 17 20 2 22 Total finance receivables $ 406 $ 1,228 $ 1,634 $ 554 $ 1,467 $ 2,021 |
Inventories
Inventories | 9 Months Ended |
Jul. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The following table presents the components of Inventories in our Consolidated Balance Sheets : (in millions) July 31, October 31, Finished products $ 809 $ 837 Work in process 31 34 Raw materials 244 264 Total inventories, net $ 1,084 $ 1,135 |
Debt
Debt | 9 Months Ended |
Jul. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following tables present the components of Notes payable and current maturities of long-term debt and Long-term debt in our Consolidated Balance Sheets : (in millions) July 31, 2016 October 31, 2015 Manufacturing operations Senior Secured Term Loan Credit Facility, as amended, due 2020, net of unamortized discount of $14 and $17, respectively $ 1,020 $ 1,023 8.25% Senior Notes, due 2022, net of unamortized discount of $16 and $18, respectively 1,184 1,182 4.50% Senior Subordinated Convertible Notes, due 2018, net of unamortized discount of $11 and $14, respectively 189 186 4.75% Senior Subordinated Convertible Notes, due 2019, net of unamortized discount of $26 and $32, respectively 385 379 Debt of majority-owned dealerships 13 28 Financing arrangements and capital lease obligations 44 49 Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040 225 225 Financed lease obligations 61 111 Other 10 15 Total Manufacturing operations debt 3,131 3,198 Less: Current portion 67 103 Net long-term Manufacturing operations debt $ 3,064 $ 3,095 (in millions) July 31, 2016 October 31, 2015 Financial Services operations Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2021 $ 867 $ 870 Bank credit facilities, at fixed and variable rates, due dates from 2016 through 2021 874 1,063 Commercial paper, at variable rates, program matures in 2017 93 86 Borrowings secured by operating and finance leases, at various rates, due serially through 2021 100 81 Total Financial Services operations debt 1,934 2,100 Less: Current portion 1,322 1,007 Net long-term Financial Services operations debt $ 612 $ 1,093 Financial Services Operations Asset-backed Debt In April 2016, Truck Retail Accounts Corporation ("TRAC"), one of our consolidated SPEs, renewed its $100 million revolving facility for one year, to April 2017. Borrowings under this facility are secured by eligible retail accounts receivable. In February 2016, the maximum capacity of NFC’s wholesale variable funding notes ("VFN") facility was increased from $375 million to $500 million . The VFN facility is secured by assets of the wholesale note owner trust. In May 2016, the maturity date of the VFN facility was extended from October 2016 to May 2017. Bank Credit Facilities In May 2016, NFC amended and extended its 2011 bank credit facility which was originally due in December 2016. The 2016 amendment extends the maturity date to June 2018 and initially reduced the revolving portion of the facility from $500 million to $400 million . The revolving portion will be further reduced to $275 million effective in December 2016. The borrowings on the revolving portion of the facility totaled $300 million as of July 31, 2016. The amendment also provides for a reduction in the term loan facility to $82 million , effective in December 2016, at which time the quarterly principal payments are reduced from $9 million to $2 million . The balance of the term loan facility was $221 million as of July 31, 2016. The amendment allows NFC to increase revolving or term loan commitments, subject to obtaining commitments from existing or new lenders to provide additional or increased revolving commitments and/or additional term loans, to permit a maximum total facility size of $700 million after giving effect to any such increase and without taking into account the non-extended loans and commitments. In the three and nine months ended July 31, 2016 , NFC paid $50 million and $80 million , respectively, in cash dividends to Navistar, Inc. Dividends are subject to the restricted payment covenants set forth in the NFC bank credit facility. |
Postretirement Benefits
Postretirement Benefits | 9 Months Ended |
Jul. 31, 2016 | |
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, 2016 , we contributed $20 million and $60 million , respectively, and for the three and nine months ended July 31, 2015 , we contributed $11 million and $73 million , respectively, to our pension plans to meet regulatory funding requirements. We expect to contribute approximately $40 million to our pension plans during the remainder of 2016 . 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 our then applicable retiree health care and life insurance benefits. Contributions for the three and nine months ended July 31, 2016 and 2015 , as well as anticipated contributions for the remainder of 2016 , are not material. Components of Net Periodic Benefit Expense Net periodic benefit 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) 2016 2015 2016 2015 2016 2015 2016 2015 Service cost for benefits earned during the period $ 2 $ 3 $ 1 $ 2 $ 7 $ 9 $ 4 $ 5 Interest on obligation 29 35 14 17 88 106 44 53 Amortization of cumulative loss 26 25 8 10 78 74 24 29 Amortization of prior service benefit — — — (1 ) — — (1 ) (3 ) Contractual termination benefits 1 — 4 — 3 (1 ) 4 (1 ) Premiums on pension insurance 4 3 — — 12 8 — — Expected return on assets (41 ) (48 ) (6 ) (7 ) (125 ) (145 ) (19 ) (22 ) Net periodic benefit expense $ 21 $ 18 $ 21 $ 21 $ 63 $ 51 $ 56 $ 61 In 2016, we changed the approach utilized to estimate the service cost and interest cost components of net periodic benefit cost for our major defined benefit postretirement plans. Historically, we estimated the service cost and interest cost components using a single weighted average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. In 2016, we began using a spot rate approach for the estimation of service and interest cost for our major plans by applying specific spot rates along the yield curve to the relevant projected cash flows, to provide a better estimate of service and interest costs. Interest on the obligation as reported above is $9 million and $4 million lower in the three months ended July 31, 2016 for pension and for health and life insurance, respectively, and $27 million and $12 million lower in the nine months ended July 31, 2016 for pension and for health and life insurance, respectively, as a result of using the spot rate approach compared to the historical approach. 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. We deposit 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 $22 million in the three and nine months ended July 31, 2016 , respectively, and $7 million and $24 million in the three and nine months ended July 31, 2015 , 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 our consolidated financial statements. Our 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 on pending arbitration regarding the Supplemental Benefit Trust Profit Sharing Plan, see Note 11, Commitments and Contingencies . |
Income Taxes
Income Taxes | 9 Months Ended |
Jul. 31, 2016 | |
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 the item 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. In the first quarter of 2016, we reviewed the impact of recently enacted U.S. tax legislation, the most significant of which is the Protecting Americans from Tax Hikes Act of 2015 ("PATH Act of 2015"), which extended the rules allowing us to forego bonus depreciation in exchange for refunds of previously paid Alternative Minimum Tax ("AMT"). This change resulted in the likely realization of our deferred AMT credits, on a more likely than not basis, which supports the release of the associated valuation allowance. In addition, the PATH Act of 2015 extended the "look-through rule," under subpart F of the U.S. Internal Revenue Code, which had expired for us on September 30, 2015. The "look-through rule" had provided an exception to the U.S. taxation of certain income generated by foreign subsidiaries. The rule was extended in December 2015 with retroactive effect to the beginning of our 2016 fiscal year, and the rule will remain in place through our 2020 fiscal year. This rule extension allowed us to reverse recently recognized deferred tax liabilities associated with earnings in foreign jurisdictions. However, since the reversal of this deferred tax liability also had an associated and completely offsetting valuation allowance effect, there was no impact to total deferred taxes due to this change. Also in the first quarter of 2016, we elected to early adopt the provisions of ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.” This ASU requires the offset of all deferred tax assets and liabilities, including valuation allowances, for each tax-paying jurisdiction within each tax-paying component. The net deferred tax must be presented as a single noncurrent amount for each jurisdiction. In accordance with the adoption provisions of ASU 2015-17, we have chosen to apply this change prospectively, and as a result, prior year amounts are maintained as originally filed. 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. As mentioned above, we have concluded that the valuation allowance on our U.S. deferred AMT credits is no longer necessary due to the enactment of the PATH Act of 2015. This partial valuation allowance release resulted in an income tax benefit of $13 million which was recorded in the first quarter of 2016. We continue to maintain a valuation allowance on our remaining 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, 2016 that it is more likely than not that they will be realized, 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, 2016 , the amount of liability for uncertain tax positions was $42 million . The liability at July 31, 2016 has a recorded offsetting tax benefit associated with various issues that total $12 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, 2016 , total interest and penalties related to our uncertain tax positions resulted in an income tax expense of less than $1 million for both periods. 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, 2016 | |
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, 2016 October 31, 2015 (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Marketable securities: U.S. Treasury bills $ 49 $ — $ — $ 49 $ 53 $ — $ — $ 53 Other 91 — — 91 106 — — 106 Derivative financial instruments: Commodity forward contracts (A) — 5 — 5 — — — — Foreign currency contracts (A) — — — — — 1 — 1 Total assets $ 140 $ 5 $ — $ 145 $ 159 $ 1 $ — $ 160 Liabilities Derivative financial instruments: Commodity forward contracts (B) $ — $ 1 $ — $ 1 $ — $ 2 $ — $ 2 Foreign currency contracts (B) — 1 — 1 — 2 — 2 Guarantees — — 23 23 — — 10 10 Total liabilities $ — $ 2 $ 23 $ 25 $ — $ 4 $ 10 $ 14 _________________________ (A) The asset value of commodity forward contracts and foreign currency contracts is included in Other current assets as of July 31, 2016 and October 31, 2015 in the accompanying Consolidated Balance Sheets . (B) The liability value of commodity forward contracts and foreign currency contracts is included in Other current liabilities as of July 31, 2016 and October 31, 2015 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, Nine Months Ended July 31, (in millions) 2016 2015 2016 2015 Guarantees, at beginning of period $ (19 ) $ (7 ) $ (10 ) $ (8 ) Transfers out of Level 3 — — — — Issuances (5 ) (4 ) (16 ) (4 ) Settlements 1 1 3 2 Guarantees, at end of period $ (23 ) $ (10 ) $ (23 ) $ (10 ) Change in unrealized gains on assets (liabilities) still held $ — $ — $ — $ — The following table presents the financial instruments measured at fair value on a nonrecurring basis: (in millions) July 31, 2016 October 31, 2015 Level 2 financial instruments Carrying value of impaired finance receivables (A) $ 18 $ 21 Specific loss reserve (9 ) (9 ) Fair value $ 9 $ 12 _________________________ (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 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. 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, 2016 Estimated Fair Value Carrying Value (in millions) Level 1 Level 2 Level 3 Total Assets Retail notes $ — $ — $ 144 $ 144 $ 136 Notes receivable — — 1 1 1 Liabilities Debt: Manufacturing operations Senior Secured Term Loan Credit Facility, as Amended, due 2020 — — 973 973 1,020 8.25% Senior Notes, due 2022 893 — — 893 1,184 4.50% Senior Subordinated Convertible Notes, due 2018 (A) — — 137 137 189 4.75% Senior Subordinated Convertible Notes, due 2019 (A) — — 258 258 385 Debt of majority-owned dealerships — — 15 15 13 Financing arrangements — — 15 15 38 Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040 — 227 — 227 225 Financed lease obligations — — 61 61 61 Other — — 10 10 10 Financial Services operations Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2021 — — 863 863 867 Bank credit facilities, at fixed and variable rates, due dates from 2016 through 2021 — — 860 860 874 Commercial paper, at variable rates, program matures in 2017 93 — — 93 93 Borrowings secured by operating and finance leases, at various rates, due serially through 2021 — — 100 100 100 As of October 31, 2015 Estimated Fair Value Carrying Value (in millions) Level 1 Level 2 Level 3 Total Assets Retail notes $ — $ — $ 170 $ 170 $ 166 Notes receivable — — 3 3 3 Liabilities Debt: Manufacturing operations Senior Secured Term Loan Credit Facility, as Amended, due 2020 — — 1,014 1,014 1,023 8.25% Senior Notes, due 2022 998 — — 998 1,182 4.50% Senior Subordinated Convertible Notes, due 2018 (A) — — 148 148 186 4.75% Senior Subordinated Convertible Notes, due 2019 (A) — — 289 289 379 Debt of majority-owned dealerships — — 28 28 28 Financing arrangements — — 17 17 43 Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040 — 233 — 233 225 Financed lease obligations — — 111 111 111 Other — — 17 17 15 Financial Services operations Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2018 — — 865 865 870 Bank credit facilities, at fixed and variable rates, due dates from 2016 through 2020 — — 1,048 1,048 1,063 Commercial paper, at variable rates, program matures in 2017 86 — — 86 86 Borrowings secured by operating and finance leases, at various rates, due serially through 2020 — — 80 80 81 _________________________ (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, 2016 | |
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, 2016 and 2015 . None of our derivatives qualified for hedge accounting treatment during the three and nine months ended July 31, 2016 and 2015 . The majority of our derivative contracts are transacted under International Swaps and Derivatives Association 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. Collateral is generally not required to be provided by our counter-parties for derivative contracts. However, certain of our derivative contracts contain provisions that require us to provide collateral if certain loss thresholds are exceeded. Collateral of $1 million was provided as of both July 31, 2016 and October 31, 2015 . 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, 2016 and October 31, 2015 , our exposure to the credit risk of others was $5 million and $1 million , respectively. The following table presents the location and amount of (income) loss recognized in our Consolidated Statements of Operations related to derivatives: Three Months Ended July 31, Nine Months Ended July 31, (in millions) Location in Consolidated Statements of Operations 2016 2015 2016 2015 Interest rate caps Interest expense $ — $ 1 $ — $ 1 Cross currency swaps Other income, net (1 ) (1 ) (1 ) 2 Foreign currency contracts Other income, net (4 ) (6 ) — (5 ) Commodity forward contracts Costs of products sold — (1 ) (2 ) 4 Total (income) loss $ (5 ) $ (7 ) $ (3 ) $ 2 Foreign Currency Contracts During 2016 and 2015 , 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, 2016 and October 31, 2015 : (in millions) Currency Notional Amount Maturity As of July 31, 2016 Forward exchange contract EUR € 12 July 2016 - October 2016 (A) Forward exchange contract CAD C$ 30 July 2016 - September 2016 (B) Forward exchange contract MXN ₱ 759 July 2016 - August 2016 (C) As of October 31, 2015 Forward exchange contract EUR € 30 November 2015 - October 2016 (D) Forward exchange contract CAD C$ 25 November 2015 Forward exchange contract MXN ₱ 1,270 November 2015 _________________________ (A) Forward exchange contracts of €2 million matured in July 2016 but settled in August 2016, €3 million matured in August 2016, €4 million mature in September 2016, and €3 million mature in October 2016. (B) Forward exchange contracts of C$15 million matured in July 2016 but settled in August 2016, C$10 million matured in August 2016, and C$5 million mature in September 2016. (C) Forward exchange contracts of ₱380 million matured in July 2016 but settled in August 2016 and ₱379 million matured in August 2016. (D) Forward exchange contracts of €2 million settled in November 2015, €3 million matured in November 2015, €3 million matured in December 2015, €4 million matured in January 2016, and €2 million mature each month from February 2016 through October 2016. Commodity Forward Contracts During 2016 and 2015 , 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, 2016 , we had outstanding diesel fuel contracts with aggregate notional values of $11 million and outstanding steel contracts with aggregate notional values of $13 million . The commodity forward contracts have various maturity dates through March 31, 2017 . As of October 31, 2015 , we had outstanding diesel fuel contracts with aggregate notional values of $24 million and outstanding steel contracts with aggregate notional values of $6 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 both July 31, 2016 and October 31, 2015 , there were no outstanding cross currency swaps. 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 our Mexican bank credit facilities. As of July 31, 2016 and October 31, 2015 , the notional amount of our outstanding interest rate caps at our Mexican financial services operation was $128 million and $108 million , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jul. 31, 2016 | |
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 with GE Capital which contains automatic extensions and is subject to early termination provisions (the "Navistar Capital Operating Agreement"). Effective December 1, 2015, GE Capital assigned the Navistar Capital Operating Agreement to BMO Financial Group and its wholly-owned subsidiary BMO Harris Bank N.A. (together “BMO”) as part of General Electric’s sale of its GE Transportation Finance business. Under the terms of the Navistar Capital Operating Agreement, GE Capital was, and now BMO is, our third-party preferred source of retail customer financing for equipment offered by us and our dealers in the U.S. We refer to this alliance as "Navistar Capital." The Navistar Capital Operating Agreement contains a loss sharing arrangement for certain credit losses. Under the loss sharing arrangement, as amended, we generally reimburse our financing partner for credit losses in excess of the first 10% of the financed value of a contract; for certain leases we reimburse our financing partner for credit losses up to a maximum of the first 9.5% of the financed value of those lease contracts. Our exposure to loss is mitigated because contracts under the Navistar Capital Operating Agreement are secured by the financed equipment. There were $1.4 billion of outstanding loan principal and operating lease payments receivable at both July 31, 2016 and October 31, 2015 , financed through the Navistar Capital Operating Agreement and subject to the loss sharing arrangements in the U.S. The related financed values of these outstanding contracts were $2.4 billion and $2.3 billion at July 31, 2016 and October 31, 2015 , respectively. Generally, we do not carry the contracts under the Navistar Capital Operating Agreement on our Consolidated Balance Sheets . However, for certain Navistar Capital financed contracts which we have accounted for as borrowings, we have recognized equipment leased to others of $57 million and $102 million and financed lease obligations of $61 million and $110 million , in our Consolidated Balance Sheets as of July 31, 2016 and October 31, 2015 , respectively. 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. 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 Condensed 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, 2016 , the amount of stand-by letters of credit and surety bonds was $97 million . In addition, as of July 31, 2016 , we have entered into various purchase commitments of $16 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 $20 million for these and other environmental matters, which are included within Other current liabilities and Other noncurrent liabilities , as of July 31, 2016 . The majority of these accrued liabilities are expected to be paid subsequent to 2017 . 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 6 th Circuit Court of Appeals remanded the case to the Court with instructions 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. In November 2015, the Company and the Committee selected an arbitrator and the discovery process has commenced. On August 1, 2016, the parties submitted briefs on issues related to the scope of the arbitration. In addition, various local bargaining units of the United Automobile, Aerospace and Agricultural Implement Workers of America ("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 approximately less than US $1 million at July 31, 2016 ), 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 (the "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 sought certain groundwater investigations and other technical relief and proposed sanctions in the amount of R $3 million (the equivalent of approximately US $1 million at July 31, 2016 ). In November 2014, IIAA extended a settlement offer. The parties remained in discussions and IIAA’s settlement offer was never accepted, rejected or countered by the District Attorney. On August 31, 2016, the District Attorney filed civil actions against IIAA and other companies seeking soil and groundwater investigation and remediation, together with monetary payment in an unspecified amount. IIAA has not yet been served with the action. MaxxForce Engine EGR Warranty Litigation On June 24, 2014, N&C Transportation Ltd. filed a putative class action lawsuit against NIC, Navistar, Inc., Navistar Canada Inc., and Harbour International Trucks (collectively, "Navistar") 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 Canada (together with the N&C Action, the "Canadian Actions"). From June 13-17, 2016, the court conducted a certification hearing in the N&C Action. There are no court dates scheduled in any of the other Canadian Actions at this time. 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, seventeen additional 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 Middle District of Pennsylvania, the Southern District of Texas, the Western District of Kentucky, the District of Minnesota, the District of Alabama, and the District of New Jersey (together with the Par 4 Action, the "U.S. Actions"). Some of the U.S. Actions name both NIC and Navistar, Inc. The U.S. Actions allege matters substantially similar to the Canadian Actions. More specifically, the Canadian Actions and the U.S. Actions (collectively, the "EGR Class Actions") seek to certify a class 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 the Company and Navistar, Inc. failed to disclose and correct the alleged defect. The EGR Class Actions assert claims based on theories 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 then-pending U.S. Actions, 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 to consolidate the U.S. Actions and certain other non-class action lawsuits was granted. The MDL Panel issued an order consolidating all of the U.S. Actions that were pending on the date of Navistar’s motion before Judge Gottschall in the United States District Court for the Northern District of Illinois (the "MDL Action"). The MDL Panel also consolidated into the MDL Action certain non-class action MaxxForce Advanced EGR engine lawsuits pending in the various federal district courts, with the exception of one matter. For putative class action lawsuits filed subsequent to Navistar’s original motion, we continue to request that the MDL Panel similarly transfer and consolidate these U.S. Actions. At the request of the various law firms representing the plaintiffs in the MDL Action, on March 5, 2015, Judge Gottschall entered an order in the MDL Action 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 parties to the MDL Action exchanged initial disclosures on May 29, 2015. The Company answered the Consolidated Complaint on July 13, 2015. On May 27, 2016, Judge Gottschall entered a Case Management Order setting a July 13, 2017, date for plaintiffs’ class certification motion. The next status conference with the Court is set for October 28, 2016. 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 United States Environmental Protection Agency (the "EPA") pertaining to certain heavy-duty diesel engines which, according to the EPA, were not completely assembled by Navistar, Inc. until calendar year 2010 and, therefore, were not covered by Navistar, Inc.'s model year 2009 certificates of conformity. The NOV concluded that Navistar, Inc.'s introduction into commerce of each of these engines violated the Federal Clean Air Act. On July 14, 2015, the Department of Justice ("DOJ"), on behalf of the EPA, filed a lawsuit against NIC and Navistar, Inc. in the U.S. District Court for the Northern District of Illinois. Similar to the NOV, the lawsuit alleges that NIC and Navistar, Inc. introduced into commerce approximately 7,749 heavy-duty diesel engines that were not covered by model year 2009 certificates of conformity because those engines were not completely assembled until calendar year 2010, 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. On September 14, 2015, NIC and Navistar, Inc. each filed an Answer and Affirmative Defenses to the Amended Complaint. We dispute the allegations in the lawsuit. Discovery in the matter will proceed in two phases. Fact discovery for the liability phase commenced on December 9, 2015. Pursuant to a Case Management Order entered on August 1, 2016, fact discovery is currently scheduled to be completed on February 9, 2017, followed by expert discovery, and the deadline for dispositive motions is July 20, 2017. After completion of the first phase, the Court will, if necessary, set further dates for a remedy phase. On May 13, 2016, the DOJ filed a motion for summary judgment on liability. On June 30, 2016, NIC and Navistar, Inc. opposed EPA's motion for summary judgment, and NIC cross-moved for summary judgment against EPA. The court set a ruling date of November 17, 2016 on both the DOJ’s motion and NIC's cross-motion for summary judgment. 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. 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 U.S. Securities Exchange Commission (“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 10b-5 Cases before one judge sitting in the U.S. District Court for the Northern District of Illinois 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. On December 17, 2013, defendants filed a motion to dismiss the Consolidated Amended Complaint. On July 22, 2014, the Court granted the defendants' Motion 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 by August 22, 2014. On August 22, 2014, the plaintiff filed a Second Amended Complaint, which narrowed the claims in two ways. First, the plaintiff abandoned its claims against the majority of the defendants. The Second Amended Complaint brought claims against only Navistar, Dan Ustian, Andrew J. Cederoth, Jack Allen, and Eric Tech. The plaintiff also shortened the putative class period. In the prior complaint, the class period began on June 9, 2009. In the Second Amended Complaint, it begins on March 10, 2010. Defendants filed their Motion to Dismiss the Second Amended Complaint on September 23, 2014. 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 Second Amended Complaint. 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 plaintiff’s 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. At a December 1, 2015 status conference, the parties reported that a settlement in principle had been reached, subject to, among other things, final documentation, confirmatory discovery and Court approval, and the Court filed a minute entry reflecting such report. On May 25, 2016, the Court entered an order preliminarily approving the settlement, as well as the class notice to be sent in connection with the settlement. The Court scheduled the Final Approval Hearing for October 25, 2016. In March 2013, James Gould filed a derivative complaint in the U.S. District Court for the Northern District of Illinois 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 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 November 2015, the existing stay order in this derivative action was further extended through March 22, 2016. The court has further extended the stay several times. The current stay order extends the stay through October 27, 2016. In August 2013, Abbie Griffin filed a derivative complaint in the State of Delaware Court of Chancery, 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, 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 the 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 August 2015, the court further extended the stay of this derivative action through December 3, 2015. The court has further extended the stay several times. The current stay order extends the stay through September 10, 2016. 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 (approximately US $20 million as of July 31, 2016 ), including penalties and interest, from a group of affiliated 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 (approximately US $40 million as of July 31, 2016 ) 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 filed its rebuttal and answer to Navitrucks’ counterclaims on October 22, 2015. On December 7, 2015, Navitrucks filed its rebuttal to IIAA’s answer to counterclaims. On June 13-15, 2016, the arbitral tribunal held hearings on the parties presenting witnesses and evidence. On July 18, 2016, IIAA and Navitrucks presented additional documents and information related to such hearings. As of July 31, 2016 , the approximate amount of the IIAA claim against Navitrucks is R $130 million (approximately US $40 million as of July 31, 2016 ), of which Navitrucks has acknowledged that IIAA is entitled to a credit in the approximate amount of R $73 million (approximately US $23 million as of July 31, 2016 ), and the approximate amount of the Navitrucks claim against IIAA is R$139 million (approximately US $43 million as of July 31, 2016 ). 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 two truck fleet owners in Brazil have separate adversarial proceedings pending 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. IC Bus Civil RICO Litigation On June 1, 2016, plaintiffs Polar Express School Bus and Lakeview Bus Lines filed a lawsuit against NIC, Navistar, Inc., and IC Bus, LLC in the U.S. District Court for the Northern District of Illinois. The lawsuit alleges that the 40 IC brand buses owned or operated by plaintiffs contain defective ABS braking systems and also engines with defective emissions control systems. Plaintiffs claim that NIC, its subsidiaries, and their authorized dealers deliberately concealed the alleged defects, and the lawsuit seeks to plead causes of action under the Racketeer Influenced and Corrupt Organizations Act (RICO) and common law fraud. Plaintiffs seek compensatory damages in the amount of $6.7 million , treble damages, punitive damages in the amount of $50 million , and attorneys’ fees and costs. We dispute the allegations in the lawsuit and filed a motion to dismiss this lawsuit in its entirety on August 2, 2016. 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. Other U.S. Securities and Exchange Administrative Order 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 Navista |
Segment Reporting
Segment Reporting | 9 Months Ended |
Jul. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting 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, and produces engines under our proprietary brand name and parts required to support the military truck lines. This segment sells its products in the U.S., Canada, and Mexico markets, as well as through 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, proprietary 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 NIC, excluding income tax expense. Selected financial information from our Consolidated Statements of Operations and our Consolidated Balance Sheets is as follows: (in millions) Truck Parts Global Operations Financial (A) Corporate Total Three Months Ended July 31, 2016 External sales and revenues, net $ 1,386 $ 589 $ 73 $ 34 $ 4 $ 2,086 Intersegment sales and revenues 9 8 12 26 (55 ) — Total sales and revenues, net $ 1,395 $ 597 $ 85 $ 60 $ (51 ) $ 2,086 Income (loss) from continuing operations attributable to NIC, net of tax $ (54 ) $ 152 $ (5 ) $ 26 $ (153 ) $ (34 ) Income tax expense — — — — (14 ) (14 ) Segment profit (loss) $ (54 ) $ 152 $ (5 ) $ 26 $ (139 ) $ (20 ) Depreciation and amortization $ 29 $ 3 $ 4 $ 13 $ 4 $ 53 Interest expense — — — 21 63 84 Equity in income of non-consolidated affiliates 1 1 — — — 2 Capital expenditures (B) 26 — — 1 3 30 (in millions) Truck Parts Global Operations Financial (A) Corporate 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 (A) Corporate Total Nine Months Ended July 31, 2016 External sales and revenues, net $ 3,926 $ 1,791 $ 221 $ 102 $ 8 $ 6,048 Intersegment sales and revenues 81 23 33 75 (212 ) — Total sales and revenues, net $ 4,007 $ 1,814 $ 254 $ 177 $ (204 ) $ 6,048 Income (loss) from continuing operations attributable to NIC, net of tax $ (128 ) $ 478 $ (19 ) $ 77 $ (471 ) $ (63 ) Income tax expense — — — — (25 ) (25 ) Segment profit (loss) $ (128 ) $ 478 $ (19 ) $ 77 $ (446 ) $ (38 ) Depreciation and amortization $ 92 $ 10 $ 13 $ 37 $ 12 $ 164 Interest expense — — — 59 187 246 Equity in income (loss) of non-consolidated affiliates 3 3 (3 ) — — 3 Capital expenditures (B) 70 2 2 1 8 83 (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 Corporate and Eliminations Total Segment assets, as of: July 31, 2016 $ 1,644 $ 608 $ 379 $ 2,132 $ 956 $ 5,719 October 31, 2015 1,876 641 409 2,455 1,311 6,692 _________________________ (A) Total sales and revenues in the Financial Services segment include interest revenues of $43 million and $127 million for the three and nine months ended July 31, 2016 , respectively, and $46 million and $135 million for the three and nine months ended July 31, 2015 , respectively. (B) Exclusive of purchases of equipment leased to others. |
Stockholders' Deficit
Stockholders' Deficit | 9 Months Ended |
Jul. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Deficit | 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, 2016 $ 1 $ (270 ) $ (2,267 ) $ (2,536 ) Other comprehensive loss before reclassifications — (10 ) — (10 ) Amounts reclassified out of accumulated other comprehensive loss — — 34 34 Net current-period other comprehensive income (loss) — (10 ) 34 24 Balance as of July 31, 2016 $ 1 $ (280 ) $ (2,233 ) $ (2,512 ) (in millions) Unrealized Gain on Marketable Securities Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of October 31, 2015 $ 1 $ (287 ) $ (2,315 ) $ (2,601 ) Other comprehensive income (loss) before reclassifications — 7 (18 ) (11 ) Amounts reclassified out of accumulated other comprehensive loss — — 100 100 Net current-period other comprehensive income — 7 82 89 Balance as of July 31, 2016 $ 1 $ (280 ) $ (2,233 ) $ (2,512 ) (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 ) The following table displays the amounts reclassified from Accumulated other comprehensive loss and the affected line item in the Consolidated Statements of Operations: Three Months Ended July 31, Nine Months Ended July 31, Location in Consolidated 2016 2015 2016 2015 Defined benefit plans Amortization of prior service benefit Selling, general and administrative expenses $ — $ (1 ) $ (1 ) $ (3 ) Amortization of actuarial loss Selling, general and administrative expenses 34 34 101 102 Total before tax 34 33 100 99 Income tax expense — — — (1 ) Total reclassifications for the period, net of tax $ 34 $ 33 $ 100 $ 98 |
Earnings (Loss) Per Share Attri
Earnings (Loss) Per Share Attributable to Navistar International Corporation | 9 Months Ended |
Jul. 31, 2016 | |
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 earnings (loss) per share for continuing operations, discontinued operations, and net loss, all attributable to NIC in our Consolidated Statements of Operations : Three Months Ended July 31, Nine Months Ended July 31, (in millions, except per share data) 2016 2015 2016 2015 Numerator: Amounts attributable to Navistar International Corporation common stockholders: Loss from continuing operations, net of tax $ (34 ) $ (30 ) $ (63 ) $ (136 ) Income from discontinued operations, net of tax — 2 — 2 Net loss $ (34 ) $ (28 ) $ (63 ) $ (134 ) Denominator: Weighted average shares outstanding: Basic 81.7 81.6 81.7 81.5 Effect of dilutive securities — — — — Diluted 81.7 81.6 81.7 81.5 Earnings (loss) per share attributable to Navistar International Corporation: Basic: Continuing operations $ (0.42 ) $ (0.37 ) $ (0.77 ) $ (1.67 ) Discontinued operations — 0.03 — 0.03 Net loss $ (0.42 ) $ (0.34 ) $ (0.77 ) $ (1.64 ) Diluted: Continuing operations $ (0.42 ) $ (0.37 ) $ (0.77 ) $ (1.67 ) Discontinued operations — 0.03 — 0.03 Net loss $ (0.42 ) $ (0.34 ) $ (0.77 ) $ (1.64 ) The conversion rate on our 4.50% senior subordinated convertible notes due 2018 ("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 have an anti-dilutive effect when calculating diluted earnings per share when our average stock price is less than $58.40 . The conversion rate on our 4.75% senior subordinated convertible notes due April 2019 ("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 have an anti-dilutive effect 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, 2016 and 2015 , no dilutive securities were included in the computation of diluted earnings per share because they would have been anti-dilutive due to the net loss attributable to NIC. For the three and nine months ended July 31, 2016 , the aggregate shares not included were 15.2 million and 15.0 million , respectively. For 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, 2016 and 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. |
Condensed Consolidating Guarant
Condensed Consolidating Guarantor and Non-Guarantor Financial Information | 9 Months Ended |
Jul. 31, 2016 | |
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, 2016 and October 31, 2015 , and condensed consolidating statements of operations and comprehensive income (loss) for the three and nine months ended July 31, 2016 and 2015 , and condensed consolidating statements of cash flows for the nine months ended July 31, 2016 and 2015 . 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 2022, 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 indentures for each of the 8.25% Senior Notes, due 2022, 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, 2016 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Sales and revenues, net $ — $ 1,411 $ 1,432 $ (757 ) $ 2,086 Costs of products sold — 1,276 1,216 (735 ) 1,757 Restructuring charges — (1 ) 6 — 5 Asset impairment charges — — 12 — 12 All other operating expenses (income) 18 197 131 (18 ) 328 Total costs and expenses 18 1,472 1,365 (753 ) 2,102 Equity in income (loss) of affiliates (16 ) 63 1 (46 ) 2 Income (loss) before income taxes (34 ) 2 68 (50 ) (14 ) Income tax expense — (1 ) (13 ) — (14 ) Earnings (loss) from continuing operations (34 ) 1 55 (50 ) (28 ) Income (loss) from discontinued operations, net of tax — — — — — Net income (loss) (34 ) 1 55 (50 ) (28 ) Less: Net income attributable to non-controlling interests — — 6 — 6 Net income (loss) attributable to Navistar International Corporation $ (34 ) $ 1 $ 49 $ (50 ) $ (34 ) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended July 31, 2016 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net income (loss) $ (34 ) $ 1 $ 55 $ (50 ) $ (28 ) Other comprehensive income (loss): Foreign currency translation adjustment (10 ) — (10 ) 10 (10 ) Defined benefit plans (net of tax) 34 33 1 (34 ) 34 Total other comprehensive income (loss) 24 33 (9 ) (24 ) 24 Comprehensive income (loss) (10 ) 34 46 (74 ) (4 ) Less: Net income attributable to non-controlling interests — — 6 — 6 Total comprehensive income (loss) attributable to Navistar International Corporation $ (10 ) $ 34 $ 40 $ (74 ) $ (10 ) Condensed Consolidating Statement of Operations for the Nine Months Ended July 31, 2016 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Sales and revenues, net $ — $ 4,455 $ 4,055 $ (2,462 ) $ 6,048 Costs of products sold — 4,028 3,447 (2,407 ) 5,068 Restructuring charges — 3 8 — 11 Asset impairment charges — 2 15 — 17 All other operating expenses (income) 75 643 305 (54 ) 969 Total costs and expenses 75 4,676 3,775 (2,461 ) 6,065 Equity in income (loss) of affiliates 12 118 — (127 ) 3 Income (loss) before income taxes (63 ) (103 ) 280 (128 ) (14 ) Income tax benefit (expense) — 10 (35 ) — (25 ) Earnings (loss) from continuing operations (63 ) (93 ) 245 (128 ) (39 ) Income (loss) from discontinued operations, net of tax — — — — — Net income (loss) (63 ) (93 ) 245 (128 ) (39 ) Less: Net income attributable to non-controlling interests — — 24 — 24 Net income (loss) attributable to Navistar International Corporation $ (63 ) $ (93 ) $ 221 $ (128 ) $ (63 ) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Nine Months Ended July 31, 2016 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net income (loss) $ (63 ) $ (93 ) $ 245 $ (128 ) $ (39 ) Other comprehensive income (loss): Foreign currency translation adjustment 7 — 7 (7 ) 7 Defined benefit plans (net of tax) 82 96 (14 ) (82 ) 82 Total other comprehensive income (loss) 89 96 (7 ) (89 ) 89 Comprehensive income (loss) 26 3 238 (217 ) 50 Less: Net income attributable to non-controlling interests — — 24 — 24 Total comprehensive income (loss) attributable to Navistar International Corporation $ 26 $ 3 $ 214 $ (217 ) $ 26 Condensed Consolidating Balance Sheet as of July 31, 2016 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ 197 $ 85 $ 265 $ — $ 547 Marketable securities — — 140 — 140 Restricted cash 16 3 162 — 181 Finance and other receivables, net 3 87 1,949 (109 ) 1,930 Inventories — 756 341 (13 ) 1,084 Investments in non-consolidated affiliates (7,577 ) 6,278 56 1,303 60 Property and equipment, net — 682 581 (6 ) 1,257 Goodwill — — 38 — 38 Deferred taxes, net — 15 138 — 153 Other 28 124 178 (1 ) 329 Total assets $ (7,333 ) $ 8,030 $ 3,848 $ 1,174 $ 5,719 Liabilities and stockholders’ equity (deficit) Debt $ 1,983 $ 1,123 $ 1,961 $ (2 ) $ 5,065 Postretirement benefits liabilities — 2,797 201 — 2,998 Amounts due to (from) affiliates (7,986 ) 10,722 (2,905 ) 169 — Other liabilities 3,807 (119 ) (831 ) (67 ) 2,790 Total liabilities (2,196 ) 14,523 (1,574 ) 100 10,853 Stockholders’ equity attributable to non-controlling interest — — 3 — 3 Stockholders’ equity (deficit) attributable to Navistar International Corporation (5,137 ) (6,493 ) 5,419 1,074 (5,137 ) Total liabilities and stockholders’ equity (deficit) $ (7,333 ) $ 8,030 $ 3,848 $ 1,174 $ 5,719 Condensed Consolidating Statement of Cash Flows for the Nine Months Ended July 31, 2016 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net cash provided by (used in) operations $ (372 ) $ (225 ) $ 344 $ 239 $ (14 ) Cash flows from investing activities Net change in restricted cash and cash equivalents — 4 (68 ) — (64 ) Net sales (purchases) of marketable securities 113 — (94 ) — 19 Capital expenditures and purchase of equipment leased to others — (56 ) (121 ) — (177 ) Other investing activities — — 55 — 55 Net cash provided by (used in) investing activities 113 (52 ) (228 ) — (167 ) Cash flows from financing activities Net borrowings (repayments) of debt — 263 (151 ) (319 ) (207 ) Other financing activities — 18 (108 ) 80 (10 ) Net cash provided by (used in) financing activities — 281 (259 ) (239 ) (217 ) Effect of exchange rate changes on cash and cash equivalents — — 33 — 33 Increase (decrease) in cash and cash equivalents (259 ) 4 (110 ) — (365 ) Cash and cash equivalents at beginning of the period 456 81 375 — 912 Cash and cash equivalents at end of the period $ 197 $ 85 $ 265 $ — $ 547 Condensed Consolidating Statement of Operations for the Three Months Ended July 31, 2015 (in millions) NIC Navistar, Inc. Non-Guarantor Subsidiaries Eliminations and Other 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, Inc. Non-Guarantor Subsidiaries Eliminations and Other Consolidated Net income (loss) $ (28 ) $ (52 ) $ 124 $ (65 ) $ (21 ) Other comprehensive income (loss): Foreign currency translation adjustment (47 ) — (47 ) 47 (47 ) Defined benefit plans (net of tax) 33 8 25 (33 ) 33 Total other comprehensive income (loss) (14 ) 8 (22 ) 14 (14 ) Comprehensive income (loss) (42 ) (44 ) 102 (51 ) (35 ) Less: Net income attributable to non-controlling interests — — 7 — 7 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, Inc. Non-Guarantor Subsidiaries Eliminations and Other 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, Inc. Non-Guarantor Subsidiaries Eliminations and Other Consolidated Net income (loss) $ (134 ) $ (186 ) $ 298 $ (89 ) $ (111 ) Other comprehensive income (loss): Foreign currency translation adjustment (133 ) — (133 ) 133 (133 ) Defined benefit plans (net of tax) 98 70 28 (98 ) 98 Total other comprehensive income (loss) (35 ) 70 (105 ) 35 (35 ) Comprehensive income (loss) (169 ) (116 ) 193 (54 ) (146 ) Less: Net income attributable to non-controlling interests — — 23 — 23 Total comprehensive income (loss) attributable to Navistar International Corporation $ (169 ) $ (116 ) $ 170 $ (54 ) $ (169 ) Condensed Consolidating Balance Sheet as of October 31, 2015 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ 456 $ 81 $ 375 $ — $ 912 Marketable securities 112 — 47 — 159 Restricted cash 16 7 98 — 121 Finance and other receivables, net 1 99 2,440 (103 ) 2,437 Inventories — 809 342 (16 ) 1,135 Investments in non-consolidated affiliates (7,679 ) 6,204 64 1,477 66 Property and equipment, net — 737 616 (8 ) 1,345 Goodwill — — 38 — 38 Deferred taxes, net 7 20 137 — 164 Other 33 128 155 (1 ) 315 Total assets $ (7,054 ) $ 8,085 $ 4,312 $ 1,349 $ 6,692 Liabilities and stockholders’ equity (deficit) Debt $ 1,971 $ 1,180 $ 2,151 $ (4 ) $ 5,298 Postretirement benefits liabilities — 2,909 179 — 3,088 Amounts due to (from) affiliates (7,574 ) 10,280 (2,879 ) 173 — Other liabilities 3,716 207 (388 ) (69 ) 3,466 Total liabilities (1,887 ) 14,576 (937 ) 100 11,852 Stockholders’ equity attributable to non-controlling interest — — 7 — 7 Stockholders’ equity (deficit) attributable to Navistar International Corporation (5,167 ) (6,491 ) 5,242 1,249 (5,167 ) Total liabilities and stockholders’ equity (deficit) $ (7,054 ) $ 8,085 $ 4,312 $ 1,349 $ 6,692 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 investing 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) investing 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 |
Subsequent Event
Subsequent Event | 9 Months Ended |
Jul. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Events On September 5, 2016, NIC and Volkswagen Truck & Bus GmbH (“VW T&B”) entered into a Stock Purchase Agreement (the "Stock Purchase Agreement"), pursuant to which the Company will issue and VW T&B will purchase an estimated 19.9% stake ( 16.6% on a pro forma basis) in the Company (the “Share Issuance”), and a Stockholder Agreement ("Stockholder Agreement"), which governs the rights and obligations of the parties in connection with the share issuance. The Board of Directors of the Company has approved the share issuance for purposes of Section 203 of the Delaware General Corporation Law (“DGCL”) and the Company and VW T&B have entered into an agreement which permits VW T&B to acquire up to 20% of the Company without triggering the restrictions that would otherwise be imposed under Section 203 of the DGCL. VW T&B will also designate two people who are approved by the Company to be appointed to Navistar's Board of Directors. Subject to the terms and conditions set forth in the Stock Purchase Agreement, at the closing, the Company will issue to VW T&B 16.2 million shares of common stock of the Company for a purchase price of $15.76 per share and an aggregate purchase amount of $256 million . In addition to the agreements governing the Share Issuance, the Company’s operating subsidiary, Navistar, Inc. concurrently entered into a Framework Agreement Concerning Technology Licensing and Supply (the “License and Supply Framework Agreement”) and a Procurement JV Framework Agreement (the “Procurement JV Framework Agreement”) with VW T&B. Pursuant to the License and Supply Framework Agreement, the parties have agreed to use commercially reasonable efforts to enter into certain individual contracts in respect of the licensing and supply of certain engines and technologies, conduct feasibility studies in order to investigate the feasibility of sharing certain technologies and begin good faith discussions on possible collaboration with respect to certain powertrain combinations and other strategic initiatives. Under the Procurement JV Framework Agreement, the parties intend to form a sourcing joint venture entity to make recommendations for sourcing to the parties. Each party will make final sourcing decisions considering recommendations made by the Procurement JV. The closing of the Stock Purchase Agreement is subject to certain regulatory approvals, the finalization of the definitive agreements governing the procurement joint venture and the finalization of the first definitive contract under the License and Supply Framework Agreement, among other customary closing conditions. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jul. 31, 2016 | |
Accounting Policies [Abstract] | |
Standard Product Warranty, Policy [Policy Text Block] | Product Warranty Liability The following table presents accrued product warranty and deferred warranty revenue activity: Nine Months Ended July 31, (in millions) 2016 2015 Balance at beginning of period $ 994 $ 1,197 Costs accrued and revenues deferred (B) 141 208 Currency translation adjustment 2 (7 ) Adjustments to pre-existing warranties (A) 70 (38 ) Payments and revenues recognized (B) (339 ) (344 ) Balance at end of period 868 1,016 Less: Current portion 423 466 Noncurrent accrued product warranty and deferred warranty revenue $ 445 $ 550 _________________________ (A) Adjustments to pre-existing warranties reflect changes in our estimate of warranty costs for products sold in prior periods. Such adjustments typically occur when claims experience deviates from historic and expected trends. Our warranty liability is generally affected by component failure rates, repair costs, and the timing of failures. Future events and circumstances related to these factors could materially change our estimates and require adjustments to our liability. In addition, new product launches require a greater use of judgment in developing estimates until historical experience becomes available. In the second quarter of 2016, we recorded a charge for adjustments to pre-existing warranties of $46 million or $0.56 per diluted share. The charge primarily relates to increases in both claim frequency and cost of repair across both the Medium Duty and Big Bore engine families. The charge increases the reserve for our standard warranty obligations as well as the loss positions related to our Big Bore extended service contracts. Adjustments to pre-existing warranties in the three 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 our Consolidated Statements of Operations. In the first quarter of 2015, we recorded a benefit for adjustments to pre-existing warranties of $57 million or $0.70 per diluted share. The impact of income taxes on the 2016 and 2015 adjustments are not material due to our deferred tax valuation allowances on our U.S. deferred tax assets. (B) During the third quarter of 2016, we determined that the amortization of loss reserves for Big Bore extended service contracts, which were included within Costs accrued and revenues deferred, should be applied to Payments and revenues recognized . As a result, for the nine months ended July 31, 2015, we have reclassified $31 million of amortization of loss reserves in order to conform to our current presentation. The reclassification did not impact our Consolidated Statements of Operations or our Consolidated Balance Sheets . Extended Warranty Programs The amount of deferred revenue related to extended warranty programs was $345 million and $401 million at July 31, 2016 and October 31, 2015 , respectively. Revenue recognized under our extended warranty programs was $37 million and $113 million , in the three and nine months ended July 31, 2016 , respectively, and $40 million and $115 million for the three and nine months ended July 31, 2015 , respectively. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | ndefinite-Lived Intangible Assets 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, a 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 . In the third quarter of 2016, we recognized an additional impairment charge of $1 million related to this trademark. The non-cash impairment charges were included in Asset impairment charges in our Consolidated Statements of Operations. The Brazilian engine reporting unit is included in the Global Operations segment. |
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. 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, 2015 , 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 Motor Company ("Ford"). As a result, our Consolidated Balance Sheets include assets of $40 million and $50 million and liabilities of $12 million and $7 million as of July 31, 2016 and October 31, 2015 , respectively, including $3 million and $7 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 or nine months ended July 31, 2015. Our Financial Services segment consolidates several VIEs. As a result, our Consolidated Balance Sheets include secured assets of $1.0 billion and $1.1 billion as of July 31, 2016 and October 31, 2015 , respectively, and liabilities of $850 million and $844 million as of July 31, 2016 and October 31, 2015 , 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 $178 million and $235 million as of July 31, 2016 and October 31, 2015 , respectively, and corresponding liabilities of $118 million and $107 million , at the respective dates, 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) 2016 2015 Balance at beginning of period $ 994 $ 1,197 Costs accrued and revenues deferred (B) 141 208 Currency translation adjustment 2 (7 ) Adjustments to pre-existing warranties (A) 70 (38 ) Payments and revenues recognized (B) (339 ) (344 ) Balance at end of period 868 1,016 Less: Current portion 423 466 Noncurrent accrued product warranty and deferred warranty revenue $ 445 $ 550 _________________________ (A) Adjustments to pre-existing warranties reflect changes in our estimate of warranty costs for products sold in prior periods. Such adjustments typically occur when claims experience deviates from historic and expected trends. Our warranty liability is generally affected by component failure rates, repair costs, and the timing of failures. Future events and circumstances related to these factors could materially change our estimates and require adjustments to our liability. In addition, new product launches require a greater use of judgment in developing estimates until historical experience becomes available. In the second quarter of 2016, we recorded a charge for adjustments to pre-existing warranties of $46 million or $0.56 per diluted share. The charge primarily relates to increases in both claim frequency and cost of repair across both the Medium Duty and Big Bore engine families. The charge increases the reserve for our standard warranty obligations as well as the loss positions related to our Big Bore extended service contracts. Adjustments to pre-existing warranties in the three 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 our Consolidated Statements of Operations. In the first quarter of 2015, we recorded a benefit for adjustments to pre-existing warranties of $57 million or $0.70 per diluted share. The impact of income taxes on the 2016 and 2015 adjustments are not material due to our deferred tax valuation allowances on our U.S. deferred tax assets. (B) During the third quarter of 2016, we determined that the amortization of loss reserves for Big Bore extended service contracts, which were included within Costs accrued and revenues deferred, should be applied to Payments and revenues recognized . As a result, for the nine months ended July 31, 2015, we have reclassified $31 million of amortization of loss reserves in order to conform to our current presentation. The reclassification did not impact our Consolidated Statements of Operations or our Consolidated Balance Sheets . Extended Warranty Programs The amount of deferred revenue related to extended warranty programs was $345 million and $401 million at July 31, 2016 and October 31, 2015 , respectively. Revenue recognized under our extended warranty programs was $37 million and $113 million , in the three and nine months ended July 31, 2016 , respectively, and $40 million and $115 million for the three and nine months ended July 31, 2015 , 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, used truck inventory valuations, asbestos and other product liability accruals, asset impairment charges, restructuring 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 our significant unionized workforce. As of July 31, 2016 , approximately 5,400 , or 82% , of our hourly workers and approximately 300 , or 6% , 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 political, regulatory and economic developments in the U.S. and certain foreign countries (primarily Canada, Mexico, and Brazil). Indefinite-Lived Intangible Assets 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, a 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 . In the third quarter of 2016, we recognized an additional impairment charge of $1 million related to this trademark. The non-cash impairment charges were included in Asset impairment charges in our Consolidated Statements of Operations. The Brazilian engine reporting unit is included in the Global Operations segment. Inventories Inventories are valued at the lower of cost or market. Our gross used truck inventory increased to approximately $430 million at July 31, 2016 from $390 million at October 31, 2015 , offset by reserves of $166 million and $110 million , respectively. During the nine months ended July 31, 2016 , additional reserves of $56 million were recorded primarily in Costs of products sold . In valuing our used truck inventory, we are required to make assumptions regarding the level of reserves required to value inventories at their net realizable value ("NRV"). Our judgments and estimates for used truck inventory are based on an analysis of current and forecasted sales prices, aging of and demand for used trucks, and the mix of sales through various market channels. The NRV is subject to change based on numerous conditions, including age, specifications, mileage, timing of sales, market mix and current and forecasted pricing. While calculations are made after taking these factors into account, significant management judgment regarding expectations for future events is involved. Future events that could significantly influence our judgment and related estimates include general economic conditions in markets where our products are sold, actions of our competitors, and the ability to sell used trucks in a timely manner. Recently Adopted Accounting Standards In the nine months ended July 31, 2016 , we have not adopted any new accounting guidance that has had a material impact on our consolidated financial statements. |
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, used truck inventory valuations, asbestos and other product liability accruals, asset impairment charges, restructuring 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 our significant unionized workforce. As of July 31, 2016 , approximately 5,400 , or 82% , of our hourly workers and approximately 300 , or 6% , 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 political, regulatory and economic developments in the U.S. and certain foreign countries (primarily Canada, Mexico, and Brazil). |
Inventory, Policy [Policy Text Block] | Inventories Inventories are valued at the lower of cost or market. Our gross used truck inventory increased to approximately $430 million at July 31, 2016 from $390 million at October 31, 2015 , offset by reserves of $166 million and $110 million , respectively. During the nine months ended July 31, 2016 , additional reserves of $56 million were recorded primarily in Costs of products sold . In valuing our used truck inventory, we are required to make assumptions regarding the level of reserves required to value inventories at their net realizable value ("NRV"). Our judgments and estimates for used truck inventory are based on an analysis of current and forecasted sales prices, aging of and demand for used trucks, and the mix of sales through various market channels. The NRV is subject to change based on numerous conditions, including age, specifications, mileage, timing of sales, market mix and current and forecasted pricing. While calculations are made after taking these factors into account, significant management judgment regarding expectations for future events is involved. Future events that could significantly influence our judgment and related estimates include general economic conditions in markets where our products are sold, actions of our competitors, and the ability to sell used trucks in a timely manner. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards In the nine months ended July 31, 2016 , we have 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 Accounting Standards Update ("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. In August 2015, the FASB issued ASU No. 2015-14, which postponed the effective date of ASU No. 2014-09 to fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted on the original effective date for fiscal years beginning after December 15, 2016. Our effective date for this ASU is November 1, 2018. We are currently evaluating the method of adoption and the impact of this ASU on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases" (Topic 842). This ASU requires lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases of greater than twelve months. The accounting by lessors will remain largely unchanged. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. Our effective date for this ASU is November 1, 2019. Adoption will require a modified retrospective transition. We are currently evaluating the method of adoption and the impact of this ASU on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses” (Topic 326). The ASU sets forth an expected credit loss model which requires the measurement of expected credit losses for financial instruments based on historical experience, current conditions and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost, and certain off-balance sheet credit exposures. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. Our effective date is November 1, 2020. We are currently evaluating the method of adoption and the impact of this ASU on our consolidated financial statements. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Jul. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | Product Warranty Liability The following table presents accrued product warranty and deferred warranty revenue activity: Nine Months Ended July 31, (in millions) 2016 2015 Balance at beginning of period $ 994 $ 1,197 Costs accrued and revenues deferred (B) 141 208 Currency translation adjustment 2 (7 ) Adjustments to pre-existing warranties (A) 70 (38 ) Payments and revenues recognized (B) (339 ) (344 ) Balance at end of period 868 1,016 Less: Current portion 423 466 Noncurrent accrued product warranty and deferred warranty revenue $ 445 $ 550 _________________________ (A) Adjustments to pre-existing warranties reflect changes in our estimate of warranty costs for products sold in prior periods. Such adjustments typically occur when claims experience deviates from historic and expected trends. Our warranty liability is generally affected by component failure rates, repair costs, and the timing of failures. Future events and circumstances related to these factors could materially change our estimates and require adjustments to our liability. In addition, new product launches require a greater use of judgment in developing estimates until historical experience becomes available. In the second quarter of 2016, we recorded a charge for adjustments to pre-existing warranties of $46 million or $0.56 per diluted share. The charge primarily relates to increases in both claim frequency and cost of repair across both the Medium Duty and Big Bore engine families. The charge increases the reserve for our standard warranty obligations as well as the loss positions related to our Big Bore extended service contracts. Adjustments to pre-existing warranties in the three 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 our Consolidated Statements of Operations. In the first quarter of 2015, we recorded a benefit for adjustments to pre-existing warranties of $57 million or $0.70 per diluted share. The impact of income taxes on the 2016 and 2015 adjustments are not material due to our deferred tax valuation allowances on our U.S. deferred tax assets. |
Restructuring and Impairments (
Restructuring and Impairments (Tables) | 9 Months Ended |
Jul. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
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, 2015 Additions Payments Adjustments Balance at July 31, 2016 Employee termination charges $ 62 $ 4 $ (58 ) $ 2 $ 10 Lease vacancy 5 — (4 ) — 1 Other 1 — — — 1 Restructuring liability $ 68 $ 4 $ (62 ) $ 2 $ 12 (in millions) Balance at 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 |
Finance Receivables (Tables)
Finance Receivables (Tables) | 9 Months Ended |
Jul. 31, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ur Finance receivables, net in our Consolidated Balance Sheets consist of the following: (in millions) July 31, 2016 October 31, 2015 Retail portfolio $ 406 $ 554 Wholesale portfolio 1,228 1,467 Total finance receivables 1,634 2,021 Less: Allowance for doubtful accounts 21 26 Total finance receivables, net 1,613 1,995 Less: Current portion, net (A) 1,410 1,779 Noncurrent portion, net $ 203 $ 216 _________________________ (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 in our Consolidated Statements of Operations : Three Months Ended July 31, Nine Months Ended July 31, (in millions) 2016 2015 2016 2015 Retail notes and finance leases revenue $ 9 $ 12 $ 28 $ 37 Wholesale notes interest 29 27 81 75 Operating lease revenue 17 16 49 46 Retail and wholesale accounts interest 5 8 19 25 Gross finance revenues 60 63 177 183 Less: Intercompany revenues (26 ) (26 ) (75 ) (75 ) Finance revenues $ 34 $ 37 $ 102 $ 108 |
Allowance for Doubtful Accoun28
Allowance for Doubtful Accounts (Tables) | 9 Months Ended |
Jul. 31, 2016 | |
Allowance for Doubtful Accounts [Abstract] | |
Allowance For Credit Losses On Receivables [Table Text Block] | 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 inf |
Impaired Financing Receivables [Table Text Block] | The following table presents information regarding impaired finance receivables: July 31, 2016 October 31, 2015 (in millions) Retail Wholesale Total Retail Wholesale Total Impaired finance receivables with specific loss reserves $ 18 $ — $ 18 $ 21 $ — $ 21 Impaired finance receivables without specific loss reserves — — — — — — Specific loss reserves on impaired finance receivables 9 — 9 9 — 9 Finance receivables on non-accrual status 18 — 18 21 — 21 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | use the aging of our receivables as well as other inputs when assessing credit quality. The following table presents the aging analysis for finance receivables: July 31, 2016 October 31, 2015 (in millions) Retail Wholesale Total Retail Wholesale Total Current, and up to 30 days past due $ 356 $ 1,226 $ 1,582 $ 486 $ 1,461 $ 1,947 30-90 days past due 34 1 35 48 4 52 Over 90 days past due 16 1 17 20 2 22 Total finance receivables $ 406 $ 1,228 $ 1,634 $ 554 $ 1,467 $ 2,021 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jul. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | he following table presents the components of Inventories in our Consolidated Balance Sheets : (in millions) July 31, October 31, Finished products $ 809 $ 837 Work in process 31 34 Raw materials 244 264 Total inventories, net $ 1,084 $ 1,135 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jul. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | (in millions) July 31, 2016 October 31, 2015 Manufacturing operations Senior Secured Term Loan Credit Facility, as amended, due 2020, net of unamortized discount of $14 and $17, respectively $ 1,020 $ 1,023 8.25% Senior Notes, due 2022, net of unamortized discount of $16 and $18, respectively 1,184 1,182 4.50% Senior Subordinated Convertible Notes, due 2018, net of unamortized discount of $11 and $14, respectively 189 186 4.75% Senior Subordinated Convertible Notes, due 2019, net of unamortized discount of $26 and $32, respectively 385 379 Debt of majority-owned dealerships 13 28 Financing arrangements and capital lease obligations 44 49 Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040 225 225 Financed lease obligations 61 111 Other 10 15 Total Manufacturing operations debt 3,131 3,198 Less: Current portion 67 103 Net long-term Manufacturing operations debt $ 3,064 $ 3,095 (in millions) July 31, 2016 October 31, 2015 Financial Services operations Asset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2021 $ 867 $ 870 Bank credit facilities, at fixed and variable rates, due dates from 2016 through 2021 874 1,063 Commercial paper, at variable rates, program matures in 2017 93 86 Borrowings secured by operating and finance leases, at various rates, due serially through 2021 100 81 Total Financial Services operations debt 1,934 2,100 Less: Current portion 1,322 1,007 Net long-term Financial Services operations debt $ 612 $ 1,093 |
(Tables)
(Tables) | 9 Months Ended |
Jul. 31, 2016 | |
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) 2016 2015 2016 2015 2016 2015 2016 2015 Service cost for benefits earned during the period $ 2 $ 3 $ 1 $ 2 $ 7 $ 9 $ 4 $ 5 Interest on obligation 29 35 14 17 88 106 44 53 Amortization of cumulative loss 26 25 8 10 78 74 24 29 Amortization of prior service benefit — — — (1 ) — — (1 ) (3 ) Contractual termination benefits 1 — 4 — 3 (1 ) 4 (1 ) Premiums on pension insurance 4 3 — — 12 8 — — Expected return on assets (41 ) (48 ) (6 ) (7 ) (125 ) (145 ) (19 ) (22 ) Net periodic benefit expense $ 21 $ 18 $ 21 $ 21 $ 63 $ 51 $ 56 $ 61 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jul. 31, 2016 | |
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, 2016 October 31, 2015 (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Marketable securities: U.S. Treasury bills $ 49 $ — $ — $ 49 $ 53 $ — $ — $ 53 Other 91 — — 91 106 — — 106 Derivative financial instruments: Commodity forward contracts (A) — 5 — 5 — — — — Foreign currency contracts (A) — — — — — 1 — 1 Total assets $ 140 $ 5 $ — $ 145 $ 159 $ 1 $ — $ 160 Liabilities Derivative financial instruments: Commodity forward contracts (B) $ — $ 1 $ — $ 1 $ — $ 2 $ — $ 2 Foreign currency contracts (B) — 1 — 1 — 2 — 2 Guarantees — — 23 23 — — 10 10 Total liabilities $ — $ 2 $ 23 $ 25 $ — $ 4 $ 10 $ 14 _________________________ (A) The asset value of commodity forward contracts and foreign currency contracts is included in Other current assets as of July 31, 2016 and October 31, 2015 in the accompanying Consolidated Balance Sheets . (B) The liability value of commodity forward contracts and foreign currency contracts is included in Other current liabilities as of July 31, 2016 and October 31, 2015 in the accompanying Consolidated Balance Sheets. |
Financial instruments classified within Level 3 | The following table presents the changes for those financial instruments classified within Level 3 of the valuation hierarchy: Three Months Ended July 31, Nine Months Ended July 31, (in millions) 2016 2015 2016 2015 Guarantees, at beginning of period $ (19 ) $ (7 ) $ (10 ) $ (8 ) Transfers out of Level 3 — — — — Issuances (5 ) (4 ) (16 ) (4 ) Settlements 1 1 3 2 Guarantees, at end of period $ (23 ) $ (10 ) $ (23 ) $ (10 ) Change in unrealized gains on assets (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, 2016 October 31, 2015 Level 2 financial instruments Carrying value of impaired finance receivables (A) $ 18 $ 21 Specific loss reserve (9 ) (9 ) Fair value $ 9 $ 12 _________________________ (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, 2016 Estimated Fair Value Carrying Value (in millions) Level 1 Level 2 Level 3 Total Assets Retail notes $ — $ — $ 144 $ 144 $ 136 Notes receivable — — 1 1 1 Liabilities Debt: Manufacturing operations Senior Secured Term Loan Credit Facility, as Amended, due 2020 — — 973 973 1,020 8.25% Senior Notes, due 2022 893 — — 893 1,184 4.50% Senior Subordinated Convertible Notes, due 2018 (A) — — 137 137 189 4.75% Senior Subordinated Convertible Notes, due 2019 (A) — — 258 258 385 Debt of majority-owned dealerships — — 15 15 13 Financing arrangements — — 15 15 38 Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040 — 227 — 227 225 Financed lease obligations — — 61 61 61 Other — — 10 10 10 Financial Services operations Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2021 — — 863 863 867 Bank credit facilities, at fixed and variable rates, due dates from 2016 through 2021 — — 860 860 874 Commercial paper, at variable rates, program matures in 2017 93 — — 93 93 Borrowings secured by operating and finance leases, at various rates, due serially through 2021 — — 100 100 100 As of October 31, 2015 Estimated Fair Value Carrying Value (in millions) Level 1 Level 2 Level 3 Total Assets Retail notes $ — $ — $ 170 $ 170 $ 166 Notes receivable — — 3 3 3 Liabilities Debt: Manufacturing operations Senior Secured Term Loan Credit Facility, as Amended, due 2020 — — 1,014 1,014 1,023 8.25% Senior Notes, due 2022 998 — — 998 1,182 4.50% Senior Subordinated Convertible Notes, due 2018 (A) — — 148 148 186 4.75% Senior Subordinated Convertible Notes, due 2019 (A) — — 289 289 379 Debt of majority-owned dealerships — — 28 28 28 Financing arrangements — — 17 17 43 Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040 — 233 — 233 225 Financed lease obligations — — 111 111 111 Other — — 17 17 15 Financial Services operations Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2018 — — 865 865 870 Bank credit facilities, at fixed and variable rates, due dates from 2016 through 2020 — — 1,048 1,048 1,063 Commercial paper, at variable rates, program matures in 2017 86 — — 86 86 Borrowings secured by operating and finance leases, at various rates, due serially through 2020 — — 80 80 81 _________________________ (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 Com33
Financial Instruments and Commodity Contracts (Tables) | 9 Months Ended |
Jul. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The following table presents the location and amount of (income) loss recognized in our Consolidated Statements of Operations related to derivatives: Three Months Ended July 31, Nine Months Ended July 31, (in millions) Location in Consolidated Statements of Operations 2016 2015 2016 2015 Interest rate caps Interest expense $ — $ 1 $ — $ 1 Cross currency swaps Other income, net (1 ) (1 ) (1 ) 2 Foreign currency contracts Other income, net (4 ) (6 ) — (5 ) Commodity forward contracts Costs of products sold — (1 ) (2 ) 4 Total (income) loss $ (5 ) $ (7 ) $ (3 ) $ 2 |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table presents the outstanding foreign currency contracts as of July 31, 2016 and October 31, 2015 : (in millions) Currency Notional Amount Maturity As of July 31, 2016 Forward exchange contract EUR € 12 July 2016 - October 2016 (A) Forward exchange contract CAD C$ 30 July 2016 - September 2016 (B) Forward exchange contract MXN ₱ 759 July 2016 - August 2016 (C) As of October 31, 2015 Forward exchange contract EUR € 30 November 2015 - October 2016 (D) Forward exchange contract CAD C$ 25 November 2015 Forward exchange contract MXN ₱ 1,270 November 2015 _________________________ (A) Forward exchange contracts of €2 million matured in July 2016 but settled in August 2016, €3 million matured in August 2016, €4 million mature in September 2016, and €3 million mature in October 2016. (B) Forward exchange contracts of C$15 million matured in July 2016 but settled in August 2016, C$10 million matured in August 2016, and C$5 million mature in September 2016. (C) Forward exchange contracts of ₱380 million matured in July 2016 but settled in August 2016 and ₱379 million matured in August 2016. (D) Forward exchange contracts of €2 million settled in November 2015, €3 million matured in November 2015, €3 million matured in December 2015, €4 million matured in January 2016, and €2 million mature each month from February 2016 through October 2016. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Jul. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of selected financial information, by segment | (in millions) Truck Parts Global Operations Financial Services Corporate and Eliminations Total Segment assets, as of: July 31, 2016 $ 1,644 $ 608 $ 379 $ 2,132 $ 956 $ 5,719 October 31, 2015 1,876 641 409 2,455 1,311 6,692 _________________________ (A) Total sales and revenues in the Financial Services segment include interest revenues of $43 million and $127 million for the three and nine months ended July 31, 2016 , respectively, and $46 million and $135 million for the three and nine months ended July 31, 2015 , respectively. (B) Exclusive of purchases of equipment leased to others. (in millions) Truck Parts Global Operations Financial (A) Corporate Total Three Months Ended July 31, 2016 External sales and revenues, net $ 1,386 $ 589 $ 73 $ 34 $ 4 $ 2,086 Intersegment sales and revenues 9 8 12 26 (55 ) — Total sales and revenues, net $ 1,395 $ 597 $ 85 $ 60 $ (51 ) $ 2,086 Income (loss) from continuing operations attributable to NIC, net of tax $ (54 ) $ 152 $ (5 ) $ 26 $ (153 ) $ (34 ) Income tax expense — — — — (14 ) (14 ) Segment profit (loss) $ (54 ) $ 152 $ (5 ) $ 26 $ (139 ) $ (20 ) Depreciation and amortization $ 29 $ 3 $ 4 $ 13 $ 4 $ 53 Interest expense — — — 21 63 84 Equity in income of non-consolidated affiliates 1 1 — — — 2 Capital expenditures (B) 26 — — 1 3 30 (in millions) Truck Parts Global Operations Financial (A) Corporate 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 (A) Corporate Total Nine Months Ended July 31, 2016 External sales and revenues, net $ 3,926 $ 1,791 $ 221 $ 102 $ 8 $ 6,048 Intersegment sales and revenues 81 23 33 75 (212 ) — Total sales and revenues, net $ 4,007 $ 1,814 $ 254 $ 177 $ (204 ) $ 6,048 Income (loss) from continuing operations attributable to NIC, net of tax $ (128 ) $ 478 $ (19 ) $ 77 $ (471 ) $ (63 ) Income tax expense — — — — (25 ) (25 ) Segment profit (loss) $ (128 ) $ 478 $ (19 ) $ 77 $ (446 ) $ (38 ) Depreciation and amortization $ 92 $ 10 $ 13 $ 37 $ 12 $ 164 Interest expense — — — 59 187 246 Equity in income (loss) of non-consolidated affiliates 3 3 (3 ) — — 3 Capital expenditures (B) 70 2 2 1 8 83 (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 |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) (Tables) | 9 Months Ended |
Jul. 31, 2016 | |
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, 2016 $ 1 $ (270 ) $ (2,267 ) $ (2,536 ) Other comprehensive loss before reclassifications — (10 ) — (10 ) Amounts reclassified out of accumulated other comprehensive loss — — 34 34 Net current-period other comprehensive income (loss) — (10 ) 34 24 Balance as of July 31, 2016 $ 1 $ (280 ) $ (2,233 ) $ (2,512 ) (in millions) Unrealized Gain on Marketable Securities Foreign Currency Translation Adjustments Defined Benefit Plans Total Balance as of October 31, 2015 $ 1 $ (287 ) $ (2,315 ) $ (2,601 ) Other comprehensive income (loss) before reclassifications — 7 (18 ) (11 ) Amounts reclassified out of accumulated other comprehensive loss — — 100 100 Net current-period other comprehensive income — 7 82 89 Balance as of July 31, 2016 $ 1 $ (280 ) $ (2,233 ) $ (2,512 ) (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 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table displays the amounts reclassified from Accumulated other comprehensive loss and the affected line item in the Consolidated Statements of Operations: Three Months Ended July 31, Nine Months Ended July 31, Location in Consolidated 2016 2015 2016 2015 Defined benefit plans Amortization of prior service benefit Selling, general and administrative expenses $ — $ (1 ) $ (1 ) $ (3 ) Amortization of actuarial loss Selling, general and administrative expenses 34 34 101 102 Total before tax 34 33 100 99 Income tax expense — — — (1 ) Total reclassifications for the period, net of tax $ 34 $ 33 $ 100 $ 98 |
Earnings (Loss) Per Share Att36
Earnings (Loss) Per Share Attributable to Navistar International Corporation (Tables) | 9 Months Ended |
Jul. 31, 2016 | |
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) 2016 2015 2016 2015 Numerator: Amounts attributable to Navistar International Corporation common stockholders: Loss from continuing operations, net of tax $ (34 ) $ (30 ) $ (63 ) $ (136 ) Income from discontinued operations, net of tax — 2 — 2 Net loss $ (34 ) $ (28 ) $ (63 ) $ (134 ) Denominator: Weighted average shares outstanding: Basic 81.7 81.6 81.7 81.5 Effect of dilutive securities — — — — Diluted 81.7 81.6 81.7 81.5 Earnings (loss) per share attributable to Navistar International Corporation: Basic: Continuing operations $ (0.42 ) $ (0.37 ) $ (0.77 ) $ (1.67 ) Discontinued operations — 0.03 — 0.03 Net loss $ (0.42 ) $ (0.34 ) $ (0.77 ) $ (1.64 ) Diluted: Continuing operations $ (0.42 ) $ (0.37 ) $ (0.77 ) $ (1.67 ) Discontinued operations — 0.03 — 0.03 Net loss $ (0.42 ) $ (0.34 ) $ (0.77 ) $ (1.64 ) |
Condensed Consolidating Guara37
Condensed Consolidating Guarantor and Non-Guarantor Financial Information (Tables) | 9 Months Ended |
Jul. 31, 2016 | |
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, Inc. Non-Guarantor Subsidiaries Eliminations and Other 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 Three Months Ended July 31, 2016 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Sales and revenues, net $ — $ 1,411 $ 1,432 $ (757 ) $ 2,086 Costs of products sold — 1,276 1,216 (735 ) 1,757 Restructuring charges — (1 ) 6 — 5 Asset impairment charges — — 12 — 12 All other operating expenses (income) 18 197 131 (18 ) 328 Total costs and expenses 18 1,472 1,365 (753 ) 2,102 Equity in income (loss) of affiliates (16 ) 63 1 (46 ) 2 Income (loss) before income taxes (34 ) 2 68 (50 ) (14 ) Income tax expense — (1 ) (13 ) — (14 ) Earnings (loss) from continuing operations (34 ) 1 55 (50 ) (28 ) Income (loss) from discontinued operations, net of tax — — — — — Net income (loss) (34 ) 1 55 (50 ) (28 ) Less: Net income attributable to non-controlling interests — — 6 — 6 Net income (loss) attributable to Navistar International Corporation $ (34 ) $ 1 $ 49 $ (50 ) $ (34 ) Condensed Consolidating Statement of Operations for the Nine Months Ended July 31, 2016 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Sales and revenues, net $ — $ 4,455 $ 4,055 $ (2,462 ) $ 6,048 Costs of products sold — 4,028 3,447 (2,407 ) 5,068 Restructuring charges — 3 8 — 11 Asset impairment charges — 2 15 — 17 All other operating expenses (income) 75 643 305 (54 ) 969 Total costs and expenses 75 4,676 3,775 (2,461 ) 6,065 Equity in income (loss) of affiliates 12 118 — (127 ) 3 Income (loss) before income taxes (63 ) (103 ) 280 (128 ) (14 ) Income tax benefit (expense) — 10 (35 ) — (25 ) Earnings (loss) from continuing operations (63 ) (93 ) 245 (128 ) (39 ) Income (loss) from discontinued operations, net of tax — — — — — Net income (loss) (63 ) (93 ) 245 (128 ) (39 ) Less: Net income attributable to non-controlling interests — — 24 — 24 Net income (loss) attributable to Navistar International Corporation $ (63 ) $ (93 ) $ 221 $ (128 ) $ (63 ) Condensed Consolidating Statement of Operations for the Nine Months Ended July 31, 2015 (in millions) NIC Navistar, Inc. Non-Guarantor Subsidiaries Eliminations and Other 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 ) |
Schedule of Condensed Statement of Comprehensive Income [Table Text Block] | Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended July 31, 2015 (in millions) NIC Navistar, Inc. Non-Guarantor Subsidiaries Eliminations and Other Consolidated Net income (loss) $ (28 ) $ (52 ) $ 124 $ (65 ) $ (21 ) Other comprehensive income (loss): Foreign currency translation adjustment (47 ) — (47 ) 47 (47 ) Defined benefit plans (net of tax) 33 8 25 (33 ) 33 Total other comprehensive income (loss) (14 ) 8 (22 ) 14 (14 ) Comprehensive income (loss) (42 ) (44 ) 102 (51 ) (35 ) Less: Net income attributable to non-controlling interests — — 7 — 7 Total comprehensive income (loss) attributable to Navistar International Corporation $ (42 ) $ (44 ) $ 95 $ (51 ) $ (42 ) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Nine Months Ended July 31, 2015 (in millions) NIC Navistar, Inc. Non-Guarantor Subsidiaries Eliminations and Other Consolidated Net income (loss) $ (134 ) $ (186 ) $ 298 $ (89 ) $ (111 ) Other comprehensive income (loss): Foreign currency translation adjustment (133 ) — (133 ) 133 (133 ) Defined benefit plans (net of tax) 98 70 28 (98 ) 98 Total other comprehensive income (loss) (35 ) 70 (105 ) 35 (35 ) Comprehensive income (loss) (169 ) (116 ) 193 (54 ) (146 ) Less: Net income attributable to non-controlling interests — — 23 — 23 Total comprehensive income (loss) attributable to Navistar International Corporation $ (169 ) $ (116 ) $ 170 $ (54 ) $ (169 ) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Three Months Ended July 31, 2016 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net income (loss) $ (34 ) $ 1 $ 55 $ (50 ) $ (28 ) Other comprehensive income (loss): Foreign currency translation adjustment (10 ) — (10 ) 10 (10 ) Defined benefit plans (net of tax) 34 33 1 (34 ) 34 Total other comprehensive income (loss) 24 33 (9 ) (24 ) 24 Comprehensive income (loss) (10 ) 34 46 (74 ) (4 ) Less: Net income attributable to non-controlling interests — — 6 — 6 Total comprehensive income (loss) attributable to Navistar International Corporation $ (10 ) $ 34 $ 40 $ (74 ) $ (10 ) Condensed Consolidating Statement of Comprehensive Income (Loss) for the Nine Months Ended July 31, 2016 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net income (loss) $ (63 ) $ (93 ) $ 245 $ (128 ) $ (39 ) Other comprehensive income (loss): Foreign currency translation adjustment 7 — 7 (7 ) 7 Defined benefit plans (net of tax) 82 96 (14 ) (82 ) 82 Total other comprehensive income (loss) 89 96 (7 ) (89 ) 89 Comprehensive income (loss) 26 3 238 (217 ) 50 Less: Net income attributable to non-controlling interests — — 24 — 24 Total comprehensive income (loss) attributable to Navistar International Corporation $ 26 $ 3 $ 214 $ (217 ) $ 26 |
Schedule of Condensed Balance Sheet [Table Text Block] | Condensed Consolidating Balance Sheet as of October 31, 2015 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ 456 $ 81 $ 375 $ — $ 912 Marketable securities 112 — 47 — 159 Restricted cash 16 7 98 — 121 Finance and other receivables, net 1 99 2,440 (103 ) 2,437 Inventories — 809 342 (16 ) 1,135 Investments in non-consolidated affiliates (7,679 ) 6,204 64 1,477 66 Property and equipment, net — 737 616 (8 ) 1,345 Goodwill — — 38 — 38 Deferred taxes, net 7 20 137 — 164 Other 33 128 155 (1 ) 315 Total assets $ (7,054 ) $ 8,085 $ 4,312 $ 1,349 $ 6,692 Liabilities and stockholders’ equity (deficit) Debt $ 1,971 $ 1,180 $ 2,151 $ (4 ) $ 5,298 Postretirement benefits liabilities — 2,909 179 — 3,088 Amounts due to (from) affiliates (7,574 ) 10,280 (2,879 ) 173 — Other liabilities 3,716 207 (388 ) (69 ) 3,466 Total liabilities (1,887 ) 14,576 (937 ) 100 11,852 Stockholders’ equity attributable to non-controlling interest — — 7 — 7 Stockholders’ equity (deficit) attributable to Navistar International Corporation (5,167 ) (6,491 ) 5,242 1,249 (5,167 ) Total liabilities and stockholders’ equity (deficit) $ (7,054 ) $ 8,085 $ 4,312 $ 1,349 $ 6,692 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 investing 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) investing 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 Balance Sheet as of July 31, 2016 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ 197 $ 85 $ 265 $ — $ 547 Marketable securities — — 140 — 140 Restricted cash 16 3 162 — 181 Finance and other receivables, net 3 87 1,949 (109 ) 1,930 Inventories — 756 341 (13 ) 1,084 Investments in non-consolidated affiliates (7,577 ) 6,278 56 1,303 60 Property and equipment, net — 682 581 (6 ) 1,257 Goodwill — — 38 — 38 Deferred taxes, net — 15 138 — 153 Other 28 124 178 (1 ) 329 Total assets $ (7,333 ) $ 8,030 $ 3,848 $ 1,174 $ 5,719 Liabilities and stockholders’ equity (deficit) Debt $ 1,983 $ 1,123 $ 1,961 $ (2 ) $ 5,065 Postretirement benefits liabilities — 2,797 201 — 2,998 Amounts due to (from) affiliates (7,986 ) 10,722 (2,905 ) 169 — Other liabilities 3,807 (119 ) (831 ) (67 ) 2,790 Total liabilities (2,196 ) 14,523 (1,574 ) 100 10,853 Stockholders’ equity attributable to non-controlling interest — — 3 — 3 Stockholders’ equity (deficit) attributable to Navistar International Corporation (5,137 ) (6,493 ) 5,419 1,074 (5,137 ) Total liabilities and stockholders’ equity (deficit) $ (7,333 ) $ 8,030 $ 3,848 $ 1,174 $ 5,719 |
Schedule of Condensed Cash Flow Statement [Table Text Block] | 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 investing 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) investing 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 Cash Flows for the Nine Months Ended July 31, 2016 (in millions) NIC Navistar, Non-Guarantor Eliminations Consolidated Net cash provided by (used in) operations $ (372 ) $ (225 ) $ 344 $ 239 $ (14 ) Cash flows from investing activities Net change in restricted cash and cash equivalents — 4 (68 ) — (64 ) Net sales (purchases) of marketable securities 113 — (94 ) — 19 Capital expenditures and purchase of equipment leased to others — (56 ) (121 ) — (177 ) Other investing activities — — 55 — 55 Net cash provided by (used in) investing activities 113 (52 ) (228 ) — (167 ) Cash flows from financing activities Net borrowings (repayments) of debt — 263 (151 ) (319 ) (207 ) Other financing activities — 18 (108 ) 80 (10 ) Net cash provided by (used in) financing activities — 281 (259 ) (239 ) (217 ) Effect of exchange rate changes on cash and cash equivalents — — 33 — 33 Increase (decrease) in cash and cash equivalents (259 ) 4 (110 ) — (365 ) Cash and cash equivalents at beginning of the period 456 81 375 — 912 Cash and cash equivalents at end of the period $ 197 $ 85 $ 265 $ — $ 547 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Jul. 31, 2016USD ($)employeessegments | Apr. 30, 2016USD ($) | Jul. 31, 2015USD ($) | Jan. 31, 2015USD ($) | Jul. 31, 2016USD ($)employees | Jul. 31, 2015USD ($) | Oct. 31, 2015USD ($) | |
Accounting Policies [Line Items] | |||||||
Costs of products sold | $ 1,757 | $ 2,172 | $ 5,068 | $ 6,577 | |||
Net loss attributable to Navistar International Corporation | $ (34) | (28) | (63) | (134) | |||
Number Of Segments | segments | 4 | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 1 | 3 | 1 | 3 | |||
Goodwill | 38 | 38 | $ 38 | ||||
Sales of manufactured products, net | 2,052 | 2,501 | 5,946 | 7,544 | |||
Depreciation, Depletion and Amortization | 53 | 68 | 164 | 221 | |||
Interest expense | 84 | 75 | 246 | 227 | |||
Capital expenditures | $ 30 | 27 | 83 | 72 | |||
Proceeds from financed lease obligations | 17 | 26 | |||||
Product Warranty Accrual, Preexisting, Increase (Decrease) | $ 70 | (38) | |||||
Unionized Employees Concentration Risk [Member] | Number Of Employees Hourly Workers [Member] | |||||||
Accounting Policies [Line Items] | |||||||
Concentration Risk Number Of Employees | employees | 5,400 | 5,400 | |||||
concentration risk number of employees percentage | 82.00% | 82.00% | |||||
Unionized Employees Concentration Risk [Member] | Number of Employees Salaried Workers [Member] | |||||||
Accounting Policies [Line Items] | |||||||
Concentration Risk Number Of Employees | employees | 300 | 300 | |||||
concentration risk number of employees percentage | 6.00% | 6.00% | |||||
Brazilian Reporting Unit [Member] | |||||||
Accounting Policies [Line Items] | |||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 1 | 3 | |||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 24 | 24 | |||||
Product Warranty Accrual [Member] | |||||||
Accounting Policies [Line Items] | |||||||
Product Warranty Accrual, Preexisting, Increase (Decrease) | $ 46 | $ (57) | |||||
North America Truck [Member] | |||||||
Accounting Policies [Line Items] | |||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 11 | $ 7 | |||||
Depreciation, Depletion and Amortization | 29 | 40 | $ 92 | 139 | |||
Interest expense | 0 | 0 | 0 | 0 | |||
Capital expenditures | 26 | 20 | 70 | 58 | |||
Extended Warranty Programs [Member] | |||||||
Accounting Policies [Line Items] | |||||||
Deferred Revenue, Revenue Recognized | 37 | 40 | 113 | $ 115 | |||
Deferred Revenue | $ 345 | $ 345 | $ 401 | ||||
Discontinued Operations [Member] | Product Warranty Accrual [Member] | |||||||
Accounting Policies [Line Items] | |||||||
Product Warranty Accrual, Preexisting, Increase (Decrease) | $ 2 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Variable Interest Entities (Details) - USD ($) $ in Millions | May 28, 2015 | Jul. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Oct. 31, 2014 |
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | $ 547 | $ 912 | $ 547 | $ 497 | |
Variable Interest Entity Primary Beneficiary, Blue Diamond Parts [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 40 | 50 | |||
Cash and cash equivalents | 3 | 7 | |||
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities | 12 | 7 | |||
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 | 1,000 | 1,100 | |||
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities | 850 | 844 | |||
Transaction Does Not Qualify for Sale Accounting [Member] | Financial Services Operations [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 178 | 235 | |||
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities | $ 118 | $ 107 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Product Warranty Liability (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Jul. 31, 2016 | Apr. 30, 2016 | Jul. 31, 2015 | Jan. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | Oct. 31, 2015 | Oct. 31, 2014 | |
Product Liability Contingency [Line Items] | ||||||||
Product Warranty Accrual | $ 868 | $ 1,016 | $ 868 | $ 1,016 | $ 994 | $ 1,197 | ||
Product Warranty Accrual, Warranties Issued | 141 | 208 | ||||||
Product Warranty Accrual, Currency Translation, Increase (Decrease) | 2 | (7) | ||||||
Accrued Product Warranty And Deferred Warranty Revenue, Standard And Extended Warranty Programs, Roll Forward: | ||||||||
Adjustments to pre-existing warranties(A)(B) | 70 | (38) | ||||||
Extended Warranty Program: | ||||||||
Product Warranty Accrual, Payments | (339) | (344) | ||||||
Product Warranty Accrual, Current | 423 | 466 | 423 | 466 | ||||
Product Warranty Accrual, Noncurrent | 445 | 550 | 445 | 550 | ||||
Extended Warranty Programs [Member] | ||||||||
Extended Warranty Program: | ||||||||
Deferred Revenue, Revenue Recognized | 37 | 40 | 113 | 115 | ||||
Deferred Revenue | $ 345 | $ 345 | $ 401 | |||||
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) | $ 46 | $ (57) | ||||||
Product Warranty Accrual, Preexisting Increase Decrease Per Share, Net of Tax | $ 0.56 | $ (0.70) | ||||||
Amortization of Loss Reserves [Member] | ||||||||
Accrued Product Warranty And Deferred Warranty Revenue, Standard And Extended Warranty Programs, Roll Forward: | ||||||||
Prior Period Reclassification Adjustment | $ 31 | |||||||
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 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Inventory (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2016 | Oct. 31, 2015 | |
Inventory [Line Items] | ||
Gross truck bed inventory | $ 430 | $ 390 |
Inventory reserves | 166 | $ 110 |
Cost of Goods [Member] | Inventory Valuation Reserve [Member] | ||
Inventory [Line Items] | ||
Additional reserves added during period | $ 56 |
Restructuring and Impairments -
Restructuring and Impairments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Jul. 31, 2016 | Jul. 31, 2015 | Jan. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2016 | Jul. 31, 2015 | Oct. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $ 5 | $ 13 | $ 11 | $ 22 | |||
Restructuring and Related Cost, Incurred Cost | 4 | 19 | |||||
Asset impairment charges | 12 | 7 | 17 | 15 | |||
Goodwill | 38 | 38 | $ 38 | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 1 | 3 | 1 | 3 | |||
Other Restructuring [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Incurred Cost | 0 | 2 | |||||
Employee Severance [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 13 | ||||||
Restructuring and Related Cost, Incurred Cost | 4 | 17 | |||||
Lease Vacancy [Member] [Domain] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Incurred Cost | 0 | 0 | |||||
North America Truck [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 11 | $ 7 | |||||
Indianapolis and Waukesha Foundry [Member] | North America Truck [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Incurred Cost | 3 | 28 | |||||
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 | |||||
Brazilian Reporting Unit [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 1 | 3 | |||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 24 | $ 24 | |||||
Other Postretirement Benefit Plan [Member] | Chatham [Member] | Facility Closing [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Postemployment Benefits, Period Expense | $ 5 | $ 14 |
Restructuring and Impairments43
Restructuring and Impairments - Restructuring Reserve by Type (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | Oct. 31, 2015 | Oct. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 5 | $ 13 | $ 11 | $ 22 | ||
Restructuring Reserve | 12 | 22 | 12 | 22 | $ 68 | $ 20 |
Restructuring and Related Cost, Incurred Cost | 4 | 19 | ||||
Payments for Restructuring | 62 | 15 | ||||
Restructuring Reserve, Accrual Adjustment | 2 | (2) | ||||
Employee Severance [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 13 | |||||
Restructuring Reserve | 10 | 16 | 10 | 16 | 62 | 8 |
Restructuring and Related Cost, Incurred Cost | 4 | 17 | ||||
Payments for Restructuring | 58 | 7 | ||||
Restructuring Reserve, Accrual Adjustment | 2 | (2) | ||||
Lease Vacancy [Member] [Domain] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | 1 | 5 | 1 | 5 | 5 | 11 |
Restructuring and Related Cost, Incurred Cost | 0 | 0 | ||||
Payments for Restructuring | 4 | 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 | 0 | 2 | ||||
Payments for Restructuring | 0 | 2 | ||||
Restructuring Reserve, Accrual Adjustment | $ 0 | 0 | ||||
Indianapolis and Waukesha Foundry [Member] | North America Truck [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Incurred Cost | $ 3 | $ 28 |
Restructuring and Impairments44
Restructuring and Impairments - Schedule of Impairment Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2016 | Jul. 31, 2015 | Jan. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 1 | $ 3 | $ 1 | $ 3 | |
Other Asset Impairment Charges | 11 | 4 | 16 | 12 | |
Asset impairment charges | 12 | 7 | 17 | $ 15 | |
Brazilian Reporting Unit [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 1 | $ 3 | |||
North America Truck [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 11 | $ 7 | |||
Pure Power Technologies [Member] | North America Truck [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset impairment charges | $ 3 |
Finance Receivables - Narrative
Finance Receivables - Narrative (Details) $ in Millions | Jul. 31, 2016USD ($)segments | Oct. 31, 2015USD ($) |
Schedule of Securitization [Line Items] | ||
Loans and Leases Receivable, Net Amount | $ 1,600 | $ 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 | $ 917 | 1,000 |
Cash Collateral for Borrowed Securities | 54 | 96 |
Financial Services Operations [Member] | ||
Schedule of Securitization [Line Items] | ||
Assets Net Of Intercompany Balances | $ 2,100 | $ 2,500 |
Finance Receivables - Finance R
Finance Receivables - Finance Receivables (Details) - USD ($) $ in Millions | Jul. 31, 2016 | Oct. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount, Covered | $ 1,634 | $ 2,021 | |
Less: Allowance for Doubtful accounts | 21 | 26 | |
Total finance receivables, net | 1,613 | 1,995 | |
Financing Receivable, Recorded Investment, Current | [1] | 1,410 | 1,779 |
Finance Receivables, Noncurrent | 203 | 216 | |
Loans and Leases Receivable, Gross | 1,634 | 2,021 | |
Retail Portfolio [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount, Covered | 406 | 554 | |
Wholesale Portfolio [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount, Covered | $ 1,228 | $ 1,467 | |
[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, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Finance Revenues [Line Items] | ||||
Retail notes and finance leases revenue | $ 9 | $ 12 | $ 28 | $ 37 |
Gross finance revenues | 60 | 63 | 177 | 183 |
Less: Intercompany revenues | (26) | (26) | (75) | (75) |
Finance revenues | 34 | 37 | 102 | 108 |
Financing Receivable [Member] | ||||
Finance Revenues [Line Items] | ||||
Operating lease revenue | 17 | 16 | 49 | 46 |
Wholesale Portfolio [Member] | Notes Receivable [Member] | ||||
Finance Revenues [Line Items] | ||||
Interest Income, Operating | 29 | 27 | 81 | 75 |
Retail And Wholesale Portfolios [Member] | ||||
Finance Revenues [Line Items] | ||||
Interest Income, Operating | $ 5 | $ 8 | $ 19 | $ 25 |
Allowance for Doubtful Accoun48
Allowance for Doubtful Accounts - Schedule of Allowance for Retail, Wholesale, Trade & Other (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Allowance for doubtful accounts at beginning of period | $ 51 | $ 58 | $ 48 | $ 65 |
Provision for doubtful accounts, net of recoveries | 1 | 2 | 8 | 7 |
Charge-off of accounts | (4) | (1) | (9) | (5) |
Allowance for doubtful accounts at end of period | 48 | 54 | 48 | 54 |
Financing Receivable, Allowance for Credit Losses, Other | 0 | (5) | 1 | (13) |
Retail Portfolio [Member] | ||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Allowance for doubtful accounts at beginning of period | 21 | 25 | 22 | 24 |
Provision for doubtful accounts, net of recoveries | 2 | 2 | 5 | 7 |
Charge-off of accounts | (3) | 0 | (7) | (1) |
Allowance for doubtful accounts at end of period | 18 | 25 | 18 | 25 |
Financing Receivable, Allowance for Credit Losses, Other | (2) | (2) | 2 | (5) |
Impaired Financing Receivable, Average Recorded Investment | 18 | 21 | ||
Wholesale Portfolio [Member] | ||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Allowance for doubtful accounts at beginning of period | 4 | 3 | 4 | 3 |
Provision for doubtful accounts, net of recoveries | (1) | 0 | (1) | 0 |
Charge-off of accounts | 0 | 0 | 0 | 0 |
Allowance for doubtful accounts at end of period | 3 | 3 | 3 | 3 |
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 | 26 | 30 | 22 | 38 |
Provision for doubtful accounts, net of recoveries | 0 | 0 | 4 | 0 |
Charge-off of accounts | (1) | (1) | (2) | (4) |
Allowance for doubtful accounts at end of period | 27 | 26 | 27 | 26 |
Financing Receivable, Allowance for Credit Losses, Other | $ 2 | $ (3) | $ 3 | $ (8) |
Allowance for Doubtful Accoun49
Allowance for Doubtful Accounts - Schedule of Impaired Finance Receivables (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Oct. 31, 2015 | |
Retail Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Average Recorded Investment | $ 18 | $ 21 | |
Impaired finance receivables with specific loss reserves [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 18 | $ 21 | |
Impaired finance receivables with specific loss reserves [Member] | Retail Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 18 | 21 | |
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 | 0 | |
Impaired financing receivable without specific loss reserves [Member] | Retail Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 0 | 0 | |
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 | 9 | 9 | |
Specific loss reserves on impaired finance receivables [Member] | Retail Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Specific loss reserves on impaired finance receivables | 9 | 9 | |
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 | 18 | 21 | |
Finance receivable non-accrual status [Member] | Retail Portfolio [Member] | |||
Finance Receivable, Impaired [Line Items] | |||
Finance receivables on non-accrual status | 18 | 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 Accoun50
Allowance for Doubtful Accounts - Schedule of Allowance Aging Analysis (Details) - USD ($) $ in Millions | Jul. 31, 2016 | Oct. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Finance Receivables, Current | $ 1,582 | $ 1,947 |
30-90 days past due | 35 | 52 |
Total finance receivables | 1,634 | 2,021 |
Retail Portfolio [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Finance Receivables, Current | 356 | 486 |
30-90 days past due | 34 | 48 |
Total finance receivables | 406 | 554 |
Wholesale Portfolio [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Finance Receivables, Current | 1,226 | 1,461 |
30-90 days past due | 1 | 4 |
Total finance receivables | 1,228 | 1,467 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Over 90 days past due | 17 | 22 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Retail Portfolio [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Over 90 days past due | 16 | 20 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Wholesale Portfolio [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Over 90 days past due | $ 1 | $ 2 |
Allowance for Doubtful Accoun51
Allowance for Doubtful Accounts - Narrative (Details) $ in Millions | 9 Months Ended | |
Jul. 31, 2016USD ($)segmentsclass | Jul. 31, 2015USD ($) | |
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 | $ | $ 18 | $ 21 |
Inventories - Inventory (Detail
Inventories - Inventory (Details) - USD ($) $ in Millions | Jul. 31, 2016 | Oct. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 809 | $ 837 |
Work in process | 31 | 34 |
Raw materials | 244 | 264 |
Total inventories, net | $ 1,084 | $ 1,135 |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instruments (Details) - USD ($) $ in Millions | Jul. 31, 2016 | Oct. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-term Debt and Capital Lease Obligations | $ 3,676 | $ 4,188 |
Financial Services Operations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 1,934 | 2,100 |
Long-term Debt and Capital Lease Obligations, Current | 1,322 | 1,007 |
Long-term Debt and Capital Lease Obligations | 612 | 1,093 |
Financial Services Operations [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 867 | 870 |
Financial Services Operations [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 874 | 1,063 |
Financial Services Operations [Member] | Commercial Paper [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 93 | 86 |
Financial Services Operations [Member] | Borrowings Secured By Operating and Finance Leases [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 100 | 81 |
Manufacturing Operations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 3,131 | 3,198 |
Long-term Debt and Capital Lease Obligations, Current | 67 | 103 |
Long-term Debt and Capital Lease Obligations | 3,064 | 3,095 |
Manufacturing Operations [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Unamortized Discount | 14 | 17 |
Long-term Debt | 1,020 | 1,023 |
Manufacturing Operations [Member] | Notes Payable to Banks [Member] | Eight Point Two Five Percent Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Unamortized Discount | $ 16 | 18 |
Debt Instrument, Interest Rate, Stated Percentage | 8.25% | |
Long-term Debt | $ 1,184 | 1,182 |
Manufacturing Operations [Member] | Convertible Subordinated Debt [Member] | Four Point Five Zero Senior Subordinated Convertible Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Unamortized Discount | $ 11 | 14 |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |
Long-term Debt | $ 189 | 186 |
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 | $ 26 | 32 |
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | |
Long-term Debt | $ 385 | 379 |
Manufacturing Operations [Member] | Debt Of Majority Owned Dealerships [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 13 | 28 |
Manufacturing Operations [Member] | Financing Arrangements and Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 44 | 49 |
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] | Financed lease obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 61 | 111 |
Manufacturing Operations [Member] | Notes Payable, Other Payables [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 10 | $ 15 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2011 | Jul. 31, 2016 | Jul. 31, 2016 | May 31, 2016 | Apr. 30, 2016 | Feb. 29, 2016 | |
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000,000 | ||||||
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | $ 50,000,000 | $ 80,000,000 | |||||
Financial Services Operations [Member] | VFN Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 375,000,000 | $ 500,000,000 | |||||
Revolving Credit Facility [Member] | Financial Services Operations [Member] | Bank Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000,000 | $ 400,000,000 | |||||
Line of Credit Facility, Fair Value of Amount Outstanding | 300,000,000 | 300,000,000 | |||||
Line of Credit Facility, Accordion Feature, Higher Borrowing Capacity Option | $ 700,000,000 | ||||||
Term Loan [Member] | Financial Services Operations [Member] | Bank Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 221,000,000 | $ 221,000,000 | |||||
Scenario, Forecast [Member] | Revolving Credit Facility [Member] | Financial Services Operations [Member] | Bank Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 275,000,000 | ||||||
Scenario, Forecast [Member] | Term Loan [Member] | Financial Services Operations [Member] | Bank Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 82,000,000 | ||||||
Installment Payments Set Two [Member] | Term Loan [Member] | Financial Services Operations [Member] | Bank Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Periodic Payment, Principal | $ 9,000,000 | ||||||
Installment Payments Set Two [Member] | Scenario, Forecast [Member] | Term Loan [Member] | Financial Services Operations [Member] | Bank Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Periodic Payment, Principal | $ 2,000,000 |
Postretirement Benefits - Narra
Postretirement Benefits - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | $ 40 | |||
Defined Contribution Plan, Cost Recognized | $ 7 | $ 7 | 22 | $ 24 |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions | 20 | $ 11 | 60 | $ 73 |
Effect of change in estimate approach on interest cost | 9 | 27 | ||
Other Postretirement Benefit Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Effect of change in estimate approach on interest cost | $ 4 | $ 12 |
Postretirement Benefits - Sched
Postretirement Benefits - Schedule of Net Benefit (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2 | $ 3 | $ 7 | $ 9 |
Interest on obligations | 29 | 35 | 88 | 106 |
Amortization of cumulative loss | 26 | 25 | 78 | 74 |
Amortization of cumulative loss | 0 | 0 | 0 | 0 |
Contractual termination benefits | 1 | 0 | 3 | (1) |
Premiums on pension insurance | 4 | 3 | 12 | 8 |
Expected return on assets | (41) | (48) | (125) | (145) |
Net postretirement benefits expense | 21 | 18 | 63 | 51 |
Health and Life Insurance Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 2 | 4 | 5 |
Interest on obligations | 14 | 17 | 44 | 53 |
Amortization of cumulative loss | 8 | 10 | 24 | 29 |
Amortization of cumulative loss | 0 | (1) | (1) | (3) |
Contractual termination benefits | 4 | 0 | 4 | (1) |
Premiums on pension insurance | 0 | 0 | 0 | 0 |
Expected return on assets | (6) | (7) | (19) | (22) |
Net postretirement benefits expense | $ 21 | $ 21 | $ 56 | $ 61 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2016 | Jan. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||||
Income Taxes Percent Likelihood Of Being Realized Upon Settlement | 50.00% | 50.00% | |||
Income Tax Expense (Benefit) | $ 14 | $ 12 | $ 25 | $ 37 | |
Unrecognized Tax Benefits | 42 | 42 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 1 | $ 1 | |||
Other Comprehensive Income (Loss) [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income Tax Expense (Benefit) | $ (12) | ||||
Alternative Minimum Tax [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 13 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Jul. 31, 2016 | Oct. 31, 2015 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 140 | $ 159 |
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 | 2 | 4 |
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 | 23 | 10 |
Liabilities, Fair Value Disclosure | 23 | 10 |
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 | 49 | 53 |
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 | 91 | 106 |
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 | 0 | 1 |
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 Current Assets [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 Assets [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 | 5 | 0 |
Other Current Assets [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 |
Other Current Liabilities [Member] | Foreign Exchange 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] | Foreign Exchange 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 | 1 | 2 |
Other Current Liabilities [Member] | Foreign Exchange 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 |
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 | 1 | 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 | 145 | 160 |
Guarantees, Fair Value Disclosure | 23 | 10 |
Liabilities, Fair Value Disclosure | 25 | 14 |
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 | 49 | 53 |
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 | 91 | 106 |
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 | 0 | 1 |
Estimate of Fair Value Measurement [Member] | Other Current Assets [Member] | Commodity Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 5 | 0 |
Estimate of Fair Value Measurement [Member] | Other Current Liabilities [Member] | Foreign Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 1 | 2 |
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 | $ 1 | $ 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, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
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 | $ (19) | $ (7) | $ (10) | $ (8) |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Issuances | (5) | (4) | (16) | (4) |
Settlements | 1 | 1 | 3 | 2 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset (Liability) Ending Value | (23) | (10) | (23) | (10) |
Change in unrealized gains on assets and liabilities still held | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Fin60
Fair Value Measurements - Financial Instruments Measured on Nonrecurring Basis (Details) - USD ($) $ in Millions | Jul. 31, 2016 | Oct. 31, 2015 | |
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 | $ 18 | $ 21 | |
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] | 18 | 21 |
Specific loss reserves on impaired finance receivables [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Specific loss reserve | (9) | (9) | |
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 | (9) | (9) | |
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 | $ 9 | $ 12 | |
[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, 2016 | Oct. 31, 2015 | ||
Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Retail Notes | $ 136 | $ 166 | ||
Notes Receivable | 1 | 3 | ||
Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Retail Notes | 144 | 170 | ||
Notes Receivable | 1 | 3 | ||
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 | 144 | 170 | ||
Notes Receivable | 1 | 3 | ||
Line of Credit [Member] | Manufacturing Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 1,020 | 1,023 | ||
Line of Credit [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 1,020 | 1,023 | ||
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 | 973 | 1,014 | ||
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 | 973 | 1,014 | ||
Line of Credit [Member] | Financial Services Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 874 | 1,063 | ||
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 | 874 | 1,063 | ||
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 | 860 | 1,048 | ||
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 | 860 | 1,048 | ||
Debt Of Majority Owned Dealerships [Member] | Manufacturing Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 13 | 28 | ||
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 | 13 | 28 | ||
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 | 15 | 28 | ||
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 | 15 | 28 | ||
Financing Arrangements [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 38 | 43 | ||
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 | 15 | 17 | ||
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 | 15 | 17 | ||
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 | 227 | 233 | ||
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 | 227 | 233 | ||
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 | 0 | 0 | ||
Financed lease obligations [Member] | Manufacturing Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 61 | 111 | ||
Financed lease obligations [Member] | Manufacturing Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 61 | 111 | ||
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 | 61 | 111 | ||
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 | 61 | 111 | ||
Notes Payable, Other Payables [Member] | Manufacturing Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 10 | 15 | ||
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 | 10 | 15 | ||
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 | 10 | 17 | ||
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 | 10 | 17 | ||
Secured Debt [Member] | Financial Services Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 867 | 870 | ||
Secured Debt [Member] | Financial Services Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 867 | 870 | ||
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 | 863 | 865 | ||
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 | 863 | 865 | ||
Commercial Paper [Member] | Financial Services Operations [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 93 | 86 | ||
Commercial Paper [Member] | Financial Services Operations [Member] | Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt | 93 | 86 | ||
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 | 93 | 86 | ||
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 | 93 | |||
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 | 86 | |||
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 | 100 | 81 | ||
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 | 100 | 81 | ||
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 | 100 | 80 | ||
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 | 100 | 80 | ||
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 | 1,184 | 1,182 | ||
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 | 1,184 | 1,182 | ||
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 | 893 | 998 | ||
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 | 893 | 998 | ||
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 | 189 | 186 | ||
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] | 189 | 186 | |
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] | 137 | 148 | |
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] | 137 | 148 | |
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 | 385 | 379 | ||
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] | 385 | 379 | |
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] | 258 | 289 | |
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] | $ 258 | $ 289 | |
[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, 2016 | Jul. 31, 2015 | Jan. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | Oct. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Asset impairment charges | $ 12 | $ 7 | $ 17 | $ 15 | ||
Goodwill | $ 38 | 38 | $ 38 | |||
Cash and Cash Equivalents, Maturity Term | 90 days | |||||
Marketable Securities, Maturity Term | 90 days | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 1 | 3 | $ 1 | 3 | ||
Brazilian Reporting Unit [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 24 | $ 24 | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 1 | $ 3 | ||||
North America Truck [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 11 | $ 7 |
Financial Instruments and Com63
Financial Instruments and Commodity Contracts - Narrative (Details) - USD ($) | Jul. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 |
Derivative [Line Items] | |||
Derivative, Amount of Hedged Item | $ 0 | $ 0 | |
Derivative, Collateral, Obligation to Return Cash | 1,000,000 | $ 1,000,000 | |
Exposure to Credit Risk | 5,000,000 | 1,000,000 | |
Commodity Contract [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 13,000,000 | 6,000,000 | |
Commodity Contract, Diesel Fuel [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 11,000,000 | 24,000,000 | |
ERROR in label resolution. | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 0 | 0 | |
Mexican Financial Services [Member] | Asset-backed Securities [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 128,000,000 | $ 108,000,000 |
Financial Instruments and Com64
Financial Instruments and Commodity Contracts - Derivative Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Derivative [Line Items] | ||||
Derivative Instruments,Derivative, Gain (Loss) on Derivative, Net | $ 5 | $ 7 | $ 3 | $ (2) |
Interest Rate Cap [Member] | Interest Expense [Member] | ||||
Derivative [Line Items] | ||||
Derivative Instruments,Derivative, Gain (Loss) on Derivative, Net | 0 | (1) | 0 | (1) |
Cross currency swaps | Other Income Expense Net [Member] | ||||
Derivative [Line Items] | ||||
Derivative Instruments,Derivative, Gain (Loss) on Derivative, Net | 1 | 1 | 1 | (2) |
Foreign Exchange Contract [Member] | Other Income Expense Net [Member] | ||||
Derivative [Line Items] | ||||
Derivative Instruments,Derivative, Gain (Loss) on Derivative, Net | 4 | 6 | 0 | 5 |
Commodity Contract [Member] | Cost of Sales [Member] | ||||
Derivative [Line Items] | ||||
Derivative Instruments,Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ 1 | $ 2 | $ (4) |
Financial Instruments and Com65
Financial Instruments and Commodity Contracts - Foreign Currency Contracts (Details) € in Millions, MXN in Millions, CAD in Millions | 1 Months Ended | ||||||||||||||||||||||
Nov. 30, 2015EUR (€) | Oct. 31, 2016EUR (€) | Sep. 30, 2016EUR (€) | Sep. 30, 2016CAD | Aug. 31, 2016EUR (€) | Aug. 31, 2016MXN | Aug. 31, 2016CAD | Jul. 31, 2016EUR (€) | Jul. 31, 2016MXN | Jul. 31, 2016CAD | Jun. 30, 2016EUR (€) | May 31, 2016EUR (€) | Mar. 31, 2016EUR (€) | Feb. 29, 2016EUR (€) | Jan. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Oct. 31, 2015EUR (€) | [2] | Oct. 31, 2015MXN | Oct. 31, 2015CAD | ||||
Foreign Exchange Contract [Member] | Euro Member Countries, Euro | |||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||
Derivative, Notional Amount | € 12 | [1] | € 30 | ||||||||||||||||||||
Derivative, Notional Amount Expiring Monthly | 2 | ||||||||||||||||||||||
Foreign Exchange Contract [Member] | Canada, Dollars | |||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||
Derivative, Notional Amount | CAD | CAD 30 | [3] | CAD 25 | ||||||||||||||||||||
Derivative, Notional Amount Expiring Monthly | CAD | CAD 15 | ||||||||||||||||||||||
Foreign Exchange Contract [Member] | Mexican Pesos | |||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||
Derivative, Notional Amount | MXN | MXN 759 | [4] | MXN 1,270 | ||||||||||||||||||||
Derivative, Notional Amount Expiring Monthly | MXN | MXN 380 | ||||||||||||||||||||||
Foreign Exchange Contract, Maturing November 2015 to October 2016 [Member] | Euro Member Countries, Euro | |||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||
Derivative, Notional Amount Expiring Monthly | € 3 | € 2 | € 2 | € 2 | € 2 | € 2 | € 4 | € 3 | |||||||||||||||
Derivative, Cash Received on Hedge | € 2 | ||||||||||||||||||||||
Subsequent Event [Member] | Foreign Exchange Contract [Member] | Euro Member Countries, Euro | |||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||
Derivative, Notional Amount Expiring Monthly | € 3 | ||||||||||||||||||||||
Subsequent Event [Member] | Foreign Exchange Contract [Member] | Canada, Dollars | |||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||
Derivative, Notional Amount Expiring Monthly | CAD | CAD 10 | ||||||||||||||||||||||
Subsequent Event [Member] | Foreign Exchange Contract [Member] | Mexican Pesos | |||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||
Derivative, Notional Amount Expiring Monthly | MXN | MXN 379 | ||||||||||||||||||||||
Scenario, Forecast [Member] | Foreign Exchange Contract [Member] | Euro Member Countries, Euro | |||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||
Derivative, Notional Amount Expiring Monthly | € 3 | € 4 | |||||||||||||||||||||
Scenario, Forecast [Member] | Foreign Exchange Contract [Member] | Canada, Dollars | |||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||
Derivative, Notional Amount Expiring Monthly | CAD | CAD 5 | ||||||||||||||||||||||
Scenario, Forecast [Member] | Foreign Exchange Contract, Maturing November 2015 to October 2016 [Member] | Euro Member Countries, Euro | |||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||
Derivative, Notional Amount Expiring Monthly | € 2 | € 2 | € 2 | ||||||||||||||||||||
[1] | Forward exchange contracts of €2 million matured in July 2016 but settled in August 2016, €3 million matured in August 2016, €4 million mature in September 2016, and €3 million mature in October 2016. | ||||||||||||||||||||||
[2] | (D) Forward exchange contracts of €2 million settled in November 2015, €3 million matured in November 2015, €3 million matured in December 2015, €4 million matured in January 2016, and €2 million mature each month from February 2016 through October 2016. | ||||||||||||||||||||||
[3] | (B) Forward exchange contracts of C$15 million matured in July 2016 but settled in August 2016, C$10 million matured in August 2016, and C$5 million mature in September 2016. | ||||||||||||||||||||||
[4] | (C) Forward exchange contracts of ₱380 million matured in July 2016 but settled in August 2016 and ₱379 million matured in August 2016. |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) BRL in Millions | Jun. 01, 2016USD ($)bus | Mar. 31, 2016USD ($) | Jul. 16, 2015USD ($) | Mar. 31, 2014BRL | Jul. 31, 2016USD ($)site | Jul. 31, 2016BRL | Jan. 31, 2014BRL | Jul. 31, 2010BRL | Jul. 31, 2016USD ($)dealersite | Jul. 31, 2016BRLsite | Oct. 31, 2015USD ($) | Jul. 31, 2015engine |
Loss Contingencies [Line Items] | ||||||||||||
Available stand-by letters of credit and surety bonds | $ 97,000,000 | $ 97,000,000 | ||||||||||
Purchase commitments | 16,000,000 | $ 16,000,000 | ||||||||||
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 | $ 20,000,000 | $ 20,000,000 | ||||||||||
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 | 20,000,000 | |||||||||||
Navitrucks [Member] | Alleged Unfulfilled Promises and Injury to Reputation [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Damages sought, value | $ 40,000,000 | |||||||||||
Damages from Product Defects [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Notice of Violation, number | engine | 7,749 | |||||||||||
Civil penalties sought, per violation | $ 37,500 | |||||||||||
G E Operating Agreement [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Operating Agreement Excess Loss Percentage | 10.00% | 10.00% | ||||||||||
Loss Sharing Agreement, Percentage | 9.50% | 9.50% | 9.50% | |||||||||
Off Balance Sheet Finance Receivables | $ 1,400,000,000 | $ 1,400,000,000 | $ 1,400,000,000 | |||||||||
Off Balance Sheet Finance Receivables Related Originations1 | 2,400,000,000 | 2,400,000,000 | 2,300,000,000 | |||||||||
G E Operating Agreement [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Equipment leased to others | 57,000,000 | 57,000,000 | 102,000,000 | |||||||||
Manufacturing Operations [Member] | Financed lease obligations [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Long-term Debt | 61,000,000 | 61,000,000 | 111,000,000 | |||||||||
Manufacturing Operations [Member] | G E Operating Agreement [Member] | Financed lease obligations [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Long-term Debt | 61,000,000 | 61,000,000 | $ 110,000,000 | |||||||||
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 | 40,000,000 | 40,000,000 | ||||||||||
IIAA Vs. Navitrucks [Member] | International Chamber of Commerce [Member] | Penalties and Interest [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Damages sought, value | 23,000,000 | |||||||||||
Navitrucks Vs. IIAA [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss Contingency, Estimate of Possible Loss | $ 43,000,000 | $ 43,000,000 | ||||||||||
Polar Express School Bus and Lakeview Bus Lines v. Navistar, Inc and IC Bus LLC [Member] | Pending Litigation [Member] | Damages from Product Defects [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss Contingency, Number of Buses | bus | 40 | |||||||||||
Loss Contingency, Damages Sought, Value, Compensatory Damages | $ 6,700,000 | |||||||||||
Loss Contingency, Damages Sought, Value, Punitive Damages | $ 50,000,000 | |||||||||||
SEC v. Navistar [Member] | Settled Litigation [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss Contingency, Damages Paid, Value | $ 7,500,000 | |||||||||||
Brazil, Brazil Real | International Chamber of Commerce [Member] | Penalties and Interest [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Damages sought, value | BRL | BRL 64 | |||||||||||
Brazil, Brazil Real | Navitrucks [Member] | Alleged Unfulfilled Promises and Injury to Reputation [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Damages sought, value | BRL | BRL 128 | |||||||||||
Brazil, Brazil Real | IIAA Vs. Navitrucks [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Gain Contingency, Unrecorded Amount | BRL | BRL 130 | |||||||||||
Brazil, Brazil Real | IIAA Vs. Navitrucks [Member] | International Chamber of Commerce [Member] | Penalties and Interest [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Damages sought, value | BRL | BRL 73 | |||||||||||
Brazil, Brazil Real | Navitrucks Vs. IIAA [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss Contingency, Estimate of Possible Loss | BRL | BRL 139 | |||||||||||
International Indústria de Motores da América do Sul Ltda [Member] | Other Cases Vs. International Indústria de Motores da América do Sul Ltda [Member] | Pending Litigation [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss Contingency, Number of Truck Dealers | dealer | 2 | |||||||||||
Loss Contingency, Number of Truck Fleet Owners | dealer | 2 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2016USD ($)segments | Jul. 31, 2015USD ($) | Jul. 31, 2016USD ($) | Jul. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number Of Segments | segments | 4 | |||
Intersegment sales and revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Sales and revenues, net | 2,086 | 2,538 | 6,048 | 7,652 |
North America Truck [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales and revenues | 9 | 49 | 81 | 121 |
Sales and revenues, net | 1,395 | 1,834 | 4,007 | 5,470 |
North America Parts [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales and revenues | 8 | 11 | 23 | 29 |
Sales and revenues, net | 597 | 625 | 1,814 | 1,864 |
Corporate And Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales and revenues | (55) | (95) | (212) | (263) |
Sales and revenues, net | $ (51) | $ (93) | $ (204) | $ (256) |
Segment Reporting - Summary of
Segment Reporting - Summary of Segment Assets (Details) - USD ($) $ in Millions | Jul. 31, 2016 | Oct. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Segment Assets | $ 5,719 | $ 6,692 |
North America Truck [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Assets | 1,644 | 1,876 |
North America Parts [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Assets | 608 | 641 |
Global Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Assets | 379 | 409 |
Financial Services Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Assets | 2,132 | 2,455 |
Corporate And Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Assets | $ 956 | $ 1,311 |
Segment Reporting - Summary o69
Segment Reporting - Summary of Segment Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
External sales and revenues, net | $ 2,086 | $ 2,538 | $ 6,048 | $ 7,652 |
Sales and revenues, net | 2,086 | 2,538 | 6,048 | 7,652 |
Loss from continuing operations, net of tax | (34) | (30) | (63) | (136) |
Income tax expense | (14) | (12) | (25) | (37) |
Interest expense | 84 | 75 | 246 | 227 |
Equity in income of non-consolidated affiliates | 2 | 3 | 3 | 6 |
Capital expenditures | 30 | 27 | 83 | 72 |
Intersegment sales and revenues | 0 | 0 | 0 | 0 |
Segment Profit Loss | (20) | (18) | (38) | (99) |
Depreciation, Depletion and Amortization | 53 | 68 | 164 | 221 |
North America Truck [Member] | ||||
Segment Reporting Information [Line Items] | ||||
External sales and revenues, net | 1,386 | 1,785 | 3,926 | 5,349 |
Sales and revenues, net | 1,395 | 1,834 | 4,007 | 5,470 |
Loss from continuing operations, net of tax | (54) | (36) | (128) | (105) |
Income tax expense | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Equity in income of non-consolidated affiliates | 1 | 1 | 3 | 4 |
Capital expenditures | 26 | 20 | 70 | 58 |
Intersegment sales and revenues | 9 | 49 | 81 | 121 |
Segment Profit Loss | (54) | (36) | (128) | (105) |
Depreciation, Depletion and Amortization | 29 | 40 | 92 | 139 |
Corporate And Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
External sales and revenues, net | 4 | 2 | 8 | 7 |
Sales and revenues, net | (51) | (93) | (204) | (256) |
Loss from continuing operations, net of tax | (153) | (145) | (471) | (492) |
Income tax expense | (14) | (12) | (25) | (37) |
Interest expense | 63 | 56 | 187 | 170 |
Equity in income of non-consolidated affiliates | 0 | 0 | 0 | 0 |
Capital expenditures | 3 | 5 | 8 | 7 |
Intersegment sales and revenues | (55) | (95) | (212) | (263) |
Segment Profit Loss | (139) | (133) | (446) | (455) |
Depreciation, Depletion and Amortization | 4 | 5 | 12 | 16 |
North America Parts [Member] | ||||
Segment Reporting Information [Line Items] | ||||
External sales and revenues, net | 589 | 614 | 1,791 | 1,835 |
Sales and revenues, net | 597 | 625 | 1,814 | 1,864 |
Loss from continuing operations, net of tax | 152 | 151 | 478 | 429 |
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 | 0 | 1 | 2 | 1 |
Intersegment sales and revenues | 8 | 11 | 23 | 29 |
Segment Profit Loss | 152 | 151 | 478 | 429 |
Depreciation, Depletion and Amortization | 3 | 4 | 10 | 11 |
Global Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
External sales and revenues, net | 73 | 100 | 221 | 353 |
Sales and revenues, net | 85 | 109 | 254 | 391 |
Loss from continuing operations, net of tax | (5) | (26) | (19) | (40) |
Income tax expense | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Equity in income of non-consolidated affiliates | 0 | 1 | (3) | (1) |
Capital expenditures | 0 | 1 | 2 | 4 |
Intersegment sales and revenues | 12 | 9 | 33 | 38 |
Segment Profit Loss | (5) | (26) | (19) | (40) |
Depreciation, Depletion and Amortization | 4 | 6 | 13 | 18 |
Financial Services Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
External sales and revenues, net | 34 | 37 | 102 | 108 |
Sales and revenues, net | 60 | 63 | 177 | 183 |
Loss from continuing operations, net of tax | 26 | 26 | 77 | 72 |
Income tax expense | 0 | 0 | 0 | 0 |
Interest expense | 21 | 19 | 59 | 57 |
Equity in income of non-consolidated affiliates | 0 | 0 | 0 | 0 |
Capital expenditures | 1 | 0 | 1 | 2 |
Investment Income, Interest | 43 | 46 | 127 | 135 |
Intersegment sales and revenues | 26 | 26 | 75 | 75 |
Segment Profit Loss | 26 | 26 | 77 | 72 |
Depreciation, Depletion and Amortization | $ 13 | $ 13 | $ 37 | $ 37 |
Segment Reporting - Summary o70
Segment Reporting - Summary of Segment Long Lived Assets and Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Sales and revenues, net | $ 2,086 | $ 2,538 | $ 6,048 | $ 7,652 |
Financial Services Operations [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Investment Income, Interest | 43 | 46 | 127 | 135 |
Sales and revenues, net | $ 60 | $ 63 | $ 177 | $ 183 |
Stockholders' Deficit Accumulat
Stockholders' Deficit Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Loss, Beginning Balance | $ (2,536) | $ (2,284) | $ (2,601) | $ (2,263) |
Other comprehensive loss before reclassifications | (10) | (47) | (11) | (133) |
Amounts reclassified out of accumulated other comprehensive loss | 34 | 33 | 100 | 98 |
Net current-period other comprehensive income (loss) | 24 | (14) | 89 | (35) |
Accumulated Other Comprehensive Loss, Ending Balance | (2,512) | (2,298) | (2,512) | (2,298) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||
Total before tax | 28 | 23 | 39 | 113 |
Tax expense | (14) | (12) | (25) | (37) |
Net income (loss) attributable to Navistar International Corporation | (34) | (28) | (63) | (134) |
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 | 1 | 1 |
Other comprehensive loss before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified out of accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Net current-period other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Accumulated Other Comprehensive Loss, Ending Balance | 1 | 1 | 1 | 1 |
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Loss, Beginning Balance | (270) | (213) | (287) | (127) |
Other comprehensive loss before reclassifications | (10) | (47) | 7 | (133) |
Amounts reclassified out of accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Net current-period other comprehensive income (loss) | (10) | (47) | 7 | (133) |
Accumulated Other Comprehensive Loss, Ending Balance | (280) | (260) | (280) | (260) |
Pension Benefits | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Loss, Beginning Balance | (2,267) | (2,072) | (2,315) | (2,137) |
Other comprehensive loss before reclassifications | 0 | 0 | (18) | 0 |
Amounts reclassified out of accumulated other comprehensive loss | 34 | 33 | 100 | 98 |
Net current-period other comprehensive income (loss) | 34 | 33 | 82 | 98 |
Accumulated Other Comprehensive Loss, Ending Balance | (2,233) | (2,039) | (2,233) | (2,039) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension Benefits | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||||
Amortization of prior service costs (benefit) | 0 | (1) | (1) | (3) |
Amortization of actuarial loss | 34 | 34 | 101 | 102 |
Total before tax | 34 | 33 | 100 | 99 |
Tax expense | 0 | 0 | 0 | (1) |
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | $ 34 | $ 33 | $ 100 | $ 98 |
Earnings (Loss) Per Share Att72
Earnings (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, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Earnings Per Share [Abstract] | ||||
Loss from continuing operations, net of tax | $ (34) | $ (30) | $ (63) | $ (136) |
Income from discontinued operations, net of tax | 0 | 2 | 0 | 2 |
Net loss attributable to Navistar International Corporation | $ (34) | $ (28) | $ (63) | $ (134) |
Basic (in shares) | 81.7 | 81.6 | 81.7 | 81.5 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 | 0 | 0 |
Diluted (in shares) | 81.7 | 81.6 | 81.7 | 81.5 |
Basic: Loss from Continuing Operations (in dollars per share) | $ (0.42) | $ (0.37) | $ (0.77) | $ (1.67) |
Basic: Income (Loss) from Discontinued Operations (in dollars per share) | 0 | 0.03 | 0 | 0.03 |
Basic (in dollars per share) | (0.42) | (0.34) | (0.77) | (1.64) |
Diluted: Loss from Continuing Operations (in dollars per share) | (0.42) | (0.37) | (0.77) | (1.67) |
Diluted: Income (Loss) from Discontinued Operations (in dollars per share) | 0 | 0.03 | 0 | 0.03 |
Diluted (in dollars per share) | $ (0.42) | $ (0.34) | $ (0.77) | $ (1.64) |
Earnings (Loss) Per Share Att73
Earnings (Loss) Per Share Attributable to Navistar International Corporation - Narrative (Details) $ / shares in Units, shares in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2016USD ($)$ / sharesshares | Jul. 31, 2015shares | Jul. 31, 2016$ / sharesshares | Jul. 31, 2015shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 15.2 | 15 | 15 | 16 |
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 | 3.4 | 3.4 | 3.4 | 3.4 |
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 | 7.6 | 7.6 | 7.6 | 7.6 |
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 Guara74
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Sales and revenues, net | $ 2,086 | $ 2,538 | $ 6,048 | $ 7,652 |
Costs of products sold | 1,757 | 2,172 | 5,068 | 6,577 |
Restructuring charges | 5 | 13 | 11 | 22 |
Asset impairment charges | 12 | 7 | 17 | 15 |
All other operating expenses (income) | 328 | 360 | 969 | 1,120 |
Total costs and expenses | 2,102 | 2,552 | 6,065 | 7,734 |
Equity in income of non-consolidated affiliates | 2 | 3 | 3 | 6 |
Income (loss) before income taxes | (14) | (11) | (14) | (76) |
Income tax expense | (14) | (12) | (25) | (37) |
Earnings (loss) from continuing operations | (28) | (23) | (39) | (113) |
Income from discontinued operations, net of tax | 0 | 2 | 0 | 2 |
Net income (loss) | (28) | (21) | (39) | (111) |
Less: Net income attributable to non-controlling interests | 6 | 7 | 24 | 23 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (10) | (42) | 26 | (169) |
Net income (loss) attributable to Navistar International Corporation | (34) | (28) | (63) | (134) |
Parent Company [Member] | ||||
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) | 18 | 12 | 75 | 62 |
Total costs and expenses | 18 | 12 | 75 | 62 |
Equity in income of non-consolidated affiliates | (16) | (16) | 12 | (72) |
Income (loss) before income taxes | (34) | (28) | (63) | (134) |
Income tax expense | 0 | 0 | 0 | 0 |
Earnings (loss) from continuing operations | (34) | (28) | (63) | (134) |
Income from discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net income (loss) | (34) | (28) | (63) | (134) |
Less: Net income attributable to non-controlling interests | 0 | 0 | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (10) | (42) | 26 | (169) |
Net income (loss) attributable to Navistar International Corporation | (34) | (28) | (63) | (134) |
Guarantor Subsidiaries [Member] | ||||
Sales and revenues, net | 1,411 | 1,892 | 4,455 | 5,511 |
Costs of products sold | 1,276 | 1,752 | 4,028 | 5,025 |
Restructuring charges | (1) | 5 | 3 | 8 |
Asset impairment charges | 0 | 0 | 2 | 8 |
All other operating expenses (income) | 197 | 262 | 643 | 808 |
Total costs and expenses | 1,472 | 2,019 | 4,676 | 5,849 |
Equity in income of non-consolidated affiliates | 63 | 76 | 118 | 155 |
Income (loss) before income taxes | 2 | (51) | (103) | (183) |
Income tax expense | (1) | (1) | 10 | (3) |
Earnings (loss) from continuing operations | 1 | (52) | (93) | (186) |
Income from discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net income (loss) | 1 | (52) | (93) | (186) |
Less: Net income attributable to non-controlling interests | 0 | 0 | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 34 | (44) | 3 | (116) |
Net income (loss) attributable to Navistar International Corporation | 1 | (52) | (93) | (186) |
Non-Guarantor Subsidiaries [Member] | ||||
Sales and revenues, net | 1,432 | 1,875 | 4,055 | 5,586 |
Costs of products sold | 1,216 | 1,627 | 3,447 | 4,932 |
Restructuring charges | 6 | 8 | 8 | 14 |
Asset impairment charges | 12 | 7 | 15 | 7 |
All other operating expenses (income) | 131 | 102 | 305 | 306 |
Total costs and expenses | 1,365 | 1,744 | 3,775 | 5,259 |
Equity in income of non-consolidated affiliates | 1 | 2 | 0 | 3 |
Income (loss) before income taxes | 68 | 133 | 280 | 330 |
Income tax expense | (13) | (11) | (35) | (34) |
Earnings (loss) from continuing operations | 55 | 122 | 245 | 296 |
Income from discontinued operations, net of tax | 0 | 2 | 0 | 2 |
Net income (loss) | 55 | 124 | 245 | 298 |
Less: Net income attributable to non-controlling interests | 6 | 7 | 24 | 23 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 40 | 95 | 214 | 170 |
Net income (loss) attributable to Navistar International Corporation | 49 | 117 | 221 | 275 |
Consolidation, Eliminations [Member] | ||||
Sales and revenues, net | (757) | (1,229) | (2,462) | (3,445) |
Costs of products sold | (735) | (1,207) | (2,407) | (3,380) |
Restructuring charges | 0 | 0 | 0 | 0 |
Asset impairment charges | 0 | 0 | 0 | 0 |
All other operating expenses (income) | (18) | (16) | (54) | (56) |
Total costs and expenses | (753) | (1,223) | (2,461) | (3,436) |
Equity in income of non-consolidated affiliates | (46) | (59) | (127) | (80) |
Income (loss) before income taxes | (50) | (65) | (128) | (89) |
Income tax expense | 0 | 0 | 0 | 0 |
Earnings (loss) from continuing operations | (50) | (65) | (128) | (89) |
Income from discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net income (loss) | (50) | (65) | (128) | (89) |
Less: Net income attributable to non-controlling interests | 0 | 0 | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (74) | (51) | (217) | (54) |
Net income (loss) attributable to Navistar International Corporation | $ (50) | $ (65) | $ (128) | $ (89) |
Condensed Consolidating Guara75
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Statement of Comprehsive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | |
Net income (loss) | $ (28) | $ (21) | $ (39) | $ (111) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Foreign currency translation adjustment | (10) | (47) | 7 | (133) |
Defined benefit plans (net of tax of $0, for all entities) | 34 | 33 | 82 | 98 |
Total other comprehensive income (loss) | 24 | (14) | 89 | (35) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (4) | (35) | 50 | (146) |
Less: Net income attributable to non-controlling interests | 6 | 7 | 24 | 23 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (10) | (42) | 26 | (169) |
Parent Company [Member] | ||||
Net income (loss) | (34) | (28) | (63) | (134) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Foreign currency translation adjustment | (10) | (47) | 7 | (133) |
Defined benefit plans (net of tax of $0, for all entities) | 34 | 33 | 82 | 98 |
Total other comprehensive income (loss) | 24 | (14) | 89 | (35) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (10) | (42) | 26 | (169) |
Less: Net income attributable to non-controlling interests | 0 | 0 | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (10) | (42) | 26 | (169) |
Guarantor Subsidiaries [Member] | ||||
Net income (loss) | 1 | (52) | (93) | (186) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Defined benefit plans (net of tax of $0, for all entities) | 33 | 8 | 96 | 70 |
Total other comprehensive income (loss) | 33 | 8 | 96 | 70 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 34 | (44) | 3 | (116) |
Less: Net income attributable to non-controlling interests | 0 | 0 | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 34 | (44) | 3 | (116) |
Non-Guarantor Subsidiaries [Member] | ||||
Net income (loss) | 55 | 124 | 245 | 298 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Foreign currency translation adjustment | (10) | (47) | 7 | (133) |
Defined benefit plans (net of tax of $0, for all entities) | 1 | 25 | (14) | 28 |
Total other comprehensive income (loss) | (9) | (22) | (7) | (105) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 46 | 102 | 238 | 193 |
Less: Net income attributable to non-controlling interests | 6 | 7 | 24 | 23 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 40 | 95 | 214 | 170 |
Consolidation, Eliminations [Member] | ||||
Net income (loss) | (50) | (65) | (128) | (89) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Foreign currency translation adjustment | 10 | 47 | (7) | 133 |
Defined benefit plans (net of tax of $0, for all entities) | (34) | (33) | (82) | (98) |
Total other comprehensive income (loss) | (24) | 14 | (89) | 35 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (74) | (51) | (217) | (54) |
Less: Net income attributable to non-controlling interests | 0 | 0 | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ (74) | $ (51) | $ (217) | $ (54) |
Condensed Consolidating Guara76
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Balance Sheet (Details) - USD ($) $ in Millions | Jul. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Oct. 31, 2014 |
Cash and cash equivalents | $ 547 | $ 912 | $ 547 | $ 497 |
Marketable securities | 140 | 159 | ||
Restricted cash | 181 | 121 | ||
Finance and other receivables, net | 1,930 | 2,437 | ||
Inventories, net | 1,084 | 1,135 | ||
Investments in non-consolidated affiliates | 60 | 66 | ||
Property and equipment, net | 1,257 | 1,345 | ||
Goodwill | 38 | 38 | ||
Deferred taxes, net | 153 | 164 | ||
Other | 329 | 315 | ||
Total assets | 5,719 | 6,692 | ||
Debt | 5,065 | 5,298 | ||
Postretirement benefits liabilities | 2,998 | 3,088 | ||
Amounts due to (from) affiliates | 0 | 0 | ||
Other liabilities | 2,790 | 3,466 | ||
Total liabilities | 10,853 | 11,852 | ||
Stockholders’ equity attributable to non-controlling interests | 3 | 7 | ||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | (5,137) | (5,167) | ||
Total liabilities and stockholders’ deficit | 5,719 | 6,692 | ||
Parent Company [Member] | ||||
Cash and cash equivalents | 197 | 456 | ||
Marketable securities | 0 | 112 | ||
Restricted cash | 16 | 16 | ||
Finance and other receivables, net | 3 | 1 | ||
Inventories, net | 0 | 0 | ||
Investments in non-consolidated affiliates | (7,577) | (7,679) | ||
Property and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Deferred taxes, net | 0 | 7 | ||
Other | 28 | 33 | ||
Total assets | (7,333) | (7,054) | ||
Debt | 1,983 | 1,971 | ||
Postretirement benefits liabilities | 0 | 0 | ||
Amounts due to (from) affiliates | (7,986) | (7,574) | ||
Other liabilities | 3,807 | 3,716 | ||
Total liabilities | (2,196) | (1,887) | ||
Stockholders’ equity attributable to non-controlling interests | 0 | 0 | ||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | (5,137) | (5,167) | ||
Total liabilities and stockholders’ deficit | (7,333) | (7,054) | ||
Guarantor Subsidiaries [Member] | ||||
Cash and cash equivalents | 85 | 81 | ||
Marketable securities | 0 | 0 | ||
Restricted cash | 3 | 7 | ||
Finance and other receivables, net | 87 | 99 | ||
Inventories, net | 756 | 809 | ||
Investments in non-consolidated affiliates | 6,278 | 6,204 | ||
Property and equipment, net | 682 | 737 | ||
Goodwill | 0 | 0 | ||
Deferred taxes, net | 15 | 20 | ||
Other | 124 | 128 | ||
Total assets | 8,030 | 8,085 | ||
Debt | 1,123 | 1,180 | ||
Postretirement benefits liabilities | 2,797 | 2,909 | ||
Amounts due to (from) affiliates | 10,722 | 10,280 | ||
Other liabilities | (119) | 207 | ||
Total liabilities | 14,523 | 14,576 | ||
Stockholders’ equity attributable to non-controlling interests | 0 | 0 | ||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | (6,493) | (6,491) | ||
Total liabilities and stockholders’ deficit | 8,030 | 8,085 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Cash and cash equivalents | 265 | 375 | ||
Marketable securities | 140 | 47 | ||
Restricted cash | 162 | 98 | ||
Finance and other receivables, net | 1,949 | 2,440 | ||
Inventories, net | 341 | 342 | ||
Investments in non-consolidated affiliates | 56 | 64 | ||
Property and equipment, net | 581 | 616 | ||
Goodwill | 38 | 38 | ||
Deferred taxes, net | 138 | 137 | ||
Other | 178 | 155 | ||
Total assets | 3,848 | 4,312 | ||
Debt | 1,961 | 2,151 | ||
Postretirement benefits liabilities | 201 | 179 | ||
Amounts due to (from) affiliates | (2,905) | (2,879) | ||
Other liabilities | (831) | (388) | ||
Total liabilities | (1,574) | (937) | ||
Stockholders’ equity attributable to non-controlling interests | 3 | 7 | ||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | 5,419 | 5,242 | ||
Total liabilities and stockholders’ deficit | 3,848 | 4,312 | ||
Consolidation, Eliminations [Member] | ||||
Cash and cash equivalents | 0 | 0 | ||
Marketable securities | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Finance and other receivables, net | (109) | (103) | ||
Inventories, net | (13) | (16) | ||
Investments in non-consolidated affiliates | 1,303 | 1,477 | ||
Property and equipment, net | (6) | (8) | ||
Goodwill | 0 | 0 | ||
Deferred taxes, net | 0 | 0 | ||
Other | (1) | (1) | ||
Total assets | 1,174 | 1,349 | ||
Debt | (2) | (4) | ||
Postretirement benefits liabilities | 0 | 0 | ||
Amounts due to (from) affiliates | 169 | 173 | ||
Other liabilities | (67) | (69) | ||
Total liabilities | 100 | 100 | ||
Stockholders’ equity attributable to non-controlling interests | 0 | 0 | ||
Stockholders’ equity (deficit) attributable to Navistar International Corporation | 1,074 | 1,249 | ||
Total liabilities and stockholders’ deficit | $ 1,174 | $ 1,349 | ||
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 Guara77
Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Statement of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Net cash provided by (used in) operations | $ (14) | $ (14) |
Net change in restricted cash and cash equivalents | (64) | (192) |
Net sales (purchases) of marketable securities | 19 | 312 |
Capital expenditures and purchase of equipment leased to others | (177) | (130) |
Other investing activities | 55 | 15 |
Net cash provided by (used in) investing activities | (167) | 5 |
Net borrowings (repayments) of debt | (207) | 113 |
Other financing activities | (10) | (27) |
Net cash provided by (used in) financing activities | (217) | 86 |
Effect of exchange rate changes on cash and cash equivalents | 33 | (27) |
Increase (decrease) in cash and cash equivalents | (365) | 50 |
Cash and cash equivalents at beginning of the period | 912 | 497 |
Cash and cash equivalents at end of the period | 547 | 547 |
Parent Company [Member] | ||
Net cash provided by (used in) operations | (372) | (106) |
Net change in restricted cash and cash equivalents | 0 | 1 |
Net sales (purchases) of marketable securities | 113 | 230 |
Capital expenditures and purchase of equipment leased to others | 0 | 0 |
Other investing activities | 0 | 0 |
Net cash provided by (used in) investing activities | 113 | 231 |
Net borrowings (repayments) of debt | 0 | 0 |
Other financing activities | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Increase (decrease) in cash and cash equivalents | (259) | 125 |
Cash and cash equivalents at beginning of the period | 456 | 101 |
Cash and cash equivalents at end of the period | 197 | 226 |
Guarantor Subsidiaries [Member] | ||
Net cash provided by (used in) operations | (225) | 282 |
Net change in restricted cash and cash equivalents | 4 | 1 |
Net sales (purchases) of marketable securities | 0 | 0 |
Capital expenditures and purchase of equipment leased to others | (56) | (52) |
Other investing activities | 0 | 3 |
Net cash provided by (used in) investing activities | (52) | (48) |
Net borrowings (repayments) of debt | 263 | (189) |
Other financing activities | 18 | (54) |
Net cash provided by (used in) financing activities | 281 | (243) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 4 | (9) |
Cash and cash equivalents at beginning of the period | 81 | 53 |
Cash and cash equivalents at end of the period | 85 | 44 |
Non-Guarantor Subsidiaries [Member] | ||
Net cash provided by (used in) operations | 344 | 62 |
Net change in restricted cash and cash equivalents | (68) | (194) |
Net sales (purchases) of marketable securities | (94) | 82 |
Capital expenditures and purchase of equipment leased to others | (121) | (78) |
Other investing activities | 55 | 12 |
Net cash provided by (used in) investing activities | (228) | (178) |
Net borrowings (repayments) of debt | (151) | 176 |
Other financing activities | (108) | (99) |
Net cash provided by (used in) financing activities | (259) | 77 |
Effect of exchange rate changes on cash and cash equivalents | 33 | (27) |
Increase (decrease) in cash and cash equivalents | (110) | (66) |
Cash and cash equivalents at beginning of the period | 375 | 343 |
Cash and cash equivalents at end of the period | 265 | 277 |
Consolidation, Eliminations [Member] | ||
Net cash provided by (used in) operations | 239 | (252) |
Net change in restricted cash and cash equivalents | 0 | 0 |
Net sales (purchases) 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 (used in) investing activities | 0 | 0 |
Net borrowings (repayments) of debt | (319) | 126 |
Other financing activities | 80 | 126 |
Net cash provided by (used in) financing activities | (239) | 252 |
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 end of the period | $ 0 | $ 0 |
Subsequent Event (Details)
Subsequent Event (Details) - Volkswagen Truck and Bus GmbH [Member] - Subsequent Event [Member] $ / shares in Units, shares in Millions, $ in Millions | Sep. 05, 2016USD ($)$ / sharesshares |
Subsequent Event [Line Items] | |
Percentage of equity sold to Acquirer | 19.90% |
Pro forma percentage of equity sold to Acquirer | 16.60% |
Share price (in usd per share) | $ / shares | $ 15.76 |
Shares sold (in shares) | shares | 16.2 |
Value of sale | $ | $ 256 |
Maximum [Member] | |
Subsequent Event [Line Items] | |
Percentage of equity sold to Acquirer | 20.00% |